Exhibit 1(b)
[DRAFT -- 10/31/96]
2,400,000 Shares
FURNITURE BRANDS INTERNATIONAL, INC.
Common Stock
INTERNATIONAL UNDERWRITING AGREEMENT
------------------------------------
November __, 1996
XXXXX XXXXXX INC.
CS FIRST BOSTON LIMITED
XXXXXX, READ & CO. INC.
XXXXXXX XXXXX INTERNATIONAL
WHEAT, FIRST SECURITIES, INC.
As Lead Managers for the Several Managers
c/o XXXXX XXXXXX INC.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Dear Sirs:
Certain stockholders named in Schedule II hereto (the "Selling
Stockholders") of Furniture Brands International, Inc. (the "Company"), propose
to sell an aggregate of 2,400,000 shares (the "Shares") of the common stock, no
par value per share of the Company (the "Common Stock"), to the several Managers
named in Schedule I hereto (the "Managers").
It is understood that the Company and the Selling Stockholders are
currently entering into a U.S. Underwriting Agreement, dated the date hereof
(the "U.S. Underwriting Agreement"), providing for the sale of 9,600,000 shares
of the Common Stock by the Selling Stockholders (the "U.S. Shares"), through
arrangements with certain underwriters in the United States and Canada (the
"U.S. Underwriters"), for whom Xxxxx Xxxxxx Inc., CS First Boston Corporation,
Xxxxxx, Read & Co. Inc., Xxxxxxx Xxxxx, Xxxxxx Xxxxxx & Xxxxx Incorporated and
Wheat, First Securities, Inc. are acting as representatives (the
"Representatives"). The Shares and the U.S. Shares, collectively, are herein
called the "Underwritten Shares".
The Company and the Selling Stockholders also understand that the Lead
Managers and the Representatives
2
have entered into an agreement (the "Agreement Between U.S. Underwriters and
Managers") contemplating the coordination of certain transactions between the
Managers and the U.S. Underwriters and that, pursuant thereto and subject to the
conditions set forth therein, the Managers may purchase from the U.S.
Underwriters a portion of the U.S. Shares or sell to the U.S. Underwriters a
portion of the Shares. The Company and the Selling Stockholders understand that
any such purchases and sales between the Managers and the U.S. Underwriters
shall be governed by the Agreement Between U.S. Underwriters and Managers and
shall not be governed by the terms of this Agreement or the U.S. Underwriting
Agreement.
The Company and the Selling Stockholders wish to confirm as follows their
respective agreements with you (the "Lead Managers") and the other several
Managers on whose behalf you are acting, in connection with the several
purchases of the Shares by the Managers.
1. Registration Statement and Prospectus. The Company has prepared and
-------------------------------------
filed with the Securities and Exchange Commission (the "Commission") in
accordance with the provisions of the Securities Act of 1933, as amended, and
the rules and regulations of the Commission thereunder (collectively, the
"Act"), a registration statement on Form S-3 under the Act (the "registration
statement"), including a prospectus subject to completion relating to the
Underwritten Shares. The term "Registration Statement" as used in this
Agreement means the registration statement (including all financial schedules
and exhibits), as amended at the time it becomes effective, or, if the
registration statement became effective prior to the execution of this
Agreement, as supplemented or amended prior to the execution of this Agreement.
If it is contemplated, at the time this Agreement is executed, that a post-
effective amendment to the registration statement will be filed and must be
declared effective before the offering of the Shares may commence, the term
"Registration Statment" as used in this Agreement means the registration
statement as amended by said post-effective amendment. If an abbreviated
registration statement is prepared and filed with the Commission in accordance
with Rule 462(b) under the Act ("a Rule 462(b) Registration Statement"), the
term "Registration Statement" as used in this Agreement includes the Rule 462(b)
Registration Statement. The term "Prospectuses" as used in this Agreement means
the prospectuses in the form included in the Registration Statement, or, if the
prospectuses included in the Registration Statement omit
3
information in reliance on Rule 430A under the Act and such information is
included in prospectuses filed with the Commission pursuant to Rule 424(b) under
the Act, the term "Prospectuses" as used in this Agreement means the
prospectuses in the form included in the Registration Statement as supplemented
by the addition of the Rule 430A information contained in the prospectuses filed
with the Commission pursuant to Rule 424(b). The term "Prepricing Prospectuses"
as used in this Agreement means the prospectuses subject to completion in the
form included in the registration statement at the time of the initial filing of
the registration statement with the Commission, and as such prospectuses shall
have been amended from time to time prior to the date of the Prospectuses. Any
reference in this Agreement to the registration statement, the Registration
Statement, any Prepricing Prospectus or the Prospectuses shall be deemed to
refer to and include the documents incorporated by reference therein pursuant to
Item 12 of Form S-3 under the Act, as of the date of the registration statement,
the Registration Statement, such Prepricing Prospectus or the Prospectuses, as
the case may be, and any reference to any amendment or supplement to the
registration statement, the Registration Statement, any Prepricing Prospectus or
the Prospectuses shall be deemed to refer to and include any documents filed
after such date under the Securities Exchange Act of 1934, as amended (the
"Exchange Act") which, upon filing, are incorporated by reference therein, as
required by paragraph (b) of Item 12 of Form S-3. As used herein, the term
"Incorporated Documents" means the documents which at the time are incorporated
by reference in the registration statement, the Registration Statement, any
Prepricing Prospectus, the Prospectuses, or any amendment or supplement thereto.
It is understood that two forms of Prepricing Prospectus and two forms of
Prospectus are to be used in connection with the offering and sale of the
Underwritten Shares: a Prepricing Prospectus and a Prospectus relating to the
Shares that are to be offered and sold outside the United States (as defined
herein) or Canada (as defined herein) to persons other than U.S. or Canadian
Persons (the "International Prepricing Prospectus" and the "International
Prospectus", respectively), and a Prepricing Prospectus and a Prospectus
relating to the U.S. Shares which are to be offered and sold in the United
States and Canada to U.S. or Canadian Persons (the "U.S. Prepricing Prospectus"
and the "U.S. Prospectus", respectively). The International Prospectus and the
U.S. Prospectus are herein collectively
4
called the "Prospectuses," and the International Prepricing Prospectus and the
U.S. Prepricing Prospectus are herein collectively called the "Prepricing
Prospectuses". For purposes of this Agreement: "U.S. or Canadian Person" means
any resident or national of the United States or Canada, any corporation,
partnership or other entity created or organized in or under the laws of the
United States or Canada or any estate or trust the income of which is subject to
United States or Canadian income taxation regardless of the source of its income
(other than the foreign branch of any U.S. or Canadian Person), and includes any
United States or Canadian branch of a person other than a U.S. or Canadian
Person; "United States" means the United States of America (including the states
thereof and the District of Columbia) and its territories, its possessions and
other areas subject to its jurisdiction; and "Canada" means Canada and its
territories, its possessions and other areas subject to its jurisdiction.
2. Agreements to Sell and Purchase. Subject to such adjustments as you
-------------------------------
may determine in order to avoid fractional shares, each Selling Stockholder
agrees, severally and not jointly, subject to all the terms and conditions set
forth herein, to sell to each Manager and, upon the basis of the
representations, warranties and agreements of the Company and the Selling
Stockholders herein contained and subject to all the terms and conditions set
forth herein, each Manager, severally and not jointly, agrees to purchase from
each Selling Stockholder at a price per share of $_____(the "purchase price per
share") the number of Shares which bears the same proportion to the number of
Shares set forth opposite the name of such Selling Stockholder in Schedule II
hereto as the number of Shares set forth opposite the name of such Manager in
Schedule I hereto (or such number of Shares increased as set forth in Section 12
hereof) bears to the aggregate number of Shares to be sold by the Selling
Stockholders.
Each Manager represents, warrants, covenants and agrees that, except as
contemplated under Section 2 of the Agreement Between U.S. Underwriters and
Managers dated the date hereof (as described in the Prospectuses under
"Underwriting"), (i) it is not purchasing any Shares for the account of a U.S.
or Canadian Person and (ii) it has not offered or sold, and will not offer,
sell, resell or deliver, directly or indirectly, any Shares or distribute any
International Prospectus in the United States or Canada or to a U.S. or Canadian
Person.
5
3. Terms of Public Offering. The Company and the Selling Stockholders
------------------------
have been advised by you that the Managers propose to make a public offering of
their respective portions of the Shares as soon after the Registration Statement
and this Agreement have become effective as in your judgment is advisable and
initially to offer the Shares upon the terms set forth in the International
Prospectus.
4. Delivery of the Shares and Payment Therefor. Delivery to the Managers
-------------------------------------------
of and payment for the Shares shall be made at the office of Xxxxx Xxxxxx Inc.,
000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, XX 00000, at 10:00 A.M., New York City time, on
November ___, 1996 (the "Closing Date"). The place of closing for the Shares
and the Closing Date may be varied by agreement among you, the Company and the
Selling Stockholders.
Certificates for the Shares shall be registered in such names and in such
denominations as you shall request prior to 9:30 A.M., New York City time, on
the second business day preceding the Closing Date. Such certificates shall be
made available to you in New York City for inspection and packaging not later
than 9:30 A.M., New York City time, on the business day next preceding the
Closing Date. The certificates evidencing the Shares and shall be delivered to
you on the Closing Date, against payment of the purchase price therefor in
immediately available funds.
5. Agreements of the Company. The Company agrees with the several
-------------------------
Managers as follows:
(a) If, at the time this Agreement is executed and delivered, it is
necessary for the Registration Statement or a post-effective amendment thereto
or any Rule 462(b) Registration Statement to be declared effective before the
offering of the Shares may commence, the Company will endeavor to cause the
Registration Statement or such post-effective amendment to become effective as
soon as possible and will advise you promptly and, if requested by you, will
confirm such advice in writing, when the Registration Statement or such post-
effective amendment has become effective.
(b) The Company will advise you promptly and, if requested by you,
will confirm such advice in writing: (i) of any request by the Commission for
amendment of or a supplement to the Registration Statement, any Prepricing
6
Prospectus or the Prospectuses or for additional information; (ii) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of the suspension of qualification of the Shares for
offering or sale in any jurisdiction or the initiation of any proceeding for
such purpose; and (iii) within the period of time referred to in paragraph (f)
below, of any change in the Company's condition (financial or other), business,
prospects, properties, net worth or results of operations, or of the happening
of any event, which makes any statement of a material fact made in the
Registration Statement or the Prospectuses (as then amended or supplemented)
untrue or which requires the making of any additions to or changes in the
Registration Statement or the Prospectuses (as then amended or supplemented) in
order to state a material fact required by the Act or the regulations thereunder
to be stated therein or necessary in order to make the statements therein not
misleading, or of the necessity to amend or supplement the Prospectuses (as then
amended or supplemented) to comply with the Act or any other law. If at any
time the Commission shall issue any stop order suspending the effectiveness of
the Registration Statement, the Company will make every reasonable effort to
obtain the withdrawal of such order at the earliest possible time.
(c) The Company will furnish to you, without charge (i) six copies of
the registration statement as originally filed with the Commission and of each
amendment thereto, including financial statements and all exhibits to the
Registration Statement, and of any Rule 462(b) Registration Statement and any
amendment thereto, (ii) such number of conformed copies of the Registration
Statement as originally filed and of each amendment thereto, but without
exhibits, as you may reasonably request, (iii) such number of copies of the
Incorporated Documents, without exhibits, and of any Rule 462(b) Registration
Statement and any amendment thereto, as you may reasonably request, and (iv) six
copies of the exhibits to the Incorporated Documents.
(d) The Company will not file any amendment to the Registration
Statement, any Rule 462(b) Registration Statement or amendment thereto, or make
any amendment or supplement to the Prospectuses or, prior to the end of the
period of time referred to in the first sentence in subsection (f) below, file
any document which, upon filing becomes an Incorporated Document, of which you
shall not
7
previously have been advised or to which, after you shall have received a copy
of the document proposed to be filed, you shall reasonably object.
(e) Prior to the execution and delivery of this Agreement, the Company
has delivered to you, without charge, in such quantities as you have requested,
copies of each form of the International Prepricing Prospectus. The Company
consents to the use, in accordance with the provisions of the Act and with the
securities laws of the jurisdictions in which the Shares are offered by the
several Managers and by dealers, prior to the date of the International
Prospectus, of each International Prepricing Prospectus so furnished by the
Company.
(f) As soon after the execution and delivery of this Agreement as
possible and thereafter from time to time for such period as in the opinion of
counsel for the Managers a prospectus is required by the Act to be delivered in
connection with sales by any Manager or dealer, the Company will expeditiously
deliver to each Manager and each dealer, without charge, as many copies of the
International Prospectus (and of any amendment or supplement thereto) as you may
reasonably request. The Company consents to the use of the International
Prospectus (and of any amendment or supplement thereto) in accordance with the
provisions of the Act and with the securities laws of the jurisdictions in which
the Shares are offered by the several Managers and by all dealers to whom Shares
may be sold, both in connection with the offering and sale of the Shares and for
such period of time thereafter as the International Prospectus is required by
the Act to be delivered in connection with sales by any Manager or dealer. If
during such period of time any event shall occur that in the judgment of the
Company or in the opinion of counsel for the Managers is required to be set
forth in the International Prospectus (as then amended or supplemented) or
should be set forth therein in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, or if it
is necessary to supplement or amend the International Prospectus (or to file
under the Exchange Act any document which, upon filing, becomes an Incorporated
Document) in order to comply with the Act or any other law, the Company will
forthwith prepare and, subject to the provisions of paragraph (d) above, file
with the Commission an appropriate supplement or amendment thereto (or to such
document), and will expeditiously furnish to the Managers and dealers a
reasonable number of copies thereof. In the event that the
8
Company and you, as Lead Managers for the several Managers, agree that the
International Prospectus should be amended or supplemented, the Company, if
requested by you, will promptly issue a press release announcing or disclosing
the matters to be covered by the proposed amendment or supplement.
(g) The Company will cooperate with you and with counsel for the
Managers in connection with the registration or qualification of the Shares for
offering and sale by the several Managers and by dealers under the securities
laws of such jurisdictions as you may designate and will file such consents to
service of process or other documents necessary or appropriate in order to
effect such registration or qualification; provided that in no event shall the
Company be obligated to qualify to do business in any jurisdiction where it is
not now so qualified or to take any action which would subject it to service of
process in suits, other than those arising out of the offering or sale of the
Shares, in any jurisdiction where it is not now so subject.
(h) The Company will make generally available to its security holders
a consolidated earnings statement, which need not be audited, covering the
period specified by Section 11(a) of the Act and Rule 158 thereunder, as soon as
reasonably practicable, which consolidated earnings statement shall satisfy the
provisions of Section 11(a) of the Act and Rule 158 thereunder.
(i) During the period of five years hereafter, the Company will
furnish to you (i) upon your request, at such address as you may specify, as
soon as available, a copy of each report of the Company mailed to stockholders
or filed with the Commission, and (ii) from time to time such other information
concerning the Company as you may reasonably request.
(j) If this Agreement shall terminate or shall be terminated after
execution pursuant to any provisions hereof (otherwise than pursuant to the
second paragraph of Section 12 hereof or by notice given by you terminating this
Agreement pursuant to Section 12 or Section 13 hereof) or if this Agreement
shall be terminated by the Managers because of any failure or refusal on the
part of the Company or any of the Selling Stockholders to comply with the terms
or fulfill any of the conditions of this Agreement, the Company agrees to
reimburse the Lead Managers for all out-of-pocket
9
expenses (including reasonable fees and expenses of counsel for the Managers)
incurred by you in connection herewith.
(k) If Rule 430A of the Act is employed, the Company will timely file
the Prospectuses pursuant to Rule 424(b) under the Act and will advise you of
the time and manner of such filing.
(l) Except as provided in this Agreement, the Company will not sell,
contract to sell or otherwise dispose of any Common Stock (except shares issued
upon exercises of options outstanding under the Company's 1992 stock option plan
or upon exercise of outstanding warrants) or any securities convertible into or
exercisable or exchangeable for Common Stock, or grant any options (except any
options granted under the Company's 1992 stock option plan) or warrants to
purchase Common Stock, for a period of 120 days after the date of the
International Prospectus, without the prior written consent of Xxxxx Xxxxxx Inc.
(m) The Company has furnished or will furnish to you "lock-up"
letters, in form and substance satisfactory to you, signed by each of its
current officers and directors listed on Schedule III hereto.
(n) Except as stated in this Agreement and in the Prepricing
Prospectuses and Prospectuses, the Company has not taken, nor will it take,
directly or indirectly, any action designed to or that might reasonably be
expected to cause or result in stabilization or manipulation of the price of the
Common Stock to facilitate the sale or resale of the Shares.
(o) The Company will use all reasonable efforts to satisfy on or
before the Closing Date all conditions to the Managers' obligations to purchase
the Shares.
6. Agreements of the Selling Stockholders. Each of the Selling
--------------------------------------
Stockholders agrees with the several Managers as follows:
(a) Such Selling Stockholder will cooperate to the extent necessary
to cause the registration statement or any post-effective amendment thereto to
become effective at the earliest possible time.
(b) Such Selling Stockholder will pay all Federal and other taxes, if
any, on the transfer or sale of such
10
Shares that are sold by the Selling Stockholder to the Managers.
(c) Such Selling Stockholder will do or perform all things required
to be done or performed by the Selling Stockholder prior to the Closing Date to
satisfy all conditions precedent to the delivery of the Shares pursuant to this
Agreement.
(d) Except as provided in this Agreement and in the lock-up letter
referred to in paragraph (e) below, such Selling Stockholder will not sell or
otherwise dispose of any Common Stock for a period of 120 days after the date of
the International Prospectus, without the prior written consent of Xxxxx Xxxxxx
Inc.
(e) Such Selling Stockholder has furnished or will furnish to you a
"lock-up" letter, in form and substance satisfactory to you.
(f) Except as stated in this Agreement and the U.S. Underwriting
Agreement and in the Prepricing Prospectuses and the Prospectuses, such Selling
Stockholder has not taken, nor will it take, directly or indirectly, any action
designed to or that might reasonably be expected to cause or result in
stabilization or manipulation of the price of the Common Stock to facilitate the
sale or resale of the Shares.
7. Representations and Warranties of the Company. The Company represents
---------------------------------------------
and warrants to each Manager and Selling Stockholder that:
(a) Each International Prepricing Prospectus included as part of the
registration statement as originally filed or as part of any amendment or
supplement thereto, or filed pursuant to Rule 424 under the Act, complied when
so filed in all material respects with the provisions of the Act; except that
this representation and warranty does not apply to statements in or omissions
from such International Prepricing Prospectus (or any amendment or supplement
thereto) made in reliance upon and in conformity with information relating to
any Selling Stockholder or to any Manager or U.S. Underwriter furnished to the
Company in writing by a Manager through the Lead Managers or by a U.S.
Underwriter through the Representatives or by a Selling Stockholder expressly
for use therein. The Commission has
11
not issued any order preventing or suspending the use of any Prepricing
Prospectus.
(b) The Company and the transactions contemplated by this Agreement
meet the requirements for using Form S-3 under the Act. The registration
statement in the form in which it became or becomes effective and also in such
form as it may be when any post-effective amendment thereto or any Rule 462(b)
Registration Statement or amendment thereto shall become effective and the
International Prospectus and any supplement or amendment thereto when filed with
the Commission under Rule 424(b) under the Act, complied or will comply in all
material respects with the provisions of the Act and will not at any such times
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading; except that this representation and warranty does not apply to
statements in or omissions from the Registration Statement or the International
Prospectus made in reliance upon and in conformity with information relating to
any Selling Stockholder or to any Manager or U.S. Underwriter furnished to the
Company in writing by a Manager through the Lead Managers or by a U.S.
Underwriter through the Representatives or by a Selling Stockholder expressly
for use therein.
(c) The Incorporated Documents included in the Registration Statement
heretofore filed, when they were filed (or, if any amendment with respect to any
such document was filed, when such amendment was filed), conformed in all
material respects with the requirements of the Exchange Act and the rules and
regulations thereunder, and any further Incorporated Documents so filed will,
when they are filed, conform in all material respects with the requirements of
the Exchange Act and the rules and regulations thereunder; no such document when
it was filed (or, if an amendment with respect to any such document was filed,
when such amendment was filed), contained an untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein not misleading; and no such further
document, when it is filed, will contain an untrue statement of a material fact
or will omit to state a material fact required to be stated therein or necessary
in order to make the statements therein not misleading.
12
(d) All the outstanding shares of Common Stock of the Company,
including the Underwritten Shares, have been duly authorized and validly issued,
are fully paid and nonassessable and are free of any preemptive or similar
rights; and the capital stock of the Company conforms to the description thereof
in the Registration Statement and the Prospectuses.
(e) The Company is a corporation duly organized and validly existing
in good standing under the laws of the State of Delaware with full corporate
power and authority to own, lease and operate its properties and to conduct its
business as described in the Registration Statement and the Prospectuses, and is
duly registered and qualified to conduct its business and is in good standing in
each jurisdiction or place where the nature of its properties or the conduct of
its business requires such registration or qualification, except where the
failure so to register or qualify does not, individually or in the aggregate,
have a material adverse effect on the condition (financial or other), business,
properties, net worth or results of operations of the Company and the
Subsidiaries (as hereinafter defined) taken as a whole (a "Material Adverse
Effect").
(f) All the Company's subsidiaries (collectively, the "Subsidiaries")
are listed in an exhibit to the Company's Annual Report on Form 10-K which is
incorporated by reference into the Registration Statement (except for certain
immaterial subsidiaries formed since the filing thereof). Each of Action
Industries, Inc., Broyhill Furniture Industries, Inc., The Lane Company,
Incorporated, and Thomasville Furniture Industries, Inc. (the "Material
Subsidiaries") is a corporation duly organized, validly existing and in good
standing in the jurisdiction of its incorporation, with full corporate power and
authority to own, lease and operate its properties and to conduct its business
as described in the Registration Statement and the Prospectuses, and is duly
registered and qualified to conduct its business and is in good standing in each
jurisdiction or place where the nature of its properties or the conduct of its
business requires such registration or qualification, except where the failure
so to register or qualify does not, individually or in the aggregate, have a
Material Adverse Effect; all the outstanding shares of capital stock of each of
the Material Subsidiaries have been duly authorized and validly issued, are
fully paid and nonassessable, and are owned by the Company, free and clear
13
of any lien, adverse claim, security interest, equity, or other encumbrance,
except as described in the Registration Statement.
(g) There are no legal or governmental proceedings pending or, to the
knowledge of the Company, threatened, against the Company or any of the
Subsidiaries, or to which the Company or any of the Subsidiaries, or to which
any of their respective properties is subject, that are required to be described
in the Registration Statement or the Prospectuses but are not described as
required, and there are no agreements, contracts, indentures, leases or other
instruments that are required to be described in the Registration Statement or
the Prospectuses or to be filed as an exhibit to the Registration Statement or
any Incorporated Document therein that are not described or filed as required by
the Act or the Exchange Act.
(h) Neither the Company nor any of the Subsidiaries is in violation of
its certificate or articles of incorporation or by-laws, or other organizational
documents, or of any law, ordinance, administrative or governmental rule or
regulation applicable to the Company or any of the Subsidiaries or of any decree
of any court or governmental agency or body having jurisdiction over the Company
or any of the Subsidiaries, except any violations which will not, individually
or in the aggregate, have a Material Adverse Effect, or in default in any
material respect in the performance of any material obligation, agreement or
condition contained in any bond, debenture, note or any other evidence of
indebtedness or in any material agreement, indenture, lease or other instrument
to which the Company or any of the Subsidiaries is a party or by which any of
them or any of their respective properties may be bound (except where any such
default or defaults would not, individually or in the aggregate, have a Material
Adverse Effect).
(i) Neither the sale of the Underwritten Shares, the execution,
delivery or performance of this Agreement by the Company nor the consummation by
the Company of the transactions contemplated hereby (i) requires any consent,
approval, authorization or other order of or registration or filing with, any
court, regulatory body, administrative agency or other governmental body, agency
or official (except such as may be required for the registration of the Shares
under the Act and compliance with the securities or Blue Sky laws of various
jurisdictions, both of which have
14
been or will be effected in accordance with this Agreement) or conflicts or will
conflict with or constitutes or will constitute a breach of, or a default under,
the certificate or articles of incorporation or bylaws, or other organizational
documents, of the Company or any of the Subsidiaries or (ii) conflicts or will
conflict with or constitutes or will constitute a breach of, or a default under,
any agreement, indenture, lease or other instrument to which the Company or any
of the Subsidiaries is a party or by which any of them or any of their
respective properties may be bound, or violates or will violate any statute,
law, regulation or filing (except the securities or Blue Sky laws of the various
jurisdictions, as to which no representation or warranty is made) or judgment,
injunction, order or decree applicable to the Company or any of the Subsidiaries
or any of their respective properties, or will result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Company or any of the Subsidiaries pursuant to the terms of any agreement or
instrument to which any of them is a party or by which any of them may be bound
or to which any of the property or assets of any of them is subject.
(j) The accountants, KPMG Peat Marwick LLP, who have certified or
shall certify the financial statements included or incorporated by reference in
the Registration Statement and the Prospectuses (or any amendment or supplement
thereto) are independent public accountants as required by the Act.
(k) The financial statements, together with related schedules and
notes, included or incorporated by reference in the Registration Statement and
the Prospectuses (and any amendment or supplement thereto), present fairly, in
all material respects, the consolidated financial position, results of
operations and changes in financial position of the Company and the Subsidiaries
on the basis stated in the Registration Statement at the respective dates or for
the respective periods to which they apply; such statements and related
schedules and notes have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved,
except as disclosed therein; and the other financial and statistical information
and data relating to the Company and the Subsidiaries included or incorporated
by reference in the Registration Statement and the Prospectuses (and any
amendment or supplement thereto) are accurately presented in all material
respects and prepared on a basis
15
consistent with such financial statements and the books and records of the
Company and the Subsidiaries.
(l) The execution and delivery of, and the performance by the Company
of its obligations under, this Agreement have been duly and validly authorized
by the Company, and this Agreement has been duly executed and delivered by the
Company and constitutes the valid and legally binding agreement of the Company,
enforceable against the Company in accordance with its terms, except as rights
to indemnity and contribution hereunder may be limited by federal or state
securities laws and subject to the qualification that the enforceability of the
Company's obligations hereunder may be limited by bankruptcy, fraudulent
conveyance, insolvency, reorganization, moratorium, and other laws relating to
or affecting creditors' rights generally, and by general equitable principles.
(m) Except as disclosed in the Registration Statement and the
Prospectuses (or any amendment or supplement thereto), subsequent to the
respective dates as of which such information is given in the Registration
Statement and the Prospectuses (or any amendment or supplement thereto), neither
the Company nor any of the Subsidiaries has incurred any liability or
obligation, direct or contingent, or entered into any transaction, not in the
ordinary course of business, that is material to the Company and the
Subsidiaries taken as a whole, and there has not been any change in the capital
stock of the Company, or material increase in the short-term debt or long-term
debt of the Company or any of the Subsidiaries, or any material adverse change,
or any development involving or which may reasonably be expected to involve, a
prospective material adverse change, in the condition (financial or other),
business, net worth or results of operations of the Company and the Subsidiaries
taken as a whole.
(n) With only such exceptions as would not, individually or in the
aggregate, have a Material Adverse Effect, each of the Company and the
Subsidiaries has good and, in the case of real property, marketable title to all
property (real and personal) described in the Prospectuses as being owned by it,
free and clear of all liens, claims, security interests or other encumbrances
except such as are described in the Registration Statement and the Prospectuses
or in a document filed as an exhibit to the Registration Statement and all the
property described in the Prospectuses
16
as being held under lease by each of the Company and the Subsidiaries is held by
it under valid, subsisting and enforceable leases.
(o) The Company has not distributed and, prior to the later to occur
of (i) the Closing Date and (ii) completion of the distribution of the Shares,
will not distribute any offering material in connection with the offering and
sale of the Shares other than the Registration Statement, the Prepricing
Prospectuses, the Prospectuses or other materials, if any, permitted by the Act.
(p) The Company and each of the Subsidiaries has such material
permits, licenses, franchises and authorizations of governmental or regulatory
authorities ("permits") as are necessary to own its respective properties and to
conduct its business in all material respects in the manner described in the
Prospectuses, subject to such qualifications as may be set forth in the
Prospectuses; the Company and each of the Subsidiaries has fulfilled and
performed all its material obligations with respect to such permits and no event
has occurred which allows, or after notice or lapse of time would allow,
revocation or termination thereof or results in any other material impairment of
the rights of the holder of any such permit, subject in each case to such
qualification as may be set forth in the Prospectuses; and, except as described
in the Prospectuses, none of such permits contains any restriction that is
materially burdensome to the Company or any of the Subsidiaries.
(q) The properties, assets and operations of the Company and its
Subsidiaries comply with all applicable Environmental Laws (as defined below),
except to the extent that failure so to comply would not, individually or in the
aggregate, have a Material Adverse Effect. Except as specifically described in
the Prospectuses, none of the property, assets or operations of the Company or
its Subsidiaries is the subject of any investigation by any federal, state,
local or foreign governmental agency evaluating whether any remedial action is
needed to respond to a release of any Hazardous Materials (as defined below)
into the environment or a release of any Hazardous Materials that is in
contravention of any federal, state, local or foreign law, order or regulation,
in each case that is likely to have a Material Adverse Effect, and neither the
Company nor any Subsidiary has received notice of any such investigation.
Except as described in the Prospectuses,
17
neither the Company nor any Subsidiary has received any notice or claim, nor are
there pending, reasonably anticipated or, to the best knowledge of the Company,
threatened lawsuits against any of them, with respect to violations of an
Environmental Law or in connection with any release of any Hazardous Materials
into the environment that, if adversely determined, could have a Material
Adverse Effect. Except as disclosed in the Prospectuses, with respect to the
business of the Company or its Subsidiaries, including any previously or
currently owned, leased, or used properties or operations, there are no past,
present, or, to the best knowledge of the Company, reasonably anticipated future
events, conditions, circumstances, activities, practices, incidents, actions or
plans that may interfere with or prevent compliance or continued compliance with
the Environmental Laws in any material respect. As used herein, "Environmental
Laws" means any federal, state, local or foreign law, common law, doctrine,
rule, order, decrees, judgment, injunction, license, permit or regulation
relating to environmental matters, and "Hazardous Materials" means those
substances that are regulated by or form the basis of liability under any
Environmental Laws.
(r) The Company and each other person or entity that, together with
the Company, is treated as a single employer under Section 414 of the Internal
Revenue Code of 1986, as amended (the "Code") (each such person or entity being
an "ERISA Affiliate"), complies in all material respects with the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), and the Code with
respect to each pension plan (as defined in Section 3(2) of ERISA) maintained by
the Company or such ERISA Affiliate, and none of the Company or any of its ERISA
Affiliates has incurred any material liability under Title IV of ERISA to any
pension plan or to the Pension Benefit Guaranty Corporation that has not been
fully paid as of the date hereof.
(s) The Company maintains a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed
in accordance with management's general or specific authorization; (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally 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 existing assets at
reasonable
18
intervals and appropriate action is taken with respect to any differences.
(t) To the knowledge of the Company, neither the Company nor any of
its Subsidiaries nor any employee or agent of the Company or any Subsidiary has
made any payment of funds of the Company or any Subsidiary or received or
retained any funds in violation of any law, rule or regulation, which payment,
receipt or retention of funds is of a character required to be disclosed in the
Prospectuses.
(u) The Company and each of the Subsidiaries have filed all material
tax returns required to be filed, which returns are complete and correct in all
material respects, and neither the Company nor any Subsidiary is in default in
the payment of any taxes which were payable pursuant to said returns or any
assessments with respect thereto.
(v) No holder of any security of the Company has any right (except as
has been satisfied or waived) to require registration of shares of Common Stock
or any other security of the Company because of the filing of the registration
statement or consummation of the transactions contemplated by this Agreement.
(w) The Company and the Subsidiaries own or possess all patents,
trademarks, trademark registrations, service marks, service xxxx registrations,
trade names, copyrights, licenses, inventions, trade secrets and rights
described in the Prospectuses as being owned by them or any of them or to the
Company's knowledge necessary for the conduct of their respective businesses,
and the Company is not aware of any claim to the contrary or any challenge by
any other person to the rights of the Company and the Subsidiaries with respect
to the foregoing which will have a Material Adverse Effect.
(x) The Company has complied with all provisions of Florida Statutes,
(S)517.075, relating to issuers doing business with Cuba.
8. Representations and Warranties of the Selling Stockholders. Each
----------------------------------------------------------
Selling Stockholder represents and warrants to each Manager and the Company
that:
(a) Such Selling Stockholder now has, and on the Closing Date will
have, full legal right, power and authorization, and any approval required by
law, to sell,
19
assign, transfer and deliver such Shares in the manner provided in this
Agreement, and upon delivery of and payment for such Shares hereunder, the
several Managers will acquire valid and marketable title to such Shares free and
clear of any lien, claim, security interest, or other encumbrance.
(b) The execution and delivery of, and the performance by such
Selling Stockholder of its obligations under, this Agreement have been duly and
validly authorized by such Selling Stockholder, and this Agreement has been duly
executed and delivered by such Selling Stockholder and constitutes the valid and
legally binding agreement of such Selling Stockholder, enforceable against such
Selling Stockholder in accordance with its terms, except as limited by federal
or state securities laws and subject to the qualification that the
enforceability of the Selling Stockholder's obligations hereunder may be limited
by bankruptcy, fraudulent conveyance, insolvency reorganization, moratorium, and
other laws relating to or affecting creditors' rights generally, and by general
equitable principles.
(c) Neither the sale of the Shares nor the execution, delivery or
performance of this Agreement by or on behalf of such Selling Stockholder nor
the consummation by or on behalf of such Selling Stockholder of the transactions
contemplated hereby (i) requires any consent, approval, authorization or other
order of, or registration or filing with, any court, regulatory body,
administrative agency or other governmental body, agency or official (except
such as may be required for the registration of the Shares under the Act or
compliance with the securities laws of various jurisdictions), or (ii) conflicts
or will conflict with or constitutes or will constitute a breach of, or a
default under, any agreement, indenture, lease or other instrument to which such
Selling Stockholder is a party or by which such Selling Stockholder is or may be
bound, or violates or will violate any statute, law, regulation or filing or
judgment, injunction, order or decree applicable to such Selling Stockholder, or
will result in the creation or imposition of any lien, charge or encumbrance
upon any property or assets of such Selling Stockholder pursuant to the terms of
any agreement or instrument to which such Selling Stockholder is a party or by
which such Selling Stockholder may be bound or to which any of the property or
assets of such Selling Stockholder is subject.
20
(d) The Registration Statement and the Prospectuses, insofar as they
contain information relating to such Selling Stockholder, do not and will not
contain an 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.
(e) Such Selling Stockholder has not taken, directly or indirectly,
any action designed to or that might reasonably be expected to cause or result
in stabilization or manipulation of the price of the Common Stock to facilitate
the sale or resale of the Shares, except for the lock-up arrangements referred
to in the Prospectuses.
(f) Such Selling Stockholder (without undertaking any independent
investigation) does not have any knowledge that the Registration Statement or
the Prospectuses (or any amendment or supplement thereto) contains any untrue
statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading.
9. Indemnification and Contribution. (a) The Company agrees to indemnify
--------------------------------
and hold harmless each of you and each other Manager and each person, if any,
who controls any Manager within the meaning of Section 15 of the Act or Section
20 of the Exchange Act from and against any and all losses, claims, damages,
liabilities and expenses (including reasonable costs of investigation) arising
out of or based upon any untrue statement or alleged untrue statement of a
material fact contained in any International Prepricing Prospectus or in the
Registration Statement or the International Prospectus or in any amendment or
supplement thereto, or arising out of or based upon any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages, liabilities or expenses arise out of or are based upon
any untrue statement or omission or alleged untrue statement or omission which
has been made therein or omitted therefrom in reliance upon and in conformity
with the information relating to such Manager or U.S. Underwriter furnished in
writing to the Company by or on behalf of any Manager through you or by or on
behalf of any U.S. Underwriter through a Representative expressly for use in
connection therewith; provided, however, that the indemnification contained in
this paragraph (a) with respect to any International Prepricing Prospectus shall
not inure
21
to the benefit of any Manager (or to the benefit of any person controlling such
Manager) on account of any such loss, claim, damage, liability or expense
arising from the sale of the Shares by such Manager to any person if a copy of
the International Prospectus shall not have been delivered or sent to such
person within the time required by the Act and the regulations thereunder, and
the untrue statement or alleged untrue statement or omission or alleged omission
of a material fact contained in such International Prepricing Prospectus was
corrected in the International Prospectus, provided that the Company has
delivered the International Prospectus to the several Managers in requisite
quantity on a timely basis to permit such delivery or sending. The foregoing
indemnity agreement shall be in addition to any liability which the Company may
otherwise have.
(b) Each Selling Stockholder agrees, severally and not jointly, to
indemnify and hold harmless you and each other Manager and each person, if any,
who controls any Manager within the meaning of Section 15 of the Act or Section
20 of the Exchange Act with the same exceptions and to the same extent as the
foregoing indemnity from the Company to each Manager, but only with respect to
information relating to such Selling Stockholder furnished in writing by or on
behalf of such Selling Stockholder expressly for use in the Registration
Statement, the International Prospectus or any International Prepricing
Prospectus, or any amendment or supplement thereto. The foregoing indemnity
agreement shall be in addition to any liability which any Selling Stockholder
may otherwise have.
(c) If any action, suit or proceeding shall be brought against any Manager
or any person controlling any Manager in respect of which indemnity may be
sought against the Company, any Selling Stockholder or both, such Manager or
such controlling person shall promptly notify in writing the parties against
whom indemnification is being sought (the "indemnifying parties"), and such
indemnifying parties shall assume the defense thereof, including the employment
of counsel and payment of all fees and expenses. Such Manager or any such
controlling person shall have the right to employ separate counsel in any such
action, suit or proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Manager or
such controlling person unless (i) the indemnifying parties have agreed in
writing to pay such fees and expenses, (ii) the indemnifying parties have
22
failed to assume the defense and employ counsel, or (iii) the named parties to
any such action, suit or proceeding (including any impleaded parties) include
both such Manager or such controlling person and the indemnifying parties and
such Manager or such controlling person shall have been advised by its counsel
in writing, with a copy furnished to the Company upon request, that
representation of such indemnified party and the indemnifying parties by the
same counsel would be inappropriate under applicable standards of professional
conduct (whether or not such representation by the same counsel has been
proposed) due to actual or potential differing interests between them (in which
case the indemnifying parties shall not have the right to assume the defense of
such action, suit or proceeding on behalf of such Manager or such controlling
person). It is understood, however, that the indemnifying parties shall, in
connection with any one such action, suit or proceeding or separate but
substantially similar or related actions, suits or proceedings in the same
jurisdiction arising out of the same general allegations or circumstances, be
liable for the reasonable fees and expenses of only one separate firm of
attorneys (in addition to any local counsel) at any time for all such Managers
and controlling persons not having actual or potential differing interests with
you or among themselves, which firm shall be designated in writing by Xxxxx
Xxxxxx Inc., and that all such fees and expenses shall be reimbursed as they are
incurred. The indemnifying parties shall not be liable for any settlement of
any such action, suit or proceeding effected without its written consent, but if
settled with such written consent, or if there be a final judgment for the
plaintiff in any such action, suit or proceeding, the indemnifying parties agree
to indemnify and hold harmless any Manager, to the extent provided in the
preceding paragraph, and any such controlling person from and against any loss,
claim, damage, liability or expense by reason of such settlement or judgment.
(d) Each Manager agrees, severally and not jointly, to indemnify and hold
harmless the Company, its directors, its officers who sign the Registration
Statement, any person who controls the Company within the meaning of Section 15
of the Act or Section 20 of the Exchange Act and the Selling Stockholders, to
the same extent as the foregoing indemnity from the Company and the Selling
Stockholders to each Manager, but only with respect to information relating to
such Manager furnished in writing by or on behalf of such Manager through you
expressly for use in the Registration
23
Statement, the International Prospectus or any International Prepricing
Prospectus, or any amendment or supplement thereto. If any action, suit or
proceeding shall be brought against the Company, any of its directors, any such
officer, any such controlling person or any Selling Stockholder based on the
Registration Statement, the International Prospectus or any International
Prepricing Prospectus, or any amendment or supplement thereto, and in respect of
which indemnity may be sought against any Manager pursuant to this paragraph
(d), such Manager shall have the rights and duties given to the Company and the
Selling Stockholders by paragraph (c) above (except that if the Company or the
Selling Stockholders shall have assumed the defense thereof such Manager shall
not be required to do so, but may employ separate counsel therein and
participate in the defense thereof, but the fees and expenses of such counsel
shall be at such Manager's expense), and the Company, its directors, any such
officer, any such controlling person and the Selling Stockholders shall have the
rights and duties given to the Managers by paragraph (c) above. The foregoing
indemnity agreement shall be in addition to any liability which any Manager may
otherwise have.
(e) If the indemnification provided for in this Section 9 is unavailable to
an indemnified party under paragraphs (a), (b) or (d) hereof in respect of any
losses, claims, damages, liabilities or expenses referred to therein, then an
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses (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 Managers on the other hand from
the offering of the Shares, 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 Managers on the other in connection with the statements or
omissions that resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The relative
benefits received by the Company and the Selling Stockholders on the one hand
and the Managers on the other shall be deemed to be in the same proportion as
the total net proceeds from the offering (before deducting expenses) received by
the Company and the
24
Selling Stockholders bear to the total underwriting discounts and commissions
received by the Managers, in each case as set forth in the table on the cover
page of the International Prospectus. The relative fault of the Company and the
Selling Stockholders on the one hand and the Managers on the other hand 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 and the Selling
Stockholders on the one hand or by the Managers on the other hand and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.
(f) The Company, the Selling Stockholders and the Managers agree that it
would not be just and equitable if contribution pursuant to this Section 9 were
determined by a pro rata allocation (even if the Managers were treated as one
entity for such purpose) or by any other method of allocation that does not take
account of the equitable considerations referred to in paragraph (e) above. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities and expenses referred to in paragraph (e) above
shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating any claim or defending any such action, suit or
proceeding. Notwithstanding the provisions of this Section 9, no Manager shall
be required to contribute any amount in excess of the amount by which the total
price of the Shares underwritten by it and distributed to the public exceeds the
amount of any damages which such Manager has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent 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 Managers'
obligations to contribute pursuant to this Section 9 are several in proportion
to the respective numbers of Shares set forth opposite their names in Schedule I
hereto (or such numbers of Shares increased as set forth in Section 12 hereof)
and not joint.
(g) No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened action,
suit or
25
proceeding 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 includes an unconditional release of such indemnified
party from all liability on claims that are the subject matter of such action,
suit or proceeding.
(h) Any losses, claims, damages, liabilities or expenses for which an
indemnified party is entitled to indemnification or contribution under this
Section 9 shall be paid by the indemnifying party to the indemnified party as
such losses, claims, damages, liabilities or expenses are incurred. The
indemnity and contribution agreements contained in this Section 9 and the
representations and warranties of the Company and the Selling Stockholders set
forth in this Agreement shall remain operative and in full force and effect,
regardless of (i) any investigation made by or on behalf of any Manager or any
person controlling any Manager, the Company, its directors or officers or the
Selling Stockholders, any director, officer or partner of a Selling Stockholder
or any person controlling the Company or any Selling Stockholder, (ii)
acceptance of any Shares and payment therefor hereunder, and (iii) any
termination of this Agreement. A successor to any Manager or any person
controlling any Manager, or to the Company, its directors or officers, or to a
Selling Stockholder, any director, officer or partner of a Selling Stockholder
or any person controlling the Company or any Selling Stockholder shall be
entitled to the benefits of the indemnity, contribution and reimbursement
agreements contained in this Section 9.
10. Conditions of Managers' Obligations. The several obligations of the
-----------------------------------
Managers to purchase the Shares hereunder are subject to the following
conditions:
(a) If, at the time this Agreement is executed and delivered, it is
necessary for the registration statement or a post-effective amendment thereto
(or a Rule 462(b) Registration Statement) to be declared effective before the
offering of the Shares may commence, the registration statement or such post-
effective amendment or Rule 462(b) Registration Statement shall have become
effective not later than 5:30 P.M., New York City time, on the date hereof, or
at such later date and time as shall be consented to in writing by you, and all
filings, if any, required by Rules 424 and 430A under the Act shall have been
timely made; no stop order suspending the effectiveness of the registration
statement shall have been issued and no
26
proceeding for that purpose shall have been instituted or, to the knowledge of
the Company or any Manager, threatened by the Commission, and any request of the
Commission for additional information (to be included in the registration
statement or the Prospectuses or otherwise) shall have been complied with to
your reasonable satisfaction.
(b) Subsequent to the effective date of this Agreement, there shall
not have occurred (i) any change, or any development involving a prospective
change, in or affecting the condition (financial or other), business,
properties, net worth, or results of operations of the Company or the
Subsidiaries not contemplated by the Prospectuses, which in your reasonable
opinion, as Lead Managers for the several Managers, would materially, adversely
affect the market for the Shares, or (ii) any event or development relating to
or involving the Company or any officer or director of the Company which makes
any statement made in the Prospectuses untrue or which, in the opinion of the
Company and its counsel or the Managers and their counsel, requires the making
of any addition to or change in the Prospectuses in order to state a material
fact required by the Act or any other law to be stated therein or necessary in
order to make the statements therein not misleading, if amending or
supplementing the Prospectuses to reflect such event or development would, in
your reasonable opinion, as Lead Managers for the several Managers, materially
adversely affect the market for the Shares.
(c) You shall have received on the Closing Date, an opinion of Xxxxxx,
Xxxxx & Xxxxxxx LLP, counsel for the Company, dated the Closing Date and
addressed to you, as Lead Managers for the several Managers, to the effect that:
(i) The Company is a corporation validly existing in good standing
under the laws of the State of Delaware with corporate power and authority to
own, lease and operate its properties and to conduct its business as described
in the Registration Statement and the Prospectuses (and any amendment or
supplement thereto);
(ii) Each of the Material Subsidiaries is a corporation validly
existing in good standing under the laws of the jurisdiction of its
organization, with corporate power and authority to own, lease, and operate its
properties and to conduct its business as described in the Registration
Statement and the Prospectuses (and any amendment or supplement thereto);
27
(iii) The authorized and outstanding capital stock of the Company is
as set forth under the caption "Capitalization" in the Prospectuses; and the
authorized capital stock of the Company conforms in all material respects as to
legal matters to the description thereof contained in the Prospectuses under the
caption "Description of Capital Stock";
(iv) All the outstanding shares of capital stock of the Company have
been duly authorized and validly issued, and are fully paid and nonassessable;
(v) The Registration Statement and all post-effective amendments, if
any, have become effective under the Act and, to the knowledge of such counsel,
no stop order suspending the effectiveness of the Registration Statement has
been issued and no proceedings for that purpose are pending before or
contemplated by the Commission; and any required filing of the Prospectuses
pursuant to Rule 424(b) has been made in accordance with Rule 424(b);
(vi) The Company has corporate power and authority to enter into this
Agreement and this Agreement has been duly authorized, executed and delivered by
the Company and is a valid, legal and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except as
enforcement of rights to indemnity and contribution hereunder may be limited by
Federal or state securities laws or principles of public policy and subject to
the qualification that the enforceability of the Company's obligations hereunder
may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization,
moratorium, and other laws relating to or affecting creditors' rights generally,
and by general equitable principles;
(vii) Neither the offer, sale or delivery of the Shares, the
execution, delivery or performance of this Agreement, compliance by the Company
and the Selling Stockholders with the provisions hereof nor consummation by the
Company and the Selling Stockholders of the transactions contemplated hereby
conflicts or will conflict with or constitutes or will constitute a breach of,
or a default under, the certificate or articles of incorporation or bylaws, or
other organizational documents, of the Company or any of the Material
Subsidiaries or any agreement, indenture, lease or other instrument to which the
Company or
28
any of the Material Subsidiaries is a party or by which any of them or any of
their respective properties is bound that is an exhibit to the Registration
Statement or to any Incorporated Document, or is known to such counsel, or will
result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any of the Material Subsidiaries, nor will
any such action result in any violation of any existing law, regulation, ruling
(assuming compliance with all applicable state securities and Blue Sky laws),
judgment, injunction, order or decree known to such counsel, applicable to the
Company, the Material Subsidiaries or any of their respective properties;
(viii) The Registration Statement and the Prospectuses and any
supplements or amendments thereto (except for the financial statements and the
notes thereto and the schedules and other financial and statistical data
included therein, as to which such counsel need not express any opinion) comply
as to form in all material respects with the requirements of the Act; and each
of the Incorporated Documents included in the Registration Statement (except for
the financial statements and the notes thereto and the schedules and other
financial and statistical data included therein, as to which counsel need not
express any opinion) complies as to form in all material respects with the
Exchange Act and the rules and regulations of the Commission thereunder;
(ix) To the knowledge of such counsel, (A) other than as described or
contemplated in the Prospectuses (or any supplement thereto), there are no legal
or governmental proceedings pending or threatened against the Company or any of
the Subsidiaries, or to which the Company or any of the Subsidiaries, or any of
their property, is subject, which are required to be described in the
Registration Statement or Prospectuses (or any amendment or supplement thereto)
and (B) there are no agreements, contracts, indentures, leases or other
instruments, that are required to be described in the Registration Statement or
the Prospectuses (or any amendment or supplement thereto) or to be filed as an
exhibit to the Registration Statement or any Incorporated Document that are not
described or filed as required, as the case may be;
(x) The following statements in the Prospectuses, insofar as they are
descriptions of contracts, agreements or other legal documents, or refer to
statements of law or
29
legal conclusions, are accurate and present fairly the information required to
be shown: on page 10, under "Risk Factors - Leverage", the second sentence
relating to the Secured Credit Agreement amount, the third sentence relating to
the Receivables Securitization Facility amount and the last sentence relating to
the interest rate swap agreement amounts; on page 10, under "Risk Factors -
Restrictive Covenants in Certain Debt Instruments", the entire paragraph; on
page 11, under "Risk Factors - Absence of Dividends", the first sentence
relating to restrictions on the payment of dividends under the Secured Credit
Agreement; on page 11, under "Risk Factors - Anti-Takeover Provisions", the
entire paragraph; on page 12, under "Price Range of Common Stock and Dividend
Policy", the first sentence of the last paragraph relating to restrictions on
the payment of dividends under the Secured Credit Agreement; on page 16, under
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - General", the third sentence of the third paragraph relating to no
ownership interest or management control of the footwear business upon the
completion of the restructuring; on page 21, under Management's Discussion and
Analysis of Financial Condition and Results of Operations - Financial Condition
and Liquidity", the first five sentences of the fourth paragraph on the page
relating to the Secured Credit Agreement, the first three sentences of the fifth
paragraph on the page relating to the Receivables Securitization Facility and
the entire sixth paragraph on the page; on page 33, under "Business -
Environmental Matters", the entire first and second paragraphs; on page 35,
under "Certain Transactions", the entire paragraph; on page 36, under "Selling
Stockholders", the entire second paragraph on the page; on page 36, under
"Description of Capital Stock", the entire section; on page 38, under "Certain
U.S. Tax Consequences to Non-U.S. Stockholders", the entire section; on page 41,
under "Underwriting", the first sentence of the third paragraph relating to the
obligations of the several underwriters; and
(xi) Although counsel has not undertaken, except as otherwise
indicated, to determine independently, and does not assume any responsibility
for, the accuracy or completeness of the statements in the Registration
Statement, such counsel has participated in the preparation of the Registration
Statement and the Prospectuses, including review and discussion of the contents
thereof (including review and discussion of the contents of all Incorporated
Documents), and nothing has come to the
30
attention of such counsel that has caused them to believe that the Registration
Statement (including the Incorporated Documents) at the time the Registration
Statement became effective, or the Prospectuses, as of the date thereof and as
of the Closing Date, contained an untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary to make the
statements therein not misleading or that any amendment or supplement to the
Prospectuses, as of the respective date thereof, and as of the Closing Date,
contained any untrue statement of a material fact or omitted 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 (it being understood
that such counsel need express no belief with respect to the financial
statements and the notes thereto and the schedules and other financial and
statistical data included in the Registration Statement or the Prospectuses or
any Incorporated Document).
In rendering such opinion as aforesaid, counsel may limit their
opinion to the federal laws of the United States, the General Corporation Law of
the State of Delaware, and the laws of the States of New York and Pennsylvania,
and may assume that the laws of the Commonwealth of Virginia and the State of
North Carolina are in all relevant respects the same as the Delaware General
Corporation Law.
(d) You shall have received on the Closing Date an opinion from Akin,
Gump, Strauss, Xxxxx & Xxxx, LLP, counsel for the Selling Stockholders, dated
the Closing Date and addressed to you, as Lead Managers for the several Managers
to the effect that:
(i) This Agreement has been duly executed and delivered by or on
behalf of each of the Selling Stockholders;
(ii) Each Selling Stockholder has full legal right, power and
authorization, and any approval required by law, to sell, assign, transfer
and deliver good and marketable title to the Shares which such Selling
Stockholder has agreed to sell pursuant to this Agreement; and
(iii) The execution and delivery of this Agreement by the Selling
Stockholders and the consummation of the transactions contemplated hereby
will not conflict
31
with, violate, result in a breach of or constitute a default under the
terms or provisions of the partnership agreement of any Selling
Stockholder, or, to such counsel's knowledge, any agreement, indenture,
lease or other instrument to which any Selling Stockholder is a party or by
which any of them or any of their assets or property is bound, or violate
any statute, law, regulation, court order or decree known to such counsel
to be applicable to any Selling Stockholder or to any of the property or
assets of any Selling Stockholder, except for any such conflicts, breaches,
defaults or violations that would not, individually or in the aggregate,
have a Material Adverse Effect on the ability of such Selling Stockholder
to consummate the transactions contemplated by this Agreement.
In rendering their opinion as aforesaid, counsel may, as to factual matters,
rely upon written certificates or statements of officers of the Selling
Stockholders and, as to matters of law, may limit their opinion to the federal
laws of the United States, the General Corporation Law of the State of Delaware
and the laws of the State of New York.
(e) You shall have received on the Closing Date, an opinion of Xxxx
Xxxxxxxxxxxx, Esq., general counsel for the Company, dated the Closing Date and
addressed to you, as Lead Managers for the several Managers, to the effect that:
(i) The Company and each of the Subsidiaries has corporate power and
authority, and, to such counsel's knowledge, all necessary governmental
authorizations, approvals, orders, licenses, certificates, franchises and
permits of and from all governmental regulatory officials and bodies (except
where the failure so to have any such authorizations, approvals, orders,
licenses, certificates, franchises or permits, individually or in the aggregate,
would not have a Material Adverse Effect), to own their respective properties
and to conduct their respective businesses as now being conducted, as described
in the Prospectuses;
(ii) Each of the Company and the Material Subsidiaries is duly
qualified to transact business as a foreign corporation in good standing in the
jurisdictions listed in an attached schedule, which are all jurisdictions in
which they own, lease or operate manufacturing facilities;
32
(iii) Neither the Company nor any of the Material Subsidiaries is in
violation of its respective certificate or articles of incorporation or bylaws,
or other organizational documents, to the knowledge of such counsel, or is in
default in the performance of any material obligation, agreement or condition
contained in any bond, debenture, note or other evidence of indebtedness, to the
knowledge of such counsel, except as may be disclosed in the Prospectuses;
(iv) Except as disclosed in the Prospectuses, the Company owns of
record, directly or indirectly, all the outstanding shares of capital stock of
each of the Subsidiaries free and clear of any lien, adverse claim, security
interest, equity, or other encumbrance, and all the outstanding shares of
capital stock of each of the Subsidiaries have been duly authorized and validly
issued, are fully paid and nonassessable;
(v) Other than as described or contemplated in the Prospectuses (or
any supplement thereto), to such counsel's knowledge after reasonable inquiry,
there are no legal or governmental proceedings pending or threatened against the
Company or any of the Subsidiaries, or to which the Company or any of the
Subsidiaries, or any of their property, is subject, which are required to be
described in the Registration Statement or Prospectuses (or any amendment or
supplement thereto);
(vi) To such counsel's knowledge after reasonable inquiry, there are
no agreements, contracts, indentures, leases or other instruments, that are
required to be described in the Registration Statement or the Prospectuses (or
any amendment or supplement thereto) or to be filed as an exhibit to the
Registration Statement or any Incorporated Document therein that are not
described or filed as required, as the case may be;
(vii) The Company and the Subsidiaries own all patents, trademarks,
trademark registrations, service marks, service xxxx registrations, trade names,
copyrights, licenses, inventions, trade secrets and rights described in the
Prospectuses as being owned by them or any of them or, to the knowledge of such
counsel, necessary for the conduct of their respective businesses, and such
counsel is not aware of any claim to the contrary or any challenge by any other
person to the rights of the Company and the Subsidiaries with respect to the
foregoing;
33
(viii) To such counsel's knowledge after reasonable inquiry, neither
the Company nor any of the Subsidiaries is in violation of any law, ordinance,
administrative or governmental rule or regulation applicable to the Company or
any of the Subsidiaries or of any decree of any court or governmental agency or
body having jurisdiction over the Company or any of the Subsidiaries except for
violations that would not, individually or in the aggregate, have a Material
Adverse Effect;
(ix) Except as described in the Prospectuses, there are no
outstanding options, warrants or other rights calling for the issuance of, and
such counsel does not know of any commitment, plan or arrangement to issue, any
shares of capital stock of the Company or any security convertible into or
exchangeable or exercisable for capital stock of the Company; and
(x) Except as described in the Prospectuses, there is no holder of
any security of the Company or any other person who has the right, contractual
or otherwise, to cause the Company to sell or otherwise issue to them, or to
permit them to underwrite the sale of, the Shares or the right to have any
Common Stock or other securities of the Company included in the registration
statement or the right, as a result of the filing of the registration statement,
to require registration under the Act of any shares of Common Stock or other
securities of the Company.
(f) You shall have received on the Closing Date an opinion of Cravath,
Swaine & Xxxxx, counsel for the U.S. Underwriters, dated the Closing Date and
addressed to you, as Lead Managers for the several Managers, with respect to the
matters as you may reasonably request.
(g) You shall have received letters addressed to you, as Lead Managers for
the several Managers, and dated the date hereof and the Closing Date from KPMG
Peat Marwick LLP, independent certified public accountants, substantially in the
forms heretofore approved by you.
(h)(i) No stop order suspending the effectiveness of the Registration
Statement shall have been issued and no proceedings for that purpose shall have
been taken or, to the knowledge of the Company, shall be contemplated by the
Commission at or prior to the Closing Date; (ii) there shall not have been any
material change in the capital stock of the Company nor any material increase in
the short-term or
34
long-term debt of the Company (other than in the ordinary course of business)
from that set forth or contemplated in the Registration Statement or the
Prospectuses (or any amendment or Supplement thereto); (iii) there shall not
have been, since the respective dates as of which information is given in the
Registration Statement and the Prospectuses (or any amendment or supplement
thereto), except as may otherwise be stated in the Registration Statement and
Prospectuses (or any amendment or supplement thereto), any material adverse
change in the condition (financial or other), business, prospects, properties,
net worth or results of operations of the Company and the Subsidiaries taken as
a whole; (iv) the Company and the Subsidiaries shall not have any liabilities or
obligations, direct or contingent (whether or not in the ordinary course of
business), that are material to the Company and the Subsidiaries, taken as a
whole, other than those reflected in the Registration Statement or the
Prospectuses (or any amendment or supplement thereto); and (v) all the
representations and warranties of the Company contained in this Agreement shall
be true and correct on and as of the date hereof and on and as of the Closing
Date as if made on and as of the Closing Date, and you shall have received a
certificate of the Company, dated the Closing Date and signed on behalf of the
Company by the chief executive officer and the chief financial officer of the
Company (or such other officers as are acceptable to you), to the effect set
forth in this Section 10(h) and in Section 10(i) hereof.
(i) The Company shall not have failed at or prior to the Closing Date to
have performed or complied with any of its agreements herein contained and
required to be performed or complied with by it hereunder at or prior to the
Closing Date.
(j) All the representations and warranties of the Selling Stockholders
contained in this Agreement shall be true and correct on and as of the date
hereof and on and as of the Closing Date as if made on and as of the Closing
Date and you shall have received a certificate, dated the Closing Date, signed
by or on behalf of each Selling Stockholder to the effect set forth in this
Section 10(j) and in Section 10(k) hereof.
(k) The Selling Stockholders shall not have failed at or prior to the
Closing Date to have performed or complied with any of their agreements
contained in this Agreement and
35
required to be performed or complied with by them at or prior to the Closing
Date.
(l) The Company and the Selling Stockholders shall have furnished or
caused to be furnished to you such further certificates and documents as you
shall have reasonably requested.
(m) The closing under the U.S. Underwriting Agreement shall have occurred
on the Closing Date concurrently with the closing hereunder.
All such opinions, certificates, letters and other documents will be in
compliance with the provisions hereof only if they are reasonably satisfactory
in form and substance to you and your counsel.
Any certificate or document signed by any officer of the Company or by any
Selling Stockholder and delivered to you, as Lead Managers for the Managers, or
to counsel for the Managers, shall be deemed a representation and warranty by
the Company or such Selling Stockholder to each Manager as to the statements
made therein.
11. Expenses. The Company and the Selling Stockholders agree to pay the
--------
following costs and expenses and all other costs and expenses incident to the
performance by them of their obligations hereunder: (i) the preparation,
printing or reproduction, and filing with the Commission of the registration
statement (including financial statements and exhibits thereto), each of the
Prepricing Prospectuses, the Prospectuses, and each amendment or supplement to
any of them; (ii) the printing (or reproduction) and delivery (including
postage, air freight charges and charges for counting and packaging) of such
copies of the registration statement, each International Prepricing Prospectus,
the International Prospectus, and all amendments or supplements to any of them
as may be reasonably requested for use in connection with the offering and sale
of the Shares; (iii) the preparation, printing, authentication, issuance and
delivery of certificates for the Shares, including any stamp taxes in connection
with the original issuance and sale of the Shares; (iv) the cost of production
(or reproduction) and delivery of this Agreement, the preliminary and
supplemental Blue Sky Memoranda and all other agreements, memoranda,
correspondence and other documents printed (or reproduced) and delivered in
connection with the original issuance and
36
sale of the Shares; (v) the registration or qualification of the Shares for
offer and sale under the securities or Blue Sky laws of the several
jurisdictions as provided in Section 5(g) hereof (including the reasonable fees,
expenses and disbursements of counsel for the Managers and U.S. Underwriters
relating to the preparation, printing or reproduction, and delivery of the
preliminary and supplemental Blue Sky Memoranda and such registration and
qualification); (vi) the filing fees in connection with any filings required to
be made with the National Association of Securities Dealers, Inc.; (vii) the
transportation and other expenses incurred by or on behalf of representatives of
the Company in connection with presentations to prospective purchasers of the
Shares; (viii) the fees and expenses of the Company's accountants and the fees
and expenses of counsel (including local and special counsel) for the Company
and the Selling Stockholders; (ix) the underwriting discounts and commissions
(in proportion to the number of Shares being offered by each Selling
Stockholder; and (x) the performance by the Company and the Selling Stockholders
of their other obligations under this Agreement.
12. Effective Date of Agreement. This Agreement shall become
---------------------------
effective: (i) upon the execution and delivery hereof by the parties hereto; or
(ii) if, at the time this Agreement is executed and delivered, it is necessary
for the registration statement or a post-effective amendment thereto to be
declared effective before the offering of the Shares may commence, when
notification of the effectiveness of the registration statement or such post-
effective amendment has been released by the Commission. Until such time as
this Agreement shall have become effective, it may be terminated by the Company
or the Selling Stockholders, by notifying you, or by you, as Lead Managers for
the several Managers, by notifying the Company and the Selling Stockholders.
If any one or more of the Managers shall fail or refuse to purchase
Shares which it or they are obligated to purchase hereunder on the Closing Date,
and the aggregate number of Shares which such defaulting Manager or Managers are
obligated but fail or refuse to purchase is not more than one-tenth of the
aggregate number of Shares which the Managers are obligated to purchase on the
Closing Date, each non-defaulting Manager shall be obligated, severally, in the
proportion which the number of Shares set forth opposite its name in Schedule I
hereto bears to the aggregate number of Shares set forth opposite the names of
all non-defaulting
37
Managers or in such other proportion as you may specify in accordance with
Section 20 of the Master Agreement Among Underwriters of Xxxxx Xxxxxx Inc., to
purchase the Shares which such defaulting Manager or Managers are obligated, but
fail or refuse, to purchase. If any one or more of the Managers shall fail or
refuse to purchase Shares which it or they are obligated to purchase on the
Closing Date and the aggregate number of Shares with respect to which such
default occurs is more than one-tenth of the aggregate number of Shares which
the Managers are obligated to purchase on the Closing Date and arrangements
satisfactory to you and the Selling Stockholders for the purchase of such Shares
by one or more non-defaulting Managers or other party or parties approved by you
and the Selling Stockholders are not made within 36 hours after such default,
this Agreement will terminate without liability on the part of any non-
defaulting Manager, the Company or any Selling Stockholder. In any such case
which does not result in termination of this Agreement, either you or the
Company shall have the right to postpone the Closing Date, but in no event for
longer than seven days, in order that the required changes, if any, in the
Registration Statement and the Prospectuses or any other documents or
arrangements may be effected. Any action taken under this paragraph shall not
relieve any defaulting Manager from liability in respect of any such default of
any such Manager under this Agreement. The term "Manager" as used in this
Agreement includes, for all purposes of this Agreement, any party not listed in
Schedule I hereto who, with your approval and the approval of the Company,
purchases Shares which a defaulting Manager is obligated, but fails or refuses,
to purchase.
Any notice under this Section 12 may be given by telegram, telecopy or
telephone but shall be subsequently confirmed by letter.
13. Termination of Agreement. This Agreement shall be subject to
------------------------
termination in your absolute discretion, without liability on the part of any
Manager to the Company or any Selling Stockholder by notice to the Company, if
prior to the Closing Date (i) trading in securities generally on the New York
Stock Exchange, the American Stock Exchange or the Nasdaq National Market shall
have been suspended or materially limited, (ii) a general moratorium on
commercial banking activities in New York shall have been declared by either
federal or state authorities, or (iii) there shall have occurred any outbreak or
escalation of hostilities or other international or domestic calamity, crisis or
change
38
in political, financial or economic conditions, the effect of which on the
financial markets of the United States is such as to make it, in your judgment,
impracticable or inadvisable to commence or continue the offering of the Shares
at the offering price to the public set forth on the cover page of the
International Prospectus or to enforce contracts for the resale of the Shares by
the Managers. Notice of such termination may be given to the Company and the
Selling Stockholders by telegram, telecopy or telephone and shall be
subsequently confirmed by letter.
14. Information Furnished by the Managers. The statements set forth in
-------------------------------------
the last paragraph on the cover page, the stabilization legend on the inside
front cover, and the statements in the first, second, fourth, seventh, eighth,
ninth, tenth and thirteenth paragraphs under the caption "Underwriting" in any
International Prepricing Prospectus and in the International Prospectus,
constitute the only information furnished by or on behalf of the Managers
through you as such information is referred to in Sections 7(b) and 9 hereof.
15. Miscellaneous. Except as otherwise provided in Sections 5, 12 and 13
-------------
hereof, notice given pursuant to any provision of this Agreement shall be in
writing and shall be delivered (i) if to the Company, at the office of the
Company at Furniture Brands International, Inc., 000 Xxxxx Xxxxxx Xxxx, Xx.
Xxxxx, Xxxxxxxx 00000, Attention: Xxxx Xxxxxxxxxxxx, Esq., General Counsel; (ii)
if to the Selling Stockholders, at Apollo Investment Fund, L.P., care of CICB
Bank and Trust Company (Cayman) Limited, Xxxxxx Street, Georgetown, Grand
Cayman, Cayman Islands, British West Indies and Xxxx Xxxxxxxx, X.X., Xxx
Xxxxxxxxxxxxxx Xxxx, Xxxxxxxx, Xxx Xxxx 00000; or (iii) if to you, as Lead
Managers for the several Managers, care of Xxxxx Xxxxxx Inc., 000 Xxxxxxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Manager, Investment Banking
Division.
This Agreement has been and is made solely for the benefit of the several
Managers, the Company, its directors and officers, and the other controlling
persons referred to in Section 9 hereof and the Selling Stockholders and their
respective successors and assigns, to the extent provided herein, and no other
person shall acquire or have any right under or by virtue of this Agreement.
Neither the term "successor" nor the term "successors and assigns" as used in
this Agreement shall include a purchaser from any Manager of any of the Shares
in his status as such purchaser.
39
16. Applicable Law; Counterparts. This Agreement shall be governed by and
----------------------------
construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed within the State of New York.
This Agreement may be signed in various counterparts which together
constitute one and the same instrument. If signed in counterparts, this
Agreement shall not become effective unless at least one counterpart hereof
shall have been executed and delivered on behalf of each party hereto.
40
Please confirm that the foregoing correctly sets forth the agreement among
the Company, the Selling Stockholders and the several Managers.
Very truly yours,
FURNITURE BRANDS INTERNATIONAL, INC.
By
------------------------
Vice President
APOLLO INVESTMENT FUND, L.P.
By: Apollo Advisors, L.P.,
Managing General Partner
By: Apollo Capital Management,
Inc., General Partner
By
------------------------
Vice President
LION ADVISORS, L.P.,
on behalf of an investment account under management
By: Lion Capital Management, Inc.
General Partner
By
------------------------
Vice President
Confirmed as of the date first
41
above mentioned on behalf of
themselves and the other several
Managers named in Schedule I
hereto.
XXXXX XXXXXX INC.
CS FIRST BOSTON LIMITED
XXXXXX, READ & CO. INC
XXXXXXX XXXXX INTERNATIONAL
WHEAT, FIRST SECURITIES, INC.
As Lead Managers for the Several Managers
By XXXXX XXXXXX INC.
By
--------------------------
42
SCHEDULE I
FURNITURE BRANDS INTERNATIONAL, INC.
Number of
Manager Shares
------- ----------
Xxxxx Xxxxxx Inc.......................
CS First Boston Limited................
Xxxxxx, Read & Co. Inc.................
Xxxxxxx Xxxxx International............
Wheat, First Securities, Inc...........
----------
Total........................... 2,4000,000
==========
43
SCHEDULE II
FURNITURE BRANDS INTERNATIONAL, INC.
Selling Stockholders
--------------------
Name Number of
---- Shares
---------
Apollo Investment Fund, L.P............. 1,200,000
Lion Advisors, L.P., on behalf of
an investment account under
management.............................. 1,200,000
---------
Total 2,400,000
=========
44
SCHEDULE III
FURNITURE BRANDS INTERNATIONAL, INC.
Required Stockholder Lock-Ups
-----------------------------
1. Xxxxxxx X. Xxxxx
2. Xxxxxxx X. Xxxxxxxx, Xx.
3. Xxxxx X. Xxxxxxx
4. K. Xxxxx Xxxxx, Xx.
5. Xxxxxxxxx X. Xxxxx
6. Xxxxx X. Xxxxxx
7. Xxxx Xxxxxxxxxxxx
8. Xxxxxx X. Xxxxxxx
