ArvinMeritor, Inc. UNDERWRITING AGREEMENT dated February 26, 2010 Banc of America Securities LLC J.P. Morgan Securities Inc.
Exhibit 1.2
ArvinMeritor, Inc.
dated February 26, 0000
Xxxx xx Xxxxxxx Securities LLC
X.X. Xxxxxx Securities Inc.
X.X. Xxxxxx Securities Inc.
February 26, 0000
XXXX XX XXXXXXX SECURITIES LLC
X.X. XXXXXX SECURITIES INC.
As Representatives of the several Underwriters
c/o BANC OF AMERICA SECURITIES LLC
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
X.X. XXXXXX SECURITIES INC.
As Representatives of the several Underwriters
c/o BANC OF AMERICA SECURITIES LLC
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
Introductory. ArvinMeritor, Inc., an Indiana corporation (the “Company”), proposes to issue
and sell to the several underwriters named in Schedule A hereto (the “Underwriters”), for
whom you (the “Representatives”) are acting as representatives, $250,000,000 aggregate principal
amount of its 10.625% Notes due 2018 (the “Notes”). The Notes will be guaranteed (collectively,
the “Guarantees”) by each of the subsidiary guarantors named in Schedule B hereto (the
“Guarantors”). The Notes and the Guarantees are collectively referred to herein as the
“Securities.” The Securities will be issued pursuant to an indenture dated as of April 1, 1998
(the “Base Indenture”), among the Company and The Bank of New York Mellon Trust Company as
successor to The Chase Manhattan Bank, as trustee (the “Trustee”), as supplemented as of July 7,
2000, July 6, 2004 and June 23, 2006 and an additional supplemental indenture to be executed on the
Closing Date (collectively the “Supplemental Indentures” and together with the Base Indenture, the
“Indenture”). To the extent there are no additional underwriters listed on Schedule A
other than you, the term Representatives as used herein shall mean you as the Underwriters, and the
terms Representatives and Underwriters shall mean either the singular or plural as the context
requires. The use of the neuter in this Underwriting Agreement (the “Agreement”) shall include the
feminine and masculine wherever appropriate.
The Company hereby confirms its agreement with the several Underwriters concerning the
purchase and sale of the Securities, as follows:
1. Registration Statement. The Company has prepared and filed with the Securities and
Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended, and the rules
and regulations of the Commission thereunder (collectively, the “Securities Act”), a registration
statement on Form S-3 (File No. 333-163233), including a prospectus (as amended at the time it
became effective, the “Base Prospectus”), relating to securities to be issued from time to time by
the Company. The Company has also filed with, or transmitted for filing to, or shall promptly
hereafter file with or transmit for filing to, the Commission a prospectus supplement specifically
relating to the Securities pursuant to Rule 424 under the Securities Act (the “Prospectus
Supplement”). The term “Registration Statement” means the registration statement, as amended at
the time it became effective, including the information, if any, deemed pursuant to Rule 430A, 430B
or 430C under the Securities Act to be part of the registration statement at the time of its
effectiveness (“Rule 430 Information”). The term “Preliminary Pros-
pectus” means the preliminary
prospectus supplement specifically relating to the Securities
filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act
together with the Base Prospectus. The term “Prospectus” means the Base Prospectus as supplemented
by, and together with, the final Prospectus Supplement specifically relating to the Securities in
the form to be filed by the Company with the Commission pursuant to Rule 424(b) under the
Securities Act and first used (or made available upon request of purchasers pursuant to Rule 173
under the Securities Act) in connection with confirmation of sales of the Securities. If the
Company has filed an abbreviated registration statement pursuant to Rule 462(b) under the
Securities Act (the “Rule 462 Registration Statement”), then any reference herein to the term
“Registration Statement” shall be deemed to include such Rule 462 Registration Statement. Any
reference in this Agreement to the Registration Statement, the Base Prospectus, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include the documents incorporated by
reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as of the effective
date of the Registration Statement or the date of the Base Prospectus, such Preliminary Prospectus
or the Prospectus, as the case may be, and any reference herein to “amend”, “amendment” or
“supplement” as used with respect to the Registration Statement, the Base Prospectus, any
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include any documents
filed by the Company after such date under the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission thereunder (collectively, the “Exchange Act”) that are
deemed to be incorporated by reference therein.
At or prior to the Applicable Time (as defined below), the Company had prepared the following
information (the “Pricing Disclosure Package”): the Preliminary Prospectus dated February 23, 2010
and each “free-writing prospectus” (as defined pursuant to Rule 405 under the Securities Act)
listed on Schedule C hereto.
“Applicable Time” means 2:30 P.M., New York City time, on February 26, 2010, the time at or
immediately prior to which sales of the Securities are first made.
2. Purchase, Sale, Delivery and Payment; Representations and Warranties and Covenants of
the Underwriters.
(a) The Company agrees to issue and sell to the several Underwriters the Notes upon the terms
herein set forth and, on the basis of the representations, warranties and agreements and upon the
terms but subject to the conditions herein set forth, each Underwriter agrees, severally and not
jointly, to purchase from the Company the respective aggregate principal amount of the Notes set
forth opposite such Underwriter’s names on Schedule A. The purchase price per Note to be
paid by the several Underwriters to the Company shall be equal to 95.774% of the principal amount
thereof, plus accrued interest, if any, from March 3, 2010 to the Closing Date (as defined below).
The Company will not be obligated to deliver any of the Notes except upon payment for all the Notes
to be purchased as provided hereunder.
(b) Delivery of certificates for the Notes to be purchased by the Underwriters and payment
therefor shall be made at the offices of Xxxxx Xxxx & Xxxxxxxx LLP, 450 Lexing-
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xxx Xxxxxx, Xxx Xxxx,
XX 00000 (or such other place as may be agreed to by the Company and the Representatives in
writing) at 9:00 a.m. New York time, on March 3, 2010, or such other
time and date not later than 1:30 p.m. New York time, on March 17, 2010, as the
Representatives and the Company shall agree upon in writing (the time and date of such delivery and
payment are called the “Closing Date”). Delivery of the Notes shall be made through the facilities
of The Depository Trust Company (“DTC”) unless the Representatives shall otherwise instruct. Time
shall be of the essence, and delivery at the time and place specified in this Agreement is a
further condition to the obligations of the Underwriters.
(c) Public Offering of the Securities. The Company and the Guarantors understand that the
Underwriters intend to make a public offering of the Securities as soon after the effectiveness of
this Agreement as in the judgment of the Representatives is advisable, and initially to offer the
Securities on the terms set forth in the Prospectus. The Company and the Guarantors acknowledge
and agree that the Underwriters may offer and sell the Securities to or through any affiliate of an
Underwriter.
(d) Payment for the Securities. Payment for the Securities shall be made on the Closing Date
by wire transfer of immediately available funds to an account specified to the Representatives by
the Company.
It is understood that the Representatives have been authorized, for their own account and the
accounts of the several Underwriters, to accept delivery of and receipt for, and make payment of
the purchase price for, the Securities. Banc of America Securities LLC, individually and not as
the Representative of the Underwriters, may (but shall not be obligated to) make payment for any
Securities to be purchased by any Underwriter whose funds shall not have been received by the
Representatives by the Closing Date for the account of such Underwriter, but any such payment shall
not relieve such Underwriter from any of its obligations under this Agreement.
(e) The Company and each Guarantor acknowledge and agree that the Underwriters are acting
solely in the capacity of an arm’s length contractual counterparty to the Company and each
Guarantor with respect to the offering of the Securities contemplated hereby (including in
connection with determining the terms of the offering) and not as a financial advisor or a
fiduciary to, or an agent of, the Company, any Guarantor or any other person. Additionally,
neither the Representatives nor any other Underwriter is advising the Company, any Guarantor or any
other person as to any legal, tax, investment, accounting or regulatory matters in any
jurisdiction. The Company and each Guarantor shall consult with its own advisors concerning such
matters and shall be responsible for making its own independent investigation and appraisal of the
transactions contemplated hereby, and the Underwriters shall have no responsibility or liability to
the Company or any Guarantor with respect thereto. Any review by the Underwriters of the Company,
the transactions contemplated hereby or other matters relating to such transactions will be
performed solely for the benefit of the Underwriters and shall not be on behalf of the Company or
any Guarantor.
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3. Representations and Warranties. The Company and each Guarantor, jointly and
severally, represent and warrant to, and agree with, each of the Underwriters as of the date
hereof that:
(a) Preliminary Prospectus. No order preventing or suspending the use of any Preliminary
Prospectus has been issued by the Commission, and each Preliminary Prospectus included in the
Pricing Disclosure Package, at the time of filing thereof, complied in all material respects with
the applicable requirements of the Securities Act, and no Preliminary Prospectus, at the time of
filing thereof, contained any untrue statement of a material fact (other than Rule 430 Information)
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; provided that the Company
and each Guarantor make no representation and warranty with respect to any statements or omissions
made in reliance upon and in conformity with Underwriter Information (as defined in Section 7
hereof).
(b) Pricing Disclosure Package. The Pricing Disclosure Package as of the Applicable Time did
not, and as of the Closing Date will not, contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that the Company and
each Guarantor make no representation and warranty with respect to any statements or omissions made
in reliance upon and in conformity with Underwriter Information.
(c) Issuer Free Writing Prospectus. Other than the Registration Statement, the Preliminary
Prospectus and the Prospectus, the Company and each Guarantor (including their respective agents
and representatives, other than the Underwriters in their capacity as such) have not prepared,
used, authorized, approved or referred to and will not prepare, use, authorize, approve or refer to
any “written communication” (as defined in Rule 405 under the Securities Act) that constitutes an
offer to sell or solicitation of an offer to buy the Securities (each such communication by the
Company, any Guarantor or their respective agents and representatives (other than a communication
referred to in clause (i) below) an “Issuer Free Writing Prospectus”) other than (i) any document
not constituting a prospectus pursuant to Section 2(a)(10)(a) of the Securities Act or Rule 134
under the Securities Act, (ii) the documents listed on Schedule C hereto and (iii) each
electronic road show and any other written communications approved in writing in advance by the
Representatives. Each such Issuer Free Writing Prospectus complied in all material respects with
the Securities Act, has been or will be (within the time period specified in Rule 433 under the
Securities Act) filed in accordance with the Securities Act (to the extent required thereby) and,
when taken together with the Preliminary Prospectus, did not, and as of the Closing Date will not,
contain any untrue statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that the Company and each Guarantor make no representation and
warranty with respect to any statements or omissions made in any such Issuer Free Writing
Prospectus or Preliminary Prospectus in reliance upon and in conformity with Underwriter
Information.
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(d) Registration Statement and Prospectus. The Registration Statement has been declared
effective by the Commission. No order suspending the effectiveness of the Registration Statement
has been issued by the Commission, and no proceeding for that purpose or pursuant to Section 8A of
the Securities Act against the Company or any Guarantor or related
to the offering of the Securities has been initiated or, to the knowledge of the Company,
threatened by the Commission; as of the applicable effective date of the Registration Statement and
any post-effective amendment thereto, the Registration Statement and any such post-effective
amendment complied and will comply in all material respects with the applicable requirements of the
Securities Act, and did not and will not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in order to make the statements
therein not misleading; and as of the date of the Prospectus and any amendment or supplement
thereto and as of the Closing Date, the Prospectus will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided that
the Company and each Guarantor make no representation and warranty herein with respect to (i) that
part of the Registration Statement that constitutes any Statement of Eligibility and qualification
(Form T-1) under the Trust Indenture Act of 1939 or (ii) any statements or omissions made in the
Registration Statement or the Prospectus or any amendment or supplement to any thereof made in
reliance upon and in conformity with Underwriter Information.
(e) Incorporated Documents. The documents incorporated by reference in the Registration
Statement, the Prospectus and the Pricing Disclosure Package, when they became effective or were
filed with the Commission, as the case may be, conformed in all material respects to the applicable
requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents,
as of the date they became effective or were filed with the Commission, as the case may be,
contained any untrue statement of a material fact or omitted to state a material fact necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading; and any further documents so filed and incorporated by reference in the Registration
Statement, the Prospectus or the Pricing Disclosure Package, when such documents become effective
or are filed with the Commission, as the case may be, will conform in all material respects to the
applicable requirements of the Securities Act or the Exchange Act, as applicable, and will not, as
of the date such documents become effective or are filed with Commission, as the case may be,
contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading.
(f) Financial Statements. The financial statements included or incorporated by reference in
the Registration Statement, the Pricing Disclosure Package and the Prospectus, together with the
related notes thereto, present fairly in all material respects the consolidated financial position
of the Company and its subsidiaries as of the dates indicated and the consolidated results of
operations, cash flows and changes in shareowners’ equity of the Company and its subsidiaries for
the periods specified in accordance with U.S. generally accepted accounting principles applied on a
consistent basis during the periods involved, subject,
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in the case of interim financial statements,
to normal year-end adjustments, and comply in all material respects with the applicable
requirements of the Securities Act and Exchange Act, as applicable.
(g) No Material Adverse Change. Since the date of the most recent financial statements
included or incorporated by reference in the Registration Statement, the Pricing Disclosure Package
and the Prospectus, in each case excluding any amendments or supplements to the foregoing made
after the execution of this Agreement, there has not been any material adverse change, or any
development involving a prospective material adverse change, in the business, properties, financial
condition or results of operations of the Company and its subsidiaries taken as a whole.
(h) Organization and Good Standing. The Company, each Guarantor and each of its subsidiaries
set forth on Schedule D (the “Significant Subsidiaries”) have been duly organized and are
validly existing and in good standing (to the extent such concept is relevant in any particular
jurisdiction) under the laws of their respective jurisdictions of incorporation or organization,
have full corporate, limited liability company, partnership, limited partnership, statutory trust
or other organization, as the case may be, power and authority necessary to own, lease or hold
their respective properties and conduct their respective businesses as such businesses are
described in the Registration Statement, the Pricing Disclosure Package and the Prospectus, are
duly qualified to do business and are in good standing (to the extent such concept is relevant in
any particular jurisdiction) in each jurisdiction where the ownership or leasing of their
respective properties or the conduct of their respective businesses requires such qualification,
except where the failure to be so qualified, be in good standing or have such power or authority
would not, individually or in the aggregate, either (i) reasonably be expected to have a material
adverse effect on the business, properties, financial condition or results of operations of the
Company and its subsidiaries, taken as a whole, (ii) prevent or materially interfere with the
performance by the Company and each Guarantor of its obligations under this Agreement or (iii)
result in the delisting of the common stock of the Company from the New York Stock Exchange (the
“NYSE”) (the occurrence of any such effect described in the foregoing clauses (i), (ii) and (iii)
being herein referred to as a “Material Adverse Effect”). The Significant Subsidiaries are the
only “significant subsidiaries” (within the meaning of Rule 1-02 of Regulation S-X under the
Exchange Act) of the Company.
(i) Capitalization. As of the date hereof, the Company has an authorized capitalization as
set forth in the section of the Pricing Disclosure Package and the Prospectus entitled
“Capitalization”, and, as of the time of purchase, the Company shall have an authorized
capitalization as set forth in the section of the Pricing Disclosure Package and the Prospectus
entitled “Capitalization”; all of the issued and outstanding shares of capital stock, including the
common stock, of the Company have been duly authorized and validly issued and are fully paid and
non-assessable and were not issued in violation of and are not subject to any pre-emptive right,
resale right, right of first refusal or similar right and, to the knowledge of the Company, have
been issued in compliance with all applicable securities laws; except as described in or expressly
contemplated by the Pricing Disclosure Package and the Prospectus, there are no
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outstanding rights
(including, without limitation, pre-emptive rights), warrants or options to acquire, or instruments
convertible into or exchangeable for, any shares of capital stock in the Company, or any contract,
commitment, agreement, understanding or arrangement of any kind relating to the issuance of any
capital stock of the Company, any such convertible or
exchangeable securities or any such rights, warrants or options; the terms of the capital
stock of the Company conforms in all material respects to the description thereof contained in the
Registration Statement, the Pricing Disclosure Package and the Prospectus; except as described in
the Pricing Disclosure Package and the Prospectus, all the outstanding shares of capital stock or
other equity interests of each Guarantor and each Significant Subsidiary have been duly and validly
authorized and issued, are fully paid and non-assessable (except, in the case of any foreign
subsidiary, for directors’ qualifying shares) and are owned directly or indirectly by the Company,
free and clear of any lien, charge, encumbrance, security interest, restriction on voting or
transfer or any other similar claim of any third party.
(j) Stock Options. With respect to the stock options (the “Stock Options”) granted pursuant
to the stock-based compensation plans of the Company and its subsidiaries (the “Company Stock
Plans”), (i) each Stock Option intended to qualify as an “incentive stock option” under Section 422
of the Code so qualifies, (ii) each grant of a Stock Option was duly authorized no later than the
date on which the grant of such Stock Option was by its terms to be effective (the “Grant Date”) by
all necessary corporate action, including, as applicable, approval by the board of directors of the
Company (or a duly constituted and authorized committee thereof) and any required stockholder
approval by the necessary number of votes or written consents, and the award agreement governing
such grant (if any) was duly executed and delivered by each party thereto, (iii) each such grant
was, in all material respects, made in accordance with the terms of the Company Stock Plans, the
Exchange Act and all other applicable laws and regulatory rules or requirements, including the
rules of the New York Stock Exchange and any other exchange on which Company securities are traded,
and (iv) each such grant was, in all material respects, properly accounted for in accordance with
GAAP in the financial statements (including the related notes) of the Company and disclosed in the
Company’s filings with the Commission in accordance with the Exchange Act and all other applicable
laws. The Company has not knowingly granted, and there is no and has been no policy or practice of
the Company of granting, Stock Options prior to, or otherwise coordinating the grant of Stock
Options with, the release or other public announcement of material information regarding the
Company or its subsidiaries or their results of operations or prospects.
(k) Due Authorization. The Company and each Guarantor have full corporate power and authority
to execute and deliver this Agreement and to perform its obligations hereunder, including, without
limitation, to issue, sell and deliver the Securities (as applicable); and all action required to
be taken by the Company and each Guarantor for the due and proper authorization, execution and
delivery by it of this Agreement and the consummation by it of the transaction contemplated hereby
has been duly and validly taken.
(l) Underwriting Agreement. This Agreement has been duly authorized, executed and delivered
by the Company and each Guarantor.
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(m) The Securities. The Notes to be purchased by the Underwriters from the Company hereunder
have been duly authorized by the Company for issuance and sale pursuant to this Agreement and the
Indenture and, at the Closing Date, will have been duly executed by
the Company and, when executed and delivered by the Company and duly authenticated in the
manner provided for in, and in accordance with the terms of, the Indenture and delivered against
payment by the Underwriters of the purchase price therefor in accordance with the terms hereof,
will constitute valid and binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or similar laws relating to or
affecting creditors’ rights generally or by general equitable principles (regardless of whether
such enforceability is considered in a proceeding in equity or at law), and will be entitled to the
benefits of the Indenture. The Guarantees of the Notes have been duly authorized by the respective
Guarantors and, at the Closing Date, will have been duly executed by each of the Guarantors and,
when the Notes have been executed and delivered by the Company and duly authenticated in the manner
provided for in, and in the accordance with the terms of, the Indenture and delivered against
payment by the Underwriters of the purchase price therefor, the Guarantees will constitute valid
and binding obligations of the respective Guarantors, enforceable against the respective Guarantors
in accordance with their terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium or similar laws relating to or
affecting creditors’ rights generally or by general equitable principles (regardless of whether
such enforceability is considered in a proceeding in equity or at law).
(n) The Indenture. The Indenture has been duly qualified under the Trust Indenture Act. The
Indenture has been duly authorized by the Company and, at the Closing Date, will have been duly
executed and delivered by the Company and will constitute a valid and binding agreement of the
Company, enforceable against the Company in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium
or similar laws relating to or affecting creditors’ rights generally or by general equitable
principles (regardless of whether such enforceability is considered in a proceeding in equity or at
law).
(o) Description of Documents. The Securities and the Indenture will conform in all material
respects to the descriptions thereof in the Disclosure Package and the Prospectus under the
captions “Description of the Notes” and “Description of Debt Securities.”
(p) No Violation or Default. (A) None of the Company nor any of the Significant Subsidiaries
is in violation of its charter or bylaws or similar organizational documents; and none of the
Company nor any of its subsidiaries is (B) in default under (nor has any event occurred which, with
notice, lapse of time or both, would result in any breach or violation of, constitute a default
under or give the holder of any indebtedness (or a person acting on such holder’s behalf) the right
to require the repurchase, redemption or repayment of all or a part of such indebtedness under any
indenture, mortgage, deed of trust, bank loan or credit agreement
or other evidence of
indebtedness, or any license, lease, contract or other agreement
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or instrument to which it is a
party or by which it or any of its properties is subject, (C) in violation of any federal, state,
local or foreign law, regulation or rule, (D) in violation of any rule or regulation of any
self-regulatory organization or other non-governmental regulatory authority
(including, without limitation, the rules and regulations of the New York Stock Exchange
“NYSE”), or (E) in violation of any decree, judgment or order binding on it or any of its
properties, except in the case of clauses (B), (C), (D) and (E), for any breach, violation,
default, right or violation that would not, individually or in the aggregate, have a Material
Adverse Effect.
(q) No Conflicts. The execution, delivery and performance by the Company and each Guarantor
of this Agreement, the issuance and sale of the Securities and the consummation by the Company and
each Guarantor of the transactions contemplated hereby and will not result (A) in any violation of
the charter or bylaws or similar organizational documents of the Company, any Guarantor or any of
its Significant Subsidiaries or, to the knowledge of the Company, any of its other subsidiaries,
(B) in any breach or violation of or constitute a default under (nor constitute any event which,
with notice, lapse of time or both, would result in any breach or violation of, constitute a
default under or give the holder of any indebtedness (or a person acting on such holder’s behalf)
the right to require the repurchase, redemption or repayment of all or a part of such indebtedness
under) (or result in the creation or imposition of a lien, charge or encumbrance on any property or
assets of the Company or any of its subsidiaries pursuant to) any indenture, mortgage, deed of
trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease,
contract or other agreement or instrument to which the Company or any of its subsidiaries is a
party or by which any of them or any of their respective properties is subject, (C) in any
violation of any federal, state, local or foreign law, regulation or rule, (D) in any violation of
any rule or regulation of any self-regulatory organization or other non-governmental regulatory
authority (including, without limitation, the rules and regulations of the NYSE), or (E) in any
violation of any decree, judgment or order binding on the Company or any of its subsidiaries or any
of their respective properties, except in the case of clauses (B), (C), (D) and (E), for any
conflict, breach, violation, default, right, lien, charge or encumbrance that would not,
individually or in the aggregate, have a Material Adverse Effect.
(r) No Consents Required. To the knowledge of the Company, no approval, authorization,
consent or order of or filing with any federal, state, local or foreign governmental or regulatory
commission, board, body, authority or agency having jurisdiction over the Company or any Guarantor,
or of or with any self-regulatory organization or other non-governmental regulatory authority
(including, without limitation, the NYSE) having jurisdiction over the Company or any Guarantor, or
approval of the stockholders of the Company, is required for the issuance and sale of the
Securities pursuant hereto or the consummation by the Company and each Guarantor of the
transactions as contemplated by this Agreement, other than as may be required by the Financial
Industry Regulatory Authority, Inc. (“FINRA”) and under the securities or blue sky laws of the
various jurisdictions in which the Securities are being offered by the Underwriters.
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(s) Legal Proceedings. Except as described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, there are no actions, suits, claims or proceedings, or to
the Company’s knowledge, investigations, pending, or, to the Company’s knowledge, threatened or
contemplated, against the Company or any of its subsidiaries at law or in equity,
before or by any federal, state, local or foreign governmental or regulatory commission,
board, body, authority or agency, or before or by any self-regulatory organization or other
non-governmental regulatory authority (including, without limitation, the NYSE), except any such
action, suit, investigation or proceeding which would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.
(t) Independent Accountants. Deloitte & Touche LLP is an independent registered public
accounting firm with respect to the Company and its subsidiaries within the applicable rules and
regulations adopted by the Commission and the Public Company Accounting Oversight Board (United
States) and as required by the Securities Act.
(u) Title to Real and Personal Property. Except as described in the Registration Statement,
the Pricing Disclosure Package and the Prospectus, or as would not, individually or in the
aggregate, have a Material Adverse Effect, the Company and its subsidiaries have good title to all
material property (real and personal) described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus as being owned by any of them, free and clear of all liens,
claims, security interests or other encumbrances.
(v) Title to Intellectual Property. The Company and its subsidiaries own or possess adequate
rights to use all material patents, patent applications, trademarks, service marks, trade names,
trademark registrations, service xxxx registrations, copyrights, licenses and know-how (including
trade secrets and other unpatented and/or unpatentable proprietary or confidential information,
systems or procedures) necessary for the conduct of their respective businesses as currently
conducted and as described in the Registration Statement, the Pricing Disclosure Package and the
Prospectus, except where the failure to own or possess such rights would not, individually or in
the aggregate, have a Material Adverse Effect, and, to the knowledge of the Company, the conduct of
their respective businesses as presently conducted does not conflict with any such rights of
others, except for such conflicts as would not, individually or in the aggregate, have a Material
Adverse Effect. The Company and its subsidiaries have not since January 1, 2007 received any
notice of any claim of infringement, misappropriation or conflict with any such rights of others in
connection with its patents, patent rights, licenses, inventions, trademarks, service marks, trade
names, copyrights and know-how, which could reasonably be expected to result in a Material Adverse
Effect.
(w) Investment Company Act. The Company and each Guarantor are not and, after giving effect
to the offering and sale of the Securities and the application of the proceeds thereof as described
in the Registration Statement, the Pricing Disclosure Package and the Prospectus, will not be an
“investment company” or an entity “controlled” by an “investment company,” as such terms are
defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).
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(x) Taxes. All tax returns required to be filed by the Company or any of its subsidiaries
have been timely filed, and all taxes and other assessments of a similar nature (whether imposed
directly or through withholding) including any interest, additions to tax or penalties applicable
thereto due or claimed to be due from such entities have been timely paid,
other than those being contested in good faith or for which adequate reserves have been
provided, except in each case, as the same would not, individually or in the aggregate, have a
Material Adverse Effect.
(y) Licenses and Permits. Except as described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, each of the Company and its subsidiaries has all necessary
governmental licenses, authorizations, consents and approvals and has made all necessary filings
required under any applicable law, regulation or rule, in order to conduct their respective
businesses as currently conducted, except where any failure to possess or make the same would not,
individually or in the aggregate, have a Material Adverse Effect; none of the Company or any of its
subsidiaries is in violation of, or in default under, or has received notice of any proceedings
relating to revocation or modification of, any such license, authorization, consent or approval
applicable to the Company or any of its subsidiaries, except where such violation, default,
revocation or modification would not, individually or in the aggregate, have a Material Adverse
Effect.
(z) No Labor Disputes; Compliance with ERISA. Except in each case set forth in this section
(x), as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus,
or as would not, individually or in the aggregate, have a Material Adverse Effect, (i) none of the
Company or any of its subsidiaries is engaged in any unfair labor practice; (ii) there is (A) no
unfair labor practice complaint pending or, to the Company’s knowledge, threatened against the
Company or any of its subsidiaries before the National Labor Relations Board, and no grievance or
arbitration proceeding arising out of or under collective bargaining agreements is pending or, to
the Company’s knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending or,
to the Company’s knowledge, threatened against the Company or any of its subsidiaries and (C) no
union representation dispute currently existing concerning the employees of the Company or any of
its subsidiaries, (iii) to the Company’s knowledge, no union organizing activities are currently
taking place at any facility that is material to the Company concerning the employees of the
Company or any of its subsidiaries and (iv) there has been no violation of any federal, state,
local or foreign law relating to discrimination in the hiring, promotion or pay of employees, any
applicable wage or hour laws or any violation of any provision of the Employee Retirement Income
Security Act of 1974 (“ERISA”) or the rules and regulations promulgated thereunder concerning the
Company or any of its subsidiaries or employees.
(aa) Compliance with and Liability under Environmental Laws; Hazardous Materials. Except, in
each case set forth in this section (x), as described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, or as would not, individually or in the aggregate, have a
Material Adverse Effect, (i) the Company and each of its subsidiaries and their respective
properties, assets and operations are in compliance with Environmental Laws (as
-11-
defined below),
(ii) there are no past or present events, conditions, circumstances, activities, practices,
actions, omissions or plans that could reasonably be expected to give rise to any costs or
liabilities to the Company or any of its subsidiaries under, or to interfere with or prevent
compliance by the Company or any of its subsidiaries with, Environmental Laws, (iii) none of
the Company or any of its subsidiaries (A) to the knowledge of the Company, is the subject of
any investigation, (B) has received any notice or claim, (C) is a party to any pending or, to the
Company’s knowledge, threatened action, suit or proceeding, (D) is bound by any judgment, decree or
order or (E) has entered into any agreement, in each case relating to any alleged violation of any
Environmental Law or any actual or alleged release or threatened release or cleanup at any location
of any Hazardous Materials (as defined below) (as used herein, “Environmental Law” means any
federal, state, local or foreign law, statute, ordinance, rule, regulation, order, decree,
judgment, injunction, permit, license, authorization or other binding requirement, or common law,
relating to human health or safety or the protection, cleanup or restoration of the environment or
natural resources, including those relating to the distribution, processing, generation, treatment,
storage, disposal, transportation, other handling or release or threatened release of Hazardous
Materials, and “Hazardous Materials” means any material (including, without limitation, pollutants,
contaminants, hazardous or toxic substances or wastes) that is regulated by or may give rise to
liability under any Environmental Law).
(bb) Environmental Review. In the ordinary course of their business, the Company, each
Guarantor and each of the Significant Subsidiaries conduct periodic reviews of the effect of the
Environmental Laws on their respective businesses, operations and properties, in the course of
which they identify and evaluate associated costs and liabilities (including, without limitation,
any capital or operating expenditures required for cleanup, closure of properties or compliance
with the Environmental Laws or any permit, license or approval, any related constraints on
operating activities and any potential liabilities to third parties).
(cc) Disclosure Controls. The Company has established and maintains and evaluates “disclosure
controls and procedures” (as such term is defined in Rule 13a-15 and 15d-15 under the Exchange Act)
and “internal control over financial reporting” (as such term is defined in Rule 13a-15 and 15d-15
under the Exchange Act); such disclosure controls and procedures are designed to ensure that
material information relating to the Company, including its consolidated subsidiaries, is made
known to the Company’s Chief Executive Officer and its Chief Financial Officer by others within
those entities, and such disclosure controls and procedures were effective as of September 27,
2009, and, to the knowledge of the Company, are effective as of the date hereof and will be
effective as of the Closing Date, to perform the functions for which they were established.
(dd) Accounting Controls. The Company and each of its consolidated subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable assurance 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
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management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any differences; except, in
the cases of clauses (iii) and (iv) hereof, as would not, individually or in the aggregate, have a
Material Adverse Effect. The Company’s independent auditors and
the Audit Committee of the Board of Directors of the Company have been advised of: (i) all
significant deficiencies and material weaknesses, if any, in the design or operation of internal
control over financial reporting known to the Company which are reasonably likely to adversely
affect the Company’s ability to record, process, summarize and report financial data; and (ii) all
fraud, if any, whether or not material, known to the Company that involves management or other
employees who have a significant role in the Company’s internal control over financial reporting;
all material weaknesses, if any, in internal controls known to the Company have been identified to
the Company’s independent auditors; except as described in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, since September 27, 2009, there has not been any change in
the Company’s internal control over financial reporting that has materially affected, or is likely
to materially affect, the Company’s internal control over financial reporting.
(ee) Insurance. Except as described in the Registration Statement, the Pricing Disclosure
Package and the Prospectus, or as would not, individually or in the aggregate, have a Material
Adverse Effect, (i) the Company, each Guarantor and each of the Significant Subsidiaries maintain
insurance covering their respective properties, operations, personnel and businesses as the Company
reasonably deems adequate, (ii) such insurance insures against such losses and risks to an extent
which is adequate in accordance with customary industry practice to protect the Company, each
Guarantor and each of the Significant Subsidiaries and their respective businesses, (iii) all such
insurance is fully in force on the date hereof and will be fully in force at the time of purchase,
and (iv) none of the Company any of the Guarantors nor any of the Significant Subsidiaries has
reason to believe that it will not be able to renew any such insurance.
(ff) No Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to the
knowledge of the Company, any director, officer, agent, employee or other person acting on behalf
of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to political activity; (ii)
made any direct or indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds; (iii) violated or is in violation of any provision of the Foreign
Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback
or other unlawful payment.
(gg) Compliance with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or
enforced by any governmental agency (collectively, the
-13-
“Money Laundering Laws”) and no action, suit
or proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is
pending or, to the knowledge of the Company, threatened.
(hh) Compliance with OFAC. To the knowledge of the Company, none of the Company, any of its
subsidiaries or any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company will not, directly
or indirectly, use the proceeds of the offering of the Securities hereunder, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner or other person or
entity, for the purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.
(ii) No Restrictions on Guarantors and Significant Subsidiaries. No Guarantor and Significant
Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the
Company, from making any other distribution on such Guarantor’s or such Significant Subsidiary’s
capital stock or from repaying to the Company any loans or advances to such Guarantor or such
Significant Subsidiary from the Company, except as described in the Registration Statement, the
Pricing Disclosure Package and the Prospectus.
(jj) No Broker’s Fees. Except pursuant to this Agreement, neither the Company nor any of its
subsidiaries has incurred any liability for any finder’s or broker’s fee or agent’s commission in
connection with the execution and delivery of this Agreement or the consummation of the
transactions contemplated hereby.
(kk) No Registration Rights. No person has the right to require the Company or any of its
subsidiaries to register any securities for sale under the Securities Act by reason of the filing
of the Registration Statement with the Commission or the issuance and sale of the Securities.
(ll) No Stabilization. None of the Company or any of its subsidiaries or, to the Company’s
knowledge, any of their respective directors, officers, affiliates or controlling persons has
taken, directly or indirectly, any action designed to, or which has constituted or that could
reasonably be expected to, cause or result in any stabilization or manipulation of the price of the
Securities.
(mm) Forward-Looking Statements. Each “forward-looking statement” (within the meaning of
Section 27A of the Act or Section 21E of the Exchange Act) contained or incorporated by reference
in the Registration Statement, the Pricing Disclosure Package and the Prospectus has been made or
reaffirmed with a reasonable basis and in good faith.
(nn) Statistical and Market Data. Nothing has come to the attention of the Company that has
caused the Company to believe that statistical and market-related data
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included or incorporated by
reference in the Registration Statement, the Pricing Disclosure Package and the Prospectus is not
based on or derived from sources that the Company believes are be reliable and accurate in all
material respects.
(oo) Xxxxxxxx-Xxxxx Act. There is and has been no failure on the part of the Company or, to
the knowledge of the Company, any of the Company’s directors or officers, in
their capacities as such, to comply in all material respects with any provision of the
Xxxxxxxx-Xxxxx Act of 2002 and the related rules and regulations promulgated in connection
therewith (the “Xxxxxxxx-Xxxxx Act”), including Section 402 related to loans and Sections 302 and
906 related to certifications.
(pp) Status under the Securities Act. At the time of filing the Registration Statement and
any post-effective amendment thereto, at the earliest time thereafter that the Company or any
offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the
Securities Act) of the Securities and at the date hereof, the Company was not and is not an
“ineligible issuer,” as defined in Rule 405 under the Securities Act.
(qq) Solvency. The Company and the Guarantors taken as a whole are, and immediately after the
Closing Date will be, Solvent. As used herein, the term “Solvent” means, with respect to any
person on a particular date, that on such date (i) the fair market value of the assets of such
person is greater than the total amount of liabilities (including contingent liabilities) of such
person, (ii) the present fair salable value of the assets of such person (determined on a going
concern basis) is not less than the amount that will be required to pay the probable liabilities
of such person on its debts as they become absolute and matured, (iii) such person does not intend
to, and does not believe that it will, incur debts and other liabilities beyond such person’s
ability to pay as they mature and (iv) such person is not engaged in a business or transaction, and
is not about to engage in a business or transaction, for which such person’s property would
constitute an unreasonably small capital. The amount of contingent liabilities at any time shall
be computed as the amount that, in light of all the facts and circumstances existing at the time,
represents the amount that can be reasonably expected to become an actual or matured liability.
4. Covenants. The Company and the Guarantors, jointly and severally, covenant and
agree with each of the Underwriters as follows:
(a) Required Filings. The Company will file the Prospectus with the Commission within the
time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the Securities Act, will
file any Issuer Free Writing Prospectus to the extent required by Rule 433 under the Securities
Act; will file promptly all reports and any definitive proxy or information statements required to
be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act subsequent to the date of the Prospectus and during the Prospectus Delivery Period (as
defined in Section 4(b)) and will furnish copies of the Prospectus and each Issuer Free Writing
Prospectus (to the extent not previously delivered) to the Underwriters in New York City prior to
10:00 A.M., New York City time, on the business day next suc-
-15-
ceeding the date of this Agreement in
such quantities as the Representatives may reasonably request.
(b) Delivery of Copies. The Company will deliver, without charge, (i) to the Representatives,
upon request, a conformed copy of the Registration Statement as originally filed and each amendment
thereto, in each case including all exhibits and consents filed therewith; and (ii) to each
Underwriter (A) upon request, a conformed copy of the Registration Statement as
originally filed and each amendment thereto (without exhibits and consents filed therewith)
and (B) during the Prospectus Delivery Period (as defined below), as many copies of the Prospectus
(including all amendments and supplements thereto and documents incorporated by reference therein)
and each Issuer Free Writing Prospectus as the Representatives may reasonably request. As used
herein, the term “Prospectus Delivery Period” means such period of time after the first date of the
public offering of the Securities as in the opinion of counsel for the Underwriters a prospectus
relating to the Securities is required by law to be delivered (or required to be delivered but for
Rule 172 under the Securities Act) in connection with sales of the Securities by any Underwriter or
dealer.
(c) Amendments or Supplements, Issuer Free Writing Prospectuses. Before using, referring to
or filing any Issuer Free Writing Prospectus, and before filing any amendment or supplement to the
Registration Statement or the Prospectus, whether before or after the time that the Registration
Statement becomes effective, the Company will (i) furnish to the Representatives and counsel for
the Underwriters a copy of the proposed Issuer Free Writing Prospectus, amendment or supplement for
review and (ii) not use or file any such Issuer Free Writing Prospectus or file any such proposed
amendment or supplement to which the Representatives reasonably object (unless counsel advises the
Company that such filing is required under the Exchange Act at such time). The Company’s
obligations under this paragraph (c) shall expire on the Closing Date unless the Representatives
shall notify the Company in writing otherwise on or before the thirty-first day following the date
of the Prospectus. If such notice is given, the Company’s obligations under this paragraph (c)
shall be in effect from and as of the date of such notice and shall expire three months after the
Closing Date unless the Representative shall again notify the Company in writing otherwise on or
before the date three months after the Closing Date, in which case the Company’s obligations under
this paragraph (c) shall expire six months after the Closing Date.
(d) Notice to the Representatives. Until termination of the Prospectus Delivery Period, the
Company will advise the Representatives promptly (or, in the case of clauses (v) and (vi), promptly
upon the Company becoming aware thereof), and confirm such advice in writing, (i) when any
amendment to the Registration Statement has been filed or becomes effective (other than any
amendments made by the filing of documents under the Exchange Act); (ii) when any supplement to the
Prospectus or any amendment to the Prospectus or any Issuer Free Writing Prospectus has been filed
(other than any amendments or supplements made by the filing of documents under the Exchange Act);
(iii) of any request by the Commission to the Company for any amendment to the Registration
Statement or any amendment or supplement to the Prospectus or the receipt of any comments from the
Commission relating to the Registration Statement or any
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other request by the Commission to the
Company for any additional information; (iv) of the issuance by the Commission of any order
suspending the effectiveness of the Registration Statement or preventing or suspending the use of
any Preliminary Prospectus or the Prospectus; (v) of the initiation or threatening of any
proceeding for that purpose or pursuant to Section 8A of the Securities Act; (vi) of the occurrence
of any event within the Prospectus Delivery Period as a result of which the Prospectus, the Pricing
Disclosure Package or any Issuer Free Writing Prospectus as then amended or supplemented would
include any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in the light
of the circumstances existing when the Prospectus, the Pricing Disclosure Package or any such
Issuer Free Writing Prospectus is delivered to a purchaser, not misleading; and (vii) of the
receipt by the Company of any notice with respect to (a) any suspension of the qualification of the
Securities for offer and sale in any jurisdiction or (b) the initiation or threatening of any
proceeding for such purpose; and the Company will use its reasonable efforts to prevent the
issuance of any such order suspending the effectiveness of the Registration Statement, preventing
or suspending the use of any Preliminary Prospectus, any of the Pricing Disclosure Package or the
Prospectus or suspending any such qualification of the Securities and, if any such order is issued,
will use reasonable efforts to obtain as soon as possible the withdrawal thereof.
(e) Ongoing Compliance. (1) If during the Prospectus Delivery Period (i) any event shall
occur or condition shall exist as a result of which the Prospectus as then amended or supplemented
would include any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances existing when the
Prospectus is delivered to a purchaser, not misleading or (ii) it is necessary to amend or
supplement the Prospectus to comply with law, the Company will promptly notify the Underwriters
thereof and forthwith prepare and, subject to paragraph (c) above, file with the Commission and
furnish to the Underwriters and to such dealers as the Representatives may designate such
amendments or supplements to the Prospectus as may be necessary so that the statements in the
Prospectus as so amended or supplemented will not, in the light of the circumstances existing when
the Prospectus is delivered to a purchaser, be misleading or so that the Prospectus will comply
with law and (2) if at any time prior to the Closing Date (i) any event shall occur or condition
shall exist as a result of which the Pricing Disclosure Package as then amended or supplemented
would include any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances existing when the
Pricing Disclosure Package is delivered to a purchaser, not misleading or (ii) it is necessary to
amend or supplement the Pricing Disclosure Package to comply with law, the Company will promptly
notify the Underwriters thereof and forthwith prepare and, subject to paragraph (c) above, file
with the Commission (to the extent required) and furnish to the Underwriters and to such dealers as
the Representatives may designate such amendments or supplements to the Pricing Disclosure Package
as may be necessary so that the statements in the Pricing Disclosure Package as so amended or
supplemented will not, in the light of the circumstances existing when the Pricing Disclosure
Package is delivered to a purchaser, be misleading or so that the Pricing Disclosure Package will
comply with law.
-17-
(f) Blue Sky Compliance. The Company and the Guarantors will take such actions as the
Representatives reasonably request to qualify the Securities for offer and sale by the Underwriters
under the securities or Blue Sky laws of such jurisdictions as the Representatives shall reasonably
request and will continue such qualifications in effect so long as required for distribution of the
Securities; provided that the Company and the Guarantors shall not be required to (i)
qualify as a foreign corporation or other entity or as a dealer in securities in any such
jurisdiction where it would not otherwise be required to so qualify, (ii) file or take any action
that
would constitute a general consent to service of process in any such jurisdiction or (iii)
subject itself or any of its affiliates to taxation in any such jurisdiction if it is not otherwise
so subject.
(g) Earning Statement. The Company will make generally available to its security holders and
the Representatives as soon as reasonably practicable an earning statement that satisfies the
provisions of Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated
thereunder covering a period of at least twelve months beginning with the first fiscal quarter of
the Company occurring after the “effective date” (as defined in Rule 158) of the Registration
Statement; provided that such delivery requirements to the Company’s security holders and the
Representatives shall be deemed met by the Company’s compliance with its reporting requirements
pursuant to the Exchange Act if such compliance satisfies the conditions of Rule 158 thereof.
(h) Clear Market. During the period of 90 days following the date of this Agreement, the
Company will not, without the prior written consent of Banc of America Securities LLC (which
consent may be withheld at the sole discretion of Banc of America Securities LLC), directly or
indirectly, sell, offer, contract or grant any option to sell, pledge, transfer or establish an
open “put equivalent position” within the meaning of Rule 16a 1 under the Exchange Act, or
otherwise dispose of or transfer, or announce the offering of, or file any registration statement
under the Securities Act in respect of, any public debt securities of the Company (including
securities offered pursuant to Rule 144A under the Securities Act) having a tenor of more than one
year or securities exchangeable for or convertible into public debt securities of the Company
(including securities offered pursuant to Rule 144A under the Securities Act) having a tenor of
more than one year (other than as contemplated by this Agreement).
(i) Use of Proceeds. The Company will apply the net proceeds from the sale of the Securities
as described in the Registration Statement, the Pricing Disclosure Package and the Prospectus under
the heading “Use of proceeds”.
(j) No Stabilization. The Company and each Guarantor will not take, directly or indirectly,
any action designed to or that could reasonably be expected to cause or result in any stabilization
or manipulation of the price of any security of the Company to facilitate the sale of the
Securities.
(k) DTC. The Company shall use commercially reasonable efforts to obtain the approval of DTC
to permit the Notes to be eligible for “book-entry” transfer and settlement through the facilities
of DTC, and agrees to comply with all of its agreements set forth in the re-
-18-
presentation letters of
the Company to DTC relating to the approval of the Notes by DTC for “book-entry” transfer.
(l) Record Retention. The Company will, pursuant to reasonable procedures developed in good
faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the Commission
in accordance with Rule 433 under the Securities Act.
5. Certain Agreements of the Underwriters. Each Underwriter hereby represents and
agrees that:
(a) It has not used, authorized use of, referred to or participated in the planning for use
of, and will not use, authorize use of, refer to or participate in the planning for use of, any
“free writing prospectus”, as defined in Rule 405 under the Securities Act (which term includes use
of any written information furnished to the Commission by the Company and not incorporated by
reference into the Registration Statement and any press release issued by the Company) other than
(i) a free writing prospectus that contains no “issuer information” (as defined in Rule 433(h)(2)
under the Securities Act) that was not included (including through incorporation by reference) in
the Preliminary Prospectus or a previously filed Issuer Free Writing Prospectus, (ii) any Issuer
Free Writing Prospectus listed on Schedule C or prepared pursuant to Section 3(c) or
Section 4(c) above (including any electronic road show), or (iii) any free writing prospectus
prepared by such underwriter and approved by the Company in advance in writing (each such free
writing prospectus referred to in clauses (i) or (iii), an “Underwriter Free Writing Prospectus”).
(b) It has not and will not, without the prior written consent of the Company, use any free
writing prospectus that contains the final terms of the Securities unless such terms have
previously been included in a free writing prospectus filed with the Commission; provided that
Underwriters may use a term sheet substantially in the form of Exhibit D hereto (the “Final
Term Sheet”) without the consent of the Company; provided further that any Underwriter using such
term sheet shall notify the Company, and provide a copy of such term sheet to the Company, prior
to, or substantially concurrently with, the first use of such term sheet.
6. Conditions to the Obligations of the Underwriters. The obligation of each
Underwriter to purchase the Securities on the Closing Date as provided herein is subject to the
performance by the Company and each Guarantor of its covenants and other obligations hereunder and
to the following additional conditions:
(a) Registration Compliance, No Stop Order. No order suspending the effectiveness of the
Registration Statement shall be in effect, and no proceeding for such purpose pursuant to Section
8A under the Securities Act shall be pending before or threatened by the Commission; the Prospectus
and each Issuer Free Writing Prospectus, including the Final Term Sheet, shall have been timely
filed with the Commission under the Securities Act (in the case of an Issuer Free Writing
Prospectus, to the extent required by Rule 433 under the Securities Act)
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and in accordance with
Section 4(a) hereof; and all requests by the Commission for additional information shall have been
complied with to the reasonable satisfaction of the Representatives.
(b) Representations and Warranties. The representations and warranties of the Company and
each Guarantor contained herein shall be true and correct on the date hereof and on and as of the
Closing Date; and the statements of the Company and its officers made in any certificates delivered
pursuant to this Agreement shall be true and correct on and as of the Closing Date.
(c) No Downgrade. Subsequent to the earlier of (A) the Applicable Time and (B) the execution
and delivery of this Agreement, (i) no downgrading by Xxxxx’x Investors Service Inc. and Standard &
Poor’s Ratings Services shall have occurred in the rating accorded any debt securities of, or
guaranteed by, the Company or any of its subsidiaries that are rated by such organizations and (ii)
no such organization shall have publicly announced that it has under surveillance or review with
possible negative implications, or has changed its outlook with respect to, its rating of any such
debt securities (other than an announcement with positive implications of a possible upgrading).
(d) No Material Adverse Change. No event or condition of a type described in Section 3(g)
hereof shall have occurred or shall exist, which event or condition is not described in the Pricing
Disclosure Package (excluding any amendment or supplement thereto) and the Prospectus (excluding
any amendment or supplement thereto) and the effect of which in the judgment of the Representatives
makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the
Securities on the Closing Date, on the terms and in the manner contemplated by this Agreement, the
Pricing Disclosure Package and the Prospectus.
(e) Officer’s Certificate. The Representatives shall have received on and as of the Closing
Date, a certificate of the chief financial officer of the Company (i) confirming that such officer
has carefully reviewed the Registration Statement, the Pricing Disclosure Package and the
Prospectus and, to the knowledge of such officer, the representations set forth in Sections 3(b)
and 3(d) hereof are true and correct, (ii) confirming that the other representations and warranties
of the Company in this Agreement are true and correct and that the Company has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or
prior to the Closing Date, and (iii) to the effect set forth in paragraphs (a), (c) and (d) above.
(f) Comfort Letters. On the date of this Agreement and on the Closing Date, Deloitte & Touche
LLP shall have furnished to the Representatives, at the request of the Company, letters, dated the
respective dates of delivery thereof and addressed to the Underwriters, in form and substance
reasonably satisfactory to the Representatives, containing statements and information of the type
customarily included in accountants’ “comfort letters” to underwriters with respect to the
financial statements and certain financial information contained or incorporated by reference in
the Registration Statement, the Pricing Disclosure Package and the Prospectus; pro-
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vided, that the
letter delivered on the Closing Date, shall use a “cut-off” date no more than three business days
prior to such Closing Date.
(g) Opinions and Negative Assurance Statement of Counsel for the Company. The Representatives
shall have received (i) an opinion and negative assurance statement of Xxxxxxxxxx & Xxxxx LLP,
counsel for the Company, dated the Closing Date, and addressed to the Underwriters, in form and
substance reasonably satisfactory to the Representatives, substantially to the effect set forth in
Exhibit A hereto, (ii) an opinion of the General Counsel of the Company, dated the Closing Date,
and addressed to the Underwriters, in form and substance reasonably satisfactory to the
Representatives, substantially to the effect set forth in Exhibit B
hereto and (iii) an opinion of Xxxxx & Xxxxxxx LLP, Indiana counsel for the Company, dated the
Closing Date, and addressed to the Underwriters, in form and substance reasonably satisfactory to
the Representatives, substantially to the effect set forth in Exhibit C hereto.
(h) Opinion and 10b-5 Statement of Counsel for the Underwriters. The Representatives shall
have received on and as of the Closing Date, an opinion and 10b-5 statement of Xxxxx Xxxx &
Xxxxxxxx LLP, counsel for the Underwriters, with respect to such matters as the Representatives may
reasonably request, and such counsel shall have received such documents and information as they may
reasonably request to enable them to pass upon such matters.
(i) No Legal Impediment to Issuance. No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, adopted or issued by any federal, state or foreign
governmental or regulatory authority that would, as of the Closing Date, prevent the issuance or
sale of the Securities; and no injunction or order of any federal, state or foreign court shall
have been issued that would, as of the Closing Date, prevent the issuance or sale of the
Securities.
(j) Good Standing. The Representatives shall have received on and as of the Closing Date,
satisfactory evidence of the good standing of the Company, each domestic Guarantor and its domestic
Significant Subsidiaries in their respective jurisdictions of organization and in such other
domestic jurisdictions as the Representatives may reasonably request (to the extent such concept is
relevant in their respective jurisdictions of organization or such other jurisdictions), in each
case in writing or any standard form of telecommunication from the appropriate governmental
authorities of such jurisdictions.
(k) Form of Securities and Indenture. The Notes, the Guarantees and the Indenture shall be
executed by the Company, or the Guarantors, as the case may be, in form and substance reasonably
satisfactory to the Representatives.
(l) Additional Documents. On or prior to the Closing Date, the Company shall have furnished
to the Representatives such further certificates and documents as the Representatives may
reasonably request.
-21-
All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
7. Indemnification and Contribution.
(a) Indemnification of the Underwriters. The Company and the Guarantors agree, jointly and
severally, to indemnify and hold harmless each Underwriter, its affiliates, directors and officers
and each person, if any, who controls such Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims,
damages and liabilities (including, without limitation, reasonable outside legal fees and other
expenses reasonably incurred in connection with any suit, action or proceeding or
any claim asserted, as such fees and expenses are incurred), joint or several, to which they
may become subject insofar as such losses, claims, damages or liabilities arise out of, or are
based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the statements therein,
not misleading, (ii) or any untrue statement or alleged untrue statement of a material fact
contained in the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing
Prospectus, any “issuer information” filed or required to be filed pursuant to Rule 433(d) under
the Securities Act or any Pricing Disclosure Package (including any Pricing Disclosure Package that
has subsequently been amended), or caused by any omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading, in each case except insofar as such losses, claims,
damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any Underwriter
Information (as defined below in Section 7(b)).
(b) Indemnification of the Company and the Guarantors. Each Underwriter agrees, severally and
not jointly, to indemnify and hold harmless the Company, the Guarantors, their respective
directors, their respective officers and each person, if any, who controls the Company or any of
the Guarantors within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to
any losses, claims, damages or liabilities (including, without limitation, reasonable outside legal
fees and other expenses reasonably incurred in connection with any suit, action or proceeding or
any claim asserted, as such fees and expenses are incurred) that arise out of, or are based upon,
any untrue statement or omission or alleged untrue statement or omission made in reliance upon and
in conformity with any Underwriter Information (as defined below in this Section 7(b)) in the
Registration Statement, the Prospectus (or any amendment or supplement thereto), any Issuer Free
Writing Prospectus or any Pricing Disclosure Package, it being understood and agreed that the only
such information furnished by any Underwriter consists of the following (collectively, the
“Underwriter Information”): (1) the information in the last paragraph of the cover page of the
Preliminary
-22-
Prospectus and the Prospectus regarding the delivery of the Securities; (2) the names
of the Underwriters on the cover page of the Preliminary Prospectus and the Prospectus; (3) the
names of the Underwriters in the table in the first paragraph under the caption “Underwriting” in
the Preliminary Prospectus and the Prospectus; and (4) the two paragraphs under the subcaption
“Price stabilization and short positions” under the caption “Underwriting” in the Preliminary
Prospectus and the Prospectus.
(c) Notice and Procedures. If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against any person in
respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such
person (the “Indemnified Person”) shall promptly notify the person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing; provided that the
failure to notify the Indemnifying Person shall not relieve the Indemnifying Person from any
liability that it may have under paragraph (a) or (b) above except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses) by such
failure; and provided, further, that the failure to notify the Indemnifying Person
shall not relieve the Indemnifying Person from any liability that it may have to an Indemnified
Person otherwise than under paragraph (a) or (b) above. If any such proceeding shall be brought or
asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof,
the Indemnifying Person shall assume the defense thereof and retain counsel reasonably satisfactory
to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel
to the Indemnifying Person) to represent the Indemnified Person in such proceeding and shall pay
the fees and expenses of such counsel related to such proceeding, as incurred. In any such
proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there
may be legal defenses available to it that are different from or in addition to those available to
the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interest
between them. It is understood and agreed that the Indemnifying Person shall not, in connection
with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for all Indemnified
Persons, and that all such fees and expenses shall be paid or reimbursed as they are incurred. Any
such separate firm for any Underwriter, its affiliates, directors and officers and any control
persons of such Underwriter shall be designated in writing by Banc of America Securities LLC and
any such separate firm for the Company, the Guarantors, their respective directors and officers and
any control persons of the Company or any Guarantor shall be designated in writing by the Company.
The Indemnifying Person shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final non-appealable
judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person
from and against any loss or liability by reason of such settlement or judgment. No Indemnifying
Person shall, without the written consent of the Indemnified Person, effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Person is or could have been a
party
-23-
and indemnification could have been sought hereunder by such Indemnified Person, unless such
settlement (x) includes an unconditional release of such Indemnified Person, in form and substance
reasonably satisfactory to such Indemnified Person, from all liability on claims that are the
subject matter of such proceeding and (y) does not include any statement as to or any admission of
fault, culpability or a failure to act by or on behalf of any Indemnified Person.
(d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of
indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person as a result of such losses, claims, damages or liabilities
(i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, on the one hand, and the Underwriters, on the other, from the offering
of the Securities or (ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) but also the relative fault of the Company and the Guarantors, on the one hand, and the
Underwriters, on the other, in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable considerations.
The relative benefits received by the Company and the Guarantors, on the one hand, and the
Underwriters, on the other, shall be deemed to be in the same respective proportions as the net
proceeds (before deducting expenses, but after deducting underwriting discounts and commissions)
received by the Company from the sale of the Securities and the total underwriting discounts and
commissions received by the Underwriters in connection therewith, in each case as set forth in the
table on the cover of the Prospectus, bear to the aggregate offering price of the Securities. The
relative fault of the Company and the Guarantors, on the one hand, and the Underwriters, on the
other, 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 Guarantors or by the Underwriters and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.
(e) Limitation on Liability. The Company, the Guarantors and the Underwriters agree that it
would not be just and equitable if contribution pursuant to this Section 7 were determined by
pro rata allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the equitable
considerations referred to in paragraph (d) above. The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d)
above shall be deemed to include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such Indemnified Person in connection with any such action or claim
under this Section 7. Notwithstanding the provisions of this Section 7, in no event shall an
Underwriter be required to contribute any amount in excess of the amount by which the total
underwriting discounts and commissions received by such Underwriter with respect to the offering of
the Securities exceeds the amount of any damages that such Underwriter has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged omis-
-24-
sion. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section
7 are several in proportion to their respective purchase obligations hereunder and not joint.
(f) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any Indemnified Person
at law or in equity.
8. Effectiveness of Agreement. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.
9. Termination of this Agreement. This Agreement may be terminated in the absolute
discretion of the Representatives, by notice to the Company, if after the execution and delivery of
this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or
materially limited on or by any of the New York Stock Exchange, the American Stock Exchange, the
Nasdaq Stock Market, the Chicago Board Options Exchange, the Chicago Mercantile Exchange or the
Chicago Board of Trade; (ii) trading of any securities issued or guaranteed by the Company shall
have been suspended on the New York Stock Exchange or in any over-the-counter market; (iii) a
general moratorium on commercial banking activities shall have been declared by federal or New York
State authorities; or (iv) there shall have occurred any outbreak or escalation of hostilities or
any change in financial markets or any calamity or crisis, either within or outside the United
States, that, in the judgment of the Representatives, is material and adverse and makes it
impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on
the Closing Date, on the terms and in the manner contemplated by this Agreement, the Pricing
Disclosure Package and the Prospectus. Notwithstanding anything to the contrary in this Agreement,
any termination of this Agreement pursuant to this Section 9 shall be without liability on the part
of the Underwriters or the Company or any Guarantor, except that the Company and the Underwriters
will continue to be liable for the payment of expenses as set forth in Section 11 hereof and except
that the provisions of Section 7 hereof shall not terminate and shall remain in effect.
10. Default of One or More of the Several Underwriters. If, on the Closing Date, any
one or more of the several Underwriters shall fail or refuse to purchase Securities that it or they
have agreed to purchase hereunder on such date, and the aggregate principal amount of Securities
which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase does not
exceed 10% of the aggregate principal amount of the Securities to be purchased on such date, the
other Underwriters shall be obligated, severally, in the proportions that the aggregate principal
amount of Securities to be purchased set forth opposite their respective names on Schedule
A bears to the aggregate principal amount of Securities set forth opposite the names of all
such non-defaulting Underwriters, or in such other proportions as may be specified by the
Representatives with the consent of the non-defaulting Underwriters, to purchase the Securities
which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such
date. If, on the Closing Date, any one or more of the Underwriters shall fail or refuse to purchase
-25-
Securities that it or they have agreed to purchase hereunder on such date and the aggregate
principal amount of Securities with respect to which such default occurs exceeds 10% of the
aggregate principal amount of Securities to be purchased on such date, and arrangements
satisfactory to the Representatives and the Company for the purchase of such Securities on the
terms contained in this Agreement are not made within 48 hours after such default, this Agreement
shall terminate without liability of any party to any other party except that the provisions of
Section 7, Section 11 and Section 15(c) shall at all times be effective and shall survive such
termination. In any such case either the non-defaulting Representatives or the Company shall have
the right to postpone the Closing Date, but in no event for longer than seven days, in order that
any changes that in the opinion of counsel for the Company or counsel for the Underwriters may be
necessary to the Registration Statement, any Issuer Free Writing Prospectus, the Preliminary
Prospectus or the Prospectus or any other documents or arrangements may be effected. As used
in this Agreement, the term “Underwriter” shall be deemed to include any person substituted
for a defaulting Underwriter under this Section 10. Any action taken under this Section 10 shall
not relieve any defaulting Underwriter from liability in respect of any default of such Underwriter
under this Agreement.
11. Payment of Expenses.
(a) Whether or not the transactions contemplated by this Agreement are consummated or this
Agreement is terminated, the Company and the Guarantors, jointly and severally, agree to pay or
cause to be paid all costs and expenses incident to the performance of their obligations hereunder,
including without limitation, (i) all expenses incident to the issuance and delivery of the
Securities (including all printing and engraving costs), (ii) all necessary issue, transfer and
other stamp taxes in connection with the issuance and sale of the Securities to the Underwriters,
(iii) all fees and expenses of the Company’s and the Guarantors’ counsel, independent public or
certified public accountants and other advisors, (iv) all costs and expenses incurred in connection
with the preparation, printing, filing, shipping and distribution of the Registration Statement
(including financial statements, exhibits, schedules, consents and certificates of experts), each
Issuer Free Writing Prospectus, each Preliminary Prospectus and the Prospectus, and all amendments
and supplements thereto, and the mailing and delivering of copies thereof and of this Agreement,
the Indenture and the Securities to the Underwriters and dealers, (v) all filing fees and
reasonable out-of-pocket attorneys’ fees and expenses incurred by the Company, the Guarantors or
the Underwriters in connection with qualifying or registering (or obtaining exemptions from the
qualification or registration of) all or any part of the Securities for offer and sale under the
securities laws of the several states of the United States, the provinces of Canada or other
jurisdictions designated by the Underwriters (including, without limitation, the cost of preparing,
printing and mailing preliminary and final blue sky or legal investment memoranda, not to exceed
$10,000), (vi) the fees and expenses of the Trustee, including the fees and disbursements of
counsel for the Trustee in connection with the Indenture and the Securities, (vii) any fees payable
in connection with the rating of the Securities with the ratings agencies, (viii) any filing fees
for FINRA’s review of the offering of the Securities, (ix) all fees and expenses (including
reasonable fees and expenses of counsel) of the Company and the Guarantors in connection with
approval of the Securities by DTC for “book-entry” transfer, and (x) all expenses
-26-
incident to the
“road show” for the offering of the Securities, including the cost of any transportation, and (xi)
all other fees, costs and expenses referred to in Item 14 of Part II of the Registration Statement.
It is understood and agreed, however, that, except as provided in this Section 11 and in Section 7
hereof, the Underwriters will pay all of their own costs and expenses, including the fees of their
counsel.
(b) If (i) this Agreement is terminated pursuant to Section 9, (ii) the Company for any reason
fails to tender the Securities for delivery to the Underwriters (other than pursuant to Section 10)
or (iii) the Underwriters decline to purchase the Securities for any reason permitted under this
Agreement, the Company and the Guarantors, jointly and severally, agree to reimburse the
Underwriters for all accountable out-of-pocket costs and expenses (including the fees
and expenses of their counsel) reasonably incurred by the Underwriters in connection with this
Agreement and the offering contemplated hereby.
12. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and the officers
and directors and any controlling persons referred to in Section 7 hereof. Nothing in this
Agreement is intended or shall be construed to give any other person any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision contained herein. No
purchaser of Securities from any Underwriter shall be deemed to be a successor merely by reason of
such purchase.
13. Representations and Indemnities to Survive Delivery. The respective indemnities,
rights of contribution, representations, warranties and agreements of the Company, the Guarantors
and the Underwriters contained in this Agreement or made by or on behalf of the Company, the
Guarantors or the Underwriters pursuant to this Agreement or any certificate delivered pursuant
hereto shall survive the delivery of and payment for the Securities and shall remain in full force
and effect, regardless of any termination of this Agreement or any investigation made by or on
behalf of the Company, the Guarantors or the Underwriters.
14. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities
Act; (b) the term “business day” means any day other than a day on which banks are permitted or
required to be closed in New York City; and (c) the term “subsidiary” has the meaning set forth in
Rule 405 under the Securities Act.
15. Miscellaneous.
(a) Authority of the Representatives. Any action by the Underwriters hereunder may be taken
by the Representatives on behalf of the Underwriters, and any such action taken by the
Representatives shall be binding upon the Underwriters, and the parties hereto shall be entitled to
act and rely upon any statement, request, notice or agreement made or given by the Representatives
on behalf of the Underwriters.
-27-
(b) Notices. All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted and confirmed by any standard form of
telecommunication. Notices to the Underwriters shall be given to the Representatives c/o Banc of
America Securities LLC, Xxx Xxxxxx Xxxx, Xxx Xxxx, XX 00000 (fax: (000) 000 0000); Attention:
Legal Department and confirmed to X.X. Xxxxxx Securities Inc., 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx 00000 (fax: (000) 000-0000); Attention: Equity Syndicate Desk. Notices to the Company shall
be given to it at ArvinMeritor, Inc., 0000 Xxxx Xxxxx Xxxx, Xxxx, Xxxxxxxx 00000-0000, (fax: (000)
000-0000); Attention: Senior Vice President and General Counsel.
(c) Governing Law. This Agreement and any claim, controversy or dispute arising under or
related to this Agreement shall be governed by and construed in accordance with
the laws of the State of New York applicable to agreements made and to be performed in such
state.
(d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.
(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any
consent or approval to any departure therefrom, shall in any event be effective unless the same
shall be in writing and signed by the parties hereto.
(f) Headings. The headings herein are included for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.
-28-
If the foregoing is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below. It is understood that your acceptance of
this Agreement on behalf of each of the Underwriters is pursuant to the authority set forth in a
form of Agreement among Underwriters but without warranty on your part as to the authority of the
signers thereof.
Very truly yours, ARVINMERITOR, INC. |
||||
By: | /s/ Xxxxxxx X. Xxxxx | |||
Name: | Xxxxxxx X. Xxxxx | |||
Title: | Senior Vice President and Chief Financial Officer |
Guarantors XXXXX INNOVATION HOLDINGS, INC. XXXXX INNOVATION MANAGEMENT, INC. XXXXX INNOVATION MEXICO HOLDINGS II, LLC XXXXX INNOVATION MEXICO HOLDINGS III, LLC XXXXX INTERNATIONAL HOLDINGS, LLC XXXXX REPLACEMENT PRODUCTS FINANCE, LLC XXXXX TECHNOLOGIES, INC. ARVINMERITOR ASSEMBLY, LLC ARVINMERITOR BRAKE HOLDINGS, INC. ARVINMERITOR FILTERS HOLDING CO., LLC ARVINMERITOR FILTERS OPERATING CO., LLC ARVINMERITOR FORMER RIDE CONTROL OPERATING CO., INC. ARVINMERITOR HOLDINGS, LLC ARVINMERITOR HOLDINGS MEXICO, LLC ARVINMERITOR, INC., a Nevada corporation ARVINMERITOR INVESTMENTS, LLC ARVINMERITOR MASCOT, LLC ARVINMERITOR OE, LLC ARVINMERITOR TECHNOLOGY, LLC AVM, INC. EUCLID INDUSTRIES, LLC XXXXXXX EUROPE, INC. MAREMONT CORPORATION MAREMONT EXHAUST PRODUCTS, INC. MERITOR HEAVY VEHICLE BRAKING SYSTEMS (U.S.A.), INC. MERITOR HEAVY VEHICLE SYSTEMS, LLC MERITOR HEAVY VEHICLE SYSTEMS (MEXICO), INC. MERITOR HEAVY VEHICLE SYSTEMS (SINGAPORE) PTE., LTD. MERITOR HEAVY VEHICLE SYSTEMS (VENEZUELA), INC. MERITOR LIGHT VEHICLE SYSTEMS (SPAIN), INC. MERITOR MANAGEMENT, INC. MERITOR TRANSMISSION CORPORATION |
||||
By: | /s/ Xxxxxx Xxxxxxx | |||
Name: | Xxxxxx Xxxxxxx | |||
Title: | Vice President and Controller |
XXXXX EUROPEAN HOLDINGS (UK)
LIMITED |
||||
By: | /s/ Xxxxxx Xxxxxxx | |||
Name: | Xxxxxx Xxxxxxx | |||
Title: | Director | |||
XXXXX HOLDINGS NETHERLANDS B.V. |
||||
By: | /s/ Hugorinus C. Nuijt | |||
Name: | Hugorinus C. Nuijt | |||
Title: | Director | |||
ARVINMERITOR B.V. |
||||
By: | /s/ Hugorinus C. Nuijt | |||
Name: | Hugorinus C. Nuijt | |||
Title: | Director | |||
ARVINMERITOR LIMITED |
||||
By: | /s/ Xxxxxx Xxxxxxx | |||
Name: | Xxxxxx Xxxxxxx | |||
Title: | Director | |||
ARVINMERITOR SWEDEN AB |
||||
By: | /s/ Xxxxxxxxxx Xxxxxxx | |||
Name: | Xxxxxxxxxx Xxxxxxx | |||
Title: | Director |
MERITOR HOLDINGS NETHERLANDS B.V. |
||||
By: | /s/ Hugorinus C. Nuijt | |||
Name: | Hugorinus C. Nuijt | |||
Title: | Director | |||
MERITOR LUXEMBOURG S.A.R.L. |
||||
By: | /s/ Xxxxxxx Xxxxx | |||
Name: | Xxxxxxx Xxxxx | |||
Title: | Authorized Attorney | |||
MERITOR TECHNOLOGY, INC. |
||||
By: | /s/ Xxxxxx X. Xxxxx, XX | |||
Name: | Xxxxxx X. Xxxxx, XX | |||
Title: | President and Secretary |
EXECUTED AS A DEED by | ) | /s/ Xxxxxx X. Xxxxx, XX | |||||||
XXXXX CAYMAN ISLANDS, LTD. | ) | Duly Authorised Signatory | |||||||
) | |||||||||
) | Name: | Xxxxxx X. Xxxxx, XX | |||||||
) | |||||||||
) | Title: | President and Secretary | |||||||
) |
in the presence of: |
|||
/s/ Xxxx Xxx Xxxxxxxxx | |||
Signature of Witness |
|||
Name: |
Xxxx Xxx Xxxxxxxxx | ||
Address: |
|||
Occupation: |
Legal Assistant |
||
(Note: These details are to be completed in the witness’s own hand writing.) |
EXECUTED AS A DEED by
|
) | /s/ Xxxx X. Xxxxxxx | |||||||
MERITOR CAYMAN ISLANDS, LTD.
|
) | Duly Authorised Signatory | |||||||
) | |||||||||
) | Name: | Xxxx X. Xxxxxxx | |||||||
) | |||||||||
) | Title: | Treasurer | |||||||
) |
in the presence of: |
|||
/s/ Xxxx Xxx Xxxxxxxxx | |||
Signature of Witness |
|||
Name: |
Xxxx Xxx Xxxxxxxxx | ||
Address: |
|||
Occupation: |
Legal Assistant |
||
(Note: These details are to be completed in the witness’s own hand writing.) |
The foregoing Agreement is hereby confirmed and accepted by the Representatives as of the date
first above written.
BANC OF AMERICA SECURITIES LLC X.X. XXXXXX SECURITIES INC. Acting as Representatives of the several Underwriters named in the attached Schedule A. By: Banc of America Securities LLC |
||||
By: | /s/ Xxxx X. Kushemba | |||
Authorized Signatory | ||||
By: X.X. Xxxxxx Securities Inc. |
||||
By: | /s/ Xxxxxx X. Xxxxxx | |||
Authorized Signatory | ||||
SCHEDULE A
Aggregate | ||||
Principal | ||||
Amount of | ||||
Notes | ||||
To Be | ||||
Underwriters | Purchased | |||
Banc of America Securities LLC |
$ | 62,500,000 | ||
X.X. Xxxxxx Securities Inc. |
62,500,000 | |||
Citigroup Global Markets Inc. |
37,500,000 | |||
RBS Securities Inc. |
37,500,000 | |||
BNP Paribas Securities Corp. |
12,500,000 | |||
Fifth Third Securities, Inc. |
12,500,000 | |||
PNC Capital Markets LLC |
12,500,000 | |||
Scotia Capital Inc. |
12,500,000 | |||
Total |
$ | 250,000,000 |
SCHEDULE B
Guarantors
Xxxxx Cayman Islands, Ltd.
Xxxxx European Holdings (UK) Limited
Xxxxx Holdings Netherlands B.V.
Xxxxx Innovation Holdings, Inc. Delaware
Xxxxx Innovation Management, Inc.
Xxxxx Innovation Mexico Holdings II, LLC
Xxxxx Innovation Mexico Holdings III, LLC
Xxxxx International Holdings, LLC
Xxxxx Replacement Products Finance, LLC
Xxxxx Technologies, Inc.
ArvinMeritor Assembly, LLC
ArvinMeritor Brake Holdings, Inc.
ArvinMeritor B.V.
ArvinMeritor Filters Holding Co., LLC
ArvinMeritor Filters Operating Co., LLC
ArvinMeritor Former Ride Control Operating Co., Inc.
ArvinMeritor Holdings, LLC
ArvinMeritor Holdings Mexico, LLC
ArvinMeritor, Inc., a Nevada Corporation
ArvinMeritor Investments, LLC
ArvinMeritor Limited
ArvinMeritor Mascot, LLC
ArvinMeritor OE, LLC
Arvinmeritor Sweden AB
ArvinMeritor Technology, LLC
AVM, Inc.
Euclid Industries, LLC
Xxxxxxx Europe, Inc.
Maremont Corporation
Maremont Exhaust Products, Inc.
Meritor Cayman Islands, Ltd.
Meritor Heavy Vehicle Braking Systems (U.S.A.), Inc.
Meritor Heavy Vehicle Systems, LLC
Meritor Heavy Vehicle Systems (Mexico), Inc.
Meritor Heavy Vehicle Systems (Singapore) Pte., Ltd.
Meritor Heavy Vehicle Systems (Venezuela), Inc.
Meritor Holdings Netherlands B.V.
Meritor Light Vehicle Systems (Spain), Inc.
Meritor Luxembourg S.A.R.L.
Xxxxx European Holdings (UK) Limited
Xxxxx Holdings Netherlands B.V.
Xxxxx Innovation Holdings, Inc. Delaware
Xxxxx Innovation Management, Inc.
Xxxxx Innovation Mexico Holdings II, LLC
Xxxxx Innovation Mexico Holdings III, LLC
Xxxxx International Holdings, LLC
Xxxxx Replacement Products Finance, LLC
Xxxxx Technologies, Inc.
ArvinMeritor Assembly, LLC
ArvinMeritor Brake Holdings, Inc.
ArvinMeritor B.V.
ArvinMeritor Filters Holding Co., LLC
ArvinMeritor Filters Operating Co., LLC
ArvinMeritor Former Ride Control Operating Co., Inc.
ArvinMeritor Holdings, LLC
ArvinMeritor Holdings Mexico, LLC
ArvinMeritor, Inc., a Nevada Corporation
ArvinMeritor Investments, LLC
ArvinMeritor Limited
ArvinMeritor Mascot, LLC
ArvinMeritor OE, LLC
Arvinmeritor Sweden AB
ArvinMeritor Technology, LLC
AVM, Inc.
Euclid Industries, LLC
Xxxxxxx Europe, Inc.
Maremont Corporation
Maremont Exhaust Products, Inc.
Meritor Cayman Islands, Ltd.
Meritor Heavy Vehicle Braking Systems (U.S.A.), Inc.
Meritor Heavy Vehicle Systems, LLC
Meritor Heavy Vehicle Systems (Mexico), Inc.
Meritor Heavy Vehicle Systems (Singapore) Pte., Ltd.
Meritor Heavy Vehicle Systems (Venezuela), Inc.
Meritor Holdings Netherlands B.V.
Meritor Light Vehicle Systems (Spain), Inc.
Meritor Luxembourg S.A.R.L.
Meritor Management, Inc.
Meritor Technology, Inc.
Meritor Transmission Corporation
Meritor Technology, Inc.
Meritor Transmission Corporation
SCHEDULE C
Schedule of Free Writing Prospectuses included in the Disclosure Package
Final Term Sheet
SCHEDULE D
Significant Subsidiaries
Xxxxx Cayman Islands, Ltd.
Xxxxx European Holdings (UK) Limited
Xxxxx European Holdings (UK) Limited French Xxxxxx
Xxxxx International Holdings, LLC
ArvinMeritor B.V.
ArvinMeritor OE, LLC
ArvinMeritor Assembly, LLC
ArvinMeritor Canada Inc.
ArvinMeritor de México, S.A. de C.V.
ArvinMeritor do Brasil Sistemas Automotivos Ltda.
ArvinMeritor Holdings France SNC
ArvinMeritor Holdings Mexico, LLC
ArvinMeritor Investments, LLC
ArvinMeritor Light Vehicle Systems — France
Xxxxx Technologies, Inc.
Meritor HVS AB
Meritor Brazil Holdings, LLC
Meritor France SNC
Meritor Heavy Vehicle Systems, LLC
Meritor Holdings Netherlands B.V.
Meritor Luxembourg S.a.r.l.
Meritor Technology, Inc.
Xxxxx European Holdings (UK) Limited
Xxxxx European Holdings (UK) Limited French Xxxxxx
Xxxxx International Holdings, LLC
ArvinMeritor B.V.
ArvinMeritor OE, LLC
ArvinMeritor Assembly, LLC
ArvinMeritor Canada Inc.
ArvinMeritor de México, S.A. de C.V.
ArvinMeritor do Brasil Sistemas Automotivos Ltda.
ArvinMeritor Holdings France SNC
ArvinMeritor Holdings Mexico, LLC
ArvinMeritor Investments, LLC
ArvinMeritor Light Vehicle Systems — France
Xxxxx Technologies, Inc.
Meritor HVS AB
Meritor Brazil Holdings, LLC
Meritor France SNC
Meritor Heavy Vehicle Systems, LLC
Meritor Holdings Netherlands B.V.
Meritor Luxembourg S.a.r.l.
Meritor Technology, Inc.