HESS CORPORATION DEBT SECURITIES Underwriting Agreement
Exhibit 1.1
EXECUTION COPY
XXXX CORPORATION
DEBT SECURITIES
January 29, 2009
Xxxxxxx, Sachs & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
and
Greenwich Capital Markets, Inc.
000 Xxxxxxxxx Xxxx
Xxxxxxxxx, Xxxxxxxxxxx 00000
000 Xxxxxxxxx Xxxx
Xxxxxxxxx, Xxxxxxxxxxx 00000
As Representatives of the
Underwriters named in
Schedule II hereto
Underwriters named in
Schedule II hereto
Ladies and Gentlemen:
Xxxx Corporation, a Delaware corporation (the “Company”), proposes to issue and sell to the
underwriters named in Schedule II hereto (the “Underwriters”), for whom you are acting as
representatives (the “Representatives”), the principal amount of its debt securities identified in
Schedule I hereto (the “Securities”), to be issued under the indenture specified in Schedule I
hereto (the “Indenture”) between the Company and the Trustee identified in such Schedule (the
“Trustee”). If the firm or firms listed in Schedule II hereto include only the firm or firms
listed in Schedule I hereto, then the terms “Underwriters” and “Representatives”, as used herein,
shall each be deemed to refer to such firm or firms.
The Company has prepared and filed with the Securities and Exchange Commission (the
“Commission”) in accordance with the provisions of the Securities Act of 1933, as amended, and the
rules and regulations of the Commission thereunder (collectively, the “Securities Act”), an
“automatic shelf registration statement” as defined under Rule 405 under the Securities Act on Form
S-3 (File No. 333-132145) relating to certain securities to be issued from
time to time by the Company. The base prospectus filed as part of such registration statement,
in the form in which it has most recently been filed with the Commission on or prior to the date of
this Agreement, is hereinafter called the “Basic Prospectus”. Any preliminary prospectus (including
any preliminary prospectus supplement) relating to the Securities filed with the Commission
pursuant to Rule 424(b) under the Securities Act is hereinafter called a “Preliminary Prospectus”.
The various parts of such registration statement, including all exhibits thereto but excluding Form
T-1 and including any prospectus supplement relating to the Securities that is filed with the
Commission and deemed by virtue of Rule 430B to be part of such registration statement, each as
amended at the time such part of the registration statement became effective, are hereinafter
collectively called the “Registration Statement”. The Basic Prospectus, as amended and supplemented
immediately prior to the Applicable Time (as defined in Section 4(c) hereof), is hereinafter called
the “Pricing Prospectus”. The form of the final prospectus relating to the Securities filed with
the Commission pursuant to Rule 424(b) under the Securities Act in accordance with Section 5(a)
hereof is hereinafter called the “Prospectus”. Any reference herein to the Basic Prospectus, the
Pricing Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and
include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the
Securities Act, as of the date of such prospectus. Any reference to any amendment or supplement to
the Basic Prospectus, any Preliminary Prospectus, or the Prospectus shall be deemed to refer to and
include any post-effective amendment to the Registration Statement, any prospectus supplement
relating to the Securities filed with the Commission pursuant to Rule 424(b) under the Securities
Act and any documents filed under the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission thereunder (collectively, the “Exchange Act”), and incorporated
therein, in each case after the date of the Basic Prospectus, such Preliminary Prospectus, or the
Prospectus, as the case may be. Any reference to any amendment or supplement to the Registration
Statement shall be deemed to refer to and include any documents filed under the Exchange Act after
the effective date of the Registration Statement that is incorporated by reference in the
Registration Statement. Any “issuer free writing prospectus” as defined in Rule 433 under the
Securities Act relating to the Securities is hereinafter called an “Issuer Free Writing
Prospectus”.
The Company hereby agrees with the Underwriters as follows:
1. The Company agrees to issue and sell the Securities to the several Underwriters as
hereinafter provided, and each Underwriter, on the basis of the representations and warranties
herein contained, but subject to the conditions hereinafter stated, agrees to purchase, severally
and not jointly, from the Company the respective principal amount of Securities set forth opposite
such Underwriter’s name in Schedule II hereto at the purchase price set forth in Schedule I hereto
plus accrued interest, if any, from the date specified in Schedule I hereto to the date of payment
and delivery.
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2. The Company understands that the several Underwriters intend (i) to make a public offering
of their respective portions of the Securities and (ii) initially to offer the Securities upon the
terms set forth in the Pricing Disclosure Package (as defined in Section 4(c) hereof).
3. Payment for the Securities shall be made by wire transfer in immediately available funds to
the account specified by the Company to the Representatives, no later than noon the Business Day
(as defined below) prior to the Closing Date (as defined below), on the date and at the time and
place set forth in Schedule I hereto (or at such other time and place on the same or such other
date, not later than the fifth Business Day thereafter, as you and the Company may agree in
writing). As used herein, 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. The time and date of such payment and
delivery with respect to the Securities are referred to herein as the “Closing Date”.
Payment for the Securities shall be made against delivery to the nominee of The Depository
Trust Company for the respective accounts of the several Underwriters of the Securities of one or
more global notes (the “Global Note”) representing the Securities, with any transfer taxes payable
in connection with the transfer to the Underwriters of the Securities duly paid by the Company.
The Global Note will be made available for inspection by the Representatives at the office of
Xxxxxxx, Xxxxx & Co., at the address set forth above, not later than 1:00 P.M., New York City time,
on the Business Day prior to the Closing Date.
4. The Company represents and warrants to each Underwriter that:
(a) the Registration Statement has been filed with the Commission not earlier than
three years prior to the date hereof; the Registration Statement and any post-effective
amendment thereto, became effective on filing; and no stop order suspending the
effectiveness of the Registration Statement or any part thereof has been issued and no
proceeding for that purpose has been initiated or, to the knowledge of the Company,
threatened by the Commission, and no notice of objection of the Commission to the use of
the Registration Statement or any post-effective amendment thereto pursuant to Rule
401(g)(2) under the Securities Act has been received by the Company;
(b) no order preventing or suspending the use of any Preliminary Prospectus or any
Issuer Free Writing Prospectus has been issued by the Commission, and each Preliminary
Prospectus, at the time of filing thereof, conformed in all material respects to the
requirements of the Securities Act and the Trust Indenture Act of 1939, as amended and the
rules and regulations of the Commission thereunder (collectively, the “Trust Indenture
Act”), and did not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances
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under which they were made, not misleading; provided, however, that the foregoing
representations and warranties shall not apply to any statements or omissions made in
reliance upon and in conformity with information relating to any Underwriter furnished to
the Company in writing by such Underwriter through the Representatives expressly for use
therein;
(c) for the purposes of this Agreement, the “Applicable Time” is 5:00 pm (Eastern
time) on the date of this Agreement; the Pricing Prospectus as supplemented by the final
term sheet prepared and filed pursuant to Section 5(a) hereof, taken together
(collectively, the “Pricing Disclosure Package”) as of the Applicable Time, did not
include any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; and each Issuer Free Writing Prospectus listed on
Schedule III(a) hereto does not conflict with the information contained in the
Registration Statement, the Pricing Prospectus or the Prospectus and each such Issuer Free
Writing Prospectus, as supplemented by and taken together with the Pricing Disclosure
Package as of the Applicable Time, did not include any untrue statement of a material fact
or omit to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided,
however, that this representation and warranty shall not apply to statements or omissions
made in an Issuer Free Writing Prospectus in reliance upon and in conformity with
information furnished in writing to the Company by an Underwriter through the
Representatives expressly for use therein;
(d) the documents incorporated by reference in the Pricing Prospectus and the
Prospectus, when they became effective or were filed with the Commission, as the case may
be, conformed in all material respects to the requirements of the Securities Act or the
Exchange Act, as applicable, and the rules and regulations of the Commission thereunder,
and none of such documents contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading; any
further documents so filed and incorporated by reference in the Prospectus or any further
amendment or supplement thereto, when such documents become effective or are filed with
the Commission, as the case may be, will conform in all material respects to the
requirements of the Securities Act or the Exchange Act, as applicable, and the rules and
regulations of the Commission thereunder and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made,
not misleading; and no such documents were filed with the Commission since the
Commission’s close of business
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on the Business Day immediately prior to the date of this Agreement and prior to the
execution of this Agreement, except as set forth on Schedule III(b) hereto;
(e) the Registration Statement conforms, and the Prospectus and any further
amendments or supplements to the Registration Statement and the Prospectus will conform,
in all material respects to the requirements of the Securities Act and the Trust Indenture
Act and the rules and regulations of the Commission thereunder and do not and will not, as
of the applicable effective date as to each part of the Registration Statement and as of
the applicable filing date as to the Prospectus and any amendment or supplement thereto,
contain an untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading; provided,
however, that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished in writing to
the Company by an Underwriter through the Representatives expressly for use therein;
(f) (A) (i) at the time of filing the Registration Statement, (ii) at the time of the
most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the
Securities Act (whether such amendment was by post-effective amendment, incorporated
report filed pursuant to Section 13 or 15(d) of the Exchange Act or form of prospectus),
and (iii) at the time the Company or any person acting on its behalf (within the meaning,
for this clause only, of Rule 163(c) under the Securities Act) made any offer relating to
the Securities in reliance on the exemption of Rule 163 under the Securities Act, the
Company was a “well-known seasoned issuer” as defined in Rule 405 under the Securities
Act; and (B) at the earliest time after the filing of the Registration Statement that the
Company or another offering participant made a bona fide offer (within the meaning of Rule
164(h)(2) under the Securities Act) of the Securities, the Company was not an “ineligible
issuer” as defined in Rule 405 under the Securities Act;
(g) the financial statements, and the related notes thereto, included or incorporated
by reference in the Registration Statement, the Pricing Prospectus and the Prospectus
present fairly in all material respects the consolidated financial position of the Company
and its consolidated subsidiaries as of the dates indicated and the results of their
operations and the changes in their consolidated cash flows for the periods specified in
conformity with generally accepted accounting principles applied on a consistent basis,
and the supporting schedules included or incorporated by reference in the Registration
Statement present fairly in all material respects the information required to be stated
therein;
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(h) since the respective dates as of which information is given in the Registration
Statement and the Pricing Prospectus, there has not been any material adverse change, or
any development involving a prospective material adverse change, in or affecting the
general affairs, business, management, financial position, stockholders’ equity or
results of operations of the Company and its subsidiaries, taken as a whole, otherwise
than as set forth or contemplated in the Pricing Prospectus;
(i) the Company has been duly incorporated and is validly existing as a corporation
in good standing under the laws of Delaware, with corporate power and authority to own
its properties and conduct its business as described in the Pricing Prospectus, and has
been duly qualified as a foreign corporation for the transaction of business and is in
good standing under the laws of each other jurisdiction in which it owns or leases
properties, or conducts any business, so as to require such qualification, other than
where the failure to be so qualified or in good standing would not have a material adverse
effect on the Company and its subsidiaries taken as a whole;
(j) each of Xxxx Oil and Gas Holdings Inc. and Xxxx Oil Virgin Islands Corp. (the
“Significant Subsidiaries”) has been duly incorporated and is validly existing as a
corporation under the laws of its jurisdiction of incorporation, with corporate power and
authority to own its properties and conduct its business as described in the Pricing
Prospectus, and has been duly qualified as a foreign corporation for the transaction of
business and is in good standing under the laws of each jurisdiction in which it owns or
leases properties or conducts any business so as to require such qualification, other than
where the failure to be so qualified or in good standing would not have a material adverse
effect on the Company and its subsidiaries taken as a whole; and all the outstanding
shares of capital stock of each Significant Subsidiary of the Company have been duly
authorized and validly issued, are fully-paid and non-assessable, and (except in the case
of foreign subsidiaries, for directors’ qualifying shares) are owned by the Company,
directly or indirectly, free and clear of all liens, encumbrances, security interests and
claims;
(k) this Agreement has been duly authorized, executed and delivered by the Company;
(l) the Securities have been duly authorized, and, when issued and delivered pursuant
to this Agreement, will have been duly executed, authenticated, issued and delivered and
will constitute valid and binding obligations of the Company entitled to the benefits
provided by the Indenture; the Indenture has been duly authorized and duly qualified under
the Trust Indenture Act and, when executed and delivered by the Company and the Trustee,
the Indenture will constitute a valid and binding instrument; and the Securities and the
Indenture will conform in all
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material respects to the descriptions thereof in the Pricing Disclosure Package and
Prospectus;
(m) neither the Company nor any of its subsidiaries is, or with the giving of notice
or lapse of time or both would be, in violation of or in default under, its Certificate of
Incorporation or By-Laws or, except for violations and defaults which individually and in
the aggregate are not material to the Company and its subsidiaries taken as a whole, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which it or any of them or
any of their respective properties is bound; the issue and sale of the Securities and the
performance by the Company of all its obligations under the Securities, the Indenture and
this Agreement and the consummation by it of the transactions herein and therein
contemplated will not (A) conflict with or result in a breach of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company or any of its subsidiaries
is a party or by which the Company or any of its subsidiaries is bound or to which any of
the property or assets of the Company or any of its subsidiaries is subject, except for
such conflicts, breaches or defaults as would not have a material adverse effect on the
Company and its subsidiaries, taken as a whole, or (B) result in any violation of (i) the
provisions of the Certificate of Incorporation or the By-Laws of the Company or (ii) any
applicable law or statute or any order, rule or regulation of any court or governmental
agency or body having jurisdiction over the Company, its subsidiaries or any of their
respective properties, except in the case of this clause (ii), for violations that will
not have a material adverse effect on the Company and its subsidiaries, taken as a whole;
(n) no consent, approval, authorization, order, license, registration or
qualification of or with any such court or governmental agency or body is required on the
part of the Company for the issue and sale of the Securities or the consummation by the
Company of the transactions contemplated by this Agreement or the Indenture, except such
consents, approvals, authorizations, orders, licenses, registrations or qualifications as
have been obtained under the Securities Act, the Trust Indenture Act and as may be
required under state securities or Blue Sky Laws in connection with the purchase and
distribution of the Securities by the Underwriters and except for those which, if not
obtained, will not have a material adverse effect on the Company and its subsidiaries,
taken as a whole;
(o) other than as set forth or contemplated in the Pricing Prospectus, there are no
legal or governmental investigations, actions, suits or proceedings pending against, or,
to the knowledge of the Company, threatened against or affecting the Company or any of its
subsidiaries or
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any of their respective properties or to which the Company or any of its subsidiaries
is or may be a party or to which any property of the Company or any of its subsidiaries is
or may be subject which could individually or in the aggregate reasonably be expected to
have a material adverse effect on the general affairs, business, management, financial
position, stockholders’ equity or results of operations of the Company and its
subsidiaries taken as a whole and, to the best of the Company’s knowledge, no such
proceedings are threatened or contemplated by governmental authorities or threatened by
others; and there are no statutes, regulations, contracts or other documents that are
required to be filed as an exhibit to the Registration Statement or required to be
described in the Registration Statement or the Pricing Prospectus which are not filed or
described as required;
(p) Ernst & Young LLP, who have certified certain financial statements of the Company
and its subsidiaries, and have audited the Company’s internal control over financial
reporting, are independent public accountants as required by the Securities Act and the
rules and regulations of the Commission thereunder;
(q) the Company is not and, after giving effect to the offering and sale of the
Securities, 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”);
(r) there are no existing or, to the best knowledge of the Company, threatened labor
disputes with the employees of the Company or any of its subsidiaries which are likely to
have a material adverse effect on the Company and its subsidiaries taken as a whole;
(s) the Company and its subsidiaries (i) are in compliance with any and all
applicable foreign, federal, state and local laws and regulations or other legal
requirements relating to the protection of human health and safety or natural resources,
the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective
businesses and (iii) are in compliance with all terms and conditions of any such permit,
license or approval, except where such noncompliance with Environmental Laws, failure to
receive required permits, licenses or other approvals or failure to comply with the terms
and conditions of such permits, licenses or approvals would not, singly or in the
aggregate, have a material adverse effect on the Company and its subsidiaries, taken as a
whole;
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(t) the Company maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) under the Exchange Act) that complies with the
requirements of the Exchange Act and has been designed by the Company’s principal
executive officer and principal financial officer, or under their supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted
accounting principles. The Company’s internal control over financial reporting is
effective and the Company is not aware of any material weaknesses in its internal control
over financial reporting;
(u) since the date of the latest audited financial statements included or
incorporated by reference in the Pricing Prospectus, there has been no change in the
Company’s internal control over financial reporting that has materially affected, or is
reasonably likely to materially affect, the Company’s internal control over financial
reporting;
(v) the Company maintains disclosure controls and procedures (as such term is defined
in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the
Exchange Act; such disclosure controls and procedures have been designed to ensure that
material information relating to the Company and its subsidiaries is made known to the
Company’s principal executive officer and principal financial officer by others within
those entities; and such disclosure controls and procedures are effective;
(w) neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries has made any payment of funds of the Company or any of its subsidiaries or
received or retained any funds in violation of any law, rule or regulation (including,
without limitation, the Foreign Corrupt Practices Act of 1977, as amended); and
(x) neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, 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. Treasury Department (“OFAC”); and the Company
will not directly or indirectly use the proceeds of the offering of the Securities
contemplated hereby, or lend, contribute or otherwise make available such proceeds to any
of its 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.
5. The Company covenants and agrees with each of the several Underwriters as follows:
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(a) to file the Prospectus pursuant to Rule 424 under the Securities Act not later
than the Commission’s close of business on the second Business Day following the date of
determination of the offering price of the Securities or, if applicable, such earlier time
as may be required by Rule 424(b); to prepare a final term sheet, containing solely a
description of the Securities, in a form approved by you and to file such term sheet
pursuant to Rule 433(d) under the Securities Act within the time required by such Rule;
and to file promptly all other material required to be filed by the Company with the
Commission pursuant to Rule 433(d) under the Securities Act; to 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 for so long as the delivery of a prospectus
(or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is
required in connection with the offering or sale of the Securities;
(b) to furnish to you and counsel for the Underwriters, at the expense of the
Company, a signed copy of the Registration Statement (as originally filed) and each
amendment thereto, in each case including exhibits and documents incorporated by reference
therein and, during the period mentioned in paragraph (e) below, to furnish each of the
Underwriters as many copies of the Prospectus (including all amendments and supplements
thereto) and documents incorporated by reference therein as you may reasonably request;
(c) from the date hereof and prior to the Closing Date, to furnish to you a copy of
any proposed amendment or supplement to the Registration Statement or the Prospectus, for
your review, and not to file any such proposed amendment or supplement to which you
reasonably object;
(d) for so long as the delivery of a prospectus (or in lieu thereof, the notice
referred to in Rule 173(a) under the Securities Act) is required in connection with the
offering or sale of the Securities, to advise you promptly, and to confirm such advice in
writing, (i) when any amendment to the Registration Statement shall have become effective,
(ii) of any request by the Commission for any amendment to the Registration Statement or
any amendment or supplement to the Prospectus or for any additional information, (iii) of
the issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or the initiation or threatening of any proceeding for that
purpose, (iv) of the receipt by the Company of any notification with respect to any
suspension of the qualification of the Securities for offer and sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose, (v) of the issuance
by the Commission of any stop order or of any order preventing or suspending the use of
any Preliminary Prospectus or other
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prospectus in respect of the Securities, and (vi) of any notice of objection of the
Commission to the use of the Registration Statement or any post-effective amendment
thereto pursuant to Rule 401(g)(2) under the Securities Act; and to use its reasonable
best efforts to prevent the issuance of any such stop order or notification and, if
issued, to obtain as soon as possible the withdrawal thereof;
(e) if, during such period 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 in lieu thereof, the notice referred to
in Rule 173(a) under the Securities Act) in connection with sales by an Underwriter or
dealer, any event shall occur as a result of which it is necessary to amend or supplement
the Prospectus in order to make the statements as to material facts therein, in the light
of the circumstances when the Prospectus is delivered to a purchaser (or in lieu thereof,
the notice referred to in Rule 173(a) under the Securities Act), not misleading, or if it
is necessary to amend or supplement the Prospectus to comply with law, forthwith to
prepare and furnish, at the expense of the Company, to the Underwriters and to the dealers
(whose names and addresses you will furnish to the Company) to which Securities may have
been sold by you on behalf of the Underwriters and to any other dealers upon request, such
amendments or supplements to the Prospectus as may be necessary so that the statements as
to material facts in the Prospectus as so amended or supplemented will not, in the light
of the circumstances when the Prospectus is delivered to a purchaser, be misleading or so
that the Prospectus will comply with law;
(f) if, by the third anniversary (the “Renewal Deadline”) of the initial effective
date of the Registration Statement, any of the Securities remain unsold by the
Underwriters, the Company will file, if it has not already done so and is eligible to do
so, a new automatic shelf registration statement relating to the Securities, in a form
satisfactory to the Representatives. If at the Renewal Deadline the Company is no longer
eligible to file an automatic shelf registration statement, the Company will, if it has
not already done so, file a new shelf registration statement relating to the Securities,
in a form satisfactory to the Representatives and will use its best efforts to cause such
registration statement to be declared effective within 180 days after the Renewal
Deadline. The Company will take all other action necessary or appropriate to permit the
public offering and sale of the Securities to continue as contemplated in the expired
registration statement relating to the Securities. References herein to the Registration
Statement shall include such new automatic shelf registration statement or such new shelf
registration statement, as the case may be;
(g) to endeavor to qualify the Securities for offer and sale under the securities or
Blue Sky laws of such jurisdictions as you shall reasonably request and to continue such
qualification in effect so long as
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reasonably required for distribution of the Securities; provided that the Company
shall not be required to file a general consent to service of process in any jurisdiction,
or become subject to tax or to register as a foreign corporation in any jurisdiction in
which it is not now so registered;
(h) to make generally available to its security holders and to you as soon as
practicable an earnings statement which shall satisfy 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;
(i) so long as the Securities are outstanding, to furnish to you copies of all
reports or other communications (financial or other) furnished generally to holders of
Securities, and copies of any reports and financial statements filed with the Commission
or any national securities exchange;
(j) during the period beginning on the date hereof and continuing to and including
the Business Day following the Closing Date, not to offer, sell, contract to sell or
otherwise dispose of any debt securities of or guaranteed by the Company which are
substantially similar to the Securities;
(k) to pay the required Commission filing fees relating to the Securities within the
time required by Rule 456(b)(1) under the Securities Act without regard to the proviso
therein and otherwise in accordance with Rules 456(b) and 457(r) under the Securities Act;
and
(l) whether or not the transactions contemplated in this Agreement are consummated or
this Agreement is terminated, to pay or cause to be paid all costs and expenses incident
to the performance of its obligations hereunder, including without limiting the generality
of the foregoing, all costs and expenses (i) incident to the preparation, issuance,
execution, authentication and delivery of the Securities, including any expenses of the
Trustee, (ii) incident to the preparation, printing and filing under the Securities Act of
the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, any Issuer
Free Writing Prospectus and the Prospectus (including in each case all exhibits,
amendments and supplements thereto), (iii) incurred in connection with the registration or
qualification and determination of eligibility for investment of the Securities under the
laws of such jurisdictions as the Underwriters may designate (including reasonable fees of
counsel for the Underwriters and their disbursements), (iv) related to any filing with the
Financial Industry Regulatory Authority, Inc., (v) in connection with the printing
(including word processing and duplication costs) and delivery of this Agreement, the
Indenture, the Preliminary and Supplemental Blue
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Sky Memoranda and any Legal Investment Survey and the furnishing to Underwriters and
dealers of copies of the Registration Statement, the Basic Prospectus, any Preliminary
Prospectus, any Issuer Free Writing Prospectus and the Prospectus, including mailing and
shipping, as herein provided, (vi) payable to rating agencies in connection with the
rating of the Securities, (vii) any expenses incurred by the Company in connection with a
“road show” presentation to potential investors and (viii) the cost and charges of any
transfer agent.
6.
(a) (i) The Company represents and agrees that, other than the final term
sheet prepared and filed pursuant to Section 5(a) hereof, without the prior
consent of the Representatives, the Company has not made and will not make any
offer relating to the Securities that would constitute a “free writing
prospectus” as defined in Rule 405 under the Securities Act;
(ii) each Underwriter represents and agrees that, without the prior consent
of the Company and the Representatives, other than one or more term sheets
relating to the Securities containing customary information and conveyed to
purchasers of Securities, it has not made and will not make any offer relating
to the Securities that would constitute a free writing prospectus; and
(iii) any such free writing prospectus the use of which has been consented
to by the Company and the Representatives (including the final term sheet
prepared and filed pursuant to Section 5(a) hereof) is listed on Schedule III(a)
hereto;
(b) The Company has complied and will comply with the requirements of Rule 433 under
the Securities Act applicable to any Issuer Free Writing Prospectus, including timely
filing with the Commission or retention where required and legending; and
(c) The Company agrees that if at any time following issuance of an Issuer Free
Writing Prospectus any event occurred or occurs as a result of which such Issuer Free
Writing Prospectus would conflict with the information in the Registration Statement, the
Pricing Prospectus or the Prospectus or would include an untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein,
in the light of the circumstances then prevailing, not misleading, the Company will give
prompt notice thereof to the Representatives and, if requested by the Representatives,
will prepare and furnish without charge to each Underwriter an Issuer Free Writing
Prospectus or other document which will correct such conflict, statement or omission;
provided, however, that this representation and warranty shall not apply to any statements
or
13
omissions in an Issuer Free Writing Prospectus made in reliance upon and in
conformity with information furnished in writing to the Company by an Underwriter through
the Representatives expressly for use therein.
7. The several obligations of the Underwriters hereunder shall be subject to the following
conditions:
(a) the representations and warranties of the Company contained herein are true and
correct on and as of the Closing Date as if made on and as of the Closing Date and the
Company shall have complied with all agreements and all conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date;
(b) the Prospectus shall have been filed with the Commission pursuant to Rule 424
within the applicable time period prescribed for such filing by the rules and regulations
under the Securities Act; the final term sheet contemplated by Section 5(a) hereof, and
any other material required to be filed by the Company pursuant to Rule 433(d) under the
Securities Act, shall have been filed with the Commission within the applicable time
periods prescribed for such filings by Rule 433; no stop order suspending the
effectiveness of the Registration Statement shall be in effect, and no proceedings for
such purpose shall be pending before or threatened by the Commission and no notice of
objection of the Commission to the use of the Registration Statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Securities Act shall have been
received; no stop order suspending or preventing the use of the Prospectus or any Issuer
Free Writing Prospectus shall have been initiated or threatened by the Commission; and all
requests for additional information on the part of the Commission shall have been complied
with to your reasonable satisfaction;
(c) subsequent to the execution and delivery of this Agreement and prior to the
Closing Date, there shall not have occurred any downgrading, nor shall any notice have
been given of (i) any downgrading, (ii) any intended or potential downgrading or (iii) any
review or possible change that does not indicate an improvement, in the rating accorded
any securities of or guaranteed by the Company by any “nationally recognized statistical
rating organization”, as such term is defined for purposes of Rule 436(g)(2) under the
Securities Act;
(d) since the respective dates as of which information is given in the Pricing
Prospectus there shall not have been any material adverse change, or any development
involving a prospective material adverse change, in or affecting the general affairs,
business, management, financial position, stockholders’ equity or results of operations of
the Company and its subsidiaries, taken as a whole, otherwise than as set forth or
contemplated in the Pricing Prospectus, the effect of which in the
14
judgment of the Representatives makes it impracticable or inadvisable to proceed with
the public offering or the delivery of the Securities on the terms and in the manner
contemplated in the Pricing Prospectus; and neither the Company nor any of its Significant
Subsidiaries has sustained since the date of the latest audited financial statements
included or incorporated by reference in the Pricing Prospectus any material loss or
interference with its business from fire, explosion, flood or other calamity not covered
by insurance, or from any labor dispute or court or governmental action, order or decree,
otherwise than as set forth or contemplated in the Pricing Prospectus;
(e) you shall have received on and as of the Closing Date a certificate of an
executive officer of the Company, with specific knowledge about the Company’s financial
matters, to the effect set forth in subsections (a) through (c) (with respect to the
respective representations, warranties, agreements and conditions of the Company) of this
Section and to the further effect that there has not occurred any material adverse change,
or any development involving a prospective material adverse change, in or affecting the
general affairs, business, management, financial position, stockholders’ equity or results
of operations of the Company and its subsidiaries taken as a whole from that set forth or
contemplated in the Registration Statement and the Pricing Prospectus.
(f) White & Case LLP, counsel for the Company, shall have furnished to you their
written opinion, dated the Closing Date, in form and substance satisfactory to you, to the
effect that:
(i) the Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of Delaware, with corporate power
and authority to own its properties and conduct its business as described in the
Prospectus as amended or supplemented;
(ii) this Agreement has been duly authorized, executed and delivered by the
Company;
(iii) the Securities have been duly authorized, executed and delivered by
the Company and, when duly authenticated in accordance with the terms of the
Indenture and delivered to and paid for by the Underwriters in accordance with
the terms of this Agreement, will constitute valid and binding obligations of
the Company entitled to the benefits provided by the Indenture, subject to
customary exceptions;
(iv) the Indenture has been duly authorized, executed and delivered by the
Company and constitutes a valid and binding instrument of the Company, subject
to customary exceptions; and
15
the Indenture has been duly qualified under the Trust Indenture Act;
(v) the issue and sale of the Securities and the performance by the Company
of its obligations under the Securities, the Indenture and this Agreement and
the consummation by it of the transactions herein and therein contemplated will
not result in any violation of the provisions of the Certificate of
Incorporation or the By-Laws of the Company or any applicable law or statute;
(vi) no consent, approval, authorization, order, license, registration or
qualification of or with any governmental agency or body is required for the
issue and sale by the Company of the Securities or the consummation by the
Company of the other transactions contemplated by this Agreement or the
Indenture, except such consents, approvals, authorizations, orders, licenses,
registrations or qualifications as have been obtained under the Securities Act
and the Trust Indenture Act and as may be required under state securities or
Blue Sky laws in connection with the purchase and distribution of the Securities
by the Underwriter;
(vii) the statements in the Prospectus under “Description of Notes”,
“United States Federal Income Tax Considerations”, “Debt Securities” and in the
Registration Statement in Item 15, insofar as such statements constitute a
summary of the legal matters, documents or proceedings referred to therein,
fairly present in all material respects the information called for with respect
to such legal matters, documents or proceedings;
(viii) such counsel (A) does not believe that (except for the financial
statements and financial data included therein and the Form T-1 of the Trustee,
as to which such counsel need express no belief) any part of the Registration
Statement (including the documents incorporated by reference therein) filed with
the Commission pursuant to the Securities Act relating to the Securities, when
such part became effective, contained an untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, (B) is of the opinion that the
Registration Statement and the Prospectus and any amendments and supplements
thereto (except for the financial statements and financial data included therein
as to which such counsel need express no opinion) comply as to form in all
material respects with the requirements of the Securities Act and the Trust
Indenture Act; (C) does not believe that (except for the financial
16
statements and financial data included therein, as to which such counsel
need express no belief) the Pricing Disclosure Package, as of the Applicable
Time, contained any untrue statement of a material fact or omitted to state a
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading; and (D) does not
believe that (except for the financial statements and financial data included
therein, as to which such counsel need express no belief) the Prospectus or any
further amendment or supplement thereto, as of its date and as of the Closing
Date, contained or contains any untrue statement of a material fact or omitted
or omits 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; and
(ix) the Company is not and, after giving effect to the offering and sale
of the Securities, will not be an “investment company” or entity “controlled” by
an “investment company”, as such terms are defined in the Investment Company
Act.
(g) Xxxxxxx X. Xxxxxxx, Esq., Senior Vice President and General Counsel of the
Company, shall have furnished to you his written opinion, dated the Closing Date, in form
and substance satisfactory to you, to the effect that:
(i) the Company has been duly qualified as a foreign corporation for the
transaction of business and is in good standing under the laws of each other
jurisdiction in which it owns or leases properties, or conducts any business, so
as to require such qualification, other than where the failure to be so
qualified or in good standing would not have a material adverse effect on the
Company and its subsidiaries taken as a whole;
(ii) each of the Significant Subsidiaries has been duly incorporated and is
validly existing as a corporation under the laws of its jurisdiction of
incorporation with corporate power and authority to own its properties and
conduct its business as described in the Prospectus and has been duly qualified
as a foreign corporation for the transaction of business and is in good standing
under the laws of each other jurisdiction in which it owns or leases properties,
or conducts any business, so as to require such qualification, other than where
the failure to be so qualified and in good standing would not have a material
adverse effect on the Company and its subsidiaries taken as a whole; and all of
the issued shares of capital stock of each subsidiary have been duly and validly
authorized and issued, are fully paid and non-assessable, and (except in the
case of foreign subsidiaries, for
17
directors’ qualifying shares) are owned directly or indirectly by the
Company, free and clear of all liens, encumbrances, equities or claims;
(iii) other than as set forth or contemplated in the Prospectus, there are
no legal or governmental investigations, actions, suits or proceedings pending
against or, to the best of such counsel’s knowledge, threatened against or
affecting the Company or any of its subsidiaries or any of their respective
properties or to which the Company or any of its subsidiaries is or may be a
party or to which any property of the Company or its subsidiaries is or may be
the subject which could individually or in the aggregate reasonably be expected
to have a material adverse effect on the general affairs, business, prospects,
management, financial position, stockholders’ equity or results of operations of
the Company and its subsidiaries taken as a whole; to the best of such counsel’s
knowledge, no such proceedings are threatened or contemplated by governmental
authorities or threatened by others; and such counsel does not know of any
statutes, regulations, contracts or other documents required to be filed as an
exhibit to the Registration Statement or required to be described in the
Registration Statement or the Prospectus which are not filed or described as
required;
(iv) neither the Company nor any of its Significant Subsidiaries is, or
with the giving of notice or lapse of time or both would be, in violation of or
in default under, (x) its Certificate of Incorporation or By-Laws (or similar
constitutive documents) or (y) any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument known to such counsel to which the
Company or any of its Significant Subsidiaries is a party or by which it or any
of them or any of their respective properties is bound, except, in the case of
this clause (y), for violations and defaults which individually and in the
aggregate are not material to the Company and its subsidiaries taken as a whole;
the issue and sale of the Securities and the performance by the Company of its
obligations under the Securities, the Indenture and this Agreement and the
consummation by it of the transactions herein and therein contemplated will not
(A) conflict with or result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument known to such counsel to which the
Company or any of the Significant Subsidiaries is a party or by which the
Company or any of the Significant Subsidiaries is bound or to which any of the
property or assets of the Company or
18
any of the Significant Subsidiaries is subject, except for such conflicts,
breaches or defaults as would not have a material adverse effect on the Company
and its subsidiaries, taken as a whole, and (B) result in any violation of (x)
the provisions of the Certificate of Incorporation or the By-Laws of the Company
or (y) any applicable law or statute or any order, rule or regulation of any
court or governmental agency or body having jurisdiction over the Company, its
subsidiaries or any of their respective properties except, in the case of this
clause (y), for violations that would not have a material adverse effect on the
Company and its subsidiaries, taken as a whole;
(v) the statements in the Prospectus incorporated by reference from Item 3
of Part 1 of the Company’s Annual Report on Form 10-K for the year ended
December 31, 2007 and as such statements have been amended or supplemented by
the Company’s subsequent reports filed on Form 10-Q or Form 8-K, insofar as such
statements constitute a summary of the legal matters, documents or proceedings
referred to therein, fairly present in all material respects the information
called for with respect to such legal matters, documents or proceedings; and
(vi) such counsel is of the opinion that each document incorporated by
reference in the Registration Statement and the Prospectus as amended or
supplemented (other than the financial statements and related schedules therein,
as to which such counsel need express no opinion) complied as to form when filed
with the Commission in all material respects with the Exchange Act and the rules
and regulations of the Commission thereunder.
In rendering such opinions, White & Case LLP and Xx. Xxxxxxx may rely (A) as to matters
involving the application of laws other than the laws of the United States and the States of New
York and Delaware, to the extent such counsel deem proper and to the extent specified in such
opinion, if at all, upon an opinion or opinions (in form and substance reasonably satisfactory to
Underwriters’ counsel) of other counsel reasonably acceptable to the Underwriters’ counsel,
familiar with the applicable laws; (B) as to matters of fact, to the extent such counsel deem
proper, on certificates of responsible officers of the Company and certificates or other written
statements of officials of jurisdictions having custody of documents respecting the corporate
existence or good standing of the Company. The opinion of each such counsel shall state that the
opinion of any such other counsel upon which they relied is in form satisfactory to such counsel
and, in such counsel’s opinion, the Underwriters and they are justified in relying thereon. With
respect to the matters to be covered in subparagraph (viii) of paragraph (f) above White & Case LLP
may state their opinion and belief is based upon their participation in the preparation of the
Registration Statement, the Pricing Disclosure Package and the Prospectus and
19
any amendment or supplement thereto (other than the documents incorporated by reference
therein) and review and discussion of the contents thereof (including the documents incorporated by
reference therein) but is without independent check or verification except as specified.
The opinions of White & Case LLP and Xx. Xxxxxxx described above shall be rendered to the
Underwriters at the request of the Company and shall so state therein.
(h) on the date hereof and on the Closing Date, Ernst & Young LLP shall have
furnished to you letters, dated such date, in form and substance satisfactory to you,
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 in the Registration Statement, the Pricing Prospectus and
the Prospectus;
(i) you shall have received on and as of the Closing Date an opinion of Xxxxx Xxxx &
Xxxxxxxx, counsel to the Underwriters, with respect to the validity of the Indenture and
the Securities, the Registration Statement, the Prospectus and other related matters as
you may reasonably request, and such counsel shall have received such papers and
information as they may reasonably request to enable them to pass upon such matters; and
(j) on or prior to the Closing Date, the Company shall have furnished to the
Representatives such further certificates and documents as the Representatives shall
reasonably request.
8. The Company agrees to indemnify and hold harmless each Underwriter and each person, if any,
who controls any Underwriter within the meaning of either 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 the reasonable legal fees and other expenses incurred in
connection with any suit, action or proceeding or any claim asserted) caused by any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement,
the Basic Prospectus, any Preliminary Prospectus, the Pricing Disclosure Package, or the
Prospectus, or any amendment or supplement thereto, any Issuer Free Writing Prospectus or any
“issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities
Act, or caused by any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with information relating to
any Underwriter furnished to the Company in writing by such Underwriter through the Representatives
expressly for use therein.
20
Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Company, its directors, its officers who sign the Registration Statement and each person who
controls the Company within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act, to the same extent as the foregoing indemnity from the Company to each Underwriter,
but only with reference to information relating to such Underwriter furnished to the Company in
writing by such Underwriter through the Representatives expressly for use in the Registration
Statement, the Basic Prospectus, any Preliminary Prospectus, the Pricing Disclosure Package, or the
Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus.
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 indemnity may
be sought pursuant to either of the two preceding paragraphs, such person (the “Indemnified
Person”) shall promptly notify the person against whom such indemnity may be sought (the
“Indemnifying Person”) in writing, and the Indemnifying Person, upon request of the Indemnified
Person, shall retain counsel reasonably satisfactory to the Indemnified Person to represent the
Indemnified Person and any others the Indemnifying Person may designate in such proceeding and
shall pay the reasonable fees and expenses of such counsel related to such proceeding. 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 or (iii) 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 interests between them. It is understood that the Indemnifying Person shall
not, in connection with any proceeding or related proceeding 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 reimbursed as they are incurred.
Any such separate firm for the Underwriters and such control persons of Underwriters shall be
designated in writing by Xxxxxxx, Sachs & Co. and any such separate firm for the Company, its
directors, its officers who sign the Registration Statement and such control persons of the Company
or authorized representatives 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 judgment for the plaintiff, the
Indemnifying Person agrees to indemnify any Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at
any time an Indemnified Person shall have requested an Indemnifying Person to reimburse the
Indemnified Person for fees and expenses of counsel as contemplated by the third sentence of this
21
paragraph, the Indemnifying Person agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is entered into more than 30
days after receipt by such Indemnifying Person of the aforesaid request and (ii) such Indemnifying
Person shall not have reimbursed the Indemnified Person in accordance with such request prior to
the date of such settlement. No Indemnifying Person shall, without the prior 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 and indemnity could have been sought
hereunder by such Indemnified Person, unless such settlement (i) includes an unconditional release
of such Indemnified Person from all liability on claims that are the subject matter of such
proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a
failure to act, by or on behalf of any Indemnified Person.
If the indemnification provided for in the first and second paragraphs of this Section 8 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 on the one
hand and the Underwriters on the other hand from the offering of the Securities or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the Company 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
on the one hand and the Underwriters on the other shall be deemed to be in the same respective
proportions as the net proceeds from the offering of such Securities (before deducting expenses)
received by the Company and the total underwriting discounts and the commissions received by the
Underwriters bear to the aggregate public offering price of the Securities. The relative fault of
the Company 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 or by the Underwriters and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.
The Company and the Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 8 were determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation that does not take
account of the equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an Indemnified Person as a result of the losses, claims,
22
damages and liabilities referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses incurred by such
Indemnified Person in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 8, in no event shall an Underwriter be required to
contribute any amount in excess of the amount by which the total price at which the Securities
underwritten by it and distributed to the public were offered to the public exceeds the amount of
any damages that such Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
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 8 are several in proportion to the
respective principal amount of the Securities set forth opposite their names in Schedule II hereto,
and not joint.
The remedies provided for in this Section 8 are not exclusive and shall not limit any rights
or remedies which may otherwise be available to any indemnified party at law or in equity.
The indemnity and contribution agreements contained in this Section 8 and the representations
and warranties of the Company set forth in this Agreement shall remain operative and in full force
and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or
on behalf of any Underwriter or any person controlling any Underwriter or by or on behalf of the
Company, its officers or directors or any other person controlling the Company and (iii) acceptance
of and payment for any of the Securities.
9. Notwithstanding anything herein contained, this Agreement may be terminated in the absolute
discretion of the Representatives, by notice given 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, as the case may be, any of the New York Stock Exchange,
Alternext US LLC, formerly known as the American Stock Exchange or the NASDAQ Global Market, (ii)
trading of any securities of or guaranteed by the Company shall have been suspended on any exchange
or in any over-the-counter market, (iii) a general moratorium on commercial banking activities in
New York shall have been declared by either Federal or New York State authorities or a material
disruption in commercial banking or securities settlement or clearance services in the United
States, or (iv) there shall have occurred any outbreak or escalation of hostilities involving the
United States or the declaration by the United States of a national emergency or war or (v) the
occurrence of any other calamity or crisis or any change in financial or economic conditions in or
affecting the United States, if the effect of any such event specified in clause (iv) or (v) in the
judgment of the Representatives, is material and adverse and which, in the judgment of the
Representatives, makes it impracticable or inadvisable to proceed with the public
23
offering or the delivery of the Securities on the terms and in the manner contemplated in the
Prospectus.
10. If, on the Closing Date, any one or more of the Underwriters shall fail or refuse to
purchase Securities which it or they have agreed to purchase under this Agreement, and the
aggregate principal amount of Securities which such defaulting Underwriter or Underwriters agreed
but failed or refused to purchase is not more than one-tenth of the aggregate principal amount of
the Securities, the other Underwriters shall be obligated severally in the proportions that the
principal amount of Securities set forth opposite their respective names in Schedule II hereto
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 the Representatives may specify, to
purchase the Securities which such defaulting Underwriter or Underwriters agreed but failed or
refused to purchase on such date; provided that in no event shall the principal amount of
Securities that any Underwriter has agreed to purchase pursuant to Section 1 be increased pursuant
to this Section 10 by an amount in excess of one-ninth of such principal amount of Securities
without the written consent of such Underwriter. If, on the Closing Date, any Underwriter or
Underwriters shall fail or refuse to purchase Securities and the aggregate principal amount of
Securities with respect to which such default occurs is more than one-tenth of the aggregate
principal amount of Securities to be purchased, and arrangements satisfactory to you and the
Company for the purchase of such Securities are not made within 36 hours after such default, this
Agreement shall terminate without liability on the part of any non-defaulting Underwriter or the
Company. In any such case either you or the Company shall have the right to postpone the Closing
Date, but in no event for longer than seven days, in order that the required changes, if any, in
the Registration Statement and in the Prospectus or in any other documents or arrangements may be
effected. Any action taken under this paragraph shall not relieve any defaulting Underwriter from
liability in respect of any default of such Underwriter under this Agreement.
11. If this Agreement shall be terminated by the Underwriters, or any of them, because of any
failure or refusal on the part of the Company to comply with the terms or to fulfill any of the
conditions of this Agreement, or if for any reason the Company shall be unable to perform its
obligations under this Agreement or any condition of the Underwriters’ obligations cannot be
fulfilled, the Company agrees to reimburse the Underwriters or such Underwriters as have so
terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses
(including the fees and expenses of their counsel) reasonably incurred by such Underwriters in
connection with this Agreement or the offering of Securities.
12. This Agreement shall inure to the benefit of and be binding upon the Company, the
Underwriters, any controlling persons referred to herein and their respective successors and
assigns. Nothing expressed or mentioned in this Agreement is intended or shall be construed to
give any other person, firm or
24
corporation any legal or equitable right, remedy or claim under or in respect of this
Agreement or any provision herein contained. No purchaser of Securities from any Underwriter shall
be deemed to be a successor by reason merely of such purchase.
13. The Company acknowledges and agrees that (i) the purchase and sale of the Securities
pursuant to this Agreement is an arm’s-length commercial transaction between the Company, on the
one hand, and the several Underwriters, on the other, (ii) in connection therewith and with the
process leading to such transaction each Underwriter is acting solely as a principal and not the
agent or fiduciary of the Company, (iii) no Underwriter has assumed an advisory or fiduciary
responsibility in favor of the Company with respect to the offering contemplated hereby or the
process leading thereto (irrespective of whether such Underwriter has advised or is currently
advising the Company on other matters) or any other obligation to the Company except the
obligations expressly set forth in this Agreement and (iv) the Company has consulted its own legal
and financial advisors to the extent it deemed appropriate. The Company agrees that it will not
claim that the Underwriters, or any of them, has rendered advisory services of any nature or
respect, or owes a fiduciary or similar duty to the Company, in connection with such transaction or
the process leading thereto.
14. Any action by the Underwriters hereunder may be taken by the Representatives alone on
behalf of the Underwriters, and any such action taken by the Representatives shall be binding upon
the Underwriters. All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of telecommunication.
Notices to the Underwriters shall be given to Xxxxxxx, Xxxxx & Co. at 00 Xxxxx Xxxxxx, 00xx Xxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: Registration Department; Greenwich Capital Markets, Inc., 000
Xxxxxxxxx Xxxx, Xxxxxxxxx, Xxxxxxxxxxx 00000, Attention: Debt Capital Markets Syndicate; and X.X.
Xxxxxx Securities Inc., 000 Xxxx Xxxxxx, 0xx xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Investment Grade Syndicate Desk. Notices to the Company shall be given to it at 0000 Xxxxxx xx xxx
Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Corporate Secretary.
In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record
information that identifies their respective clients, including the Company, which information may
include the name and address of their respective clients, as well as other information that will
allow the Underwriters to properly identify their respective clients.
15. This Agreement may be signed in counterparts, each of which shall be an original and all
of which together shall constitute one and the same instrument.
25
16. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without giving effect to the conflicts of laws provisions thereof.
Very truly yours, XXXX CORPORATION |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Senior Vice President & Chief Financial Officer |
|||
26
Accepted: January 29, 2009 | ||||
XXXXXXX, SACHS & CO. | ||||
By:
|
/s/ Xxxxxxx, Xxxxx & Co. | |||
(Xxxxxxx, Sachs & Co.) | ||||
X.X. XXXXXX SECURITIES INC. | ||||
By:
|
/s/ Xxxxxxx X. Xxxxxxx | |||
Name: Xxxxxxx X. Xxxxxxx | ||||
Title: Vice President | ||||
GREENWICH CAPITAL MARKETS, INC. | ||||
By:
|
/s/ Xxxx X. Xxxxxxx | |||
Name: Xxxx X. Xxxxxxx | ||||
Title: Vice President | ||||
Acting severally on behalf of | ||||
themselves and the several Underwriters | ||||
listed in Schedule II hereto. |
27
SCHEDULE I
Issuer:
|
Xxxx Corporation | |
Representatives:
|
Xxxxxxx, Xxxxx & Co. | |
X.X. Xxxxxx Securities Inc. | ||
Greenwich Capital Markets, Inc. | ||
Title of Securities:
|
7.000% Notes due 2014 | |
8.125% Notes due 0000 | ||
Xxxxxxxxx principal amount:
|
$1,250,000,000 | |
Price to Public:
|
2014 Notes: 99.724% of the principal amount of the Securities, plus accrued interest, if any, from February 3, 2009. | |
2019 Notes: 99.677% of the principal amount of the Securities, plus accrued interest, if any, from February 3, 2009. | ||
Purchase Price to Underwriters:
|
2014 Notes: 99.124% of the principal amount of the Securities, plus accrued interest, if any, from February 3, 2009. | |
2019 Notes: 99.027% of the principal amount of the Securities, plus accrued interest, if any, from February 3, 2009. | ||
Indenture:
|
Indenture dated as of March 1, 2006 between the Company and The Bank of New York Mellon, as successor to JPMorgan Chase, as Trustee | |
Maturity:
|
2014 Notes: February 15, 2014 | |
2019 Notes: February 15, 2019 | ||
Trade Date:
|
January 29, 2009 | |
Interest Rate:
|
2014 Notes: 7.000% | |
2019 Notes: 8.125% | ||
Interest Payment Dates:
|
February 15 and August 15, beginning August 15, 2009 |
Optional Redemption Provisions:
|
The Securities may be redeemed in whole at any time or in part from time to time, at the Company’s option, at a redemption price equal to accrued and unpaid interest on the principal amount being redeemed to the redemption date plus the greater of: | |
• 100% of the principal amount of the Securities to be redeemed, and | ||
• the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed (not including any portion of such payments of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the adjusted treasury rate (as defined, together with related definitions, in the Company’s Pricing Prospectus dated January 29, 2009 to its Basic Prospectus dated March 1, 2006 relating to the Securities), plus 50 basis points. | ||
Sinking Fund Provisions:
|
No sinking fund provisions | |
Closing Date and Time of Delivery:
|
February 3, 2009 | |
Closing Location:
|
Xxxxx Xxxx & Xxxxxxxx |
SCHEDULE II
2014 Notes | 2019 Notes | |||||||
Principal | Principal | |||||||
Amount | Amount | |||||||
Xxxxxxx, Sachs & Co. |
$ | 58,336,000 | $ | 233,335,000 | ||||
X.X. Xxxxxx Securities Inc. |
58,335,000 | 233,334,000 | ||||||
Greenwich Capital Markets, Inc. |
58,335,000 | 233,334,000 | ||||||
BNP Paribas Securities Corp. |
7,084,000 | 28,332,000 | ||||||
Banc of America Securities LLC |
7,084,000 | 28,332,000 | ||||||
Citigroup Global Markets Inc. |
7,084,000 | 28,332,000 | ||||||
Mitsubishi UFJ Securities International plc |
7,084,000 | 28,332,000 | ||||||
Standard Charter Bank |
7,084,000 | 28,332,000 | ||||||
The Xxxxxxxx Capital Group, L.P. |
7,084,000 | 28,332,000 | ||||||
BBVA Securities, Inc. |
3,610,000 | 14,445,000 | ||||||
Calyon Securities (USA) Inc. |
3,610,000 | 14,445,000 | ||||||
Commerzbank Capital Bank Markets Corp. |
3,610,000 | 14,445,000 | ||||||
DnB NOR Markets, Inc. |
3,610,000 | 14,445,000 | ||||||
HSBC Securities (USA) Inc. |
3,610,000 | 14,445,000 | ||||||
ING Financial Markets LLC |
3,610,000 | 14,445,000 | ||||||
Mizuho Securities USA Inc. |
3,610,000 | 14,445,000 | ||||||
Scotia Capital (USA) Inc. |
3,610,000 | 14,445,000 | ||||||
Wachovia Capital Markets, LLC |
3,610,000 | 14,445,000 | ||||||
Total |
$ | 250,000,000 | $ | 1,000,000,000 | ||||
SCHEDULE III
(a) | Issuer Free Writing Prospectuses not included in the Pricing Disclosure Package: | |
(b) | Additional Documents Incorporated by Reference: |