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Exhibit 1.1
$65,000,000
AirTran Holdings,
Inc.
5.500% Convertible Senior
Notes due 2015
UNDERWRITING
AGREEMENT
April 24, 2008
April 24,
2008
Morgan Stanley & Co.
Incorporated
Credit Suisse Securities (USA)
LLC
c/o Morgan Stanley & Co.
Incorporated
1585 Broadway
New York, New York 10036
Dear Sirs and Mesdames:
AirTran Holdings, Inc., a
Nevada corporation (the “ Company ”), proposes
to issue and sell to the several underwriters named in Schedule I
hereto (the “ Underwriters ”), for whom you are
acting as managers (the “ Managers ”), the
principal amount of its debt securities identified in Schedule II
hereto (the “ Securities ”), to be issued under
the indenture specified in Schedule II hereto (the “
Indenture ”) between the Company and the Trustee
identified in such Schedule (the “ Trustee ”).
If the firm or firms listed in Schedule I hereto include only the
Managers listed in Schedule II hereto, then the terms
“Underwriters” and “Managers” as used
herein shall each be deemed to refer to such firm or firms. The
Securities will be convertible into shares of common stock of the
Company, par value $0.001 per share (the “ Underlying
Securities ”).
The Company has filed with
the Securities and Exchange Commission (the “
Commission ”) a registration statement, including a
prospectus on Form S-3 (File No. 333-127590), relating to the
Securities and the Underlying Securities, to be issued from time to
time by the Company. The registration statement as amended to the
date of this Agreement is hereinafter referred to as the “
Registration Statement ,” and the related prospectus
dated August 31, 2005 covering the Securities, is hereinafter
referred to as the “ Base Prospectus .” The Base
Prospectus, as supplemented by the prospectus supplement
specifically relating to the Securities in the form first used to
confirm sales of the Securities (or in the form first made
available to the Underwriter by the Company to meet requests of
Purchasers pursuant to Rule 173 under the Securities Act of 1933,
as amended (the “ Securities Act ”) is
hereinafter referred to as the “ Prospectus ,”
and the term “ preliminary prospectus ” means
the Base Prospectus, as supplemented by the Preliminary Prospectus
Supplement dated April 22, 2008.
For purposes of this
Agreement, “ free writing prospectus ” has the
meaning set forth in Rule 405 under the Securities Act, “
Time of Sale Prospectus ” means the preliminary
prospectus together with the free writing prospectuses, if any,
each identified in Schedule II hereto, and “ broadly
available
road show ” means a
“bona fide electronic road show” as defined in Rule
433(h)(5) under the Securities Act that has been made available
without restriction to any person. As used herein, the terms
“Base Prospectus”, “Prospectus”,
“Registration Statement,” “preliminary
prospectus,” and “Time of Sale Prospectus” shall
include in each case the documents, if any, incorporated by
reference therein. The terms “ supplement ,”
“ amendment ,” and “ amend ”
as used in this Agreement with respect to the Registration
Statement, the Base Prospectus, the Time of Sale Prospectus, the
preliminary prospectus or any free writing prospectus shall include
all documents subsequently filed by the Company with the Commission
pursuant to the Securities Exchange Act of 1934, as amended (the
“ Exchange Act ”), that are incorporated by
reference therein.
1. Representations and
Warranties . The Company represents and warrants to and agrees
with each of the Underwriters that:
(a) The Registration
Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect, and no
proceedings for such purpose are pending before or threatened by
the Commission.
(b) Each document, if any,
filed or to be filed pursuant to the Exchange Act and incorporated
by reference in the Prospectus complied or will comply when so
filed in all material respects with the Exchange Act and the
applicable rules and regulations of the Commission thereunder,
(i) the Registration Statement, when it became effective, did
not contain and, as amended or supplemented, if applicable, will
not contain any 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, (ii) the
Registration Statement, the preliminary prospectus and the
Prospectus comply and, as amended or supplemented, if applicable,
will comply in all material respects with the Securities Act and
the applicable rules and regulations of the Commission thereunder,
(iii) the Time of Sale Prospectus does not, and at the time of
each sale of the Securities in connection with the offering at or
prior to the Closing Date (as defined in Section 4), the Time
of Sale Prospectus, as then amended or supplemented by the Company,
if applicable, will not, contain any untrue statement of a material
fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which
they were made, not misleading, (iv) each broadly available
road show, if any, when considered together with the Time of Sale
Prospectus, does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which
they were made, not misleading and (v) the Prospectus does not
contain and, as amended or supplemented, if applicable, will not
contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading, except that
the representations and
warranties set forth in this paragraph do not apply to statements
or omissions in the Registration Statement, the Time of Sale
Prospectus, or the Prospectus based upon information relating to
any Underwriter furnished to the Company in writing by such
Underwriter through you expressly for use therein.
(c) The Company is a well
known seasoned issuer (as defined in Rule 405 under the Securities
Act) and is not an “ineligible issuer” in connection
with the offering pursuant to Rules 164, 405 and 433 under the
Securities Act. Any free writing prospectus that the Company is
required to file pursuant to Rule 433(d) under the Securities Act
has been, or will be, filed with the Commission in accordance with
the requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder. Each free writing
prospectus that the Company has filed, or is required to file,
pursuant to Rule 433(d) under the Securities Act or that was
prepared by or on behalf of or used or referred to by the Company
complies or will comply in all material respects with the
requirements of the Securities Act and the applicable rules and
regulations of the Commission thereunder. Except for the free
writing prospectuses, if any, identified in Schedule II hereto, and
electronic road shows, if any, furnished to you before first use,
the Company has not prepared, used or referred to, and will not,
without your prior consent, prepare, use or refer to, any free
writing prospectus.
(d) The Company has been duly
incorporated, is validly existing as a corporation in good standing
under the laws of the jurisdiction of its incorporation, has the
corporate power and authority to own its property and to conduct
its business as described in the Time of Sale Prospectus and is
duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership
or leasing of property requires such qualification, except to the
extent that the failure to be so qualified or be in good standing
would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole.
(e) AirTran Airways, Inc. is
the only “significant subsidiary” of the Company within
the meaning of Regulation S-X. Each subsidiary of the Company,
including without limitation AirTran Airways, Inc., has been duly
incorporated, is validly existing as a corporation in good standing
under the laws of the jurisdiction of its incorporation, has the
corporate power and authority to own its property and to conduct
its business as described in the Prospectus and is duly qualified
to transact business and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of
property requires such qualification, except to the extent that the
failure to be so qualified or be in good standing would not have a
material adverse effect on the Company and its subsidiaries, taken
as a whole; all of the issued shares of capital
stock of each subsidiary of
the Company have been duly and validly authorized and issued, are
fully paid and non-assessable and are owned directly by the
Company, free and clear of all liens, encumbrances, equities or
claims.
(f) This Agreement has been
duly authorized, executed and delivered by the Company.
(g) The authorized capital
stock of the Company conforms in all material respects to the
description thereof contained in each of the Time of Sale
Prospectus and the Prospectus.
(h) The shares of Common
Stock outstanding prior to the issuance of the Securities have been
duly authorized and are validly issued, fully paid and
non-assessable.
(i) The Securities have been
duly authorized and, when executed and authenticated in accordance
with the provisions of the Indenture and delivered to and paid for
by the Underwriters in accordance with the terms of this Agreement,
will be valid and binding obligations of the Company, enforceable
in accordance with their terms, subject to applicable bankruptcy,
insolvency and similar laws affecting creditors’ rights
generally and equitable principles of general applicability, and
will be entitled to the benefits of the Indenture pursuant to which
such Securities are to be issued.
(j) The Underlying Securities
issuable upon conversion of the Securities have been duly
authorized and reserved and, when issued upon conversion of the
Securities in accordance with the terms of the Securities, will be
validly issued, fully paid and non-assessable, and the issuance of
the Underlying Securities will not be subject to any preemptive or
similar rights.
(k) The Indenture has been
duly authorized, executed and delivered by, and is a valid and
binding agreement of, the Company, enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally and equitable
principles of general applicability.
(l) The Pledge and Escrow
Agreement by and among the Company, the Trustee and the Escrow
Agent, identified in Schedule II hereto, to be dated as of the
Closing Time (the “ Pledge and Escrow Agreement
”) has been duly authorized, executed and delivered by, and
is a valid and binding agreement of, the Company, enforceable in
accordance with its terms, subject to applicable bankruptcy,
insolvency and similar laws affecting creditors’ rights
generally and equitable principles of general
applicability.
(m) The execution and
delivery by the Company of, and the performance by the Company of
its obligations under, this Agreement, the Indenture, the Pledge
and Escrow Agreement and the Securities will not contravene any
provision of applicable law or the certificate of incorporation or
by-laws of the Company or any agreement or other instrument binding
upon the Company or any of its subsidiaries that is material to the
Company and its subsidiaries, taken as a whole, or any judgment,
order or decree of any governmental body, agency or court having
jurisdiction over the Company or any subsidiary, and no consent,
approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by the
Company of its obligations under this Agreement, the Indenture, the
Pledge and Escrow Agreement or the Securities, except such as may
be required by the securities or Blue Sky laws of the various
states in connection with the offer and sale of the
Securities.
(n) There has not occurred
any material adverse change, or any development involving a
prospective material adverse change, in the condition, financial or
otherwise, or in the earnings, business or operations of the
Company and its subsidiaries, taken as a whole, from that set forth
in the Time of Sale Prospectus (exclusive of any amendments or
supplements thereto subsequent to the date of this
Agreement).
(o) There are no legal or
governmental proceedings pending or, to the knowledge of the
Company, threatened to which the Company or any of its subsidiaries
is a party or to which any of the properties of the Company or any
of its subsidiaries is subject that are required to be described in
the Registration Statement or the Prospectus and are not so
described or any statutes, regulations, contracts or other
documents that are required to be described in the Registration
Statement or the Prospectus or to be filed as exhibits to the
Registration Statement that are not described or filed as required.
The Time of Sale Prospectus contains in all material respects the
same description of the foregoing matters contained in the
Prospectus.
(p) The preliminary
prospectus filed as part of the registration statement as
originally filed or as part of any amendment thereto, or filed
pursuant to Rule 424 under the Securities Act, complied when so
filed in all material respects with the Securities Act and the
applicable rules and regulations of the Commission
thereunder.
(q) 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 in the
Prospectus will not be, required to register as an
“investment company” as such term is defined in the
Investment Company Act of 1940, as amended.
(r) The Company and its
subsidiaries (i) are 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 all permits, licenses or other approvals required of them
under applicable Environmental Laws to conduct their respective
businesses and (iii) are in compliance with all terms and
conditions of any such permit, license or approval, except where
such noncompliance with Environmental Laws, failure to receive
required permits, licenses or other approvals or failure to comply
with the terms and conditions of such permits, licenses or
approvals would not, singly or in the aggregate, have a material
adverse effect on the Company and its subsidiaries, taken as a
whole.
(s) There are no costs or
liabilities associated with Environmental Laws (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) which would, singly or in the aggregate, have a material
adverse effect on the Company and its subsidiaries, taken as a
whole.
(t) There are no contracts,
agreements or understandings between the Company and any person
granting such person the right to require the Company to file a
registration statement under the Securities Act with respect to any
securities of the Company, or to require the Company to include
such securities with the Securities registered pursuant to the
Registration Statement.
(u) The Company and its
subsidiaries possess such permits, licenses, approvals, consents
and other authorizations (collectively “Governmental
Licenses”) issued by the appropriate federal, state, local or
foreign regulatory agencies or bodies, including the Department of
Transportation and the Federal Aviation Administration, necessary
to conduct the business now operated by it and its subsidiaries,
except where failure to possess any such governmental license would
not, singly or in the aggregate, have a material adverse effect on
the Company; (ii) the Company and its subsidiaries are in
compliance with the terms and conditions of all such Governmental
Licenses, except where the failure so to comply would not, singly
or in the aggregate, have a material adverse effect on the Company;
(iii) all of the Government Licenses are valid and in full
force, except when the invalidity of such Governmental Licenses or
the failure of such Governmental Licenses to be in full force and
effect would not have a material adverse effect on the Company and
its subsidiaries taken as a whole; and (iv) the Company and
its subsidiaries have not received any notice of proceedings
relating to the revocation or modification of any such Governmental
Licenses which, singly or in the
aggregate, is reasonably
likely to have a material adverse effect on the Company.
(v) AirTran Airways, Inc.
(i) is an “air carrier” within the meaning of 49
U.S.C. Section 40102(a); (ii) holds an air carrier
operating certificate issued by the Secretary of Transportation
pursuant to Chapter 447 of Title 49 of the United States Code for
aircraft capable of carrying 10 or more individuals or 6,000 pounds
or more of cargo; and (iii) is a “citizen of the United
States” as defined in 49 U.S.C.
Section 401102.
(w) The Company and its
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.
(x) Neither the Company nor
any of its subsidiaries or affiliates, nor, to the best of the
Company’s knowledge, any director, officer, employee, agent
or representative of the Company or of any of its subsidiaries or
affiliates, has taken or will take any action in furtherance of an
offer, payment, promise to pay, or authorization or approval of the
payment or giving of money, property, gifts or anything else of
value, directly or indirectly, to any “government
official” (including any officer or employee of a government
or government-owned or controlled entity or of a public
international organization, or any person acting in an official
capacity for or on behalf of any of the foregoing, or any political
party or party official or candidate for political office) to
influence official action or secure an improper advantage; and, to
the best of the Company’s knowledge, the Company and its
subsidiaries and affiliates have conducted their businesses in
compliance with applicable anti-corruption laws and have instituted
and maintain and will continue to maintain policies and procedures
designed to promote and achieve compliance with such laws and with
the representation and warranty contained herein.
(y) To the best of the
Company’s knowledge, the operations of the Company and its
subsidiaries are and have been conducted in material compliance
with (i) applicable financial recordkeeping and reporting
requirements, including those of the Bank Secrecy Act, as amended
by Title III of the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001 (USA PATRIOT Act), and (ii) applicable anti-money
laundering statutes of jurisdictions where the Company and its
subsidiaries conduct
business, the rules and
regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “ Anti-Money
Laundering Laws ”). 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 Anti-Money Laundering Laws is pending or, to the
best knowledge of the Company, threatened.
(z) (i) The Company
represents that neither the Company nor any of its subsidiaries
(collectively, the “ Entity ”) or, to the
knowledge of the Entity, any director, officer, employee, agent,
affiliate or representative of the Entity, is an individual or
entity (“ Person ”) that is, or is owned or
controlled by a Person that is:
(A) the subject of any
sanctions administered or enforced by the U.S. Department of
Treasury’s Office of Foreign Assets Control (“
OFAC ”), the United Nations Security Council (“
UNSC ”), the European Union (“ EU
”), Her Majesty’s Treasury (“ HMT
”), or other relevant sanctions authority (collectively,
“ Sanctions ”), nor
(B) located, organized or
resident in a country or territory that is the subject of Sanctions
(including, without limitation, Burma/Myanmar, Cuba, Iran, North
Korea, Sudan and Syria).
(ii) The Entity represents
and covenants that it 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:
(A) to fund or facilitate any
activities or business of or with any Person or in any country or
territory that, at the time of such funding or facilitation, is the
subject of Sanctions; or
(B) in any other manner that
will result in a violation of Sanctions by any Person (including
any Person participating in the offering, whether as underwriter,
advisor, investor or otherwise).
(iii) The Entity represents
and covenants that for the past 5 years, it has not knowingly
engaged in, is not now knowingly engaged in, and will not engage
in, any dealings or transactions with any Person, or in any country
or territory, that at the time of the dealing or transaction is or
was the subject of Sanctions.
2. Agreements to Sell and
Purchase. The Company hereby agrees to sell to the several
Underwriters, and each Underwriter, upon the basis of the
representations and warranties herein contained, but subject to the
conditions
hereinafter stated, agrees, severally
and not jointly, to purchase from the Company the respective
principal amounts of Firm Securities (as defined in Schedule II)
set forth in Schedule I hereto opposite its name at the
purchase price set forth in Schedule II hereto.
On the basis of the
representations and warranties contained in this Agreement, and
subject to its terms and conditions, the Company agrees to sell to
the Underwriters the Additional Securities (as defined in Schedule
II), and the Underwriters shall have the right to purchase,
severally and not jointly, up to the aggregate principal amount of
Additional Securities set forth in Schedule I hereto at the
Purchase Price. You may exercise this right on behalf of the
Underwriters in whole or from time to time in part by giving
written notice not later than 30 days after the date of the
Prospectus. Any exercise notice shall specify the aggregate
principal amount of Additional Securities to be purchased by the
Underwriters and the date on which such Securities are to be
purchased. Each purchase date must be at least one business day, if
written notice is given prior to the closing date for the Firm
Securities, or two business days, if written notice is given on or
after the closing date for the Firm Securities, in each case, after
the written notice is given and may not be earlier than the closing
date for the Firm Securities nor later than ten business days after
the date of such notice. Additional Securities may be purchased as
provided in Section 2 hereof solely for the purpose of
covering over-allotments made in connection with the offering of
the Firm Securities. On each day, if any, that Additional
Securities are to be purchased (an “ Option Closing
Date ”), each Underwriter agrees, severally and not
jointly, to purchase the principal amount of Additional Securities
(subject to such adjustments to eliminate fractional Securities as
you may determine) that bears the same proportion to the total
aggregate principal amount of Additional Securities to be purchased
on such Option Closing Date as the principal amount of Firm
Securities set forth in Schedule I hereto opposite the name of
such Underwriter bears to the total aggregate principal amount of
Firm Securities.
The Company hereby agrees
that, without the prior written consent of Morgan
Stanley & Co. Incorporated and Credit Suisse Securities
(USA) LLC on behalf of the Underwriters, it will not, during the
period ending 90 days after the date of the Prospectus,
(i) offer, pledge, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, lend, or otherwise
transfer or dispose of, directly or indirectly, any shares of
Common Stock or any securities convertible into or exercisable or
exchangeable for shares of Common Stock or (ii) enter into any
swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of shares of
Common Stock, whether any such transaction described in clause
(i) or (ii) above is to be settled by delivery of shares
of Common Stock or such other securities, in cash or otherwise or
(iii) file any registration statement with the Commission
relating to the offering of any shares of Common Stock or any
securities convertible into or exercisable or exchangeable for
shares of Common Stock. The foregoing sentence shall not
apply to (A) the Securities to be
sold hereunder or (B) the issuance by the Company of shares of
Common Stock upon the exercise of an option or warrant or the
conversion of a security outstanding on the date hereof of which
the Underwriters have been advised in writing.
3. Terms of Public
Offering . The Company is advised by you that the Underwriters
propose to make a public offering of their respective portions of
the Securities as soon after the Registration Statement and this
Agreement have become effective as in your judgment is advisable.
The Company is further advised by you that the Securities are to be
offered to the public upon the terms set forth in the
Prospectus.
4. Payment and
Delivery. Payment for the Securities shall be made to the
Company in Federal or other funds immediately available in New York
City on the closing date and time set forth in Schedule II
hereto, or at such other time on the same or such other date, not
later than the fifth business day thereafter, as may be designated
in writing by you. The time and date of such payment are
hereinafter referred to as the “ Closing Date
.”
Payment for the Securities
shall be made against delivery to you on the Closing Date for the
respective accounts of the several Underwriters of the Securities
registered in such names and in such denominations as you shall
request in writing not later than one full business day prior to
the Closing Date, with any transfer taxes payable in connection
with the transfer of the Securities to the Underwriters duly
paid.
5. Conditions to the
Underwriters’ Obligations. The obligations of the Company
to sell the Securities to the Underwriters and the several
obligations of the Underwriters to purchase and pay for the
Securities on the Closing Date are subject to the following
conditions:
(a) Subsequent to the
execution and delivery of this Agreement and prior to the Closing
Date:
(i) there shall not have
occurred any downgrading, nor shall any notice have been given of
any intended or potential downgrading or of any review for a
possible change that does not indicate the direction of the
possible change, in the rating accorded any of the Company’s
securities by any “nationally recognized statistical rating
organization,” as such term is defined for purposes of Rule
436(g)(2) under the Securities Act; and
(ii) there shall not have
occurred any change, or any development involving a prospective
change, in the condition, financial or otherwise, or in the
earnings, business or operations of the Company and its
subsidiaries, taken as a whole, from that set forth in the Time of
Sale Prospectus (exclusive of any amendments
or supplements thereto
subsequent to the date of this Agreement) that, in your judgment,
is material and adverse and that makes it, in your judgment,
impracticable to market the Securities on the terms and in the
manner contemplated in the Time of Sale Prospectus.
(b) The Underwriters shall
have received on the Closing Date a certificate, dated the Closing
Date and signed by an executive officer of the Company, to the
effect set forth in Section 5(a)(i) above and to the effect
that the representations and warranties of the Company contained in
this Agreement are true and correct as of the Closing Date and that
the Company has complied with all of the agreements and satisfied
all of the conditions on its part to be performed or satisfied
hereunder on or before the Closing Date.
The officer signing and
delivering such certificate may rely upon the best of his or her
knowledge as to proceedings threatened.
(c) The Underwriters shall
have received on the Closing Date an opinion of (i) Smith,
Gambrell & Russell, LLP, outside counsel for the Company,
dated the Closing Date, to the effect set forth in Exhibit A-1 and
(ii) Richard P. Magurno, Senior Vice President and General
Counsel of the Company, dated the Closing Date, to the effect set
forth in Exhibit A-2. Each such opinion shall be rendered to the
Underwriters at the request of the Company and shall so state
therein.
(d) The Underwriters shall
have received on the Closing Date an opinion of Davis
Polk & Wardwell, counsel for the Underwriters, dated the
Closing Date, to the effect set forth in Exhibit B.
(e) The Underwriters shall
have received, on each of the date hereof and the Closing Date, a
letter dated the date hereof or the Closing Date, as the case may
be, in form and substance satisfactory to the Underwriters, from
Ernst & Young LLP, independent public accountants,
containing statements and information of the type ordinarily
included in accountants’ “comfort letters” to
underwriters with respect to the financial statements and certain
financial information contained in or incorporated by reference
into the Registration Statement, the Time of Sale Prospectus and
the Prospectus; provided that the letter delivered on the
Closing Date shall use a “cut-off date” not earlier
than the date hereof.
(f) The Company shall have
entered into a Pledge and Escrow Agreement with the Escrow Agent
and the Trustee in substantially the form of Exhibit C hereto,
which shall provide for the deposit by the Company into the Escrow
Account (as defined in the Pledge and Escrow Agreement) of an
amount of funds that the Underwriters have determined is sufficient
to make payments of the aggregate amount of the first six
semi-annual interest payments payable to the holders of the
Securities.
(g) The “lock-up”
agreements, each substantially in the form of Exhibit D hereto,
between you and certain shareholders, officers and directors of the
Company relating to sales and certain other dispositions of shares
of Common Stock or certain other securities, delivered to you on or
before the date hereof, shall be in full force and effect on the
Closing Date.
The several obligations of
the Underwriters to purchase Additional Securities hereunder are
subject to the delivery to you on the Option Closing Date of such
documents as you may reasonably request with respect to the good
standing of the Company, the due authorization and issuance of the
Additional Securities to be sold on such Option Closing Date and
other matters related to the issuance of such Additional
Securities.
6. Covenants of the
Company . In further consideration of the agreements of the
Underwriters herein contained, the Company covenants with each
Underwriter as follows:
(a) To furnish to you,
without charge, five signed copies of the Registration Statement
(including exhibits thereto and documents incorporated by
reference) and for delivery to each other Underwriter a conformed
copy of the Registration Statement (without exhibits thereto but
including documents incorporated by reference) and, to furnish to
you in New York City, without charge, prior to 10:00 a.m. New York
City time on the business day next succeeding the date of this
Agreement and during the period mentioned in paragraph
(f) below, as many copies of the Time of Sale Prospectus, the
Prospectus and any supplements and amendments thereto or to the
Registration Statement as you may reasonably request.
(b) Before amending or
supplementing the Registration Statement, the Time of Sale
Prospectus or the Prospectus, to furnish to you a copy of each such
proposed amendment or supplement and not to file any such proposed
amendment or supplement to which you reasonably object, and to file
with the Commission within the applicable period specified in Rule
424(b) under the Securities Act any prospectus required to be filed
pursuant to such Rule.
(c) To furnish to you a copy
of each proposed free writing prospectus prepared by or on behalf
of, used by, or referred to by the Company and not to use or refer
to any proposed free writing prospectus to which you reasonably
object.
(d) Not to take any action
that would result in the Underwriter or the Company being required
to file with the Commission pursuant to Rule 433(d) under the
Securities Act a free writing prospectus prepared by or on behalf
of the Underwriter that the Underwriter otherwise would not have
been required to file thereunder.
(e) If the Time of Sale
Prospectus is being used to solicit offers
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