Exhibit 4.1
NBTY, INC.
$200,000,000
7 1/8% Senior Subordinated Notes due
2015
PURCHASE AGREEMENT
September 16, 2005
J.P. MORGAN SECURITIES INC.
As Representative of the
several Initial Purchasers listed
in Schedule II hereto
c/o J.P. Morgan Securities Inc.
270 Park Avenue, 5th floor
New York, New York 10017
Ladies and Gentlemen:
NBTY, Inc., a Delaware corporation
(the “ Company ”), proposes to issue and sell
$200,000,000 aggregate principal amount of its 7 1/8% Senior
Subordinated Notes due 2015 (the “ Notes
”). The Notes will be issued pursuant to an Indenture
to be dated as of September 23, 2005 (the “ Indenture
”) among the Company, those Guarantors listed on Schedule I
hereto (the “ Guarantors ” and, together with
the Company, the “ Issuers ”) and The Bank of
New York, as trustee (the “ Trustee ”).
The Notes will be guaranteed on a senior subordinated basis by the
Guarantors (the “ Guarantees ” and, together
with the Notes, the “ Securities ”);
provided , however , the Guarantees, other than the
Guarantees of Solgar Holdings, Inc., Solgar, Inc. and Solgar Mexico
Holdings, LLC, which will be obligated to provide such Guarantees
after such time as the Company would not be required to file
separate financial statements for Solgar Holdings, Inc. with the
Securities and Exchange Commission, will not become effective until
such time as all of the Company’s issued and outstanding 8
5 / 8 % Senior Subordinated Notes due 2007
have been repaid in full. The Company hereby confirms its
agreement with J.P. Morgan Securities Inc. (the “
Representative ”), Adams Harkness, Inc., BNP Paribas
Securities Corp., HSBC Securities (USA) Inc. and RBC Capital
Markets Corporation (collectively, the “ Initial
Purchasers ”) concerning the purchase of the Securities
by the Initial Purchasers.
The Securities will be offered and
sold to the Initial Purchasers without being registered under the
Securities Act of 1933, as amended (the “ Securities
Act ”), in reliance upon exemptions therefrom. The
Company has prepared a preliminary offering memorandum
dated September 9, 2005 (the “
Preliminary Offering Memorandum ”) and an offering
memorandum dated the date hereof (the “ Final Offering
Memorandum ”) setting forth information concerning the
Company, the Guarantors, the Notes and the Exchange Notes (as
defined below). Copies of the Preliminary Offering Memorandum
have been, and copies of the Final Offering Memorandum will be,
delivered by the Company to the Initial Purchasers pursuant to the
terms of this Agreement. Any references herein to the
Preliminary Offering Memorandum and the Final Offering Memorandum
shall be deemed to include all amendments and supplements thereto,
unless otherwise noted. The Company hereby confirms that it
has authorized the use of the Preliminary Offering Memorandum and
the Final Offering Memorandum in connection with the offering and
resale of the Notes by the Initial Purchasers in accordance with
Section 2.
Holders of the Securities (including
the Initial Purchasers and their respective direct and indirect
transferees) will be entitled to the benefits of a Registration
Rights Agreement, substantially in the form attached hereto as
Annex B (the “ Registration Rights Agreement
”), pursuant to which the Issuers will agree to file with the
Securities and Exchange Commission (the “ Commission
”) (i) a registration statement under the Securities Act (the
“ Exchange Offer Registration Statement ”)
registering an issue of senior subordinated notes of the Company
(the “ Exchange Notes ”) and an issue of senior
subordinated guarantees by the Guarantors (the “ Exchange
Guarantees ” and, together with the Exchange Notes, the
“ Exchange Securities ”) which, together, are
identical in all material respects to the Securities (except that
the Exchange Securities will not contain terms with respect to
transfer restrictions) and (ii) under certain circumstances, a
shelf registration statement with respect to the resale of the
Securities pursuant to Rule 415 under the Securities Act (the
“ Shelf Registration Statement ”).
Capitalized terms used but not
defined herein shall have the meanings given to such terms in the
Final Offering Memorandum.
1.
Representations, Warranties and Agreements of the Issuers
. The Issuers, jointly and severally, represent and warrant
to, and agree with, each Initial Purchaser on and as of the date
hereof and the Closing Date (as defined in Section 3)
that:
(a)
Each of the Preliminary Offering Memorandum and the Final Offering
Memorandum, as of its respective date, did not, and on the Closing
Date the Final Offering Memorandum will not, contain any untrue
statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which
they were made, not misleading; provided , however ,
that the Issuers make no representation or warranty as to
information contained in or omitted from the Preliminary Offering
Memorandum or the Final Offering Memorandum in reliance upon and in
conformity with written information relating to the Initial
Purchasers furnished to the Company by or on behalf of the Initial
Purchasers expressly for use therein (collectively, the “
Initial Purchasers’ Information ”).
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(b)
Each of the Preliminary Offering Memorandum and the Final Offering
Memorandum, as of its respective date, contains all of the
information that, if requested by a prospective purchaser of the
Securities, would be required to be provided to such prospective
purchaser pursuant to Rule 144A(d)(4) under the Securities
Act.
(c)
Assuming the accuracy of the representations and warranties of the
Initial Purchasers contained in Section 2 and their compliance with
the agreements set forth therein, it is not necessary, in
connection with the issuance and sale of the Securities to the
Initial Purchasers and the offer, resale and delivery of the
Securities by the Initial Purchasers in the manner contemplated by
this Agreement and the Final Offering Memorandum, to register the
Securities under the Securities Act or to qualify the Indenture
under the Trust Indenture Act of 1939, as amended (the “
Trust Indenture Act ”).
(d)
The Company and each of the Subsidiaries (as defined in paragraph
(e) below) have been duly incorporated or formed, as the case may
be, and are validly existing as a corporation or limited liability
company, as the case may be, in good standing under the laws of
their respective jurisdictions of incorporation or formation, are
duly qualified to do business and are in good standing as a foreign
corporation or limited liability company, as the case may be, in
each jurisdiction in which their respective ownership or lease of
property or the conduct of their respective businesses requires
such qualification and have all power and authority necessary to
own or hold their respective properties and to conduct the
businesses in which they are engaged, except where the failure to
so qualify or have such power or authority would not, singularly or
in the aggregate, have a material adverse effect on the condition
(financial or otherwise), results of operations, business or
prospects of the Company and the Subsidiaries, taken as a whole (a
“ Material Adverse Effect ”).
(e)
The Company has an authorized capitalization as set forth in the
Final Offering Memorandum under the heading
“Capitalization”; all of the outstanding shares of
capital stock of the Company have been duly and validly authorized
and issued and are fully paid and non-assessable. The
entities listed on Schedule I hereto are the only
subsidiaries (as defined in the “Description of Notes”
section of the Final Offering Memorandum) of the Company
(collectively, the “ Subsidiaries ”). All
of the outstanding shares of capital stock or membership interests
of each Subsidiary have been duly and validly authorized and
issued, are fully paid and non-assessable and are owned directly or
indirectly by the Company, free and clear of any lien, charge,
encumbrance, security interest, restriction upon voting or transfer
or any other claim of any third party (other than any lien securing
that certain Second Amended and Restated Credit Agreement, as
amended and restated on August 1, 2005, and as further amended
thereafter, among NBTY, Inc., the lenders party thereto, JPMorgan
Chase Bank, N.A. and Bank of America, N.A. (the “ Senior
Credit Facility ”)).
(f)
The Issuers have all requisite corporate or other organizational
power and authority to execute and deliver this Agreement, the
Indenture, the Registration
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Rights Agreement
and the Securities (collectively, the “ Transaction
Documents ”) and to perform their respective obligations
under the Transaction Documents; and all corporate or other
organizational action required to be taken by each of the Issuers
for the due and proper authorization, execution and delivery of
each of the Transaction Documents and the consummation of the
transactions contemplated thereby has been duly and validly
taken.
(g)
This Agreement has been duly authorized, executed and delivered by
each of the Issuers and, assuming due execution and delivery by the
Initial Purchasers, constitutes a valid and legally binding
agreement enforceable against each of the Issuers in accordance
with its terms, except to the extent that such enforceability may
be limited by (i) applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally,
(ii) general equitable principles (regardless of whether
enforcement is considered in a proceeding in equity or at law) and
the availability of equitable remedies or (iii) the
enforceability of rights to indemnification and contribution
thereunder may be limited by federal or state securities laws or
regulations or the public policy underlying such laws or
regulations.
(h)
The Registration Rights Agreement has been duly authorized by each
of the Issuers and, when duly executed and delivered in accordance
with its terms by each of the parties thereto, will constitute a
valid and legally binding agreement of each of the Issuers,
enforceable against each of the Issuers in accordance with its
terms, except to the extent that such enforceability may be limited
by (i) applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally, (ii) general
equitable principles (regardless of whether enforcement is
considered in a proceeding in equity or at law) and the
availability of equitable remedies or (iii) the enforceability
of rights to indemnification and contribution thereunder may be
limited by federal or state securities laws or regulations or the
public policy underlying such laws or regulations.
(i)
The Indenture has been duly authorized by each of the Issuers and,
when duly executed and delivered in accordance with its terms by
each of the parties thereto, will constitute a valid and legally
binding agreement of each of the Issuers, enforceable against each
of the Issuers in accordance with its terms, except to the extent
that such enforceability may be limited by (i) applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws affecting the enforcement of
creditors’ rights generally or (ii) general equitable
principles (regardless of whether enforcement is considered in a
proceeding in equity or at law) and the availability of equitable
remedies. On the Closing Date, the Indenture will conform in
all material respects to the requirements of the Trust Indenture
Act and the rules and regulations of the Commission
thereunder.
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(j)
The Notes have been duly authorized by the Company and, when duly
executed, authenticated, issued and delivered, as provided in the
Indenture and paid for as provided herein, will be duly and validly
issued and outstanding and will constitute valid and legally
binding obligations of the Company entitled to the benefits of the
Indenture, enforceable against the Company in accordance with their
terms, except to the extent that such enforceability may be limited
by (i) applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally or
(ii) general equitable principles (regardless of whether
enforcement is considered in a proceeding in equity or at law) and
the availability of equitable remedies, and the Guarantees have
been duly authorized by each of the Guarantors and, when the
Guarantees have been duly executed, authenticated, issued and
delivered as provided in the Indenture and when the Notes have been
executed, authenticated, issued and delivered and paid for as
provided herein, will be valid and legally binding obligations of
each of the Guarantors entitled to the benefits of the Indenture,
enforceable against each of the Guarantors in accordance with their
terms, except to the extent that such enforceability may be limited
by (i) applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally or
(ii) general equitable principles (regardless of whether
enforcement is considered in a proceeding in equity or at law) and
the availability of equitable remedies.
(k)
On the Closing Date, the Exchange Securities (including the related
Exchange Guarantees) will have been duly authorized by each of the
Issuers, as the case may be, and, when executed, authenticated,
issued and delivered as provided in the Indenture and the
Registration Rights Agreement, will be duly and validly issued and
outstanding and will constitute valid and legally binding
obligations of each of the Issuers entitled to the benefits of the
Indenture, enforceable against the Company, as issuer, and the
Guarantors, each as a Guarantor of the Notes in accordance with
their terms, except to the extent that such enforceability may be
limited by (i) applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally or
(ii) general equitable principles (regardless of whether
enforcement is considered in a proceeding in equity or at law) and
the availability of equitable remedies.
(l)
Each Transaction Document conforms in all material respects to the
description thereof contained in the Final Offering
Memorandum.
(m)
The execution, delivery and performance by each of the Issuers of
each of the Transaction Documents to which it is a party, the
issuance, authentication, sale and delivery of the Securities and
compliance by each of the Issuers with the terms thereof and the
consummation of the transactions contemplated by the Transaction
Documents will not (i) conflict with or result in a breach or
violation of any of the terms or the provisions of, or constitute a
default under, or, with notice or lapse of time or both, constitute
a default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of any of
the Issuers pursuant to,
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any indenture,
mortgage, deed of trust, loan agreement or other material agreement
or instrument to which any of the Issuers is a party or by which
any of the Issuers is bound or to which any of the property or
assets of any of the Issuers is subject, nor (ii) will such actions
result in any violation of (x) the provisions of the charter or
by-laws of any of the Issuers or (y) any statute or any
judgment, order, decree, rule or regulation of any court or
arbitrator or governmental agency or body having jurisdiction over
any of the Issuers or any of their respective properties or assets,
except, in all such cases other than clause (ii)(x), to the extent
as would not have, individually or in the aggregate, a Material
Adverse Effect; and no consent, approval, authorization or order
of, or filing or registration with, any such court or arbitrator or
governmental agency or body under any such statute, judgment,
order, decree, rule or regulation is required for the execution,
delivery and performance by any of the Issuers of each of the
Transaction Documents to which it is a party, the issuance,
authentication, sale and delivery of the Securities and compliance
by the Issuers with the terms thereof and the consummation of the
transactions contemplated by the Transaction Documents, except for
such consents, approvals, authorizations, filings, registrations or
qualifications (i) which shall have been obtained or made prior to
the Closing Date, (ii) as may be required to be obtained or made
under the Securities Act and applicable state securities laws as
provided in the Registration Rights Agreement or (iii) where the
failure to obtain such consents approvals, authorizations, filings,
registrations, or qualifications would not have, individually or in
the aggregate, a Material Adverse Effect.
(n)
Each of Deloitte & Touche LLP and PricewaterhouseCoopers LLP is
an independent registered public accounting firm with respect to
the Company and its consolidated subsidiaries within the meaning of
the Exchange Act and published rulings and regulations
thereunder. The historical financial statements (including
the related notes) of the Company contained in the Final Offering
Memorandum comply, in all material respects, with the requirements
applicable to a registration statement on Form S-1 under the
Securities Act (except to the extent described in the Final
Offering Memorandum); such historical financial statements have
been prepared in accordance with United States generally accepted
accounting principles consistently applied throughout the periods
covered thereby and fairly present, in all material respects, the
financial position of the entities purported to be covered thereby
at the respective dates indicated and the results of their
operations and their cash flows for the respective periods
indicated, except as disclosed therein; and the financial
information contained in the Final Offering Memorandum under the
headings “Summary—Summary historical consolidated
financial data,” “Capitalization,”
“Selected historical consolidated financial data,” and
“Management’s discussion and analysis of financial
condition and results of operations” is derived from the
accounting records of the Company and the Subsidiaries and fairly
presents, in all material respects, the information purported to be
shown thereby. The other historical financial and statistical
information and data included in the Final Offering Memorandum
fairly presents, in all material respects, the information
purported to be shown thereby.
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(o)
Except as disclosed in the Final Offering Memorandum, there are no
legal or governmental proceedings (including, without limitation,
before the United States Food and Drug Administration (the “
FDA ”), the Federal Trade Commission (the “
FTC ”), the Consumer Product Safety Commission (the
“ CPSC ”), the United States Department of
Agriculture (the “ USDA ”), the Environmental
Protection Agency (the “ EPA ”), the U.K. Foods
Standard Agency (“ FSA ”) and the U.K.
Department of Health pending to which the Company or any of the
Subsidiaries is a party or of which any property or assets of the
Company or any of the Subsidiaries is the subject which, singularly
or in the aggregate, if determined adversely to the Company or any
of the Subsidiaries, could reasonably be expected to have a
Material Adverse Effect; and except as disclosed in the Final
Offering Memorandum, to the best knowledge of the Company, no such
proceedings are threatened or contemplated by governmental
authorities or threatened by others.
(p)
To the best knowledge of the Issuers, no action has been taken and
no statute, rule, regulation, injunction or order has been enacted,
adopted or issued by any governmental agency or body which prevents
the issuance of the Securities or suspends the sale of the
Securities and no injunction, restraining order or order of any
nature by any federal or state court of competent jurisdiction has
been issued with respect to the Issuers which would prevent or
suspend the issuance or sale of the Securities or the use of the
Preliminary Offering Memorandum or the Final Offering Memorandum in
any jurisdiction; no action, suit or proceeding is pending against
or, to the best knowledge of the Issuers, threatened against or
affecting any Issuer before any court or arbitrator or any
governmental agency, body or official, domestic or foreign, which
could reasonably be expected to interfere with or adversely affect
the issuance of the Securities or in any manner draw into question
the validity or enforceability of any of the Transaction Documents
or any action taken or to be taken pursuant to the Transaction
Documents; and the Issuers have complied with any and all requests
by any securities authority in any jurisdiction for additional
information to be included in the Preliminary Offering Memorandum
and the Final Offering Memorandum.
(q)
Neither the Company nor any of the Subsidiaries is (i) in
violation of its charter, by-laws or operating agreement,
(ii) in default, and no event has occurred which, with notice
or lapse of time or both, would constitute a default, in the due
performance or observance of any term, covenant or condition
contained in any indenture, mortgage, deed of trust, loan agreement
or other agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound or to which any of the Company’s or any
of its Subsidiaries’ property or assets is subject, which
default, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect or (iii) in violation of
any law (including, without limitation, the Federal Food, Drug and
Cosmetic Act and the Dietary Supplement Health and Education Act of
1994), ordinance, governmental rule, regulation, order, judgment or
decree to which it or its property or assets may be subject, which
violation, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.
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(r)
The Company and each of the Subsidiaries possess all material
licenses, certificates, authorizations and permits issued by, and
have made all declarations and filings with, the appropriate
federal, state, local or foreign regulatory agencies or bodies
(including, without limitation, the FDA, the FTC, the CPSC, the
USDA, the EPA, FSA, the U.K. Department of Health) which are
necessary or desirable for the ownership of their respective
properties or the conduct of their respective businesses as
described in the Final Offering Memorandum, except where the
failure to possess or make the same would not, singularly or in the
aggregate, have a Material Adverse Effect, and neither the Company
nor any of the Subsidiaries has received notification of any
revocation or modification of any such license, certificate,
authorization or permit or has any reason to believe that any such
license, certificate, authorization or permit will not be renewed
in the ordinary course except where the failure to renew any such
license, certificate, authorization or permit, singularly or in the
aggregate, could reasonably be expected to have a Material Adverse
Effect.
(s)
The Company and each of the Subsidiaries have filed all federal,
state, local and foreign income and franchise tax returns required
to be filed through the date hereof and have paid all taxes due
thereon, except insofar as the failure to file such returns,
individually or in the aggregate, would not have a Material Adverse
Effect; and no tax deficiency has been determined adversely to the
Company or any of the Subsidiaries which has had (nor does the
Company or any of the Subsidiaries have any knowledge of any tax
deficiency which, if determined adversely to the Company or any of
the Subsidiaries, could reasonably be expected to have) a Material
Adverse Effect.
(t)
Neither the Company nor any of the Subsidiaries is (i) an
“investment company” or a company “controlled
by” an “investment company” within the meaning of
the Investment Company Act of 1940, as amended (the “
Investment Company Act ”), and the rules and
regulations of the Commission thereunder or (ii) a “holding
company” or a “subsidiary company” of a
“holding company” or an “affiliate” of any
thereof within the meaning of the Public Utility Holding Company
Act of 1935, as amended.
(u)
The Company and each of the Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations; (ii)
transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with
respect to any differences.
(v)
The Company and each of the Subsidiaries have insurance covering
their respective properties, operations, personnel and businesses,
which insurance is in
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amounts and
insures against such losses and risks as are adequate in the
Company’s reasonable opinion to protect the Company and the
Subsidiaries and their respective businesses. Neither the
Company nor any of the Subsidiaries has received notice from any
insurer or agent of such insurer that substantial capital
improvements are required or necessary to be made in order to
continue such insurance.
(w)
The Company and each of the Subsidiaries own or possess adequate
rights to use all material patents, patent applications,
trademarks, service marks, trade names, trademark registrations,
service mark registrations, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures)
(collectively, the “ intellectual property ”)
necessary for the conduct of their respective businesses, except
where the failure to own or possess, have the right to use, or
otherwise be able to acquire such intellectual property would not,
singularly or in the aggregate, have a Material Adverse Effect; and
the conduct of their respective businesses will not conflict in any
material respect with, and the Company and the Subsidiaries have
not received any notice of any claim of conflict with, any such
material rights of others, in each case which conflict,
individually or in the aggregate, would have a Material Adverse
Effect.
(x)
The Company and each of the Subsidiaries have good and marketable
title in fee simple to, or have valid rights to lease or otherwise
use, all items of real and personal property which are material to
the business of the Company and the Subsidiaries, in each case free
and clear of all liens, encumbrances, claims and defects and
imperfections of title other than (i) liens, encumbrances and
claims securing the Senior Credit Facility or as disclosed in the
Final Offering Memorandum or (ii) liens, encumbrances, claims and
defects and imperfections of title that (I) do not materially
interfere with the use made and proposed to be made of such
property or (II) could not reasonably be expected to have a
Material Adverse Effect.
(y)
No labor disturbance by or dispute with the employees of the
Company or any of the Subsidiaries exists or, to the best knowledge
of the Company and the Subsidiaries, is contemplated or threatened,
to the extent as could reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect; there is no
significant unfair labor practice complaint pending against the
Company or any of the Subsidiaries nor, to the best knowledge of
the Company and the Subsidiaries, threatened against any of them,
before the National Labor Relations Board, any state or local labor
relations board or any foreign labor relations boards, and no
significant grievance or significant arbitration proceeding arising
out of or under any collective bargaining agreement is pending
against the Company or any or the Subsidiaries or, to the best
knowledge of the Company and the Subsidiaries, threatened against
any of them, in each case, to the extent as could not reasonably be
expected, individually or in the aggregate, to have a Material
Adverse Effect.
(z)
No “prohibited transaction” (as defined in Section 406
of the Employee Retirement Income Security Act of 1974, as amended,
including the regulations and
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published
interpretations thereunder (“ ERISA ”), or
Section 4975 of the Internal Revenue Code of 1986, as amended from
time to time (the “ Code ”)) or
“accumulated funding deficiency” (as defined in Section
302 of ERISA) or any of the events set forth in Section 4043(b) of
ERISA (other than events with respect to which the 30-day notice
requirement under Section 4043 of ERISA has been waived) has
occurred with respect to any employee benefit plan of the Company
or any of the Subsidiaries, or any entity that together with the
Company or any Subsidiary is treated as a single employer under
Section 414 (b), (c), (m) or (e) of the Code, which, in each case,
could reasonably be expected to have a Material Adverse Effect;
each such employee benefit plan, including, without limitation,
each such pension plan that is intended to be qualified under
Section 401(a) of the Code, is in compliance in all material
respects with applicable law, including ERISA and the Code, except
for instance of noncompliance which could not reasonably be
expected to have a Material Adverse Effect; the Company and each of
the Subsidiaries have not incurred and do not expect to incur
liability under Title IV of ERISA with respect to the termination
of, or withdrawal from, any pension plan for which the Company or
any of the Subsidiaries would have any liability which could
reasonably be expected to have a Material Adverse
Effect.
(aa)
There has been no storage, generation, transportation, handling,
treatment, disposal, discharge, emission or other release of any
kind of any pollutant or contaminant, or any toxic, hazardous or
other substance, waste or constituent (“ Material
”) by, due to or caused by the Company or any of the
Subsidiaries (or, to the best knowledge of the Company and the
Subsidiaries, any other entity (including any predecessor) for
whose acts or omissions the Company or any of the Subsidiaries is
or could reasonably be expected to be liable) at, upon, under or
from any of the property now or previously owned, leased or
operated by the Company or any of the Subsidiaries (or any
predecessor), or upon any other property, in violation of any
statute or any ordinance, rule, regulation, order, judgment, decree
or permit or which would, under any statute or any ordinance, rule
(including rule of common law), regulation, order, judgment, decree
or permit, give rise to any liability, except for any violation or
liability which could not reasonably be expected to have,
singularly or in the aggregate with all such violations and
liabilities, a Material Adverse Effect; and there has been no
disposal, discharge, emission or other release of any kind onto
such property or into the environment surrounding such property of
any Material with respect to which the Company or any of the
Subsidiaries has knowledge, except for any such disposal,
discharge, emission or other release of any kind which could not
reasonably be expected to have, singularly or in the aggregate with
all such discharges and other releases, a Material Adverse
Effect.
(bb)
Neither the Company, any of the Subsidiaries nor, to the best
knowledge of the Company and the Subsidiaries, any director,
officer, agent, employee or other person associated with or acting
on behalf of the Company or any of the Subsidiaries has (i) used
any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political
activity; (ii) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee
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from corporate
funds; (iii) violated or is in violation of any provision of the
Foreign Corrupt Practices Act of 1977; or (iv) made any bribe,
rebate, payoff, influence payment, kickback or other unlawful
payment.
(cc)
Prior to and immediately after the closing of the offering of the
Notes, each of (x) the Company and (y) the Guarantors, taken as a
whole, (after giving effect to the issuance of the Securities and
to the other transactions related thereto as described in the Final
Offering Memorandum) will be Solvent. As used in this
paragraph, the term “Solvent” means, with respect to an
Issuer at a particular time, that at such time (i) the present fair
market value (or present fair saleable value) of the assets of such
Issuer is not less than the total amount required to pay the
probable liabilities of such Issuer, as the case may be, on its
total existing debts and liabilities (including contingent
liabilities) as they become absolute and matured, (ii) such Issuer
is able to realize upon its assets and pay its debts and other
liabilities, contingent obligations and commitments as they mature
and become due in the normal course of business, (iii) such Issuer
has not incurred and is not incurring debts or liabilities beyond
its ability to pay as such debts and liabilities mature and (iv)
such Issuer is not engaged in any business or transaction, and does
not intend to engage in any business or transaction, for which its
property would constitute unreasonably small capital. In
computing the amount of such contingent liabilities at any time, it
is intended that such liabilities will be computed at the amount
that, in the light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to
become an actual or matured liability.
(dd)
Except as described in the Final Offering Memorandum, there are no
outstanding subscriptions, rights, warrants, calls or options to
acquire, or instruments convertible into or exchangeable for, or
agreements or understandings with respect to the sale or issuance
of, any shares of capital stock of or other equity or other
ownership interest in the Company or any of the
Subsidiaries.
(ee)
Neither the issuance, sale and delivery of the Securities nor the
application of the proceeds thereof by the Company as described in
the Final Offering Memorandum will violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System or any other
regulation of such Board of Governors.
(ff)
No Issuer is a party to any contract, agreement or understanding
with any person (other than the Initial Purchasers) that would give
rise to a valid claim against such Issuer or the Initial Purchasers
for a brokerage commission, finder’s fee or like payment in
connection with the offering and sale of the Notes.
(gg)
The Securities satisfy the eligibility requirements of
Rule 144A(d)(3) under the Securities Act.
(hh)
None of the Issuers nor any of their affiliates (“
Affiliates ”) (as defined in Rule 501(b) of Regulation
D under the Securities Act (“ Regulation D ”))
has,
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directly or
through any agent (other than the Initial Purchasers, as to which
no representation is made), sold, offered for sale, solicited
offers to buy or otherwise negotiated in respect of, any security
(as such term is defined in the Securities Act), which is or will
be integrated with the sale of the Securities in a manner that
would require registration of the Securities under the Securities
Act.
(ii)
None of the Issuers nor any of their respective affiliates or any
other person acting on their behalf (other than the Initial
Purchasers, as to which no representation is made) has (i)
solicited offers for, or offered or sold, the Securities by means
of any form of general solicitation or general advertising within
the meaning of Rule 502(c) of Regulation D or in any manner
involving a public offering within the meaning of Section 4(2) of
the Securities Act or (ii) engaged in any directed selling efforts
within the meaning of Regulation S under the Securities Act
(“ Regulation S ”) with respect to the
Securities, and all such persons have complied with the offering
restrictions requirement of Regulation S.
(jj)
There are no holders of securities of the Issuers who, by reason of
the execution by the Issuers of any of the Transaction Documents or
the consummation of the transactions contemplated therein (except
as contemplated by the Registration Rights Agreement), have the
right to request or demand that the Issuers register under the
Securities Act any securities held by them.
(kk)
No forward-looking statement (within the meaning of Section 27A of
the Securities Act and Section 21E of the Exchange Act) contained
in the Preliminary Offering Memorandum or the Final Offering
Memorandum has been made or reaffirmed without a reasonable basis
or has been disclosed other than in good faith.
(ll)
Since the date as of which information is given in the Final
Offering Memorandum, except as otherwise expressly stated therein,
(i) there has been no material adverse change in the condition
(financial or otherwise), or in the results of operations,
business, management or prospects of the Company and the
Subsidiaries taken as a whole, (ii) neither the Company nor any
Subsidiary has incurred any material liability or obligation,
direct or contingent, other than in the ordinary course of
business, (iii) neither the Company nor any Subsidiary has entered
into any material transaction other than in the ordinary course of
business and (iv) there has not been any change in the capital
stock or long-term debt of the Company and the Subsidiaries, except
in the normal course of business, or any dividend or distribution
of any kind declared, paid or made by the Company or any of the
Subsidiaries on any class of its capital stock.
(mm)
There is and has been no failure on the part of the
Compan
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