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Exhibit 1.1
CENTERPOINT ENERGY RESOURCES CORP.
$150,000,000
6.25% Senior Notes due 2037
Underwriting Agreement
February 1, 2007
Banc of America Securities LLC
9 West 57th Street
New York, New York 10019
Deutsche Bank Securities Inc.
60 Wall Street
New York, New York 10005
J.P. Morgan Securities Inc.
270 Park Avenue
New York, New York 10017
c/o Banc of America Securities LLC
as the Representatives of the several Underwriters
Ladies and Gentlemen:
CenterPoint Energy Resources Corp., a Delaware corporation (the
"COMPANY"), confirms, subject to the terms and conditions stated
herein, its
agreement to issue and sell to the Underwriters named in Schedule I
hereto (the
"UNDERWRITERS") $150,000,000 aggregate principal amount of its
6.25% Senior
Notes due 2037 (the "NOTES") to be issued pursuant to an Indenture
dated as of
February 1, 1998 (the "BASE INDENTURE") between the Company and The
Bank of New
York Trust Company, National Association (successor to JPMorgan
Chase Bank,
National Association), as trustee (the "TRUSTEE") and a
Supplemental Indenture
No. 10 to the Base Indenture dated as of February 6, 2007 (the
"SUPPLEMENTAL
INDENTURE," and together with the Base Indenture and any amendments
or
supplements thereto, the "INDENTURE"), between the Company and the
Trustee. The
Company understands that the several Underwriters propose to offer
the Notes for
sale upon the terms and conditions contemplated by this Agreement
and by the
documents listed in Schedule III (such documents herein called the
"PRICING
DISCLOSURE PACKAGE").
1.
REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.
(a) The Company represents and warrants to, and agrees with, each
of
the Underwriters, on and as of the date hereof and the Closing Date
(as defined
in Section 2) that:
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(i) A registration statement on Form S-3 with respect to the
Notes and other securities with an aggregate maximum initial public
offering
price of $500,000,000 (File No. 333-136965), copies of which have
been delivered
to the Underwriters, has been prepared and filed by the Company
with the
Securities and Exchange Commission (the "COMMISSION"). Such
registration
statement, including a prospectus, has been declared effective
under the
Securities Act of 1933, as amended (the "1933 ACT"), and no stop
order
suspending its effectiveness has been issued and no proceeding for
that purpose
or pursuant to Section 8A of the 1933 Act against the Company or
related to the
offering has been initiated or, to the best knowledge of the
Company, threatened
by the Commission. The term "REGISTRATION STATEMENT" means such
registration
statement, as deemed revised pursuant to Rule 430B(f)(1) under the
1933 Act on
the date of such registration statement's effectiveness for
purposes of Section
11 of the 1933 Act, as such section applies to the Company and the
Underwriters
for the Notes pursuant to Rule 430B(f)(2) under the 1933 Act (the
"EFFECTIVE
DATE"). The base prospectus included in the Registration Statement
relating to
the Notes and certain other issues of debt securities (exclusive of
any
supplement filed pursuant to Rule 424) is herein called the "BASIC
PROSPECTUS".
The Basic Prospectus as amended and supplemented by a preliminary
prospectus
supplement dated February 1, 2007 relating to the Notes immediately
prior to the
Applicable Time (as defined below) is hereinafter called the
"PRELIMINARY
PROSPECTUS". The Company proposes to file together with the Basic
Prospectus and
pursuant to Rule 424 under the 1933 Act a prospectus supplement
specifically
relating to the Notes and reflecting the terms of the Notes and
plan of
distribution arising from this Agreement (herein called the
"PRICING
SUPPLEMENT") and has previously advised the Underwriters of all the
information
to be set forth therein. The term "PROSPECTUS" means the Basic
Prospectus
together with the Pricing Supplement, as first filed with the
Commission
pursuant to Rule 424.
Any reference herein to the Basic Prospectus, the Preliminary
Prospectus or the Prospectus shall be deemed to refer to and
include the
documents incorporated by reference therein, or deemed to be
incorporated by
reference therein, and filed under the Securities Exchange Act of
1934, as
amended (the "1934 ACT"), on or before the date of such Basic
Prospectus,
Preliminary Prospectus or Prospectus, as applicable; any reference
herein to the
terms "amend," "amendment" or "supplement" with respect to the
Basic Prospectus,
the Preliminary Prospectus or Prospectus shall be deemed to refer
to and
include, without limitation, the filing of any document under the
1934 Act
deemed to be incorporated therein by reference after the date of
such Basic
Prospectus, Preliminary Prospectus or Prospectus.
For purposes of this Agreement, the "APPLICABLE TIME" is 3:00
p.m.
(New York Time) on the date of this Agreement.
(ii) The Registration Statement, the Permitted Free Writing
Prospectus (as defined in Section 3(a)), the Preliminary Prospectus
and the
Prospectus conform, and any amendments or supplements thereto will
conform, in
all material respects to the requirements of the 1933 Act and the
Trust
Indenture Act of 1939, as amended (the "TIA"), and the rules and
regulations of
the Commission under the 1933 Act and the TIA; and (A) the
Registration
Statement will not, as of the Effective Date,
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contain an untrue statement of a material fact or omit to state a
material fact
required to be stated therein or necessary to make the statements
therein not
misleading, and (B) (i) the Pricing Disclosure Package does not as
of the
Applicable Time, (ii) the Prospectus and any amendment or
supplement thereto
will not, as of their dates, and (iii) the Prospectus, as it may be
amended or
supplemented pursuant to Section 4 hereof, as of the Closing Date
will not,
contain an untrue statement of a material fact or omit to state a
material fact
required to be stated therein or necessary to make the statements
therein, in
the light of the circumstances under which they were made, not
misleading;
provided, however, that this representation and warranty shall not
apply to: (A)
any statements or omissions made in reliance upon and in conformity
with any
information furnished in writing by the Representatives on behalf
of the
Underwriters for use therein, and (B) any Form T-1 Statement of
Eligibility and
Qualification included as an exhibit to the Registration
Statement;
(iii) Each document filed or to be filed pursuant to the 1934
Act
and incorporated by reference, or deemed to be incorporated by
reference in the
Preliminary Prospectus or the Prospectus (including, without
limitation, any
document to be filed pursuant to the 1934 Act which will be
incorporated by
reference in the Prospectus) conformed or, when so filed, will
conform in all
material respects to the requirements of the 1934 Act and the
applicable rules
and regulations of the Commission thereunder, and none of such
documents
included or, when so filed, will include any untrue statement of a
material fact
or omitted or, when so filed, will omit to state any material fact
required to
be stated therein or necessary to make the statements therein, in
the light of
the circumstances under which they were made, not misleading;
(iv) Any Permitted Free Writing Prospectus listed on Schedule
III
hereto does not include anything that conflicts with the
information contained
or incorporated by reference in the Registration Statement, the
Preliminary
Prospectus or the Prospectus;
(v) At the determination date for purposes of the Notes within
the meaning of Rule 164(h) under the 1933 Act, the Company was not
an
"ineligible issuer" as defined in Rule 405 under the 1933 Act. The
Company has
been since the time of the initial filing of the Registration
Statement and
continues to be eligible to use Form S-3 under the 1933 Act;
(vi) The Company has been duly incorporated and is validly
existing in good standing under the laws of the State of Delaware,
with
corporate power and authority to own its properties and conduct its
business as
described in the Pricing Disclosure Package and the Prospectus;
(vii) Each Significant Subsidiary (as defined in Regulation S-X
under the 1933 Act) of the Company has been duly formed and is
validly existing
in good standing under the laws of the jurisdiction of its
formation, with power
and authority (corporate and other) to own its properties and
conduct its
business as described in the Pricing Disclosure Package and the
Prospectus; and
each Significant Subsidiary of the Company is duly qualified to do
business as a
foreign corporation, limited partnership or
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limited liability company in good standing in all other
jurisdictions in which
its ownership or lease of property or the conduct of its business
requires such
qualification; all of the issued and outstanding ownership
interests of each
Significant Subsidiary of the Company have been duly authorized and
validly
issued in accordance with the organizational documents of such
Significant
Subsidiary; and the ownership interests of each Significant
Subsidiary owned by
the Company, directly or through subsidiaries, is owned free from
liens,
encumbrances and defects;
(viii) This Agreement has been duly authorized, executed and
delivered by the Company;
(ix) The Notes and the Indenture have been duly authorized by
the
Company and, when the Supplemental Indenture has been duly executed
and
delivered by the Company in accordance with its terms, and assuming
the valid
execution and delivery thereof by the Trustee, the Indenture will
constitute,
and, in the case of the Notes, when they are delivered by the
Company, paid for
pursuant to this Agreement and the Indenture and duly authenticated
and
delivered by the Trustee, the Notes will, on the Closing Date,
constitute, valid
and legally binding obligations of the Company, enforceable in
accordance with
their respective terms, subject, as to enforcement, to bankruptcy,
insolvency,
fraudulent transfer, reorganization and other laws of general
applicability
relating to or affecting creditors' rights and to general equity
principles
(regardless of whether such enforceability is considered in a
proceeding in
equity or at law); the Notes when delivered by the Company, paid
for pursuant to
this Agreement and the Indenture and duly authenticated and
delivered by the
Trustee, will be entitled to the benefits of the Indenture; and the
Notes
conform to the descriptions thereof in the Pricing Disclosure
Package and the
Prospectus;
(x) The issuance by the Company of the Notes, the compliance by
the Company with all of the provisions of this Agreement, the Notes
and the
Indenture, and the consummation of the transactions contemplated
herein and
therein (a) will not conflict with or result in a breach or
violation of any of
the terms or provisions of, or constitute a default under, any
indenture,
mortgage, deed of trust, loan agreement or other agreement or
instrument to
which the Company or any subsidiary is a party or by which the
Company or any
subsidiary is bound or to which any of the property or assets of
the Company or
any subsidiary is subject, which conflict, breach, violation, or
default would
individually, or in the aggregate, have a material adverse effect
on the
financial condition, business or results of operations of the
Company and its
subsidiaries, taken as a whole ("MATERIAL ADVERSE EFFECT"); and (b)
will not
result in any violation of the provisions of the Certificate of
Incorporation or
By-laws or other organizational documents of the Company, the
charter, by-laws
or other organizational documents of any subsidiary of the Company
or any
existing statute or any order, rule or regulation of any court or
governmental
agency or body having jurisdiction over the Company's or any of its
or its
subsidiaries' properties;
(xi) The Commission has issued an order under the 1933 Act
declaring the Registration Statement effective and qualifying the
Indenture
under the TIA and no other consent, approval, authorization, order,
registration
or qualification of or
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with any such court or governmental agency or body is required for
the issue of
the Notes or the consummation by the Company of the other
transactions
contemplated by this Agreement and the Indenture, except such
consents,
approvals, authorizations, registrations or qualifications as may
be required
under state securities or blue sky laws in connection with the
issuance by the
Company of the Notes and the purchase and distribution of the Notes
by the
Underwriters;
(xii) The Company and its subsidiaries possess certificates,
authorities or permits issued by appropriate governmental agencies
or bodies
necessary to conduct the business now operated by them and have not
received any
notice of proceedings relating to the revocation or modification of
any such
certificate, authority or permit that, if determined adversely to
the Company or
any of its subsidiaries, would individually or in the aggregate
have a Material
Adverse Effect;
(xiii) Except as disclosed in the Pricing Disclosure Package
and
the Prospectus, neither the Company nor any of its subsidiaries is
in violation
of any statute, any 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 or relating to the
protection or
restoration of the environment or human exposure to hazardous or
toxic
substances (collectively, "ENVIRONMENTAL LAWS"), owns or operates
any real
property contaminated with any substance that is subject to any
Environmental
Laws, is liable for any off-site disposal or contamination pursuant
to any
Environmental Laws, or is subject to any claim relating to any
Environmental
Laws, which violation, contamination, liability or claim would
individually or
in the aggregate have a Material Adverse Effect; and the Company is
not aware of
any pending investigation which has a reasonable possibility of
leading to such
a claim;
(xiv) Except as disclosed in the Pricing Disclosure Package and
the Prospectus, there are no pending actions, suits or proceedings
against or
affecting the Company, any of its subsidiaries or any of their
respective
properties that, if determined adversely to the Company or any of
its
subsidiaries, would individually or in the aggregate have a
Material Adverse
Effect, or would materially and adversely affect the ability of the
Company to
perform its obligations under the Indenture or this Agreement, or
which are
otherwise material in the context of the sale of the Notes; and no
such actions,
suits or proceedings are threatened or, to the Company's
knowledge,
contemplated;
(xv) The financial statements included or incorporated by
reference in the Registration Statement, the Pricing Disclosure
Package and the
Prospectus present fairly the financial position of the Company and
its
consolidated subsidiaries as of the dates shown and their results
of operations
and cash flows for the periods shown, and, except as otherwise
disclosed in the
Registration Statement, the Pricing Disclosure Package and the
Prospectus, such
financial statements have been prepared in conformity with the
generally
accepted accounting principles in the United States applied on a
consistent
basis; and
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(xvi) Since the date of the latest audited financial statements
incorporated by reference in the Registration Statement, the
Pricing Disclosure
Package and the Prospectus and except as disclosed in the
Registration
Statement, the Pricing Disclosure Package and the Prospectus there
has been no
material adverse change in the business, financial condition,
prospects or
results of operations of the Company and its subsidiaries taken as
a whole, and
there has been no dividend or distribution of any kind declared,
paid or made by
the Company on any class of its equity interests (other than a
dividend on the
common stock of the Company in the amount of $100,000,000 paid to
Utility
Holding, LLC in December 2006).
(xvii) The Company maintains a system of internal accounting
controls and maintains disclosure controls and procedures in
conformity with the
requirements of the 1934 Act and is otherwise in compliance in all
material
respects with the requirements of the Sarbanes-Oxley Act of 2002
and the rules
and regulations promulgated in connection therewith.
(xviii) Deloitte & Touche LLP, who have certified certain
financial statements of the Company and its subsidiaries are an
independent
registered public accounting firm with respect to the Company and
its
subsidiaries within the applicable rules and regulations adopted by
the
Commission and the Public Accounting Oversight Board (United
States) and as
required by the 1933 Act.
(xix) The Company is not, and after giving effect to the
offering
and sale of the Notes and the application of the proceeds thereof
as described
in the Prospectus under the caption "Use of Proceeds," will not be
an
"investment company" as such term is defined in the Investment
Company Act of
1940, as amended (the "Investment Company Act").
2.
SALE AND
DELIVERY.
(a)
Subject to the terms and conditions herein set forth, the
Company
agrees to issue and sell to each of the Underwriters, and each of
the
Underwriters agrees, severally and not jointly, to purchase from
the Company,
the principal amount of the Notes set forth in Schedule I opposite
the name of
such Underwriter (plus an additional amount of Notes that such
Underwriter may
become obligated to purchase pursuant to the provisions of Section
8 hereof) at
a price equal to 98.656% of the principal amount thereof, plus
accrued interest,
if any, from February 6, 2007 to the Closing Date.
(b) The Notes to be purchased by each Underwriter hereunder will
be
represented by one or more registered global notes in book-entry
form which will
be deposited by or on behalf of the Company with The Depository
Trust Company
("DTC") or its designated custodian. The Company will deliver the
Notes to Banc
of America Securities LLC, acting on behalf of the Underwriters for
the account
of each Underwriter, against payment by or on behalf of such
Underwriter of the
amount therefor, as set forth above, by wire transfer of Federal
(same day)
funds to a commercial bank account located in the United States and
designated
in writing at least forty-eight hours prior to the Closing Date by
the Company
to Banc of America Securities LLC, by causing DTC
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to credit the Notes to the account of Banc of America Securities
LLC, at DTC.
The Company will cause the global certificates representing the
Notes to be made
available to Banc of America Securities LLC, Deutsche Bank
Securities Inc. and
J.P. Morgan Securities Inc., as joint-book running managing
underwriters
(together, the "REPRESENTATIVES"), acting on behalf of the
Underwriters, for
checking at least twenty-four hours prior to the Closing Date at
the office of
DTC or its designated custodian (the "DESIGNATED OFFICE"). The time
and date of
such delivery and payment shall be 9:30 a.m., New York City time,
on February 6,
2007 or such other time and date as the Representatives and the
Company may
agree upon in writing. Such time and date are herein called the
"CLOSING DATE."
(c) The documents to be delivered on the Closing Date by or on
behalf
of the parties hereto pursuant to Section 6 hereof, including the
cross-receipt
for the Notes and any additional certificates requested by the
Underwriters
pursuant to Section 6(h) hereof, will be delivered at such time and
date at the
offices of Baker Botts L.L.P., One Shell Plaza, 910 Louisiana,
Houston, Texas
77002-4995 or such other location as the Representatives and the
Company may
agree in writing (the "CLOSING LOCATION"), and the Notes will be
delivered at
the Designated Office, all on the Closing Date. A meeting will be
held at the
Closing Location at 1:00 p.m., New York City time or at such other
time as the
Representatives and the Company may agree in writing, on the New
York Business
Day next preceding the Closing Date, at which meeting the final
drafts of the
documents to be delivered pursuant to the preceding sentence will
be available
for review by the parties hereto. For the purposes of this Section
2, "NEW YORK
BUSINESS DAY" shall mean each Monday, Tuesday, Wednesday, Thursday
and Friday
which is not a day on which banking institutions in New York are
generally
authorized or obligated by law or executive order to close.
3.
FREE WRITING
PROSPECTUSES.
(a) The Company represents and agrees that, without the prior
consent
of the Representatives, it has not made and will not make any offer
relating to
the Notes that would constitute a "free writing prospectus" as
defined in Rule
405 under the 1933 Act, other than a Permitted Free Writing
Prospectus; each
Underwriter, severally and not jointly, represents and agrees that,
without the
prior consent of the Company and the Representatives, it has not
made and will
not make any offer relating to the Notes that would constitute a
"free writing
prospectus" as defined in Rule 405 under the 1933 Act, other than a
Permitted
Free Writing Prospectus or a free writing prospectus that is not
required to be
filed by the Company pursuant to Rule 433; any such free writing
prospectus
(which shall include the pricing term sheet discussed in Section
3(b) hereof),
the use of which has been consented to by the Company and the
Representatives,
is listed on Schedule III and herein called a "PERMITTED FREE
WRITING
PROSPECTUS."
(b) The Company agrees to prepare a term sheet specifying the terms
of
the Notes not contained in the Preliminary Prospectus,
substantially in the form
of Schedule II hereto and approved by the Representatives, and to
file such
pricing term sheet pursuant to Rule 433(d) under the 1933 Act
within the time
period prescribed by such Rule.
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(c) The Company and the Representatives have complied and will
comply
with the requirements of Rule 433 under the 1933 Act applicable to
any free
writing prospectus, including timely Commission filing where
required and
legending.
(d) The Company agrees that if at any time following issuance of
a
Permitted Free Writing Prospectus any event occurred or occurs as a
result of
which such Permitted Free Writing Prospectus would conflict with
the information
in the Registration Statement, the Preliminary Prospectus or the
Prospectus or
the Pricing Disclosure Package would include an untrue statement of
a material
fact or omit to state any material fact necessary in order to make
the
statements therein, in light of the circumstances then prevailing,
not
misleading, the Company will give prompt notice thereof to the
Representatives
and, if requested by the Representatives, will prepare and furnish
without
charge to each Underwriter a free writing prospectus or other
document, the use
of which has been consented to by the Representatives, which will
correct such
conflict, statement or omission; provided, however, that this
representation and
warranty shall not apply to any statements or omissions in the
Pricing
Disclosure Package made in reliance upon and in conformity with
information
furnished in writing to the Company by an Underwriter through
the
Representatives, expressly for use therein.
4.
COVENANTS AND
AGREEMENTS.
The Company covenants and agrees with each of the Underwriters:
(a) That the Company will furnish without charge to the
Underwriters a
copy of the Registration Statement, including all documents
incorporated by
reference therein and exhibits filed with the Registration
Statement (other than
exhibits which are incorporated by reference and have previously
been so
furnished), and, during the period mentioned in paragraph (c)
below, as many
written and electronic copies of the Preliminary Prospectus, the
Pricing
Disclosure Package and the Prospectus, any documents incorporated
by reference
therein at or after the date thereof (including documents from
which information
has been so incorporated) and any supplements and amendments
thereto as each
Underwriter may reasonably request;
(b) That the Company will cause the Preliminary Prospectus and
the
Prospectus to be filed pursuant to, and in compliance with, Rule
424(b) and will
promptly advise the Underwriters (i) when any amendment to the
Registration
Statement shall have been filed; provided, that, with respect to
documents filed
pursuant to the 1934 Act and incorporated by reference into the
Registration
Statement, such notice shall only be required during such time as
the
Underwriters are required in the reasonable opinion of the
Representatives,
based on advice of Dewey Ballantine LLP, counsel for the
Underwriters, to
deliver a prospectus (or in lieu thereof, the notice referred to in
Rule 173(a)
under the 1933 Act), (ii) of any request by the Commission for any
amendment of
the Registration Statement, (iii) of the issuance by the Commission
of any stop
order suspending the effectiveness of the Registration Statement or
the
institution or threatening of any proceeding for that purpose or
pursuant to
Section 8A of the 1933 Act against the Company or related to the
offering, and
(iv) of the receipt by the Company of any notification with respect
to the
suspension of the qualification of the Notes for sale in
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any jurisdiction or the initiation or threatening of any proceeding
for such
purpose. So long as any Underwriter is required in the reasonable
opinion of the
Representatives, based on advice of Dewey Ballantine LLP, to
deliver a
prospectus (or in lieu thereof, the notice referred to in Rule
173(a) under the
1933 Act), the Company will not file any amendment to the
Registration Statement
or supplement to the Preliminary Prospectus or the Prospectus to
which the
Representatives or Dewey Ballantine LLP shall have reasonably
objected in
writing and the Company shall furnish one copy of every such
amendment or
supplement to each of the Representatives and to Dewey Ballantine
LLP. If the
Commission shall issue a stop order suspending the effectiveness of
the
Registration Statement, the Company will take such steps to obtain
the lifting
of that order as promptly as practical;
(c) That if, at any time when in the reasonable opinion of the
Representatives, based on advice of Dewey Ballantine LLP, the
information in the
Pricing Disclosure Package or the Prospectus (or in lieu thereof,
the notice
referred to in Rule 173(a) under the 1933 Act) is required by law
to be
delivered by an Underwriter or a dealer, any event shall occur as a
result of
which it is necessary, in the reasonable opinion of the
Representatives, based
on advice of Dewey Ballantine LLP, or counsel for the Company, to
amend or
supplement the Pricing Disclosure Package or the Prospectus or
modify the
information incorporated by reference therein in order to make the
statements
therein, in light of the circumstances existing when the
information in the
Pricing Disclosure Package or the Prospectus (or in lieu thereof,
the notice
referred to in Rule 173(a) under the 1933 Act) is delivered to a
purchaser, not
misleading, or if it shall be necessary in the reasonable opinion
of any such
counsel, to amend or supplement the Pricing Disclosure Package or
the Prospectus
or modify such information to comply with law, the Company will
forthwith (i)
prepare and furnish, at its own expense, to the Underwriters and to
the dealers
(whose names and addresses the Underwriters will furnish to the
Company) to whom
Notes may have been sold by the Underwriters and to any other
dealers upon
reasonable request, either amendments or supplements to the Pricing
Disclosure
Package or the Prospectus or (ii) file with the Commission
documents
incorporated by reference in the Pricing Disclosure Package and
Prospectus,
which shall be so supplied to the Underwriters and such dealers, in
either case
so that the statements in the Pricing Disclosure Package or the
Prospectus as so
amended, supplemented or modified will not, in light of the
circumstances when
the information in the Pricing Disclosure Package or the Prospectus
(or in lieu
thereof, the notice referred to in Rule 173(a) under the 1933 Act)
is delivered
to a purchaser, be misleading or so that the Pricing Disclosure
Package and the
Prospectus will comply with law;
(d) That the Company will endeavor to qualify, at its expense,
the
Notes for offer and sale under the securities or Blue Sky laws of
such
jurisdictions as the Underwriters shall reasonably request and to
pay all filing
fees, reasonable expenses and legal fees in connection therewith
and in
connection with the determination of the eligibility for investment
of the
Notes; provided, that the Company shall not be required to qualify
as a foreign
corporation or a dealer in securities or to file any consents to
service of
process under the laws of any jurisdiction;
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(e) That the Company will make generally available to its
security
holders and the holders of the Notes as soon as practicable an
earnings
statement of the Company covering a twelve-month period beginning
after the
Closing Date which shall satisfy the provisions of Section 11(a) of
the 1933 Act
and the rules and regulations of the Commission thereunder
(including Rule 158
under the 1933 Act); and
(f) That during the period beginning on the date of this Agreement
and
continuing to and including the Closing Date, the Company will not
offer, sell,
contract to sell or otherwise distribute any notes, any security
convertible
into or exchangeable into or exercisable for notes or any other
debt securities
substantially similar to the Notes (except for the Notes issued
pursuant to this
Agreement), without the prior written consent of the
Underwriters.
5.
EXPENSES.
The Company covenants and agrees with the several Underwriters
that
the Company will pay or cause to be paid the following: (i) all
expenses in
connection with the preparation, printing and filing of the
Registration
Statement as originally filed and of each amendment thereto; (ii)
the fees,
disbursements and expenses of the Company's counsel and accountants
in
co