US AIRWAYS GROUP, INC. (a Delaware corporation) 3,050,000 Shares of Common Stock (Par Value $0.01 Per Share) PURCHASE AGREEMENT
Exhibit 1.1
US AIRWAYS GROUP, INC.
(a Delaware corporation)
(a Delaware corporation)
3,050,000 Shares of Common Stock
(Par Value $0.01 Per Share)
(Par Value $0.01 Per Share)
Dated: May 31, 2006
TABLE OF CONTENTS
| Page | ||||||||||
| SECTION 1. | Representations and Warranties | 1 | ||||||||
| (a) | Representations and Warranties by the Company | 1 | ||||||||
| (i) | Registration Statement | 1 | ||||||||
| (ii) | Conformity with the Securities Act | 2 | ||||||||
| (iii) | Company not an Ineligible Issuer | 2 | ||||||||
| (iv) | No Misstatements of Material Fact or Omissions | 3 | ||||||||
| (v) | No Conflict of Information | 3 | ||||||||
| (vi) | Independent Accountants | 3 | ||||||||
| (vii) | Financial Statements | 4 | ||||||||
| (viii) | No Material Adverse Change in Business | 4 | ||||||||
| (ix) | Publicly Filed Documents | 4 | ||||||||
| (x) | Good Standing of the Company | 5 | ||||||||
| (xi) | Good Standing of Subsidiaries | 5 | ||||||||
| (xii) | Capitalization | 5 | ||||||||
| (xiii) | Authorization of Agreement | 5 | ||||||||
| (xiv) | Absence of Defaults and Conflicts | 5 | ||||||||
| (xv) | Absence of Labor Dispute | 6 | ||||||||
| (xvi) | Absence of Proceedings | 6 | ||||||||
| (xvii) | Accuracy of Exhibits | 6 | ||||||||
| (xviii) | Possession of Intellectual Property | 7 | ||||||||
| (xix) | Absence of Further Requirements | 7 | ||||||||
| (xx) | Possession of Licenses and Permits | 7 | ||||||||
| (xxi) | Title to Property | 7 | ||||||||
| (xxii) | Investment Company Act | 8 | ||||||||
| (xxiii) | Environmental Laws | 8 | ||||||||
| (xxiv) | Registration Rights | 8 | ||||||||
| (xxv) | Statistical and Market-Related Data | 9 | ||||||||
| (xxvi) | ERISA | 9 | ||||||||
| (xxvii) | Tax Returns and Payment of Taxes | 9 | ||||||||
| (xxviii) | Insurance | 9 | ||||||||
| (xxix) | No Stabilization or Manipulation | 10 | ||||||||
| (xxx) | Certain Transactions | 10 | ||||||||
| (xxxi) | Accounting and Other Controls | 10 | ||||||||
| (xxxii) | Foreign Corrupt Practices Act | 10 | ||||||||
| (xxxiii) | Absence of Restrictions on Dividends by Subsidiaries | 11 | ||||||||
| (xxxiv) | Compliance with Xxxxxxxx-Xxxxx Act | 11 | ||||||||
| (xxxv) | Listing of Shares | 11 | ||||||||
| (xxxvi) | No Pending Proceeding | 11 | ||||||||
| (b) | Representations and Warranties by the Selling Shareholder | 11 | ||||||||
| (i) | Accurate Disclosure | 11 | ||||||||
| (ii) | Authorization of This Agreement | 11 | ||||||||
| (iii) | Noncontravention | 11 | ||||||||
| (iv) | Acquisition of the Shares | 12 | ||||||||
i
| Page | ||||||||||
| (v) | Valid Title | 12 | ||||||||
| (vi) | Publicly Filed Documents | 12 | ||||||||
| (vii) | Delivery of Shares | 12 | ||||||||
| (viii) | Absence of Manipulation | 13 | ||||||||
| (ix) | Absence of Further Requirements | 13 | ||||||||
| (x) | No Association with NASD | 13 | ||||||||
| (c) | Officer’s Certificates | 13 | ||||||||
| SECTION 2. | Sale and Delivery to Underwriter; Closing | 13 | ||||||||
| (a) | Shares | 13 | ||||||||
| (b) | Payment | 13 | ||||||||
| (c) | Denominations; Registration | 14 | ||||||||
| SECTION 3. | Covenants of the Company and the Selling Shareholder | 14 | ||||||||
| (a) | Compliance with Securities Regulations and Commission Requests | 14 | ||||||||
| (b) | Filing of Amendments | 14 | ||||||||
| (c) | Delivery of Registration Statements | 14 | ||||||||
| (d) | Delivery of Prospectuses | 14 | ||||||||
| (e) | Continued Compliance with Securities Laws | 15 | ||||||||
| (f) | Blue Sky Qualifications | 15 | ||||||||
| (g) | Rule 158 | 16 | ||||||||
| (h) | Listing | 16 | ||||||||
| (i) | Reporting Requirements | 16 | ||||||||
| (j) | Issuer Free Writing Prospectuses | 16 | ||||||||
| SECTION 4. | Payment of Expenses | 17 | ||||||||
| (a) | Expenses | 17 | ||||||||
| (b) | Expenses of the Selling Shareholder | 17 | ||||||||
| (c) | Termination of Agreement | 17 | ||||||||
SECTION 5.
|
Conditions of Underwriter’s Obligations | 18 | ||||||||
| (a) | Effectiveness of Registration Statement | 18 | ||||||||
| (b) | Opinions of Counsel for Company | 18 | ||||||||
| (c) | Opinion of Counsel for the Selling Shareholder | 18 | ||||||||
| (d) | Opinion of Counsel for Underwriter | 18 | ||||||||
| (e) | Officers’ Certificate | 19 | ||||||||
| (f) | Certificate of Selling Shareholder | 19 | ||||||||
| (g) | Accountant’s Comfort Letter | 19 | ||||||||
| (h) | Bring-down Comfort Letter | 19 | ||||||||
| (i) | Additional Documents | 19 | ||||||||
| (j) | Termination of Agreement | 20 | ||||||||
| SECTION 6. | Indemnification | 20 | ||||||||
| (a) | Indemnification of Underwriter by the Company | 20 | ||||||||
| (b) | Indemnification of Underwriter by the Selling Shareholder | 21 | ||||||||
| (c) | Indemnification of Company, Directors, Officers and Selling Shareholder | 21 | ||||||||
| (d) | Actions Against Parties; Notification | 22 | ||||||||
| (e) | Settlement Without Consent if Failure To Reimburse | 22 | ||||||||
| SECTION 7. | Contribution | 22 | ||||||||
ii
| Page | ||||||||||
| SECTION 8. | Representations, Warranties and Agreements To Survive Delivery | 24 | ||||||||
| SECTION 9. | Termination of Agreement | 24 | ||||||||
| (a) | Termination; General | 24 | ||||||||
| (b) | Liabilities | 24 | ||||||||
| SECTION 10. | Default by the Selling Shareholder | 24 | ||||||||
| SECTION 11. | No Fiduciary Duties | 25 | ||||||||
| SECTION 12. | Notices | 25 | ||||||||
| SECTION 13. | Parties | 25 | ||||||||
| SECTION 14. | GOVERNING LAW | 25 | ||||||||
| SECTION 15. | TIME | 26 | ||||||||
| SECTION 16. | Counterparts | 26 | ||||||||
| SECTION 17. | Effect of Headings | 26 | ||||||||
| SECTION 18. | Submission to Jurisdiction | 26 | ||||||||
SCHEDULES |
||||||||||
| Schedule A | – | Underwritten Shares | Sch A-1 | |||||||
| Schedule B | – | General Use Free Writing Prospectuses | Sch B-1 | |||||||
EXHIBITS |
||||||||||
| Exhibit A-1 | – | Form of Opinion of SASM&F | X-0 | |||||||
| Xxxxxxx X-0 | – | Form of Opinion of General Counsel of the Company | A-2 | |||||||
| Exhibit A-3 | – | Form of Opinion of Xxxxxxxxx & Xxxxxxx | A-3 | |||||||
iii
US AIRWAYS GROUP, INC.
(a Delaware corporation)
(a Delaware corporation)
3,050,000 Shares of Common Stock
(Par Value $0.01 Per Share)
May 31, 2006
Xxxxxxx, Sachs & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Eastshore Aviation, LLC, a Delaware limited liability company (the “Selling
Shareholder”), proposes, subject to the terms and conditions contained herein, to sell to you
(the “Underwriter”), the number of shares (the “Shares”) of common stock, $0.01 par
value per share (the “Common Stock”) of US Airways Group, Inc., a Delaware corporation (the
“Company”) set forth in Schedule A.
SECTION 1. Representations and Warranties.
(a) Representations and Warranties by the Company. The Company represents and warrants to
the Underwriter as of the date hereof, as of the Applicable Time and as of the Closing Date (as
defined below) as follows:
(i) Registration Statement. A registration statement (No. 333-129896),
including a prospectus, relating to the Shares has been filed with the Securities and
Exchange Commission (“Commission”) and has become effective. “Registration
Statement” as of any time means such registration statement in the form then filed with
the Commission, including any amendment thereto, any document incorporated by reference
therein and any information in a prospectus or prospectus supplement deemed or retroactively
deemed to be a part thereof pursuant to Rule 430B (“Rule 430B”) or 430C (“Rule
430C”) under the Securities Act of 1933 (“Securities Act”) that has not been
superseded or modified. “Registration Statement” without reference to a time means
the Registration Statement as of the time of the first contract of sale for the Shares,
which time shall be considered the “Effective Date” of the Registration Statement
relating to the Shares. For purposes of this definition, information contained in a form of
prospectus or prospectus supplement that is deemed retroactively to be a part of the
Registration Statement pursuant to Rule
430B shall be considered to be included in the Registration Statement as of the time
specified in Rule 430B. “Statutory Prospectus” as of any time means the prospectus
relating to the Shares that is included in the Registration Statement immediately
prior to
that time, including any document incorporated by reference therein and any basic prospectus
or prospectus supplement deemed to be a part thereof pursuant to Rule 430B or 430C that has
not been superseded or modified. For purposes of this definition, information contained in
a form of prospectus (including a prospectus supplement) that is deemed retroactively to be
a part of the Registration Statement pursuant to Rule 430B shall be considered to be
included in the Statutory Prospectus only as of the actual time that form of prospectus
(including a prospectus supplement) is filed with the Commission pursuant to Rule 424(b)
(“Rule 424(b)”) under the Securities Act.
“Prospectus” means the Statutory Prospectus that discloses the public offering
price and other final terms of the Shares and otherwise satisfies Section 10(a) of the
Securities Act.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as
defined in Rule 433 (“Rule 433”) under the Securities Act, relating to the Shares in
the form filed or required to be filed with the Commission or, if not required to be filed,
in the form retained in the Company’s records pursuant to Rule 433(g).
“General Use Issuer Free Writing Prospectus” means any Issuer Free Writing
Prospectus that is specified in Schedule B to this Agreement.
“Limited Use Issuer Free Writing Prospectus” means any Issuer Free Writing
Prospectus that is not a General Use Issuer Free Writing Prospectus.
“Applicable Time” means 5:00 p.m. on May 31, 2006.
(ii) Conformity with the Securities Act. At the time the Registration
Statement initially became effective, at the time of each amendment thereto for the purposes
of complying with Section 10(a)(3) of the Securities Act (whether by post effective
amendment, incorporated report or form of prospectus) and on the Effective Date relating to
the Shares, the Registration Statement conformed and will conform in all respects to the
requirements of the Securities Act and the rules and regulations of the Commission
(“Rules and Regulations”) and did not and will not include any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading. The Registration Statement and the
Prospectus conform in all material respects to the requirements of the Securities Act and
the Rules and Regulations, and neither of such documents will include any untrue statement
of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading . The two preceding sentences do
not apply to statements in or omissions from any of such documents based upon written
information furnished to the Company
by the Underwriter, if any, specifically for use therein, it being understood and
agreed that the only such information is that described as such in Section 6(c) hereof.
(iii) Company not an Ineligible Issuer. (A) At the earliest time after the
filing of the Registration Statement that the Company or another offering participant made a
bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act) of the
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Shares and (B) at the date of this Agreement, the Company was not and is not an “ineligible
issuer,” as defined Rule 405 (“Rule 405”) under the Securities Act, including (x)
the Company in the preceding three years or any entity that at the time was a subsidiary not
having been convicted of a felony or misdemeanor or having been made the subject of a
judicial or administrative decree or order as described in Rule 405 and (y) the Company in
the preceding three years (1) not having had a registration statement be the subject of a
proceeding under Section 8 of the Securities Act and (2) not being the subject of a
proceeding under Section 8A of the Securities Act in connection with the offering of the
Shares, all as described in Rule 405.
(iv) No Misstatements of Material Fact or Omissions. As of the Applicable
Time, neither (A) the General Use Issuer Free Writing Prospectus(es) issued at or prior to
the Applicable Time and the Statutory Prospectus, all considered together (collectively, the
“General Disclosure Package”), nor (B) any individual Limited Use Issuer Free
Writing Prospectus, when considered together with the General Disclosure Package, included
any untrue statement of a material fact or omitted to state any material fact necessary in
order to make the statements therein, in light of the circumstances under which they were
made, not misleading. The preceding sentence does not apply to statements in or omissions
from any prospectus included in the Registration Statement or any Issuer Free Writing
Prospectus in reliance upon and in conformity with written information furnished to the
Company by the Underwriter specifically for use therein, it being understood and agreed that
the only such information furnished by the Underwriter consists of the information described
in Section 6(c) of this Agreement.
(v) No Conflict of Information. Each Issuer Free Writing Prospectus, if any,
as of its issue date and at all subsequent times through the completion of the public offer
and sale of the Shares or until any earlier date that the Company notified or notifies the
Underwriter as described in the next sentence, did not, does not and will not include any
information that conflicted, conflicts or will conflict with the information then contained
in the Registration Statement or any Statutory Prospectus; provided that the foregoing does
not apply to statements in or omissions from any Issuer Free Writing Prospectus in reliance
upon and in conformity with written information furnished to the Company by the Underwriter
specifically for use therein, it being understood and agreed that the only such information
furnished by the Underwriter consists of the information described in Section 6(c) of this
Agreement. If at any time following issuance of an Issuer Free Writing Prospectus there
occurred or occurs an event or development as a result of which such
Issuer Free Writing Prospectus conflicted or would conflict with the information then
contained in the Registration Statement or any Statutory Prospectus or included or would
include an untrue statement of a material fact or omitted or would omit to state a material
fact necessary in order to make the statements therein, in the light of the circumstances
prevailing at that subsequent time, not misleading, (A) the Company has promptly notified or
will promptly notify the Underwriter and (B) the Company has promptly amended or will
promptly amend or supplement such Issuer Free Writing Prospectus to eliminate or correct
such conflict, untrue statement or omission.
(vi) Independent Accountants. Each of the accountants who certified the
financial statements and supporting schedules included in the Registration Statement has
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advised the Company that they are independent registered public accountants as required by
the Securities Act, the Rules and Regulations and the Public Company Accounting Oversight
Board.
(vii) Financial Statements. The financial statements incorporated by reference
in the Registration Statement, the General Disclosure Package and the Prospectus, together
with the related schedules and notes, present fairly the financial position of the Company
and its consolidated subsidiaries at the dates indicated and the statement of operations,
stockholders’ equity and cash flows of the Company and its consolidated subsidiaries for the
periods specified; said financial statements have been prepared in conformity with generally
accepted accounting principles (“GAAP”) applied on a consistent basis throughout the
periods involved except as disclosed therein. The supporting schedules, if any, present
fairly in accordance with GAAP the information required to be stated therein. No financial
statements are required to be incorporated by reference in the Registration Statement that
have not been so included.
The selected financial data of the Company and the summary financial information of the
Company incorporated by reference in the Registration Statement and the Prospectus present
fairly the information shown therein and have been compiled on a basis consistent with that
of the audited financial statements incorporated by reference in the Registration Statement.
(viii) No Material Adverse Change in Business. Since the respective dates as
of which information is given in the Registration Statement, the General Disclosure Package
or the Prospectus, except as otherwise stated therein, (A) there has been no material
adverse change in the condition, financial or otherwise, or in the earnings, business
affairs, business prospects or properties of the Company and its Subsidiaries (as defined
below) considered as one enterprise, whether or not arising in the ordinary course of
business (a “Material Adverse Effect”), (B) there have been no transactions entered
into by the Company or any of its Subsidiaries, other than those in the ordinary course of
business or other than as disclosed in the Prospectus, which are material with respect to
the Company and its subsidiaries
considered as one enterprise and (C) there has been no dividend or distribution of any
kind declared, paid or made by the Company on any class of its capital stock.
(ix) Publicly Filed Documents. The documents incorporated by reference in the
Prospectus, when they became effective or were filed with the Commission, as the case may
be, conformed in all material respects to the requirements of the Securities Act or the
Securities Exchange Act of 1934, as amended (“1934 Act”), as applicable, and the rules and
regulations of the Commission thereunder, and none of such documents contained an untrue
statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; and any further
documents so filed by the Company, when such documents become effective or are filed with
the Commission by the Company, as the case may be, will comply in all material respects with
the requirements of the Securities Act or the 1934 Act, as applicable, and the rules and
regulations of the Commission thereunder and will not contain an untrue
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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.
(x) Good Standing of the Company. The Company has been duly organized and is
validly existing as a corporation in good standing under the laws of the State of Delaware
and has corporate power and authority to own, lease and operate its properties and to
conduct its business as described in the Prospectus and to enter into and perform its
obligations under this Agreement; and the Company is duly qualified as a foreign corporation
to transact business and is in good standing in each other jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure so to qualify or to be in good standing would
not result in a Material Adverse Effect.
(xi) Good Standing of Subsidiaries. Each “significant subsidiary” of the
Company (as such term in defined in Rule 1-02 of Regulation S-X (each a “Subsidiary”
and, collectively, the “Subsidiaries”) has been duly organized and is validly
existing as a corporation and in good standing (if recognized by such jurisdiction) under
the laws of the jurisdiction of its incorporation, has corporate power and authority to own,
lease and operate its properties and to conduct its business as described in the Prospectus
and is duly qualified as a foreign corporation to transact business and is in good standing
in each jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except where the failure so to
qualify or to be in good standing would not result in a Material Adverse Effect; except as
otherwise disclosed in the Prospectus, all of the issued and outstanding capital stock of
each such Subsidiary has been duly authorized and validly issued, is fully paid and
non-assessable and is owned by the Company, directly or through subsidiaries, free and clear
of any security interest, mortgage, pledge, lien, encumbrance, claim or equity; none of the
outstanding shares of
capital stock of any Subsidiary was issued in violation of the preemptive or similar
rights of any securityholder of such Subsidiary. The only subsidiaries of the Company are
the subsidiaries listed on Exhibit 21.1 to the Company’s Annual Report on Form 10-K for the
year ended December 31, 2005.
(xii) Capitalization. The authorized, issued and outstanding capital stock of
the Company was as of March 31, 2006 as set forth on the Company’s Condensed Consolidated
Balance Sheets in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2006. The shares of issued and outstanding capital stock of the Company have been
duly authorized and validly issued and are fully paid and non-assessable; none of the
outstanding shares of capital stock of the Company was issued in violation of the preemptive
or other similar rights of any securityholder of the Company.
(xiii) Authorization of Agreement. This Agreement has been duly authorized,
executed and delivered by the Company.
(xiv) Absence of Defaults and Conflicts. Neither the Company nor any of its
Subsidiaries is in violation of its charter or by-laws or in default in the performance or
observance of any obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note, lease or other
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agreement
or instrument to which the Company or any of its Subsidiaries is a party or by which it or
any of them may be bound, or to which any of the property or assets of the Company or any
Subsidiary is subject (collectively, “Agreements and Instruments”), except for such
defaults that would not result in a Material Adverse Effect; and the execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated in this
Agreement and in the Registration Statement and compliance by the Company with its
obligations under this Agreement have been duly authorized by all necessary corporate action
and do not and will not, whether with or without the giving of notice or passage of time or
both, conflict with or constitute a breach of, or default or Repayment Event (as defined
below) under, or result in the creation or imposition of any lien, charge or encumbrance
upon any property or assets of the Company or any Subsidiary pursuant to, the Agreements and
Instruments (except for such conflicts, breaches or defaults or liens, charges or
encumbrances that would not result in a Material Adverse Effect), nor will such action
result in any violation of the provisions of the charter or by-laws of the Company or any
Subsidiary or any applicable law, statute, rule, regulation, judgment, order, writ or decree
of any government, government instrumentality or court, domestic or foreign, having
jurisdiction over the Company or any of its Subsidiaries or any of their assets, properties
or operations. As used herein, a “Repayment Event” means any event or condition
which gives the holder of any note, debenture or other evidence of indebtedness (or any
person acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a portion of such indebtedness by the Company or any of its
Subsidiaries.
(xv) Absence of Labor Dispute. Except as otherwise disclosed in the Prospectus
or General Disclosure Package, no labor dispute with the employees of the Company or any
Subsidiary exists or, to the knowledge of the Company, is imminent, and the Company is not
aware of any existing or imminent labor disturbance by the employees of any of its or any
Subsidiary’s principal suppliers, manufacturers, customers or contractors, which, in either
case, may reasonably be expected to result in a Material Adverse Effect.
(xvi) Absence of Proceedings. There is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or body, domestic or
foreign, now pending, or, to the knowledge of the Company, threatened, against or affecting
the Company or any Subsidiary, which is required to be disclosed in the Registration
Statement (other than as disclosed therein), or which might reasonably be expected to result
in a Material Adverse Effect, or which might reasonably be expected to materially and
adversely affect the properties or assets thereof or the consummation of the transactions
contemplated in this Agreement or the performance by the Company of its obligations
hereunder; the aggregate of all pending legal or governmental proceedings to which the
Company or any Subsidiary is a party or of which any of their respective property or assets
is the subject which are not described in the Registration Statement, including ordinary
routine litigation incidental to the business, could not reasonably be expected to result in
a Material Adverse Effect.
(xvii) Accuracy of Exhibits. There are no contracts or documents which are
required to be described in the Registration Statement or the Prospectus or to be filed as
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exhibits to the Registration Statement which have not been so described and filed as
required.
(xviii) Possession of Intellectual Property. The Company and its Subsidiaries
own or possess, or can acquire on reasonable terms, adequate licenses, patents, patent
rights, inventions, copyrights, know-how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures),
trademarks, service marks, trade names or other intellectual property or other rights or
similar interests (collectively, “Intellectual Property”) to carry on the business
now operated by them or to be operated by them as described in the Prospectus except where
the failure to possess such licenses would not, singly or in the aggregate have a Material
Adverse Effect, and neither the Company nor any of its Subsidiaries has received any notice
or is otherwise aware of any infringement of or conflict with asserted rights of others with
respect to any Intellectual Property or of any facts or circumstances which would render any
Intellectual Property invalid or inadequate to protect the interest of the Company or any of
its Subsidiaries therein, and
which infringement or conflict (if the subject of any unfavorable decision, ruling or
finding) or invalidity or inadequacy, singly or in the aggregate, would result in a Material
Adverse Effect.
(xix) Absence of Further Requirements. No filing with, or authorization,
approval, consent, license, order, registration, qualification or decree of, any court or
governmental authority or agency is necessary or required for the performance by the Company
of its obligations hereunder, in connection with the sale of the Shares under this Agreement
or the consummation of the transactions contemplated by this Agreement, except such as have
been already obtained or as may be required under the Securities Act or the Rules and
Regulations or state securities or blue sky laws.
(xx) Possession of Licenses and Permits. The Company and its Subsidiaries
possess such permits, licenses, approvals, consents and other authorizations (collectively,
“Licenses”) issued by the appropriate federal, state, local or foreign regulatory
agencies or bodies and third parties, governmental or otherwise, necessary to conduct the
business now operated by them as described in the Prospectus or General Disclosure Package
except where the failure to possess such licenses would not, singly or in the aggregate,
have a Material Adverse Effect or as disclosed in the Prospectus or General Disclosure
Package; the Company and its Subsidiaries are in compliance with the terms and conditions of
all such Licenses, except where the failure so to comply would not, singly or in the
aggregate, have a Material Adverse Effect; all of the Licenses are valid and in full force
and effect, except when the invalidity of such Licenses or the failure of such Licenses to
be in full force and effect would not singly or in the aggregate have a Material Adverse
Effect or as disclosed in the Prospectus or General Disclosure Package; and neither the
Company nor any of its Subsidiaries has received any notice of proceedings relating to the
revocation or modification of any such Licenses which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, would result in a Material Adverse
Effect.
(xxi) Title to Property. The Company and its Subsidiaries have good and
marketable title to all real property owned by the Company and its Subsidiaries and good
title
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to all other properties owned by them, in each case, free and clear of all mortgages,
pledges, liens, security interests, claims, restrictions or encumbrances of any kind except
such as (a) are described in the Prospectus or General Disclosure Package or (b) do not,
singly or in the aggregate, materially affect the value of such property and do not
interfere with the use made and proposed to be made of such property by the Company or any
of its Subsidiaries; and all of the leases and subleases material to the business of the
Company and its Subsidiaries, considered as one enterprise, and under which the Company or
any of its Subsidiaries holds properties described in the Prospectus or General Disclosure
Package, are in full force and effect, and neither the Company nor any Subsidiary has any
notice of any material claim of any sort that has been asserted by anyone adverse to the
rights of the Company or any Subsidiary under any of the leases or subleases mentioned
above, or affecting or questioning the rights of the Company or any Subsidiary to the
continued possession of the leased or subleased premises under any such lease or sublease.
(xxii) Investment Company Act. The Company is not 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 “1940 Act”).
(xxiii) Environmental Laws. Except as described in the Registration Statement
and except as would not, singly or in the aggregate, result in a Material Adverse Effect,
(A) neither the Company nor any of its Subsidiaries is in violation of any applicable
federal, state, local or foreign statute, law, rule, regulation, ordinance, code or rule of
common law or any judicial or administrative interpretation thereof, including any judicial
or administrative order, consent, decree or judgment relating to pollution or protection of
human health, the environment (including without limitation, ambient air, surface water,
ground water, land surface or subsurface strata) or wildlife, including, without limitation,
laws and regulations relating to the release or threatened release of chemicals, pollutants,
contaminants, wastes, toxic substances, hazardous substances, petroleum or petroleum
products (collectively, “Hazardous Materials”) or to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials (collectively, “Environmental Laws”), (B) the Company and its Subsidiaries
have all permits, authorizations and approvals required under any applicable Environmental
Laws and are each in compliance with their requirements, (C) there are no pending or
threatened administrative, regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of noncompliance or violation, investigations or proceedings relating
to any Environmental Law against the Company or any of its Subsidiaries and (D) there are no
events or circumstances that might reasonably be expected to form the basis of an order for
clean-up or remediation, or an action, suit or proceeding by any private party or
governmental body or agency, against or affecting the Company or any of its Subsidiaries
relating to any Environmental Laws.
(xxiv) Registration Rights. Except as disclosed in the Registration Statement
and the Prospectus, there are no persons with registration rights or other similar rights to
have any securities registered pursuant to the Registration Statement or otherwise
registered by the Company under the Securities Act.
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(xxv) Statistical and Market-Related Data. The statistical and market-related
data included in the Registration Statement and the Prospectus are based on or derived from
sources which the Company believes to
be reliable and accurate in all material respects or represent the Company’s good faith
estimates made on the basis of data derived from such sources.
(xxvi) ERISA. Each employee benefit plan, within the meaning of Section 3(3)
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that
is maintained, administered or contributed to by the Company or any of its Subsidiaries for
employees or former employees of the Company and its Subsidiaries has been maintained in
compliance with its terms and the requirements of any applicable statutes, orders, rules and
regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as
amended (the “Code”), except to the extent that any failure to maintain, administer
or contribute to any such plan would not reasonably be expected to result in a Material
Adverse Effect. No prohibited transaction, within the meaning of Section 406 of ERISA or
Section 4975 of the Code, has occurred with respect to any such plan excluding transactions
effected pursuant to a statutory or administrative exemption, except to the extent that any
such occurrence would not reasonably be expected to result in a Material Adverse Effect.
For each such plan which is subject to the funding rules of Section 412 of the Code or
Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the
Code has been incurred, whether or not waived, and the fair market value of the assets of
each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the
present value of all benefits accrued under such plan determined using reasonable actuarial
assumptions, except to the extent that any such accumulated funding deficiency or asset
shortfall would not reasonably be expected to result in a Material Adverse Effect;
(xxvii) Tax Returns and Payment of Taxes. The Company and its Subsidiaries
have timely filed all federal, state, local and foreign tax returns that are required to be
filed or have duly requested extensions thereof and all such tax returns are true, correct
and complete, except to the extent that any failure to file or request an extension, or any
incorrectness would not reasonably be expected to result in a Material Adverse Effect. The
Company and its Subsidiaries have timely paid all taxes shown as due on such filed tax
returns (including any related assessments, fines or penalties), except to the extent that
any such taxes are being contested in good faith and by appropriate proceedings, or to the
extent that any failure to pay would not reasonably be expected to result in a Material
Adverse Effect; and adequate charges, accruals and reserves have been provided for in the
financial statements referred to in Section 1(a)(viii) above in accordance with GAAP in
respect of all federal, state, local and foreign taxes for all periods as to which the tax
liability of the Company or any of its Subsidiaries has not been finally determined or
remains open to examination by applicable taxing authorities, except to the extent that any
failure to create adequate charges, accruals and reserves would not reasonably be expected
to result in a Material Adverse Effect.
(xxviii) Insurance. The Company and its Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as the Company reasonably
believes are prudent and customary; and neither the Company
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nor any of its Subsidiaries has
any reason to believe that any of them will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business except where the failure to renew or
maintain such coverage would not reasonably be expected to result in a Material Adverse
Effect. The officers and directors of the Company are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are reasonably
believed to be prudent and customary; and the Company has no reason to believe that it will
not be able to renew its existing directors and officers liability insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers as may be
necessary to cover its officers and directors.
(xxix) No Stabilization or Manipulation. Neither the Company nor any of its
affiliates nor, to the knowledge of the Company, any of its directors or officers has taken
nor will take, directly or indirectly, any action designed to, or that might be reasonably
expected to, cause or result in stabilization or manipulation of the price of the Shares in
violation of Regulation M under the 1934 Act.
(xxx) Certain Transactions. Except as disclosed in the Prospectus or General
Disclosure Package, there are no outstanding loans, advances, or guarantees of indebtedness
by the Company to or for the benefit of any of the executive officers or directors of the
Company or any of the members of the families of any of them, other than those not
reasonably required to be disclosed in the Prospectus.
(xxxi) Accounting and Other Controls. The Company has established for itself
and each Subsidiary a system of internal accounting controls sufficient to provide
reasonable assurances that (i) transactions were executed in accordance with management’s
general or specific authorization; (ii) transactions were 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 was permitted
only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets was compared with existing assets at reasonable intervals
and appropriate action was taken with respect to any differences. Except as described in
the Prospectus or General Disclosure Package, since the end of the Company’s most recent
audited fiscal year, there has been (I) no material weakness in the Company’s internal
control over financial reporting (whether or not remediated) and (II) no change in the
Company’s internal control over financial reporting that has materially affected, or is
reasonably likely to materially affect, the Company’s internal control over financial
reporting.
(xxxii) Foreign Corrupt Practices Act. Neither the Company, nor any of its
Subsidiaries, nor to the knowledge of the Company any director, officer, agent, employee or
other person associated with or acting on behalf of the Company or any such Subsidiary has,
directly or indirectly: used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity; made any unlawful
payment to foreign or domestic government officials or employees or to foreign or domestic
political parties or campaigns from corporate funds; violated any provision of the
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Foreign
Corrupt Practices Act of 1977, as amended; or made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment which, in each case, may reasonably be expected
to result in a Material Adverse Effect.
(xxxiii) Absence of Restrictions on Dividends by Subsidiaries. No Subsidiary
of the Company is currently prohibited, directly or indirectly, from paying any dividends to
the Company, from making any other distributions on such Subsidiary’s capital stock, from
repaying to the Company any loans or advances to such Subsidiary or from transferring any of
such Subsidiary’s property or assets to the Company or any other Subsidiary of the Company,
except as disclosed in the Prospectus or General Disclosure Package.
(xxxiv) Compliance with Xxxxxxxx-Xxxxx Act. The Company, its officers and
directors are in compliance with the applicable provisions of the Xxxxxxxx-Xxxxx Act of 2002
and the rules and regulations promulgated in connection therewith that are effective.
(xxxv) Listing of Shares. The Company has listed the shares on the New York
Stock Exchange.
(xxxvi) No Pending Proceeding(xxxvii) . The Registration Statement is not
subject to a pending proceeding or examination under Section 8(d) or 8(e) of the Securities
Act.
(b) Representations and Warranties by the Selling Shareholder. The Selling
Shareholder represents and warrants to the Underwriter as of the date hereof, as of the Applicable
Time and as of the Closing Time, and agrees with the Underwriter, as follows:
(i) Accurate Disclosure. The Selling Shareholder is not prompted to sell the
Shares to be sold by the Selling Shareholder hereunder by any information concerning the
Company or any
subsidiary of the Company which is not set forth in the General Disclosure Package or
the Prospectus.
(ii) Authorization of This Agreement. This Agreement has been duly authorized,
executed and delivered by or on behalf of the Selling Shareholder.
(iii) Noncontravention. The execution and delivery of this Agreement and the
sale and delivery of the Shares to be sold by the Selling Shareholder and the consummation
of the transactions contemplated herein and compliance by the Selling Shareholder with its
obligations hereunder do not and will not, whether with or without the giving of notice or
passage of time or both, conflict with or constitute a breach of, or default under, or
result in the creation or imposition of any tax, lien, charge or encumbrance upon the
Securities to be sold by the Selling Shareholder or any property or assets of the Selling
Shareholder pursuant to any contract, indenture, mortgage, deed of trust, loan or credit
agreement, note, license, lease or other agreement or instrument to which the Selling
Shareholder is a party or by which the Selling Shareholder may be bound, or to which any of
the property or assets of the Selling Shareholder is subject, nor will such action result in
any violation of the provisions of the charter or by-laws or other organizational instrument
of the Selling Shareholder, if applicable, or any applicable treaty, law, statute, rule,
regulation, judgment, order, writ or decree of any government, government instrumentality
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or
court, domestic or foreign, having jurisdiction over the Selling Shareholder or any of its
properties.
(iv) Acquisition of the Shares. All Shares to be sold by the Selling
Shareholder in accordance with this Agreement were acquired by the Selling Shareholder
pursuant to the Investment Agreement dated May 19, 2005, among the Company, America West
Holdings Corporation and Eastshore Aviation, LLC.
(v) Valid Title. The Selling Shareholder has, and at the Closing Time will
have, valid title to the Shares to be sold by the Selling Shareholder free and clear of all
security interests, claims, liens, equities or other encumbrances and the legal right and
power, and all authorization and approval required by law, to enter into this Agreement and
to sell, transfer and deliver the Securities to be sold by the Selling Shareholder or a
valid security entitlement in respect of such Shares.
(vi) Publicly Filed Documents. As of the Effective Date of the
Registration Statement, the Registration Statement conformed in all respects to the
requirements of the Act and the Rules and Regulations and did not include any untrue
statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements
therein not misleading, and at the time of filing of the Prospectus or Disclosure Package
pursuant to Rule 424(b) such Prospectus or Disclosure Package does not include, or will not
include, any untrue statement of a material fact or omits, or will omit, to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading; provided that the preceding applies only to the extent that any statements in or
omissions from a Registration Statement or the Prospectus or Disclosure Package are based on
written information furnished to the Company by such Selling Shareholder specifically for
use therein.
(vii) Delivery of Shares. Upon payment of the purchase price for the Shares to
be sold by the Selling Shareholder pursuant to this Agreement, delivery of such Shares, as
directed by the Underwriter, to Cede & Co. (“Cede”) or such other nominee as may be
designated by The Depository Trust Company (“DTC”) (unless delivery of such Shares is
unnecessary because such Shares are already in possession of Cede or such nominee),
registration of such Shares in the name of Cede or such other nominee (unless registration
of such Shares is unnecessary because such Shares are already registered in the name of Cede
or such nominee), and the crediting of such Shares on the books of DTC to securities
accounts of the Underwriter (assuming that neither DTC nor the Underwriter has notice of any
“adverse claim,” within the meaning of Section 8-105 of the New York Uniform Commercial Code
(the “UCC”), to such Shares), (A) DTC shall be a “protected purchaser,” within the meaning
of Section 8-303 of the UCC, of such Shares and will acquire its interest in the Shares
(including, without limitation, all rights that the Selling Shareholder had or has the power
to transfer in such Shares) free and clear of any adverse claim within the meaning of
Section 8-102 of the UCC, (B) under Section 8-501 of the UCC, the Underwriter will acquire a
valid security entitlement in respect of such Shares and (C) no action (whether framed in
conversion, replevin, constructive trust, equitable lien, or other theory) based on any
“adverse claim,” within the meaning of Section 8-102 of the UCC, to such Shares may be
asserted against the Underwriter with respect to such
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security entitlement; for purposes of
this representation, such Selling Shareholder may assume that when such payment, delivery
(if necessary) and crediting occur, (x) such Shares will have been registered in the name of
Cede or another nominee designated by DTC, in each case on the Company’s share registry in
accordance with its certificate of incorporation, bylaws and applicable law, (y) DTC will be
registered as a “clearing corporation,” within the meaning of Section 8-102 of the UCC, and
(z) appropriate entries to the account of the Underwriter on the records of DTC will have
been made pursuant to the UCC.
(viii) Absence of Manipulation. The Selling Shareholder has not taken, and
will not take, directly or indirectly, any action which is designed to or which has
constituted or would be expected to cause or result in stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Shares in
violation of Regulation M.
(ix) Absence of Further Requirements. No filing with, or consent, approval,
authorization, order, registration, qualification or decree of, any court or governmental
authority or agency, domestic or foreign, is necessary or required for the performance by
the Selling Shareholder of its obligations hereunder or in connection with the sale and
delivery of the Shares hereunder or the consummation of the transactions contemplated by
this Agreement, except such as may have previously been made or obtained or as may be
required under the Securities Act or the Rules and Regulations or state securities laws.
(x) No Association with NASD. Neither the Selling Shareholder nor any of its
affiliates directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, or is a person associated with (within the
meaning of Article I (dd) of the By-laws of the National Association of Securities Dealers,
Inc.), any member firm of the National Association of Securities Dealers, Inc.
(c) Officer’s Certificates. Any certificate signed by any officer of the Company or
any of its Subsidiaries delivered to the Underwriter or to counsel for the Underwriter shall be
deemed a representation and warranty by the Company to the Underwriter as to the matters covered
thereby; and any certificate signed by or on behalf of the Selling Shareholder and delivered to the
Underwriter or to counsel for the Underwriter pursuant to the terms of this Agreement shall be
deemed a representation and warranty by the Selling Shareholder to the Underwriter as to the
matters covered thereby.
SECTION 2. Sale and Delivery to Underwriter; Closing.
(a) Shares. On the basis of the representations and warranties herein contained and
subject to the terms and conditions herein set forth, the Selling Shareholder agrees to sell to the
Underwriter and the Underwriter agrees to purchase from the Selling Shareholder, at the price per
share set forth in Schedule A, the number of Shares set forth in Schedule A opposite the name of
the Underwriter.
(b) Payment. Payment of the purchase price for, and delivery of certificates for, the
Shares shall be made at the offices of Xxxxxx Xxxxxx & Xxxxxxx LLP, 00 Xxxx Xxxxxx, Xxx
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Xxxx, Xxx Xxxx 00000, or at such other place as shall be agreed upon by the Underwriter and the
Selling Shareholder, at 9:00 A.M. (Eastern time) on June 5, 2006, or such other time not later than
ten business days after such date as shall be agreed upon by the Underwriter and the Selling
Shareholder (such time and date of payment and delivery being herein called “Closing
Time”).
Payment shall be made to the Selling Shareholder by wire transfer of immediately available
funds to a bank account designated by the Selling Shareholder, against delivery to the Underwriter
of certificates for the Shares to be purchased by it.
(c) Denominations; Registration. Certificates for the Shares shall be in such
denominations and registered in such names as the Underwriter may request in writing at least one
full business day before the Closing Time. The certificates for the Shares will be made available
for examination and packaging by the Underwriter in The City of New York not later than 10:00 A.M.
(Eastern time) on the business day prior to the Closing Time.
SECTION 3. Covenants of the Company and the Selling Shareholder.
I. The Company covenants with the Underwriter as follows:
(a) Compliance with Securities Regulations and Commission Requests. The
Company has filed or will file each Statutory Prospectus (including the Prospectus) pursuant
to and in accordance with Rule 424(b) not later than the second business day following the
earlier of the date it is first used or the date of this Agreement. The Company has
complied and will comply with Rule 433 with respect to the public offering of the Shares.
(b) Filing of Amendments. The Company will advise the Underwriter promptly of
any proposal to amend or supplement the Registration Statement or any Statutory Prospectus
and will not effect such amendment or supplementation without the Underwriter’s consent, and
the Company will also advise the Underwriter promptly of any such amendment or
supplementation and of the institution by the Commission of any stop order proceedings in
respect of a Registration Statement and will use its best efforts to prevent the issuance of
any such stop order and to obtain as soon as possible its lifting, if issued.
(c) Delivery of Registration Statements. The Company has furnished or will
deliver to the Underwriter and counsel for the Underwriter, without charge, four signed
copies of the Registration Statement as originally filed and of each amendment thereto
(including exhibits filed therewith or incorporated by reference therein) and signed copies
of all consents and certificates of experts, and will also deliver to the Underwriter,
without charge, a conformed copy of the Registration Statement as originally filed and of
each amendment thereto (without exhibits) for the Underwriter. The copies of the
Registration Statement and each amendment thereto furnished to the Underwriter will be
identical to the electronically transmitted copies thereof filed with the Commission
pursuant to XXXXX, except to the extent permitted by Regulation S-T.
(d) Delivery of Prospectuses. The Company will furnish to the Underwriter,
without charge, during the period when the Prospectus is required to be delivered under
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the
Securities Act or the 1934 Act, such number of copies of the Prospectus (as amended or
supplemented) as the Under
writer may reasonably request. The Prospectus and any amendments or supplements
thereto furnished to the Underwriter will be identical to the electronically transmitted
copies thereof filed with the Commission pursuant to XXXXX, except to the extent permitted
by Regulation S-T.
(e) Continued Compliance with Securities Laws. The Company will comply with
the Securities Act and the Rules and Regulations so as to permit the completion of the
distribution of the Shares as contemplated in this Agreement and in the Prospectus. If at
any time when a prospectus is required by the Securities Act to be delivered in connection
with sales of the Shares, any event shall occur or condition shall exist as a result of
which it is necessary, in the opinion of counsel for the Underwriter or for the Company, to
amend the Registration Statement or amend or supplement the Prospectus in order that the
Prospectus will not include any untrue statements of a material fact or omit to state a
material fact necessary in order to make the statements therein not misleading in the light
of the circumstances existing at the time it is delivered to a purchaser, or if it shall be
necessary, in the opinion of such counsel, at any such time to amend the Registration
Statement or amend or supplement the Prospectus in order to comply with the requirements of
the Securities Act or the Rules and Regulations, the Company will promptly prepare and file
with the Commission, subject to Section 3(b), such amendment or supplement as may be
necessary to correct such statement or omission or to make the Registration Statement or the
Prospectus comply with such requirements, and the Company will furnish to the Underwriter
such number of copies of such amendment or supplement as the Underwriter may reasonably
request. If at any time following issuance of an Issuer Free Writing Prospectus there
occurred or occurs an event or development as a result of which such Issuer Free Writing
Prospectus conflicted or would conflict with the information contained in the Registration
Statement relating to the Shares or included or would include an untrue statement of a
material fact or omitted or would omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances prevailing at that subsequent
time, not misleading, the Company will promptly notify the Underwriter and will promptly
amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or
correct such conflict, untrue statement or omission.
(f) Blue Sky Qualifications. The Company will use its reasonable best efforts,
in cooperation with the Underwriter, to qualify the Shares for offering and sale under the
applicable securities laws of such states and other jurisdictions (domestic or foreign) as
the Underwriter may designate and to maintain such qualifications in effect for a period
ending on the earlier of (i) one year from the later of the Effective Date of the
Registration Statement and any Rule 462(b) Registration Statement and (ii) as long as may be
necessary to complete distribution of the Shares; provided, however, that
the Company shall not be obligated to file any general consent to service of process or to
qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which
it is not so qualified or to subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the
Shares have been so qualified, the Company
will file such statements and reports as may be required by the laws of such
jurisdiction to continue such qualification in effect for a period
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ending on the earlier of
(i) one year from the Effective Date of the Registration Statement and any Rule 462(b)
Registration Statement and (ii) as long as may be necessary to complete distribution of the
Shares.
(g) Rule 158. The Company will timely file such reports pursuant to the 1934
Act as are necessary in order to make generally available to its securityholders as soon as
practicable an earnings statement for the purposes of, and to provide the benefits
contemplated by, the last paragraph of Section 11(a) of the Securities Act.
(h) Listing. The Company will use its reasonable best efforts to maintain the
listing of the Common Stock on the New York Stock Exchange (“NYSE”) and will file
with the NYSE all documents and notices required by the NYSE of companies that have
securities that are traded on the NYSE.
(i) Reporting Requirements. The Company, during the period when the Prospectus
is required to be delivered under the Securities Act or the 1934 Act, will file all
documents required to be filed with the Commission pursuant to the 1934 Act within the time
periods and rules and regulations of the Commission thereunder.
(j) Issuer Free Writing Prospectuses The Company represents and agrees that,
unless it obtains the prior consent of the Underwriter, and the Underwriter represents and
agrees that, unless it obtains the prior consent of the Company, it has not made and will
not make any offer relating to the Shares that would constitute an “issuer free writing
prospectus,” as defined in Rule 433, or that would otherwise constitute a “free writing
prospectus,” as defined in Rule 405, required to be filed with the Commission. Any such
free writing prospectus consented to by the Company and the Underwriter is hereinafter
referred to as a “Permitted Free Writing Prospectus.” The Company represents that
it has treated or agrees that it will treat each Permitted Free Writing Prospectus as an
“issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply
with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus,
including timely filing with the Commission where required, legending and record keeping.
II. The Selling Shareholder covenants with the Underwriter as follows:
(a) Restrictions on Sale of Shares. During a period of 12 days from the date
of the Prospectus, the Selling Shareholder will not, without the prior written consent of
the Underwriter, (i) offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or con
tract to sell, grant any option, right or warrant to purchase or otherwise transfer or
dispose of, directly or indirectly, any share of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock or (ii) enter into any swap or any
other agreement or any transaction that transfers, in whole or in part, directly or
indirectly, the economic consequence of ownership of the Common Stock, whether any such swap
or transaction described in clause (i) or (ii) above is to be settled by delivery of Common
Stock or such other securities, in cash or otherwise. The foregoing sentence shall not
apply to the Shares to be sold hereunder.
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(b) Issuer Free Writing Prospectuses. The Selling Shareholder represents and
agrees that, unless it obtains the prior consent of the Underwriter, it has not made and
will not make any offer relating to the Shares that would constitute a Permitted Free
Writing Prospectus. The Selling Shareholder represents that it has treated or agrees that
it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,”
as defined in Rule 433, and has complied and will comply with the requirements of Rule 433
applicable to any Permitted Free Writing Prospectus, including timely filing with the
Commission where required, legending and record keeping.
SECTION 4. Payment of Expenses.
(a) Expenses. The Company will pay all expenses incident to the performance of its
obligations under this Agreement, including, without limiting the generality of the foregoing, (i)
the preparation, printing and filing of the Registration Statement (including financial statements
and exhibits) as originally filed and of each amendment thereto, (ii) the preparation, printing and
delivery to the Underwriter of this Agreement, and such other documents as may be required in
connection with the offering, purchase, sale or delivery of the Shares, (iii) the preparation,
issuance and delivery of the certificates for the Shares to the Underwriter, including any stock or
other transfer taxes and any stamp or other duties payable upon the sale or delivery of the Shares
to the Underwriter, (iv) the fees and disbursements of the Company’s counsel, accountants and other
advisors, (v) the qualification of the Shares under securities laws in accordance with the
provisions of Section 3(f) hereof, including filing fees and the reasonable fees and disbursements
of counsel for the Underwriter in connection therewith and in connection with the preparation of
the Blue Sky Survey and any supplement thereto, (vi) the printing and delivery to the Underwriter
of copies of any Permitted Free Writing Prospectus and the Prospectus and any amendments or
supplements thereto and any costs associated with electronic delivery of any of the foregoing by
the Underwriter to investors, (vii) the fees and expenses of any transfer agent or registrar for
the Shares and (viii) the fees and expenses incurred in connection with the listing of the Shares
on the New York Stock Exchange. It is understood, however, that except as provided in this Section
4, and Section 6 and Section 7 hereof, the Underwriter will pay all of its own costs and expenses
including fees and disbursements of its counsel, stock transfer taxes payable on resale of any of
the Shares by it and any advertising expenses connected with any offers it may make.
(b) Expenses of the Selling Shareholder. The Selling Shareholder will pay all
expenses incident to the performance of its obligations under, and the consummation of the
transactions contemplated by this Agreement, including (i) any stamp duties, capital duties and
stock transfer taxes, if any, payable upon the sale of the Shares to the Underwriter, and (ii) the
fees and disbursements of its counsel and other advisors.
(c) Termination of Agreement. (i) If this Agreement is terminated by the Underwriter
in accordance with the provisions of Section 5 (other than as described in clause (ii) below) or
Section 9(a) hereof, the Selling Shareholder shall reimburse the Underwriter for all of its
out-of-pocket expenses, including the reasonable fees and disbursements of counsel for the
Underwriter.
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(ii) If this Agreement is terminated by the Underwriter in accordance with the provisions of
Section 5 hereof as a result of the Company’s failure to satisfy the conditions described in
Sections 5(a), 5(b), 5(d) (if due to the inability of counsel to the Underwriter to deliver an
opinion relating to the Company that is otherwise required to be delivered by this Agreement),
5(e), 5(g) or 5(h) hereof, or provide any documents or opinions reasonably requested of the Company
by the Underwriter pursuant to Section 5(i) hereof, the Company shall reimburse the Underwriter for
all of its out-of-pocket expenses, including the reasonable fees and disbursements of counsel for
the Underwriter.
SECTION 5. Conditions of Underwriter’s Obligations. The obligations of the
Underwriter hereunder are subject to the accuracy of the representations and warranties of the
Company and the Selling Shareholder contained in Section 1 hereof or in certificates of any officer
of the Company or any Subsidiary of the Company or on behalf of the Selling Shareholder delivered
pursuant to the provisions hereof, to the performance by the Company of its covenants and other
obligations hereunder, and to the following further conditions:
(a) Effectiveness of Registration Statement. The Prospectus shall have been
filed with the Commission in accordance with Section 3(a) of this Agreement. No order
preventing or suspending the use of the Prospectus shall have been or shall be in effect and
no order suspending the effectiveness of the Registration Statement shall be in effect and
no proceedings for such purpose shall be pending before or threatened by the Commission, no
order having the effect of ceasing or suspending the distribution of the Shares shall have
been issued or proceedings therefore initiated or threatened by any securities commission,
securities regulatory authority or sock exchange in the United States and any requests for
additional information on the part of the Commission (to be included in the Registration
Statement or the Prospectus or otherwise) shall have been complied with to the satisfaction
of the Commission and the Underwriter.
(b) Opinions of Counsel for Company. At Closing Time, the Underwriter shall have received the opinions, dated as of
Closing Time, of Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP and Xxxxx X. Xxxxx III as general
counsel for the Company, in form and substance satisfactory to counsel for the Underwriter,
to the effect set forth in Exhibit A-1 and Exhibit A-2 hereto, and to such further effect as
counsel to the Underwriter may reasonably request. Such counsel may also state that,
insofar as such opinion involves factual matters, they have relied, to the extent they deem
proper, upon certificates of officers of the Company and its Subsidiaries and certificates
of public officials.
(c) Opinion of Counsel for the Selling Shareholder. At Closing Time, the
Underwriter shall have received the opinion, dated as of Closing Time, of Xxxxxxxxx &
Xxxxxxx, counsel for the Selling Shareholder, in form and substance satisfactory to counsel
for the Underwriter, to the effect set forth in Exhibit A-3 hereto and to such further
effect as counsel to the Underwriter may reasonably request.
(d) Opinion of Counsel for Underwriter. At Closing Time, the Underwriter shall
have received the opinion, dated as of Closing Time, of Xxxxxx Xxxxxx & Xxxxxxx
llp, counsel for the Underwriter, in form and substance satisfactory to the
Underwriter. In giving such opinion such counsel may rely, as to all matters governed by
the laws of
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jurisdictions other than the law of the State of New York, the federal law of
the United States and the General Corporation Law of the State of Delaware, upon the
opinions of counsel satisfactory to the Underwriter. Such counsel may also state that,
insofar as such opinion involves factual matters, they have relied, to the extent they deem
proper, upon certificates of officers of the Company and its Subsidiaries and certificates
of public officials.
(e) Officers’ Certificate. At Closing Time, there shall not have been, since
the date hereof or since the respective dates as of which information is given in the
Prospectus or the General Disclosure Package, any material adverse change in the condition,
financial or otherwise, or in the earnings, business affairs, business prospects or
properties of the Company and its Subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, and the Underwriter shall have received a
certificate of the President or a Vice President of the Company and of the chief financial
or chief accounting officer of the Company, dated as of Closing Time, to the effect that (i)
there has been no such material adverse change, (ii) the representations and warranties in
Section 1(a) hereof are true and correct with the same force and effect as though expressly
made at and as of Closing Time, (iii) the Company has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied at or prior to Closing
Time, and (iv) no stop order suspending the effectiveness of the Registration Statement has
been issued and no proceedings for that purpose have been instituted or are pending or are
contemplated by the Commission.
(f) Certificate of Selling Shareholder. At Closing Time, the Underwriter shall have received a certificate of the Selling
Shareholder, dated as of Closing Time, to the effect that (i) the representations and
warranties of the Selling Shareholder contained in Section 1(b) hereof are true and correct
in all respects with the same force and effect as though expressly made at and as of Closing
Time and (ii) the Selling Shareholder has complied in all material respects with all
agreements and all conditions on its part to be performed under this Agreement at or prior
to Closing Time.
(g) Accountant’s Comfort Letter. At the time of the execution of this
Agreement, the Underwriter shall have received from KPMG LLP a letter dated such date, in
form and substance satisfactory to the Underwriter, containing statements and information of
the type ordinarily included in accountants’ “comfort letters” to underwriters with respect
to the financial statements and certain financial information contained in the Registration
Statement and the Prospectus.
(h) Bring-down Comfort Letter. At Closing Time, the Underwriter shall have
received from KPMG LLP a letter, dated as of Closing Time, to the effect that they reaffirm
the statements made in the letter furnished pursuant to subsection (g) of this Section,
except that the specified date referred to shall be a date not more than three business days
prior to Closing Time.
(i) Additional Documents. At Closing Time, counsel for the Underwriter shall
have been furnished with such documents and opinions as they may reasonably require for the
purpose of enabling them to pass upon the sale of the Shares as herein con-
-19-
templated, or in
order to evidence the accuracy of any of the representations or warranties, or the
fulfillment of any of the conditions, herein contained; and all proceedings taken by the
Company and the Selling Shareholder in connection with the sale of the Shares as herein
contemplated shall be satisfactory in form and substance to the Underwriter and counsel for
the Underwriter.
(j) Termination of Agreement. If any condition specified in this Section shall
not have been fulfilled when and as required to be fulfilled, this Agreement may be
terminated by the Underwriter by notice to the Selling Shareholder at any time at or prior
to Closing Time and such termination shall be without liability of any party to any other
party except as provided in Section 4 and except that Sections 1, 6, 7 and 8 shall survive
any such termination and remain in full force and effect.
SECTION 6. Indemnification.
(a) Indemnification of Underwriter by the Company. The Company agrees to indemnify and hold harmless the Underwriter, its affiliates, as such
term is defined in Rule 405 under the Securities Act (each, an “Affiliate”), its selling agents and
each person, if any, who controls the Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the 1934 Act as follows:
(i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement (or any amendment thereto), or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to
make the statements therein not misleading or arising out of any untrue statement or alleged
untrue statement of a material fact included in any Statutory Prospectus at any time, the
Prospectus or any Issuer Free Writing Prospectus, or any “issuer information” filed or
required to be filed pursuant to Rule 433(d) under the Act contained in a Permitted Issuer
Free Writing Prospectus, or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading;
(ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that (subject to Section 6(e) below)
any such settlement is effected with the written consent of the Company; and
(iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of counsel chosen by the Underwriter), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue statement or omission, or any such alleged untrue statement or omission, to the
extent that any such expense is not paid under clause (i) or (ii) above;
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provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by the Underwriter expressly for use in the Registration
Statement (or any amendment thereto) or the Prospectus (or any amendment or supplement thereto).
(b) Indemnification of Underwriter by the Selling Shareholder. The Selling
Shareholder will indemnify and hold harmless the Underwriter, its partners, members, directors,
officers and affiliates and each person who controls the Underwriter within the meaning of Section
15 of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to
which the Underwriter may become subject, under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact contained in any
Registration Statement at any time, any Statutory Prospectus
at any time, the Prospectus or any Issuer Free Writing Prospectus, or any “issuer information”
filed or required to be flied pursuant to Rule 433(d) under the Act contained in a Permitted Issuer
Free Writing Prospectus or any amendment or supplement thereto, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the Underwriter for any
legal or other expenses reasonably incurred by the Underwriter in connection with investigating or
defending any such loss, claim, damage, liability or action as such expenses are incurred;
provided, however, that the Selling Shareholder will only be liable to indemnify pursuant to this
Section 6(b) in any such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged
omission from any of such documents made in reliance upon and in conformity with written
information furnished to the Company by the Selling Shareholder specifically for use therein, it
being understood that the only such information furnished by the Selling Shareholder consists of
the following information in the Registration Statement or the Prospectus furnished on behalf of
the Selling Shareholder: the second and fourth paragraphs and the information contained in the
table under the caption “The Selling Stockholder” in the Prospectus and the first sentence of
Schedule A attached hereto; provided, that the liability under this subsection of the Selling
Shareholder shall be limited to an amount equal to the aggregate gross proceeds after underwriting
commissions and discounts, but before expenses, to the Selling Shareholder from the sale of Shares
of Common Stock sold by the Selling Shareholder hereunder.
(c) Indemnification of Company, Directors, Officers and Selling Shareholder. The
Underwriter agrees to indemnify and hold harmless the Company, its directors, each of its officers
who signed the Registration Statement, and each person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act or Section 20 of the 1934 Act, and the Selling
Shareholder and each person, if any, who controls the Selling Shareholder within the meaning of
Section 15 of the Securities Act or Section 20 of the 1934 Act against any and all loss, liability,
claim, damage and expense described in the indemnity contained in subsection (a) of this Section,
as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements
or omissions, made in the Registration Statement (or any amendment thereto), or any Issuer Free
Writing Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and
in conformity with written information furnished to the Company by and with respect to the
Underwriter expressly for use therein.
-21-
(d) Actions Against Parties; Notification. Each indemnified party shall give notice
as promptly as reasonably practicable to each indemnifying party of any action commenced against it
in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is
not materially prejudiced as a result thereof and in any event shall not relieve it from any
liability which it may have otherwise than on account of this indemnity agreement. In the case of
parties indemnified pursuant to Section 6(a) and Section 6(b) above, counsel to the indemnified
parties shall be selected by the Underwriter, and, in the case of parties indemnified pursuant to
Section 6(c) above, counsel to the indemnified parties shall be selected by the Company. An
indemnifying party may participate at its own expense in the defense of any such action;
provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to
the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses
of more than one counsel (in addition to any local counsel) separate from their own counsel for all
indemnified parties in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever in respect of which indemnification or contribution could be sought under this
Section 6 or Section 7 hereof (whether or not the indemnified parties are actual or potential
parties thereto), unless such settlement, compromise or consent (i) includes an unconditional
release of each indemnified party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.
(e) Settlement Without Consent if Failure To Reimburse. If at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of
the nature contemplated by Section 6(a)(ii) effected without its written consent if (i) such
settlement is entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such request prior to the
date of such settlement.
SECTION 7. Contribution. If the indemnification provided for in Section 6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and
expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate
to reflect the relative benefits received by the Company and the Selling Shareholder on the one
hand and the Underwriter on the other hand from the offering of the Shares pursuant to this
Agreement or (ii) if the allocation provided by clause (i) 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 and the Selling Shareholder on the one hand
and of the Underwriter on the other hand in connection with the statements or
-22-
omissions, which
resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.
The relative benefits received by the Company and the Selling Shareholder on the one hand and
the Underwriter on the other hand in connection with the offering of the Shares pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total net proceeds from
the offering of the Shares pursuant to this Agreement (before deducting expenses) received by the
Company and the Selling Shareholder and the total underwriting discount received by the
Underwriter, in each case as set forth on the cover of the Prospectus.
The relative fault of the Company and the Selling Shareholder on the one hand and the
Underwriter on the other hand shall be determined by reference to, among other things, whether any
such untrue or alleged untrue statement of a material fact or omission or alleged omission to state
a material fact relates to information supplied by the Company or the Selling Shareholder or by the
Underwriter and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.
The Company, the Selling Shareholder and the Underwriter agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable considerations referred
to above in this Section 7. The aggregate amount of losses, liabilities, claims, damages and
expenses incurred by an indemnified party and referred to above in this Section 7 shall be deemed
to include, subject to the limitations set forth in Section 6 hereof, any legal or other expenses
reasonably incurred by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or
omission or alleged omission.
Notwithstanding the provisions of this Section 7, the Underwriter shall not be required to
contribute any amount in excess of the amount by which the total price at which the Shares
underwritten by it and distributed to the public were offered to the public exceeds the amount of
any damages which the Underwriter has otherwise been required to pay by reason of any such untrue
or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.
For purposes of this Section 7, each person, if any, who controls the Underwriter within the
meaning of Section 15 of the Securities Act or Section 20 of the 1934 Act and the Underwriter’s
Affiliates and selling agents shall have the same rights to contribution as the Underwriter, and
each director of the Company, each officer of the Company who signed the Registration Statement,
and each person, if any, who controls the Company or the Selling Shareholder within the meaning of
Section 15 of the Securities Act or Section 20 of the 1934 Act shall have the same rights to
contribution as the Company or the Selling Shareholder, as the case may be.
-23-
The provisions of this Section shall not affect any agreement between the Company and the
Selling Shareholder with respect to contribution.
SECTION 8. Representations, Warranties and Agreements To Survive Delivery. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Company or any of its Subsidiaries or the Selling Shareholder submitted pursuant
hereto, shall remain operative and in full force and effect, regardless of any investigation made
by or on behalf of the Underwriter or controlling person, or by or on behalf of
the Company or the Selling Shareholder, and shall survive delivery of the Shares to the
Underwriter.
SECTION 9. Termination of Agreement.
(a) Termination; General. The Underwriter may terminate this Agreement, by notice to
the Company and the Selling Shareholder, at any time at or prior to Closing Time (i) if there has
been, since the time of execution of this Agreement or since the respective dates as of which
information is given in the Prospectus or General Disclosure Package, any material adverse change
in the condition, financial or otherwise, or in the earnings, business affairs, business prospects
or properties of the Company and its Subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, or (ii) if there has occurred any material adverse
change in the financial markets in the United States or the international financial markets, any
outbreak of hostilities or escalation thereof or other calamity or crisis or any change or
development involving a prospective change in national or international political, financial or
economic conditions, in each case the effect of which is such as to make it, in the judgment of the
Underwriter, impracticable or inadvisable to market the Shares or to enforce contracts for the sale
of the Shares, or (iii) if trading generally on the American Stock Exchange or the New York Stock
Exchange or in the Nasdaq National Market has been suspended or materially limited, or minimum or
maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any
of said exchanges or by such system or by order of the Commission, the National Association of
Securities Dealers, Inc. or any other governmental authority, or (iv) a material disruption has
occurred in commercial banking or securities settlement or clearance services in the United States,
or (v) if a banking moratorium has been declared by either Federal or New York authorities.
(b) Liabilities. If this Agreement is terminated pursuant to this Section, such
termination shall be without liability of any party to any other party except as provided in
Section 4 hereof; and provided, further, that Sections 1, 6, 7 and 8 shall survive
such termination and remain in full force and effect.
SECTION 10. Default by the Selling Shareholder. If the Selling Shareholder shall fail
at Closing Time to sell and deliver the number of Shares which the Selling Shareholder is obligated
to sell hereunder, then the Underwriter may, by notice to the Company, terminate this Agreement
without any liability on the fault of any non-defaulting party, except that the provisions of
Sections 1, 4, 6, 7 and 8 shall remain in full force and effect. No action taken pursuant to this
Section 10 shall relieve the Selling Shareholder from liability, if any, in respect of such
default.
-24-
SECTION 11. No Fiduciary Duties. The Company and the Selling Shareholder each acknowledge and agree that (i) the purchase
and sale of the Shares pursuant to this Agreement, including the determination of the public
offering price of the Shares and any related discounts and commissions, is an arm’s-length
commercial transaction between the Company and the Selling Shareholder, on the one hand, and the
Underwriter, on the other hand, (ii) in connection with the offering contemplated hereby and the
process leading to such transaction the Underwriter is and has been acting solely as a principal
and is not the agent or fiduciary of the Company or the Selling Shareholder, or its respective
stockholders, creditors, employees or any other party, (iii) no Underwriter has assumed or will
assume an advisory or fiduciary responsibility in favor of the Company or the Selling Shareholder
with respect to the offering contemplated hereby or the process leading thereto (irrespective of
whether the Underwriter has advised or is currently advising the Company on other matters) and no
Underwriter has any obligation to the Company or the Selling Shareholder with respect to the
offering contemplated hereby except the obligations expressly set forth in this Agreement, (iv) the
Underwriter and its affiliates may be engaged in a broad range of transactions that involve
interests that differ from those of each of the Company and the Selling Shareholder, and (v) the
Underwriter has not provided any legal, accounting, regulatory or tax advice with respect to the
offering contemplated hereby and each of the Company and the Selling Shareholder has consulted with
its own respective legal, accounting, regulatory and tax advisors to the extent it deemed
appropriate.
SECTION 12. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Underwriter shall be directed to Xxxxxxx, Xxxxx & Co., at 00
Xxxxx Xx., Xxx Xxxx, XX 00000, Attention: Prospectus Department; notices to the Company shall be
directed to it at US Airways Group. Inc., 000 Xxxx Xxx Xxxxxx Xxxxxxx, Xxxxx XX 00000, Attention of
General Counsel, fax: (000) 000-0000; and notices to the Selling Shareholder shall be delivered to
it at Eastshore Aviation, LLC, X0000 Xxxxxxxxxx Xxxxx, Xxx. 000, Xxxxxxxx, XX 00000, Attention of
Xxxxxxxxx Xxxxxxx, fax: (000) 000-0000.
SECTION 13. Parties. This Agreement shall inure to the benefit of and be binding upon
the Underwriter, the Company and the Selling Shareholder and their respective successors. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm
or corporation, other than the Underwriter, the Company and the Selling Shareholder, and their
respective successors and the controlling persons and officers and directors referred to in
Sections 6 and 7 and their heirs and legal representatives, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision herein contained. This Agreement and
all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the
Underwriter, the Company and the Selling Shareholder and their respective successors, and said
controlling persons and officers and directors and their heirs and legal representatives, and
for the benefit of no other person, firm or corporation. No purchaser of Shares from the
Underwriter shall be deemed to be a successor by reason merely of such purchase.
SECTION 14. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.
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SECTION 15. TIME. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.
SECTION 16. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.
SECTION 17. Effect of Headings. The Article and Section headings herein and the Table
of Contents are for convenience only and shall not affect the construction hereof.
SECTION 18. 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 and the Selling Shareholder consent to the jurisdiction of such courts and personal
service with respect thereto. The Company and the Selling Shareholder hereby consent 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 the Underwriter or any indemnified
party. Each of the Underwriter, the Company (on its behalf and, to the extent permitted by
applicable law, on behalf of its stockholders and affiliates) and the Selling Shareholder 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 and the
Selling Shareholder agree 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 the Selling Shareholder and
may be enforced in any other courts to the jurisdiction of which the Company and the Selling
Shareholder are or may be subject, by suit upon such judgment.
-26-
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company and the Selling Shareholder a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the Underwriter, the Company and
the Selling Shareholder in accordance with its terms.
| Very truly yours, | ||||||
| US AIRWAYS GROUP, INC. | ||||||
| By: | /s/Xxxx X. Xxxxxxx | |||||
| Name: Xxxx X. Xxxxxxx Title: EVP — Operations |
||||||
| EASTSHORE AVIATION, LLC | ||||||
| By: | /s/Xxxxxxxx X. Xxxxxxx | |||||
| Name: Xxxxxxxx X. Xxxxxxx Title: President |
||||||
| CONFIRMED AND ACCEPTED, as of the date first above written: |
||||
| XXXXXXX, XXXXX & CO. | ||||
By:
|
/s/ XXXXXXX, SACHS & CO. | |||
| Authorized Signatory | ||||
SCHEDULE A
As of the date hereof, Eastshore Aviation, LLC, is the beneficial owner of 7,333,333 shares of
Common Stock. Xxxxxxx, Xxxxx & Co. shall purchase from Eastshore Aviation, LLC, 3,050,000 Shares
at a purchase price per share of $45.20.
SCHEDULE B
None.
