NATIONAL CITY CORPORATION Underwriting Agreement
Exhibit
1.1
NATIONAL CITY CORPORATION
4.0% Convertible Senior Notes due 2011
January 23, 2008
Xxxxxxx, Xxxxx & Co.
00 Xxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000.
00 Xxxxx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000.
Ladies and Gentlemen:
National City Corporation, a Delaware corporation (the “Company”), proposes, subject to the
terms and conditions stated herein, to issue and sell to you, as the underwriter (the
“Underwriter”) an aggregate of $1,250,000,000 principal amount of its 4.0 % Convertible Senior
Notes due 2011 (the “Firm Securities”), convertible into shares of common stock, par value $4.00
per share (the “Stock”) of the Company and, at the election of the Underwriter, up to an aggregate
of $187,500,000 additional principal amount of 4.0 % Convertible Senior Notes (the “Optional
Securities”) (the Firm Securities and the Optional Securities that the Underwriter elects to
purchase pursuant to Section 2 being collectively called the “Securities”) solely to cover
over-allotments, if any, to be issued pursuant to the Senior Indenture, dated as of March 17, 2004,
between the Company and The Bank of New York Trust Company, N.A., as the successor to The Bank of
New York Trust Company (the “Trustee”), as amended and supplemented by a supplemental indenture
between the Company and the Trustee, dated January 29, 2008 (together, the “Indenture”).
Capitalized terms used herein and not otherwise defined but that are defined in the Pricing
Prospectus (as defined in Section 1(a)), have the meanings specified in the Pricing Prospectus.
1. Representations and Warranties. The Company represents and warrants to, and agrees
with, the Underwriter as follows:
(a) An “automatic shelf registration statement” as defined under Rule 405 under the
Securities Act of 1933, as amended (the “Act”), on Form S-3 (File No. 333-148769) in respect
of the Firm Securities and the Optional Securities and shares of Stock issuable upon
conversion thereof has been filed with the Securities and Exchange Commission (the
“Commission”) not earlier than three years prior to the date hereof; pursuant to the Act,
such registration statement, and any post-effective amendment thereto, became effective on
filing; no stop order suspending the effectiveness of such registration statement or any
part thereof has been issued, no proceeding for that purpose has been initiated or, to the
Company’s knowledge,
threatened by the Commission and no notice of objection of the Commission to the use of such registration statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act has been received
by the Company (the base prospectus filed as part of such registration statement, in the
form in which it has most recently been filed with the Commission on or prior to the date of
this Agreement, is hereinafter called the “Basic Prospectus”; any preliminary prospectus
(including any preliminary prospectus supplement) relating to the Securities filed with the
Commission pursuant to Rule 424(b) under the Act is hereinafter called a “Preliminary
Prospectus”; the various parts of such registration statement, including all exhibits
thereto but excluding the Trustee’s Statement of Eligibility on Form T-1 (the “Form T-1”),
and including any prospectus supplement relating to the Securities that is filed with the
Commission and deemed by virtue of Rule 430B to be part of such registration statement, each
as amended at the time such part of the registration statement became effective, are
hereinafter collectively called the “Registration Statement”; the Basic Prospectus, as
amended and supplemented immediately prior to the Applicable Time (as defined in Section
1(c)), is hereinafter called the “Pricing Prospectus”; the form of the final prospectus
relating to the Securities filed with the Commission pursuant to Rule 424(b) under the Act
in accordance with Section 5(A)(a) is hereinafter called the “Prospectus”; any reference
herein to the Basic Prospectus, the Pricing Prospectus, any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include the documents incorporated by reference
therein pursuant to Item 12 of Form S-3 under the Act, as of the date of such prospectus;
any reference to any amendment or supplement to the Basic Prospectus, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include any post-effective
amendment to the Registration Statement, any prospectus supplement relating to the
Securities filed with the Commission pursuant to Rule 424(b) under the Act and any documents
filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
incorporated therein, in each case after the date of the Basic Prospectus, such Preliminary
Prospectus, or the Prospectus, as the case may be; any reference to any amendment to the
Registration Statement shall be deemed to refer to and include any annual report of the
Company filed pursuant to Section 13(a) or 15(d) of the Exchange Act after the effective
date of the Registration Statement that is incorporated by reference in the Registration
Statement; and any “issuer free writing prospectus” as defined in Rule 433 under the Act
relating to the Securities is hereinafter called an “Issuer Free Writing Prospectus”).
(b) No order preventing or suspending the use of any Preliminary Prospectus or any
Issuer Free Writing Prospectus has been issued by the Commission, and each Preliminary
Prospectus, at the time of filing thereof, conformed in all material respects to the
requirements of the Act and the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”), and the rules and regulations of the Commission thereunder, and did not
contain an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that this
representation and warranty shall not apply to any statements or omissions made in reliance
upon and in conformity with information furnished in writing to the Company by the
Underwriter for use therein.
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(c) For the purposes of this Agreement, the “Applicable Time” is 4:40 P.M. (New York
City time) on the date of this Agreement; the Pricing Prospectus as supplemented by the
final term sheet prepared and filed pursuant to Section 5(A)(a), taken together
(collectively, the “Pricing Disclosure Package”) as of the Applicable Time, did not include
any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under which they
were made, not misleading; and each Issuer Free Writing Prospectus listed on Schedule I(a)
does not conflict with the information contained in the Registration Statement, the Pricing
Prospectus or the Prospectus and each such Issuer Free Writing Prospectus, as supplemented
by and taken together with the Pricing Disclosure Package as of the Applicable Time, did not
include any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided, however, that this representation and warranty shall
not apply to statements or omissions made in an Issuer Free Writing Prospectus in reliance
upon and in conformity with information furnished in writing to the Company by the
Underwriter for use therein.
(d) The documents incorporated by reference in the Pricing Prospectus and the
Prospectus, when they became effective or were filed with the Commission, as the case may
be, conformed in all material respects to the requirements of the Act or the Exchange Act,
as applicable, and the rules and regulations of the Commission thereunder, and none of such
documents contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein not
misleading; any further documents so filed and incorporated by reference in the Prospectus
or any further amendment or supplement thereto, when such documents become effective or are
filed with the Commission, as the case may be, will conform in all material respects to the
requirements of the Act or the Exchange Act, as applicable, and the rules and regulations of
the Commission thereunder and will not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance upon and in conformity with
information furnished in writing to the Company by the Underwriter for use therein; and no
such documents were filed with the Commission since the Commission’s close of business on
the business day immediately prior to the date of this Agreement and prior to the execution
of this Agreement, except as set forth on Schedule I(b).
(e) The Registration Statement conforms, and the Prospectus and any further amendments
or supplements to the Registration Statement and the Prospectus will conform, in all
material respects to the requirements of the Act and the Trust Indenture Act and the rules
and regulations of the Commission thereunder and do not and will not, as of the applicable
effective date as to each part of the Registration Statement and as of the applicable filing
date as to the Prospectus and any amendment or supplement thereto, contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; provided, however, that this
representation and warranty shall not apply to any statements or
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omissions made in reliance upon and in conformity with information furnished in writing
to the Company by the Underwriter for use therein.
(f) Neither the Company nor any of its “significant subsidiaries” (as such term is used
in Rule 1-02(w) of Regulation S-X under the Securities Act; and together with National City
Bank, each a “Significant Subsidiary” and collectively, the “Significant Subsidiaries”) has
sustained since the date of the latest audited financial statements included or incorporated
by reference in the Pricing Prospectus any material loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by insurance, or from
any labor dispute or court or governmental action, order or decree, other than as set forth
or contemplated in the Pricing Prospectus; and, since the respective dates as of which
information is given in the Registration Statement and the Pricing Prospectus, there has not
been any change in the capital stock of the Company or any of its Significant Subsidiaries
(other than (i) the repurchases of common stock of the Company in an aggregate amount that
is less than 1% of the number of outstanding shares of common stock on the date hereof and
(ii) issuances or other transfers of capital stock in the ordinary course of business
pursuant to the Company’s employee benefit plans), any increase in the long-term debt of the
Company and its subsidiaries, or any material adverse change, or any development that is
reasonably likely to involve a prospective material adverse change, in the condition,
financial or otherwise, or in the earnings, business affairs or business prospects of the
Company and the consolidated subsidiaries of the Company considered as one enterprise,
whether or not arising in the ordinary course of business, other than as set forth or
contemplated in the Pricing Prospectus.
(g) The Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Delaware, is duly registered as a bank holding
company under the Bank Holding Company Act of 1956, as amended, with corporate power and
authority to own, lease and operate its properties and to conduct its business as described
in the Pricing Prospectus, and has been duly qualified as a foreign corporation to transact
business and is in good standing in each other jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the conduct of
business, except where the failure to so qualify or to be in good standing would not,
individually or in the aggregate, have a Material Adverse Effect.
(h) Each Significant Subsidiary has been duly organized and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its incorporation, and
has corporate power and authority to own, lease and operate its properties and to conduct
its business as described in the Pricing Prospectus and is duly qualified as a foreign
corporation to transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure so to qualify or to be in good standing would
not have a Material Adverse Effect; except as otherwise disclosed in the Registration
Statement, all of the issued and outstanding capital stock of each such Significant
Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable
(subject to the provisions of Section 55 of Title 12 of the United
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States Code in the case of Significant Subsidiaries that are national banking
associations or similar provisions applicable to other depository institution subsidiaries
or the Company under the laws of the respective jurisdictions in which they are organized)
and, except for any director’s qualifying shares, is owned by the Company, directly or
through subsidiaries, free and clear of any security interest, mortgage, pledge, lien,
encumbrance, claim or equity; none of the outstanding shares of capital stock of any
Significant Subsidiary was issued in violation of the preemptive or similar rights of any
securityholder of such Significant Subsidiary; and 100% of its capital stock, other than any
director’s qualifying shares, is owned by the Company, directly or through subsidiaries,
free and clear of any mortgage, pledge, lien, encumbrance, claim or equity.
(i) The authorized, issued and outstanding capital stock of the Company is as set forth
in the Pricing Prospectus (except for subsequent issuances, if any pursuant to reservations,
agreements or employee benefit, employee stock purchase or dividend reinvestment plans
referred to in the Pricing Prospectus or pursuant to the exercise of convertible securities
or options referred to in the Pricing Prospectus, as described in the Pricing Prospectus),
and all of the issued and outstanding shares of capital stock of the Company have been duly
authorized and validly issued and are fully paid and non-assessable; the shares of Stock
initially issuable upon conversion of the Securities have been duly and validly authorized
and reserved for issuance and, when issued and delivered in accordance with the provisions
of the Securities and the Indenture, will be duly and validly issued, fully paid and
non-assessable and will conform to the description of the Stock contained in the Pricing
Disclosure Package and the Prospectus; all of the issued and outstanding shares of capital
stock of each Significant Subsidiary of the Company have been duly authorized and validly
issued, are fully paid and non-assessable and (except for directors’ qualifying shares) are
owned directly or indirectly by the Company, free and clear of all liens, encumbrances,
equities or claims; and none of the outstanding shares of capital stock of the Company was
issued in violation of the preemptive or other similar rights of any securityholder of the
Company.
(j) The Firm Securities and the Optional Securities have been duly authorized, and,
when issued, delivered and paid for at each Time of Delivery as contemplated by the Pricing
Prospectus, will have been duly executed, authenticated, issued and delivered and will
constitute valid and legally binding obligations of the Company entitled to the benefits
provided by the Indenture; the Indenture has been duly authorized and, at each Time of
Delivery, the Indenture will be duly qualified under the Trust Indenture Act and will
constitute a valid and legally binding instrument, enforceable in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws of
general applicability relating to or affecting creditors’ rights and to general equity
principles; and the Securities and the Indenture will conform to the descriptions thereof in
the Pricing Disclosure Package and the Prospectus.
(k) This Agreement has been duly authorized, executed and delivered by the Company.
(l) The issue and sale of the Securities and the compliance by the Company with all of
the provisions of the Securities, the Indenture and this Agreement and the
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consummation of the transactions herein and therein contemplated by the Company will
not, whether with or without the giving of notice or lapse of or both, conflict with or
constitute a breach or violation of, or default or Repayment Event under or result in the
creation or imposition of any lien, charge or encumbrance upon any property or assets of the
Company or any subsidiary of the Company pursuant to any material contract, indenture,
mortgage, deed of trust, loan or credit agreement, note, lease or any other agreement or
instrument to which the Company or any subsidiary of the Company is a party or by which it
or any of the them may be bound, or to which any of the property or assets of the Company or
any such subsidiary is subject, nor will such action result in any violation of the
provisions of the Amended and Restated Certificate of Incorporation, as amended, or First
Restatement of By-laws of the Company or other organizational documents of any subsidiary,
or any applicable law, statute, rule, regulation, judgment, order, writ or decree of any
government, government instrumentality or court, domestic or foreign, having jurisdiction
over the Company or any subsidiary of the Company or any of their properties, assets or
operations; and no filing with, or authorization, approval, consent, license, order,
registration, qualification or decree of, any court or governmental authority or agency,
domestic or foreign (other than under the Securities Act, which have been obtained, or as
may be required under the securities or Blue Sky laws of the various states) is necessary or
required in connection with the issue and sale of the Securities or the consummation by the
Company of the transactions contemplated by this Agreement or the Indenture, except such as
have been obtained under the Act and such consents, approvals, authorizations, registrations
or qualifications as may be required under state securities or Blue Sky laws in connection
with the purchase and distribution of the Securities by the Underwriter. As used herein, a
“Repayment Event” means any event or condition that gives the holder of any note, debenture
or other evidence of indebtedness (or any person acting on such holder’s behalf) the right
to require the repurchase, redemption or repayment of all or a portion of such indebtedness
by the Company or any subsidiary of the Company.
(m) Neither the Company nor any of its Significant Subsidiaries is in violation of its
charter, by-laws or other organizational documents, as applicable, or in default in the
performance or observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, deed of trust, loan or credit agreement,
note, lease or other agreement or instrument to which it is a party or by which it or any of
its properties or assets may be bound or to which any of the property or assets of the
Company or any subsidiary of the Company is subject.
(n) The statements set forth in the Pricing Prospectus and the Prospectus under the
captions “Description of the Notes,” “Description of the Common Stock,” insofar as they are
descriptions of contracts, agreements or other legal documents or describe Federal statutes,
rules and regulations, and under the caption “Underwriting,” insofar as they purport to
describe the provisions of the documents referred to therein, constitute an accurate summary
of the matters set forth therein; the statements set forth in the Pricing Prospectus and the
Prospectus under the caption “Certain U.S. Federal Income Tax Consequences” and “ERISA
Considerations,” insofar as they purport to constitute a summary of matters of U.S. federal
income tax law or the U.S. Employee Retirement Income Security Act of 1974, as amended, and
regulations or legal
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conclusions with respect thereto, constitute an accurate summary of the matters set
forth therein.
(o) There is no action, suit, proceeding, inquiry or investigation before or brought by
any court or governmental agency or body, domestic or foreign, now pending, or, to the
knowledge of the Company or any subsidiary of the Company, threatened, against or affecting
the Company or any subsidiary of the Company, that is required to be disclosed in the
Registration Statement (other than as disclosed therein), or that would, individually or in
the aggregate, have a material adverse effect on the current or future consolidated
financial position, stockholders’ equity or results of operations of the Company and its
subsidiaries (a “Material Adverse Effect”), or that would materially and adversely affect
the properties or assets thereof, the performance by the Company of its obligations
hereunder and under the Indenture and the consummation of the transactions contemplated
thereby; and the aggregate of all pending legal or governmental proceedings to which the
Company or any subsidiary of the Company is a party or of which any of their respective
property or assets is the subject that are not described in the Registration Statement,
including ordinary routine litigation incidental to the business, would not have a Material
Adverse Effect.
(p) The Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof, will not be an “investment company,”
as such term is defined in the Investment Company Act.
(q) (A)(i) At the time of filing the Registration Statement, (ii) at the time of the
most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the Act
(whether such amendment was by post-effective amendment, incorporated report filed pursuant
to Section 13 or 15(d) of the Exchange Act or form of prospectus), and (iii) at the time the
Company or any person acting on its behalf (within the meaning, for this clause only, of
Rule 163(c) under the Act) made any offer relating to the Securities in reliance on the
exemption of Rule 163 under the Act, the Company was a “well-known seasoned issuer” as
defined in Rule 405 under the Act (“Rule 405”); and (B) at the earliest time after the
filing of the Registration Statement that the Company or another offering participant made a
bona fide offer (within the meaning of Rule 164(h)(2) under the Act) of the Securities, the
Company was not an “ineligible issuer” as defined in Rule 405 under the Act.
(r) The Company and the subsidiaries of the Company possess such permits, licenses,
approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued
by the appropriate federal, state, local or foreign regulatory agencies or bodies necessary
to conduct the business now operated by them, except where the failure so to possess would
not, individually or in the aggregate, have a Material Adverse Effect; the Company and the
subsidiaries of the Company are in compliance with the terms and conditions of all such
Governmental Licenses, except where the failure so to comply would not, individually or in
the aggregate, have a Material Adverse Effect; all of the Governmental Licenses are valid
and in full force and effect, except when the invalidity of such Governmental Licenses or
the failure of such Governmental Licenses to be in full force and effect would not,
individually or in the aggregate, have a Material Adverse
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Effect; and neither Company nor any of the subsidiaries of the Company has received any
notice of proceedings relating to the revocation or modification of any such Governmental
Licenses which, individually or in the aggregate, if the subject of an unfavorable decision,
ruling or finding, would have a Material Adverse Effect.
(s) Ernst & Young LLP, the accounting firm that certified the audited financial
statements and supporting schedules included in the Registration Statement is an independent
registered public accountant firm as required by the Act and the rules and regulations of
the Commission thereunder.
(t) The Company maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) under the Exchange Act) that complies with the
requirements of the Exchange Act and has been designed by the Company’s principal executive
officer and principal financial officer, or under their supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting
principles. The Company’s internal control over financial reporting is effective and the
Company is not aware of any material weaknesses in its internal control over financial
reporting. Except as disclosed in the Pricing Prospectus, since the date of the latest
audited financial statements included or incorporated by reference in the Pricing
Prospectus, there has been no change in the Company’s internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting, except such changes as, individually or
in the aggregate, would not reasonably be expected to have a Material Adverse Effect.
(u) The Company maintains disclosure controls and procedures (as such term is defined
in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange
Act; such disclosure controls and procedures have been designed to ensure that material
information relating to the Company and its subsidiaries is made known to the Company’s
principal executive officer and principal financial officer by others within those entities;
and such disclosure controls and procedures are effective.
(v) The operations of the Company and its subsidiaries have been conducted at all times
in compliance with applicable financial record keeping and reporting requirements of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering
statutes of all applicable jurisdictions, the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any
applicable governmental agency (collectively, the “Money Laundering Laws”), except where the
failure to so comply would not, individually or in the aggregate, have a Material Adverse
Effect, and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its subsidiaries with
respect to the Money Laundering Laws is pending or, to the knowledge of the Company,
threatened that would, individually or in the aggregate, have a Material Adverse Effect.
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(w) None of the Company, any of its subsidiaries or, to the knowledge of the Company,
any director, officer, agent, employee of the Company (in their capacities as such) or
affiliate of the Company or any of its subsidiaries is currently subject to any U.S.
sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the
Treasury (“OFAC”); and the Company will not directly or indirectly use the proceeds of the
offering of the Securities hereunder, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose
of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.
2. Purchase and Sale. Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, (a) the Company agrees to issue and sell to the
Underwriter, and the Underwriter agrees to purchase from the Company, at the purchase price set
forth in Schedule I, the principal amount of Firm Securities set forth in Schedule I, and (b) in
the event and to the extent that the Underwriter shall exercise the election to purchase Optional
Securities as provided below, the Company agrees to issue and sell to the Underwriter, and the
Underwriter agrees to purchase from the Company, at the same purchase price set forth in clause (a)
of this Section 2, that portion of the aggregate principal amount of the Optional Securities as to
which such election shall have been exercised (to be adjusted by you so as to eliminate fractions).
The Company hereby grants to the Underwriter the right to purchase at its election up to an
aggregate of $187,500,000 principal amount of Optional Securities, at the same purchase price set
forth in clause (a) of the first paragraph of this Section 2, for the sole purpose of covering
sales of Securities in excess of the aggregate principal amount of Firm Securities. Any such
election to purchase Optional Securities may be exercised only by written notice from you to the
Company, given within a period of 30 calendar days after the date of this Agreement, setting forth
the aggregate principal amount of Optional Securities to be purchased and the date on which such
Optional Securities are to be delivered, as determined by you but in no event earlier than the
First Time of Delivery (as defined in Section 4) or, unless you and the Company otherwise agree in
writing, earlier than two or later than ten business days after the date of such notice.
3. Delivery and Payment. (a) The Securities to be purchased by the Underwriter
hereunder will be represented by one or more definitive global Securities in book-entry form that
will be deposited by or on behalf of the Company with The Depository Trust Company (“DTC”) or its
designated custodian. The time and date of such delivery and payment shall be, with respect to the
Firm Securities, approximately 10 A.M. (New York City time), on January 29, 2008, or at such time
and date as you and the Company may agree upon in writing, and, with respect to the Optional
Securities, approximately 10 A.M. (New York City time), on the date specified by the Underwriter in
the written notice given by the Underwriter of its election to purchase the Optional Securities, or
at such other time and date as you and the Company may agree upon in writing. Such time and date
for delivery of the Firm Securities is herein called the “First Time of Delivery”, such time and
date for delivery of the Optional Securities, if not the First Time of Delivery, is herein called
the “Second Time of Delivery”, and each such time and date for delivery is herein called a “Time of
Delivery”. The Company will deliver the Securities to Xxxxxxx, Xxxxx & Co., for the account of the
Underwriter, against
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payment by or on behalf of the Underwriter of the purchase price therefor by wire transfer of
Federal (same-day) funds to the account specified by the Company to Xxxxxxx, Sachs & Co. at least
forty-eight hours in advance, by causing DTC to credit the Securities to the account of Xxxxxxx,
Xxxxx & Co. at DTC. The Company will cause the certificates representing the Securities to be made
available to Xxxxxxx, Sachs & Co. for checking at least twenty-four hours prior to each Time of
Delivery at the office of DTC or its designated custodian (the “Designated Office”).
(b) The documents to be delivered at each Time of Delivery by or on behalf of the parties
hereto pursuant to Section 6, including the cross-receipt for the Securities and any additional
documents requested by the Underwriter pursuant to Section 6(k) hereof, will be delivered at the
offices of Xxxxxxxx & Xxxxxxxx LLP, 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (the “Closing
Location”), and the Securities will be delivered at the Designated Office, all at such Time of
Delivery. A meeting will be held at the Closing Location at 5:00 p.m., New York City time, on the
New York Business Day next preceding such Time of Delivery, at which meeting the final drafts of
the documents to be delivered pursuant to the preceding sentence will be available for review by
the parties hereto. For the purposes of this Section 3, “New York Business Day” shall mean each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in
New York City are generally authorized or obligated by law or executive order to close.
4. Offering by Underwriter. It is understood that the Underwriter proposes to offer
the Firm Securities for sale as set forth in the Pricing Disclosure Package and the Prospectus.
5. Agreements. (A) General. The Company agrees with the Underwriter as
follows:
(a) To prepare the Prospectus in a form approved by you and to file such Prospectus
pursuant to Rule 424(b) under the Act not later than the Commission’s close of business on
the second business day following the date of this Agreement; to make no further amendment
or any supplement to the Registration Statement, the Basic Prospectus or the Prospectus
prior to any Time of Delivery that shall be disapproved by you promptly after reasonable
notice thereof; to advise you, promptly after it receives notice thereof, of the time when
any amendment to the Registration Statement has been filed or becomes effective or any
amendment or supplement to the Prospectus has been filed and to furnish you with copies
thereof; to prepare a final term sheet, containing solely a description of the Securities,
in a form set forth in Schedule II and to file such term sheet pursuant to Rule 433(d) under
the Act within the time required by such Rule; to file promptly all other material required
to be filed by the Company with the Commission pursuant to Rule 433(d) under the Act; to
file promptly all reports and any definitive proxy or information statements required to be
filed by the Company (to the extent not exempt under Rule 12h-5 under the Exchange Act) with
the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act and for so
long as the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule
173(a) under the Act) is required in connection with the offering and sale of the
Securities; to advise you, promptly after the Company receives notice thereof, of the time
when any amendment to
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the Registration Statement has been filed or becomes effective or any supplement to the
Prospectus or any amended Prospectus has been filed with the Commission, of the issuance by
the Commission of any stop order or of any order preventing or suspending the use of any
Preliminary Prospectus or other prospectus in respect of the Securities, of any notice of
objection of the Commission to the use of the Registration Statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Act, of the suspension of the
qualification of the Securities for offering or sale in any jurisdiction, of the initiation
or threatening of any proceeding for any such purpose, or of any request by the Commission
for the amending or supplementing of the Registration Statement or the Prospectus or for
additional information; and, in the event of the issuance of any stop order or of any order
preventing or suspending the use of any Preliminary Prospectus or other prospectus in
respect of the Securities or suspending any such qualification, to promptly use its best
efforts to obtain the withdrawal of such order; and in the event of any such issuance of a
notice of objection, promptly to take such steps including, without limitation, amending the
Registration Statement or filing a new registration statement, at the Company’s own expense,
as may be necessary to permit offers and sales of the Securities by the Underwriter
(references herein to the Registration Statement shall include any such amendment or new
registration statement).
(b) If required by Rule 430B(h) under the Act, to prepare a form of prospectus in a
form approved by you and to file such form of prospectus pursuant to Rule 424(b) under the
Act not later than may be required by Rule 424(b) under the Act; and to make no further
amendment or supplement to such form of prospectus that shall be disapproved by you promptly
after reasonable notice thereof.
(c) Promptly from time to time to take such action as the Underwriter may reasonably
request to qualify the Securities for offering and sale under the securities laws of such
jurisdictions as the Underwriter may request and to comply with such laws so as to permit
the continuance of sales and dealings therein in such jurisdictions for as long as may be
necessary to complete the distribution of the Securities; provided that in connection
therewith the Company shall not be required to qualify as a foreign corporation where it is
not now so qualified or to file a general consent to service of process in any jurisdiction
where it is not now so subject.
(d) Prior to noon, New York City time, on the New York business day next succeeding the
date of this Agreement and from time to time, to furnish the Underwriter with written and
electronic copies of the Prospectus in New York City in such quantities as you may
reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice
referred to in Rule 173(a) under the Act) is required at any time prior to the expiration of
nine months after the time of issue of the Prospectus in connection with the offering or
sale of the Securities and if at such time any event shall have occurred as a result of
which the Prospectus as then amended or supplemented would include an untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made when such Prospectus
(or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is delivered, not
misleading, or, if for any other reason it shall be necessary during such same period to
amend or supplement the Prospectus or to file under the Exchange
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Act any document incorporated by reference in the Prospectus in order to comply with
the Act, the Exchange Act or the Trust Indenture Act, to notify you and upon your request to
file such document and to prepare and furnish without charge to the Underwriter and to any
dealer in securities as many written and electronic copies as you may from time to time
reasonably request of an amended Prospectus or a supplement to the Prospectus that will
correct such statement or omission or effect such compliance; and in case the Underwriter is
required to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a)
under the Act) in connection with sales of any of the Securities at any time nine months or
more after the time of issue of the Prospectus, upon your request but at the expense of the
Underwriter, to prepare and deliver to the Underwriter as many written and electronic copies
as you may request of an amended or supplemented Prospectus complying with Section 10(a)(3)
of the Act.
(e) To make generally available to its securityholders and to the Underwriter as soon
as practicable, but in any event not later than sixteen months after the effective date of
the Registration Statement (as defined in Rule 158(c) under the Act), an earnings statement
(which need not be audited) of the Company and its subsidiaries, complying with Section
11(a) of the Act and the rules and regulations thereunder (including, at the option of the
Company, Rule 158).
(f) During the period beginning from the date hereof, and continuing to and including
the date 90 days after the date hereof or such earlier time as you may notify the Company,
not to offer, sell, contract to sell, pledge, grant any option to purchase, make any short
sale or otherwise dispose of any shares of Stock of the Company, or any options or warrants
to purchase any shares of Stock of the Company, or any securities convertible into,
exchangeable for or that represent the right to receive shares of Stock of the Company
(other than (1) the offer and sale of Securities pursuant to this Agreement, (2) the grant
of stock options or other equity awards pursuant to the Company’s employee benefit, employee
stock purchase or dividend reinvestment plans, (3) the issuance of Stock pursuant to the
exercise of such options or settlement of such equity awards, or (4) upon the consent of the
Underwriter).
(g) To pay the required Commission filing fees relating to the Securities within the
time required by Rule 456(b)(1) under the Act without regard to the proviso therein and
otherwise in accordance with Rules 456(b) and 457(r) under the Act.
(h) To reserve and keep available at all times, free of preemptive rights, shares of
Stock for the purpose of enabling the Company to satisfy any obligation to issue shares of
Stock upon conversion of the Securities.
(i) To take any actions required for the shares of Stock issuable upon conversion of
the Securities to be duly listed for quotation on the Exchange.
(j) To pay all expenses incident to the performance of each of its obligations under
this Agreement, and will pay or cause to be paid the following: (i) the fees, disbursements
and expenses of its counsel and accountants in connection with the registration of the
Securities and the shares of Stock issuable upon conversion of the
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Securities under the Act and all other expenses in connection with the preparation,
printing, reproduction and filing of the Registration Statement, the Basic Prospectus, any
Preliminary Prospectus, any Issuer Free Writing Prospectus and the Prospectus and amendments
and supplements thereto and the mailing and delivering of copies thereof to the Underwriter
and dealers; (ii) the cost of printing or producing this Agreement, the Indenture, closing
documents (including any compilations thereof) and any other documents in connection with
the offering, purchase, sale and delivery of the Securities; (iii) all expenses in
connection with the qualification of the Securities for offering and sale under state
securities laws, including the and disbursements of counsel for the Underwriter in
connection with such qualification and in connection with the Blue Sky survey; (iv) filing
fees incident to, and the fees and disbursements of counsel for the Underwriter in
connection with, any required review by The Financial Industry Regulatory Authority, Inc.
(“FINRA”) of the terms of the sale of the Securities (provided, however, that the aggregate
fees and disbursements of counsel in connection with this subsection (v) and subsection
(iii) above shall not exceed $30,000 without the prior written consent of the Company, which
consent will not be unreasonably withheld); (vi) all fees and expenses in connection with
the listing of the shares of Stock issuable upon conversion of the Securities; (vii) the
cost of preparing the Securities; (viii) the costs and charges of any trustee, transfer
agent or registrar or paying agent; and (ix) all other costs and expenses incident to the
performance of its obligations hereunder that are not otherwise specifically provided for in
this paragraph. It is understood, however, that, except as provided in this paragraph, and
Sections 7 and 9, the Underwriter will pay all of its own costs and expenses, including the
fees of its counsel, transfer taxes on resale of any of the Securities by it, the cost of
preparing and distributing any term sheet prepared by the Underwriter, and any advertising
expenses connected with any offers they may make.
(B) Free Writing Prospectuses.
(a) (i) The Company represents and agrees that, other than the final term sheet
prepared and filed pursuant to Section 5(A)(a), without the prior consent of the
Underwriter, it has not made and will not make any offer relating to the Securities that
would constitute a “free writing prospectus” as defined in Rule 405 under the Act;
(ii) The Underwriter represents and agrees that, without the prior consent of the
Company and the Underwriter, other than one or more term sheets relating to the Securities
containing customary information and conveyed to purchasers of Securities, it has not made
and will not make any offer relating to the Securities that would constitute a free writing
prospectus; and
(iii) Any such free writing prospectus the use of which requires consent under clauses
(i) and (ii) above and has been consented to by the Company and the Underwriter (including
the final term sheet prepared and filed pursuant to Section 5(A)(a)) is listed on Schedule
I(a).
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(b) The Company has complied and will comply with the requirements of Rule 433 under
the Act applicable to any Issuer Free Writing Prospectus, including timely filing with the
Commission or retention where required and legending.
(c) The Company agrees that if at any time following issuance of an Issuer Free Writing
Prospectus any event occurred or occurs as a result of which such Issuer Free Writing
Prospectus would conflict with the information in the Registration Statement, the Pricing
Prospectus or the Prospectus or would include an untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light
of the circumstances then prevailing, not misleading, the Company will give prompt notice
thereof to the Underwriter and, if requested by the Underwriter, will prepare and furnish
without charge to the Underwriter an Issuer Free Writing Prospectus or other document that
will correct such conflict, statement or omission; provided, however, that this
representation and warranty shall not apply to any statements or omissions in an Issuer Free
Writing Prospectus made in reliance upon and in conformity with information furnished in
writing to the Company by the Underwriter for use therein.
6. Conditions to the Obligations of the Underwriter. The obligations of the
Underwriter, as to Securities to be purchased at each Time of Delivery, shall be subject to the
accuracy of the representations and warranties on the part of the Company contained herein as of
the date hereof and at and as of such Time of Delivery, to the accuracy of the statements of the
Company made in any certificates pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional conditions:
(a) The Prospectus shall have been filed with the Commission pursuant to Rule 424(b)
under the Act within the applicable time period prescribed for such filing by the rules and
regulations under the Act and in accordance with Section 5(A)(a); the final term sheet
contemplated by Section 5(A)(a), and any other material required to be filed by the Company
pursuant to Rule 433(d) under the Act, shall have been filed with the Commission within the
applicable time periods prescribed for such filings by Rule 433; no stop order suspending
the effectiveness of the Registration Statement or any part thereof shall have been issued
and no proceeding for that purpose shall have been initiated or threatened by the Commission
and no notice of objection of the Commission to the use of the Registration Statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act shall have been
received; no stop order suspending or preventing the use of the Prospectus or any Issuer
Free Writing Prospectus shall have been issued and no proceeding for that purpose shall have
been initiated or threatened by the Commission; and all requests for additional information
on the part of the Commission shall have been complied with to your reasonable satisfaction.
(b) Xxxxx Day, counsel for the Company, shall have furnished to the Underwriter an
opinion, dated such Time of Delivery, with respect to such matters as the Underwriter may
reasonably require.
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(c) The Company shall have furnished to the Underwriter an opinion, dated such Time of
Delivery, of National City Corporation Law Department, counsel for the Company, with respect
to such matters as the Underwriter may reasonably require.
(d) The Underwriter shall have received from Xxxxxxxx & Xxxxxxxx LLP, counsel for the
Underwriter, such opinion or opinions, dated such Time of Delivery, with respect to such
matters as the Underwriter may reasonably require.
(e) On the date of the Prospectus at a time prior to the execution of this Agreement,
at 9:30 A.M., New York City time, on the effective date of any post-effective amendment to
the Registration Statement filed subsequent to the date of this Agreement and also at such
Time of Delivery, (1) Ernst & Young LLP shall have furnished to you a letter or letters,
dated the respective dates of delivery thereof, in form and substance satisfactory to you,
containing statements and information of the type ordinarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements, certain
financial information contained in the Registration Statement and the Prospectus and such
other information specified therein and (2) the Company shall have furnished or caused to be
furnished to you a certificate or certificates of the Chief Financial Officer of the
Company, dated the respective dates of delivery thereof, in form and substance satisfactory
to you, containing statements and information with respect to the financial statements,
certain financial information contained in the Registration Statement and the Prospectus and
such other information specified therein, based on an examination of the Company’s financial
records and schedules undertaken by the Chief Financial Officer or members of his staff who
are responsible for the Company’s financial and accounting matters.
(f) Neither the Company nor any of its Significant Subsidiaries shall have sustained
since the date of the latest audited financial statements included or incorporated by
reference in the Pricing Prospectus any loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, other than as set forth or
contemplated in the Pricing Prospectus, and (ii) since the respective dates as of which
information is given in the Pricing Prospectus there shall not have been any change in the
capital stock or long-term debt of the Company or any of its subsidiaries or any change, or
any development that is reasonably likely to involve a prospective change, in or affecting
the general affairs, management, financial position, stockholders’ equity or results of
operations of the Company and its subsidiaries, other than as set forth or contemplated in
the Pricing Prospectus, the effect of which, in any such case described in clause (i) or
(ii), is in the judgment of the Underwriter so material and adverse as to make it
impracticable or inadvisable to proceed with the public offering or the delivery of the
Securities on the terms and in the manner contemplated in the Prospectus.
(g) The Company shall have complied with the provisions of the first sentence of
Section 5(A)(d) with respect to the furnishing of prospectuses on the business day next
succeeding the date of this Agreement.
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(h) On or after the Applicable Time (i) no downgrading shall have occurred in the
rating accorded the Company’s debt securities or preferred stock by any “nationally
recognized statistical rating organization,” as that term is defined in Section 3(a)(62) of
the Exchange Act, and (ii) no such organization shall have publicly announced that it has
under surveillance or review, with possible negative implications, its rating of any of the
Company’s debt securities or preferred stock.
(i) On or after the Applicable Time there shall not have occurred any of the following:
(i) a suspension or material limitation in trading in securities generally on the New York
Stock Exchange; (ii) a suspension or material limitation in trading in the Company’s
securities on the New York Stock Exchange; (iii) a general moratorium on commercial banking
activities declared by either Federal or New York authorities or a material disruption in
commercial banking or securities settlement or clearance services in the United States; (iv)
the outbreak or escalation of hostilities involving the United States or the declaration by
the United States of a national emergency or war or (v) the occurrence of any other calamity
or crisis or any change in financial, political or economic conditions in the United States
or elsewhere, if the effect of any such event specified in clause (iv) or (v) in the
judgment of Xxxxxxx, Xxxxx & Co. makes it impracticable or inadvisable to proceed with the
public offering or the delivery of the Securities being delivered at such Time of Delivery
on the terms and in the manner contemplated in the Prospectus.
(j) Any actions required for the shares of Stock issuable upon conversion of the
Securities to be duly listed for quotation on the New York Stock Exchange shall have been
taken.
(k) The Company shall have furnished or caused to be furnished to you at such Time of
Delivery certificates of officers of the Company satisfactory to you as to the accuracy of
the representations and warranties of the Company herein at and as of such time, as to the
performance by the Company of all of its obligations hereunder to be performed at or prior
to such time, as to the matters set forth in subsections (a) and (f) of this Section and as
to such other matters as you may reasonably request.
7. Indemnification and Contribution.
(a) The Company will indemnify and hold harmless the Underwriter against any losses,
claims, damages or liabilities, joint or several, to which the Underwriter may become
subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of a material fact contained in the Registration Statement, the
Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or
any amendment or supplement thereto, any Issuer Free Writing Prospectus or any “issuer
information” filed or required to be filed pursuant to Rule 433(d) under the Act, or arise
out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading,
and will reimburse the Underwriter for any legal or other expenses reasonably incurred by
the Underwriter in connection with investigating or defending any
Convertible Notes Underwriting Agreement
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such action or claim as such expenses are incurred; provided, however, that the Company
shall not be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in the Registration Statement, the Basic Prospectus, any
Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or
supplement thereto, or any Issuer Free Writing Prospectus, in reliance upon and in
conformity with written information furnished to the Company by the Underwriter for use
therein.
(b) The Underwriter will indemnify and hold harmless the Company against any losses,
claims, damages or liabilities to which the Company may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement thereto
or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, the Pricing Prospectus or the Prospectus, or any such amendment or supplement
thereto or any Issuer Free Writing Prospectus, in reliance upon and in conformity with
written information furnished to the Company by the Underwriter for use therein; and will
reimburse the Company for any legal or other expenses reasonably incurred by the Company, as
appropriate, in connection with investigating or defending any such action or claim as such
expenses are incurred.
(c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of
notice of the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under such subsection, notify
the indemnifying party in writing of the commencement thereof; but the omission so to notify
the indemnifying party shall not relieve it from any liability that it may have to any
indemnified party other than under such subsection. In case any such action shall be
brought against any indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate therein and,
to the extent that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel satisfactory to such indemnified party
(who shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party shall not be liable
to such indemnified party under such subsection for any legal expenses of other counsel or
any other expenses, in each case subsequently incurred by such indemnified party, in
connection with the defense thereof other than reasonable costs of investigation. No
indemnifying party shall, without the written consent of the indemnified party, effect the
settlement or compromise of, or consent to the entry of any judgment with respect to, any
pending or threatened action or claim in respect of which
Convertible Notes Underwriting Agreement
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indemnification or contribution may be sought hereunder (whether or not the indemnified
party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (i) includes an unconditional release of the indemnified party from
all liability arising out of such action or claim and (ii) does not include a statement as
to or an admission of fault, culpability or a failure to act, by or on behalf of any
indemnified party.
(d) If the indemnification provided for in this Section 7 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b) above in
respect of any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or liabilities
(or actions in respect thereof) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Underwriter on the other from the
offering of the Securities. If, however, the allocation provided by the immediately
preceding sentence is not permitted by applicable law or if the indemnified party failed to
give the notice required under subsection (c) above, then each indemnifying party shall
contribute to such amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative fault of the
Company on the one hand and the Underwriter on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Underwriter on the other shall be
deemed to be in the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company bear to the total underwriting discounts and
commissions received by the Underwriter, in each case as set forth in the table on the cover
page of the Prospectus. The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company on
the one hand or the Underwriter on the other and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission. The
Company on the one hand and the Underwriter on the other agree that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by pro rata
allocation (even if the Underwriter were treated as one entity for such purpose) or by any
other method of allocation that does not take account of the equitable considerations
referred to above in this subsection (d). The amount paid or payable by an indemnified
party as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
subsection (d), the Underwriter shall not be required to contribute any amount in excess of
the amount by which the total price at which the Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any damages which
the Underwriter has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent
Convertible Notes Underwriting Agreement
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misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation.
(e) The obligations of the Company under this Section 7 shall be in addition to any
liability that the Company may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls the Underwriter within the meaning of the
Act; and the obligations of the Underwriter under this Section 7 shall be in addition to any
liability which the Underwriter may otherwise have and shall extend, upon the same terms and
conditions, to each officer and director of the Company and to each person, if any, who
controls the Company within the meaning of the Act.
8. [INTENTIONALLY OMITTED].
9. Expenses on Termination. If for any reason the Securities are not delivered by or
on behalf of the Company as provided herein, the Company will reimburse the Underwriter for all
reasonable out-of-pocket expenses, including reasonable fees and disbursements of counsel,
reasonably incurred by the Underwriter in making preparations for the purchase, sale and delivery
of the Securities but the Company shall then be under no further liability to the Underwriter
except as provided in Section 5A(j) and Section 7.
10. Time is of the Essence. Time shall be of the essence of this Agreement. As used
herein, the term “business day” shall mean any day when the Commission’s office in Washington, D.C.
is open for business.
11. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company or its officers, and
of the Underwriter set forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of the Underwriter, the Company or any
of the controlling persons referred to in Section 7(e), and will survive delivery of and payment
for the Securities. The provisions of Sections 5(A)(j) and 7 shall survive the termination or
cancellation of this Agreement.
12. Arm’s-Length Terms. The Company acknowledges and agrees that (i) the purchase and
sale of the Securities pursuant to this Agreement is an arm’s-length commercial transaction between
the Company, on the one hand, and the Underwriter, on the other, (ii) in connection therewith and
with the process leading to such transaction the Underwriter is acting solely as a principal and
not the agent, fiduciary or advisor of the Company (and the Company agrees that it will not claim
that the Underwriter owes a fiduciary or similar duty to the Company in connection therewith), and
(iii) the Company has consulted its own legal and financial advisors to the extent they deemed
appropriate.
13. No Other Agreements. This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Company and the Underwriter, or any of them,
with respect to the subject matter hereof.
14. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors, heirs, executors, and administrators, and
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the officers and directors and controlling persons referred to in Section 7, and no other
person will have any right or obligation hereunder.
15. Applicable Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York.
16. Waiver of Jury Trial. The Company and the Underwriter hereby irrevocably waives,
to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
17. Counterparts; Notices. This Agreement may be signed in any number of
counterparts, each of which shall be deemed an original, which taken together shall constitute one
and the same instrument.
All notices hereunder shall be in writing or by telegram if promptly confirmed in writing, and
if to the Underwriter shall be sufficient in all respects if delivered or sent by mail, telex or
facsimile transmission to the address of Xxxxxxx, Xxxxx & Co., as set forth in Schedule I; and if
to the Company shall be sufficient in all respects if delivered or sent by mail, telex or facsimile
transmission to its address set forth in the Registration Statement, Attention: General Counsel and
Secretary.
In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)), the Underwriter is required to obtain, verify and record
information that identifies its respective clients, including the Company.
18. Disclosure of Tax Treatment. Notwithstanding anything herein to the contrary, the
Company is authorized to disclose to any persons the U.S. federal and state income tax treatment
and tax structure of the potential transaction and all materials of any kind (including tax
opinions and other tax analyses) provided to the Company relating to that treatment and structure,
without the Underwriter imposing any limitation of any kind. However, any information relating to
the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall not
apply) to the extent necessary to enable any person to comply with securities laws. For this
purpose, “tax structure” is limited to any facts that may be relevant to that treatment.
[THE NEXT PAGE IS THE SIGNATURE PAGE]
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If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us four counterparts hereof, whereupon this letter and your acceptance shall represent a
binding agreement among the Company and the Underwriter.
| NATIONAL CITY CORPORATION |
||||
| By: | /s/ Xxxxxx X. Xxxxxxxxxx | |||
| Name: | Xxxxxx X. Xxxxxxxxxx | |||
| Title: | Senior Vice President and Treasurer | |||
Accepted as of the date hereof:
| /s/ Xxxxxxx, Sachs & Co. | ||||
| (Xxxxxxx, Xxxxx & Co.) | ||||
Convertible Notes Underwriting Agreement
