UNDERWRITING AGREEMENT
Exhibit 10.1
May 2, 2011
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
As Representative of the several Underwriters
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Incorporated
As Representative of the several Underwriters
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Introductory. Celanese US Holdings LLC, a Delaware limited liability company (the “Company”),
a wholly-owned subsidiary of Celanese Corporation, a Delaware corporation (the “Parent Guarantor”),
proposes to issue and sell to Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated (“MLPF&S”) and the
other several Underwriters named in Schedule A hereto (the “Underwriters”), acting severally and
not jointly, the respective amounts set forth in such Schedule A of $400.0 million aggregate
principal amount of the Company’s 5⅞% Senior Notes due 2021 (the “Notes”). MLPF&S has agreed to
act as the representative of the several Underwriters (the “Representative”) in connection with the
offering and sale of the Securities (as defined below).
The Securities will be issued pursuant to an indenture, to be dated as of the Closing Date (as
defined in Section 2 hereof) (the “Base Indenture”), among the Company, the Guarantors (as defined
below) and Xxxxx Fargo Bank, National Association, as trustee (the “Trustee”). Certain terms of
the Securities will be established pursuant to a supplemental indenture dated as of the Closing
Date (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) to the
Base Indenture. Notes will be issued only in book-entry form in the name of Cede & Co., as nominee
of The Depository Trust Company (the “Depositary”) pursuant to a letter of representations, dated
September 16, 2010 (the “DTC Agreement”), among the Company and the Depositary.
The payment of principal of, premium, if any, and interest on the Notes will be fully and
unconditionally guaranteed (the “Guarantees”) on a senior unsecured basis, jointly and severally by
(i) the Parent Guarantor and (ii) the subsidiaries of the Parent Guarantor (excluding the Company)
that are listed on Schedule B-1 hereof as “Guarantors” (collectively, the “Guarantors”). The Notes
and the Guarantees are herein collectively referred to as the “Securities.”
SECTION 1. Representations and Warranties. Each of the Company and the Guarantors,
jointly and severally, hereby represents, warrants and covenants to each Underwriter that, as of
the date hereof and as of the Closing Date:
(a) Registration Statement. The Company has prepared and filed with the Securities
and Exchange Commission (the “Commission”) a registration statement on Form S-3 (File No.
333-173822), which contains a base prospectus (the “Base Prospectus”), to be used in
connection with the public offering and sale of the Securities. Such registration
statement, as amended, including the financial statements, exhibits and schedules thereto,
at each time of effectiveness under the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder (collectively, the “Securities Act”),
including any required information deemed to be a part thereof at the
time of effectiveness pursuant to Rule 430B or 430C under the Securities Act or the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder (collectively, the “Exchange Act”), is called the “Registration Statement.” Any
preliminary prospectus supplement relating to the Securities that is filed with the
Commission pursuant to Rule 424(b), together with the Base Prospectus, is hereafter called a
“Preliminary Prospectus.” The term “Prospectus” shall mean the final prospectus supplement
relating to the Securities that is first filed pursuant to Rule 424(b) after the date and
time that this Agreement is executed and delivered by the parties hereto, including the Base
Prospectus. Any reference herein to the Registration Statement, 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 Securities Act; any reference to
any amendment or supplement to any Preliminary Prospectus or the Prospectus shall be deemed
to refer to and include any documents filed after the date of such Preliminary Prospectus or
Prospectus, as the case may be, under the Exchange Act, and incorporated by reference in
such Preliminary Prospectus or Prospectus, as the case may be; and any reference to any
amendment to the Registration Statement shall be deemed to refer to and include any annual
report of the Parent Guarantor 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.
(b) Compliance with Registration Requirements. The Parent Guarantor and the
Company meet the requirements for use of Form S-3 under the Securities Act. The
Registration Statement has become effective upon filing with the Commission under the
Securities Act. No stop order suspending the effectiveness of the Registration Statement is
in effect, the Commission has not issued any order or notice preventing or suspending the
use of the Registration Statement, any Preliminary Prospectus or the Prospectus and no
proceedings for such purpose or pursuant to Section 8A of the Securities Act have been
instituted or are pending or, to the best knowledge of the Company, are contemplated or
threatened by the Commission.
Each of the Preliminary Prospectus and the Prospectus when filed complied in all
material respects with the Securities Act. Each of the Registration Statement and any
post-effective amendment thereto, at each time of effectiveness, at the date hereof and at
the Closing Date, complied and will comply in all material respects with the Securities Act
and did not and will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements
therein not misleading. The Prospectus, as amended or supplemented, as of its date, at the
time of any filing pursuant to Rule 424(b) and, at the Closing Date, did not and will not
contain any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The representations and warranties set forth in the two
immediately preceding sentences do not apply to statements in or omissions from the
Registration Statement or any post-effective amendment thereto, or the Preliminary
Prospectus or the Prospectus, or any amendments or supplements thereto, made in reliance
upon and in conformity with information relating to any Underwriter furnished to the Company
in writing by the Representative expressly for use therein, it being understood
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and agreed that the only such information furnished by the Representative
consists of the information described as such in Section 7(b) hereof.
The documents incorporated by reference in the Registration Statement, the Disclosure
Package (as defined herein) and the Prospectus, when they were filed with the Commission
conformed in all material respects to the requirements of the Exchange Act. Any further
documents so filed and incorporated by reference in the Registration Statement, the
Disclosure Package and the Prospectus or any further amendment or supplement thereto, when
such documents are filed with the Commission will conform in all material respects to the
requirements of the Exchange Act. All documents incorporated or deemed to be incorporated
by reference in the Registration Statement, the Disclosure Package and the Prospectus, as of
their respective dates, when taken together with the other information in the Disclosure
Package, at the Applicable Time and, when taken together with the other information in the
Prospectus, at the Closing Date, did not or will not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
(c) Well-Known Seasoned Issuer. (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 Securities 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), (iii) at the time the Company or any person acting on
its behalf (within the meaning, for this clause only, of Rule 163(c) of the Securities Act)
made any offer relating to the Securities in reliance on the exemption of Rule 163 of the
Securities Act, and (iv) at the Applicable Time (with such date and time being used as the
determination date for purposes of this clause (iv)), the Company was and is a “well-known
seasoned issuer” as defined in Rule 405 of the Securities Act. The Registration Statement
is an “automatic shelf registration statement,” as defined in Rule 405 of the Securities Act
that has been filed with the Commission not earlier than three years prior to the Closing
Date; the Company has not received from the Commission any notice pursuant to Rule 401(g)(2)
of the Securities Act objecting to use of the automatic shelf registration statement form;
and the Company has not otherwise ceased to be eligible to use the automatic shelf
registration form.
(d) The Disclosure Package. The term “Disclosure Package” shall mean (i) the
Preliminary Prospectus, if any, as amended or supplemented, (ii) the issuer free writing
prospectuses as defined in Rule 433 of the Securities Act (each, an “Issuer Free Writing
Prospectus”), if any, identified in Schedule C hereto, (iii) any other free writing
prospectus that the parties hereto shall hereafter expressly agree in writing to treat as
part of the Disclosure Package and (iv) the Final Term Sheet (as defined herein), which also
shall be identified in Schedule C hereto. As of 3:45 p.m. (Eastern time) on the date of
this Agreement (the “Applicable Time”), the Disclosure Package did not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; provided that this representation, warranty and agreement shall not apply to
statements in or omissions from the Disclosure Package based upon and in conformity
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with information furnished to the Company in writing by any Underwriter through the
Representative expressly for use therein, it being understood and agreed that the only such
information furnished by or on behalf of any Underwriter consists of the information
described as such in Section 7(b) hereof.
(e) Company Not Ineligible Issuer. (i) At the earliest time after the filing of
the Registration Statement relating to the Securities that the Company or another offering
participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities
Act and (ii) as of the Applicable Time (with such date being used as the determination date
for purposes of this clause (ii)), the Company was not and is not an “ineligible issuer” (as
defined in Rule 405 of the Securities Act), without taking account of any determination by
the Commission pursuant to Rule 405 of the Securities Act that it is not necessary that the
Company be considered an “ineligible issuer.”
(f) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of
its issue date and at all subsequent times through the completion of the offering of
Securities under this Agreement or until any earlier date that the Company notified or
notifies the Representative as described in the next sentence, did not, does not and will
not include any information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement, the Disclosure Package or the Prospectus. If at
any time following issuance of an Issuer Free Writing Prospectus there occurred or occurs an
event or development as a result of which such Issuer Free Writing Prospectus conflicted or
would conflict with the information contained in the Registration Statement, the Disclosure
Package or the Prospectus, the Company has promptly notified or will promptly notify the
Representative and has promptly amended or supplemented or will promptly amend or
supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct
such conflict. Any Issuer Free Writing Prospectus not identified on Schedule C,
when taken together with the Disclosure Package, did not, and at the Closing Date will not,
contain any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The foregoing three sentences do not apply to statements in or
omissions from any Issuer Free Writing Prospectus based upon and in conformity with written
information furnished to the Company by any Underwriter through the Representative
specifically for use therein, it being understood and agreed that the only such information
furnished by any Underwriter consists of the information described as such in Section 7(b)
hereof.
(g) Distribution of Offering Material by the Company and the Guarantors. Neither
the Company nor any Guarantor has distributed or will distribute, prior to the later of the
Closing Date and the completion of the Underwriters’ distribution of the Securities, any
offering material in connection with the offering and sale of the Securities other than the
Preliminary Prospectus, the Prospectus and any Issuer Free Writing Prospectus reviewed and
consented to by the Representative.
(h) No Applicable Registration or Other Similar Rights. There are no persons with
registration or other similar rights to have any equity or debt securities registered
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for sale under the Registration Statement or included in the offering
contemplated by this Agreement, except for such rights as have been duly waived.
(i) The Underwriting Agreement. This Agreement has been duly authorized, executed
and delivered by the Company and the Guarantors and is a valid and binding agreement of the
Company and the Guarantors.
(j) The DTC Agreement. The DTC Agreement has been duly authorized, executed and
delivered by, and constitutes a valid and binding agreement of, the Company, enforceable in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles.
(k) Authorization of the Notes and the Guarantees. The Notes to be purchased by
the Underwriters from the Company will on the Closing Date be in the form contemplated by
the Indenture, have been duly authorized for issuance and sale pursuant to this Agreement
and the Indenture and, at the Closing Date, will have been duly executed by the Company and,
when authenticated in the manner provided for in the Indenture and delivered against payment
of the purchase price therefor, will constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, except as the
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws relating to or affecting the rights and remedies of creditors or by
general equitable principles and will be entitled to the benefits of the Indenture. The
Guarantees of the Notes on the Closing Date will be in the respective forms contemplated by
the Indenture and have been duly authorized pursuant to this Agreement and the Indenture;
the Guarantees of the Notes, at the Closing Date, will have been duly executed by each of
the Guarantors and, when the Notes have been authenticated in the manner provided for in the
Indenture and issued and delivered against payment of the purchase price therefor, the
Guarantees of the Notes will constitute valid and binding agreements of the Guarantors;
enforceable against the Guarantors in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles and will be entitled to the benefits of the Indenture.
(l) Authorization of the Indenture. The Indenture has been duly authorized by the
Company and the Guarantors and, at the Closing Date, will have been duly executed and
delivered by the Company and the Guarantors and will constitute a valid and binding
agreement of the Company and the Guarantors, enforceable against the Company and the
Guarantors in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles.
(m) Description of the Securities and the Indenture. The Securities and the
Indenture will conform in all material respects to the respective statements relating there
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to
contained in the Disclosure Package and the Prospectus under the captions
“Description of the Notes” and “Description of Debt Securities and Guarantees.”
(n) No Material Adverse Change. Except as otherwise disclosed in the Disclosure
Package and the Prospectus (exclusive of any amendment or supplement thereto), subsequent to
the respective dates as of which information is given in the Prospectus (exclusive of any
amendment or supplement thereto), (i) there has been no material adverse change, or any
development that could reasonably be expected to result in a material adverse change, in the
financial condition, or in the earnings, business or operations, whether or not arising from
transactions in the ordinary course of business, of the Parent Guarantor and its
subsidiaries, considered as one entity (any such change is called a “Material Adverse
Change”); (ii) the Parent Guarantor and its subsidiaries, considered as one entity, have not
incurred any material liability or obligation, indirect, direct or contingent, not in the
ordinary course of business nor entered into any material transaction or agreement not in
the ordinary course of business; and (iii) there has been no dividend or distribution of any
kind declared, paid or made by the Parent Guarantor or, except for dividends paid to the
Parent Guarantor or any of its other subsidiaries, by any of its subsidiaries on any class
of capital stock or repurchase or redemption by the Parent Guarantor or any of its
subsidiaries of any class of capital stock.
(o) Independent Accountants. KPMG LLP, which expressed its opinion with respect to
the consolidated financial statements (which term as used in this Agreement includes the
related notes thereto) included in the December 31, 2010 Annual Report on Form 10-K of the
Parent Guarantor filed with the Commission and incorporated by reference in the Registration
Statement, the Disclosure Package and the Prospectus, is an independent registered public
accounting firm within the meaning of the Securities Act, the Exchange Act and the rules of
the Public Company Accounting Oversight Board, and any non-audit services provided by KPMG
LLP or any KPMG non-U.S. member firm affiliate to the Parent Guarantor or any of its
subsidiaries have been approved by the Audit Committee of the Board of Directors of the
Parent Guarantor.
(p) Preparation of the Financial Statements. The consolidated financial statements
of the Parent Guarantor, together with the related schedules and notes, filed with the
Commission as part of or incorporated by reference in the Registration Statement and
included or incorporated by reference in the Disclosure Package and the Prospectus present
fairly the consolidated financial position of the entities to which they relate as of and at
the dates indicated and the results of their operations and cash flows for the periods
specified. Such consolidated financial statements have been prepared in conformity with
generally accepted accounting principles as applied in the United States (“GAAP”) applied on
a consistent basis throughout the periods involved, except as may be expressly stated in the
related notes thereto. The financial data set forth in the Disclosure Package and the
Prospectus under the caption “Capitalization” presents fairly the information set forth
therein on a basis consistent with that of the audited financial statements contained in the
Registration Statement, except that any non-GAAP financial measures included under such
captions have not been presented in accordance with GAAP. The statistical and
market-related data and forward-looking statements included in the Disclosure Package and
the Prospectus are based on or derived from sources that
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the Company believes to be reliable and accurate in all material respects and represent
their good faith estimates that are made on the basis of data derived from such sources.
(q) Incorporation and Good Standing of the Company and the Guarantors. Each of the
Company and the Guarantors has been duly incorporated or formed, as applicable, and is
validly existing as a corporation, limited partnership or limited liability company, as
applicable, in good standing under the laws of the jurisdiction of its incorporation or
formation, as applicable, and has corporate, partnership or limited liability company, as
applicable, power and authority to own, lease and operate its properties and to conduct its
business as described in the Disclosure Package and the Prospectus and to enter into and
perform its obligations under each of this Agreement, the DTC Agreement, the Securities and
the Indenture, as applicable. Each of the Company and the Guarantors is duly qualified as a
foreign corporation, limited partnership or limited liability company, as applicable, to
transact business and is in good standing or equivalent status 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 for such jurisdictions where the failure to so qualify or to
be in good standing would not, individually or in the aggregate, result in a Material
Adverse Change. All of the issued and outstanding capital stock or other ownership interest
of each of the Company and the Guarantors (other than the Parent Guarantor) has been duly
authorized and validly issued, is fully paid and nonassessable and is owned by the Parent
Guarantor, directly or through subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance or claim, except as disclosed in the Disclosure Package
and the Prospectus. Except as set forth on Schedule B-2, the Parent Guarantor does not own
or control, directly or indirectly, any corporation, association or other entity that would
be required to be listed in Exhibit 21 to an Annual Report on Form 10-K of the Parent
Guarantor, other than those listed in Exhibit 21.1 to the Parent Guarantor’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2010.
(r) Capitalization and Other Capital Stock Matters. At March 31, 2011, on a
consolidated basis, after giving pro forma effect to the issuance and sale of the Securities
pursuant hereto, the Parent Guarantor would have an authorized and outstanding
capitalization as set forth in the Disclosure Package and Prospectus under the caption
“Capitalization” (other than for subsequent issuances of capital stock, if any, pursuant to
employee benefit plans described in the Disclosure Package and the Prospectus or upon
exercise of outstanding options or warrants described in the Disclosure Package and the
Prospectus). All of the outstanding shares of Series A common stock of the Parent Guarantor
(the “Common Stock”) have been duly authorized and validly issued, are fully paid and
nonassessable and have been issued in compliance with federal and state securities laws.
None of the outstanding shares of Common Stock were issued in violation of any preemptive
rights, rights of first refusal or other similar rights to subscribe for or purchase
securities of the Parent Guarantor.
(s) Non-Contravention of Existing Instruments; No Further Authorizations or
Approvals Required. Neither the Parent Guarantor nor any of its subsidiaries is (i) in
violation of its charter, bylaws or other constitutive document or (ii) in default (or, with
the giving of notice or lapse of time, would be in default) (“Default”) under any in-
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denture, mortgage, loan or credit agreement, note, contract, franchise, lease or other
instrument to which the Parent Guarantor or any of its subsidiaries is a party or by which
it or any of them may be bound (including, without limitation, that certain Amended and
Restated Credit Agreement, dated as of September 29, 2010, among Celanese Corporation,
Celanese US Holdings LLC, the subsidiaries of Celanese US Holdings LLC from time to time
party thereto as borrowers and guarantors, Deutsche Bank AG, New York Branch, as
administrative agent and collateral agent, Deutsche Bank Securities LLC and Banc of
Americas Securities LLC as joint lead arrangers and joint book runners, HSBC Securities
(USA) Inc., JPMorgan Chase Bank, N.A., and The Royal Bank of Scotland PLC, as
Co-Documentation Agents, the other lenders party thereto, and certain other agents for such
lenders, or to which any of the property or assets of the Parent Guarantor or any of its
subsidiaries is subject (each, an “Existing Instrument”), except, in the case of clause (ii)
above, for such Defaults as would not, individually or in the aggregate, result in a
Material Adverse Change. The execution, delivery and performance of this Agreement, the DTC
Agreement and the Indenture by the Company and the Guarantors, as applicable, and the
issuance and delivery of the Securities, and consummation of the transactions contemplated
hereby and thereby and by the Disclosure Package and the Prospectus (i) have been duly
authorized by all necessary corporate action and will not result in any violation of the
provisions of the charter, bylaws or other constitutive document of the Company or any
Guarantor, (ii) will not conflict with or constitute a breach of, or Default or a Debt
Repayment Triggering Event (as defined below) under, or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of the Parent Guarantor or
any of its subsidiaries pursuant to, or require the consent of any other party to, any
Existing Instrument, except for such conflicts, breaches, Defaults, liens, charges or
encumbrances as would not, individually or in the aggregate, result in a Material Adverse
Change and (iii) will not result in any violation of any law, administrative regulation or
administrative or court decree applicable to the Parent Guarantor or any subsidiary, except
for such violations as would not, individually or in the aggregate, result in a Material
Adverse Change. No consent, approval, authorization or other order of, or registration or
filing with, any court or other governmental or regulatory authority or agency is required
for the execution, delivery and performance of this Agreement, the DTC Agreement or the
Indenture by the Company and the Guarantors, or the issuance and delivery of the Securities,
or consummation of the transactions contemplated hereby and thereby and by the Disclosure
Package and the Prospectus, except such as have been obtained or made by the Company and are
in full force and effect under the Securities Act, applicable securities laws of the several
states of the United States or provinces of Canada. As used herein, a “Debt Repayment
Triggering Event” means any event or condition which gives, or with the giving of notice or
lapse of time would give, 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 Parent
Guarantor or any of its subsidiaries.
(t) No Material Actions or Proceedings. Except as otherwise disclosed in the
Disclosure Package and the Prospectus, there are no legal or governmental actions, suits or
proceedings pending or, to the best of the Company’s knowledge, threatened (i) against or
affecting the Parent Guarantor or any of its subsidiaries or (ii) which has as the
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subject thereof any property owned or leased by, the Parent Guarantor or any of its
subsidiaries and that, with respect to any such action, suit or proceeding, if determined
adversely to the Parent Guarantor or such subsidiary, would result in a Material Adverse
Change or adversely affect the consummation of the transactions contemplated by this
Agreement.
(u) Intellectual Property Rights. To the knowledge of the Parent Guarantor, the
Parent Guarantor and its subsidiaries own or possess sufficient trademarks, trade names,
patent rights, copyrights, trade secrets, licenses of the foregoing and other similar rights
(collectively, “Intellectual Property Rights”) reasonably necessary to conduct their
businesses as now conducted; and the expected expiration of any of such Intellectual
Property Rights would not result in a Material Adverse Change. Neither the Parent Guarantor
nor any of its subsidiaries has received any notice of infringement or conflict with
asserted Intellectual Property Rights of others (other than any such notice received more
than one year before the date hereof with respect to which no action has been taken during
such one (1) year period to the Parent Guarantor’s knowledge), which infringement or
conflict, if the subject of an unfavorable decision, would result in a Material Adverse
Change.
(v) All Necessary Permits, etc. Except as would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Change, (i) the Parent
Guarantor and each of its subsidiaries possess such valid and current certificates,
authorizations or permits issued by the appropriate state, federal or foreign regulatory
agencies or bodies necessary to own, lease and operate its properties and to conduct their
respective businesses as described in the Disclosure Package and the Prospectus, and (ii)
neither the Parent Guarantor nor any subsidiary has received any notice of proceedings
relating to the revocation or modification of, or non-compliance with, any such certificate,
authorization or permit.
(w) Title to Properties. Except as otherwise disclosed in the Disclosure Package
and the Prospectus, the Parent Guarantor and each of its subsidiaries has good and
marketable title to all the properties and assets reflected as owned in the financial
statements referred to in Section 1(p) hereof (except for any leased properties or assets
classified as owned in accordance with GAAP), in each case free and clear of any security
interests, mortgages, liens, encumbrances, equities, claims and other defects, except as
disclosed in the Disclosure Package and the Prospectus and except such as do not materially
and adversely affect the value of such property and do not materially interfere with the use
made of such property by the Parent Guarantor or such subsidiary. The real property,
improvements, equipment and personal property held under lease by the Parent Guarantor or
any subsidiary are held under valid and enforceable leases, with such exceptions as are not
material and do not materially interfere with the use made of such real property,
improvements, equipment or personal property by the Parent Guarantor or such subsidiary.
(x) Tax Law Compliance. Except as would not, individually or in the aggregate,
result in a Material Adverse Change, (i) the Parent Guarantor and each of its consolidated
subsidiaries has filed all federal, state, provincial, local and foreign tax returns
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required to be filed and has paid all taxes (including taxes payable in the capacity of
a withholding agent) required to be paid by it and, if due and payable, any related or
similar assessment, fine or penalty levied against it except as may be being contested in
good faith and by appropriate proceedings, (ii) the Parent Guarantor has made charges,
accruals and reserves in accordance with GAAP in the applicable financial statements
referred to in Section 1(p) hereof in respect of all taxes for all periods as to which the
tax liability of the Parent Guarantor or any of its consolidated subsidiaries has not been
finally determined and (iii) there is no deficiency, assessment or other claim made in
writing that is due and payable by the Parent Guarantor or any of its consolidated
subsidiaries.
(y) Investment Company Act of 1940, as Amended. Neither the Company nor any
Guarantor is required, and upon the issuance and sale of the Securities as herein
contemplated and the application of the net proceeds therefrom as described in the
Preliminary Prospectus and the Prospectus will not be required, to register as an
“investment company” under the Investment Company Act of 1940, as amended.
(z) Insurance. Each of the Parent Guarantor and its subsidiaries are insured with
policies in such amounts and with such deductibles and covering such risks as are generally
deemed adequate and customary for their businesses. The Parent Guarantor has no reason to
believe that it or any subsidiary will not be able (i) to renew its material existing
insurance coverage as and when such policies expire or (ii) to obtain comparable coverage
from similar institutions as may be necessary or appropriate to conduct its business as now
conducted and at a cost that would not result in a Material Adverse Change. Neither the
Parent Guarantor nor any subsidiary has been denied any material insurance coverage which it
has sought or for which it has applied.
(aa) No Price Stabilization or Manipulation. None of the Company or any of the
Guarantors has taken or will take, directly or indirectly, any action designed to or that
might be reasonably expected to cause or result in stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Securities.
(bb) Solvency. The Parent Guarantor and its subsidiaries on a consolidated basis
are, and immediately after the Closing Date will be, Solvent. As used herein, the term
“Solvent” means, with respect to any person on a particular date, that on such date (i) the
fair market value of the assets of such person is greater than the total amount of
liabilities (including contingent liabilities) of such person, (ii) the present fair salable
value of the assets of such person is greater than the amount that will be required to pay
the probable liabilities of such person on its debts as they become absolute and matured,
(iii) such person is able to realize upon its assets and pay its debts and other
liabilities, including contingent obligations, as they mature and (iv) such person does not
have unreasonably small capital.
(cc) Compliance with Xxxxxxxx-Xxxxx. The Parent Guarantor and its subsidiaries are
in compliance in all material respects with the applicable provisions of the Xxxxxxxx-Xxxxx
Act of 2002 (the “Xxxxxxxx-Xxxxx Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder).
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(dd) The Parent Guarantor’s Accounting System. The Parent Guarantor and its
subsidiaries maintain accounting controls that are designed to provide reasonable assurances
that: (i) transactions are executed in accordance with management’s general or specific
authorization; (ii) transactions are recorded as necessary to permit preparation of
consolidated financial statements in conformity with GAAP and to maintain accountability for
assets; (iii) access to assets is permitted only in accordance with management’s general or
specific authorization; and (iv) the recorded accountability for assets is compared with
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.
(ee) Disclosure Controls and Procedures. The Parent Guarantor has established and
maintains disclosure controls and procedures (as such term is defined in Rules 13a-15 and
15d-15 under the Exchange Act); such disclosure controls and procedures are designed to
ensure that material information relating to the Parent Guarantor and its subsidiaries is
made known to the chief executive officer and chief financial officer of the Parent
Guarantor by others within the Parent Guarantor or any of its subsidiaries.
(ff) Regulations T, U, X. Neither the Company nor any Guarantor nor any of their
respective subsidiaries nor any agent thereof acting on their behalf has taken, and none of
them will take, any action that might cause this Agreement or the issuance or sale of the
Securities to violate Regulation T, Regulation U or Regulation X of the Board of Governors
of the Federal Reserve System.
(gg) Compliance with and Liability under Environmental Laws. Except as otherwise
disclosed in the Disclosure Package and the Prospectus, or except as would not, individually
or in the aggregate, reasonably be expected to result in a Material Adverse Change: (i)
each of the Parent Guarantor and its subsidiaries and their respective operations and
facilities are in compliance with, and not subject to any known liabilities under,
applicable Environmental Laws, which compliance includes, without limitation, having
obtained and being in compliance with any permits, licenses or other governmental
authorizations or approvals, and having made all filings and provided all financial
assurances and notices, required for the ownership and operation of the business, properties
and facilities of the Parent Guarantor or its subsidiaries under applicable Environmental
Laws; (ii) neither the Parent Guarantor nor any of its subsidiaries has received any written
communication, whether from a governmental authority, citizens group, employee or otherwise,
that alleges that the Parent Guarantor or any of its subsidiaries is in violation of any
Environmental Law; (iii) there is no claim, action or cause of action filed with a court or
governmental authority, no investigation with respect to which the Parent Guarantor has
received written notice, and no written notice by any person or entity alleging actual or
potential liability on the part of the Parent Guarantor or any of its subsidiaries based on
or pursuant to any Environmental Law pending or, to the best of the Parent Guarantor’s
knowledge, threatened against the Parent Guarantor or any of its subsidiaries or any person
or entity whose liability under or pursuant to any Environmental Law the Parent Guarantor or
any of its subsidiaries has retained or assumed either contractually or by operation of law;
(iv) neither the Parent Guarantor nor any of its subsidiaries is conducting or paying for,
in whole or in part, any investigation, response or other corrective action pursuant to any
Environmental Law at any site or facility, nor is any of them subject
11
or a party to any order, judgment, decree, contract or agreement which imposes any
obligation or liability under any Environmental Law; (v) no lien, charge, encumbrance or
restriction has been recorded pursuant to any Environmental Law with respect to any assets,
facility or property owned, operated or leased by the Parent Guarantor or any of its
subsidiaries; and (vi) to the best of Parent Guarantor’s knowledge, there are no past or
present actions, activities, circumstances, conditions or occurrences, including, without
limitation, the Release or threatened Release of any Hazardous Material, that could
reasonably be expected to result in a violation of or liability under any Environmental Law
on the part of the Parent Guarantor or any of its subsidiaries, including without
limitation, any such liability which the Parent Guarantor or any of its subsidiaries has
retained or assumed either contractually or by operation of law.
For purposes of this Agreement, “Environment” means ambient air, indoor air, surface
water, groundwater, drinking water, soil, surface and subsurface strata, and natural
resources such as wetlands, flora and fauna. “Environmental Laws” means the common law and
all federal, state, local and foreign laws or regulations, ordinances, codes, orders,
decrees, judgments and injunctions issued, promulgated or entered thereunder, relating to
pollution or protection of the Environment or human health, including without limitation,
those relating to (i) the Release or threatened Release of Hazardous Materials; and (ii) the
manufacture, processing, distribution, use, generation, treatment, storage, transport,
handling or recycling of Hazardous Materials. “Hazardous Materials” means any substance,
material, chemical, waste, compound, or constituent, in any form, including without
limitation, petroleum and petroleum products, defined or regulated under any Environmental
Law as hazardous or toxic. “Release” means any release, spill, emission, discharge,
deposit, disposal, leak, pumping, pouring, dumping, emptying, injection or leaching into the
Environment, or into, from or through any building, structure or facility of Hazardous
Materials.
(hh) ERISA Compliance. Except as would not, individually or in the aggregate,
result in a Material Adverse Change, the Parent Guarantor and its subsidiaries and any
“employee benefit plan” (as defined under the Employee Retirement Income Security Act of
1974 (as amended, “ERISA,” which term, as used herein, includes the regulations and
published interpretations thereunder) established or maintained by the Parent Guarantor, its
subsidiaries or their ERISA Affiliates (as defined below) are in compliance with ERISA.
“ERISA Affiliate” means, with respect to the Parent Guarantor or a subsidiary, any member of
any group of organizations described in Section 414 of the Internal Revenue Code of 1986 (as
amended, the “Code,” which term, as used herein, includes the regulations and published
interpretations thereunder) of which the Parent Guarantor or such subsidiary is a member.
Except as would not, individually or in the aggregate, result in a Material Adverse Change,
no “reportable event” (as defined under ERISA) has occurred or is reasonably expected to
occur with respect to any “employee benefit plan” established or maintained by the Parent
Guarantor, its subsidiaries or any of their ERISA Affiliates. Neither the Parent Guarantor,
its subsidiaries nor any of their ERISA Affiliates has incurred or reasonably expects to
incur any material liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975 or 4980B of
the Code. Except as would not, individually or in the aggregate, result in a Material
Adverse Change, each “employee benefit plan”
12
established or maintained by the Parent Guarantor, its subsidiaries or any of their
ERISA Affiliates that is intended to be qualified under Section 401 of the Code is so
qualified and nothing has occurred, whether by action or failure to act, which would cause
the loss of such qualification.
(ii) Compliance with Labor Laws. Except as would not, individually or in the
aggregate, result in a Material Adverse Change, (i) there is (A) no unfair labor practice
complaint pending or, to the best of the Parent Guarantor’s knowledge, threatened against
the Parent Guarantor or any of its subsidiaries before the National Labor Relations Board,
and no grievance or arbitration proceeding arising out of or under collective bargaining
agreements pending, or to the best of the Parent Guarantor’s knowledge, threatened, against
the Parent Guarantor or any of its subsidiaries, (B) no strike, labor dispute, slowdown or
stoppage pending or, to the best of the Parent Guarantor’s knowledge, threatened against the
Parent Guarantor or any of its subsidiaries and (C) no union representation question
existing with respect to the employees of the Parent Guarantor or any of its subsidiaries
and, to the best of the Parent Guarantor’s knowledge, no union organizing activities taking
place and (ii) there has been no violation of any federal, state or local law relating to
discrimination in hiring, promotion or pay of employees or of any applicable wage or hour
laws.
(jj) No Unlawful Contributions or Other Payments. Neither the Parent Guarantor nor
any of its subsidiaries nor, to the knowledge of the Parent Guarantor, any director,
officer, agent, employee or affiliate of the Parent Guarantor or any of its subsidiaries is
aware of or has taken any action, directly or indirectly, that would result in a violation
by such persons of the FCPA, including, without limitation, making use of the mails or any
means or instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other property,
gift, promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA and the
Parent Guarantor, its subsidiaries and, to the knowledge of the Parent Guarantor, its
affiliates have conducted their businesses in compliance with the FCPA and have instituted
and maintain policies and procedures designed to ensure, and which are reasonably expected
to continue to ensure, continued compliance therewith.
”FCPA” means Foreign Corrupt Practices Act of 1977, as amended, and the rules and
regulations thereunder.
(kk) No Conflict with Money Laundering Laws. The operations of the Parent
Guarantor and its subsidiaries are and have been conducted at all times in compliance with
applicable financial recordkeeping 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 governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before
any court or governmental agency, authority or body or any arbitrator involving
13
the Parent
Guarantor or any of its subsidiaries with respect to the Money
Laundering Laws is pending or, to the best knowledge of the Parent Guarantor,
threatened.
(ll) No Conflict with OFAC Laws. Neither the Parent Guarantor nor any of its
subsidiaries nor, to the knowledge of the Parent Guarantor, any director, officer, agent,
employee or affiliate of the Parent Guarantor 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. Treasury Department (“OFAC”); and the Parent Guarantor will not directly or indirectly
use the proceeds of the offering, 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.
Any certificate signed by an officer of the Company or any Guarantor and delivered to the
Underwriters or to counsel for the Underwriters shall be deemed to be a representation and warranty
by the Company or such Guarantor to each Underwriter as to the matters set forth therein.
SECTION 2. Purchase, Sale and Delivery of the Securities.
(a) The Securities. Each of the Company and the Guarantors agrees to issue and sell to
the Underwriters, severally and not jointly, all of the Securities, and, subject to the conditions
set forth herein, the Underwriters agree, severally and not jointly, to purchase from the Company
and the Guarantors the aggregate principal amount of Securities set forth opposite their names on
Schedule A, at a purchase price of 98.250% of the principal amount thereof payable on the Closing
Date, in each case, on the basis of the representations, warranties and agreements herein
contained, and upon the terms herein set forth.
(b) The Closing Date. Delivery of certificates for the Notes in global form to be
purchased by the Underwriters and payment therefor shall be made at the offices of Xxxxxx Xxxxxx &
Xxxxxxx llp, 00 Xxxx Xxxxxx, Xxx Xxxx, XX 00000 (or such other place as may be agreed to
by the Company and MLPF&S) at 9:00 a.m. New York City time, on May 6, 2011, or such other time and
date as MLPF&S shall designate by notice to the Company (the time and date of such closing are
called the “Closing Date”).
(c) Public Offering of the Notes. The Representative hereby advises the Company that the
Underwriters intend to offer for sale to the public, as described in the Disclosure Package and the
Prospectus, their respective portions of the Notes as soon after this Agreement has been executed
the Representative, in its sole judgment, has determined is advisable and practicable.
(d) Payment for the Notes. Payment for the Notes shall be made on the Closing Date by
wire transfer of immediately available funds to the order of the Company.
It is understood that the Representative has been authorized, for its own account and the
accounts of the several Underwriters, to accept delivery of and receipt for, and make payment of
the purchase price for, the Notes. MLPF&S, individually and not as the Representative of the
Underwriters, may (but shall not be obligated to) make payment for any Notes to be purchased
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by any Underwriter whose funds shall not have been received by the Representative by the
Closing Date for the account of such Underwriter, but any such payment shall not relieve such
Underwriter from any of its obligations under this Agreement.
(e) Delivery of the Securities. The Company shall deliver, or cause to be delivered, to
MLPF&S for the accounts of the several Underwriters certificates for the Notes at the Closing Date
against the irrevocable release of a wire transfer of immediately available funds for the amount of
the purchase price therefor. The certificates for the Notes shall be in such denominations and
registered in the name of Cede & Co., as nominee of the Depositary, pursuant to the DTC Agreement,
and shall be made available for inspection on the business day preceding the Closing Date at a
location in New York City, as MLPF&S may designate. Time shall be of the essence, and delivery at
the time and place specified in this Agreement is a further condition to the obligations of the
Underwriters.
(f) Delivery of Prospectus to the Underwriters. Not later than 10:00 a.m. on the second
business day following the date the Notes are first released by the Underwriters for sale to the
public, the Company shall deliver or cause to be delivered, copies of the Prospectus in such
quantities and at such places as the Representative shall reasonably request.
SECTION 3. Additional Covenants. Each of the Company and the Guarantors, jointly and
severally, further covenants and agrees with each Underwriter as follows:
(a) Representative Review of Proposed Amendments and Supplements. During the
period beginning at the Applicable Time and ending on the later of the Closing Date or such
date, as in the opinion of counsel for the Underwriters, the Prospectus is no longer
required by law to be delivered in connection with sales by an Underwriter or dealer,
including in circumstances where such requirement may be satisfied pursuant to Rule 172 (the
“Prospectus Delivery Period”), prior to amending or supplementing the Registration
Statement, the Disclosure Package or the Prospectus, the Company shall furnish to the
Representative for review a copy of each such proposed amendment or supplement.
(b) Securities Act Compliance. After the date of this Agreement and during the
Prospectus Delivery Period, the Company shall promptly advise the Representative in writing
(i) when the Registration Statement, if not effective at the Applicable Time, shall have
become effective, (ii) of the receipt of any comments of, or requests for additional or
supplemental information from, the Commission, (iii) of the time and date of any filing of
any post-effective amendment to the Registration Statement or any amendment or supplement to
any Preliminary Prospectus or the Prospectus, (iv) of the time and date that any
post-effective amendment to the Registration Statement becomes effective, and (v) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of any order or notice preventing or suspending the use of the
Registration Statement, any Preliminary Prospectus or the Prospectus, or of any receipt by
the Company of any notification with respect to the suspension of the qualification of the
Notes for sale in any jurisdiction or of the threatening or initiation of any proceedings
for any of such purposes (including any notice or order pursuant to Section 8A or Rule
401(g)(2) of the Securities Act). The Company shall use commercially reasonable efforts
15
to prevent the issuance of any such stop order or notice of prevention or suspension of
such use. If the Commission shall enter any such stop order or issue any such notice at any
time, the Company will use commercially reasonable efforts to obtain the lifting or reversal
of such order or notice at the earliest possible moment, or, subject to Section 3(a), will
file an amendment to the Registration Statement or will file a new registration statement
and use its best efforts to have such amendment or new registration statement declared
effective as soon as practicable. Additionally, the Company agrees that it shall comply
with the provisions of Rules 424(b) and 430B, as applicable, under the Securities Act,
including with respect to the timely filing of documents thereunder, and will use
commercially reasonable efforts to confirm that any filings made by the Company under such
Rule 424(b) were received in a timely manner by the Commission.
(c) Exchange Act Compliance. During the Prospectus Delivery Period, the Company
will file all documents required to be filed with the Commission and the New York Stock
Exchange (“NYSE”) pursuant to Section 13, 14 or 15 of the Exchange Act in the manner and
within the time periods required by the Exchange Act.
(d) Final Term Sheet. The Company will prepare a final term sheet in a form
approved by the Representative, and will file such term sheet pursuant to Rule 433(d) under
the Securities Act within the time required by such rule (such term sheet, the “Final Term
Sheet”).
(e) Permitted Free Writing Prospectuses. The Company represents that it has not
made, and agrees that, unless it obtains the prior written consent of the Representative, it
will not make, any offer relating to the Notes that constitutes or would constitute an
Issuer Free Writing Prospectus or that otherwise constitutes or would constitute a “free
writing prospectus” (as defined in Rule 405 of the Securities Act) or a portion thereof
required to be filed by the Company with the Commission or retained by the Company under
Rule 433 of the Securities Act; provided that the prior written consent of the
Representative hereto shall be deemed to have been given in respect of the Free Writing
Prospectuses included in Schedule C hereto and any electronic road show. Any such free
writing prospectus consented to by the Representative is hereinafter referred to as a
“Permitted Free Writing Prospectus.” The Company agrees that (i) it has treated and will
treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing
Prospectus, and (ii) has complied and will comply, as the case may be, with the requirements
of Rules 164 and 433 of the Securities Act applicable to any Permitted Free Writing
Prospectus, including in respect of timely filing with the Commission, legending and record
keeping. The Company consents to the use by any Underwriter of a free writing prospectus
that (a) is not an “issuer free writing prospectus” as defined in Rule 433, or (b) contains
only (1) information describing the preliminary terms of the Securities or their offering,
(2) information that describes the final terms of the Securities or their offering and that
is included in the Final Term Sheet of the Company contemplated in Section 1(d) or (3)
information permitted under Rule 134 under the Securities Act; provided that each
Underwriter severally covenants with the Company not to take any action without the
Company’s consent which consent shall be confirmed in writing that would result in the
Company being required to file with the Commission under Rule 433(d) under the Securities
Act a free writing prospectus prepared by or on behalf of such Underwriter that
16
otherwise would not be required to be filed by the Company thereunder, but for the
action of the Underwriter.
(f) Amendments and Supplements to the Registration Statement, Disclosure Package
and Prospectus and Other Securities Act Matters. If at any time during the Prospectus
Delivery Period, (i) any event shall occur or condition shall exist as a result of which any
of the Disclosure Package or the Prospectus as then amended or supplemented would 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 or (ii) it is necessary to amend or supplement any of the
Registration Statement, Disclosure Package or the Prospectus to comply with law, the Company
and the Guarantors will immediately notify the Underwriters thereof and forthwith prepare
(subject to Section 3(a) hereof), file with the Commission (and use its commercially
reasonable efforts to have any amendment to the Registration Statement or any new
registration statement to be declared effective) furnish at its own expense to the
Underwriters such amendments or supplements to any of the Registration Statement, Disclosure
Package or the Prospectus, or any new registration statement, as may be necessary so that
the statements in any of the Disclosure Package or Prospectus as so amended or supplemented
will not, in the light of the circumstances under which they were made, be misleading or so
that any of the Registration Statement, Disclosure Package or Prospectus will comply with
all applicable law.
(g) Copies of the Prospectus. The Company agrees to furnish the Underwriters,
without charge, as many copies of the Prospectus and any amendments and supplements thereto
(including any documents incorporated or deemed incorporated by reference therein) and the
Disclosure Package as the Representative may request.
(h) Blue Sky Compliance. Each of the Company and the Guarantors shall cooperate
with the Representative and counsel for the Underwriters to qualify or register (or to
obtain exemptions from qualifying or registering) all or any part of the Securities for
offer and sale under the securities laws of the several states of the United States, the
provinces of Canada or any other jurisdictions designated by the Representative, shall
comply with such laws and shall continue such qualifications, registrations and exemptions
in effect so long as required for the distribution of the Securities. None of the Company
or any of the Guarantors shall be required to qualify as a foreign corporation or to take
any action that would subject it to general service of process in any such jurisdiction
where it is not presently qualified or where it would be subject to taxation as a foreign
corporation. The Company will advise the Representative promptly of the suspension of the
qualification or registration of (or any such exemption relating to) the Securities for
offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding
for any such purpose, and in the event of the issuance of any order suspending such
qualification, registration or exemption, each of the Company and the Guarantors shall use
its best efforts to obtain the withdrawal thereof at the earliest possible moment.
(i) Use of Proceeds. The Company shall apply the net proceeds from the sale of the
Securities sold by it in the manner described under the caption “Use of Proceeds” in the
Disclosure Package and the Prospectus.
17
(j) The Depositary. The Company will cooperate with the Underwriters and use its
best efforts to permit the Securities to be eligible for clearance and settlement through
the facilities of the Depositary.
(k) Filing Fees. The Company agrees to pay the required Commission filing fees
relating to the Securities within the time required by Rule 456(b)(1) of the Securities Act
without regard to the proviso therein and otherwise in accordance with Rules 456(b) and
457(r) of the Securities Act.
(l) Future Reports to the Representative. During the period of two years hereafter
the Company will furnish to the Representative (i) to the extent not available on the
Commission’s Next-Generation XXXXX filing system, as soon as practicable after the end of
each fiscal year, copies of the Annual Report of the Company containing the balance sheet of
the Company as of the close of such fiscal year and statements of income, stockholders’
equity and cash flows for the year then ended and the opinion thereon of the Company’s
independent public or certified public accountants; and (ii) to the extent not available on
the Commission’s Next-Generation XXXXX filing system, as soon as practicable after the
filing thereof, copies of each proxy statement, Annual Report on Form 10-K, Quarterly Report
on Form 10-Q, Current Report on Form 8-K or other report filed by the Company with the
Commission, the Financial Industry Regulatory Authority, Inc. (“FINRA”) or any securities
exchange.
(m) No Manipulation of Price. Neither the Company nor any Guarantor will take,
directly or indirectly, any action designed to cause or result in, or that has constituted
or might reasonably be expected to constitute, under the Exchange Act or otherwise, the
stabilization or manipulation of the price of any securities of the Company to facilitate
the sale or resale of the Securities.
(n) Notice of Inability to Use Automatic Shelf Registration Statement Form. If at
any time during the Prospectus Delivery Period, the Company receives from the Commission a
notice pursuant to Rule 401(g)(2) or otherwise ceases to be eligible to use the automatic
shelf registration statement form, the Company will (i) promptly notify the Representative,
(ii) promptly file a new registration statement or post-effective amendment on the proper
form relating to the Notes, in a form satisfactory to the Representative, (iii) use its best
efforts to cause such registration statement or post-effective amendment to be declared
effective and (iv) promptly notify the Representative of such effectiveness. The Company
will take all other action necessary or appropriate to permit the public offering and sale
of the Notes to continue during the Prospectus Delivery Period as contemplated in the
registration statement that was the subject of the Rule 401(g)(2) notice or for which the
Company has otherwise become ineligible. References herein to the Registration Statement
shall include such new registration statement or post-effective amendment, as the case may
be.
The Representative on behalf of the several Underwriters, may, in its sole discretion, waive
in writing the performance by the Company or any Guarantor of any one or more of the foregoing
covenants or extend the time for their performance.
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SECTION 4. Payment of Expenses. Each of the Company and the Guarantors, jointly and
severally, agrees to pay all costs, fees and expenses incurred in connection with the performance
of its obligations hereunder and in connection with the transactions contemplated hereby,
including, without limitation, (i) all expenses incident to the issuance and delivery of the
Securities (including all printing and engraving costs), (ii) all necessary issue, transfer and
other stamp taxes in connection with the issuance and sale of the Securities to the Underwriters,
(iii) all fees and expenses of the Company’s and the Guarantors’ counsel, independent public or
certified public accountants and other advisors, (iv) all costs and expenses incurred in connection
with the preparation, printing, filing, shipping and distribution of the Registration Statement
(including financial statements, exhibits, schedules, consents and certificates of experts), each
Issuer Free Writing Prospectus, each Preliminary Prospectus and the Prospectus, and all amendments
and supplements thereto, and the mailing and delivering of copies thereof to the Underwriters and
dealers, this Agreement, the Indenture, the DTC Agreement and the Securities, (v) all filing fees,
reasonable attorneys’ fees and expenses incurred by the Company, the Guarantors or the Underwriters
in connection with qualifying or registering (or obtaining exemptions from the qualification or
registration of) all or any part of the Securities for offer and sale under the securities laws of
the several states of the United States, the provinces of Canada or other jurisdictions reasonably
designated by the Underwriters (including, without limitation, the cost of preparing, printing and
mailing preliminary and final blue sky or legal investment memoranda) and any related supplements
to the Disclosure Package or the Prospectus, (vi) the fees and expenses of the Trustee, including
the fees and disbursements of counsel for the Trustee in connection with the Indenture and the
Securities, (vii) any fees payable in connection with the rating of the Securities with the ratings
agencies, (viii) any filing fees incident to, and any reasonable fees and disbursements of counsel
to the Underwriters in connection with the review by FINRA, if any, of the terms of the sale of the
Securities, (ix) all fees and expenses (including reasonable fees and expenses of counsel) of the
Company and the Guarantors in connection with approval of the Securities by the Depositary for
“book-entry” transfer, and the performance by the Company and the Guarantors of their respective
other obligations under this Agreement, (x) all expenses incident to the electronic “road show” for
the offering of the Securities, (xi) all other fees, costs and expenses referred to in Item 14 of
Part II of the Registration Statement, and (xii) all other costs and expenses incident to the
performance of their obligations hereunder which are not otherwise specifically provided for in
this Section 4. Except as provided in this Section 4 and Sections 6, 7 and 8 hereof, the
Underwriters shall pay their own expenses, including the fees and disbursements of their counsel.
SECTION 5. Conditions of the Obligations of the Underwriters. The obligations of the
several Underwriters to purchase and pay for the Securities as provided herein on the Closing Date
shall be subject to the accuracy of the representations and warranties on the part of the Company
and the Guarantors set forth in Section 1 hereof as of the date hereof and as of the Closing Date
as though then made and to the timely performance by the Company of its covenants and other
obligations hereunder, and to each of the following additional conditions:
(a) Accountants’ Comfort Letter. On the date hereof, the Underwriters shall have
received from KPMG LLP, the independent registered public accounting firm for the Parent
Guarantor, a “comfort letter” dated the date hereof addressed to the Underwriters, in form
and substance satisfactory to the Representative, covering the financial information in the
Disclosure Package and other customary matters. In addition, on
19
the Closing Date, the Underwriters shall have received from such accountants a
“bring-down comfort letter” dated the Closing Date addressed to the Underwriters, in form
and substance satisfactory to the Representative, in the form of the “comfort letter”
delivered on the date hereof, except that (i) it shall cover the financial information in
the Prospectus and any amendment or supplement thereto and (ii) procedures shall be brought
down to a date no more than 5 days prior to the Closing Date.
(b) Compliance with Registration Requirements; No Stop Order; No Objection from
FINRA. For the period from and after effectiveness of this Agreement and prior to the
Closing Date and, with respect to the Securities:
(i) the Company shall have filed the Prospectus with the Commission
(including the information required by Rules 430A, 430B and 430C under the
Securities Act) in the manner and within the time period required by Rule 424(b)
under the Securities Act;
(ii) the Final Term Sheet, and any other material required to be filed by
the Company pursuant to Rule 433(d) under the Securities Act, shall have been filed
with the Commission within the applicable time periods prescribed for such filings
under such Rule 433;
(iii) no stop order suspending the effectiveness of the Registration
Statement, or any post-effective amendment to the Registration Statement, shall be
in effect and no proceedings for such purpose or pursuant to Section 8A of the
Securities Act shall have been instituted or threatened by the Commission; and the
Company shall not have received from the Commission any notice pursuant to Rule
401(g)(2) of the Securities Act objecting to use of the automatic shelf registration
statement form; and
(c) No Material Adverse Change or Ratings Agency Change. For the period from and
after the date of this Agreement and prior to the Closing Date:
(i) in the judgment of the Representative there shall not have occurred any
Material Adverse Change; and
(ii) there shall not have occurred any downgrading, nor shall any notice
have been given of any intended or potential downgrading in the rating accorded the
Parent Guarantor or any of its subsidiaries or any of their securities or
indebtedness by any “nationally recognized statistical rating organization” as such
term is defined in Section 3(a)(62) of the Exchange Act.
(d) Opinion of Counsel for the Company. On the Closing Date, the Underwriters
shall have received (i) the opinion of Xxxxxx, Xxxx & Xxxxxxxx LLP, counsel for the Company,
dated as of such Closing Date, the form of which is attached as Exhibit A and (ii) the
opinion of Xxxxx X. Xxxxxxx III, Vice President, Deputy General Counsel and Assistant
Corporate Secretary of the Parent Guarantor, dated as of such Closing Date, the form of
which is attached as Exhibit B.
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(e) Opinion of Counsel for the Underwriters. On the Closing Date, the
Underwriters shall have received the favorable opinion of Xxxxxx Xxxxxx & Xxxxxxx
llp, counsel for the Underwriters, dated as of such Closing Date, with respect to
such matters as may be reasonably requested by the Underwriters.
(f) Officers’ Certificate. On the Closing Date the Underwriters shall have received a
written certificate executed by an executive officer and a principal financial or accounting
officer of the Company, dated as of the Closing Date, to the effect set forth in Section
5(c)(ii) hereof, and further to the effect that:
(i) for the period from and after the date of this Agreement and prior to the
Closing Date there has not occurred any Material Adverse Change;
(ii) the representations, warranties and covenants of the Company and the
Guarantors set forth in Section 1 hereof were true and correct as of the date hereof
and are true and correct as of the Closing Date with the same force and effect as
though expressly made on and as of the Closing Date; and
(iii) the Company and the Guarantors have complied with all the agreements and
satisfied all the conditions on its part to be performed or satisfied at or prior to
the Closing Date.
(g) Indenture; Securities. The Company and the Guarantors shall have executed and
delivered the Indenture and the Securities, in form and substance reasonably satisfactory to
the Underwriters, and the Underwriters shall have received executed copies thereof.
(h) Additional Documents. On or before the Closing Date, the Underwriters and counsel
for the Underwriters shall have received such information, documents and opinions as they
may reasonably require for the purposes of enabling them to pass upon the issuance and sale
of the Securities as contemplated herein, or in order to evidence the accuracy of any of the
representations and warranties, or the satisfaction of any of the conditions or agreements,
herein contained.
If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by MLPF&S by notice to the Company at any time on or
prior to the Closing Date, which termination shall be without liability on the part of any party to
any other party, except that Sections 4, 6, 7 and 8 hereof shall at all times be effective and
shall survive such termination.
SECTION 6. Reimbursement of Underwriters’ Expenses. If this Agreement is terminated by the
Representative pursuant to Section 5 or Section 9(i)(x) or (iv) hereof, including if the sale to
the Underwriters of the Securities on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company or any Guarantor to perform any agreement herein or
to comply with any provision hereof, the Company and the Guarantors, jointly and severally, agree
to reimburse the Underwriters, severally, upon demand for all out-of-pocket expenses that shall
have been reasonably incurred by the Underwriters in connection with the proposed purchase and the
offering and sale of the Securities, including, without limitation,
21
fees and disbursements of counsel, printing expenses, travel expenses, postage, facsimile and
telephone charges.
SECTION 7. Indemnification.
(a) Indemnification of the Underwriters. Each of the Company and the Guarantors, jointly and
severally, agrees to indemnify and hold harmless each Underwriter, its affiliates, directors,
officers and employees, and each person, if any, who controls any Underwriter within the meaning of
the Securities Act and the Exchange Act against any loss, claim, damage, liability or expense, as
incurred, to which such Underwriter, affiliate, director, officer, employee or controlling person
may become subject, under the Securities Act, the Exchange Act or other federal or state statutory
law or regulation, or at common law or otherwise (including in settlement of any litigation, if
such settlement is effected with the written consent of the Company), insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or
is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement, or any amendment thereto, including any information deemed to be a part
thereof pursuant to Rule 430B or 430C under the Securities Act, or the omission or alleged omission
therefrom of a material fact required to be stated therein or necessary to make the statements
therein not misleading; or (ii) upon any untrue statement or alleged untrue statement of a material
fact contained in any Issuer Free Writing Prospectus, any Preliminary Prospectus or the Prospectus
(or any amendment or supplement thereto), or the omission or alleged omission therefrom of a
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and to reimburse each Underwriter and each such
affiliate, director, officer, employee or controlling person for any and all expenses (including
the reasonable fees and disbursements of counsel chosen by MLPF&S) as such expenses are reasonably
incurred by such Underwriter or such affiliate, director, officer, employee or controlling person
in connection with investigating, defending, settling, compromising or paying any such loss, claim,
damage, liability, expense or action; provided, however, that the foregoing indemnity agreement
shall not apply, with respect to an Underwriter, to any loss, claim, damage, liability or expense
to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in conformity with
written information furnished to the Company by such Underwriter through the Representative
expressly for use in the Registration Statement, any Issuer Free Writing Prospectus, any
Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto). The indemnity
agreement set forth in this Section 7(a) shall be in addition to any liabilities that the Company
or the Guarantors may otherwise have.
(b) Indemnification of the Company and the Guarantors. Each Underwriter agrees, severally and
not jointly, to indemnify and hold harmless the Company, each Guarantor, each officer of the
Company or a Guarantor who signed the Registration Statement, each of their respective directors
and each person, if any, who controls the Company or any Guarantor within the meaning of the
Securities Act or the Exchange Act, against any loss, claim, damage, liability or expense, as
incurred, to which the Company, any Guarantor, any officer of the Company or a Guarantor who signed
the Registration Statement or any such director or controlling person may become subject, under the
Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at
common law or otherwise (including in settlement of any litigation, if
22
such settlement is effected with the written consent of such Underwriter), insofar as such
loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below)
arises out of or is based upon any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, any Issuer Free Writing Prospectus, any Preliminary
Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, 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, any Issuer Free Writing Prospectus, any
Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), in reliance upon
and in conformity with written information furnished to the Company by such Underwriter through the
Representative expressly for use therein; and to reimburse the Company, any Guarantor and each such
director or controlling person for any and all expenses (including the fees and disbursements of
counsel) as such expenses are reasonably incurred by the Company, any Guarantor or such director or
controlling person in connection with investigating, defending, settling, compromising or paying
any such loss, claim, damage, liability, expense or action. Each of the Company and the Guarantors
hereby acknowledges that the only information that the Underwriters through the Representative have
furnished to the Company expressly for use in the Registration Statement, any Issuer Free Writing
Prospectus, any Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto)
are the statements set forth in the third sentence of the seventh paragraph and the eighth and
ninth paragraphs under the caption “Underwriting” in the Prospectus. The indemnity agreement set
forth in this Section 7(b) shall be in addition to any liabilities that each Underwriter may
otherwise have.
(c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 7 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 7, notify the indemnifying party in writing of the commencement thereof;
provided that the failure to so notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party under this Section 7 except to the extent that
it has been materially prejudiced by such failure (through the forfeiture of substantive rights and
defenses) and shall not relieve the indemnifying party from any liability that the indemnifying
party may have to an indemnified party other than under this Section 7. In case any such action is
brought against any indemnified party and such indemnified party seeks or intends to seek indemnity
from an indemnifying party, the indemnifying party will be entitled to participate in and, to the
extent that it shall elect, jointly with all other indemnifying parties similarly notified, by
written notice delivered to the indemnified party promptly after receiving the aforesaid notice
from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to
such indemnified party; provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that a conflict may arise between the positions of the indemnifying party and the
indemnified party in conducting the defense of any such action or that there may be legal defenses
available to it and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall have the right to
select separate counsel to assume such legal defenses and to otherwise participate in the defense
of such action on behalf of such indemnified party or parties. Upon receipt of notice from the
indemnifying party to such indemnified party of such indemnifying party’s election so to assume
23
the defense of such action and approval by the indemnified party of counsel, the indemnifying
party will not be liable to such indemnified party under this Section 7 for any legal or other
expenses subsequently incurred by such indemnified party in connection with the defense thereof
unless (i) the indemnified party shall have employed separate counsel in accordance with the
proviso to the immediately preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel (together with local
counsel (in each jurisdiction)), which shall be selected by MLPF&S (in the case of counsel
representing the Underwriters or their related persons), representing the indemnified parties who
are parties to such action) or (ii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after notice of commencement of the action, in each of which cases the fees and expenses of counsel
shall be at the expense of the indemnifying party.
(d) Settlements. The indemnifying party under this Section 7 shall not be liable for any
settlement of any proceeding effected without its written consent, which will not be unreasonably
withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. No indemnifying party shall,
without the prior written consent of the indemnified party, effect any settlement, compromise or
consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect
of which any indemnified party is or could have been a party and indemnity was or could have been
sought hereunder by such indemnified party, unless such settlement, compromise or consent (i)
includes an unconditional release of such indemnified party from all liability on claims that are
the subject matter of such action, suit or proceeding and (ii) does not include any statements as
to or any findings of fault, culpability or failure to act by or on behalf of any indemnified
party.
SECTION 8. Contribution. If the indemnification provided for in Section 7 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, on the one hand, and the Underwriters, on the other hand, from the
offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause
(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) above but also the relative fault of the
Company and the Guarantors, on the one hand, and the Underwriters, on the other hand, in connection
with the statements or omissions which resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The relative benefits received
by the Company and the Guarantors, on the one hand, and the Underwriters, on the other hand, in
connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in
the same respective proportions as the total net proceeds from the offering of the Securities
pursuant to this Agreement (before deducting expenses) received by the Company, and the total
underwriting discount received by the Underwriters, in each case as set forth on the front cover
page of the Prospectus, bear to the aggregate initial offering price of the Securities. The
relative fault of the Company and the Guarantors, on the one hand, and the Underwriters, on the
other
24
hand, shall be determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company and the Guarantors, on the one hand, or the
Underwriters, on the other hand, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 7 hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim. The provisions set forth in
Section 7 hereof with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 8; provided, however, that no additional notice shall
be required with respect to any action for which notice has been given under Section 7 hereof for
purposes of indemnification.
The Company, the Guarantors and the Underwriters agree that it would not be just and equitable
if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this Section 8.
Notwithstanding the provisions of this Section 8, no Underwriter shall be required to
contribute any amount in excess of the underwriting discount received by such Underwriter in
connection with the Securities distributed by it. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11 of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to
contribute pursuant to this Section 8 are several, and not joint, in proportion to their respective
underwriting commitments as set forth opposite their names in Schedule A. For purposes of this
Section 8, each director, officer and employee of an Underwriter and each person, if any, who
controls an Underwriter within the meaning of the Securities Act and the Exchange Act shall have
the same rights to contribution as such Underwriter, and each director of the Company or any
Guarantor, each officer of the Company or a Guarantor who signed the Registration Statement and
each person, if any, who controls the Company or any Guarantor with the meaning of the Securities
Act and the Exchange Act shall have the same rights to contribution as the Company and the
Guarantors.
SECTION 9. Termination of this Agreement. Prior to the Closing Date, this Agreement may be
terminated by the Representative by notice given to the Company if at any time: (i) (x) trading or
quotation in any of the Company’s securities shall have been suspended or limited by the Commission
or by the NYSE or (y) trading in securities generally on either the Nasdaq Stock Market or the NYSE
shall have been suspended or materially limited, or minimum or maximum prices shall have been
generally established on any of such quotation system or stock exchange by the Commission or FINRA;
(ii) a general banking moratorium shall have been declared by any of federal, New York or Delaware
authorities; (iii) there shall have occurred any outbreak or escalation of national or
international hostilities or any international or national crisis or calamity, or any change or
development involving a prospective change in the United States or international financial markets,
that in the judgment of the Representative is material and adverse and makes it impracticable or
inadvisable to proceed with the offering, sale or delivery of
25
the Securities in the manner and on the terms described in the Disclosure Package or the
Prospectus or to enforce contracts for the sale of securities or (iv) in the judgment of the
Representative there shall have occurred any Material Adverse Change. Any termination pursuant to
this Section 9 shall be without liability on the part of (i) the Company or any Guarantor to any
Underwriter, except that the Company and the Guarantors shall be obligated to reimburse the
expenses of the Underwriter s to the extent required by Sections 4 and 6 hereof, (ii) any
Underwriter to the Company, or (iii) any party hereto to any other party except that the provisions
of Sections 7 and 8 hereof shall at all times be effective and shall survive such termination.
SECTION 10. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of the Company, the Guarantors, their
respective officers and the several Underwriters 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 any
Underwriter, the Company, any Guarantor or any of their partners, officers or directors or any
controlling person, as the case may be, and will survive delivery of and payment for the Securities
sold hereunder and any termination of this Agreement.
SECTION 11. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered, couriered or facsimiled and confirmed to the parties hereto as follows:
If to the Underwriters:
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: Legal Department
Xxx Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: Legal Department
with a copy to:
Xxxxxx Xxxxxx & Xxxxxxx llp
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: 212-269-5420
Attention: Xxxxx X. Xxxxx, Esq.
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: 212-269-5420
Attention: Xxxxx X. Xxxxx, Esq.
If to the Company or the Guarantors:
Celanese Corporation
0000 Xxxx XXX Xxxxxxx
Xxxxxx, XX 00000
Facsimile: 000-000-0000
Attention: General Counsel
0000 Xxxx XXX Xxxxxxx
Xxxxxx, XX 00000
Facsimile: 000-000-0000
Attention: General Counsel
Any party hereto may change the address or facsimile number for receipt of communications by
giving written notice to the others.
26
SECTION 12. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, and to the benefit of the indemnified parties referred to in Sections 7 and 8
hereof, and in each case their respective successors, and no other person will have any right or
obligation hereunder.
SECTION 13. Authority of the Representative. Any action by the Underwriters hereunder may be
taken by MLPF&S on behalf of the Underwriters, and any such action taken by MLPF&S shall be binding
upon the Underwriters.
SECTION 14. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other section, paragraph or provision hereof. If any section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.
SECTION
15. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.
SECTION 16. Default of One or More of the Several Underwriters. If any one or more of the
several Underwriters shall fail or refuse to purchase Securities that it or they have agreed to
purchase hereunder on the Closing Date, and the aggregate number of Securities which such
defaulting Underwriter or Underwriters agreed but failed or refused to purchase does not exceed 10%
of the aggregate number of the Securities to be purchased on such date, the other Underwriters
shall be obligated, severally, in the proportions that the number of Securities set forth opposite
their respective names on Schedule A bears to the aggregate number of Securities set forth opposite
the names of all such non-defaulting Underwriters, or in such other proportions as may be specified
by the Underwriters with the consent of the non-defaulting Underwriters, to purchase the Securities
which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on the
Closing Date. If any one or more of the Underwriters shall fail or refuse to purchase Securities
and the aggregate number of Securities with respect to which such default occurs exceeds 10% of the
aggregate number of Securities to be purchased on the Closing Date, and arrangements satisfactory
to the Underwriters and the Company for the purchase of such Securities are not made within 48
hours after such default, this Agreement shall terminate without liability of any party to any
other party except that the provisions of Sections 4, 6, 7 and 8 hereof shall at all times be
effective and shall survive such termination. In any such case either the Underwriters or the
Company shall have the right to postpone the Closing Date, as the case may be, but in no event for
longer than seven days in order that the required changes, if any, to the Registration Statement,
any Issuer Free Writing Prospectus, any Preliminary Prospectus or the Prospectus or any other
documents or arrangements may be effected.
As used in this Agreement, the term “Underwriter” shall be deemed to include any person
substituted for a defaulting Underwriter under this Section 16. Any action taken under this
27
Section 16 shall not relieve any defaulting Underwriter from liability in respect of any
default of such Underwriter under this Agreement.
SECTION 17. No Advisory or Fiduciary Responsibility. Each of the Company and the Guarantors
acknowledges and agrees that: (i) the purchase and sale of the Securities pursuant to this
Agreement, including the determination of the offering price of the Securities and any related
discounts and commissions, is an arm’s-length commercial transaction between the Company and the
Guarantors, on the one hand, and the several Underwriters, on the other hand, and the Company and
the Guarantors are capable of evaluating and understanding and understand and accept the terms,
risks and conditions of the transactions contemplated by this Agreement; (ii) in connection with
each transaction contemplated hereby and the process leading to such transaction each Underwriter
is and has been acting solely as a principal and is not the agent or fiduciary of the Company and
the Guarantors or their respective affiliates, stockholders, creditors or employees or any other
party; (iii) no Underwriter has assumed or will assume an advisory or fiduciary responsibility in
favor of the Company and the Guarantors with respect to any of the transactions contemplated hereby
or the process leading thereto (irrespective of whether such Underwriter has advised or is
currently advising the Company and the Guarantors on other matters) or any other obligation to the
Company and the Guarantors except the obligations expressly set forth in this Agreement; (iv) the
several Underwriters and their respective affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Company and the Guarantors, and
the several Underwriters have no obligation to disclose any of such interests by virtue of any
fiduciary or advisory relationship; and (v) the Underwriters have not provided any legal,
accounting, regulatory or tax advice with respect to the offering contemplated hereby, and the
Company and the Guarantors have consulted their own legal, accounting, regulatory and tax advisors
to the extent they deemed appropriate.
This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company, the Guarantors and the several Underwriters, or any of them, with respect to
the subject matter hereof. The Company and the Guarantors hereby waive and release, to the fullest
extent permitted by law, any claims that the Company and the Guarantors may have against the
several Underwriters with respect to any breach or alleged breach of fiduciary duty.
SECTION 18. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of
an executed counterpart of a signature page to this Agreement by telecopier, facsimile or other
electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually
executed counterpart thereof. This Agreement may not be amended or modified unless in writing by
all of the parties hereto, and no condition herein (express or implied) may be waived unless waived
in writing by each party whom the condition is meant to benefit. The section headings herein are
for the convenience of the parties only and shall not affect the construction or interpretation of
this Agreement.
[Remainder of page intentionally left blank]
28
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.
Very truly yours, CELANESE US HOLDINGS LLC |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | President | |||
CELANESE CORPORATION as Guarantor |
||||
By: | /s/ Xxxxxx X. Xxxxxx | |||
Name: | Xxxxxx X. Xxxxxx | |||
Title: | Senior Vice President and Chief Financial Officer |
|||
CELANESE AMERICAS LLC as Guarantor |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | President | |||
CELANESE ACETATE LLC as Guarantor |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Treasurer | |||
CELANESE CHEMICALS, INC. as Guarantor |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Treasurer | |||
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
CELANESE FIBERS OPERATIONS LLC as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President | |||
CNA HOLDINGS LLC as Guarantor |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | President | |||
CELANESE INTERNATIONAL CORPORATION as Guarantor |
||||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Treasurer | |||
CELTRAN, INC. as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President | |||
CNA FUNDING LLC as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President | |||
KEP AMERICAS ENGINEERING PLASTICS, LLC as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President | |||
SIGNATURE PAGE TO UNDERWRITING AGREEMENT
TICONA FORTRON INC. as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President | |||
TICONA POLYMERS, INC. as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President | |||
TICONA LLC as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President | |||
CELANESE GLOBAL RELOCATION LLC as Guarantor |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President, Tax | |||
CELANESE LTD. as Guarantor |
||||
By: | CELANESE INTERNATIONAL CORPORATION, its general partner | |||
By: | /s/ Xxxxxxxxxxx X. Xxxxxx | |||
Name: | Xxxxxxxxxxx X. Xxxxxx | |||
Title: | Treasurer |
SIGNATURE
PAGE TO UNDERWRITING AGREEMENT
The foregoing Underwriting Agreement is hereby confirmed and accepted by the Underwriters as
of the date first above written.
Xxxxxxx
Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Incorporated
Acting on behalf of itself and as the Representative of the several Underwriters |
By: | Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated | |||
By: | /s/ Xxxx Kushemba | |||
Name: | Xxxx Kushemba | |||
Title: | Director | |||
[Signature Page To Underwriting Agreement]
SCHEDULE A
Aggregate Principal Amount | ||||
Underwriters | of Securities to be Purchased | |||
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated |
$ | 140,000,000.00 | ||
Barclays Capital Inc. |
40,000,000.00 | |||
Deutsche Bank Securities Inc. |
40,000,000.00 | |||
HSBC Securities (USA) Inc. |
40,000,000.00 | |||
Xxxxxx Xxxxxxx & Co. Incorporated |
40,000,000.00 | |||
RBS Securities Inc. |
40,000,000.00 | |||
X.X. Xxxxxx Securities LLC |
30,000,000.00 | |||
Citigroup Global Markets Inc. |
30,000,000.00 | |||
Total |
$ | 400,000,000.00 |
SCHEDULE B-1
Guarantors
Celanese Americas LLC
Celanese Acetate LLC
Celanese Chemicals, Inc.
Celanese Fibers Operations LLC
CNA Holdings LLC
Celanese International Corporation
Celtran, Inc.
CNA Funding LLC
KEP Americas Engineering Plastics, LLC
Ticona Fortron Inc.
Ticona Polymers, Inc.
Ticona LLC
Celanese Global Relocation LLC
Celanese Ltd.
Celanese Acetate LLC
Celanese Chemicals, Inc.
Celanese Fibers Operations LLC
CNA Holdings LLC
Celanese International Corporation
Celtran, Inc.
CNA Funding LLC
KEP Americas Engineering Plastics, LLC
Ticona Fortron Inc.
Ticona Polymers, Inc.
Ticona LLC
Celanese Global Relocation LLC
Celanese Ltd.
SCHEDULE B-2
Additional Subsidiaries
None.
SCHEDULE C
Issuer Free Writing Prospectuses
Free Writing Prospectus (to the Preliminary Prospectus Supplement dated May 2, 2011)
EXHIBIT A
Opinion
of Xxxxxx, Xxxx & Xxxxxxxx LLP to be delivered pursuant to Section 5 of the
Underwriting Agreement.
[Provided under separate cover]
Exhibit A-1
EXHIBIT B
Opinion of Xxxxx X. Xxxxxxx III, Vice President, Deputy General Counsel and Assistant
Corporate Secretary of the Parent Guarantor delivered pursuant to Section 5 of the Underwriting
Agreement.
(i) Neither the Company nor any of the Guarantors is in violation of its Organizational
Documents.
(ii) All of the issued and outstanding capital stock of the Company and each Guarantor has
been duly authorized and validly issued, is fully paid and non-assessable and is owned by the
Parent Guarantor, directly or through subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance (other than security interests, liens and pledges under the
Company’s multi-bank Credit Agreement) or, to the best knowledge of such counsel, any pending or
threatened claim.
Exhibit B-1