UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 13, 2014 (November 11, 2014)
COMPASS DIVERSIFIED HOLDINGS
(Exact name of registrant as specified in its charter)
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Delaware |
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0-51937 |
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57-6218917 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
COMPASS GROUP DIVERSIFIED HOLDINGS LLC
(Exact name of registrant as specified in its charter)
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Delaware |
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0-51938 |
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20-3812051 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
Sixty One Wilton Road
Second Floor
Westport,
CT 06880
(Address of principal executive offices and zip code)
Registrants telephone number, including area code: (203) 221-1703
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 |
Entry Into a Definite Material Agreement |
On November 11, 2014, Compass Diversified Holdings (the
Trust) and Compass Group Diversified Holdings LLC (the Company and together with the Trust, CODI) announced that the Trust priced an underwritten public offering of 6,000,000 trust shares (the Trust
Shares) at a price of $17.50 per share (the Offering). In connection with the Offering, the Trust, the Company and Compass Group Management LLC entered into an Underwriting Agreement with Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Morgan Stanley and Co. LLC and Jefferies LLC, as managers of the several underwriters listed therein (collectively, the Underwriters), pursuant to which CODI agreed to sell and the Underwriters agreed severally to purchase,
subject to and upon terms and conditions set forth therein, the Trust Shares. The Offering is expected to close on November 14, 2014. As part of the Offering, CODI granted the Underwriters a 30-day option to purchase up to an additional 900,000
shares of the Trust.
Pursuant to the Underwriting Agreement, the executive officers and directors of the Company entered into agreements in substantially
the form included in the Underwriting Agreement providing for a 45-day lock-up period with respect to sales of specified securities, subject to certain exceptions.
The Trust Shares were registered under the Securities Act of 1933, as amended, pursuant to a Registration Statement on Form S-3 (Registration No.
333-178071), as thereby amended from time to time (as amended, the Registration Statement). The offer and sale of the Trust Shares are described in CODIs prospectus dated December 14, 2011, constituting a part of the
Registration Statement, as supplemented by a prospectus supplement dated November 11, 2014.
The foregoing description of the Underwriting Agreement
does not purport to be complete and is qualified in its entirety by reference to the Underwriting Agreement, which is filed as Exhibit 1.1 to this Current Report on Form 8-K, and is incorporated into this report by reference.
Item 9.01 |
Financial Statements and Exhibits |
(d) Exhibits.
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1.1 |
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Underwriting Agreement, dated November 11, 2014, between the Company, the Trust and Compass Group Management LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley and Co. LLC and Jefferies LLC, as
managers of the several underwriters listed therein. |
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5.1 |
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Legality Opinion of Richards, Layton & Finger, P.A. as to the Trust. |
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5.2 |
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Legality Opinion of Richards, Layton & Finger P.A. as to the Company. |
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8.1 |
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Opinion of Squire Patton Boggs (US) LLP regarding certain tax matters. |
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23.1 |
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Consent of Richards, Layton & Finger, P.A (contained in Exhibits 5.1 and 5.2 hereto). |
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23.2 |
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Consent of Squire Patton Boggs (US) LLP (contained in Exhibit 8.1 hereto). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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Date: November 13, 2014 |
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COMPASS DIVERSIFIED HOLDINGS |
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By: |
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/s/ Ryan J. Faulkingham |
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Ryan J. Faulkingham |
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Regular Trustee |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
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Date: November 13, 2014 |
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COMPASS GROUP DIVERSIFIED HOLDINGS LLC |
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By: |
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/s/ Ryan J. Faulkingham |
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Ryan J. Faulkingham |
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Chief Financial Officer |
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Exhibit 1.1
EXECUTION VERSION
COMPASS
DIVERSIFIED HOLDINGS
COMPASS GROUP DIVERSIFIED HOLDINGS LLC
6,000,000 Trust Shares
UNDERWRITING AGREEMENT
November 11,
2014
November 11, 2014
To the Managers named in Schedule I hereto
for the Underwriters named in Schedule II hereto
Ladies and Gentlemen:
Compass Group
Diversified Holdings LLC, a Delaware limited liability company (the Company), for itself and as sponsor of Compass Diversified Holdings, a statutory trust formed under the laws of the State of Delaware (the
Trust), the Trust and Compass Group Management LLC, a Delaware limited liability company (the CODI Manager), propose to issue and sell to the several underwriters named in Schedule II hereto (the
Underwriters), for whom you are acting as managers (the Managers), the number of shares of the Trust set forth in Schedule I hereto (the Firm Shares).
The Company, for itself and as sponsor of the Trust, the Trust and the CODI Manager also propose to issue and sell to the several Underwriters
not more than the number of additional shares of the Trust set forth in Schedule I hereto (the Additional Shares) if and to the extent that you, as Managers of the offering, shall have determined to exercise, on behalf of the
Underwriters, the right to purchase such shares of the Trust granted to the Underwriters in Section 3 hereof. The Firm Shares and the Additional Shares are hereinafter collectively referred to as the Shares. The shares of the
Trust to be outstanding after giving effect to the sales contemplated hereby are hereinafter referred to as the Trust Stock.
Immediately prior to the delivery of the Firm Shares and the Additional Shares, if any, to the Underwriters, the Trust will issue the Firm
Shares and the Additional Shares, if any, in exchange for, and as consideration for, an equal number of limited liability company interests (the New Trust Interests) of the Company that were designated as Trust
Interests under the Companys Fourth Amended and Restated Operating Agreement, dated as of January 1, 2012, governing the Company (the Operating Agreement). The limited liability company interests of the Company
outstanding as of the date hereof and to be outstanding after giving effect to the issuance of the New Trust Interests are hereinafter referred to as the Trust Interests.
The Company has filed with the Securities and Exchange Commission (the Commission) a registration statement, including a
prospectus, (the file number of which is set forth in Schedule I hereto) on Form S-3, relating to the securities (the Shelf Securities), including the Shares, to be issued from time to time by the Company. The registration
statement as amended to the date of this Agreement, including the information (if any) deemed to be part of the registration statement at the time of effectiveness pursuant to Rule 430A or Rule 430B under the Securities Act of 1933, as
amended (the Securities Act), is hereinafter referred to as the Registration Statement, and the related base prospectus covering the Shelf Securities filed as part of such registration statement, in the form in
which it has most recently been filed with the Commission on or prior to the date of this Agreement is hereinafter referred to as the Basic Prospectus. The Basic Prospectus, as supplemented by the prospectus supplement
specifically relating to the Shares in the form first used to confirm sales of the Shares (or in the form first
made available to the Underwriters by the Company to meet requests of purchasers pursuant to Rule 173 under the Securities Act) is hereinafter referred to as the Prospectus,
and the term preliminary prospectus means any preliminary form of the Prospectus. For purposes of this Agreement, free writing prospectus has the meaning set forth in Rule 405 under the Securities Act,
Time of Sale Prospectus means the Basic Prospectus and any preliminary prospectus together with the free writing prospectuses, if any, each identified in Schedule I hereto, and the information included on Schedule V hereto, and
broadly available road show means a bona fide electronic road show as defined in Rule 433(h)(5) under the Securities Act that has been made available without restriction to any person. As used herein, the terms
Registration Statement, Basic Prospectus, preliminary prospectus, Time of Sale Prospectus and Prospectus shall include the documents, if any, incorporated by reference therein. The terms
supplement, amendment, and amend as used herein with respect to the Registration Statement, the Basic Prospectus, the Time of Sale Prospectus, any preliminary prospectus or free writing
prospectus shall include all documents subsequently filed by the Company with the Commission pursuant to the Securities Exchange Act of 1934, as amended (the Exchange Act), that are deemed to be incorporated by reference therein.
1. Representations and Warranties. The Company, for itself and as sponsor of the Trust, represents and warrants to and agrees with
the Underwriters that:
(a) The Registration Statement has become effective; no stop order suspending the effectiveness of
the Registration Statement is in effect and no proceedings for such purpose are pending before or threatened by the Commission.
(b) Each document, if any, filed or to be filed pursuant to the Exchange Act and incorporated by reference in the Time of Sale
Prospectus or the Prospectus complied or will comply when so filed in all material respects with the Exchange Act and the applicable rules and regulations of the Commission thereunder, (ii) each part of the Registration Statement, when such
part became effective, did not contain, and each such part, as amended or supplemented, if applicable, will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, (iii) the Registration Statement as of the date hereof does not contain any 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, (iv) the Registration Statement and the Prospectus comply, and as amended or supplemented, if applicable, will comply in all material respects with the Securities Act and the applicable rules and regulations
of the Commission thereunder, (v) the Time of Sale Prospectus does not, and at the time of each sale of the Shares in connection with the offering when the Prospectus is not yet available to prospective purchasers and at the Closing Date (as
defined in Section 5), the Time of Sale Prospectus, as then amended or supplemented by the Company, if applicable, 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, (vi) each broadly available road show, if any, when considered together with the Time of Sale Prospectus, does 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 and (vii) the Prospectus does not contain
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and, as amended or supplemented, if applicable, 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, except that the representations and warranties set forth in this paragraph do not apply to statements or omissions in the Registration Statement, the Time of Sale Prospectus or the
Prospectus based upon information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Managers expressly for use therein. For purposes of this Agreement, the only information so furnished shall be the
information in the second and third sentences of the fourth paragraph, the eleventh paragraph, the twelfth paragraph and the seventeenth paragraph under the heading Underwriting (Conflicts of Interest), in each case contained in the
Prospectus (collectively, the Underwriter Information).
(c) The Company is not an ineligible
issuer in connection with the offering pursuant to Rules 164, 405 and 433 under the Securities Act. Any free writing prospectus that the Company is required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed
with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each free writing prospectus that the Company has filed, or is required to file, pursuant to Rule
433(d) under the Securities Act or that was prepared by or behalf of or used or referred to by the Company complies or will comply in all material respects with the requirements of the Securities Act and the applicable rules and regulations of the
Commission thereunder. Except for the free writing prospectuses, if any, identified in Schedule I hereto forming part of the Time of Sale Prospectus, and electronic road shows, if any, each furnished to you before first use, the Company has not
prepared, used or referred to, and will not, without your prior consent, prepare, use or refer to, any free writing prospectus.
(d) The Company has been duly formed, is validly existing as a limited liability company under the laws of the State of
Delaware, is in good standing under the laws of the State of Delaware and has the limited liability company power and authority to own its properties and conduct its business as described in the Time of Sale Prospectus and the Prospectus. The
Company and each of the Businesses (as defined below) is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification,
except where the failure to be so qualified or be in good standing would not, individually or in the aggregate, have a material adverse effect on the condition (financial or otherwise), prospects, net worth, management, earnings, cash flows,
business, operations or properties of the Company and the Businesses, taken as a whole, whether or not arising from transactions in the ordinary course of business (a Material Adverse Effect).
(e) The Company directly owns the outstanding voting securities of the entities enumerated on Schedule III hereto (such
entities being referred to herein as the Businesses) in the percentages shown in the Time of Sale Prospectus and the Prospectus. The Businesses are the only significant subsidiaries of the Company as defined by Rule 1-02 of
Regulation S-X. Each of the Businesses has been duly organized, is validly existing as a corporation or limited liability company, as applicable, in good standing under the laws of the jurisdiction of its organization, has the requisite power and
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authority and possesses all certificates, authorizations, licenses, permits and consents (Permits), including but not limited to, all Permits relating to Environmental
Laws (as defined below) that are material and necessary to own its property and to conduct its business, in each case, as described in the Time of Sale Prospectus and the Prospectus, and is duly qualified to transact business and is in good standing
in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except where the failure to be so qualified, in good standing or to have such Permits would not have a Material Adverse
Effect. All the outstanding shares of capital stock of each of the Businesses have been duly and validly authorized and issued and are fully paid and nonassessable, and, except as otherwise set forth in the Time of Sale Prospectus and the
Prospectus, all outstanding shares of capital stock of each of the Businesses owned by the Company are owned free and clear of any perfected security interest or any other security interests, claims, liens or encumbrances.
(f) As of the date of this Agreement, Sostratus LLC owned all of the issued and outstanding Allocation Interests (as defined in
the Operating Agreement) of the Company, the Trust owned all of the issued and outstanding Trust Interests (as defined in the Operating Agreement) of the Company, and there were no other securities of the Company outstanding, without giving effect
to any issuances of securities contemplated herein. All of the Trust Interests and all of the Allocation Interests currently outstanding are, and upon delivery of a number of New Trust Interests to the Trust in exchange for the Shares to be issued
by the Trust under this Agreement, the Trust Interests will be, validly issued, fully paid and nonassessable and free of statutory and contractual preemptive rights or rights of first refusal, and holders of the Shares shall not be obligated
personally for any of the debts, obligations or liabilities of the Company, whether arising in contract, tort or otherwise. Except as described in the Time of Sale Prospectus and the Prospectus, no person has the right, contractual or otherwise, to
cause the Company or the Trust to issue or sell to it any Trust Interests or other securities of the Company. No person has the right, contractual or otherwise, to cause the Company or the Trust to issue or sell to it any Allocation Interests.
(g) The Operating Agreement has been duly authorized, executed and delivered by the members of the Company and is the valid and
binding obligation of the Company and the members of the Company. The Trust Interests and the Operating Agreement conform in all material respects to the descriptions thereof set forth in the Time of Sale Prospectus and the Prospectus, and such
descriptions conform to the rights set forth in the instruments defining the same.
(h) The Company, as sponsor of the
Trust, is authorized by the Amended and Restated Trust Agreement of the Trust, dated as of November 1, 2010 (the Trust Agreement) among the Company, as sponsor, The Bank of New York (Delaware), a Delaware banking corporation,
as Delaware trustee, and the Regular Trustees, as defined therein, to act in such capacity to execute and deliver this Agreement on behalf of the Trust, to cause the Trust to issue the Shares to be sold under this Agreement, to sell and accept
payment therefor, and otherwise to consummate the transactions contemplated herein. This Agreement has been duly authorized, executed and delivered by the Company, for itself and as sponsor of the Trust.
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(i) Except as set forth in the Time of Sale Prospectus and the Prospectus, the
Company, the Trust and the Businesses are not and will not, as of the Closing Date and any Option Closing Date, be restricted by their respective organizational documents or any indenture, mortgage, deed of trust, loan or credit agreement,
promissory note, lease, statutory trust, servicing agreement, contract, arrangement, understanding, document or any other instrument (Contract) or any Permit from declaring and paying any dividends or distribution on the
Trust Interests, in the case of the Company, on the Shares, in the case of the Trust, and to the Company, in the case of the Businesses, in each case, in accordance with their respective organizational documents as set forth in the Time of Sale
Prospectus and the Prospectus, or that would restrict the payment of interest on, or the repayment of principal of, any loans or advances by the Businesses to the Company.
(j) There are no Contracts between the Company and any person that would give rise to a claim against the Company or any
Underwriter for a brokerage commission, finders fee or similar payment with respect to the offer and sale of the Shares.
(k) Each preliminary prospectus filed as part of the registration statement as originally filed or as part of any amendment
thereto, or filed pursuant to Rule 424 under the Securities Act, complied when so filed in all material respects with the Securities Act and the applicable rules and regulations of the Commission thereunder.
(l) Except as disclosed in the Time of Sale Prospectus and the Prospectus, there are no Contracts between the Company and any
person granting such person the right to require the Company to file a registration statement under the Securities Act with respect to any securities of the Company owned or to be owned by such person or to require the Company to include such
securities in the Shares registered pursuant to the Registration Statement.
(m) Subsequent to the respective dates as of
which information is given in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus, (i) the Trust, the Company and each of the Businesses have not incurred any material liability or obligation, direct or
contingent, nor entered into any material transaction; (ii) each of the Trust, the Company and the Businesses has not purchased any of its outstanding capital stock, nor declared, paid or otherwise made any dividend or distribution of any kind
on its capital stock other than ordinary and customary dividends; and (iii) there has not been any material change in the capital stock, short-term debt or long-term debt of the Trust, the Company and each of the Businesses, except in each case
as described in each of the Registration Statement, the Time of Sale Prospectus and the Prospectus, respectively.
(n) No
consent, approval, authorization, or order of, or filing with, any domestic or foreign regulatory, administrative or governmental agency, body or authority, any domestic or foreign self-regulatory authority, or any similar agency, or any court, or
arbitration body or agency (domestic or foreign) (each, a Governmental Authority), is required in connection with the issue and sale of the Shares by the Company and the Trust hereunder, except such as have been obtained and made
under the Securities Act, such as may be required under state securities laws or such as may be required under the bylaws or rules and regulations of the Financial Industry Regulatory Authority (FINRA).
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(o) There are no statutes, regulations or Contracts which are required to be
described in or filed as exhibits to the Registration Statement which have not been so described or filed as required. The statements in the Time of Sale Prospectus and the Prospectus under the headings Risk Factors, Description of
Shares and Material U.S. Federal Income Tax Considerations, insofar as such statements summarize legal matters, agreements, documents or proceeding discussed therein, are accurate and fair summaries of such legal matters,
agreements, documents or proceedings.
(p) No labor problem or dispute with the employees of the Company or any of the
Businesses exists or, to the Companys knowledge, is threatened or imminent, that would reasonably be expected to have a Material Adverse Effect, except as set forth in or contemplated in the Time of Sale Prospectus and the Prospectus
(exclusive of any supplement thereto).
(q) Neither the Company nor any of the Businesses is in violation of or default
under, and neither the issue and sale of the Trust Stock or the Trust Interests hereunder nor the consummation of any other of the transactions herein contemplated (including the issuance and sale of the Shares and the use of the proceeds from the
sale of the Shares as described in the Time of Sale Prospectus and the Prospectus under the heading Use of Proceeds), nor the fulfillment of the terms hereof has or will conflict with or result in a breach or violation of, constitute a
default under, or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of the Businesses pursuant to, (i) the Certificate of Formation or Operating Agreement of the Company or the charter or bylaws, or
similar organizational documents, of any of the Businesses, (ii) any federal, state, local and foreign law, statute, rule, regulation and ordinance, or any decision, directive or order of any Governmental Authority
(Laws), including but not limited to Environmental Laws (as defined below), applicable to the Company and the Businesses or (iii) the terms of any Contract to which the Company or any of the Businesses is a party or by
which the Company or any of the Businesses is bound or pursuant to which any of the properties of the Company or any of the Businesses are subject, except in the case of (ii) and (iii), where any such violations or defaults would not,
individually or in the aggregate, have a Material Adverse Effect.
(r) Except as described in the Registration Statement,
the Time of Sale Prospectus and the Prospectus or would not, singly or in the aggregate, result in a Material Adverse Effect, (A) neither the Company nor any of the Businesses 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, asbestos-containing materials or mold (collectively,
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Hazardous Materials) or to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials (collectively,
Environmental Laws), (B) the Company and the Businesses 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 knowledge of the Company, threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigations or proceedings relating to any Environmental
Law against the Company or any of its Businesses 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 Authority, against or affecting the Company or any of the Businesses relating to Hazardous Materials or any Environmental Laws.
(s) Except as disclosed in the Time of Sale Prospectus and the Prospectus, (i) each of the Company and the Businesses has
good and valid title to all property and assets owned by it that are necessary to conduct its respective business as described in the Time of Sale Prospectus and the Prospectus and (ii) each of the Company and the Businesses holds any leased
real or personal property under valid and enforceable leases that are necessary to conduct its respective business as described in the Time of Sale Prospectus and the Prospectus, except to the extent that the failure to have such good and valid
title or hold such valid and enforceable leases would not have a Material Adverse Effect. Immediately prior to the consummation of the transactions contemplated herein, the Company will own and will have good and valid title to the Shares to be sold
hereunder, free and clear of any lien, charge or encumbrance; and upon delivery of such Shares to the Underwriters and payment of the Purchase Price therefor as herein contemplated, the Underwriters will receive good and valid title to the Shares
purchased by them from the Company, free and clear of any lien, charge or encumbrance.
(t) Each of the Company and the
Businesses owns or possesses adequate trademarks, trade names and other rights to inventions, know-how, patents, copyrights, trade secrets and other intellectual property (collectively, Intellectual Property Rights) that it
purports to own and that are necessary to conduct its respective business as described in the Time of Sale Prospectus and the Prospectus and none of the Company or the Businesses have received any notice of any claim of infringement of or conflict
with asserted rights of others with respect to any Intellectual Property Rights, except to the extent that the failure to own or possess such Intellectual Property Rights or where such claim of infringement of such conflict with asserted rights of
others would not have a Material Adverse Effect.
(u) The Company is not, and will not, after giving effect to the offering
and sale of the Shares to be issued by the Trust and sold by the Company and the application of the proceeds as described in the Time of Sale Prospectus and the Prospectus, be an investment company within the meaning of the Investment
Company Act of 1940, as amended, and the Commissions rules and regulations thereunder.
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(v) There are no legal or governmental proceedings pending or, to the knowledge
of the Company, threatened to which the Company, the Trust or any of the Businesses is a party or to which any of the properties of the Company, the Trust or any of the Businesses is subject (i) other than proceedings accurately described in
all material respects in the Time of Sale Prospectus and proceedings that would not have a Material Adverse Effect, or that would not have a material adverse effect on the power or ability of the Company or the Trust to perform their obligations
under this Agreement or to consummate the transactions contemplated by the Time of Sale Prospectus or (ii) that are required to be described in the Registration Statement or the Prospectus and are not so described.
(w) The Company, the Trust and each of the Businesses has filed all tax returns that are required to be filed or has requested
extensions thereof (except in any case in which the failure to so file would not have a Material Adverse Effect) and has paid all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of
the foregoing is due and payable, except for any such assessment, fine or penalty that is currently being contested in good faith or as would not have a Material Adverse Effect.
(x) The consolidated financial statements, together with related schedules, exhibits and notes, included or incorporated by
reference in the Time of Sale Prospectus, the Prospectus and the Registration Statement present fairly the financial condition, results of operations, cash flows and changes in financial position of the Trust, the Company and the Businesses on the
basis stated therein at the respective dates or for the respective periods to which they apply; such statements and related schedules, exhibits and notes have been prepared in accordance with United States generally accepted accounting principles
consistently applied throughout the periods involved, except as may be expressly disclosed therein. The summary financial data set forth under the caption Summary Financial Data in the Time of Sale Prospectus, the Prospectus and the
Registration Statement presents fairly the information shown therein, and has been compiled on a basis consistent with that of the related financial statements included in the Time of Sale Prospectus, the Prospectus and the Registration Statement.
The pro forma financial information included or incorporated by reference in the Time of Sale Prospectus, the Prospectus and the Registration Statement include assumptions that provide a reasonable basis for presenting the significant effects
directly attributable to the transactions and events described therein, the related pro forma adjustments give appropriate effect to those assumptions, the pro forma adjustments reflect the proper application of those adjustments to the historical
financial statement amounts in the pro forma financial statements included or incorporated by reference in the Time of Sale Prospectus, the Prospectus and the Registration Statement. The pro forma financial information included or incorporated by
reference in the Time of Sale Prospectus, the Prospectus and the Registration Statement complies in all material respects with the applicable accounting requirements of Regulation S-X under the Securities Act. The interactive data in eXtensible
Business Reporting Language incorporated by reference in the Registration Statement, the Time of Sale Prospectus and the Prospectus fairly presents the information called for in all material respects and has been prepared in accordance with the
Commissions rules and guidelines applicable thereto in all material respects.
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(y) The Company and each of the Businesses maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with managements general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with managements general or specific authorization;
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (v) the interactive data in eXtensible Business Reporting
Language incorporated by reference in the Registration Statement, the Time of Sale Prospectus and the Prospectus fairly presents the information called for in all material respects and is prepared in accordance with the Commissions rules and
guidelines applicable thereto. The Company and the Businesses have not become aware of any material weakness in their internal control over financial reporting and there has been no change in the Companys internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting since December 31, 2013.
(z) The Company and the Businesses maintain disclosure controls and procedures (as such term is defined in Rule
13a-15(e) under the Exchange Act) which are (i) designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the Commissions rules and forms and that material information relating to the Company and the Businesses is made known to the Companys principal executive officer and principal financial officer by others
within the Company and the Businesses to allow timely decisions regarding disclosure, and (ii) effective in all material respects to perform the functions for which they were established. Based on the evaluation of the Companys and each
Businesss disclosure controls and procedures described above, the Company is not aware of (i) any significant deficiency in the design or operation of internal controls which could adversely affect the Companys ability to record,
process, summarize and report financial data or any material weaknesses in internal controls or (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Companys internal
controls. Since the most recent evaluation of the Companys disclosure controls and procedures described above, there have been no significant changes in internal controls or in other factors that could significantly affect internal controls.
(aa) There is and has been no failure on the part of the Company and, to the knowledge of the Company, any of the
Companys directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002 (the Sarbanes-Oxley Act) and the rules and regulations promulgated thereunder, including
Section 402 relating to loans and Sections 302 and 906 relating to certifications.
(bb) Each of the Company and the
Businesses maintains insurance covering its respective properties, operations, personnel and businesses as it reasonably believes to be financially responsible in amounts it reasonably deems adequate.
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(cc) Except as disclosed in the Time of Sale Prospectus and the Prospectus,
subsequent to the respective dates as of which such information is given or included in the Time of Sale Prospectus and the Prospectus, there has not occurred, or been any event, circumstance or development that could result in, any material adverse
change in the condition (financial or otherwise), prospects, net worth, management, earnings, operations, cash flows, business, operations or properties of the Company and the Businesses, taken as a whole.
(dd) Neither the Company nor, to its knowledge, any of its affiliates has taken or will take, directly or indirectly, any
action that constituted, or any action designed to, or that might reasonably be expected to cause or result in, stabilization or manipulation of the price of any security of the Trust to facilitate the sale or resale of the Shares.
(ee) To the Companys knowledge, no officer, director or nominee for director or 5% or greater shareholder of the Company
has a direct or indirect affiliation or association with any member of FINRA.
(ff) Neither the Company nor any of the
Businesses, nor any director, officer, controlled affiliate, nor to the knowledge of the Company, any agent, employee, other affiliate or representative of the Company or of any of the Businesses, has taken or will take any action in furtherance of
an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any government official (including any officer or employee of a
government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political
office) to influence official action or secure an improper advantage; and the Company and the Businesses and affiliates have conducted their businesses in compliance with applicable anti-corruption laws and have instituted and maintain and will
continue to maintain policies and procedures designed to promote and achieve compliance with such laws and with the representation and warranty contained herein.
(gg) (i) The Company represents that neither the Company nor any of the Businesses (collectively, the
Entity) or any director, officer, employee, agent, affiliate or representative of the Entity, is an individual or entity (Person) that is, or is owned or controlled by a Person that is:
(A) the subject of any sanctions administered or enforced by the U.S. Department of Treasurys Office of Foreign Assets
Control (OFAC), the United Nations Security Council (UNSC), the European Union (EU), Her Majestys Treasury (HMT), or other relevant sanctions authority
(collectively, Sanctions), nor
(B) located, organized or resident in a country or territory that is the
subject of Sanctions (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria).
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(ii) The Entity represents and covenants that it will not, directly or
indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:
(A) to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of
such funding or facilitation, is the subject of Sanctions; or
(B) in any other manner that will result in a violation of
Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).
(iii) The Entity represents and covenants that for the past 5 years, it has not knowingly engaged in, is not now knowingly
engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.
(hh) The operations of the Company and the Businesses are and have been conducted at all times in material compliance with all
applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions where the Company and the Businesses conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines,
issued, administered or enforced by any governmental agency (collectively, the Anti-Money Laundering Laws), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of the Businesses with respect to the Anti-Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.
2. Representations and Warranties of the Trust. The Company, as sponsor of the Trust, represents and warrants to and agrees with the
several Underwriters that:
(a) The Trust has been duly created and is validly existing and in good standing as a statutory
trust under the laws of the State of Delaware, has the trust power and authority to conduct its business as described in the Time of Sale Prospectus and Prospectus and is not required to be qualified or authorized to do business in any other
jurisdiction.
(b) There are 48,300,000 shares of Trust Stock outstanding as of the date of this Agreement. All of the
shares of Trust Stock currently outstanding are, and upon delivery of the Shares to be sold under this Agreement, all of the shares of Trust Stock will be, duly authorized, validly issued, fully paid and nonassessable and free of statutory and
contractual preemptive rights or rights of first refusal, and holders of the Shares will have the same personal liability as holders of shares of a private corporation for profit organized under the Delaware General Corporation Law
(DGCL). Except as described in the Time of Sale Prospectus and the Prospectus, no person has the right, contractual or otherwise, to cause the Trust to issue or sell to it any shares of Trust Stock or other securities of
the Trust.
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(c) The Trust Agreement has been duly authorized, executed and delivered by the
Company and the Regular Trustees and is a valid and binding obligation of the Company and the Regular Trustees. The Shares and the Trust Agreement conform in all material respects to the descriptions thereof in the Time of Sale Prospectus and the
Prospectus, and such descriptions conform to the rights set forth in the instruments defining the same.
(d) As of the
Closing Date and any Option Closing Date, the Trust shall have an authorized and outstanding capitalization as set forth under the heading of the Time of Sale Prospectus and the Prospectus entitled Pro Forma Capitalization (subject, in
the case of the Closing Date and in the event that the Closing Date and the Option Closing Date occur concurrently, to the issuance of the Additional Shares, and subject, in the case of the Option Closing Date, to the issuance of the Additional
Shares).
(e) Except as disclosed in the Time of Sale Prospectus and the Prospectus, there are no Contracts between the
Trust and any person granting such person the right to require the Trust to file a registration statement under the Securities Act with respect to any securities of the Trust owned or to be owned by such person or to require the Trust to include
such securities in the Shares registered pursuant to the Registration Statement.
(f) The Trust has all power and authority
necessary to execute and deliver this Agreement and the Shares, and to perform its obligations hereunder; and the issue and sale of the Shares hereunder have not and will not conflict with or result in a breach or violation of, constitute a default
under, or imposition of any lien, charge or encumbrance upon any property or assets of the Trust, the Company or any of the Businesses pursuant to (A) the Certificate of Trust of the Trust or the Trust Agreement, (B) any Laws applicable to
the Trust or the Businesses, or (C) the terms of any Contract to which the Trust, the Company or any of the Businesses is a party or by which the Trust, the Company or any of the Businesses is bound or pursuant to which any of the properties of
the Trust, the Company or any of the Businesses are subject.
(g) The Trust is not, and will not, after giving effect to
the offering and sale of the Shares to be issued by it and sold by the Company and the application of the proceeds as described in the Time of Sale Prospectus and the Prospectus, be an investment company within the meaning of the
Investment Company Act of 1940, as amended, and the Commissions rules and regulations thereunder.
3. Agreements to Sell and
Purchase. The Company hereby agrees to sell to the several Underwriters, and each Underwriter, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally and not
jointly, to purchase from the Company the respective numbers of Firm Shares set forth in Schedule II hereto opposite its name at $16.7125 per share (the Purchase Price).
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On the basis of the representations and warranties contained in this Agreement, and subject to
its terms and conditions, the Company agrees to sell to the Underwriters the Additional Shares, and the Underwriters shall have the right to purchase, severally and not jointly, up to the number of Additional Shares set forth in Schedule I
hereto at the Purchase Price, less an amount per share equal to any dividends or distributions declared by the Company and payable on the Firm Shares but not payable on the Additional Shares. You may exercise this right on behalf of the Underwriters
in whole or from time to time in part by giving written notice not later than 30 days after the date of the Prospectus. Any exercise notice shall specify the number of Additional Shares to be purchased by the Underwriters and the date on which such
shares are to be purchased. Each purchase date must be at least one business day after the written notice is given and may not be earlier than the closing date for the Firm Shares nor later than ten business days after the date of such notice. On
each day, if any, that Additional Shares are to be purchased (an Option Closing Date), each Underwriter agrees, severally and not jointly, to purchase the number of Additional Shares (subject to such adjustments to eliminate
fractional shares as you may determine) that bears the same proportion to the total number of Additional Shares to be purchased on such Option Closing Date as the number of Firm Shares set forth in Schedule II hereto opposite the name of
such Underwriter bears to the total number of Firm Shares.
The Company also covenants with each Underwriter that, without the prior
written consent of the Managers identified in Schedule I with the authorization to release this lock-up on behalf of the Underwriters, the Company will not, during the restricted period set forth in Schedule I hereto, (1) offer,
pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Trust
Stock or any securities convertible into or exercisable or exchangeable for Trust Stock or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Trust
Stock, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Trust Stock or such other securities, in cash or otherwise or (3) file any registration statement with the Commission relating to
the offering of any shares of Trust Stock or any securities convertible into or exercisable or exchangeable for Trust Stock. The foregoing sentence shall not apply to (a) the Shares to be sold hereunder, or (b) the issuance by the Company
of shares of Trust Stock upon the exercise of an option or warrant or the conversion of a security outstanding on the date hereof of which the Underwriters have been advised in writing. Notwithstanding the foregoing, if (a) during the last 17
days of the 45-day restricted period the Company issues an earnings release or material news or a material event relating to the Company occurs; or (b) prior to the expiration of the 45-day restricted period, the Company announces that it will
release earnings results during the 16-day period beginning on the last day of the 45-day period, the restrictions imposed by this agreement shall continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings
release or the occurrence of the material news or material event. The Company shall promptly notify the Managers of any earnings release, news or event that may give rise to an extension of the initial 45-day restricted period.
4. Public Offering. The Company is advised by you that the Underwriters propose to make a public offering of their respective
portions of the Shares as soon after the Registration Statement and this Agreement have become effective as in your judgment is advisable. The Company is further advised by you that the Shares are to be offered to the public upon the terms set forth
in the Prospectus.
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5. Payment and Delivery. Payment for the Firm Shares shall be made to the Company
in Federal or other funds immediately available in New York City on the closing date and time set forth in Schedule I hereto, or at such other time on the same or such other date, not later than the fifth business day thereafter, as may be
designated in writing by you. The time and date of such payment are hereinafter referred to as the Closing Date.
Payment for any Additional Shares shall be made to the Company in Federal or other funds immediately available in New York City on the date
specified in the corresponding notice described in Section 3 or at such other time on the same or on such other date, in any event not later than the tenth business day thereafter, as may be designated in writing by you.
The Firm Shares and the Additional Shares shall be registered in such names and in such denominations as you shall request in writing not
later than one full business day prior to the Closing Date or the applicable Option Closing Date, as the case may be, for the respective accounts of the several Underwriters, with any transfer taxes payable in connection with the transfer of the
Shares to the Underwriters duly paid, against payment of the Purchase Price therefor.
6. Conditions to the Underwriters
Obligations. The several obligations of the Underwriters are subject to the following conditions:
(a)
Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:
(i) there shall not have
occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any of the securities
of the Trust, the Company or any of the Businesses by any nationally recognized statistical rating organization, as such term is defined for purposes of Section 3(a)(62) of the Exchange Act; and
(ii) there shall not have occurred any change, or been any event, circumstance or development that could result in, any
material adverse change in the condition (financial or otherwise), prospects, net worth, management, earnings, operations, cash flows, business, operations or properties of the Company and the Businesses, taken as a whole, from that set forth in the
Time of Sale Prospectus as of the date of this Agreement that, in your judgment, is material and adverse and that makes it, in your judgment, impracticable to market the Shares on the terms and in the manner contemplated in the Time of Sale
Prospectus.
(b) The Underwriters shall have received on the Closing Date a certificate, dated the Closing Date and signed
by an executive officer of the Company, to the effect set forth in Section 6(a)(i) and (ii) above and to the effect that (i) the representations and warranties of the Trust and the Company contained in this Agreement are true and
correct as of the Closing Date, (ii) the Trust and the Company have complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied
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hereunder on or before the Closing Date, (iii) the Prospectus, and any supplement thereto, has been filed in the manner and within the time period required by Rule 424(b), (iv) each
free writing prospectus, if any, identified on Schedule I hereto and any other material required to be filed by the Company pursuant to Rule 433 under the Securities Act has been filed with the Commission within the applicable time periods
prescribed for such filings by Rule 433, (v) the Registration Statement is effective and (vi) no stop order suspending the effectiveness of the Registration Statement, or any notice objecting to its use, has been issued and no proceedings
for that purpose have been instituted or threatened by the Commission.
The officer signing and delivering such certificate may rely upon
the best of his or her knowledge as to proceedings threatened.
(c) The Underwriters shall have received on the Closing
Date an opinion and 10b-5 statement of Squire Patton Boggs (US) LLP, outside counsel for the Company, dated the Closing Date, to the effect set forth on Exhibit A hereto.
(d) The Underwriters shall have received on the Closing Date an opinion of Richards, Layton & Finger, P.A., outside
counsel for the Company, dated the Closing Date, to the effect set forth on Exhibit B hereto.
(e) The Underwriters
shall have received on the Closing Date an opinion and 10b-5 statement of Freshfields Bruckhaus Deringer US LLP, counsel for the Underwriters, dated the Closing Date, in form and substance reasonably satisfactory to the Managers.
The opinions of counsel for the Company described in Sections 6(c) and 6(d) above shall be rendered to the Underwriters at the request of
the Company and shall so state therein.
(f) The Underwriters shall have received, on each of the date hereof and the
Closing Date, a letter dated the date hereof or the Closing Date, as the case may be, in form and substance satisfactory to the Managers, from Grant Thornton LLP, independent public accountants, containing statements and information of the type
ordinarily included in accountants comfort letters to underwriters with respect to the financial statements and certain financial information contained in the Registration Statement, the Time of Sale Prospectus and the Prospectus;
provided that the letter delivered on the Closing Date shall use a cut-off date not earlier than two business days prior to the Closing Date.
(g) The lock-up agreements, each substantially in the form of Exhibit C hereto, between you and the persons and
entities listed on Schedule IV hereto relating to sales and certain other dispositions of shares of Trust Stock or certain other securities, delivered to you on or before the date hereof, shall be in full force and effect on the Closing Date.
(h) The Underwriters shall have received, on the Closing Date a certificate, dated the Closing Date and signed by the
chief financial officer of the Company, regarding the pro forma financial information included or incorporated by reference in the Registration Statement, the Time of Sale Prospectus and the Prospectus; substantially in the form of Exhibit D hereto.
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The several obligations of the Underwriters to purchase Additional Shares hereunder are subject
to the delivery to you on the applicable Option Closing Date of such documents as you may reasonably request with respect to the good standing of the Company, the due authorization and issuance of the Additional Shares to be sold on such Option
Closing Date and other matters related to the issuance of such Additional Shares.
7. Covenants of the Company. The Company,
for itself and as sponsor of the Trust, covenants with each Underwriter as follows:
(a) To furnish to you, without
charge, a signed copy of the Registration Statement (including exhibits thereto and documents incorporated by reference therein) and to deliver to each of the Underwriters during the period mentioned in Section 7(e) or 7(f) below, as many
copies of the Time of Sale Prospectus, the Prospectus, any documents incorporated by reference therein and any supplements and amendments thereto or to the Registration Statement as you may reasonably request.
(b) Before amending or supplementing the Registration Statement, the Time of Sale Prospectus or the Prospectus, to furnish to
you a copy of each such proposed amendment or supplement and not to file any such proposed amendment or supplement to which you reasonably object.
(c) To furnish to you a copy of each proposed free writing prospectus, including any electronic road shows, to be prepared by
or on behalf of, used by, or referred to by the Company and not to use or refer to any proposed free writing prospectus to which you reasonably object.
(d) Not to take any action that would result in an Underwriter, the Trust or the Company being required to file with the
Commission pursuant to Rule 433(d) under the Securities Act a free writing prospectus prepared by or on behalf of the Underwriter that the Underwriter otherwise would not have been required to file thereunder.
(e) If the Time of Sale Prospectus is being used to solicit offers to buy the Shares at a time when the Prospectus is not yet
available to prospective purchasers and any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Time of Sale Prospectus in order to make the statements therein, in the light of the circumstances, not
misleading, or if any event shall occur or condition exist as a result of which the Time of Sale Prospectus conflicts with the information contained in the Registration Statement then on file, or if, in the opinion of counsel for the Underwriters,
it is necessary to amend or supplement the Time of Sale Prospectus to comply with applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to the Underwriters and to any dealer upon request, either amendments
or supplements to the Time of Sale Prospectus so that the statements in the Time of Sale Prospectus as so amended or supplemented will not, in the light of the circumstances when the Time of Sale Prospectus is delivered to a prospective purchaser,
be misleading or so
16
that the Time of Sale Prospectus, as amended or supplemented, will no longer conflict with the Registration Statement, or so that the Time of Sale Prospectus, as amended or supplemented, will
comply with applicable law.
(f) If, during such period after the first date of the public offering of the Shares as in the
opinion of counsel for the Underwriters the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) of the Securities Act) is required by law to be delivered in connection with sales by an Underwriter or dealer, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the Prospectus in order to make the statements therein, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule 173(a) of
the Securities Act) is delivered to a purchaser, not misleading, or if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the Prospectus to comply with applicable law, forthwith to prepare, file with the
Commission and furnish, at its own expense, to the Underwriters and to the dealers (whose names and addresses you will furnish to the Company) to which Shares may have been sold by you on behalf of the Underwriters and to any other dealers upon
request, either amendments or supplements to the Prospectus so that the statements in the Prospectus as so amended or supplemented will not, in the light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule
173(a) of the Securities Act) is delivered to a purchaser, be misleading or so that the Prospectus, as amended or supplemented, will comply with applicable law.
(g) To endeavor to qualify the Shares for offer and sale under the securities or Blue Sky laws of such jurisdictions as you
shall reasonably request; provided that in connection therewith the Company shall not be required to qualify as a foreign corporation or to file a general consent to service of process in any jurisdiction.
(h) To make generally available to the Companys security holders and to you as soon as practicable an earnings statement
covering a period of at least twelve months beginning with the first fiscal quarter of the Company occurring after the date of this Agreement which shall satisfy the provisions of Section 11(a) of the Securities Act and the rules and
regulations of the Commission thereunder.
(i) Whether or not the transactions contemplated in this Agreement are
consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of its obligations under this Agreement, including: (i) the fees, disbursements and expenses of the Trusts and Companys
counsel and the Trusts and Companys accountants in connection with the registration and delivery of the Shares under the Securities Act and all other fees or expenses in connection with the preparation and filing of the Registration
Statement, any preliminary prospectus, the Time of Sale Prospectus, the Prospectus, any free writing prospectus prepared by or on behalf of, used by, or referred to by the Company and amendments and supplements to any of the foregoing, including the
filing fees payable to the Commission relating to the Shares (within the time required by Rule 456(b)(1), if applicable), all printing costs associated therewith, and the mailing and delivering of copies thereof to the Underwriters and dealers, in
the quantities hereinabove specified, (ii) all costs and expenses related to the transfer and delivery of the Shares to the Underwriters, including any transfer or other
17
taxes payable thereon, (iii) the cost of printing or producing any Blue Sky or Legal Investment memorandum in connection with the offer and sale of the Shares under state securities laws and
all expenses in connection with the qualification of the Shares for offer and sale under state securities laws as provided in Section 7(g) hereof, including filing fees and the reasonable fees and disbursements of counsel for the Underwriters
in connection with such qualification and in connection with the Blue Sky or Legal Investment memorandum, (iv) all filing fees and the reasonable fees and disbursements of counsel to the Underwriters incurred in connection with the review and
qualification of the offering of the Shares by FINRA, (v) all costs and expenses incident to listing the Shares on the New York Stock Exchange and any other national securities exchanges and foreign stock exchanges, (vi) the cost of
printing certificates representing the Shares, (vii) the costs and charges of any transfer agent, registrar or depositary, (viii) the costs and expenses of the Company relating to investor presentations on any road show
undertaken in connection with the marketing of the offering of the Shares, including, without limitation, expenses associated with the preparation or dissemination of any electronic road show, expenses associated with the production of road show
slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company, travel and lodging expenses of the representatives and officers of the Company and any such
consultants, and the cost of any aircraft chartered in connection with the road show, (ix) the document production charges and expenses associated with printing this Agreement and (x) all other costs and expenses incident to the
performance of the obligations of the Company hereunder for which provision is not otherwise made in this Section. It is understood, however, that except as provided in this Section 7, Section 9 entitled Indemnity and
Contribution and the last paragraph of Section 11 below, the Underwriters will pay all of their costs and expenses, including fees and disbursements of their counsel, stock transfer taxes payable on resale of any of the Shares by them and
any advertising expenses connected with any offers they may make.
(j) If the third anniversary of the initial effective
date of the Registration Statement occurs before all the Shares have been sold by the Underwriters, prior to the third anniversary to file a new shelf registration statement and to take any other action necessary to permit the public offering of the
Shares to continue without interruption; references herein to the Registration Statement shall include the new registration statement declared effective by the Commission.
(k) If requested by the Managers, to prepare a final term sheet relating to the offering of the Shares, containing only
information that describes the final terms of the offering in a form consented to by the Managers, and to file such final term sheet within the period required by Rule 433(d)(5)(ii) under the Securities Act following the date the final terms have
been established for the offering of the Shares.
8. Covenants of the Underwriters. Each Underwriter severally covenants
with the Trust and the Company not to take any action that would result in the Trust or the Company being required to file with the Commission under Rule 433(d) a free writing prospectus prepared by or on behalf of such Underwriter that otherwise
would not be required to be filed by the Trust or the Company thereunder, but for the action of the Underwriter.
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9. Indemnity and Contribution. (a) The Company and the Trust, jointly and severally,
agree to indemnify and hold harmless each Underwriter, each person, if any, who controls any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, and each affiliate of any Underwriter
within the meaning of Rule 405 under the Securities Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) caused by any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any amendments and supplements thereof, any preliminary prospectus, the Time of Sale
Prospectus or any amendment or supplement thereto, any issuer free writing prospectus as defined in Rule 433(h) under the Securities Act, any Trust or Company information that the Trust or the Company has filed, or is required to file, pursuant to
Rule 433(d) under the Securities Act, any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Shares, including any road show or investor presentations made
to investors by the Company (whether in person or electronically), or the Prospectus or any amendment or supplement thereto, or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon the Underwriter Information.
(b) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Trust, the Regular Trustees, the
Company, its directors, its officers who sign the Registration Statement and each person, if any, who controls the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent
as the foregoing indemnity from the Trust and the Company to such Underwriter, but only with reference to untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration Statement (or any amendments and
supplements thereto), including any information deemed to be a part thereof pursuant to Rule 430A or Rule 430B, the Time of Sale Prospectus or the Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with the
Underwriter Information.
(c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 9(a)or 9(b), such person (the indemnified party) shall promptly notify the person against whom such indemnity may be sought (the
indemnifying party) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such
proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be
19
inappropriate due to actual or potential differing interests between them. It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction, be liable for (i) the fees and expenses of more than one separate firm (in addition to any local counsel) for all Underwriters and all persons, if any, who control
any Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act or who are affiliates of any Underwriter within the meaning of Rule 405 under the Securities Act and (ii) the fees
and expenses of more than one separate firm (in addition to any local counsel) for the Trust, the Regular Trustees, the Company, the directors of the Company, the officers of the Company who sign the Registration Statement and each person, if any,
who controls the Trust or the Company within the meaning of either such Section, and that all such fees and expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the Underwriters and such control persons and
affiliates of any Underwriters, such firm shall be designated jointly in writing by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC. In the case of any such separate firm for the Trust and the
Company, and such directors, officers and control persons of the Trust or the Company, such firm shall be designated in writing by the Trust and the Company. The indemnifying party shall not be liable for any settlement of any proceeding effected
without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of
this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of
the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless (i) such
settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding and (ii) does not include any statement as to, or an admission of, fault, culpability or a
failure to act, by or on behalf of any indemnified party.
(d) To the extent the indemnification provided for in
Section 9(a) or 9(b) is unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received
by the Trust and the Company, on the one hand, and the Underwriters, on the other hand, from the offering of the Shares or (ii) if the allocation provided by clause 9(d)(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 9(d)(i) above but
20
also the relative fault of the Trust and the Company, on the one hand, and of the Underwriters, on the other hand, in connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Trust and the Company, on the one hand, and the Underwriters, on the other hand, in connection with the offering of the
Shares shall be deemed to be in the same respective proportions as the net proceeds from the offering of the Shares (before deducting expenses) received by the Trust and the Company and the total underwriting discounts and commissions received by
the Underwriters, bear to the aggregate initial public offering price of the Shares set forth in the Prospectus. The relative fault of the Trust and the Company, on the one hand, and the Underwriters, on the other hand, 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 Company or by the Underwriters and the
parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Underwriters respective obligations to contribute pursuant to this Section 9 are several in proportion
to the respective number of Shares they have purchased hereunder, and not joint.
(e) The Company and the Underwriters
agree that it would not be just or equitable if contribution pursuant to this Section 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in Section 9(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities referred to in Section 9(d) shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 9, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any
damages that such 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
Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The remedies provided for in this Section 9 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.
(f) The indemnity and contribution provisions
contained in this Section 9 and the representations, warranties and other statements of the Trust and the Company contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this
Agreement, (ii) any investigation made by or on behalf of any Underwriter, any person controlling any Underwriter or any affiliate of any Underwriter, or by or on behalf of the Trust or the Company, its officers or directors or any person
controlling the Trust or the Company and (iii) acceptance of and payment for any of the Shares.
21
10. Termination. The Underwriters may terminate this Agreement by notice given by you to
the Company, if, after the execution and delivery of this Agreement and prior to the Closing Date, (i) trading generally shall have been suspended or materially limited on, or by, as the case may be, any of the New York Stock Exchange, the
American Stock Exchange, the Nasdaq Global Select Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii) trading of any securities of the Company shall have been suspended on any
exchange or in any over-the-counter market, (iii) a material disruption in securities settlement, payment or clearance services in the United States shall have occurred, (iv) any moratorium on commercial banking activities shall have been
declared by Federal or New York State authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis that, in your judgment, is material and adverse and
which, singly or together with any other event specified in this clause (v), makes it, in your judgment, impracticable or inadvisable to proceed with the offer, sale or delivery of the Shares on the terms and in the manner contemplated in the
Time of Sale Prospectus or the Prospectus.
11. Effectiveness; Defaulting Underwriters. This Agreement shall become
effective upon the execution and delivery hereof by the parties hereto.
If, on the Closing Date or an Option Closing Date, as the
case may be, any one or more of the Underwriters shall fail or refuse to purchase Shares that it has or they have agreed to purchase hereunder on such date, and the aggregate number of Shares which such defaulting Underwriter or Underwriters agreed
but failed or refused to purchase is not more than one-tenth of the aggregate number of the Shares to be purchased on such date, the other Underwriters shall be obligated severally in the proportions that the number of Firm Shares set forth opposite
their respective names in Schedule II bears to the aggregate number of Firm Shares set forth opposite the names of all such non-defaulting Underwriters, or in such other proportions as you may specify, to purchase the Shares which such
defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date; provided that in no event shall the number of Shares that any Underwriter has agreed to purchase pursuant to this Agreement be increased pursuant to
this Section 11 by an amount in excess of one-ninth of such number of Shares without the written consent of such Underwriter. If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Firm Shares and the
aggregate number of Firm Shares with respect to which such default occurs is more than one-tenth of the aggregate number of Firm Shares to be purchased on such date, and arrangements satisfactory to you and the Company for the purchase of such Firm
Shares are not made within 36 hours after such default, this Agreement shall terminate without liability on the part of any non-defaulting Underwriter or the Company. In any such case either you or the Company shall have the right to postpone the
Closing Date, but in no event for longer than seven days, in order that the required changes, if any, in the Registration Statement, in the Time of Sale Prospectus, in the Prospectus or in any other documents or arrangements may be effected. If, on
an Option Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Additional Shares and the aggregate number of Additional Shares with respect to which such default occurs is more than one-tenth of the aggregate number of
Additional Shares to be purchased on such Option Closing Date, the non-defaulting Underwriters shall have the option to (i) terminate their obligation hereunder to purchase the Additional Shares to be sold on such Option Closing Date or
(ii) purchase not less than the number of Additional Shares that such non-defaulting Underwriters would have been
22
obligated to purchase in the absence of such default. Any action taken under this paragraph shall not relieve any defaulting Underwriter from liability in respect of any default of such
Underwriter under this Agreement.
If this Agreement shall be terminated by the Underwriters, or any of them, because of any failure or
refusal on the part of the Trust or the Company to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Trust or the Company shall be unable to perform its obligations under this Agreement, the Trust
or the Company agrees severally, and not jointly, that it will reimburse the Underwriters or such Underwriters as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket expenses (including the fees and
disbursements of their counsel) reasonably incurred by such Underwriters in connection with this Agreement or the offering contemplated hereunder.
12. Entire Agreement. (a) This Agreement, together with any contemporaneous written agreements and any prior written
agreements (to the extent not superseded by this Agreement) that relate to the offering of the Shares, represents the entire agreement between the Trust, the Company and the Underwriters with respect to the preparation of any preliminary prospectus,
the Time of Sale Prospectus, the Prospectus, the conduct of the offering, and the purchase and sale of the Shares.
(b) Each of the Trust and the Company acknowledges that in connection with the offering of the Shares: (i) the
Underwriters have acted at arms length, are not agents of, and owe no fiduciary duties to, the Trust or the Company or any other person, (ii) the Underwriters owe the Company only those duties and obligations set forth in this Agreement
and prior written agreements (to the extent not superseded by this Agreement), if any, and (iii) the Underwriters may have interests that differ from those of the Trust and the Company. Each of the Trust and the Company waives to the full
extent permitted by applicable law any claims it may have against the Underwriters arising from an alleged breach of fiduciary duty in connection with the offering of the Shares.
13. Counterparts. This Agreement may be signed in two or more counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall be binding upon each of the undersigneds successors and assigns. Except as otherwise expressly provided for herein, this Agreement may not be
amended or modified unless in writing by all of the parties hereto.
14. Applicable Law. This Agreement shall be
governed by and construed in accordance with the internal laws of the State of New York.
15. Headings. The headings
of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of this Agreement.
16. Notices. All communications hereunder shall be in writing and effective only upon receipt and if to the Underwriters shall
be delivered, mailed or sent to you at the address set forth in Schedule I hereto; if to the Trust or the Company shall be delivered, mailed or sent to the address set forth in Schedule I hereto.
[signature page follows]
23
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Very truly yours, |
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COMPASS DIVERSIFIED HOLDINGS |
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By: |
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/s/ Ryan J. Faulkingham |
|
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Name: Ryan J. Faulkingham |
|
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Title: Regular Trustee |
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COMPASS GROUP DIVERSIFIED HOLDINGS LLC |
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By: |
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/s/ Ryan J. Faulkingham |
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Name: Ryan J. Faulkingham |
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Title: CFO |
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COMPASS GROUP MANAGEMENT LLC |
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By: |
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/s/ Alan B. Offenberg |
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Name: Alan B. Offenberg |
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Title: Partner |
[Signature page to Underwriting Agreement]
Accepted as of the date first written above.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Morgan Stanley & Co. LLC
Jefferies LLC
Acting severally on behalf of itself and the several Underwriters named in Schedule II hereto.
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MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED |
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By: |
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/s/ Gary Swidler |
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Name: Gary Swidler |
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Title: Managing Director |
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MORGAN STANLEY & CO. LLC |
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By: |
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/s/ Taylor Wright |
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Name: Taylor Wright |
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Title: Managing Director |
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JEFFERIES LLC |
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By: |
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/a/ Lawrence Portman |
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Name: Lawrence Portman |
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Title: Managing Director |
[Signature page to Underwriting Agreement]
SCHEDULE I
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Managers: |
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Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Morgan Stanley & Co. LLC Jefferies LLC |
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Managers authorized to release lock-up under Section 4: |
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Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Morgan Stanley & Co. LLC |
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Manager authorized to appoint counsel under Section 10(d): |
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Merrill Lynch, Pierce, Fenner & Smith
Incorporated |
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Registration Statement File No.: |
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333-178071 |
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Time of Sale Prospectus: |
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1. Basic Prospectus, as amended, dated December 14, 2011
relating to the Shelf Securities.
2. The preliminary prospectus supplement dated November 10, 2014 relating to the
Shares.
3. The information included on Schedule V hereto. |
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Lock-up Restricted Period: |
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45 days from November 11, 2014, subject to extension |
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Number of Firm Shares: |
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6,000,000 |
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Number of Additional Shares |
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900,000 |
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Closing Date and Time: |
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November 14, 2014 at 10:00 AM New York City time |
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Closing Location: |
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Freshfields Bruckhaus Deringer US LLP 601
Lexington Avenue 31st Floor New York, NY 10022 |
I-1
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Address for Notices to Underwriters: |
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Merrill Lynch One Bryant Park
New York, New York 10036
Facsimile number: (646) 855-3073 (Attn: Syndicate Department)
With a copy to ECM Legal
Facsimile number: (212) 230-8730
Morgan Stanley & Co. LLC 1585 Broadway
New York, NY 10036
Attention: Equity Syndicate Desk, with a copy to the Legal Department |
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Address for Notices to the Trust or the Company: |
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Compass Diversified Holdings LLC, Sixty One
Wilton Road Westport, CT 06880
Facsimile number: (203) 221-8253 (Attn: General Counsel) |
I-2
SCHEDULE II
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Underwriter |
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Number of Firm Shares To Be Purchased |
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Merrill Lynch, Pierce, Fenner & Smith
Incorporated |
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2,100,000 |
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Morgan Stanley & Co. LLC |
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2,100,000 |
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Jefferies LLC |
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600,000 |
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BB&T Capital Markets, a division of BB&T Securities, LLC |
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240,000 |
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CJS Securities, Inc. |
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240,000 |
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Janney Montgomery Scott LLC |
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240,000 |
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Raymond James & Associates, Inc. |
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240,000 |
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William Blair & Company L.L.C. |
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240,000 |
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Total: |
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6,000,000 |
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II-1
SCHEDULE III
List of Businesses
Compass AC Holdings, Inc.
AFM
Holdings Corporation
Anodyne Medical Devices, Inc.
ERGO Baby Holding Corporation
Liberty Safe Holding Corporation
CBAC Holdings, LLC
AMTAC Holdings,
LLC
CEHI Acquisition Corporation
SternoCandleLamp Holdings, Inc.
III-1
SCHEDULE IV
Persons subject to Lock-Up Agreement
C. Sean Day
Gordon M. Burns
Harold S. Edwards
D. Eugene Ewing
Mark H. Lazarus
Alan B.
Offenberg
James J. Bottiglieri
Ryan J. Faulkingham
Elias J. Sabo
IV-1
SCHEDULE V
Pricing Terms
1. The Company, the Trust
and the CODI Manager are selling 6,000,000 shares of Trust Stock.
2. The Company has granted an option to the Underwriters, severally and not jointly, to
purchase up to an additional 900,000 shares of Trust Stock.
3. The initial public offering price per share for the Shares shall be $17.50.
V-1
Exhibit 5.1
November 11, 2014
Compass Diversified Holdings
Sixty One Wilton Road
Second Floor
Westport, Connecticut 06880
Re: Compass Diversified Holdings
Ladies
and Gentlemen:
We have acted as special Delaware counsel for Compass Diversified Holdings, a Delaware statutory trust (the
Trust), in connection with the matters set forth herein. At your request, this opinion is being furnished to you.
For
purposes of giving the opinions hereinafter set forth, our examination of documents has been limited to the examination of originals or copies of the following:
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(a) |
The Certificate of Trust of the Trust as filed with the office of the Secretary of State of the State of Delaware (the Secretary of State) on November 18, 2005, as amended by the Certificate of
Amendment to Certificate of Trust as filed with the Secretary of State on September 13, 2007 with an effective date of September 14, 2007 (collectively, the Certificate of Trust); |
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(b) |
The Trust Agreement, dated as of November 18, 2005 among Compass Diversified Holdings LLC (the Company) and the trustees named therein, as amended and restated by the Amended and Restated Trust
Agreement for the Trust, dated as of April 25, 2006, as amended by the First Amendment, dated as of May 25, 2007, as further amended by the Second Amendment, dated as of September 14, 2007 as further amended by the Third Amendment,
dated as of December 21, 2007 and effective as of January 1, 2007 and as further amended by the Fourth Amendment, dated as of November 1, 2010 (as amended, the Trust Agreement) (including the form of Share certificate
attached thereto as Exhibit A), incorporated by reference in the Registration Statement; |
Compass Diversified Holdings
November 11, 2014
Page
2
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(c) |
The Registration Statement (the Registration Statement) on Form S-3, including a preliminary prospectus (the Prospectus) relating to 6,000,000 shares of the Trust representing beneficial
interests in the assets of the Trust (each, a Share and collectively, the Shares), filed by the Company and the Trust with the Securities and Exchange Commission on or about the date hereof; |
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(d) |
A Certificate of the Company in its capacity as Sponsor, including certain resolutions attached thereto, authorizing the issuance of the Shares by the Trust; and |
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(e) |
A Certificate of Good Standing for the Trust, dated November 10, 2014, obtained from the Secretary of State. |
For purposes of this opinion, we have not reviewed any documents other than the documents listed in paragraphs (a) through
(e) above. We have conducted no independent factual investigation of our own, but rather have relied solely upon the foregoing documents, the statements and information set forth therein and the additional matters recited or assumed herein, all
of which we have assumed to be true, complete and accurate in all material respects.
Capitalized terms used herein and not otherwise
defined are used as defined in the Trust Agreement.
With respect to all documents examined by us, we have assumed (i) the
authenticity of all documents submitted to us as originals, (ii) the conformity with the originals of all documents submitted to us as copies or forms, and (iii) the genuineness of all signatures.
For purposes of this opinion, we have assumed (i) that the Trust Agreement and the Certificate of Trust will be in full force and effect
and will not be amended as of the date the Shares are issued, (ii) the due organization or due formation, as the case may be, and valid existence in good standing of each party to the documents (other than the Trust or, to the extent covered in
the opinion of Richards, Layton & Finger, P.A. of even date herewith, the Company) examined by us under the laws of the jurisdiction governing its organization or formation, (iii) the legal capacity of natural persons who are
signatories to the documents examined by us, (iv) that each of the parties to the documents (other than the Trust or, to the extent covered in the opinion of Richards, Layton & Finger, P.A. of even date herewith, the Company) examined
by us has the power and authority to execute and deliver, and to perform its obligations under, such documents, (v) the due authorization, execution and delivery by all parties thereto of all documents (other than the Trust or, to the extent
covered in the opinion of Richards, Layton & Finger, P.A. of even date herewith, the Company) examined by us, (vi) the receipt by each Person to whom a Share is to be issued by the Trust (collectively, the Shareholders) of
either (A) a Share Certificate for such Share or (B) confirmation of the Trusts registration in the Share Register of such Person as the registered owner of such Share, and the payment for such Share, in accordance with the Trust
Agreement and the Registration Statement as of the date the Shares
Compass Diversified Holdings
November 11, 2014
Page
3
are issued, (vii) that the Shares will be authenticated, issued and sold to the Shareholders in accordance with the Trust Agreement and the Registration Statement, (viii) that after the
issuance and sale of the Shares under the Registration Statement and the Trust Agreement, the aggregate number of the Shares issued by the Trust will not exceed 500,000,000 Shares, and (ix) that any amendment or restatement of any document
reviewed by us has been accomplished in accordance with, and was permitted by, the relevant provisions of any such document prior to such amendment or restatement. We have not participated in the preparation of the Registration Statement, except for
this opinion, or the Prospectus and assume no responsibility for their contents, other than this opinion.
This opinion is limited to the
laws of the State of Delaware (excluding the blue sky laws of the State of Delaware), and we have not considered and express no opinion on the laws of any other jurisdiction, including federal laws and rules and regulations relating thereto. Our
opinions are rendered only with respect to Delaware laws and rules, regulations and orders thereunder which are currently in effect.
Based upon the foregoing, and upon our examination of such questions of law and statutes of the State of Delaware as we have considered
necessary or appropriate, and subject to the assumptions, qualifications, limitations and exceptions set forth herein, we are of the opinion that:
1. The Trust has been duly formed and is validly existing in good standing as a statutory trust under the Delaware Statutory Trust Act, 12
Del.C. § 3801, et seq.
2. The Shares of the Trust will be validly issued, fully paid and nonassessable beneficial
interests in the assets of the Trust.
3. The Shareholders, as beneficial owners of the Trust, will be entitled to the same limitation of
personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of Delaware.
We consent to the filing of this opinion with the Securities and Exchange Commission as an exhibit to the Registration Statement. We hereby
consent to the use of our name under the heading Legal Matters in the Prospectus. In giving the foregoing consents, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the
Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.
Very truly yours,
/s/Richards, Layton & Finger, P.A.
Exhibit 5.2
November 11, 2014
Compass Group Diversified Holdings LLC
61 Wilton Road
Second Floor
Westport, Connecticut 06880
Re: Compass Group Diversified Holdings LLC
Ladies and Gentlemen:
We have acted as special
Delaware counsel for Compass Group Diversified Holdings LLC, a Delaware limited liability company (the LLC), in connection with the matters set forth herein. At your request, this opinion is being furnished to you.
For purposes of giving the opinions hereinafter set forth, our examination of documents has been limited to the examination of originals or
copies of the following:
(a) The Certificate of Formation of the LLC, dated November 18, 2005, as filed in the office of the
Secretary of State of the State of Delaware (the Secretary of State) on November 18, 2005, as amended by the Certificate of Amendment thereto, dated April 27, 2006, as filed in the office of the Secretary of State on
May 2, 2006 (as so amended, the LLC Certificate);
(b) The Operating Agreement of the LLC, dated as of November 18,
2005, entered into by Compass Group Management LLC, as the sole member of the LLC (the Initial Member);
(c) The Amended and
Restated Operating Agreement of the LLC, dated as of April 25, 2006, entered into between Compass Diversified Holdings (formerly known as Compass Diversified Trust), a Delaware statutory trust (the Trust), and the Initial Member, as
the members of the LLC;
(d) The Registration Statement on Form S-3, filed with the Securities and Exchange Commission (the
SEC) on November 18, 2011, as amended by Amendment No. 1 thereto, filed with the SEC on December 7, 2011 and effective December 14, 2011 (as so amended, the Registration Statement), including a related
prospectus, as supplemented by the preliminary prospectus supplement filed with the SEC on November 11, 2014 (jointly, the Prospectus), relating to the shares representing beneficial interests of the Trust (Trust Shares)
to be issued pursuant thereto and the Underwriting Agreement (as defined below), and the limited liability company interests in the Company to be issued to the Trust in exchange for such Trust Shares (the Trust Interests);
Compass Group Diversified Holdings LLC
November 11, 2014
Page
2
(e) The Second Amended and Restated Operating Agreement of the LLC, effective as of
January 4, 2007, entered into between the Members;
(f) The Third Amended and Restated Operating Agreement of the LLC, dated as of
November 1, 2010, entered into between the Members, as amended by the Amendment thereto, dated as of January 1, 2012;
(g) The
Fourth Amended and Restated Operating Agreement of the LLC, dated as of January 1, 2012 (the LLC Agreement), entered into between the Members;
(h) A Certificate of an officer of the LLC, dated as of November 11, 2014, as to certain matters; and
(i) A Certificate of Good Standing for the LLC, dated November 10, 2014, obtained from the Secretary of State.
Capitalized terms used herein and not otherwise defined are used as defined in the LLC Agreement.
For purposes of this opinion, we have not reviewed any documents other than the documents listed in paragraphs (a) through
(i) above. We have conducted no independent factual investigation of our own, but rather have relied solely upon the foregoing documents, the statements and information set forth therein and the additional matters recited or assumed herein, all
of which we have assumed to be true, complete and accurate in all material respects.
With respect to all documents examined by us, we
have assumed (i) the authenticity of all documents submitted to us as authentic originals, (ii) the conformity with the originals of all documents submitted to us as copies or forms, and (iii) the genuineness of all signatures.
For purposes of this opinion, we have assumed (i) that the LLC Agreement and the LLC Certificate will be in full force and effect and
will not have been amended as of the date on which the Trust Interests are issued, (ii) that each of the parties (other than the LLC or, to the extent covered in the opinion of Richards, Layton & Finger, P.A. of even date herewith, the
Trust) to the documents examined by us has been duly created, organized or formed, as the case may be, and is validly existing in good standing under the laws of the jurisdiction governing its creation, organization or formation, (iii) the
legal capacity of natural persons who are signatories to the documents examined by us, (iv) each of the parties (other than the LLC or, to the extent covered in the opinion of Richards, Layton & Finger, P.A. of even date herewith, the
Trust) to
Compass Group Diversified Holdings LLC
November 11, 2014
Page
3
the documents examined by us has the power and authority to execute and deliver, and to perform its obligations under, such documents, (v) the due authorization, execution and delivery by
the parties thereto of the documents examined by us as of the date hereof and as of the date on which the Trust Interests are issued by the LLC, (vi) that each Person to whom a Trust Interest is to be issued by the LLC (each, a Trust
Interest Holder and collectively, the Trust Interest Holders) will receive a Trust Interest Certificate for such Trust Interest and will pay for the Trust Interest acquired by it, in accordance with the LLC Agreement and the
Registration Statement, (vii) that the books and records of the LLC set forth the names and addresses of all Persons to be admitted as members of the LLC and the dollar value of each such members contribution to the LLC, and
(viii) that the Trust Interests are issued and sold to the Trust Interest Holders in accordance with the Registration Statement and the LLC Agreement. We have not participated in the preparation of the Registration Statement or the Prospectus
and assume no responsibility for their contents, other than this opinion.
This opinion is limited to the laws of the State of Delaware
(excluding the blue sky laws of the State of Delaware), and we have not considered and express no opinion on the laws of any other jurisdiction, including federal laws and rules and regulations relating thereto. Our opinions are rendered only with
respect to Delaware laws and rules, regulations and orders thereunder which are currently in effect.
Based upon the foregoing, and upon
our examination of such questions of law and statutes of the State of Delaware as we have considered necessary or appropriate, and subject to the assumptions, qualifications, limitations and exceptions set forth herein, we are of the opinion that:
1. The LLC 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. § 18-101, et seq.) (the LLC Act).
2. The Trust Interests will be
validly issued and, subject to the qualifications set forth in paragraph 3 below, fully paid and nonassessable limited liability company interests in the LLC.
3. A Trust Interest Holder shall not be obligated personally for any of the debts, obligations or liabilities of the LLC, whether arising in
contract, tort or otherwise, solely by reason of being a member of the LLC, except as a Trust Interest Holder may be obligated to repay any funds wrongfully distributed to it. We note that a Trust Interest Holder may be obligated pursuant to the LLC
Agreement to provide the Transfer Agent sufficient indemnity in connection with the issuance of replacement Trust Interest Certificates.
We consent to the filing of this opinion with the Securities and Exchange Commission as an exhibit to the Registration Statement. In addition,
we hereby consent to the use of our name under the heading Legal Matters in the Prospectus. In giving the foregoing consents, we do not thereby admit that we come within the category of persons or entities whose consent is required under
Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.
Very truly yours,
/s/Richards, Layton & Finger, P.A.
Exhibit 8.1
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Squire Patton Boggs (US) LLP 221 E. Fourth St., Suite 2900
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November 11, 2014
Compass
Diversified Holdings
Sixty One Wilton Road
Second Floor
Westport, Connecticut 06880
Compass Group Diversified
Holdings LLC
Sixty One Wilton Road
Second Floor
Westport, Connecticut 06880
Re: Public
Offering of Compass Diversified Holdings
Ladies and Gentlemen:
We have acted as counsel to Compass Diversified Holdings (the Trust) and Compass Group Diversified Holdings LLC (the
Company) in connection with the preparation of a prospectus supplement (the Prospectus Supplement) that relates to a Registration Statement that was filed by the Trust and the Company with the Securities and Exchange
Commission under the Securities Act of 1933, as amended (the Securities Act) on Form S-3 which became effective December 14, 2011 (the Registration Statement). The Prospectus Supplement and Registration Statement relate
to the offering of shares representing beneficial interests in the Trust (the Shares). Each Share of the Trust corresponds to one interest (referred to as a trust interest in the Prospectus) of the Company held by the Trust.
In preparing this opinion, we have examined and relied on such documents as we have deemed appropriate, including, the Prospectus
Supplement and the Registration Statement and the originals or copies, certified or otherwise identified to our satisfaction, of corporate records of the Trust and the Company and such other instruments, certificates and other documents of public
officials and such other persons, and we have made such investigations of law, as we have deemed appropriate as a basis for the opinion expressed below.
We have reviewed the statements set forth under the caption Supplemental Material U.S. Federal Income Tax Considerations in the
Prospectus Supplement and under the caption Material U.S. Federal Income Tax Considerations in the Registration Statement and hereby advise you that, to the extent such statements constitute statements of law or indicate the statements
are legal conclusions drawn by us from an application of the law to the present facts, such statements represent the opinion of Squire Patton Boggs (US) LLP as to the United States federal income tax matters.
We express no opinions other than those expressed herein and identified in the Prospectus Supplement or the Registration Statement. We hereby
consent to the use of this letter as an exhibit to the Prospectus Supplement and the Registration Statement. In giving this consent, we do not thereby admit that we are included in the category of persons whose consent is required under
Section 7 of the Securities Act or the rules and regulations promulgated thereunder.
Respectfully Submitted,
/s/ Squire Patton Boggs (US) LLP
44 Offices in 21 Countries
Squire Patton Boggs (US) LLP is part of the international legal practice Squire Patton Boggs, which operates worldwide through a number of separate legal
entities.
Please visit squirepattonboggs.com for more information.
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