6,592,906 Shares STANDARD PARKING CORPORATION Common Stock UNDERWRITING AGREEMENT
Exhibit 1.1
Execution Copy
6,592,906 Shares
STANDARD PARKING CORPORATION
Common Stock
November 9, 2009
Credit Suisse Securities (USA) LLC
Xxxxxxx Xxxxx & Company, L.L.C.,
As Representatives of the Several Underwriters,
c/o Credit Suisse Securities (USA) LLC,
Eleven Madison Avenue,
New York, N.Y. 10010-3629
Xxxxxxx Xxxxx & Company, L.L.C.,
As Representatives of the Several Underwriters,
c/o Credit Suisse Securities (USA) LLC,
Eleven Madison Avenue,
New York, N.Y. 10010-3629
Ladies and Gentlemen:
1. Introductory. (i) The securityholders named in Schedule A (collectively, the “Selling
Stockholders”), severally, and not jointly, agree with the several Underwriters named in
Schedule B hereto (the “Underwriters”) to sell to the several Underwriters an
aggregate of 6,592,906 shares (the “Firm Securities”) of common stock of Standard Parking
Corporation, a Delaware corporation (the “Company”), par value $0.001 per share (the
“Securities”), and also severally, and not jointly, propose to sell to the Underwriters, at
the option of the Underwriters, an aggregate of not more than 988,936 additional shares (the
“Optional Securities”) of the Securities as set forth below, in each case in the amount set
forth opposite such Selling Stockholder’s name on Schedule A. The Firm Securities and the
Optional Securities that the Underwriters elect to purchase pursuant to Section 4 hereof are herein
collectively called the “Offered Securities”.
2. Representations and Warranties of the Company. The Company represents and warrants to, and agrees with, the several Underwriters that:
(a) Filing and Effectiveness of Registration Statement; Certain Defined Terms. The
Company has filed with the Commission a registration statement on Form S-3 (No. 333-161750),
including a related prospectus or prospectuses, covering the registration of the Offered Securities
under the Act, which has become effective. “Registration Statement” at any particular time
means such registration statement in the form then filed with the Commission, including any
amendment thereto, any document incorporated by reference therein and all 430B Information and all
430C Information with respect to such registration statement, that in any case has not been
superseded or modified. “Registration Statement” without reference to a time
means the Registration Statement as of the Effective Time. For purposes of this definition,
430B Information shall be considered to be included in the Registration Statement as of the time
specified in Rule 430B.
For purposes of this Agreement:
“430B Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430B(e) or retroactively deemed to be a part of the
Registration Statement pursuant to Rule 430B(f).
“430C Information” means information included in a prospectus then deemed to be a part
of the Registration Statement pursuant to Rule 430C.
“Act” means the Securities Act of 1933, as amended.
“Applicable Time” means 5:00 pm (Eastern time) on the date of this Agreement.
“Closing Date” has the meaning defined in Section 4 hereof.
“Commission” means the Securities and Exchange Commission.
“Effective Time” of the Registration Statement relating to the Offered Securities
means the time of the first contract of sale for the Offered Securities.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Final Prospectus” means the Statutory Prospectus that discloses the public offering
price, other 430B Information and other final terms of the Offered Securities and otherwise
satisfies Section 10(a) of the Act.
“First Closing Date” has the meaning defined in Section 4 hereof.
“General Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is intended for general distribution to prospective investors, as evidenced by its being so
specified in Schedule C to this Agreement.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as
defined in Rule 433, relating to the Offered Securities in the form filed or required to
be filed with the Commission or, if not required to be filed, in the form retained in the Company’s
records pursuant to Rule 433(g).
“Limited Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not a General Use Issuer Free Writing Prospectus.
“Optional Closing Date” has the meaning defined in Section 4 hereof.
“Permitted Free Writing Prospectus” has the meaning defined in Section 7 hereof.
“Rules and Regulations” means the rules and regulations of the Commission.
“Securities Laws” means, collectively, the Xxxxxxxx-Xxxxx Act of 2002
(“Xxxxxxxx-Xxxxx”), the Act, the Exchange Act, the Rules and Regulations, the auditing
principles, rules, standards and practices applicable to auditors of “issuers” (as defined in
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Xxxxxxxx-Xxxxx) promulgated or approved by the Public Company Accounting Oversight Board and, as
applicable, the rules of the New York Stock Exchange and the NASDAQ Stock Market (“Exchange
Rules”).
“Statutory Prospectus” with reference to any particular time means the prospectus
relating to the Offered Securities that is included in the Registration Statement immediately prior
to that time, including all 430B Information and all 430C Information with respect to the
Registration Statement. For purposes of the foregoing definition, 430B Information shall be
considered to be included in the Statutory Prospectus only as of the actual time that form of
prospectus (including a prospectus supplement) is filed with the Commission pursuant to Rule 424(b)
and not retroactively.
Unless otherwise specified, a reference to a “rule” is to the indicated rule under the Act.
(b) Compliance with Securities Act Requirements. (i) (A) At the time the Registration
Statement initially became effective, (B) at the time of each amendment thereto for the purposes of
complying with Section 10(a)(3) of the Act (whether by post-effective amendment, incorporated
report or form of prospectus), (C) at the Effective Time relating to the Offered Securities and (D)
on the Closing Date, the Registration Statement conformed and will conform in all respects to the
requirements of the Act and the Rules and Regulations and did not and will not include any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading and (ii) (A) on its date, (B) at the time
of filing the Final Prospectus pursuant to Rule 424(b) and (C) on the Closing Date, the Final
Prospectus will conform in all respects to the requirements of the Act and the Rules and
Regulations, and will not include any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading. The preceding sentence does not apply to statements in or omissions from any such
document made in reliance upon and in conformity with the Underwriter Information (as defined
below).
(c) Shelf Registration Statement. The date of this Agreement is not more than three
years subsequent to the initial effective time of the Registration Statement. If, immediately
prior to the third anniversary of the initial effective time of the Registration Statement, any of
the Offered Securities remain unsold by the Underwriters, the Company will prior to that third
anniversary file, if it has not already done so, a new shelf registration statement relating to the
Offered Securities, in a form satisfactory to Credit Suisse Securities (USA) LLC (“Credit
Suisse”), will use its best efforts to cause such registration statement to be declared
effective within 180 days after that third anniversary, and will take all other action necessary or
appropriate to permit the public offering and sale of the Offered Securities to continue as
contemplated in the expired registration statement relating to the Offered Securities. References
herein to the Registration Statement shall include such new shelf registration statement.
(d) Ineligible Issuer Status. (i) At the earliest time after the filing of the
Registration Statement that the Company or another offering participant made a bona fide offer
(within the meaning of Rule 164(h)(2)) of the Offered Securities and (ii) at the date of this
Agreement, the Company was not and is not an “ineligible issuer,” as defined in Rule 405,
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including
(x) the Company or any other subsidiary in the preceding three years not having been convicted of a
felony or misdemeanor or having been made the subject of a judicial or administrative decree or
order as described in Rule 405 and (y) the Company in the preceding three years not having been the
subject of a bankruptcy petition or insolvency or similar proceeding, not having had a registration
statement be the subject of a proceeding under Section 8 of the Act and not being the subject of a
proceeding under Section 8A of the Act in connection with the offering of the Securities, all as
described in Rule 405.
(e) General Disclosure Package. As of the Applicable Time, neither (i) the General
Use Issuer Free Writing Prospectus issued at or prior to the Applicable Time and, the preliminary
prospectus supplement, dated November 3, 2009, including the base prospectus, dated October 6,
2009, (which is the most recent Statutory Prospectus distributed to investors generally), and the
other information, if any, stated in Schedule C to this Agreement to be included in the
General Disclosure Package, all considered together (collectively, the “General Disclosure
Package”), nor (ii) any individual Limited Use Issuer Free Writing Prospectus, when considered
together with the General Disclosure Package, included any untrue statement of a material fact or
omitted 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. The preceding sentence does not
apply to statements in or omissions from any Statutory Prospectus or any Issuer Free Writing
Prospectus in reliance upon and in conformity with the Underwriter Information.
(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 public offer and sale of the
Offered Securities or until any earlier date that the Company notified or notifies Credit Suisse 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 then contained in the Registration
Statement. 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 then contained in the Registration Statement or
as a result of which such Issuer Free Writing Prospectus, if republished immediately following such
event or development, would include an untrue statement of a material fact or omitted or would 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, (i) the Company has promptly notified or
will promptly notify Credit Suisse and (ii) the Company has promptly amended or will promptly amend
or supplement such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue
statement or omission.
(g) Good Standing of the Company. The Company has been duly incorporated and is
existing and in good standing under the laws of the State of Delaware, with power and authority
(corporate and other) to own its properties and conduct its business as described in the General
Disclosure Package; and the Company is duly qualified to do business as a foreign corporation in
good standing in all other jurisdictions in which its ownership or lease
of property or the conduct of its business requires such qualification, except as would not,
individually or in the aggregate, result in a material adverse effect on the condition (financial
or otherwise), results of operations, business, properties or prospects of the Company and its
subsidiaries taken as a whole (“Material Adverse Effect”).
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(h) Subsidiaries. Each significant subsidiary (as such term is defined in Rule 1.02
of the Regulation S-X under the Act as of the Applicable Time and as set forth in Schedule D)
(each, a “Significant Subsidiary”) and, except as would not have, individually or in the
aggregate, a Material Adverse Effect, each subsidiary of the Company that is not a Significant
Subsidiary, has been duly incorporated or organized and is existing and in good standing under the
laws of the jurisdiction of its incorporation or formation, with power and authority (corporate and
other) to own its properties and conduct its business as described in the General Disclosure
Package; each subsidiary of the Company is duly qualified to do business as a foreign corporation,
limited partnership or limited liability company in good standing in all other jurisdictions in
which its ownership or lease of property or the conduct of its business requires such
qualification, except as would not have, individually or in the aggregate, a Material Adverse
Effect; and all of the issued and outstanding equity interests of each subsidiary of the Company
have been duly authorized and validly issued and are fully paid and nonassessable; and the capital
stock or other equity securities of each subsidiary owned by the Company, directly or through
subsidiaries, is owned free from liens, encumbrances and defects, except as would not have,
individually or in the aggregate, a Material Adverse Effect; set forth on Schedule D is a true and
complete list of each Significant Subsidiary as of the Applicable Time, including the jurisdiction
of organization of such Significant Subsidiary.
(i) Offered Securities. The Offered Securities and all other outstanding shares of
capital stock of the Company have been duly authorized; the authorized equity capitalization of the
Company is as set forth in the General Disclosure Package; all outstanding shares of capital stock
of the Company (including the Offered Securities) are validly issued, fully paid and nonassessable,
will conform to the information in the General Disclosure Package and to the description of such
Offered Securities contained in the Final Prospectus; the stockholders of the Company have no
preemptive rights with respect to the Securities; and none of the outstanding shares of capital
stock of the Company have been issued in violation of any preemptive or similar rights of any
security holder.
(j) No Finder’s Fee. Except as disclosed in the General Disclosure Package, there are
no contracts, agreements or understandings between the Company and any person that would give rise
to a valid claim against the Company or any Underwriter for a brokerage commission, finder’s fee or
other like payment in connection with this offering.
(k) Registration Rights. Except as disclosed in the General Disclosure Package, there
are no contracts, agreements or understandings between the Company and any person granting such
person the right to require the Company to file a registration statement under the Act with respect
to any securities of the Company owned or to be owned by such person or to require the Company to
include such securities in the securities registered pursuant to a Registration Statement or in any
securities being registered pursuant to any other registration statement filed by the Company under
the Act.
(l) Listing. The Offered Securities are approved for listing on the NASDAQ Global
Select Market.
(m) Absence of Further Requirements. No consent, approval, authorization, or order
of, or filing or registration with, any person (including any governmental agency or body
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or any
court) is required for the consummation of the transactions contemplated by this Agreement in
connection with the offering and sale of the Offered Securities by the Selling Stockholders, except
such as have been obtained, or made and such as may be required under state securities laws.
(n) Title to Property. Except as disclosed in the General Disclosure Package, the
Company and its subsidiaries have good and marketable title to all real properties and assets
described in the General Disclosure Package as being owned by them, in each case free from liens,
charges, encumbrances and other title defects, except such liens, charges, encumbrances and other
title defects as would not, individually or in the aggregate, have a Material Adverse Effect; and
except as disclosed in the General Disclosure Package, the Company and its subsidiaries hold any
leased real or personal property under valid and enforceable leases with no terms or provisions
that would interfere with the use made or to be made thereof by them, except, with respect to such
terms or provisions, as would not have, individually or in the aggregate, a Material Adverse
Effect.
(o) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of this Agreement, and the sale of the Offered Securities will not result
in a breach or violation of any of the terms and provisions of, or constitute a default or any
event or condition that 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 Company or any of its subsidiaries under, or result in the imposition of any
lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries
pursuant to, (i) the charter or by-laws of the Company or any of its subsidiaries, (ii) any
statute, rule, regulation or order of any governmental agency or body or any court, domestic or
foreign, having jurisdiction over the Company or any of its subsidiaries or any of their
properties, or (iii) any agreement or instrument to which the Company or any of its subsidiaries is
a party or by which the Company or any of its subsidiaries is bound or to which any of the
properties of the Company or any of its subsidiaries is subject, except, in the case of clauses
(ii) or (iii), as would not have, individually or in the aggregate, a Material Adverse Effect.
(p) Absence of Existing Defaults and Conflicts. Neither the Company nor any of its
subsidiaries is in violation of its respective charter or by-laws or in default (or with the giving
of notice or lapse of time would be in default) under any existing obligation, agreement, covenant
or condition contained in any indenture, loan agreement, mortgage, lease or other agreement or
instrument to which any of them is a party or by which any of them is bound or to which any of the
properties of any of them is subject, except as would not have, individually or in the aggregate, a
Material Adverse Effect.
(q) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by the Company.
(r) Possession of Licenses and Permits. The Company and its subsidiaries possess, and
are in compliance with the terms of, all adequate certificates, authorizations, franchises,
licenses and permits (“Licenses”) necessary or material to the conduct of the business
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now
conducted or proposed in the General Disclosure Package to be conducted by them and have not
received any notice of proceedings relating to the revocation or modification of any Licenses that,
if determined adversely to the Company or any of its subsidiaries, would have, individually or in
the aggregate, a Material Adverse Effect.
(s) Absence of Labor Dispute. No labor dispute with the employees of the Company or
any of its subsidiaries exists or, to the knowledge of the Company, is imminent that could have a
Material Adverse Effect.
(t) Possession of Intellectual Property. The Company and its subsidiaries own,
possess or can acquire on reasonable terms, adequate trademarks, trade names and other rights to
inventions, know-how, patents, copyrights, confidential information and other intellectual property
(collectively, “Intellectual Property Rights”) necessary to conduct the business now
operated by them, or presently employed by them, and have not received any notice of infringement
of or conflict with asserted rights of others with respect to any Intellectual Property Rights
that, if determined adversely to the Company or any of its subsidiaries, would individually or in
the aggregate have a Material Adverse Effect.
(u) Environmental Laws. Except as disclosed in the General Disclosure Package or as
would not, individually or in the aggregate, have a Material Adverse Effect, neither the Company
nor any of its subsidiaries is in violation of any statute, any rule, regulation, decision or order
of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal
or release of hazardous or toxic substances or relating to the protection or restoration of the
environment or human exposure to hazardous or toxic substances (collectively, “Environmental
Laws”), owns or operates any real property contaminated with any substance that is subject to
any Environmental Laws, is liable for any off-site disposal or contamination pursuant to any
Environmental Laws, or is subject to any claim relating to any Environmental Laws.
(v) Accurate Disclosure. The statements in the General Disclosure Package and the
Final Prospectus under the headings “U.S. Federal Tax Consequences for Non-U.S. Holders,”
“Description of Capital Stock,” “Shares Eligible for Future Sale” and “Underwriting,” insofar as
such statements summarize legal matters, agreements, documents or proceedings discussed therein,
are accurate and fair summaries of such legal matters, agreements, documents or proceedings and
present the information required to be shown.
(w) Absence of Manipulation. The Company has not taken, directly or indirectly, any
action that is designed to or that has constituted or that would reasonably be expected to cause or
result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Offered Securities in violation of the Act.
(x) Statistical and Market-Related Data. Any third-party statistical and
market-related data included or incorporated by reference in a Registration Statement, a Statutory
Prospectus or the General Disclosure Package are based on or derived from sources that the Company
believes to be reliable and accurate.
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(y) Internal Controls and Compliance with the Xxxxxxxx-Xxxxx Act. Except as set forth
in the General Disclosure Package, the Company, its subsidiaries and the Company’s Board of
Directors (the “Board”) are in compliance with Xxxxxxxx-Xxxxx and all applicable Exchange
Rules. The Company maintains a system of internal controls, including, but not limited to,
disclosure controls and procedures, internal controls over accounting matters and financial
reporting, an internal audit function and legal and regulatory compliance controls (collectively,
“Internal Controls”) that comply with the Securities Laws and are sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with management’s general or
specific authorizations, (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with U.S. General Accepted Accounting Principles 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
the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences. The Internal Controls are overseen by the Audit Committee (the “Audit
Committee”) of the Board in accordance with Exchange Rules. The Company has not publicly
disclosed or reported to the Audit Committee or the Board, and within the next 90 days
the Company does not reasonably expect to publicly disclose or report to the Audit Committee or the
Board, a significant deficiency, material weakness, change in Internal Controls or fraud involving
management or other employees who have a significant role in Internal Controls (each, an
“Internal Control Event”), any violation of, or failure to comply with, the Securities
Laws, or any matter which, if determined adversely, would have a Material Adverse Effect.
(z) Litigation. Except as disclosed in the General Disclosure Package, there are no
pending actions, suits or proceedings (including any inquiries or investigations by any court or
governmental agency or body, domestic or foreign) against or affecting the Company, any of its
subsidiaries or any of their respective properties that, if determined adversely to the Company or
any of its subsidiaries, would individually or in the aggregate have a Material Adverse Effect, or
would materially and adversely affect the ability of the Company to perform its obligations under
this Agreement, or which are otherwise material in the context of the sale of the Offered
Securities; and no such actions, suits or proceedings (including any inquiries or investigations by
any court or governmental agency or body, domestic or foreign) are threatened or, to the Company’s
knowledge, contemplated.
(aa) Financial Statements. The financial statements included in the Registration
Statement and the General Disclosure Package present fairly the financial position of the Company
and its consolidated subsidiaries as of the dates shown and their results of operations and cash
flows for the periods shown, and such financial statements have been prepared in conformity with
the generally accepted accounting principles in the United States applied on a consistent basis;
and the schedules included in the Registration Statement present fairly the information required to
be stated therein; and except as included in the Registration
Statement and the General Disclosure Package, no other financial statement or supporting
schedules are required to be included therein.
(bb) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the latest audited financial statements
included in the General Disclosure Package (i) there has been no change, nor any
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development or
event involving a prospective change, in the condition (financial or otherwise), results of
operations, business, properties or prospects of the Company and its subsidiaries, taken as a whole
that is material and adverse to the Company and its subsidiaries taken as a whole, (ii) except as
disclosed in or contemplated by the General Disclosure Package, there has been no dividend or
distribution of any kind declared, paid or made by the Company on any class of its capital stock
and (iii) except as disclosed in or contemplated by the General Disclosure Package, there has been
no material adverse change in the capital stock, short-term indebtedness, long-term indebtedness,
net current assets or net assets of the Company and its subsidiaries.
(cc) Investment Company Act. The Company is not and, after giving effect to the
offering and sale of the Offered Securities as described in the General Disclosure Package, will
not be an “investment company” as defined in the Investment Company Act of 1940.
(dd) Ratings. No “nationally recognized statistical rating organization” as such term
is defined for purposes of Rule 436(g)(2) (i) has imposed (or has informed the Company that it is
considering imposing) any condition (financial or otherwise) on the Company’s retaining any rating
assigned to the Company or any indebtedness of the Company or (ii) has indicated to the Company
that it is considering any of the actions described in Section 8(c)(ii) hereof.
(ee) Insurance. The Company and its subsidiaries are insured by insurers with
appropriately rated claims paying abilities against such losses and risks and in such amounts as
are prudent and customary for the businesses in which they are engaged; all policies of insurance
and fidelity or surety bonds insuring the Company or any of its subsidiaries or their respective
businesses, assets, employees, officers and directors are in full force and effect; the Company and
its subsidiaries are in compliance with the terms of such policies and instruments in all material
respects; and there are no claims by the Company or any of its subsidiaries under any such policy
or instrument as to which any insurance company is denying liability or defending under a
reservation of rights clause; neither the Company nor any such subsidiary has been refused any
insurance coverage sought or applied for; and neither the Company nor any such subsidiary has any
reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not have a Material Adverse Effect, except as set forth
in or contemplated in the General Disclosure Package.
(ff) Tax Filings. The Company and its subsidiaries have filed all federal, state,
local and non-U.S. tax returns that are required to be filed or have requested extensions thereof
(except in any case in which the failure so to file would not have a Material Adverse Effect); and,
except as set forth in the General Disclosure Package, the Company and its subsidiaries have paid
all taxes (including any assessments, fines or penalties) required to be paid by them,
except for any such taxes, assessments, fines or penalties currently being contested in good
faith or as would not, individually or in the aggregate, have a Material Adverse Effect.
(gg) Foreign Corrupt Practices Act; Anti-Money Laundering; Economic Sanctions. Each
of the Company, its subsidiaries, its affiliates and any of their respective officers, directors,
supervisors, managers, agents, or employees, that it has not violated, its participation in the
offering will not violate, and it has instituted and maintains policies and
9
procedures designed to
ensure continued compliance each of the following laws: (a) anti-bribery laws, including but not
limited to, any applicable law, rule, or regulation of any locality, including but not limited to
any law, rule, or regulation promulgated to implement the OECD Convention on Combating Bribery of
Foreign Public Officials in International Business Transactions, signed December 17, 1997,
including the U.S. Foreign Corrupt Practices Act of 1977 or any other law, rule or regulation of
similar purpose and scope, (b) anti-money laundering laws, including but not limited to, applicable
federal, state, international, foreign or other laws, regulations or government guidance regarding
anti-money laundering, including, without limitation, Title 18 U.S. Code section 1956 and 1957, the
Patriot Act, the Bank Secrecy Act, and international anti-money laundering principals or procedures
by an intergovernmental group or organization, such as the Financial Action Task Force on Money
Laundering, of which the United States is a member and with which designation the United States
representative to the group or organization continues to concur, all as amended, and any Executive
order, directive, or regulation pursuant to the authority of any of the foregoing, or any orders or
licenses issued thereunder or (c) laws and regulations imposing U.S. economic sanctions measures,
including, but not limited to, the International Emergency Economic Powers Act, the Trading with
the Enemy Act, the United Nations Participation Act, and the Syria Accountability and Lebanese
Sovereignty Act, all as amended, and any Executive Order, directive, or regulation pursuant to the
authority of any of the foregoing, including the regulations of the United States Treasury
Department set forth under 31 CFR, Subtitle B, Chapter V, as amended, or any orders or licenses
issued thereunder.
3. Representations of the Selling Stockholders. Each Selling Stockholder severally, and not jointly, represents, and agrees with, the
Underwriter that:
(a) Power and Authority. The Selling Stockholder has, and on each Closing Date will
have, full legal right, power and authority, and all authorization and approval required by law, to
enter into this Agreement and to sell, assign, transfer and deliver the Offered Securities to be
sold by the Selling Stockholder in the manner provided herein.
(b) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by or on behalf of the Selling Stockholder.
(c) Absence of Further Requirements. No consent, approval, authorization or order of,
or filing with, any person (including any governmental agency or body or any court) is required to
be obtained or made by any Selling Stockholder for the consummation of the transactions
contemplated by this Agreement, except such as have been obtained and made under the Act and such
as may be required under state securities laws.
(d) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance by the Selling Stockholder of this Agreement, and the sale of the Offered
Securities, will not result in a breach or violation of any of the terms and provisions of or
constitute a default or any event or condition that 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 Selling Stockholder or any of its subsidiaries
under, or result in the imposition of any lien, charge or encumbrance upon
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any property or assets
pursuant to, (i) the charter, by-laws, certificate of formation, limited liability company
agreement, partnership agreement or similar constituent, governing or organizational document of
the Selling Stockholder, (ii) any statute, rule, regulation or order of any governmental agency or
body or any court, domestic or foreign, having jurisdiction over the Selling Stockholder or any of
its properties, or (iii) any agreement or instrument to which the Selling Stockholder is a party or
by which the Selling Stockholder is bound or to which any of its properties is subject, except, in
the case of clauses (ii) or (iii), as would not have, individually or in the aggregate, a material
adverse effect on the Selling Stockholder’s ability to perform its obligations under this
Agreement, including the sale and delivery of the Securities hereunder.
(e) Valid and Unencumbered Title. The Selling Stockholder has and on each Closing Date
hereinafter mentioned will have valid and unencumbered title to the Securities to be delivered by
the Selling Stockholder on such Closing Date; and upon payment for the Securities to be sold by
such Selling Stockholder pursuant to this Agreement, delivery of such Securities, as directed by
the Underwriters, to Cede & Co. (“Cede”) or such other nominee as may be designated by the
Depository Trust Company (“DTC”), registration of such Securities in the name of Cede or
such other nominee and the crediting of such Securities on the books of DTC to securities accounts
of the Underwriters (assuming that neither DTC nor any such Underwriter has notice of any adverse
claim (as defined in Section 8-105 of the New York Uniform Commercial Code, as amended (the
“UCC”)), (1) DTC shall be a “protected purchaser” of such Securities (as defined in Section
8-302 of the UCC), (2) the Underwriters will acquire a valid security entitlement to the Securities
(as defined in Section 8-102 of the UCC) and (3) no action based on any adverse claim (as defined
in Section 8-102 of the UCC) may be asserted against the Underwriters with respect to such security
entitlement.
(f) Disclosure Made by the Selling Stockholders. The Registration Statement, the
General Disclosure Package and the Final Prospectus, (i) at the time the Registration Statement
initially became effective, at the Effective Time relating to the Offered Securities and on the
Closing Date, with respect to the Registration Statement, (ii) as of the Applicable Time, with
respect to the General Disclosure Package, and (iii) on its date, at the time of filing the Final
Prospectus pursuant to Rule 424(b) and on the Closing Date, with respect to the Final Prospectus,
did not and will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading;
provided, however, that this representation and warranty shall only apply to any statements or
omissions in the Registration Statement, the General Disclosure Package and the Final Prospectus
made in reliance upon and in conformity with written information furnished by or on behalf of a
Selling Stockholder specifically for use in the Registration Statement, the General Disclosure
Package or the Final Prospectus, together with any amendment or supplement thereto used by the
Company or any Underwriter, as the case may be, it being
understood that the only such information furnished by any Selling Stockholder consists of the
information relating to such Selling Stockholder in the Registration Statement, the General
Disclosure Package and the Final Prospectus under the heading “Selling Stockholders,” including,
with respect to each Selling Stockholder, the second, fourth, fifth, sixth and seventh paragraphs
thereunder in the Statutory Prospectus and the Final Prospectus (the “Selling Stockholder
Information”).
11
(g) No Distribution of Offering Material. The Selling Stockholder has not distributed
and will not distribute any prospectus or other offering material in connection with the offering
and sale of the Offered Securities.
(h) No Reliance on Other Information. The sale of the Offered Securities by the
Selling Stockholder is not prompted by any information concerning the Company or any of its
subsidiaries that is not set forth in the General Disclosure Package, the Final Prospectus or any
supplement thereto.
(i) Material Agreements. There are no material agreements or arrangements relating to
the Company or its subsidiaries to which the Selling Stockholder is a party, which are required to
be described in the Registration Statements or the Final Prospectus or to be filed as exhibits
thereto that are not so described or filed.
(j) No Finder’s Fee. Except as disclosed in the General Disclosure Package and the
Final Prospectus, there are no contracts, agreements or understandings between the Selling
Stockholder and any person that would give rise to a valid claim against the Company or any
Underwriter for a brokerage commission, finder’s fee or other like payment in connection with the
sale of the Offered Securities.
(k) Absence of Manipulation. The Selling Stockholder has not taken, directly or
indirectly, any action that is designed to or that has constituted or that would reasonably be
expected to cause or result in the stabilization or manipulation of the price of any security of
the Company to facilitate the sale or resale of the Offered Securities in violation of the Act.
(l) Lock-Up Agreement. On or prior to the date hereof, the Selling Stockholder has
executed and delivered to the Underwriters an agreement substantially in the form set forth in
Annex A hereto.
4. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations, warranties and agreements and subject to the terms and
conditions set forth herein, each Selling Stockholder agrees to sell to the several Underwriters,
the number of Firm Securities set forth opposite the name of the such Selling Stockholder in
Schedule A hereto, and each of the Underwriters agrees, severally and not jointly, to
purchase from each Selling Stockholder, at a purchase price of $15.14 per share, the respective
number of shares of Firm Securities set forth opposite the names of the Underwriters in
Schedule B hereto.
The Selling Stockholders agree, severally and not jointly, to deliver the Firm Securities to
or as instructed by the Representatives for the accounts of the several Underwriters in a form
reasonably acceptable to the Representatives against payment of the purchase price by the
Underwriters in Federal (same day) funds by wire transfer to an account at a bank acceptable to
Credit Suisse drawn to the order of each of the Selling Stockholders at the office of Xxxxxx &
Xxxxxxx LLP, Chicago, Illinois, at 9:00 am (Central time) on November 16, 2009, or at such other
time not later than seven full business days thereafter as Credit Suisse and the Company determine,
such time being herein referred to as the “First Closing Date”. For purposes of Rule
15c6-1 under the Securities Exchange Act of 1934, the First Closing Date (if later than the
otherwise applicable settlement date) shall be the settlement date for payment of funds and
12
delivery of securities for all the Offered Securities sold pursuant to the offering. The Firm
Securities so to be delivered will be made available for checking at the above office of Xxxxxx &
Xxxxxxx LLP at least 24 hours prior to the First Closing Date.
In addition, upon written notice from Credit Suisse given to the Selling Stockholders from
time to time not more than 30 days subsequent to the date of the Final Prospectus, the Underwriters
may purchase all or less than all of the Optional Securities at the purchase price per Security to
be paid for the Firm Securities. The Selling Stockholders, severally, and not jointly, agree to
sell to the Underwriters the number of shares of Optional Securities specified in such notice in
the same proportion as the number of shares of Optional Securities set forth opposite such Selling
Stockholder’s name bears to the total number of Optional Securities specified in such notice and
the Underwriters agree, severally and not jointly, to purchase such Optional Securities. Such
Optional Securities shall be purchased for the account of each Underwriter in the same proportion
as the number of shares of Firm Securities set forth opposite such Underwriter’s name bears to the
total number of shares of Firm Securities (subject to adjustment by Credit Suisse to eliminate
fractions) and may be purchased by the Underwriters only for the purpose of covering
over-allotments made in connection with the sale of the Firm Securities. No Optional Securities
shall be sold or delivered unless the Firm Securities previously have been, or simultaneously are,
sold and delivered. The right to purchase the Optional Securities or any portion thereof may be
exercised from time to time and to the extent not previously exercised may be surrendered and
terminated at any time upon notice by Credit Suisse to the Selling Stockholders.
Each time for the delivery of and payment for the Optional Securities, being herein referred
to as an “Optional Closing Date”, which may be the First Closing Date (the First Closing
Date and each Optional Closing Date, if any, being sometimes referred to as a “Closing
Date”), shall be determined by Credit Suisse but shall be not later than five full business
days after written notice of election to purchase Optional Securities is given. The Company will
deliver the Optional Securities being purchased on each Optional Closing Date to or as instructed
by Credit Suisse for the accounts of the several Underwriters in a form reasonably acceptable to
Credit Suisse against payment of the purchase price therefor in Federal (same day) funds by wire
transfer to an account at a bank acceptable to Credit Suisse drawn to the order of each of the
Selling Stockholders, at the above office of Xxxxxx & Xxxxxxx LLP. The Optional
Securities being purchased on each Optional Closing Date will be made available for checking at the
above office of Xxxxxx & Xxxxxxx LLP at a reasonable time in advance of such Optional Closing Date.
5. Offering by Underwriters. It is understood that the several Underwriters propose to offer the Offered Securities for
sale to the public as set forth in the Final Prospectus.
6. Certain Agreements of the Company and the Selling Stockholders.
(a) The Company agrees with the several Underwriters and the Selling Stockholders that:
(i) Filing of Prospectuses. The Company has filed or will file each Statutory
Prospectus (including the Final Prospectus) pursuant to and in accordance with Rule
424(b)(1) (or, if applicable and consented to by the Representatives, subparagraph
13
(3) or
subparagraph (4)) not later than the second business day following the earlier of the date
it is first used or the execution and delivery of this Agreement. The Company will advise
the Representatives promptly of any such filing pursuant to Rule 424(b) and provide
satisfactory evidence to the Representatives of such timely filing. The Company has
complied and will comply with Rule 433.
(ii) Filing of Amendments; Response to Commission Requests. The Company will
promptly advise the Representatives of any proposal to amend or supplement the Registration
Statement or any Statutory Prospectus at any time and will offer the Representatives a
reasonable opportunity to comment on any such amendment or supplement; and the Company will
also advise the Representatives promptly of (i) the filing of any such amendment or
supplement, (ii) any request by the Commission or its staff for any amendment to the
Registration Statement, for any supplement to any Statutory Prospectus or for any additional
information, (iii) the institution by the Commission of any stop order proceedings in
respect of the Registration Statement or the threatening of any proceeding for that purpose,
and (iv) the receipt by the Company of any notification with respect to the suspension of
the qualification of the Offered Securities in any jurisdiction or the institution or
threatening of any proceedings for such purpose. The Company will use its best efforts to
prevent the issuance of any such stop order or the suspension of any such qualification and,
if issued, to obtain as soon as possible the withdrawal thereof.
(iii) Continued Compliance with Securities Laws. If, at any time when a
prospectus relating to the Offered Securities is (or but for the exemption in Rule 172 would
be) required to be delivered under the Act by any Underwriter or dealer, any event occurs as
a result of which the Final Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, or if it is necessary at any time to amend the Registration Statement or
supplement the Final Prospectus to comply with the Act, the Company will promptly notify the
Representatives of such event and will promptly prepare and file with the Commission and
furnish, at its own expense, to the Underwriters and the dealers and any other dealers upon
request of the Representatives, an amendment or supplement which will correct such statement
or omission or an amendment which will effect such
compliance. Neither the Representatives’ consent to, nor the Underwriters’ delivery
of, any such amendment or supplement shall constitute a waiver of any of the conditions set
forth in Section 8 hereof.
(iv) Rule 158. As soon as practicable, but not later than 16 months, after the
date of this Agreement, the Company will make generally available to its securityholders an
earnings statement covering a period of at least 12 months beginning after the date of this
Agreement and satisfying the provisions of Section 11(a) of the Act and Rule 158.
(v) Furnishing of Prospectuses. The Company will furnish to the
Representatives copies of the Registration Statement, including all exhibits, any Statutory
Prospectus, the Final Prospectus and all amendments and supplements to such
14
documents, in
each case as soon as available and in such quantities as the Representatives reasonably
request. The Final Prospectus shall be so furnished on or prior to 5:00 pm (Eastern time)
on the business day following the execution and delivery of this Agreement. The Company
will pay the expenses of printing and distributing to the Underwriters all such documents.
(vi) Blue Sky Qualifications. The Company will arrange for the qualification
of the Offered Securities for sale under the laws of such jurisdictions as the
Representatives designate and will continue such qualifications in effect so long as
required for the distribution.
(vii) Reporting Requirements. During the period of five years hereafter, the
Company will furnish to the Representatives and, upon request, to each of the other
Underwriters, as soon as practicable after the end of each fiscal year, a copy of its annual
report to stockholders for such year; and the Company will furnish to the Representatives
(i) as soon as available, a copy of each report and any definitive proxy statement of the
Company filed with the Commission under the Exchange Act or mailed to stockholders, and (ii)
from time to time, such other information concerning the Company as the Representatives may
reasonably request. However, so long as the Company is subject to the reporting
requirements of either Section 13 or Section 15(d) of the Exchange Act and is timely filing
reports with the Commission on its Electronic Data Gathering, Analysis and Retrieval system
(“XXXXX”), it is not required to furnish such reports or statements to the
Underwriters.
(viii) Payment of Expenses. The Company will pay all expenses incident to the
performance of its obligations under this Agreement, including but not limited to any filing
fees and other expenses incurred in connection with qualification of the Offered Securities
for sale under the laws of such jurisdictions as the Representatives designate and the
preparation and printing of memoranda relating thereto (“Blue Sky Memoranda”), costs
and expenses related to the review by the Financial Industry Regulatory Authority, Inc. of
the Offered Securities, if any (“FINRA Filings”), any fees and expenses incident to
the inclusion of the Offered Securities on the NASDAQ Global Select Market and other
national or foreign exchanges, fees and expenses in connection with the registration of the
Offered Securities under the Act, expenses incurred in
distributing preliminary prospectuses and the Final Prospectus (including any
amendments and supplements thereto) to the Underwriters, expenses incurred for preparing,
printing and distributing any Issuer Free Writing Prospectuses to investors or prospective
investors. The out of pocket expenses of any “roadshow” in connection with the offering and
sale of the Offered Securities shall be borne 50% by the Selling Stockholders (pro rata in
proportion to the amount of Offered Securities included in the Offering) and 50% by the
Underwriters; provided, that the Underwriters agree that the Selling Stockholders shall in
no event be responsible for more than $30,000 of such expenses and the Underwriters shall be
responsible for any amount in excess thereof. The Selling Stockholders and the Underwriters
agree to reimburse the Company for its out of pocket expenses in connection with attending
the “road show” not otherwise borne by the Selling Stockholders or Underwriters directly in
accordance with the foregoing allocation. Neither the Company nor the Selling Stockholders
shall be responsible for
15
fees and disbursements of counsel to the Underwriters other than
reasonable fees and disbursements in connection with the preparation of Blue Sky Memoranda
and FINRA Filings. Except as provided in this paragraph and Section 9 hereof, neither the
Company nor the Selling Stockholders shall be responsible for any other expenses of the
Underwriters.
(ix) Absence of Manipulation — Company. The Company will not take, directly
or indirectly, any action designed to or that would constitute or that might reasonably be
expected to cause or result in, stabilization or manipulation of the price of any securities
of the Company to facilitate the sale or resale of the Offered Securities in violation of
the Act, the Exchange Act and the Rules and Regulations.
(x) Absence of Manipulation — Selling Stockholders. The Selling Stockholders
will not take, directly or indirectly, any action designed to or that would constitute or
that might reasonably be expected to cause or result in, stabilization or manipulation of
the price of any securities of the Company to facilitate the sale or resale of the Offered
Securities in violation of the Act, the Exchange Act and the Rules and Regulations.
(xi) Restriction on Sale of Securities. For the period specified below (the
“Lock-Up Period”), the Company will not, directly or indirectly, take any of the
following actions with respect to its Securities or any securities convertible into or
exchangeable or exercisable for any of its Securities (“Lock-Up Securities”): (i)
offer, sell, issue, contract to sell, pledge or otherwise dispose of Lock-Up Securities,
(ii) offer, sell, issue, contract to sell, contract to purchase or grant any option, right
or warrant to purchase Lock-Up Securities, (iii) enter into any swap, hedge or any other
agreement that transfers, in whole or in part, the economic consequences of ownership of
Lock-Up Securities, (iv) establish or increase a put equivalent position or liquidate or
decrease a call equivalent position in Lock-Up Securities within the meaning of Section 16
of the Exchange Act or (v) file with the Commission a registration statement under the Act
relating to Lock-Up Securities, or publicly disclose the intention to take any such action,
without the prior written consent of Credit Suisse, except (a) grants of employee stock
options, restricted stock units or other equity-based awards in the ordinary course of
business pursuant to the terms of an employee benefit plan or similar arrangement
described in the General Disclosure Package in effect on the date hereof or (b)
issuances of Lock-Up Securities pursuant to the exercise of such options, restricted stock
units or equity awards. The initial Lock-Up Period will commence on the date hereof and
continue for 90 days after the date hereof or such earlier date that Credit Suisse consents
to in writing; provided, however, that if (1) during the last 17 days of the initial Lock-Up
Period, the Company releases earnings results or material news or a material event relating
to the Company occurs or (2) prior to the expiration of the initial Lock-Up Period, the
Company announces that it will release earnings results during the 16-day period beginning
on the last day of the initial Lock-Up Period, then in each case the Lock-Up Period will be
extended until the expiration of the 18-day period beginning on the date of release of the
earnings results or the occurrence of the materials news or material event, as applicable,
unless Credit Suisse waives, in writing, such extension. The Company will provide the
Representatives with notice of any announcement
16
described in clause (2) of the preceding
sentence that gives rise to an extension of the Lock-Up Period.
(b) Each Selling Stockholder agrees with the several Underwriters that if, at any time when a
prospectus relating to the Offered Securities is (or but for the exemption in Rule 172 would be)
required to be delivered under the Act by any Underwriter or dealer, any event occurs as a result
of which the General Disclosure Package or the Final Prospectus as then amended or supplemented
would include an untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not
misleading, to the extent that any such statements or omissions made in the General Disclosure
Package or the Final Prospectus are made in reliance upon and in conformity with the Selling
Stockholder Information, the Selling Stockholder will promptly notify the Representatives of such
event.
7. Free Writing Prospectuses. The Company represents and agrees that, unless it obtains the prior consent of Credit
Suisse, and each Underwriter represents and agrees that, unless it obtains the prior consent of the
Company and Credit Suisse, it has not made and will not make any offer relating to the Offered
Securities that would constitute an Issuer Free Writing Prospectus, or that would otherwise
constitute a “free writing prospectus,” as defined in Rule 405, required to be filed
with the Commission. Any such free writing prospectus consented to by the Company and Credit
Suisse is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company
represents that it has treated and agrees that it will treat each Permitted Free Writing Prospectus
as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and
will comply with the requirements of Rules 164 and 433 applicable to any Permitted Free Writing
Prospectus, including timely Commission filing where required, legending and record keeping.
8. Conditions of the Obligations of the Underwriters. The obligations of the several Underwriters to purchase and pay for the Firm Securities on
the First Closing Date and the Optional Securities to be purchased on each Optional Closing Date
will be subject to the accuracy of the representations and warranties of the Company and the
Selling Stockholders herein (as though made on such Closing Date), to the accuracy of the
statements of officers of the Company and the Selling Stockholders made pursuant to the
provisions hereof, to the performance by the Company and the Selling Stockholders of their
obligations hereunder and to the following additional conditions precedent:
(a) Accountants’ Comfort Letter. The Representatives shall have received letters,
dated, respectively, the date hereof and each Closing Date, of Ernst & Young LLP confirming that
they are a registered public accounting firm and independent public accountants within the meaning
of the Securities Laws and substantially in the form of Schedule E hereto (except that, in
any letter dated a Closing Date, the specified date referred to in Schedule E hereto shall
be a date no more than three days prior to such Closing Date).
(b) Filing of Prospectus. The Final Prospectus shall have been filed with the
Commission in accordance with the Rules and Regulations and Section 6(a)(i) hereof. No stop order
suspending the effectiveness of the Registration Statement or of any part thereof shall have
17
been
issued and no proceedings for that purpose shall have been instituted or, to the knowledge of the
Company or any Underwriter, shall be contemplated by the Commission.
(c) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or event involving a
prospective change, in the condition (financial or otherwise), results of operations, business,
properties or prospects of the Company and its subsidiaries taken as a whole which, in the judgment
of Credit Suisse, is material and adverse and makes it impractical or inadvisable to market the
Offered Securities; (ii) any downgrading in the rating of any indebtedness of the Company by any
“nationally recognized statistical rating organization” (as defined for purposes of Rule 436(g)),
or any public announcement that any such organization has under surveillance or review its rating
of any indebtedness of the Company (other than an announcement with positive implications of a
possible upgrading, and no implication of a possible downgrading, of such rating); (iii) any
change in either U.S. or international financial, political or economic conditions or currency
exchange rates or exchange controls the effect of which is such as to make it, in the judgment of
Credit Suisse, impractical to market or to enforce contracts for the sale of the Offered
Securities, whether in the primary market or in respect of dealings in the secondary market; (iv)
any suspension or material limitation of trading in securities generally on the New York Stock
Exchange, the NASDAQ Stock Market or the NASDAQ Global Select Market, or any setting of minimum or
maximum prices for trading on such exchange; (v) or any suspension of trading of any securities of
the Company on any exchange or in the over-the-counter market; (vi) any banking moratorium declared
by any U.S. federal or New York authorities; (vii) any major disruption of settlements of
securities, payment, or clearance services in the United States or any other country where such
securities are listed or (viii) any attack on, outbreak or escalation of hostilities or act of
terrorism involving the United States, any declaration of war by Congress or any other national or
international calamity or emergency if, in the judgment of Credit Suisse, the effect of any such
attack, outbreak, escalation, act, declaration, calamity or emergency is such as to make it
impractical or inadvisable to market the Offered Securities or to enforce contracts for the sale of
the Offered Securities.
(d) Opinion of Counsel for Company. The Representatives shall have received an
opinion, dated such Closing Date, of:
(i) Xxxx Xxxxx LLP, counsel for the Company, in form and substance reasonably
satisfactory to the Representatives; and
(ii) Xxxxxx X. Xxxxx, general counsel of the Company, in form and substance reasonably
satisfactory to the Representatives.
(e) Opinion of Counsel for Underwriters. The Representatives shall have received from
Xxxxxx & Xxxxxxx LLP, counsel for the Underwriters, such opinion or opinions, dated such Closing
Date, with respect to such matters as the Representatives may require, and the Company shall have
furnished to such counsel such documents as they request for the purpose of enabling them to pass
upon such matters.
(f) Opinion of Counsel for the Selling Stockholders. The Representatives shall have
received opinions, dated such Closing Date, of:
18
(i) Xxxxxxxx & Xxxxx LLP, counsel for GSO Special Situations Fund LP, GSO Capital
Opportunities Fund LP, GSO Special Situations Overseas Master Fund Ltd. and GSO Special
Situations Overseas Benefit Plan Fund Ltd., in form and substance reasonably satisfactory to
the Representatives;
(ii) Walkers, Cayman Islands counsel for GSO Special Situations Overseas Benefit Plan
Fund Ltd., in form and substance reasonably satisfactory to the Representatives;
(iii) Walkers, Cayman Islands counsel for GSO Special Situations Overseas Master Fund
Ltd., in form and substance reasonably satisfactory to the Representatives; and
(iv) Winston & Xxxxxx LLP, counsel for CML VII, LLC, in form and substance reasonably
satisfactory to the Representatives.
(g) Officer’s Certificate of the Company. The Representatives shall have received a
certificate, dated such Closing Date, of an executive officer of the Company and a principal
financial or accounting officer of the Company in which such officers, in such capacity, shall
state that: the representations and warranties of the Company in this Agreement are true and
correct; the Company has complied with all agreements and satisfied all conditions on its part to
be performed or satisfied hereunder at or prior to such Closing Date; no stop order suspending the
effectiveness of the Registration Statement has been issued and no proceedings for that purpose
have been instituted or, to the best of their knowledge and after reasonable investigation, are
contemplated by the Commission; and, subsequent to the date of the most recent financial statements
in the General Disclosure Package, there has been no material adverse change, nor any development
or event involving a prospective material adverse change, in the condition (financial or
otherwise), results of operations, business, properties or prospects of the Company and its
subsidiaries taken as a whole except as set forth in the General Disclosure Package or as described
in such certificate.
(h) Officer’s Certificate of the Selling Stockholders. The Representatives shall have
received a certificate, dated such Closing Date, of an authorized executive officer of
each Selling Stockholder, in which such officer, in such capacity, shall state that the
representations and warranties of such Selling Stockholder in this Agreement are true and correct
and such Selling Stockholder has complied with all agreements and satisfied all conditions on its
part to be performed or satisfied hereunder at or prior to such Closing Date.
(i) Lock-Up Agreements. Executed copies of an agreement (a) substantially in the form
set forth in Annex A hereto from each Selling Stockholder, (b) substantially in the form
set forth in Annex B-1 hereto from the Company’s directors and officers listed in Annex
B-3 hereto and (c) substantially in the form set forth in Annex B-2 hereto from Xxxxxxx
X. Xxxxx shall have been delivered to the Underwriters and shall be in full force and effect on
such Closing Date.
(j) Further Assurances; Waivers. The Company and the Selling Stockholders will furnish
the Representatives with such conformed copies of such opinions, certificates, letters
19
and
documents as the Representatives may reasonably request. Credit Suisse may in its sole discretion
waive on behalf of the Underwriters compliance with any conditions to the obligations of the
Underwriters hereunder, whether in respect of an Optional Closing Date or otherwise.
9. Indemnification and Contribution.
(a) Indemnification of the Underwriters.
(i) The Company will indemnify and hold harmless each Underwriter, its partners,
members, directors, officers, employees, agents, affiliates and each person, if any, who
controls such Underwriter within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act (each, an “Indemnified Party”), against any and all losses, claims,
damages or liabilities, joint or several, to which such Indemnified Party may become
subject, under the Act, the Exchange Act, other Federal or state statutory law or regulation
or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in any part of the Registration Statement at any time, any
Statutory Prospectus as of any time, the Final Prospectus or any Issuer Free Writing
Prospectus, or arise out of or are based upon the omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse each Indemnified Party for any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending
against any loss, claim, damage, liability, action, litigation, investigation or proceeding
whatsoever (whether or not such Indemnified Party is a party thereto), whether threatened or
commenced, and in connection with the enforcement of this provision with respect to any of
the above as such expenses are incurred; provided, however, that the Company will not be
liable in any such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement in or omission or
alleged omission from any of such documents in reliance upon and in conformity with the
Underwriter Information or Selling Stockholder Information.
(ii) The Selling Stockholders, severally and not jointly, will indemnify and hold
harmless each Indemnified Party, against any and all losses, claims, damages or liabilities,
joint or several, to which such Indemnified Party may become subject, under the Act, the
Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact
contained in any part of the Registration Statement at any time, any Statutory Prospectus as
of any time, the Final Prospectus or any Issuer Free Writing Prospectus, in each case as
they related to such Selling Stockholder, or arise out of or are based upon the omission or
alleged omission of a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent, but only to the extent, that
such untrue statement or alleged untrue statement or omission or alleged omission was made
in the Registration Statement, any Statutory Prospectus, the Final Prospectus or any Issuer
Free Writing Prospectus in reliance upon and in conformity with the Selling Stockholder
Information of such Selling Stockholder, and will reimburse each
20
Indemnified Party for any
legal or other expenses reasonably incurred by such Indemnified Party in connection with
investigating or defending against any loss, claim, damage, liability, action, litigation,
investigation or proceeding whatsoever (whether or not such Indemnified Party is a party
thereto), whether threatened or commenced, and in connection with the enforcement of this
provision with respect to any of the above as such expenses are incurred; provided, however,
that the Selling Stockholders will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement in or omission or alleged omission from any of such documents in
reliance upon and in conformity with the Underwriter Information; provided, further, that
the liability of each Selling Stockholder under this subsection shall not exceed the
aggregate net proceeds (after underwriting commissions and discounts, but without deducting
expenses) received by such Selling Stockholder from the sale of Securities sold by such
Selling Stockholder hereunder (the “Selling Stockholder Net Proceeds”).
(b) Indemnification of the Company and the Selling Stockholders by the Underwriters.
Each Underwriter will severally and not jointly indemnify and hold harmless the Company, each of
its directors and each of its officers who signs a Registration Statement and each person, if any,
who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange
Act, and any Selling Stockholder (each, an “Underwriter Indemnified Party”), against any
losses, claims, damages or liabilities to which such Underwriter Indemnified Party may become
subject, under the Act, the Exchange Act, other Federal or state statutory law or regulation or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement of any material
fact contained in any part of the Registration Statement at any time, any Statutory Prospectus as
of any time, the Final Prospectus, or any Issuer Free Writing Prospectus, or arise out of or are
based upon the omission or the alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished to the Company by
such Underwriter through the Representatives specifically for use therein (the “Underwriter
Information”), and will reimburse any legal or
other expenses reasonably incurred by such Underwriter Indemnified Party in connection with
investigating or defending against any such loss, claim, damage, liability, action, litigation,
investigation or proceeding whatsoever (whether or not such Underwriter Indemnified Party is a
party thereto), whether threatened or commenced, based upon any such untrue statement or omission,
or any such alleged untrue statement or omission as such expenses are incurred, it being understood
and agreed that the Underwriter Information consists of the following information furnished on
behalf of each Underwriter: the concession figure appearing in the fifth paragraph and the
information contained in the eleventh and twelfth paragraphs under the caption “Underwriting” in
the Final Prospectus.
(c) Actions against Parties; Notification. Promptly after receipt by an indemnified
party under this Section of notice of the commencement of any action, such indemnified party will,
if a claim in respect thereof is to be made against the indemnifying party under subsection (a) or
(b) above, notify the indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve it from any liability that it may
21
have under subsection (a) or
(b) above except to the extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided, further, that the failure to notify
the indemnifying party shall not relieve it from any liability that it may
have to an indemnified
party otherwise than under subsection (a) or (b) above. In case any such action is brought against
any indemnified party and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the indemnifying
party will not be liable to such indemnified party under this Section for any legal or other
expenses subsequently incurred by such indemnified party in connection with the defense thereof
other than reasonable costs of investigation. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement of any pending or threatened action
in respect of which any indemnified party is or could have been a party and indemnity could have
been sought hereunder by such indemnified party unless such settlement (i) includes an
unconditional release of such indemnified party from all liability on any claims that are the
subject matter of such action and (ii) does not include a statement as to, or an admission of,
fault, culpability or a failure to act by or on behalf of an indemnified party.
(d) Contribution. If the indemnification provided for in this Section is unavailable
or insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then each
indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above (i)
in such proportion as is appropriate to reflect the relative benefits received by the Company and
the Selling Stockholders on the one hand and the Underwriters on the other from the offering of the
Offered Securities 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 Selling
Stockholders on the one hand and the Underwriters on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities as well as any other
relevant equitable considerations. The relative benefits received by the Company and
the Selling Stockholders on the one hand and the Underwriters on the other shall be deemed to
be in the same proportion as the total net proceeds from the offering (before deducting expenses)
received by the Selling Stockholders bear to the total underwriting discounts and commissions
received by the Underwriters. The relative fault shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company, the
Selling Stockholders or the Underwriters and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The amount
paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to
in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any
action or claim which is the subject of this subsection (d). Notwithstanding the provisions of this
subsection (d), (i) no Underwriter shall be required to contribute any amount in excess of the
amount by which the total price at which the Securities underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which such Underwriter
22
has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission and (ii) no Selling Stockholder shall be required to contribute any amount in
excess of the Selling Stockholder Net Proceeds received by such Selling Stockholder. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to
their respective underwriting obligations and not joint. The Company, the Selling Stockholders and
the Underwriters agree that it would not be just and equitable if contribution pursuant to this
Section 9(d) 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 9(d).
10. Default of Underwriters. If any Underwriter or Underwriters default in their obligations to purchase Offered
Securities hereunder on either the First or any Optional Closing Date and the aggregate number of
shares of Offered Securities that such defaulting Underwriter or Underwriters agreed but failed to
purchase does not exceed 10% of the total number of shares of Offered Securities that the
Underwriters are obligated to purchase on such Closing Date, Credit Suisse may make arrangements
for the purchase of such Offered Securities by other persons, including any of the Underwriters,
but if no such arrangements are made by such Closing Date, the non-defaulting Underwriters shall be
obligated severally, in proportion to their respective commitments hereunder, to purchase the
Offered Securities that such defaulting Underwriters agreed but failed to purchase on such Closing
Date. If any Underwriter or Underwriters so default and the number of shares of Offered Securities
with respect to which such default or defaults occur exceeds 10% of the total number of shares of
Offered Securities that the Underwriters are obligated to purchase on such Closing Date and
arrangements satisfactory to Credit Suisse, the Company and the Selling Stockholders for the
purchase of such Offered Securities by other persons are not made within 36 hours after such
default, this Agreement will terminate without liability on the part of any non-defaulting
Underwriter, the Company or the Selling Stockholders, except as provided in Section 11 (provided,
that if such default occurs with respect to Optional Securities after the First Closing Date, this
Agreement will not terminate as to the Firm Securities or any
Optional Securities purchased prior to such termination). As used in this Agreement, the term
“Underwriter” includes any person substituted for an Underwriter under this Section. Nothing herein
will relieve a defaulting Underwriter from liability for its default.
11. Survival of Certain Representations and Obligations. The respective indemnities, agreements, representations, warranties and other statements of
the Selling Stockholders, of the Company or its officers and of the several Underwriters set forth
in or made pursuant to this Agreement will remain in full force and effect, regardless of any
investigation, or statement as to the results thereof, made by or on behalf of any Underwriter, any
Selling Stockholder, the Company or any of their respective representatives, officers or directors
or any controlling person, and will survive delivery of and payment for the Offered Securities. If
the purchase of the Offered Securities by the Underwriters is not consummated for any reason other
than solely because of the termination of this Agreement pursuant to Section 10 hereof, the Company
will reimburse the Underwriters for all out-of-pocket expenses (including fees and disbursements of
counsel) reasonably incurred by them in connection with the offering of the Offered Securities, and
the respective obligations of the Company and the Underwriters pursuant to Section 9 hereof
23
shall
remain in effect. In addition, if any Offered Securities have been purchased hereunder, the
representations and warranties in Section 2 and all obligations under Section 6 shall also remain
in effect.
12. Notices. All communications hereunder will be in writing and:
(a) if sent to the Underwriters, will be mailed, delivered or telegraphed and confirmed to the
Representatives c/o Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, N.Y.
10010-3629, Attention: LCD-IBD; provided, however, that any notice to an Underwriter pursuant to
Section 9 will be mailed, delivered or telegraphed and confirmed to such Underwriter;
(b) if sent to the Company, will be mailed, delivered or telegraphed and confirmed to it at
Standard Parking Corporation, 000 X. Xxxxxxxx Xxxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000-0000,
Attention: General Counsel;
(c) if sent to GSO Special Situations Fund LP, GSO Special Situations Overseas Master Fund,
Ltd., GSO Special Situations Overseas Benefit Plan Fund, Ltd. or GSO Capital Opportunities Fund LP,
will be mailed, delivered or telegraphed and confirmed to such Selling Stockholders c/o GSO Capital
Partners LP, at 000 Xxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Xxxxxx
Fan; or
(d) if sent to CML VII, LLC, will be mailed, delivered or telegraphed and confirmed to such
Selling Stockholder c/o Contrarian Capital Finance, L.P., 000 X. Xxxxxx Xxxxxx, Xxxxx 000,
Xxxxxxxxx, Xxxxxxxxxxx 00000, Attention: Xxxxx XxXxxxxxx.
13. Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto and
their respective successors and the officers and directors and controlling persons referred to in
Section 9, and no other person will have any right or obligation hereunder.
14. Representation of Underwriters. The Representatives will act for the several Underwriters in connection with the
transactions contemplated by this Agreement, and any action under this Agreement taken by the
Representatives will be binding upon all the Underwriters.
15. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed
to be an original, but all such counterparts shall together constitute one and the same Agreement.
16. Absence of Fiduciary Relationship. The Company and the Selling Stockholders acknowledge and agree that:
(a) No Other Relationship. The Representatives have been retained solely to act as
underwriters in connection with the sale of Offered Securities and that no fiduciary, advisory or
agency relationship between the Company and the Representatives has been created in respect of any
of the transactions contemplated by this Agreement or the Final Prospectus, irrespective of whether
the Representatives have advised or is advising the Company on other matters.
24
(b) Arms’ Length Negotiations. The price of the Offered Securities set forth in this
Agreement was established by the Selling Stockholders following discussions and arms-length
negotiations with the Representatives, and the Company and the Selling Stockholders are capable of
evaluating and understanding and understands and accepts the terms, risks and conditions of the
transactions contemplated by this Agreement.
(c) Absence of Obligation to Disclose. The Company and the Selling Stockholders have
been advised that the Representatives and their affiliates are engaged in a broad range of
transactions which may involve interests that differ from those of the Company or the Selling
Stockholders and that the Representatives have no obligation to disclose such interests and
transactions to the Company or the Selling Stockholders by virtue of any fiduciary, advisory or
agency relationship.
(d) Waiver. The Company and the Selling Stockholders waive, to the fullest extent
permitted by law, any claims it may have against the Representatives for breach of fiduciary duty
or alleged breach of fiduciary duty and agrees that the Representatives shall have no liability
(whether direct or indirect) to the Company or the Selling Stockholders in respect of such a
fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of
the Company, including stockholders, employees or creditors of the Company.
17. Applicable Law. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York.
18. Submission to Jurisdiction. The Company and each Selling Stockholder hereby
submits to the non-exclusive jurisdiction of the Federal and state courts in the Borough of
Manhattan in The City of New York in any suit or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby. The Company and each Selling Stockholder
irrevocably and unconditionally waives any objection to the laying of venue of any suit or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby in
Federal and state courts in the Borough of Manhattan in The City of New York and irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such suit or
proceeding in any such court has been brought in an inconvenient forum.
25
If the foregoing is in accordance with the Representatives’ understanding of our agreement,
kindly sign and return to the Company one of the counterparts hereof, whereupon it will become a
binding agreement among the Company, the Selling Stockholders and the several Underwriters in
accordance with its terms.
Very truly yours, | ||||||||||
Standard Parking Corporation | ||||||||||
By: | /s/ Xxxxxxx X Xxxx | |||||||||
Name: | ||||||||||
Title: | Executive Vice President |
Signature Page to Standard Parking Corporation Underwriting Agreement
Selling Stockholders listed on Schedule A | ||||||||
GSO Special Situations Fund LP | ||||||||
By: GSO Capital Partners LP, its Investment Advisor |
||||||||
By: | /s/ Xxxxxx Fan | |||||||
Name: | ||||||||
Title: | AUTHORIZED SIGNATORY | |||||||
GSO Special Situations Overseas Master Fund Ltd. | ||||||||
By: GSO Capital Partners LP, its Investment Manager |
||||||||
By: | /s/ Xxxxxx Fan | |||||||
Name: | ||||||||
Title: | AUTHORIZED SIGNATORY | |||||||
GSO Special Situations Overseas Benefit Plan Fund Ltd. | ||||||||
By: GSO Capital Partners LP, its Investment Manager |
||||||||
By: | /s/ Xxxxxx Fan | |||||||
Name: | ||||||||
Title: | AUTHORIZED SIGNATORY | |||||||
GSO Capital Opportunities Fund LP | ||||||||
By: GSO Capital Partners LP, its Investment Advisor |
||||||||
By: | /s/ Xxxxxx Fan | |||||||
Name: | ||||||||
Title: | AUTHORIZED SIGNATORY |
CML VII, LLC | ||||||||
By: Contrarian Funds, L.L.C., its sole member By: Contrarian Capital Management, L.L.C., its manager |
||||||||
By: Name: |
/s/ Xxx X. Xxxxx
|
|||||||
Title: | Managing Member |
Signature Page to Standard Parking Corporation Underwriting Agreement
The foregoing Underwriting Agreement is hereby
confirmed and accepted as of the date first
above written.
Credit Suisse Securities (USA) LLC | ||||
By: |
/s/ Xxxx Xxxxxxx | |||
Title: Managing Director | ||||
Xxxxxxx Xxxxx & Company, L.L.C. | ||||
By:
|
/s/ Xxxxx Xxxxxxxxx |
|||
Title: Principal | ||||
Acting on behalf of themselves and as the
Representatives of the several
Underwriters
Signature Page to Standard Parking Corporation Underwriting Agreement
SCHEDULE A
Selling Stockholders
Number of | Number of | |||||||
Firm Securities | Optional Securities | |||||||
Selling Stockholders | to be Sold | to be Sold | ||||||
GSO Special Situations Fund LP |
2,178,617 | 326,792 | ||||||
GSO Special Situations Overseas
Master Fund Ltd. |
1,463,627 | 243,636 | ||||||
GSO Special Situations Overseas
Benefit Plan Fund Ltd. |
160,615 | 0 | ||||||
GSO Capital Opportunities Fund LP |
1,214,655 | 182,199 | ||||||
CML VII, LLC |
1,575,392 | 236,309 | ||||||
Total |
6,592,906 | 988,936 | ||||||
SCHEDULE B
Number of | ||||
Firm Securities | ||||
Underwriter |
to be Purchased | |||
Credit Suisse Securities (USA) LLC |
3,296,453 | |||
Xxxxxxx
Xxxxx & Company, L.L.C. |
3,296,453 | |||
Total |
6,592,906 | |||
SCHEDULE C
1. | General Use Free Writing Prospectuses (included in the General Disclosure Package) | |
“General Use Issuer Free Writing Prospectus” includes each of the following documents: | ||
None. | ||
2. | Other Information Included in the General Disclosure Package | |
The following information is also included in the General Disclosure Package: | ||
1. Number of Offered Securities. | ||
2. The price to the public of the Offered Securities. |
SCHEDULE D
Significant Subsidiaries
Jurisdiction of | ||
Name | Organization | |
None. |
SCHEDULE E
The Representatives shall have received letters, dated, respectively, the date hereof and the
First Closing Date, of Ernst & Young LLP confirming that they are a registered public accounting
firm and independent public accountants within the meaning of the Securities Laws to the effect
that:
(i) in their opinion the audited consolidated financial statements and
schedules examined by them and included in the Registration Statements
and the General Disclosure Package comply as to form in all material respects with
the applicable accounting requirements of the Securities Laws;
(ii) with respect to the period(s) covered by the unaudited quarterly
consolidated financial statements included in the Registration Statement and the
General Disclosure Package, they have performed the procedures specified by the
American Institute of Certified Public Accountants for a review of interim financial
information as described in XX 000, Xxxxxxx Financial Information, on the unaudited
quarterly consolidated financial statements (including the noted thereto) of the
Company and its consolidated subsidiaries included in the Registration Statement and
the General Disclosure Package, and have made inquiries of certain officials of the
Company who have responsibility for financial and accounting matters of the Company
and its consolidated subsidiaries as to whether such unaudited quarterly
consolidated financial statements comply as to form in all material respects with
the applicable accounting requirements of the Securities Act and the related
published rules and regulations; they have read the latest unaudited monthly
consolidated financial statements (including the notes thereto) and the
supplementary summary unaudited financial information of the Company and its
consolidated subsidiaries made available by the Company and the minutes of the
meetings of the stockholders, Board of Directors and committees of the Board of
Directors of the Company; and have made inquiries of certain officials of the
Company who have responsibility for financial and accounting matters of the Company
and its consolidated subsidiaries as to whether the unaudited monthly financial
statements are stated on a basis substantially consistent with that of the audited
consolidated financial statements included in the Registration Statement and General
Disclosure Package; and on the basis thereof, nothing came to their attention which
caused them to believe that:
(A) the unaudited financial statements included in the Registration
Statement or the General Disclosure Package do not comply as to form in all
material respects with the applicable accounting requirements of the
Securities Laws, or that any material modifications should be made to the
unaudited quarterly consolidated financial statements for them to
be in conformity with generally accepted accounting principles; and
(B) with respect to the period subsequent to the date of the most
recent unaudited quarterly consolidated financial statements included in
the General Disclosure Package, at a specified date at the end of the
most recent month, there were any increases in the short-term debt or
long-term debt of the Company and its consolidated subsidiaries, or any
change in stockholders’ equity or the consolidated capital stock of the
Company and its consolidated subsidiaries or any decreases in the net
current assets or net assets of the Company and its
consolidated subsidiaries, as compared with the amounts shown on
the latest balance sheet included in the General Disclosure Package; or for
the period from the day after the date of the most recent unaudited
quarterly consolidated financial statements for such entities included in
the General Disclosure Package to such specified date, there were any
decreases, as compared with the corresponding period in the preceding year,
in consolidated net sales or net operating income, or in the total or per
share amounts of consolidated net income of the Company and its consolidated
subsidiaries, except for such changes, increases or decreases set forth in
such letter which the General Disclosure Package discloses have occurred or
may occur;
(iii) With respect to any period as to which officials of the Company have
advised that no consolidated financial statements as of any date or for any period
subsequent to the specified date referred to in (ii)(B) above are available, they
have made inquiries of certain officials of the Company who have responsibility for
the financial and accounting matters of the Company and its consolidated
subsidiaries as to whether, at a specified date not more than three business days
prior to the date of such letter, there were any increases in the short-term debt or
long-term debt of the Company and its consolidated subsidiaries, or any change in
stockholders’ equity or the consolidated capital stock of the Company and its
consolidated subsidiaries or any decreases in the net assets of the Company and its
consolidated subsidiaries, as compared with the amounts shown on the most recent
balance sheet for such entities included in the General Disclosure Package; or for
the period from the day after the date of the most recent unaudited quarterly
financial statements for such entities included in the General Disclosure Package to
such specified date, there were any decreases, as compared with the corresponding
period in the preceding year, in net sales, or net operating income, or in the total
or per share amounts of consolidated net income of the Company and its consolidated
subsidiaries and, on the basis of such inquiries and the review of the minutes
described in paragraph (ii) above, nothing came to their attention which caused them
to believe that there was any such change, increase, or decrease, except for such
changes, increases or decreases set forth in such letter which the General
Disclosure Package discloses have occurred or may occur; and
(iv) they have compared specified dollar amounts (or percentages derived from
such dollar amounts) and other financial and statistical information contained in
the Registration Statement, each Issuer Free Writing Prospectus (other than any
Issuer Free Writing Prospectus that is an “electronic road show,” as defined in Rule
433(h)) and the General Disclosure Package (in each case to the extent that such
dollar amounts, percentages and other financial and statistical information are
derived from the general accounting records of the Company and
its subsidiaries or are derived directly from such records by analysis or
computation) with the results obtained from inquiries, a reading of such general
accounting records and other procedures specified in such letter and have found such
dollar amounts, percentages and other financial and statistical information to be in
agreement with such results.
All financial statements and schedules included in material incorporated by reference
into the Registration Statement or the General Disclosure Package shall be deemed included
in the Registration Statement or the General Disclosure Package for purposes of this
Schedule.