EXECUTION VERSION
Exhibit 1.1
Jarden Corporation
11,500,000 Shares
Underwriting Agreement
New York, New York
November 8, 2006
Lehman Brothers Inc.
Citigroup Global Markets
Inc.
Goldman, Sachs &
Co.
As
Representatives of the Underwriters
named in
Schedule III hereto
c/o Lehman Brothers Inc.
745 Seventh Avenue
New York, New York 10019
Ladies and Gentlemen:
Jarden Corporation, a Delaware
corporation (the “ Company ”), proposes
to issue and sell to the several underwriters named in
Schedule III hereto (the “
Underwriters ”), for whom you (the “
Representatives ”) are acting as
representatives, the number of shares of Common Stock, $0.01 par
value (the “ Common Stock ”), of the
Company set forth in Schedule I hereto (the “
Primary Securities ”), and the persons named in
Schedule II hereto (the “ Selling
Stockholders ”) propose to sell to the several
Underwriters the number of shares of Common Stock set forth in
Schedule II hereto (the “ Secondary
Securities ,” and together with the Primary
Securities, the “ Underwritten Securities
”). Certain Selling Stockholders also propose to grant to the
Underwriters an option (the “ Option ”)
to purchase up to the number of additional shares of Common Stock
set forth in Schedule II to cover over-allotments (the
“ Option Securities ,” the Option
Securities, together with the Underwritten Securities, being
hereinafter called the “ Securities ”).
To the extent there are no additional Underwriters listed on
Schedule III other than you, the term Representatives
as used herein shall mean you, as Underwriters, and the terms
Representatives and Underwriters shall mean either the singular or
plural as the context requires. In addition, to the extent that
there is more than one Selling Stockholder named in
Schedule II , the term Selling Stockholder shall mean
either the singular or plural. The use of the neuter in this
Agreement shall include the feminine and masculine wherever
appropriate. Any reference herein to the Registration Statement,
the Disclosure Package, the Base Prospectus, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and
include the documents incorporated by reference therein pursuant to
Item 12 of Form S-3 which were filed under the Exchange
Act on or before the Effective Date of the Registration Statement
or the issue date of the Base Prospectus, any Preliminary
Prospectus or the Prospectus, as the case may be; and any reference
herein to the terms “amend,” “amendment” or
“supplement” with respect to the Registration
Statement, the Base Prospectus, any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include the filing of
any document under the Exchange Act after the Effective Date of the
Registration Statement or the issue date of the Base Prospectus,
any Preliminary Prospectus or the Prospectus, as the case may be,
deemed to be incorporated therein by reference. Certain terms used
herein are defined in Section 21 hereof.
1. Representations and
Warranties .
(i) The Company represents and
warrants to, and agrees with, each Underwriter as set forth below
in this Section 1.
(a) The Company meets the
requirements for the use of Form S-3 under the Act and has
prepared and filed with the Commission an automatic shelf
registration statement, as defined in Rule 405 (the file number of
which is set forth in Schedule I hereto) on
Form S-3, including the related Base Prospectus, for
registration under the Act of the offering and sale of the
Securities. Such Registration Statement, including any amendments
thereto filed prior to the Execution Time, became effective upon
filing. The Company may have filed with the Commission, as part of
an amendment to the Registration Statement or pursuant to Rule
424(b), one or more Preliminary Prospectuses, each of which has
previously been furnished to you. The Company will file with the
Commission a Prospectus relating to the Securities in accordance
with Rule 424(b). As filed, the Prospectus shall contain all
information required by the Act and the rules thereunder, and,
except to the extent the Representatives shall agree in writing to
a modification, shall be in all substantive respects in the form
furnished to you prior to the Execution Time or, to the extent not
completed at the Execution Time, shall contain only such specific
additional information and other changes (beyond that contained in
the Base Prospectus and any Preliminary Prospectus) as the Company
has advised you, prior to the Execution Time, will be included or
made therein. The Registration Statement, at the Execution Time,
meets the requirements set forth in
Rule 415(a)(1)(x).
(b) On the Effective Date, the
Registration Statement did, and when the Prospectus is first filed
(if required) in accordance with Rule 424(b) and on the
Closing Date (as defined herein) and on any date on which Option
Securities are purchased, if such date is not the Closing Date (a
“ settlement date ”), the Prospectus (and
any supplement thereto) will, comply in all material respects with
the applicable requirements of the Act and the Exchange Act and the
respective rules thereunder; on the Effective Date and at the
Execution Time, the Registration Statement did not contain any
untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make
the statements therein not misleading; and on the date of any
prospectus filed pursuant to Rule 424(b) and on the Closing
Date and any settlement date, the Prospectus (together with any
supplement thereto) will not 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
under which they were made, not misleading; provided ,
however , that the Company makes no representations or
warranties as to the information contained in or omitted from the
Registration Statement or the Prospectus (or any supplement
thereto) in reliance upon and in conformity with information
furnished in writing to the Company by or on behalf of any
Underwriter through the Representatives or by or on behalf of any
Selling Stockholder, in each case, specifically for inclusion in
the Registration Statement or the Prospectus (or any supplement
thereto), it being understood and agreed that the only such
information furnished by or on behalf of any Underwriters consists
of the information described as such in Section 9
hereof.
(c) The Disclosure Package did not,
as of the Execution Time, contain any untrue statement of a
material fact or omit to state any material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading, except that the price
of the Securities and disclosures directly relating to the
Securities will be included on the cover page of the Prospectus.
Each road show that is an Issuer Free Writing Prospectus but not
required to be filed pursuant to Rule 433 when taken together as
whole with the Disclosure Package did not, as of the Execution
Time, contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were
made, not misleading, except that the
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price of the Securities and
disclosures directly relating to the Securities will be included on
the cover page of the Prospectus. The preceding sentences do not
apply to statements in or omissions from the Disclosure Package
based upon and in conformity with written information furnished to
the Company by any Underwriter through the Representatives
specifically for use therein, it being understood and agreed that
the only such information furnished by or on behalf of any
Underwriter consists of the information described as such in
Section 9 hereof.
(d) (i) At the time of filing the
Registration Statement, (ii) at the time of the most recent
amendment thereto for the purposes of complying with
Section 10(a)(3) of the Act (whether such amendment was by
post-effective amendment, incorporated report filed pursuant to
Sections 13 or 15(d) of the Exchange Act or form of prospectus),
(iii) at the time the Company or any person acting on its
behalf (within the meaning, for this clause only, of Rule 163(c))
made any offer relating to the Securities in reliance on the
exemption in Rule 163, and (iv) at the Execution Time (with
such date being used as the determination date for purposes of this
clause (iv)), the Company was or is (as the case may be) a
“well-known seasoned issuer” as defined in Rule 405.
The Company agrees to pay the fees required by the Commission
relating to the Securities within the time required by Rule
456(b)(1) without regard to the proviso therein and otherwise in
accordance with Rules 456(b) and 457(r).
(e) (i) At the earliest time after
the filing of the Registration Statement that the Company or
another offering participant made a bona fide offer (within
the meaning of Rule 164(h)(2)) of the Securities and (ii) as
of the Execution Time (with such date being used as the
determination date for purposes of this clause (ii)), the Company
was not and is not an Ineligible Issuer (as defined in Rule 405),
without taking account of any determination by the Commission
pursuant to Rule 405 that it is not necessary that the Company be
considered an Ineligible Issuer.
(f) Each Issuer Free Writing
Prospectus does not include any information that conflicts with the
information then contained in the Registration Statement, including
any document incorporated therein and any prospectus supplement
deemed to be a part thereof that has not been superseded or
modified. The foregoing sentence does not apply to statements in or
omissions from the Disclosure Package based upon and in conformity
with written information furnished to the Company by any
Underwriter through the Representatives specifically for use
therein, it being understood and agreed that the only such
information furnished by or on behalf of any Underwriter consists
of the information described as such in Section 9
hereof.
(g) The Company’s Annual
Report on Form 10-K for the year ended December 31, 2005 and
Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2006, June 30, 2006 and September 30,
2006 incorporated by reference in the Disclosure Package and the
Prospectus, comply in all material respects with the requirements
of the Exchange Act, and any documents so filed and incorporated by
reference subsequent to the date of this Agreement and prior to or
on the Closing Date, when they are filed with the Commission, shall
conform in all material respects with the requirements of the
Exchange Act, and when read together with the other information in
the Disclosure Package or the Prospectus, do not contain an untrue
statement of a material fact or omit to state a material fact
necessary to make the statements therein, in light of the
circumstances under which they were made, not
misleading;
(h) The Company is subject to and in
full compliance with the reporting requirements of Section 13
or Section 15(d) of the Exchange Act.
(i) Each of the Company and its
Significant Subsidiaries has been duly incorporated or organized
and is validly existing as a corporation, limited liability company
or partnership in
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good standing under the laws of the
jurisdiction in which it is chartered or organized with full
corporate, limited liability company or partnership power and
authority to own or lease, as the case may be, and to operate its
properties and conduct its business as described in the Disclosure
Package and the Prospectus, and is duly qualified to do business as
a foreign corporation and is in good standing under the laws of
each jurisdiction which requires such qualification, except where
the failure to be in good standing or duly qualified (i) could
not reasonably be expected to have a material adverse effect on the
performance of this Agreement or the consummation of any of the
transactions contemplated hereby; or (ii) could not reasonably
be expected to have a material adverse effect on the condition
(financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business (a “ Material Adverse Effect ”).
Other than the subsidiaries listed on Annex A hereto (the
“ Significant Subsidiaries ,” and each a
“ Significant Subsidiary ”), the Company
does not have any “significant subsidiary,” as that
term is defined in Rule 1-02(w) of Regulation S-X under the
Act.
(j) All the outstanding shares of
capital stock, or equity interests in the case of a limited
liability company, of each subsidiary have been duly and validly
authorized and issued and are fully paid and nonassessable, and,
except for directors’ qualifying or nominal shares or as
otherwise disclosed in the Disclosure Package and the Prospectus,
all outstanding shares of capital stock or other equity interests
of the subsidiaries are owned by the Company either directly or
through wholly-owned, except for directors’ qualifying or
nominal shares, subsidiaries free and clear of any perfected
security interest or any other security interests, claims or liens,
except for any such perfected security interest or any other
security interests, claims or liens that would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse
Effect.
(k) The Company’s authorized
equity capitalization is as set forth under the caption
“Capitalization” in the Disclosure Package and the
Prospectus (other than for subsequent issuances, if any, pursuant
to employee benefit plans or upon the exercise of outstanding
options or warrants described in the Disclosure Package and the
Prospectus); the Common Stock of the Company conforms in all
material respects to the description thereof contained in the
Disclosure Package and the Prospectus. The outstanding shares of
Common Stock (including the Securities being sold hereunder by the
Selling Stockholders) have been duly and validly authorized and
issued and are fully paid and nonassessable; the Securities being
sold by the Company have been duly and validly authorized, and,
when issued and delivered to and paid for by the Underwriters
pursuant to this Agreement, will be fully paid and nonassessable;
the Securities being sold by the Selling Stockholders are duly
listed, and admitted and authorized for trading, on the New York
Stock Exchange and the Securities being sold by the Company are
duly listed, and admitted and authorized for trading, subject to
official notice of issuance, on the New York Stock Exchange; the
certificates for the Securities are in valid and sufficient form;
the holders of outstanding shares of capital stock of the Company
are not entitled to preemptive or other rights to subscribe for the
Securities; and, except as set forth in the Disclosure Package and
the Prospectus, no options, warrants or other rights to purchase,
agreements or other obligations to issue, or rights to convert any
obligations into or exchange any securities for, shares of capital
stock of or ownership interests in the Company are
outstanding.
(l) There is no franchise, contract
or other document of a character required to be described in the
Registration Statement, the Disclosure Package or the Prospectus,
or to be filed as an exhibit thereto, which is not described or
filed as required; and the statements in the Disclosure Package and
the Prospectus under the heading “Material U.S. Federal
Income Tax Considerations for Non U.S. Holders” and the
statements in the Company’s Annual Report on
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Form 10-K for the year ended
December 31, 2005 under “Item 3. – Legal
Proceedings” and in the Company’s Quarterly Reports on
Form 10-Q for the quarters ended March 31,
2006, June 30, 2006 and September 30, 2006 under
“Item 1. – Legal Proceedings” incorporated by
reference in the Disclosure Package and the Prospectus insofar as
such statements summarize legal matters, agreements, documents or
proceedings discussed therein, are accurate and fair summaries in
all material respects of such legal matters, agreements, documents
or proceedings.
(m) This Agreement has been duly
authorized, executed and delivered by the Company.
(n) The Company is not and, after
giving effect to the offering and sale of the Securities and the
application of the proceeds thereof as described under the heading
“Use of Proceeds” in the Disclosure Package and the
Prospectus, will not be an “investment company” as
defined in the Investment Company Act of 1940, as
amended.
(o) No consent, approval,
authorization, filing with or order of any court or governmental
agency or body is required in connection with the transactions
contemplated herein, except such as have been obtained under the
Act and made with the New York Stock Exchange and such as may be
required under the blue sky laws of any jurisdiction in connection
with the purchase and distribution of the Primary Securities by the
Underwriters in the manner contemplated herein and in the
Disclosure Package and the Prospectus.
(p) The execution, delivery and
performance of this Agreement and the issuance of the Primary
Securities by the Company and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary
corporate action and will not conflict with, result in a breach or
violation of, or imposition of any lien, charge or encumbrance upon
any property or assets of the Company or any of its subsidiaries
pursuant to, (i) the certificate of incorporation, by-laws or
other organizational documents of the Company or any of its
subsidiaries, (ii) the terms of any indenture, contract,
lease, mortgage, deed of trust, note agreement, loan agreement or
other agreement, obligation, condition, covenant or instrument to
which the Company or any of its subsidiaries is a party or bound or
to which its or their property is subject, or (iii) any
statute, law, rule, regulation, judgment, order or decree
applicable to the Company or any of its subsidiaries of any court,
regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over the Company
or any of its subsidiaries or any of its or their properties;
except in the case of clauses (ii) and (iii) for such
conflicts, breaches or violations that could not reasonably be
expected to have a Material Adverse Effect.
(q) No holders of securities of the
Company have rights to the registration of such securities under
the Registration Statement.
(r) The consolidated historical
financial statements and schedules of the Company and its
consolidated subsidiaries included or incorporated by reference in
the Disclosure Package, the Prospectus and the Registration
Statement present fairly in all material respects the financial
condition, results of operations and cash flows of the Company and
its consolidated subsidiaries as of the dates and for the periods
indicated, comply as to form with the applicable accounting
requirements of the Act and have been prepared in conformity with
generally accepted accounting principles throughout the periods
involved (except as otherwise noted therein). The pro forma
financial statements included or incorporated by reference in the
Disclosure Package, the Prospectus and the Registration Statement
include assumptions that provide a reasonable basis for presenting
the significant effects directly attributable to the transactions
and events described
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therein, the related pro forma
adjustments give appropriate effect to those assumptions, and the
pro forma adjustments reflect the proper application of those
adjustments to the historical financial statement amounts in the
pro forma financial statements included in the Disclosure Package
and the Prospectus and the Registration Statement. The pro forma
financial statements included or incorporated by reference in the
Disclosure Package, the Prospectus and the Registration Statement
comply as to form in all material respects with the applicable
accounting requirements of Regulation S-X under the Act and the pro
forma adjustments have been properly applied to the historical
amounts in the compilation of those statements.
(s) No action, suit or proceeding by
or before any court or governmental agency, authority or body or
any arbitrator involving the Company or any of its subsidiaries or
its or their property is pending or, to the best knowledge of the
Company, threatened that could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, except as
set forth in or contemplated in the Disclosure Package and the
Prospectus (exclusive of any supplement thereto).
(t) The Company and each of its
Significant Subsidiaries has good and marketable title in fee
simple to all real property and good and marketable title to all
personal property owned by them, in each case free and clear of all
liens, encumbrances and defects except such as are described in the
Disclosure Package and the Prospectus and such as do not materially
affect the value of the property of the Company and its
subsidiaries taken as a whole and do not materially interfere with
the use made and proposed to be made of such property by the
Company or any of its Significant Subsidiaries; and all real
property and buildings held under lease by the Company or any of
its Significant Subsidiaries are held by them under valid,
subsisting and enforceable leases, with such exceptions as could
not reasonably be expected to have a Material Adverse
Effect.
(u) Neither the Company nor any
subsidiary is in violation or default of (i) any provision of
its certificate of incorporation, by-laws or other organizational
document, (ii) the terms of any indenture, contract, lease,
mortgage, deed of trust, note agreement, loan agreement or other
agreement, obligation, condition, covenant or instrument to which
it is a party or bound or to which its property is subject, or
(iii) any statute, law, rule, regulation, judgment, order or
decree of any court, regulatory body, administrative agency,
governmental body, arbitrator or other authority having
jurisdiction over the Company or such subsidiary or any of its
properties, as applicable, other than such defaults in the case of
clauses (ii) and (iii) which could not, individually or
in the aggregate, have a Material Adverse Effect.
(v) Ernst & Young LLP, who
have certified certain financial statements of the Company and its
consolidated subsidiaries and delivered their report with respect
to the audited consolidated financial statements and schedules
included or incorporated by reference in the Disclosure Package and
the Prospectus, are independent public accountants with respect to
the Company within the meaning of the Act.
(w) Deloitte & Touche LLP,
who have certified certain financial statements of American
Household, Inc. and its consolidated subsidiaries (collectively,
“ AHI ”) and delivered their report with
respect to the audited consolidated financial statements and
schedules included or incorporated by reference in the Disclosure
Package and the Prospectus, were independent public accountants
with respect to AHI within the meaning of the Act.
(x) PricewaterhouseCoopers LLP, who
have certified certain financial statements of The Holmes Group,
Inc. and its consolidated subsidiaries (collectively, “
Holmes ”) and delivered
6
their report with respect to the
audited consolidated financial statements and schedules included or
incorporated by reference in the Disclosure Package and the
Prospectus, were independent public accountants with respect to
Holmes within the meaning of the Act.
(y) There are no transfer taxes or
other similar fees or charges under federal law or the laws of any
state, or any political subdivision thereof, required to be paid in
connection with the execution and delivery of this Agreement or the
issuance by the Company or sale by the Company of the
Securities.
(z) The Company has filed all
foreign, federal, state and local tax returns that are required to
be filed or has requested extensions thereof (except in any case in
which the failure so to file would not have a Material Adverse
Effect, except as set forth in or contemplated in the Disclosure
Package and the Prospectus (exclusive of any supplement thereto)
and has timely paid all taxes required to be paid by it and any
other assessment, fine or penalty levied against it, to the extent
that any of the foregoing is due and payable, except for any such
assessment, fine or penalty that is currently being contested in
good faith or with respect to which the failure to pay would not
have a Material Adverse Effect, except as set forth in or
contemplated in the Disclosure Package and the Prospectus
(exclusive of any supplement thereto).
(aa) No labor problem or dispute
with the employees of the Company or any of its subsidiaries exists
or is threatened or imminent, and the Company is not aware of any
existing or imminent labor disturbance by the employees of any of
its or its subsidiaries’ principal suppliers, contractors or
customers, that could reasonably be expected to have a Material
Adverse Effect, except as set forth in or contemplated in the
Disclosure Package and the Prospectus (exclusive of any supplement
thereto).
(bb) The Company and each of its
subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as
are adequate and customary in the businesses in which they are
engaged; all policies of insurance and fidelity or surety bonds
insuring the Company or any of its subsidiaries or their respective
businesses, assets, employees, officers and directors are in full
force and effect; the Company and its subsidiaries are in
compliance with the terms of such policies and instruments in all
material respects; and there are no claims by the Company or any of
its subsidiaries under any such policy or instrument as to which
any insurance company is denying liability except as have been
disclosed by the Company or the denial of which could not
reasonably be expected to have a Material Adverse Effect; neither
the Company nor any such subsidiary has been refused any insurance
coverage sought or applied for; and neither the Company nor any
such subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may
be necessary to continue its business at a cost that could not
reasonably be expected to have a Material Adverse Effect, except as
set forth in or contemplated in the Disclosure Package and the
Prospectus (exclusive of any supplement thereto).
(cc) No subsidiary of the Company is
currently prohibited, directly or indirectly from paying any
dividends to the Company, from making any other distribution on
such subsidiary’s capital stock, from repaying to the Company
any loans or advances to such subsidiary from the Company or from
transferring any of such subsidiary’s property or assets to
the Company or any other subsidiary of the Company, except as
described in or contemplated by the Disclosure Package and the
Prospectus (exclusive of any supplement thereto) and as set forth
on Schedule 2(cc) .
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(dd) The Company and its
subsidiaries possess all licenses, certificates, permits and other
authorizations issued by the appropriate federal, state or foreign
regulatory authorities necessary to conduct their respective
businesses, except where the failure to have such license,
certificate, permit or authorization could not reasonably be
expected to have a Material Adverse Effect, and neither the Company
nor any such subsidiary has received any notice of proceedings
relating to the revocation or modification of any such certificate,
authorization or permit which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, could
reasonably be expected to have a Material Adverse Effect, except as
set forth in or contemplated in the Disclosure Package and the
Prospectus (exclusive of any supplement thereto).
(ee) The Company and its
subsidiaries, taken as a whole, maintain adequate internal controls
over financial reporting as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act designed to provide reasonable
assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with accounting principles generally accepted in the
United States of America (“ GAAP ”); the
Company’s internal controls over financial reporting include
those polices and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of
the Company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of
financial statements in accordance with GAAP, and that receipts and
expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company; and
(iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use or disposition of
the Company’s assets that could have a material effect on the
financial statements. The Company and its subsidiaries’
internal controls over financial reporting are effective as of the
effective date and the Company and its subsidiaries are not aware
of any material weakness in their internal control over financial
reporting.
(ff) The Company and its
subsidiaries maintain “disclosure controls and
procedures” (as such term is defined in Rule 13a-15(e) under
the Exchange Act); such disclosure controls and procedures are
effective.
(gg) The Company has not taken,
directly or indirectly, any action designed to or that would
constitute or that might reasonably be expected to cause or result
in, under the Exchange Act or otherwise, stabilization or
manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.
(hh) The Company and its
subsidiaries are (i) in compliance with any and all applicable
foreign, federal, state and local laws and regulations relating to
the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants
(“ Environmental Laws ”), (ii) have
received and are in compliance with all permits, licenses or other
approvals required of them under applicable Environmental Laws to
conduct their respective businesses and (iii) have not
received notice of any actual or potential liability under any
environmental law, except where such non-compliance with
Environmental Laws, failure to receive required permits, licenses
or other approvals, or liability could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect, except as set forth in or contemplated in the Disclosure
Package and the Prospectus (exclusive of any supplement
thereto).
(ii) In the ordinary course of its
business, the Company periodically reviews the effect of
Environmental Laws on the business, operations and properties of
the Company and its subsidiaries, in the course of which it
identifies and evaluates associated costs and
liabilities
8
(including, without limitation, any
capital or operating expenditures required for clean-up, closure of
properties or compliance with Environmental Laws, or any permit,
license or approval, any related constraints on operating
activities and any potential liabilities to third parties). On the
basis of such review, the Company has reasonably concluded that
such associated costs and liabilities would not, singly or in the
aggregate, have a Material Adverse Effect, except as set forth in
or contemplated in the Disclosure Package and the Prospectus
(exclusive of any supplement thereto).
(jj) The Company and its
subsidiaries own, possess, license or have other rights to use, on
reasonable terms, all patents, patent applications, trade and
service marks, trade and service mark registrations, trade names,
copyrights, licenses, inventions, trade secrets, technology,
know-how and other intellectual property necessary for the conduct
of the Company’s business (collectively, the “
Intellectual Property ”) as now conducted or as
proposed to be conducted in the Disclosure Package and the
Prospectus, except where the failure to own, possess, license or
have other rights to use such Intellectual Property would not
reasonably be expected to have a Material Adverse Effect. To the
Company’s knowledge, there are no rights of third parties to
any of the Intellectual Property (other than the rights of
licensors in Intellectual Property that is licensed to the Company
and its subsidiaries or such rights that are not inconsistent with
the Company’s rights), except for any such rights of third
parties that would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. To the
Company’s knowledge, there is no infringement by third
parties of any of the Intellectual Property, except for any such
infringement by third parties that would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse
Effect. There is no pending or, to the Company’s knowledge,
threatened action, suit, proceeding or claim by others challenging
the Company’s rights in or to any of the Intellectual
Property, except for any such action, suit, proceeding or claim
that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. There is no pending or,
to the Company’s knowledge, threatened action, suit,
proceeding or claim by others challenging the validity or scope of
any of the Intellectual Property, except for any such action, suit,
proceeding or claim that would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect, and the Company is unaware of any facts that would form a
reasonable basis for such action, suit, proceeding or claim. There
is no pending or, to the Company’s knowledge, threatened
action, suit, proceeding or claim by others that the Company
infringes or otherwise violates any patent, trademark, copyright,
trade secret or other proprietary rights of others, except for any
such action, suit, proceeding or claim that would not, individually
or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(kk) The minimum funding standard
under Section 302 of the Employee Retirement Income Security
Act of 1974, as amended, and the regulations thereunder (“
ERISA ”), has been satisfied by each
“pension plan” (as defined in Section 3(2) of
ERISA) which has been established or maintained by the Company
and/or one or more of its subsidiaries, and the trust forming part
of each such plan which is intended to be qualified under
Section 401 of the Code is so qualified, except where the
failure of the pension plan to satisfy such minimum funding
standards would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect; each of the Company
and its subsidiaries has fulfilled its obligations, if any, under
Section 515 of ERISA; except as set forth on Schedule
2(kk) , each pension plan and welfare plan established or
maintained by the Company and/or one or more of its subsidiaries is
in compliance in all material respects with the currently
applicable provisions of ERISA; and neither the Company nor any of
its subsidiaries has incurred or could reasonably be expected to
incur any material withdrawal liability under Section 4201 of
ERISA, any material liability under Section 4062, 4063, or
4064 of ERISA, or any other material liability under Title IV of
ERISA.
9
(ll) There is and has been no
failure on the part of the Company and any of the Company’s
directors or officers, in their capacities as such, to comply with
any provision of the Sarbanes Oxley Act of 2002 and the rules and
regulations promulgated in connection therewith (the “
Sarbanes Oxley Act ”), including
Section 402 related to loans and Sections 302 and 906 related
to certifications.
(mm) Neither the Company nor any of
its subsidiaries nor, to the knowledge of the Company, any
director, officer, agent, employee or affiliate of the Company or
any of its subsidiaries has taken any action, directly or
indirectly, that would result in a violation by such Persons of the
FCPA, including, without limitation, making use of the mails or any
means or instrumentality of interstate commerce corruptly in
furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to
give, or authorization of the giving of anything of value to any
“foreign official” (as such term is defined in the
FCPA) or any foreign political party or official thereof or any
candidate for foreign political office, in contravention of the
FCPA and the Company, its subsidiaries and, to the knowledge of the
Company, its affiliates have conducted their businesses in
compliance with the FCPA and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably
expected to continue to ensure, continued compliance therewith.
“ FCPA ” means Foreign Corrupt Practices
Act of 1977, as amended, and the rules and regulations
thereunder.
(nn) The operations of the Company
and its subsidiaries are, and have been conducted at all times, in
compliance with applicable financial recordkeeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act
of 1970, as amended, the money laundering statutes of all
jurisdictions, the rules and regulations thereunder and any related
or similar rules, regulations or guidelines, issued, administered
or enforced by any governmental agency (collectively, the “
Money Laundering Laws ”) and no action, suit or
proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its
subsidiaries with respect to the Money Laundering Laws is pending
or, to the best knowledge of the Company, threatened.
(oo) Neither the Company nor any of
its subsidiaries nor, to the knowledge of the Company, any
director, officer, agent, employee or affiliate of the Company or
any of its subsidiaries is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S.
Treasury Department (“ OFAC ”); and the
Company will not directly or indirectly use the proceeds of the
offering, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person
or entity, for the purpose of financing the activities of any
person currently subject to any U.S. sanctions administered by
OFAC.
(pp) Since the date of the most
recent financial statements included or incorporated by reference
in the Disclosure Package and the Prospectus, there has been no
material adverse change in the condition (financial or otherwise),
prospects, earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set
forth in or contemplated by the Disclosure Package and the
Prospectus.
(qq) The Company has not taken any
action or omitted to take any action (such as issuing any press
release relating to any Securities without an appropriate legend)
which may result in the loss by any of the Underwriters of the
ability to rely on any stabilization safe harbor provided by the
Financial Services Authority under the Financial Services and
Markets Act 2000 (the “ FSMA ”). The
Company has been informed of the guidance relating to
stabilization
10
provided by the Financial Services
Authority, in particular in Section MAR 2 Annex 2G of the Financial
Services Handbook.
(rr) The statistical and
market-related data included or incorporated by reference in the
Disclosure Package and the Prospectus are based on or derived from
sources that the Company believes to be reliable and accurate and
represent the good faith estimates that are made on the basis of
data derived from such sources.
Any certificate signed by any
officer of the Company and delivered to the Representatives or
counsel for the Underwriters in connection with the offering of the
Securities shall be deemed a representation and warranty by the
Company, as to matters covered thereby, to each
Underwriter.
(ii) Each Selling Stockholder
(including each Executive Selling Stockholder (as defined below))
represents and warrants to, and agrees with, each Underwriter
that:
(a) Except as set forth in the
Voting Trust Agreement, dated June 8, 2006, by and among
Warburg Pincus Private Equity VIII, L.P., Warburg Pincus
Netherlands Private Equity VIII I, C.V., Warburg Pincus Germany
Private Equity VIII, K.G. (collectively, the “ Warburg
Funds ”) and Martin E. Franklin with respect to the
Securities to be sold by the Warburg Funds, such Selling
Stockholder is the record and beneficial owner of the Securities to
be sold by him, her or it hereunder free and clear of all liens,
security interests, pledges and encumbrances, and has duly endorsed
such Securities in blank. Assuming that (i) each Underwriter
acquires its interest in the Securities it has purchased from such
Selling Stockholder without notice of any adverse claim (within the
meaning of Section 8-105 of the New York Uniform Commercial
Code (“ UCC ”)), (ii) each
Underwriter that has purchased such Securities delivered on the
Closing Date or any settlement date to The Depository Trust Company
or other securities intermediary with its jurisdiction in the State
of New York (within the meaning of Section 8-110(e) of the
UCC) by making payment therefor as provided herein, and
(iii) such Securities have been accepted for credit to the
securities account or accounts of such Underwriter maintained with
The Depository Trust Company or such other securities intermediary,
then such Underwriter will have acquired a security entitlement
(within the meaning of Section 8-102(a)(17) of the UCC) to
such Securities purchased by such Underwriter, and no action based
on an adverse claim (within the meaning of Section 8-105 of
the UCC) may be asserted against such Underwriter with respect to
such Securities.
(b) Such Selling Stockholder has not
taken, directly or indirectly, any action designed to or that would
constitute or that might reasonably be expected to cause or result
in, under the Exchange Act or otherwise, stabilization or
manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities in connection with
the sale of the Securities hereunder.
(c