WORLD OMNI MASTER OWNER TRUST
$54,000,000
Series 2000-1 Floating Rate Automobile Dealer Floorplan
Asset Backed Notes, Class B
UNDERWRITING AGREEMENT
March 29, 2000
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
World Financial Center
North Tower
New York, New York 10281-1201
Dear Sirs:
1. Introductory. WODFI LLC, a Delaware limited liability company (the
"Transferor") and World Omni Financial Corp. ("World Omni"), a Florida
corporation, hereby confirm their respective agreements with you (the
"Underwriter"), with respect to the sale by the Transferor to the Underwriter of
$54,000,000 aggregate principal amount of Floating Rate Asset Backed Notes,
Class B (the "Notes") of the World Omni Master Owner Trust (the "Issuer" or the
"Trust") under the terms and conditions herein contained.
The Issuer was created as a Delaware business trust under the Trust
Agreement (the "Trust Agreement"), dated as of November 22, 1999, between the
Transferor and Chase Manhattan Bank Delaware, as owner trustee (in such
capacity, the "Owner Trustee"). The Notes will be issued pursuant to an Amended
and Restated Indenture to be dated as of the Closing Date (the "Indenture"),
between the Issuer and Harris Trust & Savings Bank, as indenture trustee (in
such capacity, the "Indenture Trustee"), as supplemented by the Series 2000-1
Supplement (the "Series Supplement"), to be dated as of the Closing Date,
between the Issuer and the Indenture Trustee. The Notes will be secured by the
Collateral pledged to the Indenture Trustee under the Indenture. The Collateral
includes, among other things, wholesale receivables generated by World Omni from
time to time in certain revolving financing arrangements with automobile dealers
to finance their automobile, light duty truck and other motor vehicle inventory
and collections on the Receivables. Certain Receivables existing at the opening
of business on November 22, 1999 (the "Initial Closing Date") have been, and
specified Receivables arising thereafter have been and will continue to be,
sold, assigned, transferred and conveyed by World Omni to the Transferor
pursuant to the Receivables Purchase Agreement originally dated as of November
22, 1999, to be amended and restated as of the Closing Date (the "RPA") between
World Omni and the Transferor. The Transferor
has sold, assigned, transferred and conveyed and will continue to sell, assign,
transfer and convey such property to the Issuer pursuant to the Trust Sale and
Servicing Agreement originally dated as of November 22, 1999, to be amended and
restated as of the Closing Date (the "Sale and Servicing Agreement") among World
Omni, the Transferor and the Issuer and the Issuer has pledged such property to
the Indenture Trustee. Capitalized terms used herein that are not otherwise
defined shall have the meanings ascribed thereto in Appendix A to the Sale and
Servicing Agreement.
The Trust Agreement, the Sale and Servicing Agreement, the Indenture,
the Series Supplement, the RPA and the Administration Agreement (the
"Administrative Agreement"), dated as of November 22, 1999, among the Issuer,
World Omni and the Indenture Trustee are referred to herein collectively as the
"Basic Documents".
2. Representations and Warranties of World Omni and the Transferor.
(a) Each of World Omni and the Transferor, jointly and severally,
represents and warrants to, and agrees with, the Underwriter that on the date
hereof and on the Closing Date:
(i) A registration statement on Form S-3 (No. 333-84579),
including a form of prospectus, relating to the registration of the Notes has
been filed with the Securities and Exchange Commission (the "Commission") and,
the offering thereof from time to time in accordance with Rule 415 of the rules
and regulations of the Commission, either (1) has been declared effective under
the Securities Act of 1933, as amended (the "Act"), and is not proposed to be
amended or (2) is proposed to be amended by amendment or post-effective
amendment. If the Transferor does not propose to amend such registration
statement and if any post-effective amendment to such registration statement has
been filed with the Commission prior to the execution and delivery of this
Agreement, the most recent such post-effective amendment has been declared
effective by the Commission. For purposes of this Agreement, "Effective Time"
means if the Transferor has advised the Underwriter that it (1) does not propose
to amend such registration statement, the date and time as of which such
registration statement, or the most recent post-effective amendment thereto (if
any) filed prior to the execution and delivery of this Agreement, was declared
effective by the Commission or (2) proposes to file an amendment or
post-effective amendment to such registration statement, the date and time as of
which such registration statement, as amended by such amendment or
post-effective amendment, as the case may be, is declared effective by the
Commission. "Effective Date" means the date of the Effective Time. Such
registration statement, as amended at the Effective Time, including all
information, if any, deemed to be a part of such registration statement as of
the Effective Time pursuant to Rule 430A(b) under the Act, and including the
exhibits thereto, is hereinafter referred to as the "Registration Statement",
and the form of prospectus relating to the Notes, in the form transmitted to the
Commission for filing pursuant to and in accordance with Rule 424(b) under the
Act ("Rule 424(b)"), or (if no such filing is required) as included in the
Registration Statement, is hereinafter referred to as the "Prospectus". The
Prospectus delivered to you for use in connection with the offering of the Notes
will be identical to the electronically transmitted copies thereof filed with
the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval
("EDGAR") system, except to the extent permitted by Regulation S-T.
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(ii) If the Effective Time is prior to the execution and
delivery of this Agreement: (A) on the Effective Date, the Registration
Statement conformed, and on the date of this Agreement the Registration
Statement will conform in all material respects with the requirements of the Act
and the rules and regulations of the Commission promulgated under the Act (the
"Rules and Regulations") and at such times did not include any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading and (B) on
the date of this Agreement, at the time of the filing of the Prospectus pursuant
to Rule 424(b) and at the Closing Date (as such term is defined in Section 3
hereof), the Prospectus will conform in all material respects to the
requirements of the Act and the Rules and Regulations and does not include, or
will not include, any untrue statement of a material fact, nor does the
Prospectus omit, nor will it omit, any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading. If the Effective Time is subsequent to the execution and
delivery of this Agreement: (A) on the Effective Date, the Registration
Statement and the Prospectus will conform in all material respects to the
requirements of the Act and the Rules and Regulations and the Registration
Statement will not include any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein not misleading and (B) on the Effective Date, at the time of
the filing of the Prospectus pursuant to Rule 424(b), if required, and at the
Closing Date, the Prospectus will not include any 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, not misleading. The two immediately preceding sentences do not apply to
statements in or omissions from the Registration Statement or Prospectus based
upon written information furnished to the Transferor by the Underwriter
specifically for use therein. The Prospectus delivered to you for use in
connection with the offering of the Notes will be identical to the
electronically transmitted copies thereof filed with the Commission pursuant to
the EDGAR system, except to the extent permitted by Regulation S-T.
(iii) The Basic Documents conform in all material respects to the
descriptions thereof and the statements in relation thereto contained in the
Prospectus.
(iv) The Notes conform in all material respects to the
description thereof and the statements in relation thereto contained in the
Prospectus; the Notes have been duly and validly authorized and, when executed,
issued, authenticated and delivered in accordance with the Indenture and when
delivered to the Underwriter, against payment of the consideration specified
herein, will be duly and validly issued and outstanding and entitled to the
benefits of the Indenture.
(v) None of the Issuer, Transferor or World Omni is now or, as
a result of the transactions contemplated by this Agreement, will become, an
"investment company", nor is any of them "controlled" by an "investment company"
as such terms are defined in the Investment Company Act of 1940, as amended (the
"Investment Company Act").
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(vi) As of the Closing Date, (A) each representation and
warranty of World Omni in the RPA will be true and correct, the Underwriter may
rely on such representations and warranties and neither World Omni nor the
Transferor will be in breach of the RPA; (B) each representation and warranty of
the Transferor and World Omni in the Sale and Servicing Agreement will be true
and correct, the Underwriter may rely on such representations and warranties and
neither World Omni, the Transferor nor the Trust will be in breach of the Sale
and Servicing Agreement; and (C) each representation and warranty of the
Transferor in the Trust Agreement will be true and correct, the Underwriter may
rely on such representations and warranties and the Transferor will not be in
breach of the Trust Agreement.
(vii) The representations and warranties in Officer's
Certificates of World Omni or the Transferor delivered on the Initial Closing
Date, the Closing Date or on each Transfer Date, as the case may be, were or
will be true and correct as of the date of such Officer's Certificate, and the
Underwriter may rely on such representations and warranties as if they were set
forth herein in full.
(viii) The Pool Balance as of the Closing Date, will be equal to
at least the Required Pool Balance.
(ix) Since the respective dates as of which information is given
in the Registration Statement and the Prospectus, except as otherwise set forth
therein, (A) there has been no material adverse change or development resulting
in a prospective material adverse change in the condition, financial or
otherwise, or business prospects, of World Omni or the Transferor, whether or
not arising in the ordinary course of business and (B) there have been no
transactions entered into by World Omni or the Transferor, other than those in
the ordinary course of their respective businesses, that are material with
respect to World Omni or the Transferor.
(x) The execution, delivery and performance by each of World
Omni and the Transferor, as the case may be, of this Agreement, the Basic
Documents to which it is a party and the Notes, the consummation of the
transactions contemplated herein and therein and compliance by it with its
obligations hereunder and thereunder have been duly and validly authorized by
all necessary action (corporate or otherwise) and will not conflict with or
constitute a breach of or default under, or result in the creation or imposition
of any Lien (except as permitted by the Basic Documents) upon any of its
property or assets pursuant to any contract, indenture, mortgage, loan
agreement, note, lease or other instrument to which it may be a party, by which
it may be bound or to which any of its properties or assets is subject, nor will
such action result in any violation of the provisions of its charter or
organizational documents, bylaws, or any applicable law, administrative
regulation or administrative or court decree.
(xi) There is no action, suit or proceeding before or by any
court or governmental agency or body, domestic or foreign, now pending or, to
the knowledge of
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either World Omni or the Transferor threatened, against or affecting World Omni
or the Transferor, that is required to be disclosed in the Registration
Statement and that is not disclosed or that might result in any material adverse
change in its condition, financial or otherwise, or in its earnings, business
affairs or business prospects or that might materially and adversely affect its
properties or assets or that might materially and adversely affect the
consummation of this Agreement or any Basic Document to which any of such
entities is a party or by which it may be bound; all pending legal or
governmental proceedings to which World Omni or the Transferor is a party or of
which any of their respective properties or assets is the subject that are not
described in the Registration Statement, including ordinary routine litigation
incidental to their respective businesses, are, considered in the aggregate, not
material; and there are no contracts or documents of World Omni or the
Transferor, that are required to be filed as exhibits to the Registration
Statement by the Act or by the Rules and Regulations that have not been so
filed.
(xii) Except such as may be required by the Act, the Rules and
Regulations or state securities laws, no authorization, approval or consent of
any court, governmental authority or agency or any other Person is necessary in
connection with (A) the issuance of the Notes or the offering and sale of the
Notes, (B) the execution, delivery and performance by World Omni or the
Transferor of this Agreement, any Basic Document to which it is a party or the
Notes or (C) the consummation by World Omni or the Transferor of the
transactions contemplated hereby or thereby, except such authorizations,
approvals or consents as will have been obtained and are in full force and
effect as of the Closing Date.
(xiii) This Agreement has been duly executed and delivered by
World Omni and the Transferor.
(xiv) As of the Closing Date, each of the Basic Documents to
which either World Omni or the Transferor is a party has been duly executed and
delivered by each such entity, as applicable, and, assuming the due
authorization, execution and delivery thereof by the other parties thereto, will
constitute the legal, valid and binding agreement of World Omni or the
Transferor, as the case may be, enforceable in accordance with its terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting enforcement of
creditors' rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).
(xv) The Transferor will use the proceeds of the Notes as
described in the Prospectus under the caption "Use of Proceeds".
(xvi) Neither World Omni nor the Transferor conducts business or
has affiliates who conduct business in Cuba or with the government of Cuba
within the meaning of Section 517.075 of the Florida Securities and Investors
Protection Act or Regulation Section 3E-900.001 promulgated thereunder.
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(xvii) World Omni is current in the payment of taxes to the State
of Florida and fees to the Florida Department of State and its status is
"active" and the Transferor is current in the payment of any taxes required to
be paid by it;
(xviii) Each of World Omni and the Transferor has corporate power
and authority to own, lease and operate its properties and to conduct its
business as described in the Prospectus and to enter into and to perform its
obligations under this Agreement and each Basic Document to which it is a party
or by which it may be bound.
(b) Any Officer's Certificate signed by any officer of World Omni or
the Transferor and delivered to the Underwriter or counsel for the Underwriter
shall be deemed a representation and warranty of World Omni or the Transferor,
as the case may be, to the Underwriter as to the matters covered thereby.
3. Purchase, Sale and Delivery of the Notes. On the basis of and in
reliance on the representations, warranties and agreements herein contained, but
subject to the terms and conditions herein set forth, the Transferor agrees to
sell to the Underwriter, severally and not jointly, and the Underwriter,
severally and not jointly, agrees to purchase from the Transferor the Notes at a
purchase price equal to 99.775% of the aggregate initial principal balance
thereof.
The Notes will initially be represented by one or more notes registered
in the name of Cede & Co., as the nominee of The Depository Trust Company
("DTC"). The interests of beneficial owners of the Notes will be represented by
book entries on the records of DTC and participating members thereof. Definitive
instruments evidencing the Notes will be available only under the limited
circumstances specified in the Indenture.
The Transferor will deliver the Notes to the Underwriter, against
payment of the purchase price therefor in immediately available funds payable to
the order of the Transferor, at the office of Kirkland & Ellis, 200 East
Randolph Drive, Chicago, Illinois 60601 (or at such other location as agreed
upon among World Omni and the Underwriter) at 10:00 A.M., New York time, on
April 6, 2000, or at such other time not later than five full business days
thereafter, as World Omni and the Underwriter determine, such time being herein
referred to as the "Closing Date". The instruments evidencing the Notes will be
made available for inspection at the above offices of Kirkland & Ellis (or at
such other location agreed upon among World Omni and the Underwriter) at least
24 hours prior to the Closing Date.
Pursuant to Rule 15c6-1(d) under the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), World Omni, the Transferor and the Underwriter
have agreed that the Closing Date will be not less than [__] business days
following the date hereof.
4. Certain Agreements of the Underwriter.
(a) It is understood that the Underwriter proposes to offer the
Notes for sale to the public as set forth in the Prospectus.
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(b) The Underwriter covenants and agrees that prior to the date which
is one year and one day after the last date upon which (i) each Class of Notes
of the Issuer has been paid in full, and (ii) the Trust Agreement has
terminated, the Underwriter will not institute against, or join any other Person
in instituting against, the Transferor or Issuer, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other
proceeding under any federal or state bankruptcy or similar law. The foregoing
shall not limit the right of the Underwriter to file any claim in or otherwise
take actions with respect to any such proceeding instituted by any Person not
under such a constraint.
(c) Until the Underwriter informs the Transferor in writing that all
of the Notes have been sold by the Underwriter, the Underwriter covenants and
agrees to provide to the Transferor each day, with respect to sales of the Notes
made by such Underwriter on such date at any price other than the public
offering price set forth on the cover page of the Prospectus, the information in
writing (which may be in the form of a telecopy) necessary to enable the
Transferor to prepare and file or transmit for filing with the Commission the
information requested by the Commission to be filed with respect to the
distribution of the Notes.
5. Certain Agreements of the Transferor and World Omni. Each of World
Omni and the Transferor jointly and severally covenants and agrees with the
Underwriter that:
(a) If the Effective Time is prior to the execution and delivery of
this Agreement, the Transferor will file the Prospectus with the Commission
pursuant to and in accordance with subparagraph (2) (or, if applicable and if
consented to by the Underwriter, subparagraph (5)) of Rule 424(b), not later
than date required under Rule 424(b). The Transferor will advise the Underwriter
promptly of any such filing pursuant to Rule 424(b).
(b) The Transferor will advise the Underwriter promptly of any
proposal to amend or supplement the registration statement as filed or the
related prospectus or the Registration Statement or the Prospectus and will not
effect any such amendment or supplement without the consent of the Underwriter.
The Transferor will advise the Underwriter promptly of the effectiveness of the
Registration Statement (if the Effective Time is subsequent to the execution and
delivery of this Agreement), of any amendment or supplement of the Registration
Statement or the Prospectus and of the institution by the Commission of any stop
order proceedings in respect of the Registration Statement. The Transferor will
use its best efforts to prevent the issuance of any such stop order and to
obtain as soon as possible its lifting, if issued. The Transferor will comply
with the Act, the Exchange Act, the Trust Indenture Act of 1939, as amended and
the rules and regulations contemplated thereunder so as to permit the completion
of the distribution of the Notes as contemplated in this Agreement and in the
Prospectus. The Transferor will file with the Commission all documents required
to be filed pursuant to the Exchange Act within the time periods specified in
the Exchange Act or the rules and regulations promulgated thereunder.
(c) If, at any time when a prospectus relating to the Notes is
required to be delivered under the Act, any event occurs as a result of which
the Prospectus as then
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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, not
misleading, or if it is necessary at any time to amend or supplement the
Prospectus to comply with the Act, the Transferor promptly will prepare and
file, or cause to be prepared and filed, with the Commission an amendment or
supplement that will correct such statement or omission or effect such
compliance. Neither the consent of the Underwriter to, nor the delivery by the
Underwriter of, any such amendment or supplement shall constitute a waiver of
any of the conditions set forth in Section 6 hereof.
(d) As soon as practicable, but not later than the Availability Date
(as defined below), the Transferor will cause the Indenture Trustee to make
generally available to the Noteholders an earnings statement with respect to the
Issuer covering a period of at least 12 months beginning after the Effective
Date that will satisfy the provisions of Section 11(a) of the Act. For the
purpose of the preceding sentence, "Availability Date" means the 45th day after
the end of the fourth fiscal quarter following the fiscal quarter that includes
the Effective Date, except that, if such fourth fiscal quarter is the last
quarter of the fiscal year of the Issuer, "Availability Date" means the 90th day
after the end of such fourth fiscal quarter.
(e) The Transferor will furnish to the Underwriter copies of the
registration statement as originally filed with the Commission and each
amendment thereto (in each case at least one of which will include all
exhibits), each related preliminary prospectus, the Prospectus and all
amendments and supplements to such documents, in each case as soon as available
and in such quantities as the Underwriter may reasonably request.
(f) The Transferor will arrange for the qualification of the Notes
for sale under the laws of such jurisdictions in the United States as the
Underwriter may designate and will continue such qualifications in effect so
long as required for the distribution of the Notes, provided that neither the
Transferor nor the Issuer shall be obligated to qualify to do business nor
become subject to service of process generally, but only to the extent required
for such qualification, in any jurisdiction in which it is not currently so
qualified.
(g) So long as any Notes are outstanding, the Transferor or World
Omni, as the case may be, will make good faith efforts to deliver or cause to be
delivered to the Underwriter, as soon as practicable after each becomes
available, copies of (i) each report relating to the Notes required to be
prepared under Sections 7.3 and 7.4 of the Indenture, (ii) the annual statement
as to compliance and the annual statement of a firm of independent public
accountants furnished pursuant to Section 3.09 of the Indenture and Section 3.6
of the Sale and Servicing Agreement, respectively, (iii) each certificate or
notice delivered by the Servicer pursuant to Sections 3.4 and 3.5 of the Sale
and Servicing Agreement and Section 5.02 of the Series Supplement, (iv) each
periodic report required to be filed by the Transferor or the Issuer with the
Commission pursuant to the Exchange Act, or any order of the Commission
thereunder and (v) such other information concerning the Transferor, World Omni,
the Issuer or the Notes as the Underwriter may reasonably request from time to
time.
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(h) World Omni and the Transferor will pay all expenses incident to
the performance of their respective obligations under this Agreement, including
without limitation, (i) expenses incident to the word processing, printing and
reproduction of the registration statement as originally filed with the
Commission and each amendment thereto, preliminary prospectuses and the
Prospectus (including any amendments and supplements thereto), (ii) the fees and
disbursements of the Indenture Trustee, the Owner Trustee and their respective
counsel, (iii) the fees and disbursements of counsel and the independent public
accountants of the Transferor, the Issuer and World Omni, (iv) the fees charged
by each of Moody's Investors Service, Inc. ("Moody's"), Fitch IBCA ("Fitch") and
Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
Inc. ("Standard & Poor's" and, together with Moody's and Fitch, the "Rating
Agencies") in connection with the rating of the Notes, (v) the fees of DTC in
connection with the book-entry registration of the Notes and (vi) expenses
(including reasonable fees and disbursements of counsel) incurred by the
Underwriter pursuant to Section 5(f) hereof in connection with the qualification
of the Notes for sale under the laws of such jurisdictions in the United States
as the Underwriter may designate. If this Agreement is terminated by the
Underwriter in accordance with the provisions of Section 6 or clause (i) or
clause (ii) of Section 10 hereof, the Transferor and World Omni shall reimburse
the Underwriter for all of its out-of-pocket expenses, including the reasonable
fees and disbursements of counsel to the Underwriter.
(i) For a period of 45 days from the date hereof, neither the
Transferor nor World Omni or any of their respective affiliates will, without
the prior written consent of the Underwriter, directly or indirectly, offer,
sell or contract to sell or announce the offering of, in a public or private
transaction, any other collateralized securities similar to the Notes (other
than the Issuer's Series 2000-1 Floating Rate Automobile Dealer Floorplan Asset
Backed Notes, Class A).
(j) So long as any Notes are outstanding, the Transferor and World
Omni will cause to be delivered to the Underwriter a reliance letter relating to
each Opinion of Counsel delivered to the Owner Trustee, the Indenture Trustee or
any Rating Agency by counsel to the Transferor or World Omni relating to the
transactions contemplated by this Agreement or the Basic Documents.
(k) To the extent, if any, that the rating provided with respect to
any Notes by any Rating Agency is conditional upon the furnishing of documents
or the taking of any other actions by the Transferor, the Issuer or World Omni,
the Transferor, the Issuer or World Omni, as the case may be, shall furnish such
documents and take any such other actions.
6. Conditions of the Obligations of the Underwriter. The obligation of the
Underwriter to purchase and pay for the Notes will be subject to the accuracy of
the respective representations and warranties on the part of the Transferor and
World Omni herein, to the accuracy of the statements of the respective officers
of the Transferor and World Omni made pursuant to the provisions hereof, to the
performance by the Transferor and World Omni of their respective obligations
hereunder and to the following additional conditions precedent:
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(a) On (i) the date of this Agreement, the Underwriter, World Omni,
the Issuer and the Transferor shall have received a letter or letters, dated the
date of delivery thereof (which, if the Effective Time is prior to the execution
and delivery of this Agreement, shall be on or prior to the date of this
Agreement or, if the Effective Time is subsequent to the execution and delivery
of this Agreement, shall be prior to the filing of the amendment or
post-effective amendment to the registration statement to be filed shortly prior
to the Effective Time), of Arthur Andersen LLP ("Arthur Andersen") confirming
that they are independent public accountants within the meaning of the Act and
the Rules and Regulations, substantially in the form of the draft or drafts to
which the Underwriter has previously agreed and otherwise in form and in
substance satisfactory to the Underwriter and counsel for the Underwriter and
(ii) on the Closing Date, the Underwriter, World Omni, the Issuer and the
Transferor shall have received a letter or letters, dated as of the Closing
Date, from Arthur Andersen, updating each letter delivered pursuant to clause
(i) above, in form and substance satisfactory to the Underwriter and counsel for
the Underwriter.
(b) If the Effective Time has not occurred prior to the date of this
Agreement, the Effective Time shall be the date of execution and delivery of
this Agreement, or the next business day after the date of this Agreement or
such later date as shall have been consented to by the Underwriter. If the
Effective Time is prior to the execution and delivery of this Agreement, the
Prospectus shall have been filed with the Commission in accordance with the
Rules and Regulations and Section 5(a) hereof. Prior to the Closing Date, no
stop order suspending the effectiveness of the Registration Statement shall have
been issued and no proceedings for that purpose shall have been instituted or,
to the knowledge of the Transferor, World Omni or the Underwriter, shall be
contemplated by the Commission.
(c) The Underwriter shall have received certificates of the
President, any Vice President or the Treasurer or any Assistant Treasurer of (i)
the Transferor and (ii) World Omni, each dated the Closing Date, in which such
officer shall state that (1) the representations and warranties of the
Transferor and World Omni, as the case may be, in each Basic Document to which
it is a party and in this Agreement are true and correct on the Closing Date,
(2) to the best knowledge of such officer after reasonable investigation, the
Transferor or World Omni, as the case may be, has complied with all agreements
and satisfied all conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date, no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceedings for that purpose
have been instituted or are contemplated by the Commission and (3) subsequent to
the date of this Agreement, there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Transferor or World Omni, as the case may be, except
as set forth in or contemplated by the Prospectus.
(d) The Underwriter shall have received:
(i) The favorable opinion of Kirkland & Ellis, special counsel
to the Transferor and World Omni, dated the Closing Date and satisfactory in
form and substance to the Underwriter and counsel for the Underwriter, and
substantially to the effect that:
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(1) Assuming the due authorization, execution and
delivery thereof by the other parties thereto, each Basic Document will
constitute a valid and binding agreement of the Issuer, the Transferor and World
Omni, as the case may be, enforceable against such entity in accordance with its
terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting
enforcement of creditors' rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).
(2) Assuming the Notes have been duly and validly
authorized, when executed, authenticated and delivered as specified in the
Indenture and the Series Supplement and when delivered to the Underwriter
against payment of the consideration specified herein, the Notes will constitute
a valid and binding obligation of the Issuer, enforceable in accordance with
their terms and the holder of the Notes will be entitled to the benefits
accorded by the Indenture and the Series Supplement.
(3) The statements in the Prospectus under the captions
"Summary", "Risk Factors", "The Notes", "The Trust", "The Transfer and Servicing
Agreements", insofar as such statements purport to summarize certain terms or
provisions of the Notes, the Transferor Certificate and the Basic Documents,
provide a fair summary of such provisions, and the statements in the Prospectus
under "Risk Factors", "Certain Legal Aspects of the Receivables--Certain Matters
Relating to Bankruptcy", "Certain Federal Income Tax Consequences", and "ERISA
Considerations", to the extent that they constitute matters of law, summaries of
legal matters, documents or proceedings or legal conclusions relating to U.S.
federal law have been prepared or reviewed by such counsel and are correct in
all material respects.
(4) Neither the Transferor nor the Issuer is an
"investment company" as defined in the Investment Company Act.
(5) The Issuer, the Transferor and World Omni are not
required to obtain any consent, approval, authorization or order of any federal
court or federal governmental agency in order to obtain the right to enter into
any of the Basic Documents or to take any of the actions taken by the Issuer,
the Transferor or World Omni on the Closing Date to consummate the closing under
the Basic Documents, except such as may be required under the Act, the Rules and
Regulations or state securities laws, and those authorizations, approvals,
consents and orders which have previously been obtained and are in full force
and effect as of the Closing Date; provided, that such counsel need express no
opinion as to state securities laws.
(6) The Commission's Division of Corporation Finance,
pursuant to authority delegated to it by the Commission, has entered an order
declaring the Registration Statement effective under the Act on March 9, 2000
and such counsel has no knowledge that any stop order suspending its
effectiveness has been issued or that
11
any proceedings for that purpose are pending before, or overtly threatened by,
the Commission. Section 309(a) of the Trust Indenture Act provides that the
Indenture shall be deemed to have been qualified under the Trust Indenture Act
when the Registration Statement became effective under the Act. Nothing has come
to such counsel's attention that has caused them to conclude (i) the
Registration Statement at its effective date 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 or (ii) the
Prospectus at the date it bears or on the Closing Date contained an untrue
statement of a material fact or omitted to state a material fact necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading or (iii) as of the effective date, either the
Registration Statement or the Prospectus appeared on its face not to be
responsive in all material respects to the requirements of Form S-3.
(ii) The favorable opinion of English, McCaughan & O'Bryan,
P.A., counsel to World Omni, dated the Closing Date and satisfactory in form and
substance to the Underwriter and counsel for the Underwriter, and substantially
to the effect that:
(1) World Omni has been duly incorporated under the
Florida Business Corporation Act, is current in the payment of fees due to the
Florida Department of State, and its status is active; World Omni has the
corporate power and authority to own its properties and conduct its business as
described in the Prospectus.
(2) World Omni has the corporate power and authority to
execute, deliver and perform its obligations under the Basic Documents; and had
at all relevant times, and on the Closing Date has, the corporate power and
authority to acquire, own and transfer the Receivables and the other property
transferred by it to the Transferor pursuant to the Receivables Purchase
Agreement.
(3) World Omni has obtained all licenses and approvals
required for the conduct of its business or the ownership or leasing of its
property, to the extent that failure to obtain such licenses and approvals would
render any Receivable or any other material part of the corpus of the Trust
unenforceable or would materially and adversely affect the ability of World Omni
to perform any of its obligations under, or the enforceability of, any Basic
Document or this Agreement.
(4) This Agreement and each Basic Document to which World
Omni is a party has been duly authorized, executed and delivered by World Omni.
(5) None of (1) the transfer of the Receivables and the
other property of the Issuer transferred by World Omni to the Transferor
pursuant to the Receivables Purchase Agreement, (2) the compliance by World Omni
with all of the provisions of the Basic Documents or (3) the consummation of the
transactions herein and therein contemplated, will conflict with, result in a
breach of, or constitute a default under, or with the giving of notice or the
passage of time or both, would constitute a default under or result in the
creation or imposition of any Lien upon any property or assets of World Omni
pursuant to the terms of (i) its articles of incorporation or bylaws,
12
(ii) to the best of its knowledge and information without independent
investigation and except as otherwise provided in the Basic Documents, any
contract, indenture mortgage, loan agreement, note, lease or other instrument
(other than any document relating to any other supplement for the Trust) to
which World Omni is a party or by which it may be bound, or to which any of the
property or assets of World Omni is subject, or (iii) any applicable Florida
law, statute or regulation or, to the best of their knowledge and information,
any judgment, order or decree applicable to World Omni of any court, regulatory
body or other governmental instrumentality having jurisdiction over World Omni
except, in the case of clause (ii) and the second part of clause (iii) above,
for defaults, breaches or violations that do not, in the aggregate, have a
material adverse effect on World Omni.
(6) To the best of its knowledge and information, (A)
there are no actions, proceedings or investigations pending or threatened, other
than those disclosed in the Registration Statement, (w) asserting the invalidity
of this Agreement, any Basic Document or the Notes, (x) seeking to prevent the
issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement or the Basic Documents, (y) that might materially
and adversely affect the performance by World Omni of its respective obligations
under, or the validity or enforceability of, this Agreement or any Basic
Document or (z) seeking adversely to affect the federal or state income tax
attributes of the Notes as described in the Prospectus under the heading
"Certain Tax Matters".
(iii) The favorable opinion of Richards, Layton & Finger, P.A.,
special Delaware counsel to the Transferor, the Issuer and World Omni, dated the
Closing Date and satisfactory in form and substance to the Underwriter and
counsel to the Underwriter, to the effect that:
(1) The Transferor has been duly formed and is validly
existing in good standing as a limited liability company under the Delaware
Limited Liability Company Act (6 Del. C, ss.18-101, et seq.) (the "LLC Act").
(2) Under the LLC Act and the Amended and Restated
Limited Liability Company Agreement of the Transferor, dated as of March __,
2000 (the "Company Agreement"), the Transferor has all requisite limited
liability company power and authority to execute and deliver, and to perform its
legal obligations under, this Agreement and each Basic Document to which it is a
party.
(3) The Issuer has been duly created and is validly
existing in good standing as a business trust under the Delaware Business Trust
Act (12 Del C.,ss.3801 et seq.) (the "Trust Act").
(4) Under the Trust Act and the Trust Agreement, the
Issuer has all requisite trust power and authority to execute and deliver, and
to perform its obligations under and each Basic Document to which it is a party.
13
(5) Under the LLC Act and the Company Agreement, the
execution and delivery by the Transferor of this Agreement and each Basic
Document to which it is a party, and the performance by the Transferor of its
obligations thereunder, have been duly authorized by all requisite limited
liability company action on the part of the Transferor.
(6) Under the Trust Act and the Trust Agreement, the
execution and delivery by the Issuer of each Basic Document to which it is a
party, and the performance by the Issuer of its obligations thereunder, have
been duly authorized by all requisite trust action on the part of the Issuer.
(7) The execution and delivery by the Transferor of each
Basic Document to which it is a party, and the performance by the Transferor of
its obligations thereunder, do not violate, conflict with, result in a breach of
or constitute a default under (i) the Certificate of Formation of the
Transferor, (ii) the Company Agreement, or (iii) any Delaware law, statute or
regulation, except that no opinion is expressed herein concerning any statute or
regulation relating to securities laws.
(8) The execution and delivery by the Issuer of each
Basic Document to which it is a party, and the performance by the Issuer of its
obligations thereunder, do not violate, conflict with, result in a breach of or
constitute a default under (i) the Certificate of Trust of the Issuer, (ii) the
Trust Agreement, or (iii) any Delaware law, statute or regulation, except that
no opinion is expressed herein concerning any statute or regulation relating to
securities laws.
(9) No consent, approval, authorization or order of, or
registration, filing or declaration with, any Delaware court or governmental
agency or body is required solely in connection with the Transferor's execution
and delivery of, and the performance of its obligations under, each Basic
Document to which it is a party.
(10) No consent, approval, authorization or order of, or
registration, filing or declaration with, any Delaware court or governmental
agency or body is required solely in connection with the Issuer's execution and
delivery of, and the performance of its obligations under, each Basic Document
to which it is a party.
(iv) (i) The favorable opinion of Kirkland & Ellis, special
counsel to the Transferor, dated the Closing Date and to the effect that (A) the
Notes will properly be characterized as indebtedness for Federal income tax
purposes and (B) the Trust will not be classified as an association (or a
publicly traded partnership) taxable as a corporation for federal income tax
purposes and (ii) The favorable opinion of English, McCaughan & O'Bryan, P.A.,
special Florida tax counsel to the Transferor, dated the Closing Date and
satisfactory in form and substance to the Underwriter and counsel to the
Underwriter, to the effect that (A) the Trust will not be classified as an
association taxable as a corporation for Florida income tax purposes but instead
will be characterized as it is characterized for federal income tax purposes,
and (B) the loan rule promulgated under the Florida Corporate Income Tax Code
and included in the Florida Administrative Code relating to interest on loans by
"financial organizations" (as such term is defined
14
therein), would not apply to an investment in the Notes by such a financial
organization and (iii) the statements in the Prospectus under "State and Local
Tax Consequences" and "Florida Income Taxation," to the extent that they
constitute matters of law, summaries of legal matters, documents or proceedings
or legal conclusions, have been reviewed by such counsel and are correct in all
material respects.
(v) Reliance letters relating to each legal opinion relating to
the transactions contemplated by this Agreement and the Basic Documents rendered
by counsel to the Transferor, the Issuer or World Omni to the Owner Trustee, the
Indenture Trustee or any Rating Agency, including a reliance letter with respect
to a legal opinion relating to (i) the transfer of the Receivables and related
property from World Omni to the Transferor, from the Transferor to the Issuer
and the pledge of such property by the Issuer to the Indenture Trustee and (ii)
the perfection of the Indenture Trustee's security interest in the Collateral.
(vi) The favorable opinion of special counsel to the Indenture
Trustee, dated the Closing Date and satisfactory in form and substance to the
Underwriter and counsel to the Underwriter, to the effect that:
(1) The Indenture Trustee has been duly incorporated and
is validly existing as a banking corporation, in good standing under the laws of
the State of Illinois with full power and authority (corporate and other) to
execute, deliver and perform its obligations as Indenture Trustee under each
Basic Document to which the Indenture Trustee is a party.
(2) Each Basic Document to which the Indenture Trustee is
a party has been duly authorized, executed and delivered by the Indenture
Trustee and, assuming the due authorization, execution and delivery thereof by
the other parties thereto, will constitute a legal, valid and binding obligation
of the Indenture Trustee enforceable in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
reorganization, liquidation or other similar laws affecting enforcement of
creditors' rights generally and by general principles of equity including,
without limitation, concepts of materiality, reasonableness, good faith and fair
dealing (regardless of whether such enforceability is considered in a proceeding
in equity or at law).
(3) The Notes have been duly authenticated and delivered
by the Indenture Trustee in accordance with the terms of the Indenture.
(4) Neither the execution nor delivery by the Indenture
Trustee of each Basic Document to which it is a party nor the consummation of
any of the transactions by the Indenture Trustee contemplated thereby require
the consent or approval of, the giving of notice to, the filing with or the
taking of any other action with respect to, any governmental authority or agency
of the United States or the State of Illinois under any existing federal or
state law governing the banking or trust powers of the Indenture Trustee.
15
(5) Neither the execution, delivery or performance by the
Indenture Trustee of the Basic Documents to which it is a party nor the
compliance with the terms and provisions thereof, nor the performance of its
obligations thereunder, conflicts or results in a breach of or constitutes a
default under any of the terms, conditions or provisions of any law, government
rule or regulation of the United States or the State of Illinois governing the
Indenture Trustee or to our knowledge, any order, writ, injunction or decree of
any court or governmental authority against the Indenture Trustee or by which it
or any of its properties is bound or, to our knowledge, any indenture, mortgage
or contract or other agreement or interest to which the Indenture Trustee is a
party or by which it or any of its properties is bound, or results in the
creation or imposition of any lien, charge or encumbrance upon any of its
properties pursuant to any agreement or instrument, except encumbrances and
security interests contemplated by the Basic Documents.
(vii) The favorable opinion of special counsel to the Owner
Trustee, dated the Closing Date and satisfactory in form and substance to the
Underwriter and counsel to the Underwriter, to the effect that:
(1) the Owner Trustee has been incorporated and is
validly existing as a Delaware banking corporation, in good standing under the
laws of the State of Delaware and is authorized thereunder and pursuant thereto
to transact the business of banking, to exercise fiduciary power and to enter
into and perform its obligations as Owner Trustee under each Basic Document to
which the Owner Trustee is a party.
(2) Each Basic Document to which the Owner Trustee is a
party has been duly authorized, executed and delivered by the Owner Trustee and,
assuming the due authorization, execution and delivery thereof by the other
parties thereto, will constitute a legal, valid and binding obligation of the
Owner Trustee enforceable in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting enforcement of creditors' rights
generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
(3) Each Note has been duly executed and delivered by the
Owner Trustee.
(4) Neither the execution nor delivery by the Owner
Trustee of each Basic Document to which it is a party nor the consummation of
any of the transactions by the Owner Trustee contemplated thereby require the
consent or approval of, the giving of notice to, the registration with or the
taking of any other action with respect to, any Person or entity, including any
governmental authority or agency under any existing federal or state law.
(5) The execution and delivery of each Basic Document to
which the Owner Trustee is a party and the performance by the Owner Trustee of
its terms do not conflict with or result in a violation of (A) any federal or
state law or
16
regulation governing the banking or trust powers of the Owner Trustee, (B) the
Articles of Association or By-Laws of the Owner Trustee or (C) to the best
knowledge of such counsel, any indenture, lease or material agreement to which
the Owner Trustee is a party or to which its assets are subject.
(viii) The favorable opinion of Orrick, Herrington & Sutcliffe
LLP, counsel for the Underwriter, dated the Closing Date, with respect to the
validity of the Notes and such other related matters as the Underwriter shall
request, which opinions shall be satisfactory in form and substance to the
Underwriter and counsel for the Underwriter.
(e) The Notes shall be rated in the highest rating category for
long-term debt obligations by each of Moody's and Fitch.
(f) On or prior to the Closing Date, counsel for the Underwriter shall
have been furnished with such documents and opinions as they may reasonably
require for the purpose of enabling them to pass upon the issuance of the Notes
and the Transferor Certificate and sale of the Notes as herein contemplated and
related proceedings, or in order to evidence the accuracy of any of the
representations or warranties, or the fulfillment of any of the conditions,
herein contained; and all proceedings taken by the parties to the Basic
Documents in connection with the issuance of the Notes and the Transferor
Certificate and sale of the Notes as herein contemplated shall be satisfactory
in form and substance to the Underwriter and counsel for the Underwriter.
If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement may be terminated
by the Underwriter by notice to the Transferor and World Omni at any time at or
prior to the Closing Date, and such termination shall be without liability of
any party to any other party except as provided in Section 5(h) hereof.
7. Indemnification and Contribution.
(a) Each of World Omni and the Transferor agrees, jointly and
severally, to indemnify and hold harmless the Underwriter and each person, if
any, who controls the Underwriter within the meaning of Section 15 of the Act as
follows:
(i) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, arising out of any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement (or
any amendment thereto), including the information deemed to be part of the
Registration Statement pursuant to Rule 430A(b) of the Rules and Regulations, if
applicable, or the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein not
misleading or arising out of any untrue statement or alleged untrue statement of
a material fact contained in any preliminary prospectus or the Prospectus (or
any amendment or supplement thereto) or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
17
(ii) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim whatsoever
based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, if such settlement is effected with the written consent
of the Transferor and World Omni; and
(iii) against any and all expense whatsoever, as incurred
(including, subject to Section 7(c) hereof, the fees and disbursements of
counsel chosen by the Underwriter), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, to the extent that any such expense is not
paid under clause (i) or (ii) above;
provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Transferor by
the Underwriter expressly for use in the Registration Statement (or any
amendment thereto) or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto).
(b) The Underwriter severally agrees to indemnify and hold harmless
the Transferor and World Omni, each of their respective directors, each of their
respective officers who signed the Registration Statement and each person, if
any, who controls each of the Transferor and World Omni, respectively, within
the meaning of Section 15 of the Act, against any and all loss, liability,
claim, damage and expense described in the indemnity contained in subsection (a)
of this Section, as incurred, but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in the Registration
Statement (or any amendment thereto) or any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto), in reliance upon and in
conformity with written information furnished to the Transferor the Underwriter
expressly for use in the Registration Statement (or any amendment thereto) or
such preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).
(c) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it in
respect of which indemnity may be sought hereunder, but failure to so notify an
indemnifying party shall not relieve such indemnifying party from any liability
hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. In the case of parties indemnified
pursuant to Section 7(a) above, counsel to the indemnified parties shall be
selected by the Underwriter, and, in the case of parties indemnified pursuant to
Section 7(b) above, counsel to the indemnified parties shall be selected by
World Omni. An indemnifying party may participate at its own expense in the
defense of any such action; provided, however, that counsel to the indemnifying
party shall not (except with the consent of the indemnified party) also be
counsel to the indemnified
18
party. In no event shall the indemnifying parties be liable for fees and
expenses of more than one counsel (in addition to any local counsel) separate
from their own counsel for all indemnified parties in connection with any one
action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances. No indemnifying
party shall, without the prior written consent of the indemnified parties,
settle or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 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
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 unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) thereof, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the loss,
liability, claim, damage or expense referred to in subsection (a) or (b) of
Section 7 (i) in such proportion as is appropriate to reflect the relative
benefits received by the Transferor and World Omni on the one hand and the
Underwriter on the other from the offering of the Notes or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Transferor
and World Omni on the one hand and the Underwriter on the other in connection
with the statements or omissions which resulted in such loss, liability, claim,
damage or expense as well as any other relevant equitable considerations. The
relative benefits received by the Transferor and World Omni on the one hand and
the Underwriter on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the
Transferor bear to the total underwriting discounts and commissions received by
the Underwriter. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to
information supplied by the Transferor, World Omni or the Underwriter and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission. The amount paid by an
indemnified party as a result of the loss, liability, claim, damage or expense
referred to in the first sentence of this Section shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any action or claim which is the
subject of this Section. Notwithstanding the provisions of this Section, the
Underwriter shall not be required to contribute any amount in excess of the
amount by which the total price at which the Notes underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages which the Underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.
19
Notwithstanding the other provisions of this Section, each person, if any, who
controls the Underwriter within the meaning of Section 15 of the Act shall have
the same rights to contribution as the Underwriter and each director of the
Transferor and World Omni, each officer of the Transferor who signed the
Registration Statement and each person, if any, who controls either the
Transferor or World Omni within the meaning of Section 15 of the Act shall have
the same rights to contribution as the Transferor or World Omni, as the case may
be.
9. Survival of Certain Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of the
Transferor and World Omni or their respective officers and of the Underwriter
set forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation, or statement as to the results thereof,
made by or on behalf of the Underwriter, the Transferor, World Omni or any of
their respective representatives, officers or directors or any controlling
Person, and will survive delivery of and payment for the Notes. If for any
reason the purchase of the Notes by the Underwriter is not consummated, the
Transferor and World Omni shall remain responsible for the expenses to be paid
or reimbursed by them pursuant to Section 5(h) hereof and the respective
obligations of the Transferor, World Omni and the Underwriter pursuant to
Section 7 and 8 hereof shall remain in effect. If the purchase of the Notes by
the Underwriter is not consummated for any reason other than solely because of
the occurrence of any event specified in clause (iii), (iv) or (v) of Section 10
hereof, the Transferor and World Omni will reimburse the Underwriter for all
out-of-pocket expenses (including the reasonable fees and disbursements of
counsel) reasonably incurred by them in connection with the offering of the
Notes.
10. Termination of Agreement. The Underwriter may terminate this Agreement,
by notice to the Transferor and World Omni, at any time prior to or at the
Closing Date (i) if there has been, since the date of this Agreement or since
the respective dates as of which information is given in the Registration
Statement, any material adverse change in the condition, financial or otherwise,
or in the earnings, business affairs or business prospects of the Transferor or
World Omni, whether or not arising in the ordinary course of business; (ii) if
there has occurred any downgrading in the rating of the debt securities of the
Transferor or World Omni by any "nationally recognized statistical rating
organization" (as such term is defined for purposes of Rule 436(g) under the
Act), or any public announcement that any such organization has under
surveillance or review its rating of any debt securities of the Transferor or
World Omni (other than an announcement with positive implications of a possible
upgrading, and no implication of a possible downgrading, of such rating); (iii)
if there has occurred any material adverse change in the financial markets in
the United States or any outbreak of hostilities or other calamity or crisis,
the effect of which is such as to make it, in the judgment of the Underwriter,
impracticable to market any Class of Notes or to enforce contracts for the sale
of any Class of Notes; (iv) if trading generally on either the American Stock
Exchange or the New York Stock Exchange has been suspended, or minimum or
maximum prices for trading have been fixed or maximum ranges for prices for
securities have been required, by either of said Exchanges or by order of the
Commission or any other governmental authority; or (v) if a banking moratorium
has been declared by either federal, New York, Delaware, Florida or Illinois
authorities.
20
11. Default By the Underwriter. If the Underwriter shall fail at the
Closing Date to purchase the Notes which it is obligated to purchase under this
Agreement (the "Defaulted Securities"), the Underwriter shall have the right,
but not the obligation, within 24 hours thereafter, to make arrangements for any
other underwriters to purchase all, but not less than all, of the Defaulted
Securities in such amounts as may be agreed upon and upon the terms herein set
forth; if, however, the Underwriter shall not have completed such arrangements
within such 24-hour period, then this Agreement shall terminate without
liability on the part of any non-defaulting Underwriter.
In the event of any such default which does not result in a termination
of this Agreement, either the Underwriter or World Omni and the Transferor shall
have the right to postpone the Closing Time for a period not exceeding seven
days in order to effect any required changes in the Registration Statement or
Prospectus or in any other documents or arrangement.
12. Notices. All communications hereunder will be in writing and, if sent
to (i) the Underwriter, shall be mailed, delivered or sent by facsimile and
confirmed to it at Merrill Lynch & Co., North Tower, World Financial Center, New
York, New York 10281-1201, Attention: Geoffrey R. Witt, Managing Director
(facsimile number (212) 449-9015); (ii) the Transferor, will be mailed,
delivered or sent by facsimile and confirmed to it at WODFI LLC, 120 N.W. 12th
Avenue, Deerfield Beach, Florida 33442, Attention: A. Tucker Allen, Vice
President and Corporate Treasurer (facsimile number (954) 429-2685); (iii) the
Issuer, will be mailed, delivered or sent by facsimile and confirmed to it at
c/o WODFI LLC, 120 N.W. 12th Avenue, Deerfield Beach, Florida 33442, Attention:
A. Tucker Allen, Vice President and Corporate Treasurer (facsimile number (954)
429-2685); or (iv) World Omni, will be mailed, delivered or sent by facsimile
and confirmed to it at World Omni Financial Corp., 120 N.W. 12th Avenue,
Deerfield Beach, Florida 33442, Attention: A. Tucker Allen, Vice President and
Corporate Treasurer (facsimile number (954) 429-2685).
13. Successors. This Agreement will inure to the benefit of and be binding
upon the parties hereto and their respective successors and the officers and
directors and controlling Persons referred to in Sections 7 and 8 hereof, and no
other Person will have any right or obligation hereunder.
14. Severability of Provisions. Any covenant, provision, agreement or term
of this Agreement that is prohibited or is held to be void or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof.
15. Miscellaneous. This Agreement constitutes the entire agreement and
understanding of the parties hereto with respect to the matters and transactions
contemplated hereby and supersedes all prior agreements and understandings
whatsoever relating to such matters and transactions. Neither this Agreement nor
any term hereof
21
may be changed, waived, discharged or terminated orally, but only by an
instrument in writing signed by the party against whom enforcement of the
change, waiver, discharge or termination is sought. The headings in this
Agreement are for the purposes of reference only and shall not limit or
otherwise affect the meaning hereof.
16. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.
17. Applicable Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without regard to any
otherwise applicable principles of conflicts of laws.
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If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us one of the counterparts duplicate
hereof, whereupon it will become a binding agreement between the Transferor and
World Omni and the Underwriter in accordance with its terms.
Very truly yours,
WODFI LLC
By:
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Patrick C. Ossenbeck
Assistant Treasurer
WORLD OMNI FINANCIAL CORP.
By:
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Patrick C. Ossenbeck
Assistant Treasurer
CONFIRMED AND ACCEPTED,
as of the date first above written.
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By:
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Name:
Title:
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