4,287,920 Shares Non-Voting Common Stock ($0.10 Par Value) UNDERWRITING AGREEMENT April 6, 2006
Execution Copy
Exhibit 1.1
4,287,920 Shares
Non-Voting Common Stock
($0.10 Par Value)
April 6, 2006
April 6, 2006
UBS Securities LLC
Xxxxxx Xxxx Incorporated
As Representatives of the several Underwriters
Xxxxxx Xxxx Incorporated
As Representatives of the several Underwriters
c/o UBS Securities LLC
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
PHI, Inc., a Louisiana corporation (the “Company”), proposes to issue and sell to the
underwriters named in Schedule A annexed hereto (the “Underwriters”), for whom you are acting as
representative, an aggregate of 4,287,920 shares (the “Firm Shares”) of non-voting common stock,
$0.10 par value per share (the “Common Stock”), of the Company. In addition, solely for the
purpose of covering over-allotments, the Company proposes to grant to the Underwriters the option
to purchase from the Company up to an additional 643,188 shares of Common Stock (the “Additional
Shares”). The Firm Shares and the Additional Shares are hereinafter collectively sometimes
referred to as the “Shares.” The Shares are described in the Prospectus which is referred to
below.
In connection with the offering, Xx X. Xxxxxxxxx, the Chief Executive Officer and Chairman of
the Board of Directors of the Company, will purchase 100,000 shares of the Firm Shares (the
“Xxxxxxxxx Shares”) from the Underwriters. The Underwriters will receive no commission or discount
on the Xxxxxxxxx Shares.
The Company has prepared and filed, in accordance with the provisions of the Securities Act of
1933, as amended, and the rules and regulations thereunder (collectively, the “Act”), with the
Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (File
No. 333-123528) under the Act (the “registration statement”), including a prospectus, which
registration statement incorporates by reference documents which the Company has filed or will file
in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules
and regulations thereunder (collectively, the “Exchange Act”). Such registration statement has
become effective under the Act.
Except where the context otherwise requires, “Registration Statement,” as used herein, means
the registration statement, as amended at the time of such registration statement’s effectiveness
for purposes of Section 11 of the Act, as such section applies to the respective Underwriters (the
“Effective Time”), including (i) all documents filed as a part thereof or incorporated or deemed to
be incorporated by reference therein, (ii) any information contained or incorporated by reference
in a prospectus filed with the Commission pursuant to Rule 424(b) under the Act, to the extent such
information is deemed, pursuant to Rule 430B or Rule 430C under the Act, to be part of the
registration statement at the Effective Time, and (iii) any
registration statement filed to register the offer and sale of Shares pursuant to Rule 462(b)
under the Act.
The Company has furnished to you, for use by the Underwriters and by dealers in connection
with the offering of the Shares, copies of one or more preliminary prospectus supplements, and the
documents incorporated by reference therein, relating to the Shares. Except where the context
otherwise requires, “Pre-Pricing Prospectus,” as used herein, means the preliminary prospectus
supplement dated as of March 30, 2006 relating to the Shares, in the form so furnished, including
the basic prospectus dated as of March 31, 2005 furnished to you by the Company and attached to or
used with such preliminary prospectus supplement. Except where the context otherwise requires,
“Basic Prospectus,” as used herein, means such basic prospectus furnished to you by the Company and
attached to or used with the Prospectus Supplement (as defined below).
Except where the context otherwise requires, “Prospectus Supplement,” as used herein, means
the final prospectus supplement, relating to the Shares, filed by the Company with the Commission
pursuant to Rule 424(b) under the Act on or before the second business day after the date hereof
(or such earlier time as may be required under the Act), in the form furnished by the Company to
you for use by the Underwriters and by dealers in connection with the offering of the Shares.
Except where the context otherwise requires, “Prospectus,” as used herein, means the
Prospectus Supplement together with the Basic Prospectus attached to or used with the Prospectus
Supplement.
“Permitted Free Writing Prospectuses,” as used herein, means the documents attached as
Schedule B hereto and each “road show” (as defined in Rule 433 under the Act), if any, related to
the offering of the Shares contemplated hereby that is a “written communication” (as defined in
Rule 405 under the Act). The Underwriters have not offered or sold and will not offer or sell,
without the Company’s consent, any Shares by means of any “free writing prospectus” (as defined in
Rule 405 under the Act) that is required to be filed with the Commission pursuant to Rule 433 under
the Act, other than a Permitted Free Writing Prospectus.
“Disclosure Package,” as used herein, means the Pre-Pricing Prospectus or Basic Prospectus, in
either case together with any combination of one or more of the Permitted Free Writing
Prospectuses, if any.
Any reference herein to the registration statement, the Registration Statement, any Basic
Prospectus, the Pre-Pricing Prospectus, the Prospectus Supplement, the Prospectus or any Permitted
Free Writing Prospectus shall be deemed to refer to and include the documents, if any, incorporated
by reference, or deemed to be incorporated by reference, therein (the “Incorporated Documents”),
including, unless the context otherwise requires, the documents, if any, filed as exhibits to such
Incorporated Documents. Any reference herein to the terms “amend,” “amendment” or “supplement”
with respect to the Registration Statement, the Basic Prospectus, the Pre-Pricing Prospectus, the
Prospectus Supplement, the Prospectus or any Permitted Free Writing Prospectus shall be deemed to
refer to and include the filing of any
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document under the Exchange Act on or after the initial effective date of the Registration
Statement, or the date of the Basic Prospectus, the Pre-Pricing Prospectus, the Prospectus
Supplement, the Prospectus or such Permitted Free Writing Prospectus, as the case may be, and
deemed to be incorporated therein by reference.
Concurrently with the offering of the Shares, the Company is engaging in a tender offer for
all of its existing $200,000,000
93/8
% Senior Notes due 2009 (the “Tender Offer”), as well as a
private offering of $150,000,000 Senior Notes due 2013 pursuant to Rule 144A and Regulation S under
the Act (the “Notes Offering”).
As used in this Agreement, “business day” shall mean a day on which the NASDAQ National Market
(the “NASDAQ”) is open for trading. The terms “herein,” “hereof,” “hereto,” “hereinafter” and
similar terms, as used in this Agreement, shall in each case refer to this Agreement as a whole and
not to any particular section, paragraph, sentence or other subdivision of this Agreement. The
term “or,” as used herein, is not exclusive.
The Company and the Underwriters agree as follows:
1. Sale and Purchase. Upon the basis of the representations and warranties and
subject to the terms and conditions herein set forth, the Company agrees to issue and sell to the
respective Underwriters and each of the Underwriters, severally and not jointly, agrees to purchase
from the Company the number of Firm Shares set forth opposite the name of such Underwriter in
Schedule A attached hereto, subject to adjustment in accordance with Section 8 hereof, in each case
at a purchase price of $33.075 per Share, except with respect to the Xxxxxxxxx Shares which shall
be at a purchase price of $35.00 per Share. The Company is advised by you that the Underwriters
intend (i) to make a public offering of their respective portions of the Firm Shares as soon after
execution of this Agreement as in your judgment is advisable and (ii) initially to offer the Firm
Shares upon the terms set forth in the Prospectus. You may from time to time increase or decrease
the public offering price after the initial offering of the Shares to the public by the
Underwriters to such extent as you may determine.
In addition, the Company hereby grants to the several Underwriters the option (the
“Over-Allotment Option”) to purchase, and upon the basis of the representations and warranties and
subject to the terms and conditions herein set forth, the Underwriters shall have the right to
purchase, severally and not jointly, from the Company, ratably in accordance with the number of
Firm Shares to be purchased by each of them, all or a portion of the Additional Shares as may be
necessary to cover over-allotments made in connection with the offering of the Firm Shares, at the
same purchase price per share to be paid by the Underwriters to the Company for the Firm Shares.
The Over-Allotment Option may be exercised by UBS Securities LLC (“UBS”) on behalf of the several
Underwriters at any time and from time to time on or before the thirtieth day following the date of
the Prospectus Supplement, by written notice to the Company. Such notice shall set forth the
aggregate number of Additional Shares as to which the Over-Allotment Option is being exercised and
the date and time when the Additional Shares are to be delivered (any such date and time being
herein referred to as an “additional time of purchase”); provided, however, that no additional time
of purchase shall be earlier than the “time of purchase” (as defined below) nor earlier than the
second business day after the date on which the Over-
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Allotment Option shall have been exercised nor later than the tenth business day after the
date on which the Over-Allotment Option shall have been exercised. The number of Additional Shares
to be sold to each Underwriter shall be the number which bears the same proportion to the aggregate
number of Additional Shares being purchased as the number of Firm Shares set forth opposite the
name of such Underwriter on Schedule A hereto bears to the total number of Firm Shares (subject, in
each case, to such adjustment as UBS may determine to eliminate fractional shares), subject to
adjustment in accordance with Section 8 hereof.
2. Payment and Delivery. Payment of the purchase price for the Firm Shares shall be
made to the Company by Federal Funds wire transfer, against delivery of the certificates for the
Firm Shares to you through the facilities of The Depository Trust Company (“DTC”) for the
respective accounts of the Underwriters. Such payment and delivery shall be made at 10:00 A.M.,
New York City time, on April 12, 2006 (unless another time shall be agreed to by you and the
Company or unless postponed in accordance with the provisions of Section 8 hereof). The time at
which such payment and delivery are to be made is hereinafter sometimes called the “time of
purchase.” Electronic transfer of the Firm Shares shall be made to you at the time of purchase in
such names and in such denominations as you shall specify.
Payment of the purchase price for the Additional Shares shall be made at the additional time
of purchase in the same manner and at the same office as the payment for the Firm Shares.
Electronic transfer of the Additional Shares shall be made to you at the additional time of
purchase in such names and in such denominations as you shall specify.
Deliveries of the documents described in Section 6 hereof with respect to the purchase of the
Shares shall be made at the offices of Akin Gump Xxxxxxx Xxxxx & Xxxx LLP, 0000 Xxxxxxxxx Xxxxxx,
Xxxxxxx, Xxxxx 00000, at 9:00 A.M., New York City time, on the date of the closing of the purchase
of the Firm Shares or the Additional Shares, as the case may be.
3. Representations and Warranties of the Company. The Company represents and warrants
to and agrees with each of the Underwriters that:
(a) The Registration Statement has heretofore become effective under the Act; or, with
respect to any registration statement to be filed to register the offer and sale of Shares
pursuant to Rule 462(b) under the Act, will be filed with the Commission and become
effective under the Act no later than 10:00 P.M., New York City time, on the date of
determination of the public offering price for the Shares; no stop order of the Commission
preventing or suspending the use of the Basic Prospectus, the Pre-Pricing Prospectus, the
Prospectus Supplement, the Prospectus or any Permitted Free Writing Prospectus or the
effectiveness of the Registration Statement has been issued, and no proceedings for such
purpose have been instituted or, to the Company’s knowledge, are contemplated by the
Commission;
(b) The Registration Statement complied when it became effective, complies as of the
date hereof and, as amended or supplemented, at the time of purchase, each additional time
of purchase, if any, and at all times during which a prospectus is required by the Act to be
delivered (whether physically or through compliance with Rule 172
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under the Act or any similar rule) in connection with any sale of Shares, will comply,
in all material respects with the requirements of the Act; the conditions to the use of Form
S-3 in connection with the offering and sale of the Shares as contemplated hereby have been
satisfied; the Registration Statement meets, and the offering and sale of the Shares as
contemplated hereby complies with, the requirements of Rule 415 under the Act; the
Registration Statement did not, as of the Effective Time, 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; each Pre-Pricing Prospectus complied, at the
time it was filed with the Commission, and complies as of the date hereof, in all material
respects with the requirements of the Act; as of its date, the Pre-Pricing Prospectus did
not, and as of the date hereof, the Pre-Pricing Prospectus, as then amended or supplemented,
does not, and as of the time of purchase, the Pre-Pricing Prospectus, as then amended or
supplemented, will not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and as of such dates or times, the
Pre-Pricing Prospectus, as then amended or supplemented, together with any combination of
one or more of the then issued Permitted Free Writing Prospectuses, if any, did not or will
not include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading; the Basic Prospectus complied, as of its date and the
date it was filed with the Commission, complies as of the date hereof (if filed with the
Commission on or prior to the date hereof) and, at the time of purchase, each additional
time of purchase, if any, and at all times during which a prospectus is required by the Act
to be delivered (whether physically or through compliance with Rule 172 under the Act or any
similar rule) in connection with any sale of Shares, will comply, in all material respects,
with the requirements of the Act; as of its date, the Basic Prospectus did not, and as of
the date hereof, the Basic Prospectus, as then amended or supplemented, does not, and as of
the time of purchase, the Basic Prospectus, as then amended or supplemented, will not
include an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they
were made, not misleading, and as of such dates or times, the Basic Prospectus, as then
amended or supplemented, together with any combination of one or more of the then issued
Permitted Free Writing Prospectuses, if any, did not or will not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading; each of the Prospectus Supplement and the Prospectus will comply, as of the date
that it is filed with the Commission, the date of the Prospectus Supplement, the time of
purchase, each additional time of purchase, if any, and at all times during which a
prospectus is required by the Act to be delivered (whether physically or through compliance
with Rule 172 under the Act or any similar rule) in connection with any sale of Shares, in
all material respects, with the requirements of the Act (in the case of the Prospectus,
including, without limitation, Section 10(a) of the Act); of its respective date, the
Prospectus Supplement or the Prospectus, as then amended or supplemented, did not, and as of
the date hereof, the Prospectus Supplement or the Prospectus, as then amended or
supplemented, does not, and as of the time of purchase, each additional time of
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purchase, if any, and at all times during which a prospectus is required by the Act to
be delivered (whether physically or through compliance with Rule 172 under the Act or any
similar rule) in connection with any sale of Shares any Prospectus Supplement or the
Prospectus, as then amended or supplemented, will not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading; as of
its date, each Permitted Free Writing Prospectus did not, as of the date hereof each
Permitted Free Writing Prospectus does not, and as of the time of purchase, each Permitted
Free Writing Prospectus will not include an untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that the
Company makes no representation or warranty in this Section 3(b) with respect to any
statement contained in the Registration Statement, the Pre-Pricing Prospectus, the
Prospectus Supplement, the Prospectus or any Permitted Free Writing Prospectus in reliance
upon and in conformity with information concerning an Underwriter and furnished in writing
by or on behalf of such Underwriter through you to the Company expressly for use in the
Registration Statement, the Pre-Pricing Prospectus, the Prospectus Supplement, the
Prospectus or such Permitted Free Writing Prospectus; each Incorporated Document, at the
time such document was filed with the Commission or at the time such document became
effective, as applicable, complied, in all material respects, with the requirements of the
Exchange Act and did not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;
(c) prior to the execution of this Agreement, the Company has not, directly or
indirectly, offered or sold any Shares by means of any “prospectus” (within the meaning of
the Act) or used any “prospectus” (within the meaning of the Act) in connection with the
offer or sale of the Shares, in each case other than the Pre-Pricing Prospectus and the
Permitted Free Writing Prospectuses, if any; the Company has not, directly or indirectly,
prepared, used or referred to any Permitted Free Writing Prospectus except in compliance
with Rules 164 and 433 under the Act; assuming that such Permitted Free Writing Prospectus
is accompanied or preceded by the most recent Pre-Pricing Prospectus or the Prospectus, as
the case may be, and that such Permitted Free Writing Prospectus is so sent or given after
the Registration Statement was filed with the Commission (and after such Permitted Free
Writing Prospectus was, if required pursuant to Rule 433(d) under the Act, filed with the
Commission), the sending or giving, by any Underwriter, of any Permitted Free Writing
Prospectus will satisfy the provisions of Rule 164 and Rule 433 (without reliance on
subsections (b), (c) and (d) of Rule 164); the Pre-Pricing Prospectus is a prospectus that,
other than by reason of Rule 433 or Rule 431 under the Act, satisfies the requirements of
Section 10 of the Act; neither the Company nor the Underwriters are disqualified, by reason
of subsection (f) or (g) of Rule 164 under the Act, from using, in connection with the offer
and sale of the Shares, “free writing prospectuses” (as defined in Rule 405 under the Act)
pursuant to Rules 164 and 433 under the Act; the Company is not an “ineligible issuer” (as
defined in Rule 405 under the Act) as of the eligibility determination date for purposes of
Rules 164 and 433 under the Act with respect to the
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offering of the Shares contemplated by the Registration Statement; the parties hereto
agree and understand that the content of any and all “road shows” (as defined in Rule 433
under the Act) related to the offering of the Shares contemplated hereby is solely the
property of the Company;
(d) as of the date of this Agreement, the Company has an authorized and outstanding
capitalization as set forth under the heading “Actual” in the section of the Registration
Statement, the Pre-Pricing Prospectus and the Prospectus entitled “Capitalization” and
“Description of capital stock” (and any similar sections or information, if any, contained
in any Permitted Free Writing Prospectus), and, as of the time of purchase and any
additional time of purchase, as the case may be, the Company shall have an authorized and
outstanding capitalization as set forth under the heading “As Adjusted” in the sections of
the Registration Statement, the Pre-Pricing Prospectus and the Prospectus entitled
“Capitalization” and “Description of capital stock” (and any similar sections or
information, if any, contained in any Permitted Free Writing Prospectus), (subject, in each
case, to the issuance of shares of Common Stock upon exercise of outstanding stock options
disclosed in the Registration Statement (excluding the exhibits thereto), the Pre-Pricing
Prospectus and the Prospectus, the grant of options under existing stock option plans
described in the Registration Statement (excluding the exhibits thereto), the Pre-Pricing
Prospectus and the Prospectus and the amendment of the Articles of Incorporation of the
Company to increase the number of authorized shares of capital stock, and subject, in the
case of the time of purchase, to the consummation of the sale of the Firm Shares, and
subject, in the case of any additional time of purchase, to the issuance of the Additional
Shares); all of the issued and outstanding shares of capital stock, including the Common
Stock, of the Company have been duly authorized and validly issued and are fully paid and
non-assessable, have been issued in compliance with all applicable securities laws and were
not issued in violation of any preemptive right, right of first refusal or similar right;
the Shares are duly listed, and admitted and authorized for trading, subject to official
notice of issuance, on the NASDAQ;
(e) the Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Louisiana, with full corporate power and
authority to own, lease and operate its properties and conduct its business as described in
the Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted
Free Writing Prospectuses, if any, to execute and deliver this Agreement and to issue, sell
and deliver the Shares as contemplated herein;
(f) the Company is duly qualified to do business as a foreign corporation and is in
good standing in each jurisdiction where the ownership or leasing of its properties or the
conduct of its business requires such qualification, except where the failure to be so
qualified and in good standing would not, individually or in the aggregate, have a material
adverse effect on the business, properties, financial condition, results of operations or
prospects of the Company and the Subsidiaries (as hereinafter defined) taken as a whole (a
“Material Adverse Effect”);
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(g) the Company has no subsidiaries (as defined under the Act) other than International
Helicopter Transport, Inc.; PHI Tech Services, Inc.; Air Evac Services, Inc.; PHI Air
Medical, Inc.; Petroleum Helicopters International, Inc.; Helicopter Management, LLC;
Helicopter Leasing, LLC; HELEX, L.L.C.; Sky Leasing, L.L.C.; PHI International Ltd.; PHI
Angola Ltd.; Petroleum Helicopters Angola, LDA; and Energy Risk Ltd. (collectively, the
“Subsidiaries”); other than International Helicopter Transport, Inc., Air Evac Services,
Inc. and PHI Air Medical, Inc. (collectively, the “Significant Subsidiaries”), no Subsidiary
has operating revenues that exceed 2.5% of the Company’s total operating revenues on a
consolidated basis for the fiscal year ended December 31, 2005 or has assets that exceed 5%
of the Company’s total assets on a consolidated basis as of March 31, 2006; except for the
Company’s ownership of 49% of the outstanding capital stock of Petroleum Helicopters Angola,
LDA and except for the outstanding shares of the Series A Cumulative Accruing Pay-in-Kind
Preferred Stock (the “PIK Preferred Stock”) of Air Evac Services, Inc., the Company owns,
directly or indirectly, 100% of the issued and outstanding capital stock or membership
interests, as the case may be, of each of the Subsidiaries; other than the capital stock and
membership interests of the Subsidiaries, the Company does not own, directly or indirectly,
any shares of stock or any other equity interests or long-term debt securities of any
corporation, firm, partnership, joint venture, association or other entity; complete and
correct copies of the charters and the bylaws or limited liability company agreement, as the
case may be, of the Company and each Subsidiary and all amendments thereto have been made
available to you or your representatives, and no changes therein will be made on or after
the date hereof through and including the time of purchase or, if later, any additional time
of purchase (except for the amendment of the Articles of Incorporation of the Company to
increase the number of authorized shares of capital stock; each Subsidiary has been duly
incorporated or formed, as the case may be, and is validly existing as a corporation or
limited liability company, as the case may be, in good standing under the laws of the
jurisdiction of its incorporation or organization, as the case may be, with the requisite
corporate or company power and authority to own, lease and operate its properties and to
conduct its business as described in the Registration Statement, the Pre-Pricing Prospectus,
the Prospectus and the Permitted Free Writing Prospectuses, if any; each Subsidiary is duly
qualified to do business as a foreign corporation or limited liability company, as the case
may be, and is in good standing in each jurisdiction where the ownership or leasing of its
properties or the conduct of its business requires such qualification, except where the
failure to be so qualified and in good standing would not, individually or in the aggregate,
have a Material Adverse Effect; all of the outstanding shares of capital stock or membership
interests of each of the Subsidiaries have been duly authorized and validly issued, are
fully paid and non-assessable, have been issued in compliance with all applicable securities
laws, were not issued in violation of any preemptive right, resale right, right of first
refusal or similar right and are owned by the Company subject to no security interest, other
encumbrance or adverse claims; and, except for the PIK Preferred Stock, no options, warrants
or other rights to purchase, agreements or other obligations to issue or other rights to
convert any obligation into shares of capital stock or ownership interests in the
Subsidiaries are outstanding;
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(h) the Shares to be sold by the Company pursuant hereto have been duly and validly
authorized and, when issued and delivered against payment therefore as provided herein, will
be duly and validly issued, fully paid and non-assessable and free of statutory and
contractual preemptive rights, rights of first refusal and similar rights; the Shares to be
sold by the Company pursuant hereto, when issued and delivered against payment therefor as
provided herein, will be free of any restriction upon the transfer thereof pursuant to the
Company’s charter or bylaws or any agreement or other instrument to which the Company is a
party;
(i) the capital stock of the Company, including the Shares, conforms in all material
respects to each description thereof, if any, contained or incorporated by reference, in the
Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any; and the certificates for the Shares are in due and proper
form;
(j) this Agreement has been duly authorized, executed and delivered by the Company;
(k) neither the Company nor any of the Subsidiaries is in breach or violation of or in
default under (nor has any event occurred which with notice, lapse of time or both would
result in any breach or violation of, constitute a default under or give the holder of any
indebtedness (or a person acting on such holder’s behalf) the right to require the
repurchase, redemption or repayment of all or a part of such indebtedness under) (A) its
respective charter or bylaws or limited liability company agreement, as the case may be, or
(B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence
of indebtedness, or (C) any license, lease, contract or other agreement or instrument to
which the Company or any of the Subsidiaries is a party or by which any of them or any of
their properties may be bound or (D) except for the inquiry of the Department of Justice
described in the Registration Statement, Pre-Pricing Prospectus and the Prospectus, any
federal, state, local or foreign law, regulation or rule applicable to it, or (E) any rule
or regulation of any self-regulatory organization or other non-governmental regulatory
authority (including, without limitation, the rules and regulations of the NASDAQ)
applicable to it, or (F) any decree, judgment or order applicable to it or any of its
properties, except, in the case of clauses (B), (C), (D), (E) and (F) for breaches,
violations or defaults that would not, individually or in the aggregate, have a Material
Adverse Effect;
(l) the execution, delivery and performance of this Agreement, the issuance and sale of
the Shares to be sold by the Company pursuant hereto and the consummation of the
transactions contemplated hereby will not conflict with, result in any breach or violation
of or constitute a default under (nor constitute any event which, with notice, lapse of time
or both, would result in any breach or violation of, constitute a default under or give the
holder of any indebtedness (or a person acting on such holder’s behalf) the right to require
the repurchase, redemption or repayment of all or a part of such indebtedness under) (or
result in the creation or imposition of a lien, charge or encumbrance on any property or
assets of the Company or any Subsidiary pursuant to)
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(A) the charter or bylaws of the Company or any of the Subsidiaries, or (B) any
indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of
indebtedness, or (C) any license, lease, contract or other agreement or instrument to which
the Company or any of the Subsidiaries is a party or by which any of them or any of their
respective properties may be bound, except conflicts, breaches, violations or defaults that
would not, individually or in the aggregate, have a Material Adverse Effect or (D) any
federal, state, local or foreign law, regulation or rule applicable to it, or (E) any rule
or regulation of any self-regulatory organization or other non-governmental regulatory
authority (including, without limitation, the rules and regulations of the NASDAQ)
applicable to it, or (F) any decree, judgment or order applicable to the Company or any of
the Subsidiaries or any of their respective properties;
(m) no approval, authorization, consent or order of or filing with any federal, state,
local or foreign governmental or regulatory commission, board, body, authority or agency, or
of or with any self-regulatory organization or other non-governmental regulatory authority
(including, without limitation, the NASDAQ) applicable to the Company, or approval of the
stockholders of the Company, is required to be obtained or made by the Company in connection
with the issuance and sale of the Shares or the consummation by the Company of the
transactions contemplated hereby, other than (i) registration of the offer and sale of the
Shares under the Act, which has been effected (or, with respect to any registration
statement to be filed hereunder pursuant to Rule 462(b) under the Act, will be effected in
accordance herewith), (ii) any necessary qualification under the securities or blue sky laws
of the various jurisdictions in which the Shares are being offered by the Underwriters or
(iii) under the conduct rules of the National Association of Securities Dealers, Inc. (the
“NASD”);
(n) except as described in the Registration Statement (excluding the exhibits thereto),
the Pre-Pricing Prospectus and the Prospectus and the right to purchase Additional Shares
hereunder, (i) no person has the right, contractual or otherwise, to cause the Company to
issue or sell to it any shares of Common Stock or shares of any other capital stock or other
equity interests of the Company, (ii) no person has any preemptive rights, rights of first
refusal or other rights to purchase any shares of Common Stock or shares of any other
capital stock or other equity interests of the Company, and (iii) no person has the right to
act as an underwriter or as a financial advisor to the Company in connection with the offer
and sale of the Shares; no person has the right, contractual or otherwise, to cause the
Company to register under the Act any shares of Common Stock or shares of any other capital
stock or other equity interests of the Company, or to include any such shares or interests
in the Registration Statement or the offering contemplated thereby;
(o) each of the Company and the Subsidiaries has all necessary licenses,
authorizations, consents and approvals and has made all necessary filings required under any
applicable law, regulation or rule, and has obtained all necessary licenses, authorizations,
consents and approvals from other persons, in order to conduct their respective businesses,
except for any failure to have or to have obtained any such licenses, authorizations,
consents or approvals or to have made such filings as would not,
10
individually or in the aggregate, have a Material Adverse Effect, except for the
inquiry of the Department of Justice described in the Registration Statement, Pre-Pricing
Prospectus and the Prospectus, neither the Company nor any of the Subsidiaries is in
violation of, or in default under, or has received notice of any proceedings relating to
revocation or modification of, any such license, authorization, consent or approval or any
federal, state, local or foreign law, regulation or rule or any decree, order or judgment
applicable to the Company or any of the Subsidiaries, except where such violation, default,
revocation or modification would not, individually or in the aggregate, have a Material
Adverse Effect;
(p) except as set forth in the Registration Statement, the Pre-Pricing Prospectus and
the Prospectus, there are no actions, suits, claims, investigations or proceedings pending
or, to the Company’s knowledge, threatened to which the Company or any of the Subsidiaries
or any of their respective directors or officers in his or her capacity as director or
officer is a party or of which any of the Company’s or the Subsidiaries’ respective
properties is subject at law or in equity, before or by any federal, state, local or foreign
governmental or regulatory commission, board, body, authority or agency, or before or by any
self-regulatory organization or other non-governmental regulatory authority (including,
without limitation, the NASDAQ) applicable to it, except any such action, suit, claim,
investigation or proceeding which would not result in a judgment, decree or order having,
individually or in the aggregate, a Material Adverse Effect or prevent consummation of the
transactions contemplated hereby;
(q) Deloitte & Touche LLP, whose report on the consolidated financial statements of the
Company and the Subsidiaries is included or incorporated by reference in the Registration
Statement, the Pre-Pricing Prospectus and the Prospectus are independent registered public
accountants as required by the Act and by the rules of the Public Company Accounting
Oversight Board;
(r) the consolidated financial statements included or incorporated by reference in the
Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any, together with the related notes and schedules, present fairly
in all material respects the consolidated financial position of the Company and the
Subsidiaries as of the dates indicated and the consolidated results of operations, cash
flows and changes in shareholders’ equity of the Company for the periods specified and have
been prepared in compliance with the requirements of the Act and Exchange Act and in
conformity with U.S. generally accepted accounting principles applied on a consistent basis
during the periods involved; all pro forma financial statements or data included or
incorporated by reference in the Registration Statement, the Pre-Pricing Prospectus, the
Prospectus and the Permitted Free Writing Prospectuses, if any, comply with the requirements
of Regulation S-X of the Act, and the assumptions used in the preparation of such pro forma
financial statements and data are reasonable, the pro forma adjustments used therein are
appropriate to give effect to the transactions or circumstances described therein and the
pro forma adjustments have been properly applied to the historical amounts in the
compilation of those statements and data; the other financial and statistical data contained
or incorporated by reference in the Registration Statement, the Pre-Pricing Prospectus, the
Prospectus and the Permitted Free
11
Writing Prospectuses, if any, are accurately and fairly presented in all material
respects and prepared on a basis consistent with the financial statements and books and
records of the Company; there are no financial statements (historical or pro forma) that are
required to be included or incorporated by reference in the Registration Statement, the
Pre-Pricing Prospectus or the Prospectus that are not included or incorporated by reference
as required; the Company and the Subsidiaries do not have any material liabilities or
obligations, direct or contingent (including any off-balance sheet obligations), not
described in the Registration Statement (excluding the exhibits thereto), the Pre-Pricing
Prospectus and the Prospectus; and all disclosures contained or incorporated by reference in
the Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted
Free Writing Prospectuses, if any, regarding “non-GAAP financial measures” (as such term is
defined by the rules and regulations of the Commission) comply with Regulation G of the
Exchange Act and Item 10 of Regulation S-K under the Act, to the extent applicable;
(s) subsequent to the respective dates as of which information is given in the
Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any, in each case excluding any amendments or supplements to the
foregoing made after the execution of this Agreement, there has not been (i) any material
adverse change, or any development involving a prospective material adverse change, in the
business, properties, management, financial condition or results of operations of the
Company and the Subsidiaries taken as a whole (other than pursuant to any drawdown for
working capital purposes on the lines of credit or credit facilities existing as of the date
of this Agreement and described in the Registration Statement, the Pre-Pricing Prospectus,
the Prospectus and the Permitted Free Writing Prospectuses, if any, or any aircraft or
equipment lease financings), (ii) any transaction not in the ordinary course of business
that would have a Material Adverse Effect (other than the Tender Offer and the Notes
Offering), (iii) any obligation or liability, direct or contingent (including any
off-balance sheet obligations), incurred by the Company or the Subsidiaries, which is
material to the Company and the Subsidiaries taken as a whole (other than pursuant to any
drawdown or lease financings as described in clause (i) above, the Tender Offer or the Notes
Offering), (iv) any change in the capital stock or outstanding indebtedness of the Company
or the Subsidiaries (other than pursuant to the exercise of outstanding stock options
disclosed in the Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the
Permitted Free Writing Prospectuses, if any, the grant of options under existing stock
option plans, the issuance of the Firm Shares upon the consummation of the sale of the Firm
Shares, any drawdown or lease financings as described in clause (i) above, the Tender Offer
or the Notes Offering) or (v) any dividend or distribution of any kind declared, paid or
made on the capital stock of the Company or the Subsidiaries (other than with respect to the
PIK Preferred Stock);
(t) the Company has obtained for the benefit of the Underwriters the agreement (a
“Lock-Up Agreement”), in the form set forth as Exhibit A hereto, of each of its directors
and executive officers listed on Exhibit A-1 hereto;
12
(u) neither the Company nor any Subsidiary is, and at no time during which a prospectus
is required by the Act to be delivered (whether physically or through compliance with Rule
172 under the Act or any similar rule) in connection with any sale of Shares will either of
them be, after giving effect to the offering and sale of the Shares, an “investment company”
or an entity “controlled” by an “investment company,” as such terms are defined in the
Investment Company Act of 1940, as amended (the “Investment Company Act”) or a “passive
foreign investment company” or a “controlled foreign corporation” as such terms are defined
in the Internal Revenue Code;
(v) the Company and each of the Subsidiaries has good and marketable title to all
property (real and personal) that is material to the Company’s business and described in the
Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any, as being owned by each of them, free and clear of all liens,
claims, security interests or other encumbrances (other than those described in the
Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any,) that do not, individually or in the aggregate, materially
adversely affect the value of or the use of such property for its current and anticipated
purposes, and except for security interests granted pursuant to any lease financings as
described in clause (i) of Section 3(s) above and that certain Loan Agreement dated April
23, 2002, as amended, among the Company, Air Evac Services, Inc., Xxxxxxxxxx Airmotive Inc.,
and International Helicopter Transport, Inc. and Whitney National Bank (the “Loan
Agreement”); all material property described in the Registration Statement, the Pre-Pricing
Prospectus, the Prospectus and the Permitted Free Writing Prospectuses, if any, as being
held under lease by the Company or a Subsidiary is held thereby under valid, subsisting and
enforceable leases;
(w) the Company and the Subsidiaries own, or have obtained valid and enforceable
licenses for, or other rights to use, the inventions, patent applications, patents,
trademarks (both registered and unregistered), tradenames, service names, copyrights, trade
secrets and other proprietary information described in the Registration Statement, the
Pre-Pricing Prospectus, the Prospectus and the Permitted Free Writing Prospectuses, if any,
as being owned or licensed by them or which are necessary for the conduct of their
respective businesses, except where the failure to own, license or have such rights would
not, individually or in the aggregate, have a Material Adverse Effect (collectively,
“Intellectual Property”); (i) to the Company’s knowledge, there are no third parties who
have rights to any Intellectual Property, except for, and to the extent of, the ownership
rights of the owners of the Intellectual Property which the Registration Statement
(excluding the exhibits thereto), the Pre-Pricing Prospectus and the Prospectus disclose is
licensed to the Company; (ii) to the Company’s knowledge, there is no infringement by third
parties of any Intellectual Property; (iii) there is no pending or, to the Company’s
knowledge, threatened action, suit, proceeding or claim by others challenging the Company’s
rights in or to any Intellectual Property, and the Company is unaware of any facts which
could form a reasonable basis for any such action, suit, proceeding or claim; (iv) there is
no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by
others challenging the validity, enforceability or scope of any Intellectual Property, and
the Company is unaware of any facts which could
13
form a reasonable basis for any such action, suit, proceeding or claim; (v) except for
any actions, suits, proceedings or claims which would not, individually or in the aggregate
have a Material Adverse Effect, there is no pending or, to the Company’s knowledge,
threatened action, suit, proceeding or claim by others that the Company infringes or
otherwise violates any patent, trademark, copyright, trade secret or other proprietary
rights of others, and the Company is unaware of any facts which could form a reasonable
basis for any such action, suit, proceeding or claim; (vi) the Company and the Subsidiaries
have complied with the terms of each agreement pursuant to which Intellectual Property has
been licensed to the Company or any Subsidiary, except for non compliance that would not,
individually or in the aggregate, have a Material Adverse Effect, and all such agreements
are in full force and effect; and (vii) to the Company’s knowledge, there is no patent or
patent application that contains claims that interfere with the issued or pending claims of
any of the Intellectual Property;
(x) except for matters which would not, individually or in the aggregate, have a
Material Adverse Effect and except with respect to the Office & Professional Employees
International Union (the “OPEIU”), (i) there is (A) no unfair labor practice complaint
pending or, to the Company’s knowledge, threatened against the Company or any of the
Subsidiaries before the National Labor Relations Board, and no grievance or arbitration
proceeding arising out of or under collective bargaining agreements is pending or, to the
Company’s knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending
or, to the Company’s knowledge, threatened against the Company or any of the Subsidiaries
and (C) no union representation dispute currently existing concerning the employees of the
Company or any of the Subsidiaries, and (ii) to the Company’s knowledge, (A) no union
organizing activities are currently taking place concerning the employees of the Company or
any of the Subsidiaries and (B) there has been no violation of any federal, state, local or
foreign law relating to discrimination in the hiring, promotion or pay of employees, any
applicable wage or hour laws or any provision of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”), or the rules and regulations promulgated thereunder
concerning the employees of the Company or any of the Subsidiaries;
(y) except as disclosed in the Registration Statement, the Pre-Pricing Prospectus, the
Prospectus and the Permitted Free Writing Prospectuses, if any, the Company and the
Subsidiaries and their respective properties, assets and operations are in compliance with,
and the Company and the Subsidiaries hold all permits, authorizations and approvals required
under, Environmental Laws (as defined below), except to the extent that failure to so comply
or to hold such permits, authorizations or approvals would not, individually or in the
aggregate, have a Material Adverse Effect; except as disclosed in the Registration
Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free Writing
Prospectuses, if any, and except as would not, individually or in the aggregate, have a
Material Adverse Effect, there are no past, present or, to the Company’s knowledge,
reasonably anticipated future events, conditions or circumstances that could reasonably be
expected to give rise to any costs or liabilities to the Company or the Subsidiaries under,
or to interfere with or prevent compliance by the Company or the Subsidiaries with,
Environmental Laws; except as disclosed in the Registration
14
Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free Writing
Prospectuses, if any, and except as would not, individually or in the aggregate, have a
Material Adverse Effect, neither the Company nor any of the Subsidiaries (i) to the
Company’s knowledge, is the subject of any investigation, (ii) has received any notice or
claim, (iii) is a party to any pending or, to the Company’s knowledge, threatened action,
suit or proceeding, (iv) is bound by any judgment, decree or order or (v) has entered into
any agreement, in each case relating to any alleged violation of any Environmental Law or
any actual or alleged release or threatened release or cleanup at any location of any
Hazardous Materials (as defined below) (as used herein, “Environmental Law” means any
federal, state, local or foreign law, statute, ordinance, rule, regulation, order, decree,
judgment, injunction, permit, license, authorization or other binding requirement, or common
law, relating to health, safety or the protection, cleanup or restoration of the environment
or natural resources, including those relating to the distribution, processing, generation,
treatment, storage, disposal, transportation, other handling or release or threatened
release of Hazardous Materials, and “Hazardous Materials” means any material (including,
without limitation, pollutants, contaminants, hazardous or toxic substances or wastes) that
is regulated by or may give rise to liability under any Environmental Law);
(z) in the ordinary course of its business, the Company conducts periodic reviews of
the effect of the Environmental Laws on its and its Subsidiaries’ business, operations and
properties, in the course of which it identifies and evaluates associated costs and
liabilities (including, without limitation, any capital or operating expenditures required
for cleanup, closure of properties or compliance with the Environmental Laws or any permit,
license or approval, any related constraints on operating activities and any potential
liabilities to third parties);
(aa) except as disclosed in the Registration Statement, the Pre-Pricing Prospectus, the
Prospectus and the Permitted Free Writing Prospectuses, if any, all material tax returns
required to be filed by the Company and each of the Subsidiaries have been filed, and all
taxes and other assessments of a similar nature (whether imposed directly or through
withholding), including any interest, additions to tax or penalties applicable thereto, due
or claimed to be due from such entities have been paid, other than those being contested in
good faith and for which adequate reserves have been provided or those that are individually
and in the aggregate immaterial in amount and significance;
(bb) the Company, either directly or through one or more Subsidiaries, maintains
insurance covering its and its Subsidiaries’ material properties, operations, personnel and
businesses as the Company deems adequate and as previously made available to the
Underwriters or their representatives; such insurance insures against such losses and risks
to an extent which is adequate in accordance with customary industry practice to protect the
Company and the Subsidiaries and their businesses; all such insurance is fully in force on
the date hereof and will be fully in force at the time of purchase and any additional time
of purchase, if any; neither the Company nor any Subsidiary has reason to believe that it
will not be able to renew any such insurance as
15
and when such insurance expires or to obtain similar coverage from similar types of
insurers;
(cc) neither the Company nor any of the Subsidiaries has sustained since the date of
the last audited financial statements included in the Registration Statement, the
Pre-Pricing Prospectus, the Prospectus and the Permitted Free Writing Prospectuses, if any,
any material loss or material interference with its respective business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, except with respect to the
aircraft accident that occurred in Indianapolis, Indiana on February 2, 2006;
(dd) the Company has not sent or received any communication regarding termination of,
or intent not to renew, any of the contracts or agreements referred to or described in the
Pre-Pricing Prospectus, the Prospectus or any Permitted Free Writing Prospectus, or referred
to or described in, or filed as an exhibit to, the Registration Statement or any
Incorporated Document, and no such termination or non-renewal has been threatened by the
Company or, to the Company’s knowledge, any other party to any such contract or agreement,
other than, in each, case, the collective bargaining agreement with the OPEIU and the
indenture governing the Company’s 93/8% senior notes due 2009 pursuant to the Tender Offer;
(ee) the Company and each of the Subsidiaries maintains a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorization; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles 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 existing
assets at reasonable intervals and appropriate action is taken with respect to any
differences;
(ff) the Company has established and maintains and evaluates “disclosure controls and
procedures” (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act)
and “internal control over financial reporting” (as such term is defined in Rule 13a-15 and
15d-15 under the Exchange Act); such disclosure controls and procedures are designed to
ensure that material information relating to the Company, including its consolidated
subsidiaries, is made known to the Company’s Chief Executive Officer and its Chief Financial
Officer by others within those entities, and such disclosure controls and procedures are
effective to perform the functions for which they were established; the Company’s
independent auditors and the Audit Committee of the Board of Directors of the Company have
been advised of: (i) any significant deficiencies, if any, in the design or operation of
internal controls which could adversely affect the Company’s ability to record, process,
summarize, and report financial data; and (ii) any fraud, if any, whether or not material,
that involves management or other employees who have a role in the Company’s internal
controls; any material weaknesses, if any, in internal controls have been identified for the
Company’s independent auditors; and since
16
the date of the most recent evaluation of the effectiveness of such disclosure controls
and procedures and internal controls, there have been no significant changes in internal
controls or in other factors that could significantly affect internal controls, including
any corrective actions with regard to significant deficiencies and material weaknesses; the
principal executive officers (or their equivalents) and principal financial officers (or
their equivalents) of the Company have made all certifications required by the
Xxxxxxxx-Xxxxx Act of 2002 (the “Xxxxxxxx-Xxxxx Act”) and any related rules and regulations
promulgated by the Commission, and the statements contained in each such certification are
complete and correct; the Company, the Subsidiaries and, to the Company’s knowledge, its
directors and officers (in their capacities as such) are each in compliance in all material
respects with all applicable effective provisions of the Xxxxxxxx-Xxxxx Act and the rules
and regulations of the Commission and the NASDAQ promulgated thereunder;
(gg) neither the Company nor any of the Subsidiaries nor, to the Company’s knowledge,
any employee or agent of the Company or the Subsidiaries has made any payment of funds of
the Company or the Subsidiaries or received or retained any funds in violation of any law,
rule or regulation, which payment, receipt or retention of funds is of a character required
to be disclosed in the Registration Statement or the Prospectus;
(hh) neither the Company nor any of the Subsidiaries nor any of their respective
directors, officers, affiliates or controlling persons has taken, directly or indirectly,
any action designed, or which has constituted or might reasonably be expected to cause or
result in, under the Exchange Act or otherwise, the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Shares; and
(ii) to the Company’s knowledge, there are no affiliations or associations between any
member of the NASD and any of the Company’s officers, directors or 5% or greater security
holders or any beneficial owner of the Company’s unregistered equity securities that were
acquired at any time on or after the 180th day immediately preceding the date the
Registration Statement was initially filed with the Commission, except as disclosed in the
Registration Statement (excluding the exhibits thereto), the Pre-Pricing Prospectus and the
Prospectus.
In addition, any certificate signed by any officer of the Company or any of the Subsidiaries
and delivered to the Underwriters or counsel for the Underwriters in connection with the offering
of the Shares shall be deemed to be a representation and warranty by the Company or Subsidiary, as
the case may be, as to matters covered thereby, to each Underwriter.
4. Certain Covenants of the Company. The Company hereby agrees:
(a) to furnish such information as may be required and otherwise to cooperate in
qualifying the Shares for offering and sale under the securities or blue sky laws of such
states as you may designate and to maintain such qualifications in effect so long as
required for the distribution of the Shares; provided, however, that the Company shall not
17
be required to qualify as a foreign corporation or to consent to the service of process
under the laws of any such jurisdiction (except service of process with respect to the
offering and sale of the Shares); and to promptly advise you of the receipt by the Company
of any notification with respect to the suspension of the qualification of the Shares for
offer or sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose;
(b) to make available to the Underwriters in New York City, as soon as practicable
after the execution of this Agreement, and thereafter from time to time to furnish to the
Underwriters, as many copies of the Prospectus (or of the Prospectus as amended or
supplemented if the Company shall have made any amendments or supplements thereto after the
date hereof) as the Underwriters may reasonably request for the purposes contemplated by the
Act; in case any Underwriter is required to deliver (whether physically or through
compliance with Rule 172 under the Act or any similar rule), in connection with the sale of
the Shares, a prospectus after the nine-month period referred to in Section 10(a)(3) of the
Act, or after the time a post-effective amendment to the Registration Statement is required
pursuant to Item 512(a) of Regulation S-K under the Act, the Company will prepare, at its
expense, promptly upon request such amendment or amendments to the Registration Statement
and the Prospectus as may be necessary to permit compliance with the requirements of Section
10(a)(3) of the Act or Item 512(a) of Regulation S-K under the Act, as the case may be;
(c) if, at the time this Agreement is executed and delivered, it is necessary or
appropriate for any post-effective amendment to the Registration Statement, or a
Registration Statement under Rule 462(b) under the Act, to be filed with the Commission and
become effective before the Shares may be sold, the Company will use its reasonable efforts
to cause such post-effective amendment to be filed and become effective, and will pay any
applicable fees in accordance with the Act, as soon as possible and the Company will advise
you promptly and, if requested by you, will confirm such advice in writing, (i) when any
such post-effective amendment thereto has become effective, and (ii) when the Prospectus
Supplement is filed with the Commission pursuant to Rule 424(b) under the Act (which the
Company agrees to file in a timely manner under such Rule);
(d) if, at any time during the period when a prospectus is required by the Act to be
delivered (whether physically or through compliance with Rule 172 under the Act or any
similar rule) in connection with any sale of Shares, the Registration Statement shall cease
to comply with the requirements of the Act with respect to eligibility for the use of the
form on which the Registration Statement was filed with the Commission, to (i) promptly
notify you, (ii) promptly file with the Commission a new registration statement under the
Act relating to the Shares, or a post-effective amendment to the Registration Statement,
which new registration statement or post-effective amendment shall comply with the
requirements of the Act and shall be in a form satisfactory to you, (iii) use its reasonable
efforts to cause such new registration statement or post-effective amendment to become
effective under the Act as soon as practicable, (iv) promptly notify you of such
effectiveness and (v) take all other action necessary or appropriate to permit the public
offering and sale of the Shares to continue as contemplated in the Prospectus;
18
all references herein to the Registration Statement shall be deemed to include each
such new registration statement or post-effective amendment, if any;
(e) for so long as a prospectus is required by the Act to be delivered (whether
physically or through compliance with Rule 172 under the Act or any similar rule) in
connection with any sale of Shares, to advise you promptly, confirming such advice in
writing (if requested by you), of any request by the Commission for amendments or
supplements to the Registration Statement, any Pre-Pricing Prospectus, the Prospectus or any
Permitted Free Writing Prospectus or for additional information with respect thereto, or of
notice of institution of proceedings for, or the entry of a stop order, suspending the
effectiveness of the Registration Statement and, if the Commission should enter a stop order
suspending the effectiveness of the Registration Statement, to make every reasonable effort
to obtain the lifting or removal of such order as soon as possible; to advise you promptly
of any proposal to amend or supplement the Registration Statement, any Pre-Pricing
Prospectus, or the Prospectus, and to provide you and Underwriters’ counsel copies of any
such documents for review and comment a reasonable amount of time prior to any proposed
filing and to file no such amendment or supplement to which you shall reasonably object in
writing;
(f) subject to Section 4(e) hereof, to file promptly all reports and documents and any
preliminary or definitive proxy or information statement required to be filed by the Company
with the Commission in order to comply with the Exchange Act for so long as a prospectus is
required by the Act to be delivered (whether physically or through compliance with Rule 172
under the Act or any similar rule) in connection with any sale of Shares; and to provide
you, for your review and comment, with a copy of such reports and statements and other
documents to be filed by the Company pursuant to Section 13, 14 or 15(d) of the Exchange Act
during such period a reasonable amount of time prior to any proposed filing, and to file no
such report, statement or document to which you shall reasonably object in writing; and to
promptly notify you of such filing;
(g) to advise the Underwriters promptly of the happening of any event known to the
Company within the period during which a prospectus is required to be delivered (whether
physically or through compliance with Rule 172 under the Act or any similar rule) in
connection with any sale of Shares, which event could require the making of any change in
the Prospectus then being used so that the Prospectus would not include an 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 are made, not misleading, and to
advise the Underwriters promptly if, during such period, it shall become necessary to amend
or supplement the Prospectus to cause the Prospectus to comply with the requirements of the
Act, and, in each case, during such time, subject to Section 4(e) hereof, to prepare and
furnish, at the Company’s expense, to the Underwriters promptly such amendments or
supplements to such Prospectus as may be necessary to reflect any such change or to effect
such compliance;
(h) to make generally available to its security holders, and to deliver to you, an
earnings statement of the Company (which will satisfy the provisions of Section 11(a)
19
of the Act and Rule 158 promulgated thereunder) covering a period of twelve months
beginning after the effective date of the Registration Statement (as defined in Rule 158(c)
of the Act) as soon as is reasonably practicable after the termination of such twelve-month
period;
(i) to furnish to you two copies of the Registration Statement, as initially filed with
the Commission, and of all amendments thereto (including all exhibits thereto) and, upon
request, sufficient copies of the foregoing (other than exhibits) for distribution of a copy
to each of the other Underwriters;
(j) to furnish to you as early as reasonably practicable prior to the time of purchase
and the additional time of purchase, as the case may be, but not later than two business
days prior thereto, a copy of the latest available unaudited interim consolidated financial
statements, if any, of the Company and the Subsidiaries which have been read by the
Company’s independent registered public accountants, as stated in their letter to be
furnished pursuant to Section 6(b) hereof;
(k) to apply the net proceeds from the sale of the Shares in the manner set forth under
the caption “Use of Proceeds” in the Prospectus Supplement;
(l) to pay all costs, expenses, fees and taxes in connection with (i) the preparation
and filing of the Registration Statement, the Basic Prospectus, the Pre-Pricing Prospectus,
the Prospectus Supplement, the Prospectus, each Permitted Free Writing Prospectus, and any
amendments or supplements thereto, and the printing and furnishing of copies of each thereof
to the Underwriters and to dealers (including costs of mailing and shipment), (ii) the
registration, issue, sale and delivery of the Shares including any stock or transfer taxes
and stamp or similar duties payable upon the sale, issuance or delivery of the Shares to the
Underwriters, (iii) the producing, word processing and/or printing of this Agreement, any
Agreement Among Underwriters, any dealer agreements, any Powers of Attorney and any closing
documents (including compilations thereof) and the reproduction and/or printing and
furnishing of copies of each thereof to the Underwriters and (except closing documents) to
dealers (including costs of mailing and shipment), (iv) the qualification of the Shares for
offering and sale under state or foreign laws and the determination of their eligibility for
investment under state or foreign law as aforesaid (including the associated filing fees and
the reasonably incurred legal fees and disbursements of counsel for the Underwriters) and
the printing and furnishing of copies of any blue sky surveys or legal investment surveys to
the Underwriters and to dealers, (v) any listing of the Shares on any securities exchange or
qualification of the Shares for quotation on the NASDAQ and any registration thereof under
the Exchange Act, (vi) any filing for review of the public offering of the Shares by the
NASD, including the associated filing fees and other disbursements of counsel to the
Underwriters relating to NASD matters, (vii) the fees and disbursements of any transfer
agent or registrar for the Shares, (viii) the costs and expenses of the Company relating to
presentations or meetings undertaken in connection with the marketing of the offering and
sale of the Shares to prospective investors and the Underwriters’ sales forces, including,
without limitation, expenses associated with the production of road show slides and
graphics, fees and
20
expenses of any consultants engaged in connection with the road show presentations,
travel, lodging and other expenses incurred by the officers of the Company and any such
consultants, and the cost of any aircraft chartered in connection with the road show, and
(ix) the performance of the Company’s other obligations hereunder; provided, however, that,
except as otherwise expressly set forth in this Agreement, the Underwriters shall pay their
own costs and expenses, including the costs and expenses of counsel for the Underwriters;
(m) to comply with Rule 433(d) under the Act (without reliance on Rule 164(b) under the
Act) and with Rule 433(g) under the Act;
(n) beginning on the date hereof and ending on, and including, the date that is 90 days
after the date of the Prospectus Supplement (the “Lock-Up Period”), without the prior
written consent of UBS, not to (i) issue, sell, offer to sell, contract or agree to sell,
hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to
dispose of, directly or indirectly, any Common Stock or securities convertible into or
exchangeable or exercisable for Common Stock or warrants or other rights to purchase Common
Stock or any other securities of the Company that are substantially similar to Common Stock,
or (ii) file or cause to be declared effective a registration statement under the Act
relating to the offer and sale of any shares of Common Stock or securities convertible into
or exercisable or exchangeable for Common Stock or other rights to purchase Common Stock or
any other securities of the Company that are substantially similar to Common Stock, except
for (i) the registration of the Shares and the sales to the Underwriters pursuant to this
Agreement, (ii) issuances of Common Stock upon the exercise of options or warrants disclosed
as outstanding in the Registration Statement (excluding the exhibits thereto), the
Pre-Pricing Prospectus and the Prospectus, (iii) the issuance of employee stock options not
exercisable during the Lock-Up Period pursuant to stock option plans described in the
Registration Statement (excluding the exhibits thereto), the Pre-Pricing Prospectus and the
Prospectus and (iv) file a registration statement relating to the registration and exchange
offer of the senior notes issued in the Notes Offering; provided, however, that if (a)
during the period that begins on the date that is fifteen (15) calendar days plus three (3)
business days before the last day of the Lock-Up Period and ends on the last day of the
Lock-Up Period, the Company issues an earnings release or material news or a material event
relating to the Company occurs, or (b) prior to the expiration of the Lock-Up Period, the
Company announces that it will release earnings results during the sixteen (16) day period
beginning on the last day of the Lock-Up Period, then the restrictions imposed by this
Section 4(n) shall continue to apply until the expiration of the date that is fifteen (15)
calendar days plus three (3) business days after the date on which the issuance of the
earnings release or the material news or material event occurs;
(o) not, at any time at or after the execution of this Agreement, to, directly or
indirectly, offer or sell any Shares by means of any “prospectus” (within the meaning of the
Act), or use any “prospectus” (within the meaning of the Act) in connection with the offer
or sale of the Shares, in each case other than the Prospectus;
21
(p) not to, and to cause the Subsidiaries not to, take, directly or indirectly, any
action designed, or which will constitute, or has constituted, or might 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 Shares; and
(q) to maintain a transfer agent and, if necessary under the jurisdiction of
incorporation of the Company, a registrar for the Common Stock.
5. Reimbursement of Underwriters’ Expenses. If the Shares are not delivered for any
reason other than the termination of this Agreement pursuant to Section 7 and the fifth paragraph
of Section 8 hereof or the default by one or more of the Underwriters in its or their respective
obligations hereunder, the Company shall, in addition to paying the amounts described in Section
4(n) hereof, reimburse the Underwriters for all of their reasonably incurred out-of-pocket
expenses, including the reasonably incurred fees and disbursements of their counsel.
6. Conditions of Underwriters’ Obligations. The several obligations of the
Underwriters hereunder are subject to the accuracy of the representations and warranties on the
part of the Company on the date hereof, at the time of purchase and, if applicable, at the
additional time of purchase, the performance by the Company of its obligations hereunder and to the
following additional conditions precedent:
(a) The Company shall furnish to you at the time of purchase and, if applicable, at the
additional time of purchase, an opinion of Akin Gump Xxxxxxx Xxxxx & Xxxx LLP, special
counsel for the Company, with respect to the laws of the State of New York and the federal
laws of the United States, addressed to the Underwriters, and dated the time of purchase or
the additional time of purchase, as the case may be, with reproduced copies for each of the
other Underwriters and in form and substance satisfactory to Xxxxxx & Xxxxxx L.L.P., counsel
for the Underwriters, substantially in the form of Exhibit B hereto:
(b) The Company shall furnish to you at the time of purchase and, if applicable, at the
additional time of purchase, an opinion of Jones, Walker, Waechter, Poitevent, Carrère &
Xxxxxxx, L.L.P., counsel for the Company, with respect to the laws of the State of
Louisiana, addressed to the Underwriters, and dated the time of purchase or the additional
time of purchase, as the case may be, with reproduced copies for each of the other
Underwriters and in form and substance satisfactory to Xxxxxx & Xxxxxx L.L.P., counsel for
the Underwriters, substantially in the form of Exhibit C hereto:
(c) You shall have received from Deloitte & Touche LLP letters dated, respectively, the
date of this Agreement, the date of the Prospectus Supplement, the time of purchase and, if
applicable, the additional time of purchase, and addressed to the Underwriters (with
reproduced copies for each of the Underwriters) in the forms satisfactory to UBS, which
letters shall cover, without limitation, the various financial disclosures contained in the
Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any.
22
(d) You shall have received at the time of purchase and, if applicable, at the
additional time of purchase, the favorable opinion of Xxxxxx & Xxxxxx L.L.P., counsel for
the Underwriters, dated the time of purchase or the additional time of purchase, as the case
may be, as to the matters referred to in subparagraphs (i), (ii), (iii) (with respect to the
Shares only), (iv), (v) and the last subparagraph of paragraph (a) of this Section 6.
(e) No Prospectus or amendment or supplement to the Registration Statement or the
Prospectus, including documents deemed to be incorporated by reference therein, shall have
been filed to which you object in writing.
(f) The Registration Statement and any registration statement required to be filed,
prior to the sale of the Shares, under the Act pursuant to Rule 462(b) shall have been filed
and shall have become effective under the Act. The Prospectus Supplement shall have been
filed with the Commission pursuant to Rule 424(b) under the Act at or before 5:30 P.M., New
York City time, on the second full business day after the date of this Agreement (or such
earlier time as may be required under the Act).
(g) Prior to and at the time of purchase, and, if applicable, the additional time of
purchase, (i) no stop order with respect to the effectiveness of the Registration Statement
shall have been issued under the Act or proceedings initiated under Section 8(d) or 8(e) of
the Act; (ii) the Registration Statement and all amendments thereto shall 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 not misleading; (iii) neither the
Pre-Pricing Prospectus nor the Prospectus, and no amendment or supplement thereto, shall
include an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they are
made, not misleading; (iv) no Disclosure Package, and no amendment or supplement thereto,
shall include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they are made, not misleading; and (v) none of the Permitted Free Writing
Prospectuses, if any, shall include an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they are made, not misleading.
(h) The Company will, at the time of purchase and, if applicable, at the additional
time of purchase, deliver to you a certificate of its Chief Executive Officer and its Chief
Financial Officer to the form attached as Exhibit D hereto.
(i) You shall have received signed Lock-up Agreements referred to in Section 3(t)
hereof.
(j) The Company shall have furnished to you such other documents and certificates as to
the accuracy and completeness of any statement in the Registration Statement, any
Pre-Pricing Prospectus, the Prospectus or any Permitted Free Writing as of the time of
purchase and, if applicable, the additional time of purchase, as you may reasonably request.
23
(k) The Shares shall have been approved for quotation on NASDAQ, subject only to notice
of issuance at or prior to the time of purchase or the additional time of purchase, as the
case may be.
7. Effective Date of Agreement; Termination. This Agreement shall become effective
when the parties hereto have executed and delivered this Agreement.
The obligations of the several Underwriters hereunder shall be subject to termination in the
absolute discretion of UBS or any group of Underwriters (which may include UBS) which has agreed to
purchase in the aggregate at least 50% of the Firm Shares, if (x) since the time of execution of
this Agreement or the earlier respective dates as of which information is given in the Registration
Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free Writing Prospectuses,
if any, there has been any material adverse change or any development involving a prospective
material adverse change in the business, properties, management, financial condition or results of
operation of the Company and the Subsidiaries taken as a whole, which would, in UBS’ judgment or in
the judgment of such group of Underwriters, make it impracticable or inadvisable to proceed with
the public offering or the delivery of the Shares on the terms and in the manner contemplated in
the Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any, or (y) since the time of execution of this Agreement, there shall
have occurred: (i) a suspension or material limitation in trading in securities generally on the
New York Stock Exchange, the American Stock Exchange or the NASDAQ; (ii) a suspension or material
limitation in trading in the Company’s securities on NASDAQ; (iii) a general moratorium on
commercial banking activities declared by either federal or New York State authorities or a
material disruption in commercial banking or securities settlement or clearance services in the
United States; (iv) an outbreak or escalation of hostilities or acts of terrorism involving the
United States or a declaration by the United States of a national emergency or war; or (v) any
other calamity or crisis or any change in financial, political or economic conditions in the United
States or elsewhere, if the effect of any such event specified in clause (iv) or (v) in UBS’
judgment or in the judgment of such group of Underwriters makes it impracticable or inadvisable to
proceed with the public offering or the delivery of the Shares on the terms and in the manner
contemplated in the Registration Statement, the Pre-Pricing Prospectus, the Prospectus and the
Permitted Free Writing Prospectuses, if any, or (z) there shall have occurred any downgrading, or
any notice or announcement shall have been given or made of (i) any intended or potential
downgrading or (ii) any watch, review or possible change that does not indicate an affirmation or
improvement, in the rating accorded any securities of or guaranteed by the Company or any
Subsidiary by any “nationally recognized statistical rating organization,” as that term is defined
in Rule 436(g)(2) under the Act.
If UBS or any group of Underwriters elects to terminate this Agreement as provided in this
Section 7, the Company and each other Underwriter shall be notified promptly in writing.
If the sale to the Underwriters of the Shares, as contemplated by this Agreement, is not
carried out by the Underwriters for any reason permitted under this Agreement or if such sale is
not carried out because the Company shall be unable to comply with any of the terms of this
Agreement, the Company shall not be under any obligation or liability under this Agreement
24
(except to the extent provided in Sections 4(n), 5 and 9 hereof), and the Underwriters shall
be under no obligation or liability to the Company under this Agreement (except to the extent
provided in Section 7 hereof) or to one another hereunder.
8. Increase in Underwriters’ Commitments. Subject to Sections 6 and 7 hereof, if any
Underwriter shall default in its obligation to take up and pay for the Firm Shares to be purchased
by it hereunder (otherwise than for a failure of a condition set forth in Section 6 hereof or by
UBS or the group of underwriters referred to in Section 7 for a reason sufficient to justify the
termination of this Agreement under the provisions of Section 7 hereof) and if the number of Firm
Shares which all Underwriters so defaulting shall have agreed but failed to take up and pay for
does not exceed 10% of the total number of Firm Shares, the non defaulting Underwriters shall take
up and pay for (in addition to the aggregate number of Firm Shares they are obligated to purchase
pursuant to Section 1 hereof) the number of Firm Shares agreed to be purchased by all such
defaulting Underwriters, as hereinafter provided. Such Shares shall be taken up and paid for by
such non-defaulting Underwriters in such amount or amounts as you may designate with the consent of
each Underwriter so designated or, in the event no such designation is made, such Shares shall be
taken up and paid for by all non-defaulting Underwriters pro rata in proportion to the aggregate
number of Firm Shares set opposite the names of such non-defaulting Underwriters in Schedule A.
Without relieving any defaulting Underwriter from its obligations hereunder, the Company
agrees with the non-defaulting Underwriters that it will not sell any Firm Shares hereunder unless
all of the Firm Shares are purchased by the Underwriters (or by substituted Underwriters selected
by you with the approval of the Company or selected by the Company with your approval).
If a new Underwriter or Underwriters are substituted by the Underwriters or by the Company for
a defaulting Underwriter or Underwriters in accordance with the foregoing provision, the Company or
you shall have the right to postpone the time of purchase for a period not exceeding five business
days in order that any necessary changes in the Registration Statement and the Prospectus and other
documents may be effected.
The term Underwriter as used in this Agreement shall refer to and include any Underwriter
substituted under this Section 8 with like effect as if such substituted Underwriter had originally
been named in Schedule A.
If the aggregate number of Firm Shares which the defaulting Underwriter or Underwriters agreed
to purchase exceeds 10% of the total number of Firm Shares which all Underwriters agreed to
purchase hereunder, and if neither the non-defaulting Underwriters nor the Company shall make
arrangements within the five business day period stated above for the purchase of all the Firm
Shares which the defaulting Underwriter or Underwriters agreed to purchase hereunder, this
Agreement shall terminate without further act or deed and without any liability on the part of the
Company to any Underwriter and without any liability on the part of any non-defaulting Underwriter
to the Company. Nothing in this paragraph, and no action taken hereunder, shall relieve any
defaulting Underwriter from liability in respect of any default of such Underwriter under this
Agreement.
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9. Indemnity and Contribution.
(a) The Company agrees to indemnify, defend and hold harmless each Underwriter, its
partners, directors and officers, and any person who controls any Underwriter within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act, and the successors and
assigns of all of the foregoing persons, from and against any loss, damage, expense,
liability or claim (including the reasonable cost of investigation) which, jointly or
severally, any such Underwriter or any such person may incur under the Act, the Exchange
Act, the common law or otherwise, insofar as such loss, damage, expense, liability or claim
arises out of or is based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement (or in the Registration Statement as
amended by any post-effective amendment thereof by the Company) or arises out of or is based
upon any omission or alleged omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, except insofar as any such loss,
damage, expense, liability or claim arises out of or is based upon any untrue statement or
alleged untrue statement of a material fact contained in, and in conformity with information
concerning such Underwriter furnished in writing by or on behalf of such Underwriter through
you to the Company expressly for use in, the Registration Statement or arises out of or is
based upon any omission or alleged omission to state a material fact in the Registration
Statement in connection with such information, which material fact was not contained in such
information and which material fact was required to be stated in such Registration Statement
or was necessary to make such information not misleading or (ii) any untrue statement or
alleged untrue statement of a material fact included in the Prospectus (the term Prospectus
for the purpose of this Section 9 being deemed to include the Basic Prospectus, any
Pre-Pricing Prospectus, the Prospectus Supplement, the Prospectus and any amendments or
supplements to the foregoing), in any Permitted Free Writing Prospectus, in any “issuer
information” (as defined in Rule 433 under the Act) of the Company, which “issuer
information” is required to be, or is, filed with the Commission, or in any Prospectus
together with any combination of one or more of the Permitted Free Writing Prospectuses, if
any, or arises out of or is based upon any omission or alleged omission 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, except, with respect to such Prospectus or
Permitted Free Writing Prospectus, insofar as any such loss, damage, expense, liability or
claim arises out of or is based upon any untrue statement or alleged untrue statement of a
material fact contained in, and in conformity with information concerning such Underwriter
furnished in writing by or on behalf of such Underwriter through you to the Company
expressly for use in, such Prospectus or Permitted Free Writing Prospectus or arises out of
or is based upon any omission or alleged omission to state a material fact in such
Prospectus or Permitted Free Writing Prospectus in connection with such information, which
material fact was not contained in such information and which material fact was necessary in
order to make the statements in such information, in the light of the circumstances under
which they were made, not misleading.
26
(b) If any action, suit or proceeding (each, a “Proceeding”) is brought against an
Underwriter or any such person in respect of which indemnity may be sought against the
Company pursuant to the foregoing paragraph, such Underwriter or such person shall promptly
notify the Company in writing of the institution of such Proceeding and the Company shall
assume the defense of such Proceeding, including the employment of counsel reasonably
satisfactory to such indemnified party and payment of all fees and expenses; provided,
however, that the omission to so notify the Company shall not relieve the Company from any
liability which the Company may have to any Underwriter or any such person or otherwise,
except, in the case liabilities under this Agreement, to the extent the Company is actually
and materially prejudiced thereby. Such Underwriter or such person shall have the right to
employ its or their own counsel in any such case, but the fees and expenses of such counsel
shall be at the expense of such Underwriter or of such person unless the employment of such
counsel shall have been authorized in writing by the Company in connection with the defense
of such Proceeding or the Company shall not have, within a reasonable period of time in
light of the circumstances, employed counsel to have charge of the defense of such
Proceeding or such indemnified party or parties shall have reasonably concluded that there
may be defenses available to it which are different from, additional to or in conflict with
those available to the Company (in which case the Company shall not have the right to direct
the defense of such Proceeding on behalf of such indemnified party or parties, but the
Company may employ counsel at its own expense and participate in the defense thereof), in
any of which events such fees and expenses shall be borne by the Company and paid as
incurred (it being understood, however, that the Company shall not be liable for the
expenses of more than one separate counsel (in addition to any local counsel) in any one
Proceeding or series of related Proceedings in the same jurisdiction representing the
indemnified parties who are parties to such Proceeding). The Company shall not be liable
for any settlement of any Proceeding effected without its written consent but if settled
with the written consent of the Company, the Company agrees to indemnify and hold harmless
any Underwriter and any such person from and against any loss or liability by reason of such
settlement. Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel as contemplated by the second sentence of this paragraph, then the
indemnifying party agrees that it shall be liable for any settlement of any Proceeding
effected without its written consent if (i) such settlement is entered into more than 60
business days after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall not have fully reimbursed the indemnified party in accordance with
such request prior to the date of such settlement and (iii) such indemnified party shall
have given the indemnifying party at least 30 days’ prior notice of its intention to settle.
No indemnifying party shall, without the prior written consent of the indemnified party,
effect any settlement of any pending or threatened Proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been sought
hereunder by such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter
of such Proceeding and does not include an admission of fault, culpability or a failure to
act, by or on behalf of such indemnified party.
27
(c) Each Underwriter severally agrees to indemnify, defend and hold harmless the
Company, its directors and officers and any person who controls the Company within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act, and the successors and
assigns of all of the foregoing persons, from and against any loss, damage, expense,
liability or claim (including the reasonable cost of investigation) which, jointly or
severally, the Company or any such person may incur under the Act, the Exchange Act, the
common law or otherwise, insofar as such loss, damage, expense, liability or claim arises
out of or is based upon (i) any untrue statement or alleged untrue statement of a material
fact contained in and in conformity with information concerning such Underwriter furnished
in writing by or on behalf of such Underwriter through you to the Company expressly for use
in the Registration Statement (or in the Registration Statement as amended by any post
effective amendment thereof by the Company), or arises out of or is based upon any omission
or alleged omission to state a material fact in such Registration Statement in connection
with such information, which material fact was not contained in such information and which
material fact was required to be stated in such Registration Statement or was necessary to
make such information not misleading or (ii) any untrue statement or alleged untrue
statement of a material fact contained in, and in conformity with information concerning
such Underwriter furnished in writing by or on behalf of such Underwriter through you to the
Company expressly for use in, a Prospectus or a Permitted Free Writing Prospectus, or arises
out of or is based upon any omission or alleged omission to state a material fact in such
Prospectus or Permitted Free Writing Prospectus in connection with such information, which
material fact was not contained in such information and which material fact was necessary in
order to make the statements in such information, in the light of the circumstances under
which they were made, not misleading.
(d) If the indemnification provided for in this Section 9 is unavailable to an
indemnified party under subsections (a) and (b) of this Section 9 or insufficient to hold an
indemnified party harmless in respect of any losses, damages, expenses, liabilities or
claims referred to therein, then each applicable indemnifying party, in lieu of indemnifying
such indemnified party, shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, damages, expenses, liabilities or claims (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company on the
one hand and the Underwriters on the other hand from the offering of the Shares or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company on the one hand and of the Underwriters
on the other in connection with the statements or omissions which resulted in such losses,
damages, expenses, liabilities or claims, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and the
Underwriters on the other shall be deemed to be in the same respective proportions as the
total proceeds from the offering (net of underwriting discounts and commissions but before
deducting expenses) received by the Company and the total underwriting discounts and
commissions received by the Underwriters, bear to the aggregate public offering price of the
Shares. The relative fault of the Company on the one hand and of the Underwriters on the
other shall be determined by reference to,
28
among other things, whether the untrue statement or alleged untrue statement of a
material fact or omission or alleged omission relates to information supplied by the Company
or by the Underwriters and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses, damages, expenses, liabilities and claims
referred to in this subsection shall be deemed to include any legal or other fees or
expenses reasonably incurred by such party in connection with investigating, preparing to
defend or defending any Proceeding.
(e) The Company and the Underwriters agree that it would not be just and equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of
allocation that does not take account of the equitable considerations referred to in
subsection (c) above. Notwithstanding the provisions of this Section 9, no Underwriter
shall be required to contribute any amount in excess of the amount by which the total price
at which the Shares underwritten by such Underwriter and distributed to the public were
offered to the public exceeds the amount of any damage which such Underwriter has otherwise
been required to pay by reason of such untrue statement or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to
contribute pursuant to this Section 9 are several in proportion to their respective
underwriting commitments and not joint.
(f) The indemnity and contribution agreements contained in this Section 9 and the
covenants, warranties and representations of the Company contained in this Agreement shall
remain in full force and effect regardless of any investigation made by or on behalf of any
Underwriter, its partners, directors or officers or any person (including each partner,
officer or director of such person) who controls any Underwriter within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act, or by or on behalf of the Company,
its directors or officers or any person who controls the Company within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act, and shall survive any termination
of this Agreement or the issuance and delivery of the Shares. The Company and each
Underwriter agree promptly to notify each other of the commencement of any Proceeding
against it and, in the case of the Company, against any of the Company’s officers or
directors, as the case may be, in connection with the issuance and sale of the Shares, or in
connection with the Registration Statement, the Basic Prospectus, the Pre-Pricing
Prospectus, the Prospectus or any Permitted Free Writing Prospectus.
10. Information Furnished by the Underwriters. The statements set forth in the last
paragraph on the cover page of the Pre-Pricing Prospectus and the Prospectus and the statements set
forth in the first paragraph under the subsection titled “Commissions and Discounts,” the
subsection titled “Price Stabilization, Short Positions, Passive Market Making,” the statements set
forth in the first paragraph under the subsection titled “Electronic Distributions” and the
statements set forth in the second paragraph of that subsection to the extent they relate to any
29
underwriter or selling group member under the caption “Underwriting” in the Pre-Pricing
Prospectus and the Prospectus constitute the only information furnished by or on behalf of the
Underwriters as such information is referred to in Sections 3 and 9 hereof.
11. Notices. Except as otherwise herein provided, all statements, requests, notices
and agreements shall be in writing or by telegram and, if to the Underwriters, shall be sufficient
in all respects if delivered or sent to UBS Securities LLC, 000 Xxxx Xxxxxx, Xxx Xxxx, X.X.
00000-0000, Attention: Syndicate Department; if to the Company, shall be sufficient in all
respects if delivered or sent to the Company at the offices of the Company at 0000 XX Xxxxxxxxxx
Xxxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000, Attention: Xxxxxxx X. XxXxxx.
12. Governing Law; Construction. This Agreement and any claim, counterclaim or
dispute of any kind or nature whatsoever arising out of or in any way relating to this Agreement
(“Claim”), directly or indirectly, shall be governed by, and construed in accordance with, the laws
of the State of New York. The Section headings in this Agreement have been inserted as a matter of
convenience of reference and are not a part of this Agreement.
13. Submission to Jurisdiction. Except as set forth below, no Claim may be commenced,
prosecuted or continued in any court other than the courts of the State of New York located in the
City and County of New York or in the United States District Court for the Southern District of New
York, which courts shall have jurisdiction over the adjudication of such matters, and the Company
consents to the jurisdiction of such courts and personal service with respect thereto. The Company
hereby consents to personal jurisdiction, service and venue in any court in which any Claim arising
out of or in any way relating to this Agreement is brought by any third party against UBS or any
indemnified party. Each of UBS and the Company (on its behalf and, to the extent permitted by
applicable law, on behalf of its stockholders and affiliates) waives all right to trial by jury in
any action, proceeding or counterclaim (whether based upon contract, tort or otherwise) in any way
arising out of or relating to this Agreement. The Company agrees that a final judgment in any such
action, proceeding or counterclaim brought in any such court shall be conclusive and binding upon
the Company and may be enforced in any other courts to the jurisdiction of which the Company is or
may be subject, by suit upon such judgment.
14. Parties at Interest. The Agreement herein set forth has been and is made solely
for the benefit of the Underwriters and the Company and to the extent provided in Section 9 hereof
the controlling persons, directors and officers referred to in such section, and their respective
successors, assigns, heirs, personal representatives and executors and administrators. No other
person, partnership, association or corporation (including a purchaser, as such purchaser, from any
of the Underwriters) shall acquire or have any right under or by virtue of this Agreement.
15. No Fiduciary Relationship. The Company hereby acknowledges that the Underwriters
are acting solely as underwriters in connection with the purchase and sale of the Company’s
securities. The Company further acknowledges that the Underwriters are acting pursuant to a
contractual relationship created solely by this Agreement entered into on an arm’s length basis,
and in no event do the parties intend that the Underwriters act or be responsible as a fiduciary to
the Company, its management, stockholders or creditors or any other person in connection with any
activity that the Underwriters may undertake or have undertaken in
30
furtherance of the purchase and sale of the Company’s securities, either before or after the
date hereof. The Underwriters hereby expressly disclaim any fiduciary or similar obligations to
the Company, either in connection with the transactions contemplated by this Agreement or any
matters leading up to such transactions, and the Company hereby confirms its understanding and
agreement to that effect. The Company and the Underwriters agree that they are each responsible
for making their own independent judgments with respect to any such transactions and that any
opinions or views expressed by the Underwriters to the Company regarding such transactions,
including, but not limited to, any opinions or views with respect to the price or market for the
Company’s securities, do not constitute advice or recommendations to the Company. The Company
hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may
have against the Underwriters with respect to any breach or alleged breach of any fiduciary or
similar duty to the Company in connection with the transactions contemplated by this Agreement or
any matters leading up to such transactions.
16. Counterparts. This Agreement may be signed by the parties in one or more
counterparts which together shall constitute one and the same agreement among the parties.
17. Successors and Assigns. This Agreement shall be binding upon the Underwriters and
the Company and their successors and assigns and any successor or assign of any substantial portion
of the Company’s and any of the Underwriters’ respective businesses and/or assets.
18. Miscellaneous. UBS, an indirect, wholly owned subsidiary of UBS AG, is not a bank
and is separate from any affiliated bank, including any U.S. branch or agency of UBS AG. Because
UBS is a separately incorporated entity, it is solely responsible for its own contractual
obligations and commitments, including obligations with respect to sales and purchases of
securities. Securities sold, offered or recommended by UBS are not deposits, are not insured by
the Federal Deposit Insurance Corporation, are not guaranteed by a branch or agency, and are not
otherwise an obligation or responsibility of a branch or agency.
A lending affiliate of UBS may have lending relationships with issuers of securities
underwritten or privately placed by UBS. To the extent required under the securities laws,
prospectuses and other disclosure documents for securities underwritten or privately placed by UBS
will disclose the existence of any such lending relationships and whether the proceeds of the issue
will be used to repay debts owed to affiliates of UBS.
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If the foregoing correctly sets forth the understanding among the Company and the
Underwriters, please so indicate in the space provided below for the purpose, whereupon this
agreement and your acceptance shall constitute a binding agreement among the Company and the
Underwriters, severally.
| Very truly yours, PHI, INC. |
||||
| By: | /s/ Xxxxxxx X. XxXxxx | |||
| Name: | Xxxxxxx X. XxXxxx | |||
| Title: | Chief Financial Officer, Treasurer and Secretary | |||
Signature
Page to the Underwriting Agreement
ACCEPTED AND AGREED TO as of
the date first above written, on behalf
of themselves and the other several
Underwriters named in Schedule A
UBS SECURITIES LLC
XXXXXX XXXX INCORPORATED
the date first above written, on behalf
of themselves and the other several
Underwriters named in Schedule A
UBS SECURITIES LLC
XXXXXX XXXX INCORPORATED
| By: | UBS SECURITIES LLC | |||||
By: |
/s/ Xxx Xxxxx | |||||
| Name: | Xxx Xxxxx | |||||
| Title: | Executive Director | |||||
By: |
/s/ Xxxxxxx Xxxx | |||||
| Name: | Xxxxxxx Xxxx | |||||
| Title: | Associate Director | |||||
2
