Document:

exv4w2

 

Exhibit 4.2

 

Registration Rights Agreement

Dated as of February 16, 2007

Anixter International Inc.

 

 

 

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this “Agreement”) is made and entered into this 16th day
of February, 2007, by and between Anixter International Inc., a Delaware corporation (the
“Company”), and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) on its own
behalf and as representative of the other Initial Purchasers named on Schedule A to the Purchase
Agreement (as defined below).

     This Agreement is made pursuant to the Purchase Agreement (the “Purchase Agreement”), dated
February 12, 2007, between the Company and the Initial Purchasers named therein (the “Initial
Purchasers”), for whom Merrill Lynch acts as representative, which provides for the sale by the
Company to the Initial Purchasers of $275,000,000 aggregate principal amount ($300,000,000
aggregate principal amount if the Initial Purchasers exercise their over-allotment option in full)
of the Company’s 1% Senior Convertible Notes due 2013 (the “Notes” and together with the shares of
Common Stock (as defined below) into which the Notes are convertible, the “Securities”). In order
to induce the Initial Purchasers to enter into the Purchase Agreement, the Company has agreed to
provide to the Initial Purchasers and their direct and indirect transferees the registration rights
set forth in this Agreement. The execution of this Agreement is a condition to the closing under
the Purchase Agreement.

     In consideration of the foregoing, the parties hereto agree as follows:

     1. Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the following
meanings:

     “1933 Act” shall mean the Securities Act of 1933, as amended.

     “1934 Act” shall mean the Securities Exchange Act of l934, as amended.

     “1939 Act” shall mean the Trust Indenture Act of 1939, as amended.

     “Additional Interest” shall have the meaning set forth in Section 2.4.

     “Closing Date” shall mean the Initial Closing Time as defined in the Purchase
Agreement.

     “Common Stock” shall mean any shares of common stock, par value $1.00 per share, of
the Company and any other shares of common stock as may constitute “Common Stock” for purposes of
the Indenture.

     “Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

     “Depositary” shall mean The Depository Trust Company, or any other depositary
appointed by the Company, provided, however, that such depositary must have an address in the
Borough of Manhattan, in the City of New York.

 

 

     “Effectiveness Period” shall have the meaning set forth in Section 2.1(b).

     “Holder” shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and their successors, assigns and direct and indirect transferees who become owners,
beneficial or otherwise, of Registrable Securities under the Indenture.

     “Indenture” shall mean the Indenture relating to the Notes, dated as of the date
hereof, between the Company and The Bank of New York Trust Company, N.A., as Trustee, as the same
may be amended, supplemented, waived or otherwise modified from time to time in accordance with the
terms thereof.

     “Initial Purchasers” shall have the meaning set forth in the preamble.

     “Issuer Free Writing Prospectus” shall have the meaning set forth in Section 2.1(f).

     “Majority Holders” shall mean (a) the Holders of a majority of the aggregate principal
amount of outstanding Registrable Securities or (b) the Holders of a majority of the aggregate
principal amount of the specified Registrable Securities, as the context requires; provided that,
for purposes of this definition, (1) a Holder of shares of Common Stock that constitute Registrable
Securities which were issued upon conversion of Notes shall be deemed to hold an aggregate
principal amount at maturity of Notes (in addition to the principal amount at maturity of any Notes
held by such Holder) equal to the principal amount at maturity of Notes which were converted into
such shares of Common Stock (excluding the principal amount at maturity of any such Notes that were
converted into cash) and (2) such Notes (excluding any such Notes that were converted into cash)
which were converted into such shares of Common Stock shall be deemed to be outstanding; provided
further, that whenever the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or any Affiliate (as
defined in the Indenture) of the Company shall be disregarded in determining whether such consent
or approval was given by the Holders of such required percentage amount.

     “Merrill Lynch” shall have the meaning set forth in the preamble.

     “Offering Memorandum” shall mean the offering memorandum of the Company, dated
February 12, 2007, related to the Securities.

     “Person” shall mean an individual, partnership (general or limited), corporation,
limited liability company, trust, unincorporated organization or other entity, or a government or
agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus relating to the Securities included in a Shelf
Registration Statement, including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including any such prospectus supplement with respect to
the terms of the offering of any portion of the Registrable Securities covered by a Shelf
Registration Statement, and by all other amendments and supplements to a prospectus, including
post-effective amendments, and in each case including all materials incorporated by reference
therein.

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     “Purchase Agreement” shall have the meaning set forth in the preamble.

     “Questionnaire” shall have the meaning set forth in Section 2.1(d).

     “Registrable Securities” shall mean all or any of the Securities; provided, however,
that any such Securities shall cease to be Registrable Securities when (i) a Shelf Registration
Statement with respect to such Securities shall have become effective under the 1933 Act and such
Securities shall have been disposed of pursuant to such Shelf Registration Statement, (ii) such
Securities have been sold to the public pursuant to Rule 144 or may be sold or transferred pursuant
to Rule l44(k) (or any similar provision then in force, but not Rule 144A) under the 1933 Act, or
(iii) such Securities shall have ceased to be outstanding.

     “Registration Default” shall have the meaning set forth in Section 2.4.

     “Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, whether or not a Shelf Registration Statement
becomes effective, including without limitation: (i) all SEC, stock exchange or National
Association of Securities Dealers, Inc. (the “NASD”) registration and filing fees,
including, if applicable, the fees and expenses of any “qualified independent underwriter” (and its
counsel) that is required to be retained by any holder of Registrable Securities in accordance with
the rules and regulations of the NASD, (ii) all fees and expenses incurred by the Company in
connection with compliance with state securities or blue sky laws and compliance with the rules of
the NASD (including reasonable fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Registrable Securities and any filings with
the NASD), (iii) all expenses of the Company in preparing or assisting in preparing, word
processing, printing and distributing any Shelf Registration Statement, any Prospectus, any
amendments or supplements thereto, any securities sales agreements and other documents relating to
the performance of and compliance with this Agreement, (iv) all fees and expenses incurred by the
Company in connection with the listing, if any, of any of the Registrable Securities on any
securities exchange or exchanges, (v) all rating agency fees incurred by the Company, if any, (vi)
the fees and disbursements of counsel for the Company and of the independent public accountants of
the Company, including the expenses of any special audits or “comfort” letters required by or
incident to such performance and compliance, (vii) the reasonable fees and expenses of the Trustee,
and any escrow agent or custodian, (viii) if requested by the Majority Holders, the reasonable fees
and expenses of a single counsel to the Holders in connection with any Shelf Registration
Statement, which counsel shall be a nationally recognized law firm experienced in securities law
matters selected by the Company, and (ix) any fees and expenses of any special experts retained by
the Company in connection with any Shelf Registration Statement, but excluding any underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or disposition of
Registrable Securities by a Holder.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency or
government body performing the functions currently performed by the United States Securities and
Exchange Commission.

     “Securities” shall have the meaning set forth in the preamble.

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     “Shelf Registration” shall mean a registration effected pursuant to Section 2.1.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the
Company pursuant to the provisions of Section 2.1 which covers all of the Registrable Securities on
Form S-3 (including an automatic shelf registration statement filed pursuant to General Instruction
I.D. of Form S-3) or, if not then available to the Company, on another appropriate form under Rule
415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all materials incorporated by
reference therein.

     “Suspension Period” shall have the meaning set forth in Section 2.5.

     “Trustee” shall mean the trustee with respect to the Securities under the Indenture.

     2. Registration Under the 1933 Act.

     2.1 Shelf Registration.

          (a) The Company shall, at its cost, no later than 90 days after the Closing Date, file with
the SEC, and thereafter shall use its reasonable best efforts to cause to become effective as
promptly as practicable but no later than 180 days after the Closing Date, a Shelf Registration
Statement relating to the offer and sale of the Registrable Securities by the Holders that have
provided the information pursuant to Section 2.1(d).

          (b) The Company shall, at its cost, use its reasonable best efforts, subject to Section 2.5,
to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus
forming part thereof to be usable by Holders (i) for a period of two years from the date of the
original issuance of the Notes or (ii) for such shorter period that will terminate (A) when all
Registrable Securities covered by the Shelf Registration Statement have been sold pursuant to the
Shelf Registration Statement, (B) when the Holders, other than “affiliates” (as defined in Rule 144
under the 1933 Act) of the Company, are able to sell or transfer to the public all Registrable
Securities immediately without restriction pursuant to Rule 144 (or any similar provision then in
force, including Rule 144(k), but not Rule 144A) under the 1933 Act or (C) when all Registrable
Securities cease to be outstanding or otherwise cease to be Registrable Securities (the
“Effectiveness Period”).

          (c) Notwithstanding any other provisions hereof, the Company shall use its reasonable best
efforts to provide that (i) any Shelf Registration Statement and any amendment thereto and any
Prospectus forming part thereof and any supplement thereto complies in all material respects with
the 1933 Act and the rules and regulations thereunder, (ii) any Shelf Registration Statement and
any amendment thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading and (iii) any Prospectus forming part of any Shelf
Registration Statement, and any supplement to such Prospectus (as amended or supplemented from time
to time), does not include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading.

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          (d) Notwithstanding any other provision hereof, no Holder of Registrable Securities may
include any of its Registrable Securities in a Shelf Registration Statement pursuant to this
Agreement unless the Holder furnishes to the Company a fully completed notice and questionnaire in
the form attached as Annex A to the Offering Memorandum (the “Questionnaire”) and such
other information in writing as the Company may reasonably request in writing for use in connection
with such Shelf Registration Statement or Prospectus included therein and in any application to be
filed with or under state securities laws. At least 30 days prior to the filing of a Shelf
Registration Statement, the Company will provide notice to the Holders (by press release issued
through a reputable national newswire service) of its intention to file such Shelf Registration
Statement. In order to be named as a selling securityholder in the Prospectus at the time of
effectiveness of a Shelf Registration Statement, each Holder must, before the filing of such Shelf
Registration Statement and no later than the 20th day after the date of the issuance by the Company
of a press release announcing the Company’s intention to file, furnish the completed Questionnaire
and such other information that the Company may reasonably request in writing, if any, to the
Company in writing and the Company shall include the information from the completed Questionnaire
and such other information, if any, in such Shelf Registration Statement and the Prospectus in a
manner so that upon effectiveness of such Shelf Registration Statement the Holder will be permitted
to deliver the Prospectus to purchasers of the Holder’s Registrable Securities. From and after the
date that the Shelf Registration Statement becomes effective, upon receipt of a completed
Questionnaire and such other information that the Company may reasonably request in writing, if
any, the Company will use its reasonable best efforts to file within 20 business days any
amendments or supplements to the Shelf Registration Statement necessary for such Holder to be named
as a selling securityholder in the Prospectus contained therein to permit such Holder to deliver
the Prospectus to purchasers of the Holder’s Securities (subject to the Company’s right to suspend
any Shelf Registration Statement as described in Section 2.5 below); provided, however, that the
Company shall not be required to file more than one post-effective amendment in any calendar
quarter for all such Holders. If a post-effective amendment is required to be filed, the Company
shall use its reasonable best efforts to have such post-effective amendment declared effective by
the SEC, if necessary, as promptly as practicable after filing thereof, but in any event prior to
the end of the Effectiveness Period. Holders that do not deliver a completed written Questionnaire
and such other information, as provided for in this Section 2.1(d), will not be named as selling
securityholders in the Prospectus. Each Holder named as a selling securityholder in the Prospectus
agrees to promptly furnish to the Company all information required to be disclosed in order to make
information previously furnished to the Company by the Holder not materially misleading and any
other information regarding such Holder and the distribution of such Holder’s Registrable
Securities as the Company may from time to time reasonably request in writing.

          (e) Each Holder agrees not to sell any Registrable Securities pursuant to a Shelf Registration
Statement without delivering, or causing to be delivered, a Prospectus to the purchaser thereof to
the extent required by law and, following termination of the Effectiveness Period, to notify the
Company, within ten days of a written request by the Company, of the amount of Registrable
Securities sold pursuant to such Shelf Registration Statement and, in the absence of a response,
the Company may assume that all of such Holder’s Registrable Securities have been so sold; provided
that the Company shall use reasonable best efforts to confirm that all of such Holder’s Registrable
Securities have been so sold prior to making such assumption.

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          (f) The Company represents and agrees that, unless it obtains the prior consent of the
Majority Holders of the Registrable Securities that are registered under the Shelf Registration
Statement at such time or the approval of the counsel for the Holders of such Registrable
Securities or the consent of the managing underwriter in connection with any underwritten offering
of Registrable Securities, and each Holder represents and agrees that, unless it obtains the prior
consent of the Company and any such underwriter, it will not make any offer relating to the
Securities that would constitute an “issuer free writing prospectus,” as defined in Rule 433 under
the 1933 Act (an “Issuer Free Writing Prospectus”), or that would otherwise constitute a
“free writing prospectus,” as defined in Rule 405 under the 1933 Act, required to be filed with the
SEC. The Company represents that any Issuer Free Writing Prospectus will not include any
information that conflicts with the information contained in a Shelf Registration Statement or
Prospectus and that any Issuer Free Writing Prospectus, when taken together with the information in
the Shelf Registration Statement and the Prospectus, will not include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading.

     The Company will not permit any securities other than Registrable Securities to be included in
a Shelf Registration Statement. The Company agrees to supplement or amend a Shelf Registration
Statement if required by the rules, regulations or instructions applicable to the registration form
used by the Company if required by the 1933 Act, or to the extent the Company does not reasonably
object, as reasonably requested in writing by the Initial Purchasers with respect to information
relating to the Initial Purchasers or by the Trustee on behalf of the Holders with respect to
information relating to the Holders, and to furnish to the Holders of Registrable Securities that
are covered under such Shelf Registration Statement copies of any such supplement or amendment
promptly after its being used or filed with the SEC in such amounts as they may reasonably request.

     2.2 Expenses. The Company shall pay all Registration Expenses in connection with the
registration pursuant to Section 2.1. Each Holder shall pay all underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of such Holder’s
Registrable Securities pursuant to a Shelf Registration Statement.

     2.3 Effectiveness. The Company will be deemed not to have used its reasonable best
efforts to cause a Shelf Registration Statement to become, or to remain, effective during the
requisite period (subject to Section 2.5) if the Company voluntarily takes any action that would,
or omits to take any action which omission would, result in any such Shelf Registration Statement
not becoming effective or in the Holders of Registrable Securities covered thereby not being able
to offer and sell such Registrable Securities during that period as and to the extent contemplated
hereby, unless such action is required by applicable law.

     2.4 Interest. In the event that (a) a Shelf Registration Statement is not filed with
the SEC on or before the 90th calendar day following the Closing Date, (b) a Shelf
Registration Statement has not become effective on or prior to the 180th calendar day
following the Closing Date, (c) after effectiveness, subject to Section 2.5, a Shelf Registration
Statement ceases to be effective or fails to be usable by the Holders without being succeeded
within seven business days by a post-effective amendment or a report filed with the SEC pursuant to
the 1934 Act that cures

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the failure to be effective or usable, or (d) the Prospectus is unusable by the Holders for
any reason, and the number of days for which the Shelf Registration Statement shall not be usable
exceeds the Suspension Period (as defined in Section 2.5) (each such event being a
“Registration Default”), additional interest (“Additional Interest”) will accrue at
a rate per annum of one-quarter of one percent (0.25%) of the principal amount of the Securities
for the first 90-day period following the Registration Default, and thereafter at a rate per annum
of one-half of one percent (0.50%) of the principal amount of the Securities; provided that in no
event shall Additional Interest accrue at a rate per annum exceeding one half of one percent
(0.50%) of the issue price of the Securities; provided further that no Additional Interest shall
accrue after the second anniversary of the Closing Date. Upon the cure of all Registration
Defaults then continuing, the accrual of Additional Interest will automatically cease and the
interest rate borne by the Securities will revert to the original interest rate at such time.
Additional Interest shall be computed based on the actual number of days elapsed in each 90-day
period in which the Shelf Registration Statement or the Prospectus is not effective or is unusable.
Holders who have converted Securities into Common Stock will not be entitled to receive any
Additional Interest with respect to such Common Stock or the issue price of the Securities
converted.

     The Company shall notify the Trustee within five business days after each and every date on
which an event occurs in respect of which Additional Interest is required to be paid. Additional
Interest shall be paid by depositing with the Trustee, in trust, for the benefit of the Holders of
Registrable Securities, on or before the applicable semiannual interest payment date, in
immediately available funds in sums sufficient to pay the Additional Interest then due. The
Additional Interest due shall be payable in arrears on each interest payment date to the record
Holder of Registrable Securities entitled to receive the interest payment to be paid on such date
as set forth in the Indenture. Each obligation to pay Additional Interest shall be deemed to
accrue from and including the day following the Registration Default to but excluding the day on
which the Registration Default is cured.

     A Registration Default under clause (a) above shall be cured on the date that a Registration
Statement is filed with the SEC. A Registration Default under clause (b) above shall be cured on
the date that a Shelf Registration Statement is declared effective by the SEC or deemed to become
automatically effective under the 1933 Act. A Registration Default under clauses (c) or (d) above
shall be cured on the date an amended Shelf Registration Statement is declared effective by the SEC
or deemed to become automatically effective under the 1933 Act, or the Company otherwise declares
the Shelf Registration Statement and the Prospectus useable, as applicable. The Company will have
no liabilities for monetary damages other than the Additional Interest with respect to any
Registration Default.

     The parties hereto agree that the Additional Interest provided for in this Section 2.4
constitutes a reasonable estimate of the damages that may be incurred by Holders of Registrable
Securities and does not constitute a penalty.

     2.5 Suspension. Notwithstanding any other provision hereof, the Company may suspend
the use of any Prospectus, without incurring or accruing any obligation to pay Additional Interest
pursuant to Section 2.4 or being deemed in violation of any other provision hereof, for a period
not to exceed 30 calendar days in any three-month period, or an aggregate of 90 calendar days in
any twelve-month period, (each, a “Suspension Period”) if the Board of

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Directors of the Company shall have determined in good faith that because of valid business
reasons (not including avoidance of the Company’s obligations hereunder), including without
limitation proposed or pending corporate developments and similar events or because of filings with
the SEC, it is in the best interests of the Company to suspend such use, and prior to suspending
such use the Company provides the Holders with written notice of such suspension, which notice need
not specify the nature of the event giving rise to such suspension. Each Holder shall keep
confidential any communications received by it from the Company regarding the suspension of the use
of the Prospectus, except as required by applicable law.

     3. Registration Procedures.

     In connection with the obligations of the Company with respect to the Shelf Registration, the
Company shall, subject to the rights of the Company to invoke and maintain a Suspension Period in
accordance with Section 2.5 without being in violation of any of the provisions hereunder:

          (a) prepare and file with the SEC a Shelf Registration Statement, within the relevant time
period specified in Section 2, on the appropriate form under the 1933 Act, which form (i) shall be
selected by the Company, (ii) shall be available for the sale of the Registrable Securities by the
selling Holders thereof, (iii) shall comply as to form in all material respects with the
requirements of the applicable form and include or incorporate by reference all financial
statements required by the SEC to be filed therewith or incorporated by reference therein, and (iv)
shall comply in all respects with the applicable requirements of Regulation S-T under the 1933 Act,
if any, and use reasonable best efforts to cause such Shelf Registration Statement to become
effective and remain effective in accordance with Section 2;

          (b) prepare and file with the SEC such amendments and post-effective amendments to a Shelf
Registration Statement as may be necessary under applicable law to keep such Shelf Registration
Statement effective for the Effectiveness Period, subject to Section 2.5; and cause each Prospectus
to be supplemented by any required prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and comply during
the Effectiveness Period with the provisions of the 1933 Act, the 1934 Act and the rules and
regulations thereunder required to enable the disposition of all Registrable Securities covered by
a Shelf Registration Statement in accordance with the intended method or methods of distribution by
the selling Holders thereof; provided, that in no event will such method(s) of distribution take
the form of an underwritten offering of the Registrable Securities without the prior agreement of
the Company, which may be withheld in its sole discretion;

          (c) (i) notify each Holder of Registrable Securities of the filing of a Shelf Registration
Statement with respect to the Registrable Securities; (ii) furnish to each Holder of Registrable
Securities that has provided the information required by Section 2.1(d) and to each underwriter of
an underwritten offering of Registrable Securities, if any, without charge, as many copies of each
Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such
other documents as such Holder or underwriter may reasonably request in writing, including
financial statements and schedules and, if the Holder so requests, all exhibits in order to
facilitate the unrestricted sale or other disposition of the Registrable

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Securities; and (iii) subject to Section 2.5 and to any notice by the Company in accordance
with Section 3(e) hereof of the existence of any fact of the kind described in Sections 3(e)(ii),
(iii), (iv), (v) and (vi), hereby consent to the use of the Prospectus or any amendment or
supplement thereto by each of the selling Holders of Registrable Securities that has provided the
information required by Section 2.1(d) in connection with the offering and sale of the Registrable
Securities;

          (d) use reasonable best efforts to register or qualify the Registrable Securities under all
applicable state securities or “blue sky” laws of such jurisdictions as any Holder of Registrable
Securities covered by a Shelf Registration Statement and each underwriter of an underwritten
offering of Registrable Securities shall reasonably request, and do any and all other acts and
things which may be reasonably necessary or advisable to enable each such Holder and underwriter to
consummate the disposition in each such jurisdiction of such Registrable Securities owned by such
Holder; provided, however, that the Company shall not be required to (i) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(d), or (ii) take any action which would subject it to
general service of process or taxation in any such jurisdiction where it is not then so subject;

          (e) notify promptly each Holder of Registrable Securities under a Shelf Registration Statement
that has provided the information required by Section 2.1(d) and, if requested by such Holder,
confirm such advice in writing promptly (i) when a Shelf Registration Statement has become
effective and when any post-effective amendments thereto have become effective, (ii) of any request
by the SEC or any state securities authority for post-effective amendments and supplements to a
Shelf Registration Statement and Prospectus or for additional information relating thereto after a
Shelf Registration Statement has become effective, (iii) of the issuance by the SEC or any state
securities authority of any stop order suspending the effectiveness of a Shelf Registration
Statement or the initiation of any proceedings for that purpose, (iv) of the happening of any event
or the discovery of any facts during the period a Shelf Registration Statement is effective which
makes any statement made in such Shelf Registration Statement or the related Prospectus untrue in
any material respect or which requires the making of any changes in such Shelf Registration
Statement or Prospectus in order to make the statements therein (in the case of the Prospectus in
light of the circumstances under which they were made) not misleading, (v) of the receipt by the
Company of any notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such
purpose and (vi) of any determination by the Company that a post-effective amendment to a Shelf
Registration Statement would be appropriate, other than a post-effective amendment solely to add
selling Holders;

          (f) furnish to each Initial Purchaser on behalf of the Holders of Registrable Securities and
to special counsel to the Initial Purchasers (i) copies of any comment letters received from the
SEC with respect to a Shelf Registration Statement or any documents incorporated therein and (ii)
any other request by the SEC or any state securities authority for amendments or supplements to a
Shelf Registration Statement and Prospectus or for additional information with respect to a Shelf
Registration Statement and Prospectus;

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          (g) use reasonable best efforts to obtain the withdrawal of any order suspending the
effectiveness of a Shelf Registration Statement at the earliest possible moment and provide prompt
notice to each Holder of the withdrawal of such order;

          (h) furnish, upon written request, to each Holder of Registrable Securities that has provided
the information required by Section 2.1(d), and each underwriter, if any, without charge, at least
one conformed copy of each Shelf Registration Statement and any post-effective amendment thereto,
including financial statements and schedules (without documents incorporated therein by reference
and all exhibits thereto, unless requested);

          (i) if electronic global certificates for the Registrable Securities are not then available,
cooperate with the selling Holders of Registrable Securities to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold and not bearing any
restrictive legends (other than as required by applicable law); and enable such Registrable
Securities to be in such denominations (consistent with the provisions of the Indenture) and
registered in such names as the selling Holders or the underwriters, if any, may reasonably request
at least three business days prior to the closing of any sale of Registrable Securities;

          (j) upon the occurrence of any event or the discovery of any facts, each as contemplated by
Sections 3(e)(ii), (iii), (iv), (v) and (vi) hereof, as promptly as practicable after the
occurrence of such an event, use reasonable best efforts to prepare a supplement or post-effective
amendment to a Shelf Registration Statement or the related Prospectus or any document incorporated
therein by reference or file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Securities, such Prospectus will not contain at the time of such
delivery any untrue statement of a material fact or omit to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading or
will remain so qualified. At such time as such public disclosure is otherwise made or the Company
determines that such disclosure is not necessary, in each case to correct any misstatement of a
material fact or to include any omitted material fact, the Company agrees promptly to notify each
Holder of Registrable Securities covered by such Shelf Registration Statement of such determination
and to furnish each Holder such number of copies of the Prospectus as amended or supplemented, as
such Holder may reasonably request;

          (k) no less than three business days prior to the filing of any Shelf Registration Statement,
any Prospectus, any amendment to a Shelf Registration Statement or amendment or supplement to a
Prospectus (other than amendments and supplements that do nothing more than name Holders and
provide information with respect thereto and other than filings by the Company of 1934 Act
reports), provide copies of such document to Merrill Lynch on behalf of such Holders, and make
representatives of the Company, as shall be reasonably requested by special counsel to the Holders
of Registrable Securities or Merrill Lynch on behalf of such Holders, available for discussion of
such document;

          (l) obtain CUSIP numbers for all Registrable Securities not later than the effective date of a
Shelf Registration Statement and provide the Trustee with printed certificates for the Registrable
Securities in a form eligible for deposit with the Depositary;

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          (m) (i) cause the Indenture to be qualified under the 1939 Act in connection with the
registration of the Registrable Securities, (ii) cooperate with the Trustee and the Holders to
effect such changes to the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the 1939 Act, and (iii) execute, and use reasonable best efforts to
cause the Trustee to execute, all documents as may be required to effect such changes, and all
other forms and documents required to be filed with the SEC to enable the Indenture to be so
qualified in a timely manner;

          (n) enter into such customary agreements (including, if requested, an underwriting agreement
in customary form) and take all other customary and appropriate actions, if any, in order to
expedite or facilitate the disposition of such Registrable Securities, including, but not limited
to:

     (i) obtain opinions of counsel to the Company and updates thereof addressed to each
selling Holder and the underwriters, if any, covering the matters set forth in the opinions
of such counsel delivered at the Closing Date;

     (ii) obtain “comfort” letters and updates thereof from the Company’s independent
certified public accountants (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the Company for
which financial statements are, or are required to be, included in a Shelf Registration
Statement) addressed to the underwriters, if any, and use reasonable best efforts to have
such letter addressed to the selling Holders of Registrable Securities (to the extent
consistent with Statement on Auditing Standards No. 72 of the American Institute of
Certified Public Accounts), such letters substantially in the form and covering the matters
covered in the comfort letter delivered on the Closing Date;

     (iii) if an underwriting agreement is entered into, cause the same to set forth
indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 with respect to the underwriters and all
other parties to be indemnified pursuant to said Section or, at the request of any
underwriters, in the form customarily provided to such underwriters in similar types of
transactions; and

     (iv) deliver such documents and certificates as may be reasonably requested and as are
customarily delivered in similar offerings to the Majority Holders of the Registrable
Securities being sold and the managing underwriters, if any.

The above shall be done only in connection with any underwritten offering of Registrable Securities
using such Shelf Registration Statement pursuant to an underwriting or similar agreement as and to
the extent required thereunder, and as reasonably requested by any of the parties thereto;

          (o) at a reasonable time prior to filing a Shelf Registration Statement, any Prospectus
forming a part thereof, any amendment to such Shelf Registration Statement or amendment or
supplement to such Prospectus (other than amendments and supplements that do nothing more than name
Holders and provide information with respect thereto and other than

11

 

filings by the Company under the 1934 Act), (i) provide copies of such document to the Holders
of Registrable Securities that have provided the information required by Section 2.1(d), to the
Initial Purchasers, to special counsel for the Holders and to the underwriter or underwriters of an
underwritten offering of Registrable Securities, if any, (ii) make such changes in any such
document prior to the filing thereof as the Initial Purchasers, the special counsel to the Holders
or the underwriter or underwriters reasonably agree should be included therein and provide to the
Company in writing for inclusion therein within three business days of delivery of such copies,
(iii) if requested by any selling Holder of Registrable Securities that has provided the
information required by Section 2.1(d), not file any such document in a form (A) to which the
Majority Holders, the Initial Purchasers on behalf of the Holders of Registrable Securities,
special counsel for the Holders of Registrable Securities or any underwriter shall not have
previously been advised and furnished a copy of or (B) to which the Majority Holders, the Initial
Purchasers on behalf of the Holders of Registrable Securities, special counsel to the Holders of
Registrable Securities or any underwriter shall reasonably object within three business days of
delivery of such copies, and (iv) make the representatives of the Company available for discussion
of such document as shall be reasonably requested in writing by the Holders of Registrable
Securities, the Initial Purchasers on behalf of such Holders, special counsel for the Holders of
Registrable Securities or any underwriter; provided, however, that the foregoing discussion shall
be coordinated on behalf of the parties entitled thereto by the special counsel to the Holders;

          (p) subject to Section 2.1(d), if requested by any Holder of Registrable Securities that has
provided the information required by Section 2.1(d) or the underwriters, if any, incorporate in a
Shelf Registration Statement or Prospectus, pursuant to a supplement or post-effective amendment if
necessary, such information as such selling Holder or underwriter, if any, may reasonable request
in writing to have included therein with respect to the name or names of such selling Holder, the
number of shares of Common Stock or principal amount of Securities owned by such Holder, the plan
of distribution of the Registrable Securities (as required by Item 508 of Regulation S-K), the
principal amount of Securities or number of shares of Common Stock being sold, the purchase price
being paid therefor, and any other terms of the offering of the Registrable Securities to be sold
in such offering;

          (q) use reasonable best efforts to cause all Registrable Securities to be listed on any
securities exchange or inter-dealer quotation system on which similar debt securities issued by the
Company are then listed if requested by the Majority Holders, or if requested by the underwriter or
underwriters of an underwritten offering of Registrable Securities, if any;

          (r) use reasonable best efforts to cause the Registrable Securities to be rated by the
appropriate rating agencies if requested by the underwriter or underwriters of an underwritten
public offering of Registrable Securities, if any;

          (s) otherwise comply with all applicable rules and regulations of the SEC and make available
to its security holders, as soon as reasonably practicable, an earnings statement covering at least
12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
thereunder; and

          (t) cooperate and assist in any filings required to be made with the NASD and in the
performance of any due diligence investigation by any underwriter and its counsel

12

 

(including any “qualified independent underwriter” that is required to be retained in
accordance with the rules and regulations of the NASD).

     Without limiting the provisions of Section 2.1(d), the Company may (as a condition to such
Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to
furnish to the Company such information regarding the Holder and the proposed distribution by such
Holder of such Registrable Securities as the Company may from time to time reasonably request in
writing.

     Each Holder agrees that, upon receipt of any notice from the Company of the happening of any
event or the discovery of any facts, each of the kind described in Section 3(e)(ii), (iii), (iv),
(v) or (vi) hereof, such Holder will forthwith discontinue disposition of Registrable Securities
pursuant to the Prospectus included in the Shelf Registration Statement until such Holder’s receipt
of the copies of the supplemented or amended Prospectus contemplated by Section 3(j) or written
notice from the Company that such Shelf Registration Statement is again effective and no amendment
or supplement is needed, and, if so directed by the Company, such Holder will deliver to the
Company (at its expense) all copies in such Holder’s possession, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Registrable Securities current at
the time of receipt of such notice.

     If any of the Registrable Securities covered by any Shelf Registration Statement are to be
sold in an underwritten offering, the underwriter or underwriters and manager or managers that will
manage such offering will be selected by the Majority Holders of such Registrable Securities
included in such offering and shall be acceptable to the Company. No Holder of Registrable
Securities may participate in any underwritten registration hereunder unless such Holder (a) agrees
to sell such Holder’s Registrable Securities on the basis provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other
documents required under the terms of such underwriting arrangements.

     4. Indemnification; Contribution.

          (a) The Company agrees to indemnify and hold harmless each Initial Purchaser, each Holder,
each Person who participates as an underwriter, if any (any such Person being an “Underwriter”) and
each Person, if any, who controls any such Holder or Underwriter within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act as follows:

   (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in any Shelf Registration Statement (or any amendment or supplement thereto)
pursuant to which Registrable Securities were registered under the 1933 Act, including all
documents incorporated therein by reference, or the omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the statements therein
not misleading, or arising out of any untrue statement or alleged untrue statement of a
material fact contained in any Prospectus (or any amendment or supplement thereto) or any
Issuer Free Writing Prospectus (or any amendment or supplement thereto) or the omission or
alleged omission therefrom of a material fact

13

 

necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading;

     (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided, that (subject to Section 4(d) below) any
such settlement is effected with the written consent of the Company; and

     (iii) against any and all expense whatsoever, as incurred (including the reasonable
fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under subparagraph
(i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Company by or on behalf of any Holder or Underwriter, if any, expressly for use in a Shelf
Registration Statement (or any amendment thereto), any Prospectus (or any amendment or supplement
thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto).

          (b) Each Holder, severally, but not jointly, agrees to indemnify and hold harmless the
Company, each Initial Purchaser, each Underwriter, if any, and the other selling Holders, and each
of their respective directors and officers, and each Person, if any, who controls the Company, any
of the Initial Purchasers, any Underwriter or any other selling Holder within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all loss, liability,
claim, damage and expense described in the indemnity contained in Section 4(a), as incurred, but
only with respect to untrue statements or omissions, or alleged untrue statements or omissions,
made in any Shelf Registration Statement (or any amendment thereto) or any Prospectus included
therein (or any amendment or supplement thereto) in reliance upon and in conformity with written
information with respect to such Holder furnished to the Company by or on behalf of such Holder
expressly for use in such Shelf Registration Statement (or any amendment thereto) or such
Prospectus (or any amendment or supplement thereto); provided, however, that no such Holder shall
be liable for any claims hereunder in excess of the amount of net proceeds received by such Holder
from the sale of Registrable Securities pursuant to such Shelf Registration Statement.

          (c) Each indemnified party shall give notice as promptly as reasonably practicable to each
indemnifying party of any action or proceeding commenced against it in respect of which indemnity
may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not

14

 

materially prejudiced as a result thereof and in any event shall not relieve it from any
liability which it may have otherwise than on account of this indemnity agreement. An indemnifying
party may participate at its own expense in the defense of such action; provided, however, that
counsel to the indemnifying party shall not (except with the consent of the indemnified party) also
be counsel to the indemnified party. In no event shall the indemnifying party or parties be liable
for the fees and expenses of more than one counsel (in addition to any local counsel) separate from
their own counsel for all indemnified parties in connection with any one action or separate but
similar or related actions in the same jurisdiction arising out of the same general allegations or
circumstances. No indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 4 (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (A) includes an unconditional release of
each indemnified party from all liability arising out of such litigation, investigation, proceeding
or claim and (B) does not include a statement as to or an admission of fault, culpability or a
failure to act by or on behalf of any indemnified party.

          (d) If at any time an indemnified party shall have requested an indemnifying party to
reimburse the indemnified party for fees and expenses of counsel, such indemnifying party agrees
that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt
by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have
received notice of the terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.

          (e) If the indemnification provided for in this Section 4 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the Company on the one hand and the Holders and the Initial Purchasers on the other hand in
connection with the statements or omissions which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations.

     The relative fault of the Company on the one hand and the Holders and the Initial Purchasers
on the other hand shall be determined by reference to, among other things, whether any such untrue
or alleged untrue statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company, or by the Holders or the Initial Purchasers
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

     The Company, the Holders and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or by
any other method of allocation (even if the Initial Purchasers were treated as one entity for such
purposes) which does not take account of the equitable considerations referred to above in this

15

 

Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 4 shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in investigating, preparing
or defending against any litigation, or any investigation or proceeding by any governmental agency
or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged
untrue statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 4, none of the Initial Purchasers nor any
Holder shall be required to contribute any amount in excess of the amount by which the total price
at which the Securities sold by it exceeds the amount of any damages which such Initial Purchaser
or such Holder have 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
1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section 4, each Person, if any, who controls any of the Initial
Purchasers or any Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act shall have the same rights to contribution as the Initial Purchaser or Holder, and each
director of the Company, and each Person, if any, who controls the Company within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same rights to contribution
as the Company. The obligations of the Company, the Initial Purchasers and the Holders pursuant to
this Section 4 shall be in addition to any liability that such party may otherwise have.

     5. Miscellaneous.

     5.1 Rule 144 and Rule 144A. For so long as the Company is subject to the reporting
requirements of Section 13 or 15(d) of the 1934 Act, the Company covenants that it will file the
reports required to be filed by it under Section 13 of 15(d) of the 1934 Act and the rules and
regulations adopted by the SEC thereunder. If the Company ceases to be so required to file such
reports, the Company covenants that it will upon the request of any Holder of Registrable
Securities (a) make publicly available such information as is necessary to permit sales pursuant to
Rule 144 under the 1933 Act, (b) deliver such information to a prospective purchaser as is
necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will take such further
action as any Holder of Registrable Securities may reasonably request for such purpose, and (c)
take such further action that is reasonable in the circumstances, in each case, to the extent
required from time to time to enable such Holder to sell its Registrable Securities without
registration under the 1933 Act within the limitation of the exemptions provided by (i) Rule 144
under the 1933 Act, as such Rule may be amended from time to time, (ii) Rule 144A under the 1933
Act, as such Rule may be amended from time to time, or (iii) any similar rules or regulations
hereafter adopted by the SEC. Upon the request of any Holder of Registrable Securities, the
Company will deliver to such Holder a written statement as to whether it has complied with such
requirements.

16

 

     5.2 No Inconsistent Agreements. The Company has not entered into and the Company
shall not, after the date of this Agreement, enter into any agreement which is inconsistent with
the rights granted to the Holders of Registrable Securities in this Agreement or otherwise
conflicts with the provisions hereof. The rights granted to the Holders hereunder do not and will
not for the term of this Agreement in any way conflict with the rights granted to the holders of
any of the Company’s other issued and outstanding securities under any such agreements.

     5.3 No Adverse Actions Affecting Registration Rights. Subject to the rights of the
Company to invoke and maintain a Suspension Period, the Company shall not, directly or indirectly,
intentionally take any action with respect to the Registrable Securities as a class that would
adversely affect the ability of the Holders of Registrable Securities to include such Registrable
Securities in a registration undertaken pursuant to this Agreement.

     5.4 Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given unless the Company has obtained the
written consent of the Majority Holders of the Registrable Securities affected by such amendment,
modification, supplement, waiver or departure. Notwithstanding the foregoing, this Agreement may
be amended by a written agreement between the Company and the Initial Purchasers, without the
consent of the Holders of the Registrable Securities, in order to cure any ambiguity or to correct
or supplement any provision contained herein, provided that no such amendment shall adversely
affect the interest of the Holders of Registrable Securities. Each Holder of Registrable
Securities outstanding at the time of any amendment, modification, waiver or consent pursuant to
this Section 5.4, shall be bound by such amendment, modification, waiver or consent, whether or not
any notice or writing indicating such amendment, modification, waiver or consent is delivered to
such Holder.

     5.5 Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail, facsimile, or any courier
guaranteeing overnight delivery (a) if to a Holder, at the most current address given by such
Holder to the Company in a Questionnaire or by means of a notice given in accordance with the
provisions of this Section 5.5, which address initially is the address set forth in the Purchase
Agreement with respect to the Initial Purchasers; and (b) if to the Company, initially at the
Company’s address set forth in the Purchase Agreement, and thereafter at such other address of
which notice is given in accordance with the provisions of this Section 5.5.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; two business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if sent by facsimile; and on the next
business day if timely delivered to an overnight courier.

     Copies of all such notices, demands, or other communications shall be concurrently delivered
by the person giving the same to the Trustee under the Indenture, at the address specified in the
Indenture.

17

 

     5.6 Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors, assigns and transferees of each of the parties, including, without
limitation and without the need for an express assignment, subsequent Holders; provided, that
nothing herein shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or the Indenture. If
any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by
operation of law or otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities such person shall be
conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of
this Agreement, including the restrictions on resale set forth in this Agreement and, if
applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits
hereof. The Initial Purchasers (in their capacity as Initial Purchasers) shall have no liability
or obligation to the Company with respect to any failure by a Holder, other than the Initial
Purchasers, to comply with, or breach by any Holder, other than the Initial Purchasers, of, any of
the obligations of such Holder under this Agreement.

     5.7 Third Party Beneficiaries. The Initial Purchasers (even if the Initial Purchasers
are not Holders of Registrable Securities) shall be a third party beneficiary to the agreements
made hereunder between the Company, on the one hand, and the Holders, on the other hand, and shall
have the right to enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder. Each Holder of
Registrable Securities shall be a third party beneficiary to the agreements made hereunder between
the Company, on the one hand, and the Initial Purchaser, on the other hand, and shall have the
right to enforce such agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights hereunder.

     5.8 Specific Enforcement. Without limiting the remedies available to the Initial
Purchasers and the Holders, the Company acknowledges that any failure by the Company to comply with
its obligations under Section 2.1 may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it may not be possible
to measure damages for such injuries precisely and that, in the event of any such failure, the
Initial Purchasers or any Holder may seek such relief as may be required to specifically enforce
the Company’s obligations under Section 2.1 hereof.

     5.9 Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and the same agreement.

     5.10 Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     5.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

18

 

     5.12 Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable,
the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

     5.13 Entire Agreement. This Agreement is intended by the parties as a final
expression of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the registration rights granted by the Company with
respect to the Registrable Securities. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter.

19

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	ANIXTER INTERNATIONAL INC.

 	 
	 	By:  	/s/ Rod Shoemaker	 
	 	 	Name:  	Rod Shoemaker	 
	 	 	Title:  	VP — Treasurer	 
	 

	 	 	 
	CONFIRMED AND ACCEPTED,

  as of the date first above written:
	 
	 	 
	MERRILL LYNCH, PIERCE, FENNER & SMITH
	INCORPORATED

	 
	 	 
	By:
	 	/s/ Joe McIntosh
	 

	 	 
	 

	 	     Authorized Signatory
	 
	 	 
	For itself and as representative of the other Initial
Purchasers named on Schedule A to the Purchase
Agreement.exv10w1

 

Exhibit 10.1

 

 

ANIXTER INTERNATIONAL INC.

(a Delaware corporation)

$275,000,000 1.00% Senior Convertible Notes due 2013

PURCHASE AGREEMENT

Dated: February 12, 2007

 

 

 

 

ANIXTER INTERNATIONAL INC.

(a Delaware corporation)

$275,000,000

Senior Convertible Notes due 2013

PURCHASE AGREEMENT

February 12, 2007

MERRILL LYNCH & CO.

Merrill Lynch, Pierce, Fenner & Smith

                Incorporated

Banc of America Securities LLC

J.P. Morgan Securities Inc.

Wachovia Capital Markets, LLC

c/o Merrill Lynch, Pierce, Fenner & Smith

               Incorporated

4 World Financial Center

New York, New York 10080

Ladies and Gentlemen:

     Anixter International Inc., a Delaware corporation (the “Company”), confirms its agreement
with Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) and
each of the other Initial Purchasers named in Schedule A hereto (collectively, the “Initial
Purchasers,” which term shall also include any initial purchaser substituted as provided in Section
11 hereof), for whom Merrill Lynch is acting as representative, with respect to (i) the issue and
sale by the Company and the purchase by the Initial Purchasers, acting severally and not jointly,
of the respective principal amounts set forth in said Schedule A of $275,000,000 aggregate
principal amount of the Company’s Senior Convertible Notes due 2013 (the “Initial Securities”) and
(ii) the grant by the Company to the Initial Purchasers of the option described in Section 2(b)
hereof to purchase all or any part of an additional $25,000,000 aggregate principal amount of the
Company’s Senior Convertible Notes due 2013 to cover overallotments, if any (the “Option
Securities” and, together with the Initial Securities, the “Securities”). The Securities are to be
issued pursuant to an indenture to be dated as of February 16, 2007 (the “Indenture”) between the
Company and The Bank of New York Trust Company, N.A., as trustee (the “Trustee”).

     The Securities are convertible, subject to certain conditions as described in the Final
Offering Memorandum (as described below), prior to maturity (unless previously redeemed or
otherwise purchased) into cash and shares of common stock, par value $1.00 per share, of the
Company (the “Common Stock”) in accordance with the terms of the Securities and the Indenture, at
the initial conversion rate of 15.7530 shares of Common Stock per $1,000 principal amount of
Securities. Securities issued in book-entry form will be issued to Cede & Co. as nominee of The
Depository Trust Company (“DTC”).

 

 

     The Company understands that the Initial Purchasers propose to make an offering of the
Securities on the terms and in the manner set forth herein and agrees that the Initial Purchasers
may resell, subject to the conditions set forth herein, all or a portion of the Securities to
purchasers (“Subsequent Purchasers”) at any time after this Agreement has been executed and
delivered. The Securities are to be offered and resold through the Initial Purchasers without
being registered under the Securities Act of 1933, as amended (the “1933 Act”), in reliance upon
exemptions therefrom. Pursuant to the terms of the Securities and the Indenture, investors that
acquire Securities and any shares of Common Stock acquired in connection with any conversion of
Securities (solely for purposes of this paragraph, “Securities”) may only resell or otherwise
transfer such Securities if such Securities are hereafter registered under the 1933 Act or if an
exemption from the registration requirements of the 1933 Act is available (including the exemption
afforded by Rule 144A (“Rule 144A”) of the rules and regulations promulgated under the 1933 Act by
the Securities and Exchange Commission (the “Commission”). On or prior to the Initial Closing
Time, the Company will enter into a registration rights agreement with the Initial Purchasers (the
“Registration Rights Agreement”) pursuant to which the Company will be required to file and use
reasonable best efforts to cause to become effective a registration statement under the 1933 Act to
register resales of the Securities.

     The Company has (a) prepared and delivered to each Initial Purchaser copies of (i) a
preliminary offering memorandum dated February 12, 2007 and (ii) a pricing term sheet dated
February 12, 2007, attached hereto as Schedule B, which includes the pricing terms and other
information with respect to the Securities and other matters not included in the Preliminary
Offering Memorandum (as defined below) (the “Pricing Term Sheet”) and (b) has prepared and will
deliver to each Initial Purchaser, as promptly as practicable prior to the Initial Closing Time,
copies of a final offering memorandum dated February 12, 2007 (the “Final Offering Memorandum”),
each for use by such Initial Purchaser in connection with its solicitation of purchases of, or
offering of, the Securities. “Offering Memorandum” means, with respect to any date or time
referred to in this Agreement, the most recent offering memorandum (whether the Preliminary
Offering Memorandum or the Final Offering Memorandum, or any amendment or supplement to either such
document), including exhibits thereto and any documents incorporated therein by reference, which
has been prepared and delivered by the Company to the Initial Purchasers in connection with their
solicitation of purchases of, or offering of, the Securities.

     All references in this Agreement to financial statements and schedules and other information
which is “contained,” “included,” “stated” or described in the Offering Memorandum (or other
references of like import) shall be deemed to mean and include all such financial statements and
schedules and other information which are incorporated by reference in the Offering Memorandum; and
all references in this Agreement to amendments or supplements to the Offering Memorandum shall be
deemed to mean and include the filing of any document under the Securities Exchange Act of 1934, as
amended (the “1934 Act”), that is incorporated by reference in the Offering Memorandum.

     The preliminary offering memorandum dated February 12, 2007, as amended and supplemented
immediately prior to the Applicable Time (as defined below), including any documents filed under
the 1934 Act prior to the Applicable Time and incorporated by reference therein, is referred to
herein as the “Preliminary Offering Memorandum,” and the Preliminary Offering Memorandum together
with the Pricing Term Sheet are collectively referred to herein as the “Disclosure Package.”
“Applicable Time” means 5:00 P.M. (Eastern Time) on February 12, 2007 or such other time as agreed
by the Company and Merrill Lynch.

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     SECTION 1. Representations and Warranties by the Company.

     (a) Representations and Warranties. The Company represents and warrants to each
Initial Purchaser as of the Applicable Time and as of the Closing Time referred to in Section 2(c)
hereof, and agrees with each Initial Purchaser, as follows:

     (i) Disclosure Package and Final Offering Memorandum. As of the
Applicable Time, neither (x) the Disclosure Package nor (y) any individual Supplemental
Offering Materials (as defined below), when considered together with the Disclosure Package,
included any untrue statement of a material fact or omitted to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

     “Supplemental Offering Materials” means any “written communication” (within the meaning
of the 1933 Act Regulations (as defined below)) prepared by or on behalf of the Company, or
used or referred to by the Company, that constitutes an offer to sell or a solicitation of
an offer to buy the Securities other than the Offering Memorandum or amendments or
supplements thereto (including the Pricing Term Sheet), including, without limitation, any
road show materials relating to the Securities that constitutes such a written
communication.

     As of its issue date and as of the Closing Time, the Final Offering Memorandum will not
include an untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they
were made, not misleading.

     The representation and warranties in this subsection shall not apply to statements in
or omissions from the Disclosure Package or the Final Offering Memorandum made in reliance
upon and in conformity with written information furnished to the Company by any Initial
Purchaser through Merrill Lynch expressly for use therein. The Company has not distributed,
and the Company will not distribute, prior to the later of the Closing Time and the
completion of the Initial Purchasers’ distribution of the Securities, which shall be deemed
to be no later than the Closing Time unless the Company otherwise receives notice from
Merrill Lynch, any offering material in connection with the offering and sale of the
Securities other than the Disclosure Package and the Final Offering Memorandum.

     (ii) Incorporated Documents. The Offering Memorandum as delivered
from time to time shall incorporate by reference the most recent Annual Report of the
Company on Form 10-K filed with the Commission and each Quarterly Report of the Company on
Form 10-Q and each Current Report of the Company on Form 8-K filed with the Commission since
the end of the fiscal year to which such Annual Report relates. The documents incorporated
or deemed to be incorporated by reference in the Offering Memorandum at the time they were
or hereafter are filed with the Commission complied and will comply in all material respects
with the requirements of the 1934 Act and the rules and regulations of the Commission
thereunder (the “1934 Act Regulations”), and, when read together, at the Applicable Time
with the other information in the Disclosure Package, and at the Closing Time with the
Disclosure Package and the Final Offering Memorandum, did not and will not include an untrue
statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading.

     (iii) Independent Accountants. The accountants who certified the
financial statements and supporting schedules included in the Disclosure Package and the
Final Offering Memorandum are independent registered public accountants with respect to the
Company and its

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subsidiaries within the meaning of the 1933 Act and the rules and regulations
thereunder (the “1933 Act Regulations”).

     (iv) Financial Statements. The financial statements, together with
the related schedules and notes, included in the Disclosure Package and the Final Offering
Memorandum present fairly the financial position of the Company and its consolidated
subsidiaries at the dates indicated and the statement of operations, stockholders’ equity
and cash flows of the Company and its consolidated subsidiaries for the periods specified;
said financial statements have been prepared in conformity with generally accepted
accounting principles (“GAAP”) applied on a consistent basis throughout the periods
involved, except as stated therein. The supporting schedules included in the Disclosure
Package and the Final Offering Memorandum present fairly in accordance with GAAP the
information required to be stated therein. The selected financial data and any summary
financial information included in the Disclosure Package and the Final Offering Memorandum
present fairly the information shown therein and have been compiled on a basis consistent
with that of the audited financial statements included in the Disclosure Package and the
Final Offering Memorandum.

     (v) No Material Adverse Change in Business. Since the respective
dates as of which information is given in the Disclosure Package and the Final Offering
Memorandum, except as otherwise stated therein, (A) there has been no material adverse
change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one enterprise, whether
or not arising in the ordinary course of business (a “Material Adverse Effect”), (B) there
have been no transactions entered into by the Company or any of its subsidiaries, other than
those in the ordinary course of business, which are material with respect to the Company and
its subsidiaries considered as one enterprise, and (C) there has been no dividend or
distribution of any kind declared, paid or made by the Company on any class of its capital
stock.

     (vi) Good Standing of the Company. The Company has been duly
organized and is validly existing as a corporation in good standing under the laws of the
State of Delaware and has corporate power and authority to own, lease and operate its
properties and to conduct its business as described in the Disclosure Package and the Final
Offering Memorandum and to enter into and perform its obligations under, or as contemplated
by, this Agreement. The Company is duly qualified as a foreign corporation to transact
business and is in good standing in each other jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or the conduct of
business, except where the failure so to qualify or to be in good standing would not result
in a Material Adverse Effect.

     (vii) Good Standing of Subsidiaries. Each “significant subsidiary”
of the Company (as such term is defined in Rule 1-02 of Regulation S-X) (each a “Designated
Subsidiary” and, collectively, the “Designated Subsidiaries”) has been duly organized and is
validly existing as a corporation in good standing under the laws of the jurisdiction of its
incorporation, has corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Disclosure Package and the Final Offering
Memorandum and is duly qualified as a foreign corporation to transact business and is in
good standing in each jurisdiction in which such qualification is required, whether by
reason of the ownership or leasing of property or the conduct of business, except where the
failure so to qualify or to be in good standing would not result in a Material Adverse
Effect; except as otherwise disclosed in the Disclosure Package and the Final Offering
Memorandum, all of the issued and outstanding capital stock of each Designated Subsidiary
has been duly authorized and validly issued, is fully paid and non-assessable and is owned
by the Company, directly or through subsidiaries, free and clear of any

4

 

security interest, mortgage, pledge, lien, encumbrance, claim or equity; none of the
outstanding shares of capital stock of any Designated Subsidiary was issued in violation of
any preemptive or similar rights of any securityholder of such Designated Subsidiary. The
other subsidiaries of the Company other than Designated Subsidiaries, considered in the
aggregate as a single subsidiary, do not constitute a “significant subsidiary” as defined in
Rule 1-02 of Regulation S-X.

     (viii) Capitalization. The authorized, issued and outstanding
capital stock of the Company is as set forth in the financial statements, including the
schedules and notes, included in the Disclosure Package and the Final Offering Memorandum
(except for subsequent issuances, if any, pursuant to this Agreement, pursuant to
reservations, agreements, employee benefit plans referred to in the Disclosure Package and
the Final Offering Memorandum or pursuant to the exercise of convertible securities or
options referred to in the Disclosure Package and the Final Offering Memorandum). The
            shares of issued and outstanding capital stock of the Company have been duly authorized and
validly issued and are fully paid and non-assessable; none of the outstanding shares of
capital stock of the Company was issued in violation of the preemptive or other similar
rights of any securityholder of the Company.

     (ix) Corporate Power. The Company has full right, power and
authority to execute and deliver this Agreement, the Securities, the Indenture, the
Registration Rights Agreement, the OTC Convertible Note Hedge and the OTC Warrant
Transaction (collectively, the “Transaction Documents”) and to perform its obligations
hereunder and thereunder; and all action required to be taken for the due and proper
authorization, execution and delivery of each of the Transaction Documents and the
consummation of the transactions contemplated thereby has been duly and validly taken.

     (x) Authorization of Agreement. This Agreement has been duly
authorized, executed and delivered by the Company.

     (xi) Authorization and Description of the Indenture. The Indenture
has been duly authorized by the Company and, when executed and delivered by the Company and
the Trustee, will constitute a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers), reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to general
principles of equity (regardless of whether enforcement is considered in a proceeding in
equity or at law). The Indenture will conform in all material respects to the statements
relating thereto contained in the Disclosure Package and the Final Offering Memorandum.

     (xii) Authorization and Description of the Registration Rights
Agreement. The Registration Rights Agreement has been duly authorized by the Company
and, when duly executed and delivered by the Company and the Initial Purchasers, will
constitute a valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency (including, without limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or other similar laws relating to or affecting enforcement of
creditors’ rights generally, by general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law) and by public policy
limitations affecting the enforceability of indemnification or contribution rights in
connection with securities transactions, to the extent applicable. The Registration Rights
Agreement will conform in all material respects to the statements relating thereto contained
in the Disclosure Package and the Final Offering Memorandum.

5

 

     (xiii) Authorization and Description of the Securities. The
Securities have been duly authorized and, at the Closing Time, will have been duly executed
by the Company and, when authenticated, issued and delivered in the manner provided for in
the Indenture and delivered against payment of the purchase price therefor as provided in
this Agreement, will constitute valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency (including, without limitation, all laws relating to
fraudulent transfers) reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to general
principles of equity (regardless of whether enforcement is considered in a proceeding in
equity or at law), and will be in the form contemplated by, and entitled to the benefits of,
the Indenture. The Securities will conform in all material respects to the statements
relating thereto contained in the Disclosure Package and the Final Offering Memorandum.

     (xiv) Authorization and Description of Common Stock. The Common
Stock conforms to all statements relating thereto included in the Disclosure Package and the
Final Offering Memorandum and such description conforms to the rights set forth in the
instruments defining the same. Upon issuance and delivery of the Securities in accordance
with this Agreement and the Indenture, the Securities will be convertible at the option of
the holder thereof and the Company will have the option to pay a portion of the conversion
value in shares of Common Stock in accordance with the terms of the Securities and the
Indenture; the shares of Common Stock issuable upon conversion of the Securities have been
duly authorized and reserved for issuance upon such conversion by all necessary corporate
action and such shares, when issued upon such conversion, will be validly issued and will be
fully paid and non-assessable; no holder of such shares will be subject to personal
liability by reason of being such a holder; and the issuance of such shares upon such
conversion will not be subject to the preemptive or other similar rights of any
securityholder of the Company.

     (xv) Absence of Defaults and Conflicts. Neither the Company nor any
of the Designated Subsidiaries is in violation of its charter or by-laws or in default in
the performance or observance of any obligation, agreement, covenant or condition contained
in any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease
or other agreement or instrument to which the Company or any of its subsidiaries is a party
or by which or any of them may be bound, or to which any of the property or assets of the
Company or any of its Designated Subsidiaries is subject (collectively, “Agreements and
Instruments”) except for such defaults that would not, singly or in the aggregate, result in
a Material Adverse Effect; and the execution, delivery and performance of the Transaction
Documents and any other agreement or instrument entered into or issued or to be entered into
or issued by the Company in connection with the transactions contemplated hereby or thereby
or in the Disclosure Package and the Final Offering Memorandum and the consummation of the
transactions contemplated herein and in the Disclosure Package and the Final Offering
Memorandum (including the issuance and sale of the Securities and the use of the proceeds
from the sale of the Securities as described in the Disclosure Package and the Final
Offering Memorandum under the caption “Use of Proceeds” and the issuance of the shares of
Common Stock issuable upon conversion of the Securities) and compliance by the Company with
its obligations hereunder do not and will not, whether with or without the giving of notice
or passage of time or both, conflict with or constitute a breach of, or default or Repayment
Event (as defined below) under, or result in the creation or imposition of any lien, charge
or encumbrance upon any property or assets of the Company or any of the Designated
Subsidiaries pursuant to, the Agreements and Instruments (except for such conflicts,
breaches or defaults or liens, charges or encumbrances that would not, singly or in the
aggregate, result in a Material Adverse Effect), nor will such action result in any
violation of the provisions

6

 

of the charter or by-laws of the Company or any of the Designated Subsidiaries or any
applicable law, statute, rule, regulation, judgment, order, writ or decree of any
government, government instrumentality or court, domestic or foreign, having jurisdiction
over the Company or any of its subsidiaries or any of their assets, properties or
operations. As used herein, a “Repayment Event” means any event or condition which gives
the holder of any note, debenture or other evidence of indebtedness (or any person acting on
such holder’s behalf) the right to require the repurchase, redemption or repayment of all or
a portion of such indebtedness by the Company or any of the Designated Subsidiaries.

     (xvi) Absence of Labor Dispute. No labor dispute with the employees
of the Company or any of its subsidiaries exists or, to the knowledge of the Company, is
imminent.

     (xvii) Absence of Proceedings. There is no action, suit, proceeding,
inquiry or investigation before or brought by any court or governmental agency or body,
domestic or foreign, now pending, or, to the knowledge of the Company, threatened, against
or affecting the Company or any of its subsidiaries which is required to be disclosed in the
Disclosure Package or the Final Offering Memorandum (other than as disclosed therein), or
which might reasonably be expected to result in a Material Adverse Effect, or which might
reasonably be expected to materially and adversely affect the properties or assets of the
Company or any of its subsidiaries or the consummation of the transactions contemplated by
this Agreement or the performance by the Company of its obligations hereunder. The
aggregate of all pending legal or governmental proceedings to which the Company or any of
its subsidiaries is a party or of which any of their respective property or assets is the
subject which are not described in the Disclosure Package and the Final Offering Memorandum,
including ordinary routine litigation incidental to the business, could not reasonably be
expected to result in a Material Adverse Effect.

     (xviii) Accuracy of Exhibits. All of the descriptions of contracts
or other documents included in the Disclosure Package or the Final Offering Memorandum are
accurate and complete descriptions of such contracts or other documents. There are no
contracts or documents which are required to be described in the documents incorporated by
reference in the Disclosure Package or Final Offering Memorandum or to be filed as exhibits
thereto which have not been so described and filed as required.

     (xix) Possession of Intellectual Property. The Company and its
subsidiaries own or possess, or can acquire on reasonable terms, adequate patents, patent
rights, licenses, inventions, copyrights, know-how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or
procedures), trademarks, service marks, trade names or other intellectual property
(collectively, “Intellectual Property”) necessary to carry on the business now operated by
them, and neither the Company nor any of its subsidiaries has received any notice or is
otherwise aware of any infringement of or conflict with asserted rights of others with
respect to any Intellectual Property or of any facts or circumstances which would render any
Intellectual Property invalid or inadequate to protect the interest of the Company or any of
its subsidiaries therein, and which infringement or conflict (if the subject of any
unfavorable decision, ruling or finding) or invalidity or inadequacy, singly or in the
aggregate, would result in a Material Adverse Effect.

     (xx) Absence of Further Requirements. No filing with, or
authorization, approval, consent, license, order, registration, qualification or decree of,
any court or governmental authority or agency is necessary or required for the performance
by the Company of its obligations under the Transaction Documents, in connection with the
offering, issuance or sale of the Securities hereunder, the issuance of shares of Common
Stock upon conversion of Securities

7

 

or the consummation of the transactions contemplated by the Transaction Documents or
for the due execution, delivery or performance of the Transaction Documents by the Company,
except (A) such as have been already obtained, (B) as may be required under 1933 Act or the
1933 Act Regulations in connection with the transactions contemplated by the Registration
Rights Agreement or state securities laws and (C) for the qualification of the Indenture
under the Trust Indenture Act of 1939, as amended (the “1939 Act”).

     (xxi) Possession of Licenses and Permits. The Company and the
Designated Subsidiaries possess such permits, licenses, approvals, consents and other
authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal,
state, local or foreign regulatory agencies or bodies necessary to conduct the business now
operated by them; the Company and the Designated Subsidiaries are in compliance with the
terms and conditions of all such Governmental Licenses, except where the failure so to
comply would not, singly or in the aggregate, result in a Material Adverse Effect; all of
the Governmental Licenses are valid and in full force and effect, except where the
invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be
in full force and effect would not have a Material Adverse Effect; and neither the Company
nor any of the Designated Subsidiaries has received any notice of proceedings relating to
the revocation or modification of any such Governmental Licenses which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a
Material Adverse Effect.

     (xxii) Title to Property. The Company and its subsidiaries have good
and marketable title to all real property owned by the Company and its subsidiaries and good
title to all other properties owned by them, in each case, free and clear of all mortgages,
pledges, liens, security interests, claims, restrictions or encumbrances of any kind except
such as (a) are described in the Disclosure Package and the Final Offering Memorandum or (b)
do not, singly or in the aggregate, materially affect the value of such property and do not
interfere with the use made and proposed to be made of such property by the Company or any
of its subsidiaries; and all of the leases and subleases of the Company and its
subsidiaries, considered as one enterprise, and under which the Company or any of its
subsidiaries holds properties described in the Disclosure Package and the Final Offering
Memorandum, are in full force and effect, and neither the Company nor any of its
subsidiaries has any notice of any claim of any sort that has been asserted by anyone
adverse to the rights of the Company or any of its subsidiaries under any of the leases or
subleases mentioned above, or affecting or questioning the rights of the Company or any such
subsidiary to the continued possession of the leased or subleased premises under any such
lease or sublease, except where the failure of a lease or sublease to be in full force and
effect or the existence of any such claim would not, singly or in the aggregate, result in a
Material Adverse Effect.

     (xxiii) Environmental Laws. Except as described in the Disclosure
Package and the Final Offering Memorandum and except such matters as would not, singly or in
the aggregate, result in a Material Adverse Effect, (A) neither the Company nor any of its
subsidiaries is in violation of any federal, state, local or foreign statute, law, rule,
regulation, ordinance, code, policy or rule of common law or any judicial or administrative
interpretation thereof, including any judicial or administrative order, consent, decree or
judgment, relating to pollution or protection of human health, the environment (including,
without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata) or wildlife, including, without limitation, laws and regulations relating to the
release or threatened release of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum or petroleum products (collectively, “Hazardous
Materials”) or to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”),
(B) the Company and its subsidiaries have all permits, authorizations

8

 

and approvals required under any applicable Environmental Laws and are each in
compliance with their requirements, (C) there are no pending or threatened administrative,
regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of
noncompliance or violation, investigation or proceedings relating to any Environmental Law
against the Company or any of its subsidiaries and (D) there are no events or circumstances
that would reasonably be expected to form the basis of an order for clean-up or remediation,
or an action, suit or proceeding by any private party or governmental body or agency,
against or affecting the Company or any of its subsidiaries relating to Hazardous Materials
or Environmental Laws or the violation of any Environmental Laws.

     (xxiv) Accounting Controls and Disclosure Controls. The Company and
each of its subsidiaries maintain a system of internal accounting controls sufficient to
provide reasonable assurances that (A) transactions are executed in accordance with
management’s general or specific authorization; (B) transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain
accountability for assets; (C) access to assets is permitted only in accordance with
management’s general or specific authorization; and (D) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. Except as described in the Disclosure Package and
Final Offering Memorandum, since the end of the Company’s most recent audited fiscal year,
there has been (1) no material weakness in the Company’s internal control over financial
reporting (whether or not remediated) and (2) no change in the Company’s internal control
over financial reporting that has materially affected, or is reasonably likely to materially
affect, the Company’s internal control over financial reporting. The Company and its
consolidated subsidiaries employ disclosure controls and procedures that are designed to
ensure that information required to be disclosed by the Company in the reports that it files
or submits under the 1934 Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission’s rules and forms, and is accumulated and
communicated to the Company’s management, including its principal executive officer or
officers and principal financial officer or officers, as appropriate, to allow timely
decisions regarding disclosure.

     (xxv) Compliance with the Sarbanes-Oxley Act. There is and has been
no failure on the part of the Company or any of the Company’s directors or officers, in
their capacities as such, to comply in all material respects with any provision of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith
(the “Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302 and 906
related to certifications.

     (xxvi) Statistical and Market-Related Data. Any statistical and
market-related data included in the Disclosure Package and the Final Offering Memorandum are
based on or derived from sources that the Company believes to be reliable and accurate in
all material respects or represent the Company’s good faith estimates that are made on the
basis of data derived from such sources.

     (xxvii) Investment Company Act. The Company is not required, and
upon the issuance and sale of the Securities as herein contemplated and the application of
the net proceeds therefrom as described in the Disclosure Package and the Final Offering
Memorandum will not be required, to register as an “investment company” under the Investment
Company Act of 1940, as amended (the “1940 Act”).

     (xxviii) Similar Offerings. Neither the Company nor any of its
affiliates, as such term is defined in Rule 501(b) under the 1933 Act (each, an
“Affiliate”), has, directly or indirectly,

9

 

solicited any offer to buy, sold or offered to sell or otherwise negotiated in respect
of, or will solicit any offer to buy, sell or offer to sell or otherwise negotiate in
respect of, in the United States or to any United States citizen or resident, any security
which is or would be integrated with the sale of the Securities in a manner that would
require the offered Securities to be registered under the 1933 Act.

     (xxix) Rule 144A Eligibility. The Securities are eligible for resale
pursuant to Rule 144A and will not be, at the Closing Time, of the same class as securities
listed on a national securities exchange registered under Section 6 of the 1934 Act, or
quoted in a U.S. automated interdealer quotation system.

     (xxx) No General Solicitation. None of the Company, its Affiliates
or any person acting on its or any of their behalf (other than the Initial Purchasers and
their Affiliates, as to whom the Company makes no representation) has engaged or will
engage, in connection with the offering of the Securities, in any form of general
solicitation or general advertising within the meaning of Rule 502(c) under the 1933 Act.

     (xxxi) No Registration Required. Subject to compliance by the
Initial Purchasers with their representations and warranties set forth in Section 6 hereof
and the procedures set forth in Section 6 hereof, the compliance of the Initial Purchasers
with the offering and transfer procedures and restrictions described in the Disclosure
Package and Final Offering Memorandum and the accuracy of the representations and warranties
made in accordance with this Agreement and the Final Offering Memorandum by purchasers to
whom the Initial Purchasers initially resell Securities, it is not necessary in connection
with the offer, sale and delivery of the Securities to the Initial Purchasers and to each
Subsequent Purchaser in the manner contemplated by this Agreement and the Final Offering
Memorandum to register the Securities under the 1933 Act or to qualify the Indenture under
the 1939 Act.

     (xxxii) Foreign Corrupt Practices Act. Neither the Company nor, to
the knowledge of the Company, any director, officer, agent, employee, Affiliate or other
person acting on behalf of the Company or any of its subsidiaries is aware of or has taken
any action, directly or indirectly, that would result in a violation by such persons of the
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder
(the “FCPA”), including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA and the
Company and, to the knowledge of the Company, its Affiliates have conducted their businesses
in compliance with the FCPA and have instituted and maintain policies and procedures
designed to ensure, and which are reasonably expected to continue to ensure, continued
compliance therewith.

     (xxxiii) Money Laundering Laws. The operations of the Company are
and have been conducted at all times materially in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and
regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively, the “Money Laundering
Laws”) and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator

10

 

involving the Company with respect to the Money Laundering Laws is pending or, to the
best knowledge of the Company, threatened.

     (xxxiv) OFAC. Neither the Company nor, to the knowledge of the
Company, any director, officer, agent, employee, Affiliate or person acting on behalf of the
Company is currently subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department (“OFAC”); and the Company 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 or entity,
for the purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.

     (b) Officer’s Certificates. Any certificate signed by any officer of the Company or
any of its subsidiaries delivered to Merrill Lynch or to counsel for the Initial Purchasers shall
be deemed a representation and warranty by the Company to each Initial Purchaser as to the matters
covered thereby.

     SECTION 2. Sale and Delivery to Initial Purchasers; Closing.

     (a) Initial Securities. On the basis of the representations and warranties herein
contained and subject to the terms and conditions herein set forth, the Company agrees to sell to
each Initial Purchaser, severally and not jointly, and each Initial Purchaser, severally and not
jointly, agrees to purchase from the Company, the aggregate principal amount of Initial Securities
set forth in Schedule A hereto opposite the name of such Initial Purchaser, at a price of 97.75% of
the principal amount thereof, plus any additional principal amount of Securities which such Initial
Purchaser may become obligated to purchase pursuant to the provisions of Section 11 hereof.

     (b) Option Securities. In addition, on the basis of the representations and
warranties herein contained and subject to the terms and conditions herein set forth, the Company
hereby grants an option to the Initial Purchasers to purchase up to an additional $25,000,000
aggregate principal amount of Option Securities at the same purchase price as the Initial
Purchasers paid for the Initial Securities, plus accrued and unpaid interest from the Initial
Closing Time to, but excluding, the Option Closing Time. The option hereby granted will expire 13
days after the Initial Closing Time and may be exercised at any time, in whole or in part, for the
purpose of covering overallotments, if any, made in connection with the offering and distribution
of the Initial Securities upon notice by Merrill Lynch to the Company setting forth the number of
Option Securities as to which the Initial Purchasers are then exercising the option and the time
and date of payment and delivery for such Option Securities. Any such time and date of delivery
(the “Option Closing Time”) shall be determined by the Company and Merrill Lynch, but shall not be
later than seven full business days after the exercise of said option, nor in any event prior to
the Initial Closing Time, as hereinafter defined.

     (c) Payment. Payment of the purchase price for, and delivery of certificates for,
the Initial Securities shall be made at the offices of Sidley Austin LLP, One South Dearborn
Street, Chicago, Illinois 60603, or at such other place as shall be agreed upon by Merrill Lynch
and the Company, at 9:00 A.M. (Eastern time) on the third (fourth, if the pricing occurs after 4:30
P.M. (Eastern time) on any given day) business day after the date hereof (unless postponed in
accordance with the provisions of Section 11), or such other time not later than ten business days
after such date as shall be agreed upon by Merrill Lynch and the Company (such time and date of
payment and delivery being herein called “Initial Closing Time” and the Initial Closing Time and
the Option Closing Time each being the applicable “Closing Time”).

     In addition, in the event that any or all of the Option Securities are purchased by the
Initial Purchasers, payment of the purchase price for, and delivery of certificates for, such
Option Securities shall be made at the above-mentioned offices, or at such other place as shall be
agreed upon by Merrill

11

 

Lynch and the Company, on the Option Closing Time as specified in the notice from Merrill
Lynch to the Company.

     Payment shall be made to the Company by wire transfer of immediately available funds to a bank
account designated by the Company, against delivery to Merrill Lynch for the respective accounts of
the Initial Purchasers of certificates for the Securities to be purchased by them. It is
understood that each Initial Purchaser has authorized Merrill Lynch, for its account, to accept
delivery of, receipt for, and make payment of the purchase price for, the Securities which it has
agreed to purchase. Merrill Lynch, individually and not as representative of the Initial
Purchasers, may (but shall not be obligated to) make payment of the purchase price for the
Securities to be purchased by any Initial Purchaser whose funds have not been received by the
Closing Time, but such payment shall not relieve such Initial Purchaser from its obligations
hereunder.

     (d) Denominations; Registration. Certificates for the Securities shall be in such
denominations ($1,000 or integral multiples of $1,000 in excess thereof) and registered in such
names as Merrill Lynch may request in writing at least one full business day before Closing Time.
The certificates representing the Securities shall be made available for examination and packaging
by the Initial Purchasers in The City of New York not later than 10:00 A.M. (Eastern time) on the
last business day prior to Closing Time.

     SECTION 3. Covenants of the Company. The Company covenants with each
Initial Purchaser as follows:

     (a) Delivery of Offering Memorandum. The Company, as promptly as possible, will
furnish to each Initial Purchaser, without charge, such number of copies of the Offering Memorandum
and any amendments and supplements thereto and documents incorporated by reference therein as such
Initial Purchaser may reasonably request.

     (b) Notice and Effect of Material Events. The Company will immediately notify each
Initial Purchaser, and confirm such notice in writing, of (x) any filing made by the Company of
information relating to the offering of the Securities with any securities exchange or any other
regulatory body in the United States or any other jurisdiction, and (y) prior to the completion of
the placement of the Securities by the Initial Purchasers as evidenced by a notice from the Initial
Purchasers to the Company, any material changes in or affecting the condition, financial or
otherwise, or the earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise, which (i) make any statement in the Disclosure Package,
any Offering Memorandum or any Supplemental Offering Material false or misleading in any material
respect or (ii) if not disclosed in the Disclosure Package or the Offering Memorandum, would
constitute a material omission therefrom. In such event or if during such time any event shall
occur as a result of which it is necessary, in the reasonable opinion of any of the Company, its
counsel, the Initial Purchasers or counsel for the Initial Purchasers, to amend or supplement the
Offering Memorandum in order that the Offering Memorandum not include any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein
not misleading in the light of the circumstances then existing, the Company will forthwith amend or
supplement the Offering Memorandum by preparing and furnishing to each Initial Purchaser an
amendment or amendments of, or a supplement or supplements to, the Offering Memorandum (in form and
substance satisfactory in the reasonable opinion of counsel for the Initial Purchasers) so that, as
so amended or supplemented, the Offering Memorandum will not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances existing at the time it is delivered to a Subsequent Purchaser,
not misleading.

     (c) Amendment and Supplements to the Offering Memorandum; Preparation of Pricing
Supplement; Supplemental Offering Materials. The Company will advise each Initial Purchaser
promptly

12

 

of any proposal to amend or supplement the Offering Memorandum, will furnish each Initial
Purchaser with copies of such amendment or supplement a reasonable amount of time prior thereto and
will not effect such amendment or supplement to which the Initial Purchasers shall reasonably
object. Neither the consent of the Initial Purchasers, nor the Initial Purchasers’ delivery of any
such amendment or supplement, shall constitute a waiver of any of the conditions set forth in
Section 5 hereof. The Company will prepare the Pricing Term Sheet, in form and substance
satisfactory to Merrill Lynch, and shall furnish as soon as practicable but no later than 4 hours
prior to the Applicable Time to each Initial Purchaser, without charge, as many copies of the
Pricing Term Sheet as such Initial Purchaser may reasonably request. The Company represents and
agrees that, unless it obtains the prior consent of Merrill Lynch, and each Initial Purchaser
agrees that, unless it obtains the prior written consent of the Company and Merrill Lynch, it has
not made and will not make any offer relating to the Securities by means of any Supplemental
Offering Materials; provided, however, that prior to the preparation of the Pricing Term Sheet, the
Initial Purchasers are authorized to use the information with respect to the final terms of the
Securities in communications conveying information relating to the offering to investors.

     (d) Qualification of Securities for Offer and Sale. The Company will use its best
efforts, in cooperation with the Initial Purchasers, to qualify the Securities and the shares of
Common Stock issuable upon conversion of Securities for offering and sale under the applicable
securities laws of such states as the Initial Purchasers may designate; provided, however, that the
Company shall not be obligated to file any general consent to service of process or to qualify as a
foreign corporation or as a dealer in securities in any jurisdiction in which it is not so
qualified or to subject itself to taxation in respect of doing business in any jurisdiction in
which it is not otherwise so subject. In each jurisdiction in which the Securities or such shares
of Common Stock issuable upon conversion of the Securities have been so qualified, the Company will
file such statements and reports as may be required by the laws of such jurisdiction to continue
such qualification in effect for so long as may be required in connection with the distribution of
the Securities.

     (e) Listing of Common Stock. The Company will use its best efforts to cause all
shares of Common Stock issuable upon conversion of the Securities to be listed on the New York
Stock Exchange.

     (f) DTC. The Company will cooperate with the Initial Purchasers and use its best
efforts to permit the offered Securities to be eligible for clearance and settlement through the
facilities of DTC.

     (g) Use of Proceeds. The Company will use the net proceeds received by it from the
sale of the Securities in the manner specified in the Offering Memorandum under “Use of Proceeds”.

     (h) Restriction on Sale of Securities. Except as otherwise contemplated by the
Offering Memorandum or the Transaction Documents, during a period of 90 days from the date of the
Final Offering Memorandum (the “Lock-up Period”), the Company will not, without the prior written
consent of Merrill Lynch, (i) offer, pledge, sell, announce the intention to sell, contract to
sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any
option, right or warrant for the sale of, lend or otherwise transfer or dispose of any shares of
Common Stock or any securities convertible into or exercisable or exchangeable for or repayable
with Common Stock, or file any registration statement under the 1933 Act with respect to any of the
foregoing or (ii) enter into any swap or other agreement or any transaction that transfers, in
whole or in part, directly or indirectly, the economic consequences of ownership of the Common
Stock, or any securities convertible into or exercisable or exchangeable for or repayable with
Common Stock, whether any such swap or transaction described in clause (i) above or this clause
(ii) is to be settled by delivery of Common Stock or such other securities, in cash or otherwise.
The foregoing sentence shall not apply to (A) shares of Common Stock to be issued upon conversion
of the Securities, (B) shares of Common Stock to be issued upon conversion of the Company’s
outstanding zero coupon convertible notes due 2033, (C) the OTC Convertible Note Hedge and the OTC
Warrant

13

 

Transaction and any transactions in the Company’s securities contemplated thereby, (D) the
Company’s issuance of stock options and stock units to the Company’s directors and employees
pursuant to any existing employee benefit plans or director compensation plans of the Company, (E)
the Company’s issuance of shares of Common Stock to directors and employees of the Company upon the
exercise of options outstanding on the date hereof or the conversion of stock units outstanding on
the date hereof under existing employee benefit plans or director compensation plans of the
Company, (F) securities issued or to be issued by the Company in connection with a merger,
acquisition or other business combination, provided that the recipients of such securities shall
enter into lock-up agreements for the balance of the Lock-up Period, (G) the filing of a
registration statement on Form S-8 to register shares of Common Stock to be issued under any
existing employee benefit plans or director compensation plans of the Company or (H) the filing of
a registration statement on From S-4 to register shares of Common Stock.

     (i) PORTAL Designation. The Company will use its best efforts to permit the
Securities to be designated PORTAL securities in accordance with the rules and regulations adopted
by the National Association of Securities Dealers, Inc. (“NASD”) relating to trading in the PORTAL
Market.

     (j) Reporting Requirements. Until the offering of the Securities is complete, the
Company will file all documents required to be filed with the Commission pursuant to the 1934 Act
within the time periods required by the 1934 Act and the 1934 Act Regulations.

     (k) Reservation of Shares of Common Stock. The Company shall reserve and keep
available at all times, free of preemptive rights, shares of Common Stock for the purpose of
enabling the Company to satisfy any obligations to issue shares of Common Stock upon conversion of
the Securities.

     (l) Trust Indenture Act. The Company agrees that it will comply with all the terms
and conditions of the Registration Rights Agreement and at the time of any registration of the
Securities pursuant to the Registration Rights Agreement it will cause the Indenture to be
qualified under the 1939 Act.

     SECTION 4. Payment of Expenses.

     (a) Expenses. The Company will pay all expenses incident to the performance of its
obligations under this Agreement, including (i) the preparation, printing and delivery to the
Initial Purchasers of the Disclosure Package or any Offering Memorandum (including financial
statements and any schedules or exhibits and any document incorporated therein by reference) and of
each amendment or supplement thereto or of any Supplemental Offering Material, (ii) the
preparation, printing and delivery to the Initial Purchasers of this Agreement, any Agreement among
the Initial Purchasers, the Indenture and such other documents as may be required in connection
with the offering, purchase, sale, issuance or delivery of the Securities, (iii) the preparation,
issuance and delivery of the certificates for the Securities to the Initial Purchasers, including
any transfer taxes, any stamp or other duties payable upon the sale, issuance and delivery of the
Securities to the Initial Purchasers and any charges of DTC in connection therewith, (iv) the fees
and disbursements of the Company’s counsel, accountants and other advisors, (v) the qualification
of the Securities and the shares of Common Stock issuable upon conversion of the Securities under
securities laws in accordance with the provisions of Section 3(d) hereof, including filing fees and
the fees and disbursements of counsel for the Initial Purchasers in connection therewith and in
connection with the preparation of the Blue Sky Survey, (vi) the fees and expenses of the Trustee,
including the fees and disbursements of counsel for the Trustee in connection with the Indenture
and the Securities, (vii) the costs and expenses of the Company relating to investor presentations
on any “road show” undertaken in connection with the marketing of the Securities, if any,
including, without limitation, expenses associated with the production of road show slides and
graphics, fees and expenses of any consultants engaged in

14

 

connection with the road show presentations and travel and lodging expenses of the
representatives and officers of the Company and any such consultants, (viii) any fees payable in
connection with the rating of the Securities and any fees and expenses payable in connection with
the initial and continued designation of the Securities as PORTAL securities under the PORTAL
Market Rules pursuant to NASD Rule 5322, (ix) any fees of the NASD and (x) any fees and expenses
payable in connection with the initial and continued listing of the Common Stock issuable upon
conversion of the Securities on the New York Stock Exchange.

     (b) Termination of Agreement. If this Agreement is terminated by Merrill Lynch in
accordance with the provisions of Section 5 or Section 10(a)(i) hereof, the Company shall reimburse
the Initial Purchasers for all of their out-of-pocket expenses, including the reasonable fees and
disbursements of counsel for the Initial Purchasers.

     SECTION 5. Conditions of Initial Purchasers’ Obligations. The obligations
of the several Initial Purchasers hereunder are subject to the accuracy of the representations and
warranties of the Company contained in Section 1 hereof or in certificates of any officer of the
Company or any of its subsidiaries delivered pursuant to the provisions hereof, to the performance
by the Company of its covenants and other obligations hereunder, and to the following further
conditions:

     (a) Opinion of Counsel for Company. At the Closing Time, Merrill Lynch shall have
received the favorable opinion, dated as of the Closing Time, of (i) Schiff Hardin LLP, counsel for
the Company, in form and substance satisfactory to counsel for the Initial Purchasers, to the
effect set forth in Exhibit A-1 hereto and to such further effect as counsel to the Initial
Purchasers may reasonably request, and (ii) John A. Dul, Vice President – General Counsel and
Secretary of the Company, in form and substance satisfactory to counsel for the Initial Purchasers,
to the effect set forth in Exhibit A-2 hereto and to such further effect as counsel to the Initial
Purchasers may reasonably request.

     (b) Opinion of Counsel for Initial Purchasers. At the Closing Time, Merrill Lynch
shall have received the favorable opinion, dated as of the Closing Time, of Sidley Austin LLP,
counsel for the Initial Purchasers. In giving such opinion such counsel may rely, as to all
matters governed by the laws of jurisdictions other than the law of the State of New York, the
federal law of the United States and the General Corporation Law of the State of Delaware, upon the
opinions of counsel satisfactory to Merrill Lynch. Such counsel may also state that, insofar as
such opinion involves factual matters, they have relied, to the extent they deem proper, upon
certificates of officers of the Company and its subsidiaries and certificates of public officials.

     (c) Officers’ Certificate. At the Closing Time, there shall not have been, since
the date hereof or since the respective dates as of which information is given in the Disclosure
Package or the Final Offering Memorandum (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement), any material adverse change in the condition, financial
or otherwise, or in the earnings, business affairs or business prospects of the Company and its
subsidiaries considered as one enterprise, whether or not arising in the ordinary course of
business, and Merrill Lynch shall have received a certificate of the President or a Vice President
of the Company and of the chief financial or chief accounting officer of the Company, dated as of
the Closing Time, to the effect that (i) there has been no such material adverse change, (ii) the
representations and warranties in Section 1(a) hereof are true and correct with the same force and
effect as though expressly made at and as of the Closing Time, and (iii) the Company has complied,
in all material respects, with all agreements and satisfied all conditions on its part to be
performed or satisfied at or prior to Closing Time.

     (d) Accountants’ Comfort Letter. At the time of the execution of this Agreement,
Merrill Lynch shall have received from Ernst & Young LLP a letter dated such date, in form and
substance satisfactory

15

 

to the Initial Purchasers, containing statements and information of the type ordinarily
included in accountants’ “comfort letters” to the Initial Purchasers with respect to the financial
statements and certain financial information contained in the Disclosure Package and the Final
Offering Memorandum.

     (e) Bring-down Comfort Letter. At the Closing Time, Merrill Lynch shall have
received from Ernst & Young LLP a letter, dated as of the Closing Time, to the effect that they
reaffirm the statements made in the letter furnished pursuant to subsection (d) of this Section,
except that the specified date referred to shall be a date not more than three business days prior
to the Closing Time.

     (f) PORTAL. At the Closing Time, the Securities shall have been designated for
trading on PORTAL.

     (g) Lock-up Agreements. On or prior to the date of this Agreement, Merrill Lynch
shall received an agreement substantially in the form of Exhibit C hereto signed by the persons
listed in Schedule C hereto.

     (h) Indenture and Registration Rights Agreement. At or prior to the Initial Closing
Time, each of the Company and the Trustee shall have executed and delivered the Indenture, and the
Company and Merrill Lynch shall have executed and delivered the Registration Rights Agreement.

     (i) Bond Hedge and Warrant Documents. At or prior to the Initial Closing Time, the
OTC Convertible Note Hedge and the OTC Warrant Transaction, in form and substance reasonably
satisfactory to the Initial Purchasers, shall have been duly executed and delivered by the Company
and be in full force and effect.

     (j) Conditions to Purchase of Option Securities. In the event that the Initial
Purchasers exercise their option provided in Section 2(b) hereof to purchase all or any portion of
the Option Securities, the obligation of the Initial Purchasers to purchase such Option Securities
is subject to the representations and warranties of the Company contained herein and the statements
in any certificates furnished by the Company hereunder being true and correct as of the Option
Closing Time and that, at the Option Closing Time, the Initial Purchasers shall have received:

(i) Officers’ Certificate. A certificate, dated the Option Closing Time,
of the President or a Vice President of the Company and of the chief financial officer or
chief accounting officer of the Company confirming that the certificate delivered at the
Initial Closing Time pursuant to Section 5(c) hereof remains true and correct as of the
Option Closing Time;

(ii) Opinions of Counsel for Company. The favorable opinion of (A) Schiff
Hardin LLP, counsel for the Company, in form and substance satisfactory to counsel for the
Initial Purchasers, dated as of the Option Closing Time, relating to the Option Securities
to be purchased on such Option Closing Time and otherwise to the same effect as the opinion
required by Section 5(a) hereof and (B) John A. Dul, Vice President – General Counsel and
Secretary of the Company, in form and substance satisfactory to counsel for the Initial
Purchasers, dated as of such Option Closing Time, relating to the Option Securities to be
purchased on such Option Closing Time and otherwise to the same effect as the opinion
required by Section 5(a) hereof.

(iii) Opinion of Counsel for Initial Purchasers. The favorable opinion of
Sidley Austin LLP, counsel for the Initial Purchasers, dated as of the Option Closing Time,
relating to the Option Securities to be purchased on the Option Closing Time and otherwise
to the same effect as the opinion required by Section 5(b) hereof;

16

 

(iv) Bring-down Comfort Letter. A letter from Ernst & Young LLP, in form
and substance satisfactory to the Initial Purchasers and dated as of the Option Closing
Time, substantially in the same form and substance as the letter furnished to Merrill Lynch
pursuant to Section 5(d) hereof, except that the “specified date” in the letter furnished
pursuant to this subparagraph shall be a date not more than three days prior to the Option
Closing Time.

     (k) Additional Documents. At the Closing Time, counsel for the Initial Purchasers
shall have been furnished with such documents and opinions as they may require for the purpose of
enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in
order to evidence the accuracy of any of the representations or warranties, or the fulfillment of
any of the conditions, herein contained; and all proceedings taken by the Company in connection
with the issuance and sale of the Securities as herein contemplated shall be satisfactory in form
and substance to Merrill Lynch and counsel for the Initial Purchasers.

     (l) Termination of Agreement. If any condition specified in this Section shall not
have been fulfilled when and as required to be fulfilled, this Agreement or, in the case of any
condition to the purchase of Option Securities, on an Option Closing Time which is after the
Initial Closing Time, the obligations of the Initial Purchasers to purchase the relevant Option
Securities, may be terminated by Merrill Lynch by notice to the Company at any time at or prior to
Initial Closing Time or Option Closing Time, as the case may be, and such termination shall be
without liability of any party to any other party except as provided in Section 4 and except that
Sections 1, 7, 8 and 9 shall survive any such termination and remain in full force and effect.

     SECTION 6. Subsequent Offers and Resales of the Securities.

     (a) Offer and Sale Procedures. Each of the Initial Purchasers and the Company, as
the case may be, hereby establish and agree to observe the following procedures in connection with
the offer and sale of the Securities:

     (i) Offers and Sales. Offers and sales of the Securities shall be
made to such persons and in such manner as is contemplated by the Offering Memorandum.

     (ii) No General Solicitation. No general solicitation or general
advertising (within the meaning of Rule 502(c) under the 1933 Act) will be used in the
United States in connection with the offering or sale of the Securities.

     (iii) Purchases by Non-Bank Fiduciaries. In the case of a non-bank
Subsequent Purchaser of a Security acting as a fiduciary for one or more third parties, each
third party shall, in the judgment of the applicable Initial Purchaser, be a “qualified
institutional buyer” within the meaning of Rule 144A under the 1933 Act (a “Qualified
Institutional Buyer”).

     (iv) Subsequent Purchaser Notification. Each Initial Purchaser will
take reasonable steps to inform, and cause each of its U.S. Affiliates to take reasonable
steps to inform, persons acquiring Securities from such Initial Purchaser or its Affiliate,
as the case may be, in the United States that the Securities (A) have not been and will not
be registered under the 1933 Act, (B) are being sold to them without registration under the
1933 Act in reliance on Rule 144A or in accordance with another exemption from registration
under the 1933 Act, as the case may be, and (C) may not be offered, sold or otherwise
transferred except (1) to the Company, (2) outside the United States in accordance with
Regulation S, or (3) inside the United States in accordance with (x) Rule 144A to a person
whom the seller reasonably believes is a Qualified Institutional Buyer

17

 

that is purchasing such Securities for its own account or for the account of a
Qualified Institutional Buyer to whom notice is given that the offer, sale or transfer is
being made in reliance on Rule 144A or (y) pursuant to another available exemption from
registration under the 1933 Act.

     (v) Minimum Principal Amount. No sale of the Securities to any one
Subsequent Purchaser will be for less than U.S. $1,000 principal amount and no Security will
be issued in a smaller principal amount. If the Subsequent Purchaser is a non-bank
fiduciary acting on behalf of others, each person for whom it is acting must purchase at
least U.S. $1,000 principal amount of the Securities.

     (vi) Transfer Restriction. The transfer restrictions and the other
provisions set forth in the Offering Memorandum under the caption “Transfer Restrictions,”
including the legend required thereby, shall apply to the Securities except as otherwise
agreed by the Company and Merrill Lynch. Following the sale of the Securities by the Initial
Purchasers to each Subsequent Purchaser pursuant to the terms hereof, the Initial Purchasers
shall not be liable or responsible to the Company for any losses, damages or liabilities
suffered or incurred by the Company, including any losses, damages or liabilities under the
1933 Act, arising from or relating to any subsequent resale or transfer of any Security.

     (b) Covenants of the Company. The Company covenants with each Initial Purchaser as
follows:

     (i) Integration. The Company agrees that it will not and will cause
its Affiliates not to, directly or indirectly, solicit any offer to buy, sell or make any
offer or sale of, or otherwise negotiate in respect of, securities of the Company of any
class if, as a result of the doctrine of “integration” referred to in Rule 502 under the
1933 Act, such offer or sale would render invalid (for the purpose of (i) the sale of the
Securities by the Company to the Initial Purchasers, (ii) the resale of the Securities by
the Initial Purchasers to Subsequent Purchasers or (iii) the resale of the Securities by
such Subsequent Purchasers to others) the exemption from the registration requirements of
the 1933 Act provided by Section 4(2) thereof or by Rule 144A thereunder or otherwise.

     (ii) Rule 144A Information. The Company agrees that, in order to
render the Securities eligible for resale pursuant to Rule 144A under the 1933 Act, while
any of the Securities remain outstanding, it will make available, upon request, to any
holder of Securities or prospective purchasers of Securities the information specified in
Rule 144A(d)(4), unless the Company furnishes information to the Commission pursuant to
Section 13 or 15(d) of the 1934 Act.

     (iii) Restriction on Repurchases. Until the expiration of two years
after the original issuance of the Securities, the Company will not, and will use its
reasonable efforts to cause its Affiliates not to, resell any offered Securities which are
“restricted securities” (as such term is defined under Rule 144(a)(3) under the 1933 Act),
whether as beneficial owner or otherwise (except as agent acting as a securities broker on
behalf of and for the account of customers in the ordinary course of business in unsolicited
broker’s transactions) that have been reacquired by any of them and shall immediately upon
any purchase of any Securities submit such Securities to the Trustee for cancellation.

     (iv) Reasonable Inquiries; Information. In connection with the
original distribution of the Securities, the Company agrees that, prior to any offer or
resale of the Securities by the Initial Purchasers, the Initial Purchasers and counsel for
the Initial Purchasers shall have the right

18

 

to make reasonable inquiries into the business of the Company and its subsidiaries.
The Company also agrees to provide answers to each prospective Subsequent Purchaser of
Securities who so requests concerning the Company and its subsidiaries (to the extent such
information is available or can be acquired and made available to prospective Subsequent
Purchasers without unreasonable effort or expense and to the extent the provision thereof is
not prohibited by applicable law) and the terms and conditions of the offering of the
Securities, as provided in the Offering Memorandum.

     (c) Qualification of Initial Purchasers. Each Initial Purchaser severally and not
jointly represents and warrants to, and agrees with, the Company that:

     (i) it is a Qualified Institutional Buyer and an “accredited investor” within
the meaning of Rule 501(a) under the 1933 Act (an “Accredited Investor”) with such knowledge
in financial and business matters as are necessary in order to evaluate the merits and risks
of an investment in the Securities; and

     (ii) neither it, nor any of its Affiliates, nor any person acting on its
behalf, has engaged or will engage, in connection with the offering of the Securities, in
any form of general solicitation or general advertising within the meaning of Rule 502(c)
under the 1933 Act.

     The Initial Purchasers understand that the Company, and for purposes of the opinions to be
delivered to the Initial Purchasers pursuant to Section 5 hereof, counsel to the Company and
counsel to the Initial Purchasers will rely upon the accuracy and truth of the foregoing
representations, and the Initial Purchasers hereby consent to such reliance.

     SECTION 7. Indemnification.

     (a) Indemnification of Initial Purchasers. The Company agrees to indemnify and hold
harmless each Initial Purchaser, its Affiliates, its selling agents and each person, if any, who
controls any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act as follows:

     (i) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of
a material fact contained in the Disclosure Package, the Final Offering Memorandum (or any
amendment or supplement thereto) or any Supplemental Offering Materials (when taken together
with the Disclosure Package), or the omission or alleged omission therefrom of a material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading;

     (ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any
litigation, or any investigation or proceeding by any governmental agency or body, commenced
or threatened, or of any claim whatsoever based upon any such untrue statement or omission,
or any such alleged untrue statement or omission; provided that (subject to Section 7(d)
below) any such settlement is effected with the written consent of the Company; and

     (iii) against any and all expense whatsoever, as incurred (including the fees
and disbursements of counsel chosen by Merrill Lynch), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever based upon

19

 

any such untrue statement or omission, or any such alleged untrue statement or
omission, to the extent that any such expense is not paid under (i) or (ii) above;

     provided, however, that this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue statement or omission
or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by any Initial Purchaser through Merrill Lynch expressly for
use in the Disclosure Package, the Final Offering Memorandum (or any amendment or supplement
thereto) or in any Supplemental Offering Materials.

     (b) Indemnification of Company, Directors and Officers. Each Initial Purchaser
severally agrees to indemnify and hold harmless the Company, its directors, its officers and each
person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense described
in the indemnity contained in subsection (a) of this Section 7, as incurred, but only with respect
to untrue statements or omissions, or alleged untrue statements or omissions, made in the
Disclosure Package, the Final Offering Memorandum or any Supplemental Offering Materials in
reliance upon and in conformity with written information furnished to the Company by such Initial
Purchaser through Merrill Lynch expressly for use therein.

     (c) Actions against Parties; Notification. Each indemnified party shall give notice
as promptly as reasonably practicable to each indemnifying party of any action commenced against it
in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying
party shall not relieve such indemnifying party from any liability hereunder to the extent it is
not materially prejudiced as a result thereof and in any event shall not relieve it from any
liability which it may have otherwise than on account of this indemnity agreement. In the case of
parties indemnified pursuant to Section 7(a) above, counsel to the indemnified parties shall be
selected by Merrill Lynch, and, in the case of parties indemnified pursuant to Section 7(b) above,
counsel to the indemnified parties shall be selected by the Company. An indemnifying party may
participate at its own expense in the defense of any such action; provided, however, that counsel
to the indemnifying party shall not (except with the consent of the indemnified party) also be
counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees
and expenses of more than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general allegations or
circumstances. No indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section or Section 8 hereof (whether or not the indemnified parties are actual or
potential parties thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party.

     (d) Settlement without Consent if Failure to Reimburse. If at any time an
indemnified party shall have requested an indemnifying party to reimburse the indemnified party for
fees and expenses of counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 7(a)(ii) effected without its written consent if
(i) such settlement is entered into more than 45 days after receipt by such indemnifying party of
the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such request prior to the
date of such settlement.

20

 

     SECTION 8. Contribution. If the indemnification provided for in Section 7
hereof is for any reason unavailable to or insufficient to hold harmless an indemnified party in
respect of any losses, liabilities, claims, damages or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims,
damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one hand and the
Initial Purchasers on the other hand from the offering of the Securities pursuant to this Agreement
or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company on the one hand and of the Initial Purchasers on
the other hand in connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.

     The relative benefits received by the Company on the one hand and the Initial Purchasers on
the other hand in connection with the offering of the Securities pursuant to this Agreement shall
be deemed to be in the same respective proportions as the total net proceeds from the offering of
the Securities pursuant to this Agreement (before deducting expenses) received by the Company and
the total underwriting discount received by the Initial Purchasers bear to the aggregate initial
offering price of the Securities.

     The relative fault of the Company on the one hand and the Initial Purchasers on the other hand
shall be determined by reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to
information supplied by the Company or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.

     The Company and the Initial Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section were determined by pro rata allocation (even if the Initial
Purchasers were treated as one entity for such purpose) or by any other method of allocation which
does not take account of the equitable considerations referred to above in this Section 8. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified
party and referred to above in this Section 8 shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental agency or body,
commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 8, no Initial Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities
purchased and sold by it hereunder exceeds the amount of any damages which such Initial Purchaser
has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.

     No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section 8, each person, if any, who controls an Initial Purchaser within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act and each Initial
Purchaser’s Affiliates shall have the same rights to contribution as such Initial Purchaser, and
each director of the Company, each officer of the Company, and each person, if any, who controls
the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall
have the same rights to contribution as the Company. The Initial Purchasers’ respective
obligations to contribute pursuant to this

21

 

Section 8 are several in proportion to the principal amount of Securities set forth opposite
their respective names in Schedule A hereto and not joint.

     SECTION 9. Representations, Warranties and Agreements to Survive. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Company or any of its subsidiaries submitted pursuant hereto shall remain operative
and in full force and effect, regardless of (i) any investigation made by or on behalf of any
Initial Purchaser or its Affiliates or selling agents, any person controlling any Initial
Purchaser, its officers or directors or any person controlling the Company and (ii) delivery of and
payment for the Securities.

     SECTION 10. Termination of Agreement.

     (a) Termination; General. Merrill Lynch may terminate this Agreement, by notice to
the Company, at any time at or prior to Closing Time (i) if there has been, since the time of
execution of this Agreement or since the respective dates as of which information is given in the
Preliminary Offering Memorandum, the Disclosure Package or the Final Offering Memorandum (exclusive
of any amendments or supplements thereto subsequent to the date of this Agreement), any material
adverse change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, or (ii) if there has occurred any material adverse
change in the financial markets in the United States, any outbreak of hostilities or escalation
thereof or other calamity or crisis or any change or development involving a prospective change in
national or international political, financial or economic conditions, in each case the effect of
which is such as to make it, in the judgment of Merrill Lynch, impracticable or inadvisable to
market the Securities or to enforce contracts for the sale of the Securities, or (iii) if trading
in any securities of the Company has been suspended or materially limited by the Commission or the
New York Stock Exchange or if trading generally on the American Stock Exchange or the New York
Stock Exchange or in the NASDAQ System has been suspended or materially limited, or minimum or
maximum prices for trading have been fixed, or maximum ranges for prices have been required, by any
of said exchanges or by such system or by order of the Commission, the NASD or any other
governmental authority, or (iv) a material disruption has occurred in commercial banking or
securities settlement or clearance services in the United States or (v) if a banking moratorium has
been declared by either Federal or New York authorities.

     (b) Liabilities. If this Agreement is terminated pursuant to this Section 10, such
termination shall be without liability of any party to any other party except as provided in
Section 4 hereof, and provided further that Sections 1, 7, 8 and 9 shall survive such termination
and remain in full force and effect.

     SECTION 11. Default by One or More of the Initial Purchasers. If one or
more of the Initial Purchasers shall fail at the Closing Time to purchase the Securities which it
or they are obligated to purchase under this Agreement (the “Defaulted Securities”), Merrill Lynch
shall have the right, within 24 hours thereafter, to make arrangements for one or more of the
non-defaulting Initial Purchasers, or any other initial purchasers, to purchase all, but not less
than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms
herein set forth; if, however, Merrill Lynch shall not have completed such arrangements within such
24-hour period, then:

     (a) if the number of Defaulted Securities does not exceed 10% of the aggregate
principal amount of the Securities to be purchased hereunder, each of the non-defaulting Initial
Purchasers shall be obligated, severally and not jointly, to purchase the full amount thereof in
the proportions that their respective underwriting obligations hereunder bear to the underwriting
obligations of all non-defaulting Initial Purchasers, or

22

 

     (b) if the number of Defaulted Securities exceeds 10% of the aggregate principal
amount of the Securities to be purchased hereunder, this Agreement shall terminate without
liability on the part of any non-defaulting Initial Purchaser.

     No action taken pursuant to this Section 11 shall relieve any defaulting Initial Purchaser
from liability in respect of its default.

     In the event of any such default which does not result in a termination of this Agreement,
either Merrill Lynch or the Company shall have the right to postpone the Closing Time for a period
not exceeding seven days in order to effect any required changes in the Offering Memorandum or in
any other documents or arrangements. As used herein, the term “Initial Purchaser” includes any
person substituted for an Initial Purchaser under this Section 11.

     SECTION 12. Tax Disclosure. Notwithstanding any other provision of this
Agreement, immediately upon commencement of discussions with respect to the transactions
contemplated hereby, the Company (and each employee, representative or other agent of the Company)
may disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials of any kind
(including opinions or other tax analyses) that are provided to the Company relating to such tax
treatment and tax structure. For purposes of the foregoing, the term “tax treatment” is the
purported or claimed federal income tax treatment of the transactions contemplated hereby, and the
term “tax structure” includes any fact that may be relevant to understanding the purported or
claimed federal income tax treatment of the transactions contemplated hereby.

     SECTION 13. Notices. All notices and other communications hereunder shall
be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard
form of telecommunication. Notices to the Initial Purchasers shall be directed to Merrill Lynch at
4 World Financial Center, New York, New York 10080, attention of Global Origination Counsel Group,
facsimile (212) 449-3207; and notices to the Company shall be directed to it at 2301 Patriot Blvd.,
Glenview, Illinois 60026, attention General Counsel, facsimile (224) 521-8604.

     SECTION 14. No Advisory or Fiduciary Relationship. The Company acknowledges
and agrees that (a) the purchase and sale of the Securities pursuant to this Agreement, including
the determination of the offering price of the Securities and any related discounts and
commissions, is an arm’s-length commercial transaction between the Company, on the one hand, and
the several Initial Purchasers, on the other hand, (b) in connection with the offering contemplated
hereby and the process leading to such transaction each Initial Purchaser is and has been acting
solely as a principal and is not the agent or fiduciary of the Company, or its stockholders,
creditors, employees or any other party, (c) no Initial Purchaser has assumed or will assume an
advisory or fiduciary responsibility in favor of the Company with respect to the offering
contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser
has advised or is currently advising the Company on other matters) and the Initial Purchaser has
any obligation to the Company with respect to the offering contemplated hereby except the
obligations expressly set forth in this Agreement, (d) the Initial Purchasers and their Affiliates
may be engaged in a broad range of transactions that involve interests that differ from those of
the Company, and (e) no Initial Purchaser has provided any legal, accounting, regulatory or tax
advice with respect to the offering contemplated hereby and the Company has consulted its own
legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.

     SECTION 15. Integration. This Agreement supersedes all prior agreements
and understandings (whether written or oral) between the Company and the Initial Purchasers, or any
of them, with respect to the subject matter hereof.

23

 

     SECTION 16. Parties. This Agreement shall inure to the benefit of and be
binding upon the Initial Purchasers and the Company and their respective successors. Nothing
expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm
or corporation, other than the Initial Purchasers and the Company and their respective successors
and the controlling persons and officers and directors referred to in Sections 7 and 8 and their
heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect
of this Agreement or any provision herein contained. This Agreement and all conditions and
provisions hereof are intended to be for the sole and exclusive benefit of the Initial Purchasers
and the Company and their respective successors, and said controlling persons and officers and
directors and their heirs and legal representatives, and for the benefit of no other person, firm
or corporation. No purchaser of Securities from any Initial Purchaser shall be deemed to be a
successor by reason merely of such purchase.

     SECTION 17. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     SECTION 18. TIME. TIME SHALL BE OF THE ESSENCE OF THIS AGREEMENT. EXCEPT
AS OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.

     SECTION 19. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Agreement.

     SECTION 20. Effect of Headings. The Section headings herein are for
convenience only and shall not affect the construction hereof.

24

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement between the Initial Purchasers and the Company in accordance with
its terms.

	 	 	 	 	 
	 	Very truly yours,

ANIXTER INTERNATIONAL INC.

 	 
	 	By:  	/s/ Rod Shoemaker
 	 
	 	 	Name:  	Rod Shoemaker 	 
	 	 	Title:  	VP — Treasurer 	 
	 

CONFIRMED AND ACCEPTED,

    as of the date first above written:

MERRILL LYNCH & CO.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

BANC OF AMERICA SECURITIES LLC

J.P. MORGAN SECURITIES INC.

WACHOVIA CAPITAL MARKETS, LLC

By: MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

	 	 	 	 	 
	By:

	 	/s/ Joe McIntosh	 	 
	 

	 	 

     Authorized Signatory
	 	 

For themselves and as representatives of the other Initial Purchasers named in Schedule A
hereto.

Signature
page to

 Purchase Agreement

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Principal	 
	 	 	Amount of	 
	Name of Initial Purchaser	 	Securities	 
	Merrill Lynch Pierce, Fenner & Smith Incorporated
	 	$	178,750,000	 
	Banc of America Securities LLC
	 	$	41,250,000	 
	J.P. Morgan Securities Inc.
	 	$	27,500,000	 
	Wachovia Capital Markets, LLC
	 	$	27,500,000	 
	 
	 	 	 	 
	Total
	 	$	275,000,000	 
	 
	 	 	 

B-1

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