UAL Corporation 19,000,000 Shares of Common Stock Underwriting Agreement
Exhibit 1.1
EXECUTION VERSION
UAL Corporation
19,000,000 Shares of Common Stock
October 1, 2009
▇.▇. ▇▇▇▇▇▇ Securities Inc.
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▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated
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▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, Sachs & Co.
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As Representatives of the
several Underwriters listed
in Schedule 1 hereto
several Underwriters listed
in Schedule 1 hereto
Ladies and Gentlemen:
UAL Corporation, a Delaware corporation (the “Company”), proposes to issue and sell to the
several Underwriters listed in Schedule 1 hereto (the “Underwriters”), for whom you are acting as
representatives (together, the “Representatives”), an aggregate of 19,000,000 shares of common
stock, par value $0.01 per share (the “Common Stock”), of the Company (the “Underwritten Shares”)
and, at the option of the Underwriters, up to an additional 2,850,000 shares of common stock, par
value $0.01 per share, of the Company (the “Option Shares”) if and to the extent that the
Underwriters shall have determined to exercise the option to purchase such shares of Common Stock
granted to the Underwriters in Section 2 hereof. The Underwritten Shares and the Option Shares are
herein referred to as the “Shares”.
The Company hereby confirms its agreement with the several Underwriters concerning the
purchase and sale of the Shares, 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”), an automatic
shelf registration statement on Form S-3 (File No. 333-155794), including a prospectus (the “Basic
Prospectus”), relating to the Shares. Such registration statement, as amended at the time of this
Agreement, 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”), is referred to herein as the “Registration Statement”. As used herein, the term
“Preliminary
Prospectus” means any preliminary form of the Prospectus (as hereinafter defined)
filed with the Commission pursuant to Rule 424 under the Securities Act and the term “Prospectus”
means the prospectus in the form 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 Shares. 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 Basic 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 Basic Prospectus, such
Preliminary Prospectus or the Prospectus, as the case may be, and any reference to “amend”,
“amendment” or “supplement” with respect to the Registration Statement, any Preliminary Prospectus
or the Prospectus shall be deemed to refer to and include any documents filed 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. Capitalized terms used but not defined herein shall have the meanings given to such terms
in the Registration Statement and the Prospectus.
At or prior to the Applicable Time (as defined below), the Company had prepared the following
information (collectively, the “Time of Sale Prospectus”): a Preliminary Prospectus dated
September 30, 2009, each “free-writing prospectus” (as defined pursuant to Rule 405 under the
Securities Act) listed on Annex A hereto and the final offering terms included in Annex B hereto.
“Applicable Time” means 7:00 p.m., New York City time, on October 1, 2009.
2. Purchase of the Shares by the Underwriters.
(a) The Company agrees to issue and sell the Underwritten Shares to the several Underwriters
as provided in this Agreement, and each Underwriter, on the basis of the representations,
warranties and agreements set forth herein and subject to the conditions set forth herein, agrees,
severally and not jointly, to purchase from the Company the respective number of Underwritten
Shares set forth opposite such Underwriter’s name in Schedule 1 hereto at a price per share (the
“Purchase Price”) of $6.9504.
In addition, the Company agrees to issue and sell the Option Shares to the several
Underwriters as provided in this Agreement, and the Underwriters, on the basis of the
representations, warranties and agreements set forth herein and subject to the conditions set forth
herein, shall have the option to purchase, severally and not jointly, from the Company the Option
Shares at the Purchase Price.
If any Option Shares are to be purchased, the number of Option Shares to be purchased by each
Underwriter shall be the number of Option Shares which bears the same ratio to the aggregate number
of Option Shares being purchased as the number of Underwritten Shares set forth opposite the name
of such Underwriter in Schedule 1 hereto (or such number increased as set forth in Section 10
hereof) bears to the aggregate number of Underwritten Shares being purchased from the Company by
the several Underwriters, subject, however, to such adjustments to eliminate any fractional Shares
as the Representatives in their sole discretion shall make.
The Underwriters may exercise the option to purchase the Option Shares at any time in whole,
or from time to time in part, on or before the thirtieth day following the date of this Agreement,
by written notice from the Representatives to the Company. Such notice shall set forth the
aggregate number of Option Shares as to which the option is being exercised and the date and time
when the Option Shares are to
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be delivered and paid for, which may be the same date and time as the
Closing Date (as hereinafter defined) but shall not be earlier than the Closing Date or later than
the tenth full business day (as hereinafter defined) after the date of such notice (unless such
time and date are postponed in accordance with the provisions of Section 10 hereof). Any such
notice shall be given at least two business days prior to the date and time of delivery specified
therein.
(b) The Company understands that the Underwriters intend to make a public offering of the
Shares as soon after the effectiveness of this Agreement as in the judgment of the Representatives
is advisable, and initially to offer the Shares on the terms set forth in the Prospectus. The
Company acknowledges and agrees that the Underwriters may offer and sell the Shares to or through
any affiliate of an Underwriter.
(c) Payment for the Shares shall be made by wire transfer in immediately available funds to
the account specified by the Company to the Representatives in the case of the Underwritten Shares,
at the offices of Milbank, Tweed, ▇▇▇▇▇▇ & ▇▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇ ▇▇▇▇▇ at 10:00 A.M., New York City time, on October 7, 2009, or at such other time or place on the same or such
other date, not later than the fifth business day thereafter, as the Representatives and the
Company may agree upon in writing or, in the case of the Option Shares, on the date and at the time
and place specified by the Representatives in the written notice of the Underwriters’ election to
purchase such Option Shares. The time and date of such payment for the Underwritten Shares is
referred to herein as the “Closing Date”, and the time and date for such payment for the Option
Shares, if other than the Closing Date, is herein referred to as the “Additional Closing Date”.
Payment for the Shares to be purchased on the Closing Date or the Additional Closing Date, as
the case may be, shall be made against delivery to the nominee of The Depository Trust Company
(“DTC”), for the respective accounts of the several Underwriters of the Shares to be purchased on
such date of one or more global certificates representing the Shares, with any transfer taxes
payable in connection with the sale of such Shares duly paid by the Company.
(d) The Company acknowledges and agrees that the Underwriters are acting solely in the
capacity of an arm’s length contractual counterparty to the Company with respect to the offering of
the Shares 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 or any other person.
Additionally, neither the Representatives nor any other Underwriter is advising the Company or any
other person as to any legal, tax, investment, accounting or regulatory matters in any
jurisdiction. The Company 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
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.
3. Representations and Warranties of the Company. The Company represents and warrants
to each Underwriter that:
(a) Registration Statement, Time of Sale Prospectus and Prospectus. The Company meets the
requirements for use of Form S-3 under the Securities Act; the Registration Statement has become
effective; and, on the original effective date of the Registration Statement, the Registration
Statement complied in all material respects with the requirements of the Securities Act; no stop
order suspending the effectiveness of the Registration Statement is in effect, and no proceedings
for such purpose are pending before or, to the knowledge of the Company, threatened by the
Commission. The Registration Statement
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is an “automatic shelf registration statement” (as defined in Rule 405 under the Securities Act), the Company is a “well-known seasoned issuer” (as defined in
Rule 405 under the Securities Act) and the Company is eligible to use the Registration Statement as
an automatic shelf registration statement, and the Company has not received notice that the
Commission objects to the use of the Registration Statement as an automatic shelf registration
statement. The Registration Statement does not, as of the date hereof, include any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading. As of its date and on the Closing Date or
the Additional Closing Date, as the case may be, the Prospectus, as amended and supplemented, if
applicable, does not and will not include an untrue statement of a material fact and does not and
will not omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The Registration Statement,
as of the date hereof, complies and the Prospectus complies, and as amended or supplemented, if
applicable, will comply in all material respects with the Securities Act and the applicable rules
and regulations of the Commission thereunder. The Time of Sale Prospectus did not, as of the
Applicable Time, and as then amended or supplemented, if applicable, will not as of the Closing
Date or the Additional Closing Date, 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. Any information included in any “issuer
free writing prospectus” (as defined in Rule 433(h) under the Securities Act) (each, an “Issuer
Free Writing Prospectus”) used in connection with the offering of the Shares does not conflict with
the information contained in the Registration Statement, including any prospectus or prospectus
supplement that is part of the Registration Statement (including pursuant to Rule 430B under the
Securities Act) and not superseded or modified. The preceding sentences do not apply to statements
in or omissions from the Registration Statement, the Time of Sale Prospectus or the Prospectus in
reliance upon and in conformity with any written information furnished to the Company by any
Underwriter expressly for use therein.
(b) No Material Adverse Change. Since the date of the most recent audited financial
statements of the Company incorporated by reference in each of the Registration Statement, the Time
of Sale Prospectus and the Prospectus, except as otherwise stated or incorporated by reference
therein or contemplated thereby, there has not occurred any material adverse change, or any
development involving a prospective material adverse change, in the condition (financial or
otherwise), business, properties or results of operations of the Company and its consolidated
subsidiaries, taken as a whole.
(c) Incorporated Documents. The documents incorporated by reference in the Registration
Statement, the Time of Sale Prospectus or the Prospectus, at the time they were filed with the
Commission, complied or will comply, as the case may be, in all material respects with the
requirements of the Exchange Act.
(d) Free Writing Prospectus. The Company is not an “ineligible issuer” pursuant to
Rule 405 under the Securities Act. Any free writing prospectus that the Company is required to
file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with the
Commission in accordance with the requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder. Each free writing prospectus that the Company has filed
in connection with the offering of the Shares, or is required to file in connection with the
offering of the Shares, pursuant to Rule 433(d) under the Securities Act complies or will comply in
all material respects with the requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder. Except for the free writing prospectuses, if any,
identified in Annex A hereto, the Company has not prepared, used or referred to, any free writing
prospectus in connection with the offering of the Shares.
(e) Organization
and Good Standing. The Company has been duly incorporated and is validly
existing as a corporation in good standing under the laws of the State of Delaware, with corporate
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power and authority to own, lease and operate its property and to conduct its business as described
in the Registration Statement, the Time of Sale Prospectus and the Prospectus; and the Company is
duly qualified to do business as a foreign corporation in good standing in all other jurisdictions
in which its ownership or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified would not have a material adverse effect
on the condition (financial or otherwise), business, properties or results of operations of the
Company and its consolidated subsidiaries, taken as a whole (a “United Material Adverse Effect”).
(f) Subsidiaries. Each of the Company’s subsidiaries listed on Schedule 2 hereto (together,
the “Subsidiaries”) has been duly incorporated and is an existing corporation in good standing
under the laws of the jurisdiction of its incorporation, with corporate power and authority to own,
lease and operate its properties and to conduct its business as described in the Registration
Statement, the Time of Sale Prospectus and the Prospectus; and each Subsidiary is duly qualified to
do business as a foreign corporation in good standing in all other jurisdictions in which its
ownership or lease of property or the conduct of its business requires such qualification, except
where the failure to be so qualified would not have a United Material Adverse Effect; all of the
issued and outstanding capital stock of each Subsidiary has been duly authorized and validly issued
and is fully paid and nonassessable; and, except as described in the Registration Statement, the
Time of Sale Prospectus and the Prospectus, each Subsidiary’s capital stock is owned by the
Company, directly or through subsidiaries, and is owned free from liens, encumbrances and defects.
(g) No Default or Conflict. The Company is not in default in the due performance or
observance of any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, loan agreement, note, lease or other instrument to which it is a party or by
which it may be bound or to which any of its properties may be subject, except for any such
defaults that would not have a United Material Adverse Effect. The execution, delivery and
performance of this Agreement, the consummation by the Company of the transactions contemplated
herein and the issuance and delivery of the Shares have been duly authorized by all necessary
corporate action of the Company and will not result in (i) any breach of any of the terms,
conditions or provisions of, or constitute a default under, or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of the Company pursuant to any
indenture, loan agreement, contract, mortgage, note, lease or other instrument to which the Company
is a party or by which the Company may be bound or to which any of the property or assets of the
Company is subject, (ii) any violation of the provisions of the charter or by-laws of the Company
or (iii) any violation of any statute, any rule, regulation, judgment, or order or decree of any
government, governmental agency or body or court, domestic or foreign, having jurisdiction over the Company, except, in the case of clause (i)
and (iii), for any such breach, default, lien, charge, encumbrance or violation as would not have a
United Material Adverse Effect.
(h) No Consents Required. No consent, approval, authorization, or order of, or filing with,
any governmental agency or body or any court is required for the valid authorization, execution and
delivery by the Company of this Agreement, the issuance and sale of the Shares and the consummation
of the transactions contemplated herein, except such as may be required under the Securities Act,
the securities or “blue sky” or similar laws of the various states and of foreign jurisdictions or
rules and regulations of the Financial Industry Regulatory Authority, Inc. (“FINRA”).
(i) This Agreement. This Agreement has been executed and delivered by the Company and
conforms in all material respects to the descriptions thereof contained in the Time of Sale
Prospectus.
(j) The Shares. The Shares have been duly authorized and, when issued and delivered in
accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable
and
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will conform to the descriptions thereof contained in the Time of Sale Prospectus; and the
issuance of the Shares is not subject to any preemptive or similar rights.
(k) Capitalization. The Company has an authorized capitalization as set forth in the
Registration Statement, the Time of Sale Prospectus and the Prospectus (other than for subsequent
issuances, including restricted stock grants, if any, pursuant to employee benefit plans described
in the Registration Statement, the Time of Sale Prospectus and the Prospectus or upon the exercise
of outstanding options or warrants or vesting of restricted stock units described in the
Registration Statement, the Time of Sale Prospectus and the Prospectus or any issuance of equity
securities to directors under any current or future directors’ plans); all the outstanding shares
of capital stock of the Company have been duly and validly authorized and issued and are fully paid
and non-assessable; none of the outstanding securities of the Company were issued in violation of
the percentage limitations (without the benefit of any transfer in trust provisions) contained in
the Company’s organizational documents, including, without limitation, the provisions of Part VI,
Section 2, Section 3 and Section 5 of the Company’s restated certificate dated February 1, 2006, as
amended; none of the outstanding shares of capital stock of the Company have been issued in
violation of any preemptive or similar rights of any security holder or is subject to any
preemptive or similar rights; except as described in or expressly contemplated by the Time of Sale
Prospectus and the Prospectus, there are no outstanding rights (including, without limitation,
preemptive rights), warrants or options to acquire, or instruments convertible into or exchangeable
for, any shares of capital stock or other equity interest in the Company or any of its
subsidiaries, or any contract, commitment, agreement, understanding or arrangement of any kind
relating to the issuance of any capital stock of the Company or any such subsidiary, any such
convertible or exchangeable securities or any such rights, warrants or options; the capital stock
of the Company conforms in all material respects to the description thereof contained in the
Registration Statement, the Time of Sale Prospectus and the Prospectus.
(l) Financial Statements. The consolidated financial statements of the Company incorporated
by reference in the Registration Statement, the Time of Sale Prospectus and the Prospectus,
together with the related notes thereto, present fairly in all material respects the financial
position of the Company and its consolidated subsidiaries at the dates indicated and the
consolidated results of operations and cash flows of the Company and its consolidated subsidiaries
for the periods specified. Such financial statements have been prepared in conformity with
generally accepted accounting principles applied on a consistent basis throughout the periods
involved, except as otherwise stated therein and except that unaudited financial statements do not
have all required footnotes.
(m) Title to Real and Personal Property. Except as disclosed in the Registration Statement,
the Time of Sale Prospectus and the Prospectus, each of the Company and its Subsidiaries has good
and marketable title to all real and personal properties and assets owned by them, in each case
free from liens, encumbrances and defects except where the failure to have such title would not
have a United Material Adverse Effect; and except as disclosed in the Registration Statement, the
Time of Sale Prospectus and the Prospectus, each of the Company and its Subsidiaries holds any
leased real or personal property under valid and enforceable leases with no exceptions that would
reasonably be expected to have a United Material Adverse Effect.
(n) Legal Proceedings. Except as disclosed in the Registration Statement, the Time of Sale
Prospectus and the Prospectus, there is no action, suit or proceeding before or by any governmental
agency or body or court, domestic or foreign, now pending or, to the knowledge of the Company,
threatened against the Company, any of its Subsidiaries, or any of their respective properties that
individually (or in the aggregate in the case of any class of related lawsuits), would reasonably
be expected to have a United Material Adverse Effect or that would reasonably be expected to
materially and adversely affect the consummation of the transactions contemplated by this
Agreement.
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(o) No Labor Dispute. No labor dispute with the employees of the Company or any subsidiary
exists or, to the knowledge of the Company, is imminent that would reasonably be expected to have a
United Material Adverse Effect.
(p) Licenses and Permits. Except as disclosed in the Registration Statement, the Time of Sale
Prospectus and the Prospectus, each of the Company and the Subsidiaries has all licenses, permits,
orders, consents, authorizations, approvals and certificates of and from, and has made all
declarations and filings with, all federal, state, local and other governmental authorities, all
self-regulatory organizations and all courts and other tribunals, necessary to own, lease, license
and use its properties and assets and to conduct its business in the manner described in the
Registration Statement, the Time of Sale Prospectus and the Prospectus, except to the extent that
the failure to so obtain, declare or file would not have a United Material Adverse Effect.
(q) Compliance with Environmental Laws. Except as disclosed in the Registration Statement,
the Time of Sale Prospectus and the Prospectus, neither the Company nor any of its Subsidiaries is
in violation of any statute, rule, regulation, decision or order of any governmental agency or body
or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic
substances (collectively, “environmental laws”), owns or operates any real property
contaminated with any substance that imposes any liability under any environmental laws, or is
subject to any claim relating to any environmental laws, which violation, contamination, liability
or claim individually or in the aggregate is reasonably expected to have a United Material Adverse
Effect. The Company is not aware of any pending investigation that would reasonably be expected to
lead to such a claim that would have a United Material Adverse Effect.
(r) Independent Accountants. The accountants that examined and issued an auditors’ report
with respect to the consolidated financial statements of the Company, and the financial statement
schedules of the Company, if any, included or incorporated by reference in the Registration
Statement, are independent public accountants within the meaning of the Securities Act with respect
to the Company.
(s) Investment Company Act. The Company is not an “investment company”, or an entity
“controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940,
as amended (the “Investment Company Act”), in each case required to register under the Investment
Company Act; and after giving effect to the offering and sale of the Shares and the application of
the proceeds thereof as described in the Prospectus, the Company will not be an “investment
company”, or an entity “controlled” by an “investment company”, as defined in the Investment
Company Act, in each case required to register under the Investment Company Act.
(t) Disclosure Controls. The Company and its subsidiaries maintain an effective system of
“disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that
complies with the requirements of the Exchange Act and that has been designed to ensure that
information required to be disclosed by the Company in reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the Commission’s rules and forms, including controls and procedures designed to ensure that such
information is accumulated and communicated to the Company’s management as appropriate to allow
timely decisions regarding required disclosure. The Company and its subsidiaries have carried out
evaluations of the effectiveness of their disclosure controls and procedures as required by Rule
13a-15 of the Exchange Act.
(u) Accounting Control. Except as disclosed in the Registration Statement, the Time of Sale
Prospectus and the Prospectus, the Company (A) makes and keeps books, records and accounts, which,
in reasonable detail, accurately and fairly reflect the transactions and dispositions of the material assets
of the Company and its consolidated subsidiaries and (B) maintains a system of internal accounting
controls
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sufficient to provide reasonable assurances that (1) transactions are executed in
accordance with management’s general or specific authorization; (2) transactions are recorded as
necessary: (x) to permit preparation of financial statements in conformity with generally accepted
accounting principles or any other criteria applicable to such statements and (y) to maintain
accountability for assets; (3) access to material assets is permitted only in accordance with
management’s general or specific authorization; and (4) the recorded accountability for material
assets is compared with the existing material assets at reasonable intervals and appropriate action
is taken with respect to any differences.
(v) Listing. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act,
and the Company has taken no action designed to, or likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act or delisting the Common Stock from the
Nasdaq Global Select Market (the “Nasdaq Market”) nor has the Company received any notification
that the Commission or the Nasdaq Market is contemplating terminating such registration or listing.
The outstanding shares of the Common Stock have been approved for listing and the Shares have been
approved for listing, subject only to official notice of issuance, on the Nasdaq Market.
(w) No Stabilization or Manipulation. Neither the Company nor any of its directors, officers
or controlling persons has taken, directly or indirectly, any action designed to or that might
reasonably be expected to cause or result in stabilization or manipulation of the price of the
Common Stock to facilitate the sale or resale of the Shares or which otherwise is in contravention
of applicable law.
(x) Actively Traded Security. The Common Stock is an “actively-traded security” excepted from
the requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such
rule.
(y) No Broker. Neither the Company nor any of its subsidiaries is a party to any contract,
agreement or understanding with any person (other than this Agreement) that would give rise to a
valid claim against the Company or any of its subsidiaries for a brokerage commission, finder’s fee
or like payment in connection with the offering and sale of the Shares.
The parties agree that any certificate signed by a duly authorized officer of the Company and
delivered to an Underwriter, or to counsel for the Underwriters, on the Closing Date or the
Additional Closing Date, as the case may be, and in connection with this Agreement or the offering
of the Shares, shall be deemed a representation and warranty by the Company to the Underwriters as
to the matters covered thereby.
4. Further Agreements of the Company. The Company covenants and agrees with each
Underwriter that:
(a) Required Filings. The Company will file the final 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
Sections 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 is required in connection with
the offering or sale of the Shares; 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
succeeding the date of this Agreement in such quantities as the Representatives may
reasonably request. The Company will pay the
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registration fee for this offering within the time period required by Rule 456(b)(1) under the Securities Act and in any event prior to
the Closing Date.
(b) Delivery of Copies. The Company will deliver, without charge, during the
Prospectus Delivery Period (as defined below), as many copies of the Prospectus (including
all amendments and supplements thereto) 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 Shares as in the opinion of counsel for the
Underwriters a prospectus relating to the Shares 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 Shares by any Underwriter or dealer.
(c) Amendments or Supplements, Issuer Free Writing Prospectuses. Before preparing,
using, authorizing, approving, 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 furnish to the Representatives and counsel for the Underwriters
a copy of the proposed Issuer Free Writing Prospectus, amendment or supplement for review
and will not prepare, use, authorize, approve, refer to or file any such Issuer Free Writing
Prospectus or file any such proposed amendment or supplement to which the Representatives
reasonably object.
(d) Notice to the Representatives. The Company will advise the Representatives
promptly, and confirm such advice in writing, (i) when the Registration Statement has become
effective; (ii) when any amendment to the Registration Statement has been filed or becomes
effective; (iii) when any supplement to the Prospectus or any Issuer Free Writing Prospectus
or any amendment to the Prospectus has been filed; (iv) of any request by the Commission 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 other request by the Commission for any additional information; (v) 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, any of the Time of Sale
Prospectus or the Prospectus or 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 Time of Sale
Prospectus 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 Time of Sale Prospectus 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 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
(viii) of the receipt by the Company of any notice with respect to any suspension of the
qualification of the Shares for offer and sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and the Company will use its commercially
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 Time of Sale Prospectus or the Prospectus or suspending any such qualification of
the Shares and, if any such order is issued, will 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
9
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 Time of Sale 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
Time of Sale Prospectus is delivered to a purchaser, not misleading or (ii) it is necessary
to amend or supplement the Time of Sale Prospectus to comply with law, the Company will
immediately 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 Time of Sale Prospectus as may be necessary so that
the statements in the Time of Sale Prospectus as so amended or supplemented will not, in the
light of the circumstances existing when the Time of Sale Prospectus is delivered to a
purchaser, be misleading or so that the Time of Sale Prospectus will comply with law.
(f) Blue Sky Compliance. The Company will qualify the Shares for offer and sale 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 Shares; provided that the Company 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 any general
consent to service of process in any such jurisdiction or (iii) subject itself 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.
(h) Clear Market. For a period (the “Lock-Up Period”) of 60 days after the date of the
Prospectus, the Company will not (i) offer, pledge, announce the intention to sell, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract
to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of,
directly or indirectly, or file with the Commission a registration statement under the
Securities Act relating to, any shares of the Common Stock or any securities convertible
into or exercisable or exchangeable for the Common Stock (collectively, the “Lock-Up
Securities”), or publicly disclose the intention to make any offer, sale, pledge,
disposition or filing, or (ii) enter into any swap or other agreement that transfers, in
whole or in part, any of the economic consequences of ownership of the Lock-Up Securities,
whether any such transaction described in clause (i) or (ii) above is to be settled by
delivery of Lock-Up Securities, in cash or otherwise, without the prior written consent of
▇.▇. ▇▇▇▇▇▇ Securities Inc., other than (A) the Shares to be sold hereunder, (B)
10
the 6.0% Convertible Senior Notes due 2029 of the Company to be sold by the Company concurrently
herewith pursuant to an underwriting agreement, dated the date hereof, between the Company
and ▇.▇. ▇▇▇▇▇▇ Securities Inc., ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated and ▇▇▇▇▇▇▇, Sachs & Co.,
as representatives of the several underwriters named therein, (C) the grant of options,
awards of restricted stock and restricted stock units or the issuances of Lock-Up Securities
and similar grants and awards to officers, employees or directors by the Company pursuant to
any of the Company’s employee plans existing on the date of this Agreement, including, but
not limited to, any employee stock option plan, dividend reinvestment and stock purchase
plan or 401(k) plan (and, including without limitation, issuances of Lock-Up Securities as
matching awards under the Company’s 401(k) plans), (D) the issuance of Lock-Up Securities
upon the exercise of options or vesting of restricted stock units outstanding as of the date
hereof or (E) the filing, and effectiveness, under the Securities Act of a registration
statement on Form S-8 registering the offer, issuance and sale of securities under the
Company’s currently existing stock option or long-term incentive plans.
(i) Use of Proceeds. The Company will apply the net proceeds from the sale of the
Shares as described in the Registration Statement, the Time of Sale Prospectus and the
Prospectus under the heading “Use of Proceeds”.
(j) No Stabilization. The Company 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 the Common Stock or which would otherwise be in contravention
of applicable law.
(k) Reports. So long as the Shares are outstanding, the Company will furnish to the
Representatives, as soon as they are available, copies of all reports or other
communications (financial or other) furnished to holders of the Shares, and copies of any reports and financial
statements furnished to or filed with the Commission or any national securities exchange or
automatic quotation system; provided the Company will be deemed to have furnished such
reports and financial statements to the Representatives to the extent they are filed with
the Commission via the ▇▇▇▇▇ and/or IDEA filing system (or successor system).
(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
Annex A or prepared pursuant to 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
11
(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 Shares unless such terms have
previously been included in a free writing prospectus filed with the Commission.
(c) It is not subject to any pending proceeding under Section 8A of the Securities Act
with respect to the offering (and will promptly notify the Company if any such proceeding
against it is initiated during the Prospectus Delivery Period).
6. Conditions of the Underwriters’ Obligations. The obligation of each Underwriter to
purchase the Underwritten Shares on the Closing Date or the Option Shares on the Additional Closing
Date, as the case may be, as provided herein is subject to the performance by the Company 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 Rule 401(g)(2) or 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
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)
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
contained herein shall be true and correct in all material respects (except to the extent
already qualified by materiality, in which case such representations and warranties shall be
true and correct) on the date hereof and on and as of the Closing Date or the Additional
Closing Date, as the case may be; 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 or the Additional Closing Date, as the case may be.
(c) No Downgrade. Subsequent to the execution and delivery of this Agreement, (i) no
downgrading shall have occurred in the rating accorded any securities issued or guaranteed
by the Company or any of its subsidiaries by Standard & Poor’s Ratings Services (“S&P”),
▇▇▇▇▇’▇ Investor Service, Inc. (“Moody’s”) or Fitch Ratings (“Fitch”) and (ii) none of S&P,
▇▇▇▇▇’▇ or Fitch shall have publicly announced that it has under surveillance or review, or
has changed its outlook with respect to, its rating of any securities issued or guaranteed
by the Company or any of its subsidiaries (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(b) hereof shall have occurred or shall exist, which event or condition is not described in
the Time of Sale Prospectus (excluding any amendment or supplement thereto) and the
Prospectus (excluding any amendment or supplement thereto) and the effect of which in the
reasonable judgment of the Representatives makes it impracticable or inadvisable to proceed
with the offering, sale or delivery of the Shares on the Closing Date or the Additional
Closing Date, as the case may be, on the terms and in the manner contemplated by this
Agreement, the Time of Sale Prospectus and the Prospectus.
12
(e) Officers’ Certificate. The Representatives shall have received on and as of the
Closing Date or the Additional Closing Date, as the case may be, a certificate of the
Executive Vice President and Chief Financial Officer, or Vice President and Treasurer or the
Senior Vice President, General Counsel and Secretary of the Company (i) confirming that such
officers have carefully reviewed the Registration Statement, the Time of Sale Prospectus and
the Prospectus and, to the knowledge of such officers, the representations set forth in
Section 3(a) 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 in all material respects at or prior to the Closing Date or the
Additional Closing Date, as the case may be, and (iii) to the effect set forth in paragraph
(d) above.
(f) Comfort Letters. On the date of this Agreement and on the Closing Date or the
Additional Closing Date, as the case may be, 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 Time of Sale Prospectus and the Prospectus;
provided, that the letter delivered on the Closing Date or the Additional Closing
Date, as the case may be, shall use a “cut-off” date no more than three business days prior
to such Closing Date or such Additional Closing Date, as the case may be.
(g) Opinion of In-House Counsel for the Company. The General Counsel or Assistant
General Counsel of the Company shall have furnished to the Representatives his or her
written opinion, dated the Closing Date or the Additional Closing Date, as the case may be,
and addressed to the Underwriters, substantially in the form attached hereto as Exhibit B.
(h) Opinion and 10b-5 Statement of Counsel for the Company. Cravath, Swaine & ▇▇▇▇▇
LLP, special counsel for the Company, shall have furnished to the Representatives, at the
request of the Company, its written opinion and 10b-5 statement, dated the Closing Date or
the Additional Closing Date, as the case may be, and addressed to the Underwriters,
substantially in the form attached hereto as Exhibit C.
(i) Opinion and 10b-5 Statement of Counsel for the Underwriters. The Representatives
shall have received on and as of the Closing Date or the Additional Closing Date, as the
case may be, an opinion and 10b-5 statement of Milbank, Tweed, ▇▇▇▇▇▇ & ▇▇▇▇▇▇ 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.
(j) 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 or the
Additional Closing Date, as the case may be, prevent the issuance or sale of the Shares; and
no injunction or order of any federal, state or foreign court shall have been issued that
would, as of the Closing Date or the Additional Closing Date, as the case may be, prevent
the issuance or sale of the Shares.
13
(k) Exchange Listing. The Shares to be delivered on the Closing Date or Additional
Closing Date, as the case may be, shall have been approved for listing on the Nasdaq Market,
subject to official notice of issuance.
(l) Lock-up Agreements. The “lock-up” agreements, each substantially in the form of
Exhibit A hereto, between you and certain shareholders, officers and directors of the
Company relating to sales and certain other dispositions of the Lock-Up Securities,
delivered to you on or before the date hereof, shall be full force and effect on the Closing
Date or Additional Closing Date, as the case may be.
(m) Additional Documents. On or prior to the Closing Date or the Additional Closing
Date, as the case may be, the Company shall have furnished to the Representatives such
further certificates and documents as the Representatives may reasonably request.
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 agrees 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 out-of-pocket legal fees and other expenses incurred in connection with any
suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or
several, that 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 or (ii) 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 Time of Sale Prospectus (including any Time of Sale
Prospectus 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
information relating to any Underwriter furnished to the Company in writing by such Underwriter
through the Representatives as set forth on Schedule 3 attached hereto (the “Underwriter
Information”).
(b) Indemnification of the Company. Each Underwriter agrees, severally and not jointly, to
indemnify and hold harmless the Company, its directors, its officers who signed the Registration
Statement and each person, if any, who controls the Company 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 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 the Underwriter Information provided by such
Underwriter through the Representatives.
(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
14
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 it from any liability that it may have under this Section 7
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 it from any liability that it may have to an Indemnified
Person otherwise than under this Section 7. 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 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; 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 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 the Representatives and any such separate firm for the Company,
its directors, its officers who signed the Registration Statement and any control persons of the
Company 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 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 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, on the one
hand, and the Underwriters on the other, from the offering of the Shares 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, 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 (before deducting expenses) received by the Company from the sale of the Shares and
15
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 Shares. 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.
(e) Limitation on Liability. The Company 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 incurred by such Indemnified Person in
connection with any such action or claim. 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 Shares 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
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. 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 or, in the case of the Option Shares, prior to the Additional 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 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 any 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 Shares on the Closing Date or the Additional Closing Date, as the case may be,
on the terms and in the manner contemplated by this Agreement, the Time of Sale Prospectus and the
Prospectus.
10. Defaulting Underwriter.
(a) If, on the Closing Date or the Additional Closing Date, as the case may be, any
Underwriter defaults on its obligation to purchase the Shares that it has agreed to purchase
hereunder on
16
such date, the non-defaulting Underwriters may in their discretion arrange for the purchase of
such Shares by other persons satisfactory to the Company on the terms contained in this Agreement.
If, within 36 hours after any such default by any Underwriter, the non-defaulting Underwriters do
not arrange for the purchase of such Shares, then the Company shall be entitled to a further period
of 36 hours within which to procure other persons satisfactory to the non-defaulting Underwriters
to purchase such Shares on such terms. If other persons become obligated or agree to purchase the
Shares of a defaulting Underwriter, either the non-defaulting Underwriters or the Company may
postpone the Closing Date or the Additional Closing Date, as the case may be, for up to five full
business days in order to effect any changes that in the opinion of counsel for the Company or
counsel for the Underwriters may be necessary in the Registration Statement and the Prospectus or
in any other document or arrangement, and the Company agrees to promptly prepare any amendment or
supplement to the Registration Statement and the Prospectus that effects any such changes. As used
in this Agreement, the term “Underwriter” includes, for all purposes of this Agreement unless the
context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this
Section 10, purchases the Shares that a defaulting Underwriter agreed but failed to purchase.
(b) If, after giving effect to any arrangements for the purchase of the Shares of a defaulting
Underwriter or Underwriters by the non-defaulting Underwriters and the Company as provided in
paragraph (a) above, the aggregate number of Shares that remain unpurchased on the Closing Date or
the Additional Closing Date, as the case may be, does not exceed one-eleventh of the aggregate
number of Shares to be purchased on such date, then the Company shall have the right to require
each non-defaulting Underwriter to purchase the number of Shares that such Underwriter agreed to
purchase hereunder on such date plus such Underwriter’s pro rata share (based on the number of
Shares that such Underwriter agreed to purchase on such date) of the Shares of such defaulting
Underwriter or Underwriters for which such arrangements have not been made.
(c) If, after giving effect to any arrangements for the purchase of the Shares of a defaulting
Underwriter or Underwriters by the non-defaulting Underwriters and the Company as provided in
paragraph (a) above, the aggregate number of Shares that remain unpurchased on the Closing Date or
the Additional Closing Date, as the case may be, exceeds one-eleventh of the aggregate amount of
the Shares to be purchased on such date, or if the Company shall not exercise the right described
in paragraph (b) above, then this Agreement or, with respect to any Additional Closing Date, the
obligation of the Underwriters to purchase Shares on the Additional Closing Date shall terminate
without liability on the part of the non-defaulting Underwriters. Any termination of this
Agreement pursuant to this Section 10 shall be without liability on the part of the Company, except
that the Company 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.
(d) Nothing contained herein shall relieve a defaulting Underwriter of any liability it may
have to the Company or any non-defaulting Underwriter for damages caused by its default.
11. Payment of Expenses.
(a) Whether or not the transactions contemplated by this Agreement are consummated or this
Agreement is terminated, the Company will pay or cause to be paid all costs and expenses incident
to the performance of its obligations hereunder, including without limitation, (i) the costs
incident to the authorization, issuance, sale, preparation and delivery of the Shares and any taxes
payable in that connection; (ii) the costs incident to the preparation, printing and filing under
the Securities Act of the Registration Statement, the Preliminary Prospectus, any Issuer Free
Writing Prospectus, any Time of Sale Prospectus and the Prospectus (including all amendments and
supplements thereto) and the distribution thereof; (iii) the costs of reproducing and distributing
this Agreement; (iv) the fees and expenses of the Company’s
17
counsel and independent accountants; (v) the fees and expenses incurred in connection with the
registration or qualification of the Shares under the state or foreign securities or blue sky laws
of such jurisdictions as the Representatives may designate and the preparation, printing and
distribution of a “blue sky” memorandum (including the related reasonable fees and expenses of
counsel for the Underwriters); (vi) the cost of preparing stock certificates; (vii) the costs and
charges of any transfer agent and any registrar; (viii) the approval of the Shares for book-entry
transfer by DTC; (ix) all expenses and application fees incurred in connection with any filing
with, and clearance of the offering by, FINRA; (x) all expenses incurred by the Company in
connection with any “road show” presentation to potential investors; (xi) all expenses and
application fees related to the listing of the Shares on the Nasdaq Market; provided that each
Underwriter shall be responsible for any transfer taxes on resale of the Shares by it, any costs
and expenses associated with the sale and marketing of the Shares and fees of its counsel other
than specifically provided above.
(b) If (i) this Agreement is terminated pursuant to Section 9, (ii) the Company for any reason
fails to tender the Shares for delivery to the Underwriters or (iii) the Underwriters decline to
purchase the Shares because the conditions set forth in Section 6 of this Agreement have not been
satisfied by the Company, the Company agrees to reimburse the Underwriters for all 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 Shares from any Underwriter shall be deemed to be a successor merely by reason of such
purchase.
13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company and the Underwriters contained in this Agreement or made
by or on behalf of the Company or the Underwriters pursuant to this Agreement or any certificate
delivered pursuant hereto shall survive the delivery of and payment for the Shares 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 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.
(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 ▇.▇.
▇▇▇▇▇▇ Securities Inc., ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ (fax: (▇▇▇) ▇▇▇-▇▇▇▇);
Attention Equity Syndicate Desk; c/o Morgan ▇▇▇▇▇▇▇ & Co. Incorporated, ▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇,
▇▇▇ ▇▇▇▇
18
10036 (fax: (▇▇▇)-▇▇▇-▇▇▇▇); Attention ▇▇▇▇ ▇▇▇▇▇; and ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co., ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ (fax: (▇▇▇) ▇▇▇-▇▇▇▇); Attention Registration Department.
Notices to the Company shall be given to it at the offices of the Company at ▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇,
▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (fax: (▇▇▇) ▇▇▇-▇▇▇▇); Attention: Vice President and
Treasurer, with a copy to Cravath, Swaine & ▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
(fax: (▇▇▇) ▇▇▇-▇▇▇▇); Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇.
(c) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.
(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.
19
If the foregoing is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below.
| Very truly yours, UAL CORPORATION |
||||
| By: | /s/ ▇▇▇▇▇▇▇ ▇. Mikells | |||
| Name: | ▇▇▇▇▇▇▇ ▇. Mikells | |||
| Title: | Executive Vice President and
Chief Financial Officer |
|||
| Accepted: October 1, 2009 | ||||
| ▇.▇. ▇▇▇▇▇▇ SECURITIES INC. | ||||
| For itself and on behalf of the | ||||
| several Underwriters listed | ||||
| in Schedule 1 hereto. | ||||
By: |
/s/ N. Goksu Yolac | |||
| Accepted: October 1, 2009 | ||||
| ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & CO. INCORPORATED | ||||
| For itself and on behalf of the | ||||
| several Underwriters listed | ||||
| in Schedule 1 hereto. | ||||
By: |
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇ | |||
| Accepted: October 1, 2009 | ||||
| ▇▇▇▇▇▇▇, ▇▇▇▇▇ & CO. | ||||
| For itself and on behalf of the | ||||
| several Underwriters listed | ||||
| in Schedule 1 hereto. | ||||
By: |
/s/ ▇▇▇▇▇▇▇, Sachs & Co. | |||
Schedule 1
| Underwriter | Number of Shares | |||
▇.▇. ▇▇▇▇▇▇ Securities Inc. |
9,500,000 | |||
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated |
3,800,000 | |||
▇▇▇▇▇▇▇, Sachs & Co. |
2,850,000 | |||
Citigroup Global Markets Inc. |
950,000 | |||
Credit Suisse Securities (USA) LLC |
950,000 | |||
UBS Securities LLC |
950,000 | |||
Total |
19,000,000 | |||
Schedule 2
Subsidiaries
| 1. | United Air Lines, Inc. | ||
| 2. | Covia LLC | ||
| 3. | Galileo Japan Partnership | ||
| 4. | UAL Loyalty Services LLC | ||
| 5. | United Aviation Fuels Corporation |
Schedule 3
Information Furnished by the Underwriters
1. The concession and reallowance figures appearing in the third paragraph under the caption
“Underwriting”; and
2. The information contained in the third paragraph on page S-17 under the caption
“Underwriting”.
Annex A
a. Time of Sale Prospectus
None.
Annex B
Issuer: |
UAL Corporation, a Delaware corporation. | |
Number of Shares: |
19,000,000 | |
Price per Share: |
$7.24 |
Concurrently with this offering, the Company is offering $300 million aggregate principal amount of
6.0% convertible senior notes due 2029, convertible into shares of Common Stock at an initial
conversion rate of 115.1013 shares of Common Stock per $1,000 principal amount of the convertible
senior notes, equivalent to an initial conversion price of approximately $8.69 per share of Common
Stock.
Exhibit A
FORM OF LOCK-UP AGREEMENT
, 2009
▇.▇. ▇▇▇▇▇▇ SECURITIES INC.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & CO. INCORPORATED
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, SACHS & CO.
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
As Representatives of
the several Underwriters listed in
Schedule 1 to the Underwriting
Agreement referred to below
the several Underwriters listed in
Schedule 1 to the Underwriting
Agreement referred to below
Re: UAL Corporation — Public Offering
Ladies and Gentlemen:
The undersigned understands that you, as Representatives of the several Underwriters, propose
to enter into an Underwriting Agreement (the “Underwriting Agreement”) with UAL Corporation, a
Delaware corporation (the “Company”), providing for the public offering (the “Public Offering”) by
the several Underwriters named in Schedule 1 to the Underwriting Agreement (the “Underwriters”), of
19,000,000 shares of common stock, par value $0.01 per share, of the Company (the “Securities”).
Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the
Underwriting Agreement.
In consideration of the Underwriters’ agreement to purchase and make the Public Offering of
the Shares, and for other good and valuable consideration receipt of which is hereby acknowledged,
the undersigned hereby agrees that, without the prior written consent of ▇.▇. ▇▇▇▇▇▇ Securities
Inc. on behalf of the Underwriters, the undersigned will not, during the period ending 60 days
after the date of the prospectus relating to the Public Offering (the “Prospectus”), (1) offer,
pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, directly or indirectly, any shares of common stock, par value
$0.01 per share, of the Company (the “Common Stock”) or any securities convertible into or
exercisable or exchangeable for the Common Stock (including without limitation, Common Stock or
such other securities which may be deemed to be beneficially owned by the undersigned in accordance
with the rules and regulations of the Securities and Exchange Commission and securities which may
be issued upon exercise of a stock option or warrant) (collectively, the “Lock-Up Securities”) or (2) enter into any swap or other agreement that transfers, in whole or in part, any
of the eco-
nomic consequences of ownership of the Lock-Up Securities, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of any Lock-Up Securities, in
cash or otherwise or (3) publicly announce an intention of effecting any transaction specified in
clause (1) or (2), in each case other than (A) transfers of shares of the Lock-Up Securities as a
bona fide gift or gifts, (B) transfers of the Lock-Up Securities to any immediate family member of
the undersigned or trust for the direct or indirect benefit of the undersigned and/or any immediate
family member of the undersigned, (C) in the case of an expiring stock option, the undersigned may
transfer the Lock-Up Securities issuable upon the exercise thereof to the Company in an amount
limited to the amount necessary to pay any tax liabilities associated therewith, (D) upon the death
of the undersigned, transfers of Lock-Up Securities by the estate of the undersigned, (E) Lock-Up
Securities sold pursuant to a Rule 10b5-1 trading plan effective on the date hereof, (F) Lock-Up
Securities or other securities acquired in open market transactions after the completion of the
offering contemplated by the Underwriting Agreement and (G) any transfer of the Lock-Up Securities
with the prior written consent of ▇.▇. ▇▇▇▇▇▇ Securities, Inc. on behalf of the Underwriters;
provided that in the case of any transfer or distribution pursuant to clause (A), (B) or (D), each
donee or distributee shall execute and deliver to the Representatives a lock-up letter in the form
of this paragraph; and provided further, that in the case of any transfer or distribution pursuant
to clause (A), (B), (D) or (F), no filing by any party (donor, donee, transferor or transferee)
under the Securities Exchange Act of 1934, as amended, or other public announcement shall be
required or shall be made voluntarily in connection with such transfer or distribution (other than
a filing on a Form 5 made after the expiration of the 60-day period referred to above).
In addition, the undersigned agrees that, without the prior written consent of ▇.▇. ▇▇▇▇▇▇
Securities Inc. on behalf of the Underwriters, it will not, during the period ending 60 days after
the date of the Prospectus, make any demand for or exercise any right with respect to, the
registration of any Lock-Up Securities or any security convertible into or exercisable or
exchangeable for the Lock-Up Securities.
In furtherance of the foregoing, the Company, and any duly appointed transfer agent for the
registration or transfer of the securities described herein, are hereby authorized to decline to
make any transfer of securities if such transfer would constitute a violation or breach of this
Letter Agreement.
The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Letter Agreement. All authority herein conferred or agreed to be
conferred and any obligations of the undersigned shall be binding upon the successors, assigns,
heirs or personal representatives of the undersigned.
The undersigned understands that, if the Underwriting Agreement does not become effective, or
if the Underwriting Agreement (other than the provisions thereof which survive termination) shall
terminate or be terminated prior to payment for and delivery of the Common Stock to be sold
thereunder, the undersigned shall be released from, all obligations under this Letter Agreement.
The undersigned understands that the Underwriters are entering into the Underwriting Agreement and
proceeding with the Public Offering in reliance upon this Letter Agreement.
This Letter Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to the conflict of laws principles thereof.
| Very truly yours, [NAME OF STOCKHOLDER] |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Exhibit B
Matters to be covered in Opinion of Assistant General Counsel to UAL Corporation
1. UAL Corporation (the “Company”) is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of Delaware, with the corporate power and authority to
own its property and assets and to conduct its business as described in the Registration Statement,
the Time of Sale Prospectus and the Prospectus and to enter into and perform its obligations under
the Underwriting Agreement.
2. The Company is duly qualified to do business as a foreign corporation and is in good
standing in Illinois.
3. The execution, delivery and performance of the Underwriting Agreement by the Company and
the consummation of the transactions contemplated therein by the Company (including the issuance
and sale of the Shares) have been duly authorized by all necessary corporate actions of the Company
and the Underwriting Agreement has been duly executed and delivered by the Company.
4. All of the outstanding shares of capital stock of the Company have been duly authorized and
validly issued and are fully paid and non-assessable. The statements made in the Time of Sale
Prospectus and the Prospectus under the captions “Description of the Common Stock” and “Description
of UAL Capital Stock”, insofar as they purport to constitute summaries of the terms of the Common
Stock, fairly summarize the matters therein described.
5. The Shares have been duly and validly authorized, and, when issued and delivered by the
Company, and paid for by the purchasers thereof, pursuant to the Underwriting Agreement, will be
validly issued, fully paid and non-assessable. Holders of outstanding shares of Common Stock are
not entitled to statutory preemptive rights in connection with the issuance of the Shares.
6. Neither the execution and delivery by the Company of the Underwriting Agreement nor the
consummation by the Company of the transactions contemplated in the Underwriting Agreement,
including the issuance and sale of the Shares, (i) requires any stockholder’s approval, (ii)
violates the Restated Certificate of Incorporation or Amended and Restated Bylaws of the Company,
(iii) violates any judgment, order or decree known to such counsel or (iv) contravenes the
provisions of, or constitutes a default under (in each case material to the Company) any indenture,
mortgage, contract or other agreement known to such counsel to which the Company is a party.
7. Except for the discussion of Legal Proceedings in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2008, subsequently filed Form 10-Qs filed prior to the date hereof
and except as disclosed in the Prospectus, there are no pending or, to such counsel’s knowledge,
threatened, actions or proceedings against the Company, any of its subsidiaries or any of its or
their property or assets before any court or administrative agency which individually (or in the
aggregate in the case of any group of related lawsuits) is expected to have a material adverse
effect on the ability of the Company to perform its obligations under the Underwriting Agreement.
8. The documents incorporated by reference in the Registration Statement, the Time of Sale
Prospectus and the Prospectus (except the financial statements and other financial or statistical
data included or incorporated by reference therein or omitted therefrom, as to which such counsel
expresses no opinion), as of the date they were filed with the Commission, complied as to form in
all material respects
with the requirements of the Securities Act and the applicable rules and regulations of the
Commission thereunder.
Exhibit C
Matters to be covered in Opinion of Cravath, Swaine & ▇▇▇▇▇ LLP
1. Based solely on a certificate from the Secretary of State of the State of Delaware, UAL
Corporation (the “Company”) is a corporation validly existing and in good standing under the laws
of the State of Delaware, with all necessary corporate power and authority to own, lease and
operate its properties and to conduct its business as described in the Registration Statement, the
Time of Sale Prospectus and the Prospectus.
2. The Underwriting Agreement has been duly authorized, executed and delivered by the Company.
3. No authorization, approval or other action by, and no notice to, consent of, order of, or
filing with any United States Federal, New York State or, to the extent required under the General
Corporation Law of the State of Delaware, Delaware governmental authority is required to be made or
obtained by the Company for the consummation of the transactions contemplated by the Underwriting
Agreement, other than (a) those that have been or will be obtained or made under the Securities Act
or the Exchange Act, (b) those that may be required under the Securities Act with respect to the
use of a “free writing prospectus” and (c) those that may be required under state securities or
blue sky laws of any jurisdiction (as to which such counsel need express no opinion).
4. The authorization, execution, delivery and performance of the Underwriting Agreement by the
Company and the issuance and delivery of the Shares by the Company in accordance therewith (a) do
not violate the Restated Certificate of Incorporation or Amended and Restated By-laws of the
Company and (b) will not violate any law, rule or regulation of the United States of America, the
State of New York or the General Corporation Law of the State of Delaware (other than state
securities or blue sky laws, as to which such counsel need express no opinion).
5. The Registration Statement became effective under the Securities Act on December 1, 2008,
and, assuming prior payment by the Company of the pay-as-you-go registration fee for the offering
of the Shares, upon filing of the Prospectus with the Commission the offering of the Shares as
contemplated by the Prospectus became registered under the Securities Act; to such counsel’s
knowledge, no stop order suspending the effectiveness of the Registration Statement has been issued
and no proceedings for that purpose have been instituted or are pending or contemplated under the
Securities Act.
6. The statements set forth in the Time of Sale Prospectus and the Prospectus under the
caption “Certain U.S. federal income tax considerations for non-U.S. holders of the Common Stock”
insofar as they describe the material tax consequences of an investment in the Common Stock, fairly
summarize the matters therein described.
7. Based solely upon the certificate dated the date of such opinion from an officer of the
Company, attached as Exhibit A to such opinion, the Company is not, and after giving effect to the
offering and sale of the Shares and the application of the proceeds thereof as described in the
Prospectus will not be, required to register as an “investment company” as such term is defined in
the Investment Company Act of 1940, as amended.
Such counsel shall also deliver a separate letter to the Underwriters stating that, although
such counsel has made certain inquiries and investigations in connection with the preparation of
the Registra-
tion Statement, the Time of Sale Prospectus and the Prospectus, the limitations inherent in
the role of outside counsel are such that such counsel cannot and does not assume responsibility
for the accuracy or completeness of the statements made in the Registration Statement, the Time of
Sale Prospectus and the Prospectus, except as such statements relate to such counsel. Subject to
the foregoing, such counsel confirms to the Underwriters, on the basis of information gained in the
course of the performance of the services rendered above, that the Registration Statement, at the
time it was last amended or deemed to be amended and the Prospectus, as of the date of the opinion,
appeared or appears on its face to be appropriately responsive in all material respects to the
requirements of the Securities Act and the applicable rules and regulations thereunder, except that
such counsel does not express any view as to the financial statements and other information of a
statistical, accounting or financial nature included therein. Furthermore, subject to the
foregoing, such counsel advises the Underwriters that its work in connection with this matter did
not disclose any information that gave it reason to believe that: (i) the Registration Statement
(insofar as relevant to the offering contemplated by the Prospectus), at the time the Registration
Statement was last amended or deemed to be amended, 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, (ii) the Prospectus, as of its date or at the date of this
opinion, included or includes, an 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 or (iii) the Time of Sale Prospectus,
considered together as of 7:00 pm on October 1, 2009 (the “Applicable Time”), included an untrue
statement of a material fact or omitted to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading,
except that, in each case, counsel does not express any view as to the financial statements and
other information of a statistical, accounting or financial nature included therein.