Exhibit 1.1
Execution
Version
10,000,000 Shares
B&G
Foods, Inc.
Class A Common
Stock
UNDERWRITING
AGREEMENT
September 14, 2009
CREDIT SUISSE SECURITIES (USA) LLC
BARCLAYS CAPITAL INC.
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
As Representatives of the Several
Underwriters,
c/o Credit Suisse Securities (USA)
LLC,
Eleven Madison Avenue
New York, N.Y. 10010-3629
Ladies and Gentlemen:
1. Introductory
. B&G Foods, Inc., a Delaware corporation
(“ Company ”), agrees with the several
Underwriters named in Schedule A hereto (“
Underwriters ”) to issue and sell to the several
Underwriters 10,000,000 shares (“ Firm
Securities ”) of its Class A common stock, par value
$0.01 per share (“ Securities ”), and also
proposes to issue and sell to the Underwriters, at the option of
the Underwriters, an aggregate of not more than 1,500,000
additional shares (“ Optional Securities ”) of
its Securities as set forth below. The Firm Securities and the
Optional Securities are herein collectively called the “
Offered Securities .”
2. Representations and
Warranties of the Company . The Company represents and
warrants to, and agrees with, the several Underwriters
that:
(a) Filing and
Effectiveness of Registration Statement; Certain Defined Terms
. The Company has filed with the Commission a registration
statement on Form S-3 (No. 333-160425), including a
related prospectus or prospectuses, covering the registration of
the Offered Securities under the Act, which has become
effective. “ Registration Statement ” at
any particular time means such registration statement in the form
then filed with the Commission, including any amendment thereto,
any document incorporated by reference therein and all 430B
Information and all 430C Information with respect to such
registration statement, that in any case has not been superseded or
modified. “ Registration Statement ”
without reference to a time means the Registration Statement as of
the Effective Time, including any documents incorporated by
reference therein. For purposes of this definition, 430B
Information shall be considered to be included in the Registration
Statement as of the time specified in Rule 430B.
For purposes of this
Agreement:
“ 430B Information
” means information included in a prospectus then deemed to
be a part of the Registration Statement pursuant to
Rule 430B(e) or retroactively deemed to be a part of the
Registration Statement pursuant to Rule 430B(f).
“ 430C Information
” means information included in a prospectus then deemed to
be a part of the Registration Statement pursuant to
Rule 430C.
“ Act ” means the
Securities Act of 1933, as amended.
“ Applicable Time
” means 6:30 P.M. (Eastern time) on the date of this
Agreement.
“ Closing Date ”
has the meaning defined in Section 3 hereof.
“ Commission ”
means the Securities and Exchange Commission.
“ Effective Time
” of the Registration Statement relating to the Offered
Securities means the time of the first contract of sale for the
Offered Securities.
“ Exchange Act ”
means the Securities Exchange Act of 1934, as amended.
“ Final Prospectus
” means the Statutory Prospectus (including the Incorporated
Documents) that discloses the public offering price, other 430B
Information and other final terms of the Offered Securities, and
otherwise satisfies Section 10(a) of the Act.
“ General Use Issuer Free
Writing Prospectus ” means any Issuer Free Writing
Prospectus that is intended for general distribution to prospective
investors, as evidenced by its being so specified in Schedule B to
this Agreement.
“ Incorporated
Documents ” means any documents incorporated by reference
in the Registration Statement.
“ Issuer Free Writing
Prospectus ” means any “issuer free writing
prospectus,” as defined in Rule 433, relating to the
Offered Securities in the form filed or required to be filed with
the Commission or, if not required to be filed, in the form
retained in the Company’s records pursuant to
Rule 433(g).
“ Limited Use Issuer Free
Writing Prospectus ” means any Issuer Free Writing
Prospectus that is not a General Use Issuer Free Writing
Prospectus.
“ Rules and
Regulations ” means the rules and regulations of the
Commission.
“ Securities Laws
” means, collectively, the Sarbanes-Oxley Act of 2002
(“ Sarbanes-Oxley ”), the Act, the Exchange Act,
the Rules and Regulations, the auditing principles, rules,
standards and practices applicable to auditors of
“issuers” (as defined in Sarbanes-Oxley) promulgated or
approved by the Public Company Accounting Oversight Board and, as
applicable, the rules of the New York Stock Exchange (“
Exchange Rules ”).
“ Statutory Prospectus
” with reference to any particular time means the prospectus
relating to the Offered Securities that is included in the
Registration Statement immediately prior to that time, including
all 430B Information and all 430C Information with
respect to the Registration Statement. For purposes of the
foregoing definition, 430B Information shall be considered to
be included in the Statutory Prospectus only as of the actual time
that form of prospectus (including a prospectus supplement) is
filed with the Commission pursuant to Rule 424(b) and not
retroactively.
Unless otherwise specified, a
reference to a “rule” is to the indicated
rule under the Act.
(b) Compliance with
Securities Act Requirements . (i) (A) At the
time the Registration Statement initially became effective,
(B) at the time of each amendment thereto for the purposes of
complying with Section 10(a)(3) of the Act (whether by
post-effective amendment, incorporated report or form of
prospectus), (C) at the Effective Time relating to the Offered
Securities and (D) on the Closing Date, the Registration
Statement conformed and will conform, as applicable, in all
respects to the requirements of the Act and the Rules and
Regulations and did not include and will not include, as
applicable, any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary
to make the statements therein not misleading and
(ii) (A) on its date, (B) at the time of filing the
Final Prospectus pursuant to Rule 424(b) and (C) on
the Closing Date, the Final Prospectus will conform in all material
respects to the requirements of the Act and the Rules and
Regulations, and will not include any untrue statement of a
material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading. The preceding sentence does not apply to
statements in or omissions from any such document based upon
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 is that
described as such in Section 8(b) hereof.
(c) Shelf
Registration Statement . The date of this Agreement is
not more than three years subsequent to the more recent of the
initial effective time of the Registration Statement or
December 1, 2005. If,
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immediately prior to the third
anniversary of the more recent of the initial effective time of the
Registration Statement or December 1, 2005, any of the Offered
Securities remain unsold by the Underwriters, the Company will
prior to that third anniversary file, if it has not already done
so, a new shelf registration statement relating to the Offered
Securities, in a form reasonably satisfactory to the
Representatives, will use its best efforts to cause such
registration statement to be declared effective within 180 days
after that third anniversary, and will take all other action
necessary or appropriate to permit the public offering and sale of
the Offered Securities to continue as contemplated in the expired
registration statement relating to the Offered Securities.
References herein to the Registration Statement shall include such
new shelf registration statement.
(d) Ineligible Issuer
Status . (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 Offered Securities and (ii) at the
date of this Agreement, the Company was not and is not an
“ineligible issuer,” as defined in Rule 405,
including (x) the Company or any other subsidiary in the
preceding three years not having been convicted of a felony or
misdemeanor or having been made the subject of a judicial or
administrative decree or order as described in Rule 405 and
(y) the Company in the preceding three years not having been
the subject of a bankruptcy petition or insolvency or similar
proceeding, not having had a registration statement be the subject
of a proceeding under Section 8 of the Act and not being the
subject of a proceeding under Section 8A of the Act in
connection with the offering of the Securities, all as described in
Rule 405.
(e) Shelf
Registration Eligibility . The Company meets (i) the
eligibility criteria for use of Form S-3 under the Act and
(ii) the eligibility criteria for use of Form S-3 under
the Act as such criteria existed prior to October 21,
1992.
(f) General
Disclosure Package . As of the Applicable Time, neither
(i) the General Use Issuer Free Writing Prospectus(es) issued
at or prior to the Applicable Time, the preliminary prospectus
supplement, dated September 9, 2009, including the base
prospectus, dated July 2, 2009, (which is the most recent
Statutory Prospectus distributed to investors generally), and the
other information, if any, stated in Schedule B to this Agreement
to be included in the General Disclosure Package, all considered
together (collectively, the “ General Disclosure
Package ”), nor (ii) any individual Limited Use
Issuer Free Writing Prospectus, when considered together with the
General Disclosure Package, included any untrue statement of a
material fact or omitted 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. The
preceding sentence does not apply to statements in or omissions
from any Statutory Prospectus or any Issuer Free Writing Prospectus
in reliance 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 any
Underwriter consists of the information described as such in
Section 8(b) hereof.
(g) Issuer Free
Writing Prospectuses . Each Issuer Free Writing
Prospectus, as of its issue date and at all subsequent times
through the completion of the public offer and sale of the Offered
Securities or until any earlier date that the Company notified or
notifies Credit Suisse Securities (USA) LLC (“ Credit
Suisse ”), Barclays Capital Inc. (“ Barclays
”) and Merrill Lynch, Pierce, Fenner & Smith
Incorporated (together with Credit Suisse and Barclays, the
“ Representatives ”) as described in the next
sentence, did not, does not and will not include any information
that conflicted, conflicts or will conflict with the information
then contained in the Registration Statement. If at any time
following issuance of an Issuer Free Writing Prospectus there
occurred or occurs an event or development as a result of which
such Issuer Free Writing Prospectus conflicted or would conflict
with the information then contained in the Registration Statement
or as a result of which such Issuer Free Writing Prospectus, if
republished immediately following such event or development, would
include an untrue statement of a material fact or omitted or would
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, (i) the Company has promptly
notified or will promptly notify the Representatives and
(ii) the Company has promptly amended or will promptly amend
or supplement such Issuer Free Writing Prospectus to eliminate or
correct such conflict, untrue statement or omission. The
first sentence of this clause (g) does not apply to statements
in or omissions
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from any Issuer Free Writing
Prospectus in reliance 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 any
Underwriter consists of the information described as such in
Section 8(b) hereof.
(h) Good Standing of
the Company . The Company has been duly incorporated and
is existing and 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 General Disclosure
Package; and the Company is duly qualified to do business as a
foreign corporation in good standing in all other jurisdictions in
which its ownership or lease of property or the conduct of its
business requires such qualification, except where the failure to
be so qualified would not, individually or in the aggregate, result
in a material adverse effect on the condition (financial or
otherwise), results of operations, business or properties of the
Company and its subsidiaries taken as a whole (“ Material
Adverse Effect ”).
(i) Subsidiaries
. Each subsidiary of the Company has been duly incorporated
or organized and is existing and in good standing under the laws of
the jurisdiction of its incorporation or organization, with
corporate or business trust power and authority, as applicable, to
own its properties and conduct its business as described in the
General Disclosure Package; and each subsidiary of the Company is
duly qualified to do business as a foreign corporation in good
standing in all other jurisdictions in which its ownership or lease
of property or the conduct of its business requires such
qualification, except where the failure to be so qualified would
not, individually or in the aggregate, result in a Material Adverse
Effect; all of the issued and outstanding capital stock of each
subsidiary of the Company has been duly authorized and validly
issued and is fully paid and nonassessable; and, except as
discussed in the General Disclosure Package under the heading
“Management’s Discussion and Analysis of Financial
Condition and Results of Operation—Liquidity and Capital
Resources”, the capital stock of each subsidiary owned by the
Company, directly or through subsidiaries, is owned free from
liens, encumbrances and defects.
(j) Offered
Securities . The Offered Securities and all other
outstanding shares of capital stock of the Company have been duly
authorized; the authorized equity capitalization of the Company is
as set forth in the General Disclosure Package; all outstanding
shares of capital stock of the Company are, and, when the Offered
Securities have been delivered and paid for in accordance with this
Agreement on each Closing Date, such Offered Securities will have
been, validly issued, fully paid and nonassessable and will conform
in all material respects to the information in the General
Disclosure Package and to the description of such Offered
Securities contained in the Final Prospectus; the stockholders of
the Company have no preemptive rights with respect to the
Securities; and none of the outstanding shares of capital stock of
the Company have been issued in violation of any preemptive or
similar rights of any security holder.
(k) No Finder’s
Fee . There are no contracts, agreements or
understandings between the Company and any person that would give
rise to a valid claim against the Company or any Underwriter for a
brokerage commission, finder’s fee or other like payment in
connection with this offering.
(l) Registration
Rights . Except as disclosed in the General Disclosure
Package, 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
Act with respect to any securities of the Company owned or to be
owned by such person or to require the Company to include such
securities in the securities registered pursuant to a Registration
Statement or in any securities being registered pursuant to any
other registration statement filed by the Company under the Act
(collectively, “ registration rights ”), and any
person to whom the Company has granted registration rights has
agreed not to exercise such rights until after the expiration of
the Lock-Up Period referred to in Section 5 hereof.
(m) Listing
. The Offered Securities have been approved for listing on
the New York Stock Exchange, subject to notice of
issuance.
(n) Absence of
Further Requirements . No consent, approval,
authorization, or order of, or filing or registration with, any
person (including any governmental agency or body or any court) is
required for the
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consummation of the transactions
contemplated by this Agreement in connection with the offering,
issuance and sale of the Offered Securities by the Company, except
(i) such as have been obtained or made, (ii) such as may
be required under state securities laws and (iii) such as may
be required by the Financial Industry Regulatory
Authority.
(o) Title to
Property . Except as disclosed in the General Disclosure
Package, the Company and its subsidiaries have good and marketable
title to all real properties and good and valid title to all other
properties and assets owned by them, in each case free from liens,
charges, encumbrances and defects that would, individually or in
the aggregate, result in a Material Adverse Effect, and, except as
disclosed in the General Disclosure Package, the Company and its
subsidiaries hold any leased real or personal property under valid
and enforceable leases with no terms or provisions that would,
individually or in the aggregate, have a Material Adverse
Effect.
(p) Absence of
Defaults and Conflicts Resulting from Transaction . The
execution, delivery and performance of this Agreement and the
issuance and sale of the Offered Securities will not result in a
breach or violation of any of the terms and provisions of, or
constitute a default or a Debt Repayment Triggering Event (as
defined below) under, or result in the imposition of any lien,
charge or encumbrance upon any property or assets of the Company or
any of its subsidiaries pursuant to, (i) the charter or
by-laws of the Company or any of its subsidiaries, (ii) any
law, statute or ordinance, or any rule, regulation, injunction or
order of any governmental agency, including without limitation, the
United States Food and Drug Administration (the “ FDA
”), or body or any court, domestic or foreign, having
jurisdiction over the Company or any of its subsidiaries or any of
their properties, or (iii) any agreement or instrument to
which the Company or any of its subsidiaries is a party or by which
the Company or any of its subsidiaries is bound or to which any of
the properties of the Company or any of its subsidiaries is
subject, except, in the case of clauses (ii) or
(iii) only, as would not, individually or in the aggregate,
result in a Material Adverse Effect; a “ Debt Repayment
Triggering Event ” means any event or condition that
gives, or with the giving of notice or lapse of time would give,
the holder of any note, debenture, or other evidence of
indebtedness (or any person acting on such holder’s behalf)
the right to require the repurchase, redemption or repayment of all
or a portion of such indebtedness by the Company or any of its
subsidiaries.
(q) Absence of
Existing Defaults and Conflicts . Neither the Company nor
any of its subsidiaries is in violation of its respective charter,
by-laws, or any law, statute or ordinance, or any rule, regulation,
injunction or order of any governmental agency, including, without
limitation, the FDA, or body or any court, domestic or foreign,
having jurisdiction over the Company or any of its subsidiaries or
any of their properties, or in default (or with the giving of
notice or lapse of time would be in default) under any existing
obligation, agreement, covenant or condition contained in any
indenture, loan agreement, mortgage, lease or other agreement or
instrument to which any of them is a party or by which any of them
is bound or to which any of the properties of any of them is
subject, except such defaults that would not, individually or in
the aggregate, result in a Material Adverse Effect.
(r) Authorization of
Agreement . This Agreement has been duly authorized,
executed and delivered by the Company.
(s) Possession of
Licenses and Permits . The Company and its subsidiaries
possess, and are in compliance with the terms of, all certificates,
authorizations, franchises, licenses, permits and other approvals
or authorizations of governmental or regulatory authorities,
including, without limitation, the FDA (“ Licenses
”), as are necessary to the conduct of the business now
conducted or proposed in the General Disclosure Package to be
conducted by them, except as would not, individually or in the
aggregate, have a Material Adverse Effect, and have not received
any notice of proceedings relating to the revocation or
modification of any Licenses that, if determined adversely to the
Company or any of its subsidiaries, would, individually or in the
aggregate, have a Material Adverse Effect.
(t) Absence of Labor
Dispute . No labor dispute with the employees of the
Company or any of its subsidiaries exists or, to the knowledge of
the Company, is imminent that would have a Material Adverse
Effect.
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(u) Possession of
Intellectual Property . The Company and its subsidiaries
own, possess, license or can acquire on reasonable terms, adequate
trademarks, trade names and other rights to inventions, know-how,
patents, copyrights, confidential information and other
intellectual property (collectively, “ intellectual
property rights ”) necessary to conduct the
business now operated by them, or presently employed by them,
except as would not, individually or in the aggregate, have a
Material Adverse Effect; and have not received any notice of
infringement of or conflict with asserted rights of others with
respect to any intellectual property rights that, if determined
adversely to the Company or any of its subsidiaries, would,
individually or in the aggregate, have a Material Adverse
Effect.
(v) Environmental
Laws . Except as disclosed in the General Disclosure
Package, 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 might lead to such a claim.
(w) Accurate
Disclosure . The statements in the General Disclosure
Package and the Final Prospectus under the headings “Summary
of the Offering and Our Common Stock”, “Description of
Capital Stock”, “Description of Enhanced Income
Securities (EISs)” and “Management’s Discussion
and Analysis of Financial Condition and Results of
Operation—Liquidity and Capital Resources— Debt
”, as modified by the Company’s current report on
Form 8-K filed on August 10, 2009, insofar as such
statements summarize legal matters, agreements, documents or
proceedings discussed therein, are accurate and fair summaries of
such legal matters, agreements, documents or proceedings and
present the information required to be shown under applicable
Securities Laws.
(x) Absence of
Manipulation . The Company has not taken, directly or
indirectly, any action that is designed to or that has constituted
or that would reasonably be expected to cause or result in the
stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Offered
Securities.
(y) Statistical and
Market-Related Data . Any third-party statistical and
market-related data included or incorporated by reference in a
Registration Statement, a Statutory Prospectus or the General
Disclosure Package are based on or derived from sources that the
Company believes to be reliable and accurate.
(z) Internal Controls
and Compliance with the Sarbanes-Oxley Act . Except as
set forth in the General Disclosure Package, the Company, its
subsidiaries and the Company’s Board of Directors (the
“ Board ”) are in compliance with Sarbanes-Oxley
and all applicable Exchange Rules. The Company maintains a
system of internal controls, including, but not limited to,
disclosure controls and procedures, internal controls over
accounting matters and financial reporting, an internal audit
function and legal and regulatory compliance controls
(collectively, “ Internal Controls ”) that
comply with Sarbanes-Oxley, the Act, the Exchange Act, the
Rules and Regulations and the Exchange Rules and are
sufficient to provide reasonable assurances 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 accounting
principles generally accepted in the United States and to maintain
accountability for assets, (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.
The Internal Controls are overseen by the Audit Committee (the
“ Audit Committee ”) of the Board in accordance
with Exchange Rules. Except as disclosed in the General
Disclosure Package, since January 3, 2009, the Company has not
publicly disclosed or reported to the Audit Committee or the Board,
and within the next 90 days the Company does not reasonably expect
to publicly disclose or report to the Audit Committee or
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the Board, (A) a significant
deficiency, (B) a material weakness, (C) change in
Internal Controls that has materially affected, or is reasonably
likely to materially affect, the Company’s Internal Controls,
(D) fraud involving management or other employees who have a
significant role in Internal Controls, (E) any violation of,
or failure to comply with, the Securities Laws, or (F) any
other matter involving Internal Controls, except, in the case of
(A) and (F), as would not reasonably be expected to have a
Material Adverse Effect.
(aa) Litigation
. Except as disclosed in the General Disclosure Package,
there are no pending actions, suits or proceedings (including any
inquiries or, to the Company’s knowledge, investigations by
any court or governmental agency or body, domestic or foreign)
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 this Agreement, or which are otherwise material
in the context of the sale of the Offered Securities; and no such
actions, suits or proceedings (including any inquiries or
investigations by any court or governmental agency or body,
domestic or foreign) are, to the Company’s knowledge,
threatened or contemplated.
(bb) Financial
Statements . The financial statements included in, or
incorporated by reference into, the Registration Statement and the
General Disclosure Package 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 such financial statements have been prepared in
conformity with the generally accepted accounting principles in the
United States applied on a consistent basis.
(cc) No Material
Adverse Change in Business . Except as disclosed in the
General Disclosure Package, since the end of the period covered by
the latest audited financial statements included in, or
incorporated by reference into, the General Disclosure Package
(i) there has been no material adverse change, nor any
development or event involving a prospective material adverse
change, in the condition (financial or otherwise), results of
operations, business, properties or prospects of the Company and
its subsidiaries, taken as a whole, (ii) except as disclosed
in or contemplated by the General Disclosure Package, there has
been no dividend or distribution of any kind declared, paid or made
by the Company on any class of its capital stock and
(iii) except as disclosed in or contemplated by the General
Disclosure Package, there has been no material adverse change in
the capital stock, short-term indebtedness, long-term indebtedness,
net current assets or net assets of the Company and its
subsidiaries.
(dd) Investment
Company Act . The Company is not and, after giving effect
to the offering and sale of the Offered Securities and the
application of the proceeds thereof as described in the General
Disclosure Package, will not be an “investment company”
as defined in the Investment Company Act of 1940 (the “
Investment Company Act ”).
(ee) Ratings
. No “nationally recognized statistical rating
organization” as such term is defined for purposes of
Rule 436(g)(2) (i) has imposed (or has informed the
Company that it is considering imposing) any condition (financial
or otherwise) on the Company’s retaining any rating assigned
to the Company or any securities of the Company or (ii) has
indicated to the Company that it is considering any of the actions
described in Section 7(c)(ii) hereof.
(ff) Taxes.
The Company and its subsidiaries have filed all federal,
state, local and non-U.S. tax returns that are required to be filed
or have requested extensions thereof (except in any case in which
the failure so to file would not have a Material Adverse Effect);
and, except as set forth in the General Disclosure Package, the
Company and its subsidiaries have paid all taxes (including any
assessments, fines or penalties) required to be paid by them,
except for any such taxes, assessments, fines or penalties
currently being contested in good faith or as would not,
individually or in the aggregate, have a Material Adverse
Effect.
(gg) Insurance.
The Company and its subsidiaries are insured by insurers with
appropriately rated claims paying abilities against such losses and
risks and in such amounts as are prudent and customary
for
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the businesses in which they are
engaged; all policies of insurance insuring the Company or any of
its subsidiaries or their respective businesses, assets, employees,
officers and directors are in full force and effect; 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 would not have a Material Adverse Effect, except as set
forth in or contemplated in the General Disclosure
Package.
(hh) Compliance.
Each of the Company, its subsidiaries, its affiliates and any
of their respective officers, directors, supervisors, managers,
agents, or employees, has not violated, its participation in the
offering will not violate, and it has instituted and maintains
policies and procedures designed to ensure continued
compli