Exhibit 1
NEXTLINK COMMUNICATIONS, INC.
10 1/2% SENIOR NOTES DUE 2009
121/8% SENIOR DISCOUNT NOTES DUE 2009
PURCHASE AGREEMENT
New York, New York
November 12, 1999
Goldman, Sachs & Co.,
Salomon Smith Barney Inc.,
Credit Suisse First Boston,
TD Securities (USA) Inc.,
Barclays Capital Inc.,
Chase Securities Inc.,
BancBoston Robertson Stephens Inc.,
Banc of America Securities LLC,
Deutsche Banc Securities Inc.,
J.P. Morgan Securities Inc.,
PNC Capital Markets, Inc.,
c/o Goldman, Sachs & Co.,
85 Broad Street,
New York, New York 10004.
Ladies and Gentlemen:
NEXTLINK Communications, Inc., a corporation organized under the laws
of the State of Delaware (the "Company"), proposes to issue and sell to the
parties named in Schedule I hereto (the "Initial Purchasers") an aggregate of
$400,000,000 principal amount of its 10 1/2% Senior Notes due 2009 (the "Senior
Notes") and $455,000,000 aggregate principal amount at stated maturity of 121/8%
Senior Discount Notes due 2009 (the "Senior Discount Notes" and, together with
the Senior Notes, the "Securities"). The Securities are to be issued under an
indenture relating to the Senior Notes to be dated as of November 17, 1999, and
an indenture relating to the Senior Discount Notes to be dated as of November
17, 1999 (collectively, the "Indentures"), between the Company and United States
Trust Company of New York, as trustee. If you are the only Initial Purchasers,
all references herein to the Representatives shall be deemed to be to the
Initial Purchasers.
The sale of the Securities to the Initial Purchasers will be made
without registration of the Securities under the Securities Act of 1933, as
amended (the "Act"), in reliance upon exemptions from the registration
requirements of the Act. You have advised the Company that the Initial
Purchasers will offer and sell the Securities purchased by them hereunder in
accordance with Section 3 hereof as soon as you deem advisable.
In connection with the sale of the Securities, the Company will prepare
an offering circular, dated November 15, 1999, including any and all exhibits
thereto and any and all documents
incorporated by reference therein (the "Offering Circular") subject to the
approval of the Initial Purchasers, which approval will not be unreasonably
withheld or delayed. References herein to the Offering Circular or to any
amendment or supplement thereto shall also mean information incorporated by
reference therein. References herein to the Offering Circular as of November 15,
1999 refer to information contained in the documents to be incorporated by
reference therein. The Offering Circular will set forth certain information
concerning the Company and the Securities. The Company hereby confirms that it
has authorized the use of the Offering Circular, and any amendment or supplement
thereto, in connection with the offer and sale of the Securities by the Initial
Purchasers. Unless stated to the contrary, all references herein to the Offering
Circular are to the Offering Circular dated November 15, 1999 (as defined below)
and are not meant to include any amendment or supplement subsequent to November
15, 1999.
The Initial Purchasers and their direct and indirect transferees of the
Securities will be entitled to the benefits of the Exchange and Registration
Rights Agreement, substantially in the form attached hereto as EXHIBIT A (the
"REGISTRATION RIGHTS AGREEMENT"), pursuant to which the Company has agreed,
among other things, to file a registration statement (the "REGISTRATION
STATEMENT") with the Securities and Exchange Commission (the "COMMISSION")
registering the Securities or the Exchange Securities (as defined in the
Registration Rights Agreement) under the Act.
1. REPRESENTATIONS AND WARRANTIES.
(a) The Company represents and warrants to each of the Initial
Purchasers as set forth below in this Section 1:
(i) CONTENTS OF OFFERING CIRCULAR. The Offering Circular, at
the Closing Date (as defined below), will not (and any amendment or
supplement thereto, at the date thereof and at the Closing Date, will
not), contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading;
PROVIDED, HOWEVER, that the Company makes no representation or warranty
as to the information contained in or omitted from the Offering
Circular, or any amendment or supplement thereto, in reliance upon and
in conformity with information furnished in writing to the Company by
or on behalf of the Initial Purchasers through Goldman, Sachs & Co.
specifically for inclusion therein. The documents incorporated by
reference in the Offering Circular, when they were filed with the
Commission, conformed in all material respects to the requirements of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
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 and incorporated by reference in the
Offering Circular or any further amendment or supplement thereto, when
such documents become effective or are filed with the Commission, as
the case may be, will conform in all material respects to the
requirements of the Act or the Exchange Act, as applicable, and the
rules and regulations of the Commission thereunder and will not contain
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements
therein not misleading; provided, however, that this representation and
warranty shall not apply to any statements or omissions made in
reliance upon and in conformity with information furnished in writing
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to the Company by an Initial Purchaser through Goldman, Sachs & Co.
expressly for use therein;
(ii) INDEPENDENT ACCOUNTANTS. The accountants who certified
the financial statements included in the Offering Circular or
incorporated by reference therein are independent certified public
accountants with respect to the Company and its subsidiaries within the
meaning of Regulation S-X under the Act;
(iii) FINANCIAL STATEMENTS. The financial statements, together
with the related notes, included or incorporated by reference in the
Offering Circular present fairly the financial position of the Company
and its consolidated subsidiaries at the dates indicated and the
statement of operations, shareholders' 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. The selected
financial data and the summary financial information included in the
Offering Circular present fairly the information shown therein and have
been compiled on a basis consistent with that of the audited financial
statements included or incorporated by reference in the Offering
Circular;
(iv) NO MATERIAL ADVERSE CHANGE IN BUSINESS. Since the
respective dates as of which information is given in the Offering
Circular, except as otherwise stated therein, (1) there has been no
material adverse change in the condition, financial or otherwise, or in
the earnings, business affairs or business prospects of the Company and
its subsidiaries considered as one enterprise (a "Material Adverse
Effect"), whether or not arising in the ordinary course of business,
(2) there have been no transactions entered into by the Company or any
of its subsidiaries, other than those in the ordinary course of
business, which are material with respect to the Company and its
subsidiaries considered as one enterprise and (3) there has been no
dividend or distribution of any kind declared, paid or made by the
Company on any class of its capital stock except for those declared,
paid or made on the Company's 6 1/2% Cumulative Convertible Preferred
Stock, including any interest and associated penalty payments thereon,
and the Company's 14% Senior Exchangeable Redeemable Preferred Stock;
(v) GOOD STANDING OF THE COMPANY. The Company has been duly
organized and is validly existing as a corporation under the laws of
the State of Delaware and has power and authority to own, lease and
operate its properties and to conduct its business as described in the
Offering Circular 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;
(vi) GOOD STANDING OF DESIGNATED SUBSIDIARIES. Each
"significant subsidiary" of the Company (as such term is defined in
Rule 1-02 of Regulation S-X) (each a "Designated Subsidiary" and,
collectively, the "Designated Subsidiaries") has been duly organized
and is validly existing and in good standing, where applicable, as a
corporation,
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limited liability company or limited partnership, as the case may be,
under the laws of the jurisdiction of its formation, has power and
authority to own, lease and operate its properties and to conduct its
business as described in the Offering Circular and is duly qualified as
a foreign corporation, limited liability company or limited
partnership, as the case may be, 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 Offering Circular, all of the issued and
outstanding capital stock or other equity interest of each Designated
Subsidiary has been duly authorized and validly issued, is fully paid
and non-assessable and at least 99% thereof 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 or other equity interest of the
Designated Subsidiaries was issued in violation of any preemptive or
similar rights arising by operation of law, or under the constituting
or operative document or agreement of any Designated Subsidiary or
under any agreement to which the Company or any Designated Subsidiary
is a party;
(vii) CAPITALIZATION. The authorized, issued and outstanding
capital stock of the Company is as set forth in the Offering Circular
as of the dates indicated therein. 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; and 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, as applicable;
(viii) AUTHORIZATION OF PURCHASE AGREEMENT AND REGISTRATION
RIGHTS AGREEMENT. This Agreement has been duly authorized, executed and
delivered by the Company; the Registration Rights Agreement has been
duly authorized by the Company and, when executed and delivered by the
Company as of the Closing Date, will constitute a valid and legally
binding agreement of the Company enforceable against the Company in
accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors' rights and to
general equity principles;
(ix) AUTHORIZATION AND DESCRIPTION OF THE SECURITIES AND THE
INDENTURES. The Securities, when issued, will be in the forms
contemplated by the Indentures. The Securities and the Exchange
Securities (as defined in the Registration Rights Agreement) have each
been duly and validly authorized by the Company and, when executed by
the Company, authenticated by the Trustee in accordance with the
provisions of the Indentures and, in the case of the Securities, when
delivered to and paid for by the Initial Purchasers in accordance with
the terms of this Agreement, and, in the case of the Exchange
Securities, when the Indentures have been duly qualified under the
Trust Indenture Act and the Exchange Securities have been exchanged for
the Securities pursuant to the Registration Rights Agreement, will
constitute valid and legally binding obligations of the Company,
entitled to the benefits of the Indentures, and enforceable against the
Company in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar
laws of general applicability relating to or affecting creditors'
rights
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and to general equity principles; the Indentures have been duly
authorized and when executed and delivered by the Company and the
Trustee, will constitute valid and legally binding instruments,
enforceable in accordance with their terms, subject, as to enforcement,
to bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors' rights and to general
equity principles; and the Securities and the Indentures will conform
in all material respects to the descriptions thereof in the Offering
Circular and will be in substantially the form previously delivered to
the Initial Purchasers;
(x) ABSENCE OF DEFAULTS AND CONFLICTS. Neither the Company nor
any of its subsidiaries is in violation of its constituting or
operative document or agreement or in default in the performance or
observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, deed of trust, loan or
credit agreement, note, lease or other agreement or instrument to which
the Company or any of its subsidiaries is a party, or by which any of
them may be bound, or to which any of the property or assets of the
Company or any of its subsidiaries is subject (collectively,
"Agreements and Instruments") except for such defaults that would not
result in a Material Adverse Effect; the execution, delivery and
performance of this Agreement, the Indentures, the Securities, the
Registration Rights Agreement and any other agreement or instrument
entered into or issued or to be entered into or issued by the Company
in connection with the transactions contemplated hereby, thereby or in
the Offering Circular and the consummation of the transactions
contemplated herein, therein and in the Offering Circular (including
the issuance and sale of the Securities by the Company hereunder), the
compliance by the Company with its obligations hereunder and under the
Indentures, the Securities and the Registration Rights Agreement have
been duly authorized by all necessary 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 a
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 of its subsidiaries pursuant to, the
Agreements and Instruments except for such conflicts, breaches or
defaults or liens, charges or encumbrances that, singly or in the
aggregate, would not result in a Material Adverse Effect, nor will such
action result in any violation of the provisions of the constituting or
operative document or agreement of the Company or any of its
subsidiaries 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 or
properties; PROVIDED that no representation is made with respect to the
agreement, dated October 20, 1999, between the Company and Goldman
Sachs Credit Partners L.P., TD Securities (USA) Inc., Toronto Dominion
(Texas), Inc., Barclays Bank PLC and The Chase Manhattan Bank (the
"Commitment Letter"). As used herein, a "Repayment Event" means any
event or condition which gives the holder of any material note,
debenture or other evidence of indebtedness (or any person acting on
such holder's behalf) the right to require repurchase, redemption or
repayment of all or a portion of such indebtedness by the Company or
any of its subsidiaries;
(xi) POSSESSION OF LICENSES AND PERMITS. Except as set forth
in or contemplated by the Offering Circular with respect to systems
under development and the offering of dial tone service, each of the
Company and its Designated Subsidiaries has all material certificates,
consents, exemptions, orders, permits, licenses, authorizations,
franchises or
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other material approvals (each, an "Authorization") of and from, and
has made all material declarations and filings with, all Federal,
state, local and other governmental authorities, all self-regulatory
organizations and all courts and other tribunals, necessary or
appropriate for the Company and its Designated Subsidiaries to own,
lease, license, use and construct its properties and assets and to
conduct its business in the manner described in the Offering Circular,
except to the extent that the failure to obtain any such Authorizations
or make any such declaration or filing would not, singly or in the
aggregate, result in a Material Adverse Effect. Except as set forth in
or contemplated by the Offering Circular, all such Authorizations are
in full force and effect with respect to the Company and its Designated
Subsidiaries; to the best knowledge of the Company, no event has
occurred that management of the Company reasonably believes is likely
to result in the revocation, termination or modification of any such
Authorization; the Company and its Designated Subsidiaries are in
compliance in all material respects with the terms and conditions of
all such Authorizations and with the rules and regulations of the
regulatory authorities and governing bodies having jurisdiction with
respect thereto; and, except as set forth in the Offering Circular, the
Company has no knowledge that any person is contesting or intends to
contest the granting of any material Authorization; and neither the
execution and delivery of this Agreement, the Indentures or the
Securities, nor the consummation of the transactions contemplated
hereby and thereby nor compliance with the terms, conditions and
provisions hereof and thereof by the Company or any of its Designated
Subsidiaries will cause any suspension, revocation, impairment,
forfeiture, nonrenewal or termination of any Authorization;
(xii) ABSENCE OF LABOR DISPUTE. No labor dispute with the
employees of the Company or any of its subsidiaries exists or, to the
knowledge of the Company, is imminent, and the Company is not aware of
any existing labor disturbance by the employees of any of its or any of
its subsidiaries' principal suppliers, manufacturers, customers or
contractors, which, in either case, would reasonably be expected to
result in a Material Adverse Effect;
(xiii) ABSENCE OF PROCEEDINGS. Except as disclosed in the
Offering Circular, there is no action, suit, proceeding, inquiry or
investigation before or 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 of its subsidiaries
which could 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 of the Company or any of its
subsidiaries or the consummation of 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 thereof is a party or of which any of their respective
property or assets is the subject which are not described in the
Offering Circular, including ordinary routine litigation incidental to
the business, could not reasonably be expected to result in a Material
Adverse Effect;
(xiv) POSSESSION OF INTELLECTUAL PROPERTY. The Company and its
subsidiaries own or possess, or can acquire on reasonable terms,
adequate patents, patent rights, licenses, 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 (collectively, "Intellectual
6
Property") necessary to carry on the business now operated by them, and
except as otherwise described in the Offering Circular 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;
(xv) TITLE TO PROPERTY. The Company and its subsidiaries have
good and marketable title to all real property owned by them and good
title 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 Offering Circular 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 Offering Circular, are
in full force and effect, and neither the Company nor any of its
subsidiaries 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 of
its subsidiaries under any of the leases or subleases mentioned above,
or affecting or questioning the rights of the Company or any subsidiary
thereof to the continued possession of the leased or subleased premises
under any such lease or sublease;
(xvi) TAX RETURNS. The Company and its subsidiaries have filed
all federal, state, foreign and, to the extent material, local tax
returns that are required to be filed or have duly requested extensions
thereof and have paid all taxes required to be paid by any of them and
any related assessments, fines or penalties, except for any such tax,
assessment, fine or penalty that is being contested in good faith and
by appropriate proceedings; and adequate charges, accruals and reserves
have been provided for in the financial statements referred to in
Section 1(a)(iii) above 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;
(xvii) ENVIRONMENTAL LAWS. Except as described in the Offering
Circular and except such matters 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 federal, state,
local or foreign statute, law, rule, regulation, ordinance, code,
policy 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, groundwater, 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
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(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, to the Company's
knowledge, threatened administrative, regulatory or judicial actions,
suits, demands, demand letters, claims, liens, notices of noncompliance
or violation, investigation or proceedings relating to any
Environmental Law against the Company or any of its subsidiaries and
(D) there are no events or circumstances that would 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 Hazardous Materials or Environmental Laws;
(xviii) INVESTMENT COMPANY ACT. The Company is not, and upon
the issuance and sale of the Securities as herein contemplated and the
application of the net proceeds therefrom as described in the Offering
Circular will not be, 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");
(xix) CERTAIN DISCLOSURES IN OFFERING CIRCULAR. The statements
set forth in the Offering Circular under the caption "Description of
Notes", insofar as they purport to constitute a summary of the terms of
the Securities, and under the caption "Plan of Distribution", and under
the caption "Regulation" when considered together with the statements
under the caption "Business--Regulatory Overview" in the Company's
Annual Report on Form 10-K, filed on March 29, 1999, which is
incorporated therein by reference, insofar as they purport to describe
the provisions of the laws and documents referred to therein, are
accurate and complete in all material respects; and the statements set
forth in the Offering Circular under the caption "Material United
States Federal Income Tax Consequences", insofar as such statements
purport to summarize certain United States federal income and estate
tax consequences of the ownership and disposition of the Securities by
certain U.S. Holders and non-U.S. Holders (as such terms are defined in
the Offering Circular) of the Securities, provide a fair summary of
such consequences under current law;
(xx) CUBA. Neither the Company nor any of its affiliates does
business with the government of Cuba or with any person or affiliate
located in Cuba within the meaning of Section 517.075, Florida
Statutes;
(xxi) NO MANIPULATION OR STABILIZATION. Neither the Company
nor, to its knowledge, any of its officers, directors or affiliates has
taken and will take, directly or indirectly, any action which is
designed to or which has constituted or which might reasonably 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 Securities;
(xxii) OTHER LISTED SECURITIES. No securities of the Company
or any subsidiary that are of the same class (within the meaning of
Rule 144A under the Act) as the Securities are listed on a national
securities exchange registered under Section 6 of the Exchange Act or
quoted in a U.S. automated inter-dealer quotation system;
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(xxiii) NO GENERAL SOLICITATION OR DIRECTED SELLING EFFORTS.
Neither the Company nor any of its Affiliates (as defined in Rule
501(b) of Regulation D under the Act ("Regulation D")), nor any person
(excluding the Initial Purchasers, as to the actions of which the
Company makes no representation or warranty) acting on its or their
behalf has offered or sold the Securities by means of any general
solicitation or general advertising within the meaning of Rule 502(c)
under the Act or, with respect to Securities sold outside the United
States to non-U.S. persons (as defined in Rule 902 under the Act), by
means of any directed selling efforts within the meaning of Rule 902
under the Act and the Company, any Affiliate of the Company and any
person acting on its or their behalf has complied with and will
implement the "offering restriction" within the meaning of such Rule
902;
(xxiv) ELIGIBILITY OF SECURITIES. The Securities satisfy the
eligibility requirements of Rule 144A(d)(3) under the Act;
(xxv) COMPLIANCE WITH EXCHANGE ACT. The Company is subject
to and in full compliance with the reporting requirements of Section
13 or Section 15(d) of the Exchange Act;
(xxvi) OTHER AGENTS. The Company has not paid or agreed to pay
to any person any compensation for soliciting another to purchase any
securities of the Company (except as contemplated by this Agreement);
and
(xxvii) ADDITIONAL ISSUER INFORMATION. The information
provided by the Company pursuant to Section 4(f) hereof will not, at
the date thereof, contain any untrue statement of a material fact or
omit to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made,
not misleading.
(b) Any certificate signed by any officer of the Company or any of its
subsidiaries delivered to the Initial Purchasers or to counsel for the Initial
Purchasers shall be deemed a representation and warranty by the Company to each
Initial Purchaser as to the matters covered thereby.
2. SALE AND DELIVERY TO INITIAL PURCHASERS.
(a) SECURITIES. Subject to the terms and conditions and in reliance
upon the representations and warranties herein set forth, the Company agrees to
sell to each Initial Purchaser, severally and not jointly, and each Initial
Purchaser agrees, severally and not jointly, to purchase from the Company, the
principal amount of the Senior Notes set forth opposite such Initial Purchaser's
name in Schedule I hereto at a purchase price of 98.37500% of the principal
amount thereof, plus accrued interest, if any, from November 17, 1999 to the
Closing Date and the principal amount of the Senior Discount Notes set forth
opposite such Initial Purchaser's name in Schedule I hereto, at a purchase price
of 54.15186% of the principal amount thereof at stated maturity, plus accrued
interest, if any, from November 17, 1999 to the Closing Date.
(b) CLOSING AND PAYMENT. (i) The Securities to be purchased by each
Initial Purchaser hereunder, in definitive form, and in such authorized
denominations and registered in such names as Goldman, Sachs & Co. may request
upon at least forty-eight hours' prior notice to the Company
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shall be delivered by or on behalf of the Company to the Initial Purchasers,
through the facilities of The Depository Trust Company ("DTC") (unless the
Initial Purchasers shall otherwise instruct) for the account of such Initial
Purchaser, against payment by or on behalf of such Initial Purchaser of the
purchase price therefor by wire transfer or certified or official bank check or
checks, payable to the order of the Company in immediately available (same day)
funds. The Company will cause the certificates representing the Securities to be
made available for checking and packaging at least twenty-four hours prior to
the Closing Time (as defined below) with respect thereto at the offices of DTC
or its designated custodian (the "Designated Office"). The time and date of such
delivery and payment shall be 10:00 a.m. on November 17, 1999 (the "Closing
Date"), or such other time and date as Goldman, Sachs & Co. and the Company may
agree upon in writing, and such time and date for delivery of the Securities is
herein called the "Closing Time".
(ii) The documents to be delivered at the Closing Time by or on behalf
of the parties hereto pursuant to Section 6 hereof, including the cross receipt
for the Securities and any additional documents requested by the Initial
Purchasers pursuant to Section 6(i) hereof, will be delivered at the offices of
Sullivan & Cromwell, 125 Broad Street, New York, New York 10004 (the "Closing
Location"), and the Securities will be delivered at the Designated Office, all
at the Closing Time. A meeting will be held at the Closing Location at 2:00 p.m.
on the New York Business Day next preceding the Closing Time, at which meeting
the final drafts of the documents to be delivered pursuant to the preceding
sentence will be available for review by the parties hereto. For the purposes of
this Section 2, "New York Business Day" shall mean each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions
in New York are generally authorized or obligated by law or executive order to
close.
3. OFFERING OF SECURITIES. Upon the authorization by you of the release
of the Securities, the Initial Purchasers propose to offer the Securities for
sale upon the terms and conditions set forth in this Agreement and the Offering
Circular and each Initial Purchaser hereby represents and warrants to, and
agrees with the Company that:
(a) It will offer and sell the Securities only to: (i) persons who it
reasonably believes are "qualified institutional buyers" ("QIBs") within the
meaning of Rule 144A under the Act in transactions meeting the requirements of
Rule 144A, or (ii) upon the terms and conditions set forth in Annex I to this
Agreement;
(b) It is a QIB; and
(c) It will not offer or sell the Securities by any form of general
solicitation or general advertising, including but not limited to the methods
described in Rule 502(c) under the Act.
4. COVENANTS. The Company covenants and agrees with each Initial
Purchaser:
(a) PREPARATION OF OFFERING CIRCULAR; NOTICES. To prepare the Offering
Circular in a form approved by the Initial Purchasers; to make no amendment or
any supplement to the Offering Circular which shall be disapproved by the
Initial Purchasers promptly after reasonable notice thereof; and to furnish the
Initial Purchasers with copies thereof;
10
(b) COPIES OF AND AMENDMENTS TO OFFERING CIRCULAR AND SUPPLEMENTS. To
furnish the Initial Purchasers with copies in such quantities as the Initial
Purchasers may from time to time reasonably request of the Offering Circular and
each amendment or supplement thereto signed by an authorized officer of the
Company with the independent accountants' report(s) in the Offering Circular,
and any amendment or supplement containing amendments to the financial
statements covered by such report(s), signed by the accountants, and if, at any
time prior to the expiration of nine months after the Execution Date, any event
shall have occurred as a result of which the Offering Circular as then amended
or supplemented would include an untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made when such Offering
Circular is delivered, not misleading, or, if for any other reason it shall be
necessary or desirable during such same period to amend or supplement the
Offering Circular, to notify the Initial Purchasers and upon the request of the
Initial Purchasers to prepare and furnish without charge to each Initial
Purchaser and to any dealer in securities as many copies as the Initial
Purchasers may from time to time reasonably request of an amended Offering
Circular or a supplement to the Offering Circular which will correct such
statement or omission or effect such compliance;
(c) LOCK-UP. During the period beginning from the Execution Date and
continuing to and including the date 90 days after the Closing Date, not to
offer, sell, contract to sell or otherwise dispose of, directly or indirectly,
or announce an offering of, except as provided hereunder any debt securities of
the Company in an offering to the public (or in a private offering where holders
of the debt securities are granted rights to have such debt securities
registered under the Act, or to exchange such debt securities for other debt
securities that are so registered) without the prior written consent of Goldman,
Sachs & Co.;
(d) INVESTMENT COMPANY. Not to be or become, at any time prior to the
expiration of three years after the Closing Date, an open-end investment
company, unit investment trust, closed-end investment company or face-amount
certificate company that is or is required to be registered under Section 8 of
the 1940 Act;
(e) PORTAL. To use its reasonable best efforts to cause the Securities
to be eligible for the PORTAL trading system of the National Association of
Securities Dealers, Inc.;
(f) INFORMATION TO HOLDERS OF SECURITIES. At any time when the Company
is not subject to Section 13 or 15(d) of the Exchange Act, for the benefit of
holders from time to time of Securities, to furnish at its expense, upon
request, to holders of Securities and prospective purchasers of Securities
information (the "Additional Issuer Information") satisfying the requirements of
subsection (d)(4)(i) of Rule 144A under the Act;
(g) INITIAL PURCHASERS. During a period of five years from the
Execution Date, to furnish to the Initial Purchasers copies of all reports or
other communications (financial or other) furnished to stockholders of the
Company, and to deliver to the Initial Purchasers (i) copies of any reports and
financial statements furnished to or filed with the Commission or any securities
exchange on which the Securities or any class of securities of the Company is
listed promptly upon such furnishing or filing; and (ii) such additional
information concerning the business and financial condition of the Company as
the Initial Purchasers may from time to time reasonably request (such financial
statements to be on a consolidated basis to the extent the accounts of the
Company and its
11
subsidiaries are consolidated in reports furnished to its stockholders generally
or to the Commission);
(h) RESALES BY COMPANY AND AFFILIATES. Until such time as the Exchange
Offer (as defined in the Registration Rights Agreement) is completed and all
Securities have been exchanged for Exchange Securities, during the period of two
years after the Closing Date, the Company will not, and will not permit any of
its "affiliates" (as defined in Rule 144 under the Act) to, resell any of the
Securities which constitute "restricted securities" under Rule 144 that have
been reacquired by any of them;
(i) EXCHANGE REGISTRATION. The Company shall file and use its best
efforts to cause to be declared or become effective under the Act, on or prior
to 120 days after the Closing Date, a registration statement on Form S-4
providing for the registration of the Exchange Securities and the exchange of
the Securities for the Exchange Securities, all in a manner which will permit
persons who acquire the Exchange Securities to resell the Exchange Securities
pursuant to Section 4(1) of the Act;
(j) USE OF PROCEEDS. To use the net proceeds received by it from the
sale of the Securities pursuant to this Agreement in the manner specified in the
Offering Circular under the caption "Use of Proceeds";
(k) MANNER OF SALE. Neither the Company nor any of its Affiliates nor
any person acting on its or their behalf will offer or sell the Securities by
means of any general solicitation or general advertising within the meaning of
Rule 502(c) under the Act or, with respect to Securities sold outside the United
States to non-U.S. persons (as defined in Rule 902 under the Act), by means of
any directed selling efforts within the meaning of Rule 902 under the Act and
the Company, any Affiliate of the Company and any person acting on its or their
behalf will comply with and will implement the "offering restriction" within the
meaning of such Rule 902; and
(l) DTC. The Company will cooperate with the Representatives and use
its best efforts to permit the Securities to be eligible for clearance and
settlement through DTC.
5. EXPENSES. The Company covenants and agrees with the Initial
Purchasers that the Company will pay or cause to be paid all costs and expenses
incident to the performance of its obligations under this Agreement, whether or
not the transactions contemplated herein are consummated or this Agreement is
terminated pursuant to Section 10 hereof, including all costs and expenses
incident to (i) the fees, disbursements and expenses of the Company's counsel
and accountants and all other expenses in connection with the preparation, word
processing, printing or other production of the Offering Circular and amendments
and supplements thereto; (ii) the cost of word processing, printing or
reproducing this Agreement, the Agreement Among Underwriters, the Selling
Agreement, the Indentures, the Registration Rights Agreement, the Securities,
closing documents (including any compilations thereof) and any other documents
in connection with the offering, purchase, sale and delivery of the Securities;
(iii) all arrangements relating to the delivery to the Initial Purchasers and
dealers of copies of the foregoing documents; (iv) the costs and charges of any
transfer agent or registrar and of DTC; (v) reasonable expenses in connection
with any meetings with prospective investors in the Securities; (vi) fees and
expenses of the Trustee including fees and expenses of counsel for the Trustee;
(vii) all expenses and listing fees incurred in
12
connection with the application for quotation of the Securities on the PORTAL
market; and (viii) any fees charged by investment rating agencies for the rating
of the Securities. It is understood, however, that, except as provided in this
Section, and Sections 7, 8 and 11 hereof, the Initial Purchasers will pay all of
their own costs and expenses, including the fees of their counsel, transfer
taxes on resale of any of the Securities by them, and any advertising expenses
connected with any offers they may make.
If this Agreement is terminated by the Initial Purchasers in accordance
with the provisions of Section 6 or Section 10 hereof, the Company shall
reimburse the Initial Purchasers for all of their out of pocket expenses,
including the reasonable fees and disbursements of counsel for the Initial
Purchasers.
6. CONDITIONS TO THE OBLIGATIONS OF THE INITIAL PURCHASERS. The
obligations of the Initial Purchasers to purchase the Securities shall be
subject to the accuracy of the representations and warranties on the part of the
Company contained herein at the date and time that this Agreement is executed
and delivered by the parties hereto (the "Execution Time") and the Closing Time,
to the accuracy of the statements of the Company made in any certificates
pursuant to the provisions hereof, to the performance by the Company of its
obligations hereunder and to the following additional conditions:
(a) OPINION OF COUNSEL FOR COMPANY. At the Closing Time, the Initial
Purchasers shall have received the favorable opinions, dated as of the Closing
Date, of Willkie Farr & Gallagher, counsel for the Company, and of the General
Counsel or Securities Counsel of the Company, in form and substance satisfactory
to counsel for the Initial Purchasers, to the effect set forth in Exhibits A-1
and A-2 hereto, respectively, and to such further effect as counsel to the
Initial Purchasers may reasonably request;
(b) OPINION OF COUNSEL FOR INITIAL PURCHASERS. At the Closing Time, the
Initial Purchasers shall have received the favorable opinion, dated as of the
Closing Date, of Sullivan & Cromwell, counsel for the Initial Purchasers, with
respect to the incorporation of the Company, the Indentures, the validity of the
Securities being delivered at the Closing Time, the Offering Circular and such
other related matters as the Initial Purchasers may reasonably request. In
giving such opinion such counsel may rely, as to all matters governed by the
laws of jurisdictions other than the law of the State of New York and the
federal law of the United States, upon the opinions of counsel satisfactory to
the Initial Purchasers. 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) OFFICERS' CERTIFICATE. At such Closing Time, there shall not have
been, since the Execution Date or since the date of the most recent financial
statements included in the Offering Circular (exclusive of any supplement
thereto), any material adverse change in the condition, financial or otherwise,
or in the earnings, business affairs or business prospects of the Company and
its subsidiaries considered as one enterprise, whether or not arising from
transactions in the ordinary course of business except as set forth in the
Offering Circular (exclusive of any supplement thereto), and the Initial
Purchasers shall have received certificates of the Chairman of the Board, the
President or a Vice President of the Company and of the chief financial or chief
accounting officer of the Company, satisfactory to the Initial Purchasers, to
the effect that, at and as of such Closing
13
Time, (i) they have carefully examined the Offering Circular and any supplements
thereto and this Agreement, (ii) there has been no such material adverse change,
(iii) the representations and warranties of the Company in Section 1 hereof are
true and correct in all material respects at and as of the Closing Time with the
same force and effect as though expressly made at and as of such Closing Time,
and (iv) the Company has complied with all agreements and satisfied all
conditions on its part to be performed or satisfied at or prior to such Closing
Time;
(d) ACCOUNTANT'S COMFORT LETTER. At the Closing Time, the Initial
Purchasers shall have received from Arthur Andersen LLP a letter or letters
dated as of the Closing Date, in form and substance satisfactory to the Initial
Purchasers, containing statements and information of the type ordinarily
included in accountants' "comfort letters" to the Initial Purchasers with
respect to the financial statements and certain financial information contained
in the Offering Circular;
(e) NO MATERIAL ADVERSE CHANGE IN BUSINESS. Since the respective dates
as of which information is given in the Offering Circular, except as otherwise
stated therein, (1) there has been no Material Adverse Effect, whether or not
arising in the ordinary course of business, (2) there have been no transactions
entered into by the Company or any of its subsidiaries, other than those in the
ordinary course of business, which are material with respect to the Company and
its subsidiaries considered as one enterprise, (3) there has been no dividend or
distribution of any kind declared, paid or made by the Company on any class of
its capital stock except for the Company's 6 1/2% Cumulative Convertible
Preferred Stock and 14% Senior Exchangeable Redeemable Preferred Stock, which
dividend (if any) shall be the customary dividend on such stock, and (4) there
has been no change or decrease specified in the letter referred to in
subsections 6(d) above, the effect of which, in any case referred to in clauses
(1) through (4) above, is, in the sole judgment of the Initial Purchasers, so
material and adverse as to make it impractical or inadvisable to proceed with
the offering or delivery of the Securities as contemplated by the Offering
Circular (exclusive of any amendment thereof or supplement thereto);
(f) MAINTENANCE OF RATING. At the Closing Date, the Securities shall be
rated at least B by Standard & Poor's Corporation and B3 by Moody's Investors
Service Inc. and, on or after the Execution Date, there shall not have occurred
a downgrading in the rating assigned to the Company's debt securities or
preferred stock by any "nationally recognized statistical rating organization,"
as that term is defined by the Commission for purposes of Rule 436(g)(2) under
the Act, and no such organization shall have publicly announced that it has
under surveillance or review its rating of any of the Company's debt securities
or preferred stock;
(g) OFFERING CIRCULAR. The Offering Circular shall be in form and
substance reasonably satisfactory to the Initial Purchasers. The Company shall
have complied with the provisions of Section 4(a) hereof with respect to the
furnishing of Offering Circulars as soon as practicable but in no event later
than 2:00 p.m. on November 16, 1999;
(h) ADEQUATE DISCLOSURE OF LITIGATION. There is no litigation or
governmental or other action, suit, claim, proceeding or investigation before
any court or any public, regulatory or governmental agency or body, pending or,
to the best of the Company's knowledge, threatened against the Company or any of
its subsidiaries or any of their respective officers (in their capacity as
officers of the Company or such subsidiaries) or any of the properties, assets,
business or rights
14
of the Company or such subsidiaries which is of a character required to be
disclosed in the Offering Circular which is not disclosed therein;
(i) ADDITIONAL DOCUMENTS. At the Closing Time: (i) the Company shall
have furnished to the Initial Purchasers such further information, certificates
and documents as the Initial Purchasers may reasonably request; (ii) counsel for
the Initial Purchasers shall have been furnished with such documents and
opinions as they may require for the purpose of enabling them to pass upon the
issuance and sale of the Securities as herein contemplated, 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 (iii) all
proceedings taken by the Company in connection with the issuance and sale of the
Securities as herein contemplated shall be satisfactory in form and substance to
the Initial Purchasers and counsel for the Initial Purchasers;
(j) COMMITMENT LETTER CONSENTS. The financial institutions signatory to
the Commitment Letter shall have consented to the execution, delivery and
performance of this Agreement and the transactions contemplated hereby, and the
Company shall have furnished to the Initial Purchasers evidence of such consent
satisfactory to the Initial Purchasers (such consent also being a condition to
the obligations of the Company hereunder); and
(k) 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 Initial Purchasers by notice to the Company
at any time at or prior to the Closing Time, and such termination shall be
without liability of any party to any other party except as provided in Section
5 and except that Sections 1, 7 and 8 shall survive any such termination and
remain in full force and effect.
7. INDEMNIFICATION.
(a) INDEMNIFICATION OF INITIAL PURCHASERS. The Company agrees to
indemnify and hold harmless each Initial Purchaser, the directors, officers,
employees and agents of each Initial Purchaser and each person, if any, who
controls any Initial Purchaser within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act against any and all losses, liabilities (joint or
several), claims, damages and expenses whatsoever, to which they or any of them
may become subject under the Act, the Exchange Act or other Federal or state
statutory law or regulation, at common law 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 a material
fact contained in the Offering Circular (or any amendment or supplement
thereto), or arise out of or are based upon the omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein
not misleading, and agrees to reimburse each such indemnified party, as
incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action; PROVIDED, HOWEVER, that the Company will not be liable in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
any Initial Purchaser through the Initial Purchasers specifically for inclusion
therein. This indemnity agreement will be in addition to any liability which the
Company may otherwise have.
15
(b) INDEMNIFICATION OF COMPANY, DIRECTORS AND OFFICERS. Each Initial
Purchaser severally agrees to indemnify and hold harmless the Company, each of
its directors (including any person who, with his or her consent, is named in
the Registration Statement as about to become a director of the Company) and
each person, if any, who controls the Company within the meaning of Section 15
of the Act or Section 20 of the Exchange Act against any and all losses,
liabilities (joint or several), claims, damages and expenses described in the
indemnity contained in subsection (a) of this Section, as incurred, but only
with respect to written information furnished to the Company by such Initial
Purchaser through Goldman, Sachs & Co. specifically for inclusion in the
documents referred to in the foregoing indemnity. The Company acknowledges that
the statements set forth in the last paragraph of the cover page regarding
delivery of the Securities, the paragraph related to stabilization on the
reverse of the cover page and, under the heading "Plan of Distribution," the
paragraph related to stabilization in the Offering Circular constitute the only
information furnished in writing by or on behalf of the several Initial
Purchasers for inclusion in such Offering Circular.
(c) ACTIONS AGAINST PARTIES; NOTIFICATION. Each indemnified party shall
give written 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 (i) will not
relieve it from liability under paragraph (a) or (b) above unless and to the
extent it did not otherwise learn of such action and such failure results in the
forfeiture by the indemnifying party of substantial rights and defenses and (ii)
will not, in any event, relieve the indemnifying party from any obligations to
any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint
counsel of the indemnifying party's choice at the indemnifying party's expense
to represent the indemnified party in any action for which indemnification is
sought (in which case the indemnifying party shall not thereafter be responsible
for the fees and expenses of any separate counsel retained by the indemnified
party or parties except as set forth below); PROVIDED, HOWEVER, that such
counsel shall be satisfactory to the indemnified party. Notwithstanding the
indemnifying party's election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel if (i) the
use of counsel chosen by the indemnifying party to represent the indemnified
party would present such counsel with a conflict of interest, (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, (iii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of the institution of
such action or (iv) the indemnifying party shall authorize the indemnified party
to employ separate counsel at the expense of the indemnifying party. 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 7 or Section 8 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
16
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.
8. CONTRIBUTION. If the indemnification provided for in Section 7
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
(including legal or other expenses reasonably incurred in connection with
investigating or defending same) incurred by such indemnified party, as
incurred, (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Initial Purchasers on
the other hand from the offering of the Securities pursuant to this Agreement
(provided that in no case shall any Initial Purchaser (except as may be provided
in any agreement among Initial Purchasers relating to the offering of the
Securities) be responsible for any amount in excess of the underwriting discount
or commission applicable to the Securities purchased by such Initial Purchaser
hereunder) or (ii) if the allocation provided by clause (i) is unavailable for
any reason, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company on the one hand and of the Initial Purchasers on the other hand in
connection with the statements or 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 on the one hand and the
Initial Purchasers on the other hand in connection with the offering of the
Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by
the Company bear to the total underwriting discounts and commissions received by
the Initial Purchasers, in each case as set forth in the Offering Circular.
The relative fault of the Company on the one hand and the Initial
Purchasers 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 by the Initial Purchasers and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.
The Company and the Initial Purchasers agree that it would not be just
and equitable if contribution pursuant to this Section 8 were determined by pro
rata allocation (even if the Initial Purchasers were treated as one entity for
such purpose) or by any other method of allocation which does not take account
of the equitable considerations referred to above in this Section 8.
Notwithstanding the provisions of this Section 8, no Initial Purchaser
shall be required to contribute any amount in excess of the amount by which the
total price at which the Securities underwritten by it and distributed to
investors were offered to investors exceeds the amount of any damages which such
Initial Purchaser has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.
Notwithstanding the provisions of this Section 8, no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.
17
For purposes of this Section 8, each person, if any, who controls an
Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of
the Exchange Act shall have the same rights to contribution as such Initial
Purchaser, and each person, if any, who controls the Company within the meaning
of Section 15 of the Act or Section 20 of the Exchange Act shall have the same
rights to contribution as the Company. The Initial Purchasers' respective
obligations to contribute pursuant to this Section 8 are several in proportion
to the number of Securities set forth opposite their respective names in
Schedule I hereto and not joint.
9. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY. All
representations, warranties and agreements contained in this Agreement, or in
certificates of officers of the Company submitted pursuant hereto, shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of any Initial Purchaser or controlling person, or by or on behalf
of the Company, and shall survive delivery of the Securities to the Initial
Purchasers.
10. TERMINATION OF AGREEMENT.
(a) TERMINATION; GENERAL. This Agreement shall be subject to
termination in the absolute discretion of the Initial Purchasers, by notice
given to the Company prior to delivery of and payment for the Securities, if at
any time prior to such time (i) trading in the Company's Common Stock shall have
been suspended by the Commission or The Nasdaq Stock Market, Inc. ("Nasdaq") or
trading in securities generally on the New York Stock Exchange or the Nasdaq
shall have been suspended or limited or minimum prices shall have been
established on such Exchange or Nasdaq, (ii) a banking moratorium shall have
been declared either by Federal or New York State authorities or (iii) there
shall have occurred subsequent to the signing hereof any outbreak or escalation
of hostilities, declaration by the United States of a national emergency or war
or other calamity or crisis the effect of which on financial markets is such as
to make it, in the sole judgment of the Initial Purchasers, impractical or
inadvisable to proceed with the offering or delivery of the Securities as
contemplated by the Offering Circular (exclusive of any supplement thereto).
(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 5 hereof, and provided further that Sections
1, 7 and 8 shall survive such termination and remain in full force and effect.
11. DEFAULT BY ONE OR MORE OF THE INITIAL PURCHASERS. If any one or
more of the Initial Purchasers shall fail to purchase and pay for any of the
Securities agreed to be purchased by such Initial Purchaser or Initial
Purchasers hereunder and such failure to purchase shall constitute a default in
the performance of its or their obligations under this Agreement, the remaining
Initial Purchasers shall be obligated severally to take up and pay for (in the
respective proportions which the amount of Securities set forth opposite their
names in Schedule I hereto bears to the aggregate amount of Securities set forth
opposite the names of all the remaining Initial Purchasers) the Securities which
the defaulting Initial Purchaser or Initial Purchasers agreed but failed to
purchase; PROVIDED, HOWEVER, that in the event that the aggregate amount of
Securities which the defaulting Initial Purchaser or Initial Purchasers agreed
but failed to purchase shall exceed 10% of the aggregate amount of Securities
set forth in Schedule I hereto, the remaining Initial Purchasers shall have the
right to purchase all, but shall not be under any obligation to purchase any, of
the Securities,
18
and if such nondefaulting Initial Purchasers do not purchase all of the
Securities, this Agreement will terminate without liability to any nondefaulting
Initial Purchaser or the Company. In the event of a default by any Initial
Purchaser as set forth in this Section 11, the Closing Time shall be postponed
for such period, not exceeding five Business Days, as the Initial Purchasers
shall determine in order that the required changes in the Offering Circular or
in any other documents or arrangements may be effected. Nothing contained in
this Agreement shall relieve any defaulting Initial Purchaser of its liability,
if any, to the Company and any nondefaulting Initial Purchaser for damages
occasioned by its default hereunder.
12. RELIANCE; NOTICES. In all dealings hereunder, the Initial
Purchasers shall act on behalf of each of the Initial Purchasers, and the
parties hereto shall be entitled to act and rely upon any statement, request,
notice or agreement on behalf of any Initial Purchaser made or given by the
Initial Purchasers jointly or by Goldman, Sachs & Co. on their behalf.
All statements, requests, notices and agreements hereunder shall be in
writing, and if to the Initial Purchasers shall be delivered or sent by mail,
telex or facsimile transmission to the Initial Purchasers in care of Goldman,
Sachs & Co., Attention: Registration Department (fax no. (212) 357- 1557) and
confirmed to Goldman, Sachs & Co., 32 Old Slip, 21st Floor, New York, New York
10005, Attention: Registration Department; and if to the Company shall be
delivered or sent by mail, telex or facsimile transmission to the address of the
Company set forth in the Offering Circular, Attention: General Counsel;
PROVIDED, HOWEVER, that any notice to an Initial Purchaser pursuant to Section
7(c) hereof shall be delivered or sent by mail, telex or facsimile transmission
to such Initial Purchaser at its address set forth in its Initial Purchasers'
Questionnaire, or telex constituting such Questionnaire, which address will be
supplied to the Company by the Initial Purchasers upon request. Any such
statements, requests, notices or agreements shall take effect upon receipt
thereof.
13. PARTIES. This Agreement shall inure to the benefit of and be
binding upon the Initial Purchasers, the Company 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
Initial Purchasers, the Company and the controlling persons and officers and
directors referred to in Sections 7 and 8 and their respective heirs, executors,
administrators, successors and assigns 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 Initial Purchasers, the Company and said
controlling persons and officers and directors and their respective heirs,
executors, administrators, successors and assigns, and for the benefit of no
other person, firm or corporation. No purchaser of Securities from any Initial
Purchaser shall be deemed to be a successor by reason merely of such purchase.
14. TIME OF THE ESSENCE. Time shall be of the essence of this
Agreement. As used herein, the term "business day" shall mean any day when the
Commission's office in Washington, D.C. is open for business.
15. GOVERNING LAW AND TIME. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE CONFLICTS OF LAWS PROVISIONS THEREOF. SPECIFIED TIMES OF DAY REFER TO NEW
YORK CITY TIME.
19
16. EFFECT OF HEADINGS. The Section and sub-section headings herein are
for convenience only and shall not affect the construction hereof.
17. COUNTERPARTS. This Agreement may be executed by any one of more of
the parties hereto 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 instrument.
20
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof, and upon
the acceptance hereof by Goldman, Sachs & Co., on behalf of each of the Initial
Purchasers, this letter and such acceptance hereof shall constitute a binding
agreement between each of the Initial Purchasers and the Company. It is
understood that your acceptance of this letter on behalf of each of the Initial
Purchasers is pursuant to the authority set forth in a form of Agreement among
Initial Purchasers, the form of which shall be submitted to the Company for
examination upon request, but without warranty on your part as to the authority
of the signers thereof.
Very truly yours,
NEXTLINK Communications, Inc.
By /s/ Richard A. Montfort, Jr.
--------------------------------
Name: Richard A. Montfort, Jr.
Title: Assistant Secretary
CONFIRMED AND ACCEPTED,
as of the date first above written:
Goldman, Sachs & Co.
Salomon Smith Barney Inc.
Credit Suisse First Boston
TD Securities (USA) Inc.
Barclays Capital Inc.
Chase Securities Inc.
BancBoston Robertson Stephens Inc.
Banc of America Securities LLC
Deutsche Banc Securities Inc.
JP Morgan Securities Inc.
PNC Capital Markets, Inc.
By: Goldman, Sachs & Co.
/s/ Goldman, Sachs & Co.
- ------------------------------------
(Goldman, Sachs & Co.)
SCHEDULE I
AGGREGATE
AGGREGATE PRINCIPAL AMOUNT
PRINCIPAL AMOUNT OF
OF SENIOR DISCOUNT
SENIOR NOTES TO BE NOTES-TO-BE
INITIAL PURCHASER PURCHASED PURCHASED
---------------------- --------------------------- -------------------------
Goldman, Sachs & Co. ................................... $140,000,000 $159,250,000
Salomon Smith Barney Inc. .............................. 120,000,000 136,500,000
Credit Suisse First Boston.............................. 20,000,000 22,750,000
TD Securities (USA) Inc................................. 20,000,000 22,750,000
Barclays Capital Inc.................................... 20,000,000 22,750,000
Chase Securities, Inc. ................................. 20,000,000 22,750,000
BancBoston Robertson Stephens Inc....................... 12,000,000 13,650,000
Banc of America Securities LLC.......................... 12,000,000 13,650,000
Deutsche Banc Securities Inc............................ 12,000,000 13,650,000
J.P. Morgan Securities Inc.............................. 12,000,000 13,650,000
PNC Capital Markets, Inc................................ --------------------------- -------------------------
Total......................................... $400,000,000 $455,000,000
--------------------------- -------------------------
--------------------------- -------------------------
22
ANNEX I
(1) The Securities have not been and will not be registered under the
Act and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons except in accordance with Regulation S under
the Act or pursuant to an exemption from the registration requirements of the
Act. The Initial Purchasers represent that they have offered and sold the
Securities, and will offer and sell the Securities (i) as part of their
distribution at any time and (ii) otherwise until 40 days after the later of the
commencement of the offering and the Closing Date, only in accordance with Rule
903 of Regulation S or Rule 144A under the Act. Accordingly, the Initial
Purchasers agree that neither they nor any persons acting on their behalf has
engaged or will engage in any directed selling efforts with respect to the
Securities, and they have complied and will comply with the offering
restrictions requirement of Regulation S. The Initial Purchasers agree that, at
or prior to confirmation of sale of Securities (other than a sale pursuant to
Rule 144A), they will have sent to each distributor, dealer or person receiving
a selling concession, fee or other remuneration that purchases Securities from
it during the restricted period a confirmation or notice to substantially the
following effect:
"THE SECURITIES COVERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933 (THE "SECURITIES ACT") AND MAY NOT BE
OFFERED AND SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS (I) AS PART OF THEIR DISTRIBUTION AT ANY TIME
OR (II) OTHERWISE UNTIL 40 DAYS AFTER THE LATER OF THE COMMENCEMENT OF
THE OFFERING AND THE CLOSING DATE, EXCEPT IN EITHER CASE IN ACCORDANCE
WITH REGULATION S (OR RULE 144A IF AVAILABLE) UNDER THE SECURITIES ACT.
TERMS USED ABOVE HAVE THE MEANING GIVEN TO THEM BY REGULATION S."
Terms used in this paragraph have the meanings given to them by Regulation S.
The Initial Purchasers further agree that they have not entered and
will not enter into any contractual arrangement with respect to the distribution
or delivery of the Securities, except with their affiliates or with the prior
written consent of the Company.
(2) The Initial Purchasers further agree, on behalf of themselves and
their affiliates, that (a) they have not offered or sold and, prior to the date
six months after the date of issue of the Securities, will not offer or sell any
Securities to persons in the United Kingdom except to persons whose ordinary
activities involve them in acquiring, holding, managing or disposing of
investments (as principal or agent) for the purpose of their businesses or
otherwise in circumstances which have not resulted and will not result in an
offer to the public in the United Kingdom within the meaning of the Public
Offers of Securities Regulations 1995, (b) they have complied, and will comply,
with all applicable provisions of the Financial Services Act 1996 of Great
Britain with respect to anything done by them in relation to the Securities in,
from or otherwise involving the United Kingdom and (c) they have only issued or
passed on and will only issue or pass on in the United Kingdom any document
received by them in connection with the issuance of the Securities to a person
who is of a kind described in Article 11(3) of the Financial Services Act 1986
(Investment Advertisements) (Exemptions) Order 1996 of Great Britain or is a
person to whom the document may otherwise lawfully be issued or passed on.
23
Exhibit A-1
FORM OF OPINION OF WILLKIE FARR & GALLAGHER
TO BE DELIVERED PURSUANT TO SECTION 6(a)
(i) The Company has been duly incorporated and is validly existing
as a corporation under the laws of the State of Delaware.
(ii) The Company has power and authority to own, lease and operate
its properties and to conduct its business as described in the Offering Circular
and to enter into and perform its obligations under the Purchase Agreement.
(iii) The Company 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.
(iv) The authorized, issued and outstanding capital stock of the
Company is as set forth in the Offering Circular as of the dates indicated
therein; 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;
and 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.
(v) Each Designated Subsidiary has been duly formed and is validly
existing as a corporation, limited liability company or limited partnership in
good standing, as applicable, under the laws of the jurisdiction of its
formation, and has power and authority to own, lease and operate its properties
and to conduct its business as described in the Offering Circular; all of the
issued and outstanding shares, membership interests or partnership interests of
each Designated Subsidiary have been duly authorized and validly issued, are
fully paid and non-assessable and, except as otherwise set forth in the Offering
Circular in respect of the minority interests described therein, are owned by
the Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance, claim or equity.
(vi) The Purchase Agreement and the Registration Rights Agreement
have been duly authorized, executed and delivered by the Company, and the
Registration Rights Agreement constitutes a valid and legally binding agreement
of the Company enforceable against the Company in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors' rights and to general equity principles, PROVIDED that such counsel
need express no opinion as to the enforceability of provisions with respect to
indemnity for liabilities arising under the Securities Act of 1933, as amended.
(vii) The Indentures have been duly authorized, executed and
delivered; and, assuming due execution by the Trustee, the Indentures constitute
valid and legally binding obligations of the Company enforceable in accordance
with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors' rights and to general equity principles.
A-1-1
(viii) The Securities have been duly authorized and executed by the
Company and authenticated, issued and delivered in accordance with the
Indentures and constitute valid and legally binding obligations of the Company
entitled to the benefits provided by the Indentures, subject, as to enforcement,
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors' rights
and to general equity principles. In rendering the opinion set forth in this
paragraph (viii), as to authentication we have relied solely on a certificate of
the Trustee as to the authentication of the Securities by a duly authorized
representative of the Trustee and have assumed that the Securities so
authenticated have been delivered to you and paid for by you in accordance with
the Purchase Agreement. The Securities and the Indentures conform in all
material respects to the descriptions thereof in the Offering Circular;
(ix) The Exchange Securities have been duly and validly authorized
by the Company and, when executed by the Company, authenticated by the Trustee
in accordance with the provisions of the Indentures and when the Indentures have
been duly qualified under the Trust Indenture Act and the Exchange Securities
have been exchanged for the Securities pursuant to the Registration Rights
Agreement, will constitute valid and legally binding obligations of the Company,
entitled to the benefits of the Indentures, and enforceable against the Company
in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors' rights and to general equity principles.
(x) The information in the Offering Circular under the caption
"Description of the Notes", to the extent that it constitutes a summary of the
terms of the Securities, and under the caption "Plan of Distribution", and under
the caption "Regulation" when considered together with the information under the
caption "Business--Regulatory Overview" included in the Company's Annual Report
on Form 10-K, filed on March 29, 1999, which is incorporated therein by
reference, to the extent that it constitutes matters of law, summaries of legal
matters, or legal conclusions, has been reviewed by us and is correct in all
material respects.
(xi) The statements set forth in the Offering Circular under the
caption "Material United States Federal Income Tax Consequences", insofar as
such statements purport to summarize certain United States federal income and
estate tax consequences of the ownership and dispensation of the Securities by
certain U.S. Holders and non-U.S. Holders (as such terms are defined therein) of
the Securities, provide a fair summary of such consequences under current law.
(xii) All descriptions in the Offering Circular of contracts and
other documents to which the Company or any of its subsidiaries are a party are
accurate in all material respects; to the best of our knowledge, there are no
franchises, contracts, indentures, mortgages, loan agreements, notes, leases or
other instruments that would be required to be described in the Offering
Circular that are not described or referred to in the Offering Circular other
than those described or referred to therein and the descriptions thereof or
references thereto are correct in all material respects.
A-1-2
(xiii) The documents incorporated by reference in the Offering
Circular (other than the financial statements and related schedules therein, as
to which such counsel need express no opinion), as of the date of the Offering
Circular, complied as to form in all material respects with the requirements of
the Exchange Act and the rules and regulations of the Commission thereunder.
(xiv) To our best knowledge, neither the Company nor any of its
subsidiaries is in violation of its charter or by-laws or other constituting or
operative document or agreement and, to the best of our knowledge, no default by
the Company or any of its subsidiaries exists in the due performance or
observance of any material obligation, agreement, covenant or condition
contained in any contract, indenture, mortgage, loan agreement, note, lease or
other agreement or instrument that is described or referred to in the Offering
Circular.
(xv) 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 under the Purchase Agreement, the Registration Rights
Agreement or the Indentures, in connection with the offering, issuance or sale
of the Securities hereunder or thereunder or the consummation of the actions
contemplated by the Purchase Agreement, the Registration Rights Agreement or the
Indentures, except such as may be required under the Act and the Trust Indenture
Act in connection with the Exchange Offer.
(xvi) The issue and sale of the Securities, the execution, delivery
and performance of the Purchase Agreement, the Indentures, the Securities, the
Registration Rights Agreement and any other agreement or instrument entered into
or issued or to be entered into or issued by the Company in connection with the
transactions contemplated hereby, thereby or in the Offering Circular, and the
consummation of the transactions contemplated herein, therein and in the
Offering Circular (including the issuance and sale of the Securities by the
Company hereunder), the compliance by the Company with its obligations hereunder
and thereunder have been duly authorized by all necessary corporate action on
the part of the Company 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 a Repayment Event under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Company or any of its subsidiaries, pursuant to any contract, indenture,
mortgage, deed of trust, loan or credit agreement, note, lease, or any other
agreement or instrument known to such counsel 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 subsidiaries thereof is
subject, except for such conflicts, breaches or defaults or liens, charges or
encumbrances that, singly or in the aggregate, would not result in a Material
Adverse Effect, nor will such action result in any violation of the provisions
of the constituting or operative document or agreement of the Company or any of
its subsidiaries 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 or properties.
(xvii) The Company is not, and upon the issuance and sale of the
Securities and the application of the net proceeds therefrom will not be, an
"investment company" or an entity "controlled" by an "investment company," as
such terms are defined in the 1940 Act.
A-1-3
Such counsel shall also state that although such counsel does not
assume any responsibility for the accuracy, completeness or fairness of the
statements contained in the Offering Circular, except for those referred to, and
to the extent stated, in subsections (x), (xi) and (xii) of this opinion,
nothing has come to the attention of such counsel that would lead them to
believe that, as of its date, the Offering Circular or any further amendment or
supplement thereto made by the Company prior to each Closing Time or any
documents incorporated by reference therein (other than the financial statements
and related schedules therein, as to which such counsel need express no opinion)
contained an untrue statement of a material fact or omitted to state a material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading or that, as of such Closing Time, the
Offering Circular or any further amendment or supplement thereto made by the
Company prior to such Closing Time or any documents incorporated by reference
therein (other than the financial statements and related schedules therein, as
to which such counsel need express no opinion) contains an untrue statement of a
material fact or omits to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.
In rendering such opinion, such counsel (A) may rely (i) as to matters
involving the application of the laws of the State of Washington, upon the
opinion of the General Counsel or Securities Counsel of the Company (which
opinion shall be dated and furnished to the Initial Purchasers at the Closing
Time, shall be satisfactory in form and substance to counsel for the Initial
Purchasers and shall expressly state that the Initial Purchasers may rely on
such opinion as if it were addressed to them), provided that Willkie Farr &
Gallagher shall state in their opinion that they believe that they and the
Initial Purchasers are justified in relying upon such opinion, and (ii) as to
matters of fact (but not as to legal conclusions), to the extent they deem
proper, on certificates of responsible officers of the Company and public
officials and (B) may state that they express no opinion as to the laws of any
jurisdiction outside the United States. Such opinion shall not state that it is
to be governed or qualified by, or that it is otherwise subject to, any
treatise, written policy or other document relating to legal opinions,
including, without limitation, the Legal Opinion Accord of the ABA Section of
Business Law (1991).
A-1-4
Exhibit A-2
FORM OF OPINION OF GENERAL COUNSEL OR SECURITIES COUNSEL
TO BE DELIVERED PURSUANT TO SECTION 6(a)
(i) There is not pending or, to the best of my knowledge, threatened
any action, suit, proceeding, inquiry or investigation, to which the Company or
any subsidiary thereof is a party, or to which the property of the Company or
any subsidiary thereof is subject, before or brought by any court or
governmental agency or body, which could 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 the Purchase Agreement, the Indentures, the
Registration Rights Agreement or the Securities or the performance by the
Company of its obligations thereunder or the transactions contemplated by the
Offering Circular.
(ii) To the best of my knowledge and except as set forth in or
contemplated by the Offering Circular with respect to systems under development,
(a) each of the Company and its Designated Subsidiaries has all Authorizations
of and from, and has made all declarations and filings with, all Federal, state,
local and other governmental authorities, all self-regulatory organizations and
all courts and other tribunals, which are necessary or appropriate for the
Company and its Designated Subsidiaries to own, lease, license, use and
construct its properties and assets and to conduct its business in the manner
described in the Offering Circular, except to the extent that the failure to
obtain any such Authorizations or make any such declaration or filing would not,
singly or in the aggregate, reasonably be expected to result in a Material
Adverse Effect, (b) all such Authorizations are in full force and effect with
respect to the Company and its Designated Subsidiaries, (c) no event has
occurred that management of the Company reasonably believes is likely to result
in the revocation, termination or modification of any such Authorization and (d)
the Company and its Designated Subsidiaries are in compliance in all material
respects with the terms and conditions of all such Authorizations and with the
rules and regulations of the regulatory authorities and governing bodies having
jurisdiction with respect thereto.
(iii) To the best of my knowledge, neither the execution and delivery
of the Purchase Agreement, the Indentures, the Registration Rights Agreement or
the Securities, nor the consummation by the Company of the transactions
contemplated hereby or thereby will cause any suspension, revocation,
impairment, forfeiture, nonrenewal or termination of any Authorization.
In rendering such opinion, such counsel (A) may rely as to matters of
fact (but not as to legal conclusions), to the extent he deems proper, on
certificates of responsible officers of the Company and public officials and (B)
may state that he expresses no opinion as to the laws of any jurisdiction
outside the United States. Such opinion shall not state that it is to be
governed or qualified by, or that it is otherwise subject to, any treatise,
written policy or other document relating to legal opinions, including, without
limitation, the Legal Opinion Accord of the ABA Section of Business Law (1991).
A-2-1