Document:

exv10w3

Exhibit 10.3

PURCHASE AGREEMENT

April 1, 2011

Merrill Lynch, Pierce, Fenner & Smith Incorporated

       As Representative of the Initial Purchasers

One Bryant Park

New York, New York 10036

Ladies and Gentlemen:

     Introductory. Liz Claiborne, Inc., a Delaware corporation (the “Company”), proposes to issue
and sell to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) and the other
several Initial Purchasers named in Schedule A hereto (the “Initial Purchasers”), acting severally
and not jointly, the respective amounts set forth in such Schedule A of $205,000,000 aggregate
principal amount of the Company’s 10.50% Senior Secured Notes due 2019 (the “Notes”). Merrill
Lynch has agreed to act as the representative of the several Initial Purchasers (the
“Representative”) in connection with the offering and sale of the Notes.

     The Securities (as defined below) will be issued pursuant to an indenture, to be dated as of
the Closing Date (the “Indenture”), among the Company, the Guarantors (as defined below) and U.S.
Bank National Association, as trustee (the “Trustee”). Notes will be issued only in book-entry
form in the name of Cede & Co., as nominee of The Depository Trust Company (the “Depositary”)
pursuant to a letter of representations, to be dated on or before the Closing Date (as defined in
Section 2 hereof) (the “DTC Agreement”), among the Company, the Trustee and the Depositary.

     The holders of the Notes will be entitled to the benefits of a registration rights agreement,
to be dated as of the Closing Date (the “Registration Rights Agreement”), among the Company, the
Guarantors and the Initial Purchasers, pursuant to which the Company and the Guarantors will be
required to file with the Commission (as defined below), under the circumstances set forth therein,
(i) a registration statement under the Securities Act (as defined below) relating to another series
of debt securities of the Company with terms substantially identical to the Notes (the “Exchange
Notes”) to be offered in exchange for the Notes (the “Exchange Offer”) and (ii) a shelf
registration statement pursuant to Rule 415 of the Securities Act relating to the resale by certain
holders of the Notes, and in each case, to use its best efforts to cause such registration
statements to be declared effective. All references herein to the Exchange Notes and the Exchange
Offer are only applicable if the Company and the Guarantors are in fact required to consummate the
Exchange Offer pursuant to the terms of the Registration Rights Agreement.

     The payment of principal of, premium, if any, and interest on the Notes will be fully and
unconditionally guaranteed on a senior secured basis, jointly and severally by (i) the Company’s
subsidiaries listed on the signature pages hereof as “Guarantors” and (ii) any subsidiary of the
Company formed or acquired after the Closing Date that executes an additional guarantee in
accordance with the terms of the Indenture, and their respective successors and assigns
(collectively, the “Guarantors”), pursuant to their guarantees (the “Guarantees”). The Notes and
the Guarantees attached thereto are herein collectively referred to as the “Securities”; and the

 

 

Exchange Notes and the Guarantees attached thereto are herein collectively referred to as the
“Exchange Securities.”

     The Securities are being issued to (i) finance the Company’s cash tender offer (the “Tender
Offer”) for a portion of its 5.0% euro notes due July 2013 (the “Euro Notes”) and fees and expenses
incurred in connection therewith; and (ii) use the remaining proceeds for general corporate
purposes. The Tender Offer, the issuance and sale of the Notes, the issuance of the Guarantees and
the payment of transaction costs are referred to herein collectively, as the “Transactions.”

     The Securities will be secured on a first-priority basis, subject to Permitted Liens (as
defined in the Indenture), by first-priority liens on and security interests in the Notes Priority
Collateral (as defined in the Indenture, the “Notes Priority Collateral”) and by second-priority
liens on and security interests in the ABL Priority Collateral (as defined in the Indenture, the
“ABL Priority Collateral” and, together with the Notes Priority Collateral, the “Collateral”) and
documented by a security agreement, mortgages and other instruments evidencing or creating or
purporting to create a lien or security interest (collectively, the “Security Documents”) in favor
of U.S. Bank National Association, as collateral agent (in such capacity, the “Collateral Agent”),
for its benefit and the benefit of the Trustee, the holders of the Securities and the holders of
any Permitted Additional Pari Passu Obligations (as defined in the Preliminary Offering
Memorandum)(the “Permitted Additional Pari Passu Obligations”).

     The liens on the Collateral securing the Securities will be subject to an Intercreditor
Agreement, dated as of the Closing Date (the “Intercreditor Agreement”), by and between the
Collateral Agent and JPMorgan Chase Bank, N.A. as collateral agent (the “ABL Collateral Agent”)
under the Company’s Second Amended and Restated Credit Agreement dated as of May 6, 2010, among Liz
Claiborne Inc., Mexx Europe B.V., Liz Claiborne Canada Inc., the other Loan Parties from time to
time party thereto, the Lenders party thereto, the ABL Collateral Agent, Bank of America, N.A. and
SunTrust Bank, as Syndication Agents, and Wachovia Bank, National Association, as Documentation
Agent (the “ABL Facility”), and acknowledged by the Company and the Guarantors.

     This Agreement, the Registration Rights Agreement, the DTC Agreement, the Securities, the
Exchange Securities, the Security Documents, the Intercreditor Agreement and the Indenture are
referred to herein as the “Transaction Documents.” 

     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 in the Pricing Disclosure Package
(as defined below) and agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Securities to purchasers (the “Subsequent Purchasers”) on the
terms set forth in the Pricing Disclosure Package (the first time when sales of the Securities are
made is referred to as the “Time of Sale”). The Securities are to be offered and sold to or
through the Initial Purchasers without being registered with the Securities and Exchange Commission
(the “Commission”) under the Securities Act of 1933 (as amended, the “Securities Act,” which term,
as used herein, includes the rules and regulations of the Commission promulgated

 

 

thereunder), in reliance upon exemptions therefrom. Pursuant to the terms of the
Securities and the Indenture, investors who acquire Securities shall be deemed to have agreed that
Securities may only be resold or otherwise transferred, after the date hereof, if such Securities
are registered for sale under the Securities Act or if an exemption from the registration
requirements of the Securities Act is available (including the exemptions afforded by Rule 144A
under the Securities Act (“Rule 144A”) or Regulation S under the Securities Act (“Regulation S”).

     The Company has prepared and delivered to each Initial Purchaser copies of a Preliminary
Offering Memorandum, dated March 28, 2011 (the “Preliminary Offering Memorandum”), and has prepared
and delivered to each Initial Purchaser copies of a Pricing Supplement, dated April 1, 2011 and
attached hereto as Schedule B (the “Pricing Supplement”), describing the terms of the Securities,
each for use by such Initial Purchaser in connection with its solicitation of offers to purchase
the Securities. The Preliminary Offering Memorandum and the Pricing Supplement are herein referred
to as the “Pricing Disclosure Package.” Promptly after this Agreement is executed and delivered,
the Company will prepare and deliver to each Initial Purchaser a Final Offering Memorandum dated
the date hereof (the “Final Offering Memorandum”).

     All references herein to the terms “Pricing Disclosure Package” and “Final Offering
Memorandum” shall be deemed to mean and include all information filed under the Securities Exchange
Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder) prior to the Time of Sale and incorporated by
reference in the Pricing Disclosure Package (including the Preliminary Offering Memorandum) or the
Final Offering Memorandum (as the case may be), and all references herein to the terms “amend,”
“amendment” or “supplement” with respect to the Final Offering Memorandum shall be deemed to mean
and include all information filed under the Exchange Act after the Time of Sale and incorporated by
reference in the Final Offering Memorandum.

     The Company hereby confirms its agreements with the Initial Purchasers as follows:

     SECTION 1. Representations and Warranties. Each of the Company and the Guarantors, jointly
and severally, hereby represents, warrants and covenants to each Initial Purchaser that, as of the
date hereof and as of the Closing Date (references in this Section 1 to the “Offering Memorandum”
are to (x) the Pricing Disclosure Package in the case of representations and warranties made as of
the date hereof and (y) the Pricing Disclosure Package and the Final Offering Memorandum in the
case of representations and warranties made as of the Closing Date):

     (a) No Registration Required. Subject to compliance by the Initial Purchasers with the
representations and warranties set forth in Section 2 hereof and with the procedures set
forth in Section 7 hereof, 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 Offering Memorandum to register the Securities
under the Securities Act or, until such time as the Exchange Securities are issued pursuant
to an effective registration statement, to qualify the Indenture under the Trust Indenture
Act of 1939 (the “Trust Indenture Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder).

 

 

     (b) No Integration of Offerings or General Solicitation. Neither the Company, the
Guarantors nor any of their respective affiliates (as such term is defined in Rule 501 under
the Securities Act) (each, an “Affiliate”), or any person acting on its or any of their
behalf (other than the Initial Purchasers, as to whom the Company and the Guarantors make no
representation or warranty) has, directly or indirectly, solicited any offer to buy or
offered to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell,
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
Securities to be registered under the Securities Act. None of the Company, the Guarantors
nor any of their respective Affiliates, or any person acting on its or any of their behalf
(other than the Initial Purchasers, as to whom the Company and each Guarantor makes no
representation or warranty) 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 under the Securities Act. With respect to those Securities sold in
reliance upon Regulation S, (i) none of the Company, its Affiliates or any person acting on
its or their behalf (other than the Initial Purchasers, as to whom the Company makes no
representation or warranty) has engaged or will engage in any directed selling efforts
within the meaning of Regulation S and (ii) each of the Company and its Affiliates and any
person acting on its or their behalf (other than the Initial Purchasers, as to whom the
Company and each Guarantor makes no representation or warranty) has complied and will comply
with the offering restrictions set forth in Regulation S.

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

     (d) The Pricing Disclosure Package and Offering Memorandum. Neither the Pricing
Disclosure Package, as of the Time of Sale, nor the Final Offering Memorandum, as of its
date or (as amended or supplemented in accordance with Section 3(a), as applicable) as of
the Closing Date, contains or represents an untrue statement of a material fact or omits 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; provided that this representation,
warranty and agreement shall not apply to statements in or omissions from the Pricing
Disclosure Package, the Final Offering Memorandum or any amendment or supplement thereto
made in reliance upon and in conformity with information furnished to the Company in writing
by any Initial Purchaser through the Representative expressly for use in the Pricing
Disclosure Package, the Final Offering Memorandum or amendment or supplement thereto, as the
case may be. The Pricing Disclosure Package contains, and the Final Offering Memorandum
will contain, all the information specified in, and meeting the requirements of, Rule 144A.
The Company has not distributed and will not distribute, prior to the later of the Closing
Date and the completion of the Initial Purchasers’ distribution of the Securities, any
offering material in connection with the offering and sale of the Securities other than the
Pricing Disclosure Package and the Final Offering Memorandum.

 

 

     (e) Company Additional Written Communications. The Company has not prepared, made,
used, authorized, approved or distributed and will not prepare, make, use, authorize,
approve or distribute any written communication that constitutes an offer to sell or
solicitation of an offer to buy the Securities other than (i) the Pricing Disclosure
Package, (ii) the Final Offering Memorandum and (iii) any electronic road show or other
written communications, in each case used in accordance with Section 3(a). Each such
communication by the Company or its agents and representatives pursuant to clause (iii) of
the preceding sentence (each, a “Company Additional Written Communication”), when taken
together with the Pricing Disclosure Package, did not as of the Time of Sale, and at the
Closing Date will not, contain any 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; provided that this representation,
warranty and agreement shall not apply to statements in or omissions from each such Company
Additional Written Communication made in reliance upon and in conformity with information
furnished to the Company in writing by any Initial Purchaser through the Representative
expressly for use in any Company Additional Written Communication.

     (f) Incorporated Documents. The documents incorporated by reference in the Offering
Memorandum at the time they were or hereafter are filed with the Commission (collectively,
the “Incorporated Documents”) complied and will comply in all material respects with the
requirements of the Exchange Act.

     (g) The Purchase Agreement. This Agreement has been duly authorized, executed and
delivered by the Company and the Guarantors.

     (h) The Registration Rights Agreement and DTC Agreement. The Registration Rights
Agreement has been duly authorized and, on the Closing Date, will have been duly executed
and delivered by, and when duly executed and delivered in accordance with its terms by each
of the other parties thereto, will constitute a valid and binding agreement of, the Company
and the Guarantors, enforceable in accordance with its terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles and except as rights to indemnification may be limited by applicable
law. The DTC Agreement has been duly authorized and, on the Closing Date, will have been
duly executed and delivered by, and when duly executed and delivered in accordance with its
terms by each of the other parties thereto, will constitute a valid and binding agreement
of, the Company, enforceable in accordance with its terms, except as the enforcement thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable
principles.

     (i) Authorization of the Notes, the Guarantees and the Exchange Securities. The Notes
to be purchased by the Initial Purchasers from the Company will on the Closing Date be in
the form contemplated by the Indenture, have been duly authorized for issuance and sale
pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly
executed by the Company and, when authenticated in the manner

 

 

provided for in the Indenture and delivered against payment of the purchase price
therefor, will constitute valid and binding obligations of the Company, enforceable in
accordance with their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles and will be entitled to
the benefits of the Indenture. The Exchange Notes have been duly and validly authorized for
issuance by the Company, and when issued and authenticated in accordance with the terms of
the Indenture, the Registration Rights Agreement and the Exchange Offer, 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, reorganization, moratorium, or similar laws relating to or affecting enforcement
of the rights and remedies of creditors or by general principles of equity and will be
entitled to the benefits of the Indenture. The Guarantees of the Notes on the Closing Date
and the Guarantees of the Exchange Notes when issued will be in the respective forms
contemplated by the Indenture and have been duly authorized for issuance pursuant to this
Agreement and the Indenture; the Guarantees of the Notes, at the Closing Date, will have
been duly executed by each of the Guarantors and, when the Notes have been authenticated in
the manner provided for in the Indenture and issued and delivered against payment of the
purchase price therefor, the Guarantees of the Notes will constitute valid and binding
agreements of the Guarantors; and, when the Exchange Notes have been authenticated in the
manner provided for in the Indenture and issued and delivered in accordance with the
Registration Rights Agreement, the Guarantees of the Exchange Notes will constitute valid
and binding agreements of the Guarantors; in each case, enforceable in accordance with their
terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles and will be entitled to the
benefits of the Indenture.

     (j) Authorization of the Indenture. The Indenture has been duly authorized by the
Company and the Guarantors and, at the Closing Date, will have been duly executed and
delivered by the Company and the Guarantors and when duly executed and delivered in
accordance with its terms by each of the other parties thereto, will constitute a valid and
binding agreement of the Company and the Guarantors, enforceable against the Company and the
Guarantors in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles.

     (k) Authorization of the Intercreditor Agreement. The Intercreditor Agreement has been
duly authorized by the Company and each Guarantor and, at the Closing Date, will have been
duly executed and delivered by the Company and each Guarantor and when duly executed and
delivered in accordance with its terms by each of the other parties thereto, will constitute
a valid and binding agreement of the Company and each Guarantor, enforceable against the
Company and each Guarantor in accordance with its terms, except as the enforcement thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable
principles.

 

 

     (l) Security Documents. Each of the Security Documents has been duly authorized by the
Company and/or the applicable Guarantor, as appropriate, and, when executed and delivered by
the Company and/or the applicable Guarantor, and when duly executed and delivered in
accordance with its terms by each of the other parties thereto, will constitute a legal and
binding agreement of the Company and/or the applicable Guarantor in accordance with its
terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles. The Security Documents, when
executed and delivered in connection with the sale of the Securities, will create in favor
of the Collateral Agent for the benefit of itself, the Trustee, the holders of the
Securities and the holders of any Permitted Additional Pari Passu Obligations, valid and
enforceable security interests in and liens on the Collateral and, upon the filing or
recordation of mortgages and appropriate Uniform Commercial Code financing statements and
the taking of the other actions, in each case as further described in the Security
Documents, the security interests in and liens on the rights of the Company or the
applicable Guarantor in such Collateral will be perfected security interests and liens,
superior to and prior to the liens of all third persons other than the liens securing the
ABL Facility and Permitted Liens.

     (m) Description of the Transaction Documents. The Transaction Documents will conform
in all material respects to the respective statements relating thereto contained in the
Offering Memorandum.

     (n) No Material Adverse Change. Since the date of the most recent financial statements
of the Company included or incorporated by reference in the Offering Memorandum, (i) there
has not been any change in the capital stock, long-term debt, notes payable or current
portion of long-term debt of the Company or any of its subsidiaries, or any dividend or
distribution of any kind declared, set aside for payment, paid or made by the Company on any
class of capital stock, or any material adverse change, or any development that is
reasonably likely to result in a prospective material adverse change, in or affecting the
business, properties, management, financial position, stockholders’ equity, results of
operations or prospects of the Company and its subsidiaries taken as a whole; (ii) neither
the Company nor any of its subsidiaries has entered into any transaction or agreement that
is material to the Company and its subsidiaries taken as a whole or incurred any liability
or obligation, direct or contingent, that is material to the Company and its subsidiaries
taken as a whole; and (iii) neither the Company nor any of its subsidiaries has sustained
any material loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor disturbance or dispute or
any action, order or decree of any court or arbitrator or governmental or regulatory
authority, except, in each case, as otherwise disclosed in the Pricing Disclosure Package
and the Final Offering Memorandum.

     (o) Independent Accountants. Deloitte & Touche LLP, which expressed its opinion with
respect to the financial statements (which term as used in this Agreement includes the
related notes thereto) and supporting schedules filed with the Commission and incorporated
by reference in the Offering Memorandum is an independent registered public accounting firm
within the meaning of the Securities Act, the Exchange Act and

 

 

the rules of the Public Company Accounting Oversight Board, and any non-audit services
provided by Deloitte & Touche to the Company or any of the Guarantors have been approved by
the Audit Committee of the Board of Directors of the Company.

     (p) Preparation of the Financial Statements. The financial statements and the related
notes thereto of the Company and its consolidated subsidiaries included or incorporated by
reference in the Offering Memorandum present fairly in all material respects the financial
position of the Company and its consolidated subsidiaries as of the dates indicated and the
results of their operations and the changes in their cash flows for the periods specified;
such financial statements have been prepared in conformity with U.S. generally accepted
accounting principles applied on a consistent basis throughout the periods covered thereby;
and the other financial information included or incorporated by reference in the Offering
Memorandum has been derived from the accounting records of the Company and its consolidated
subsidiaries and presents fairly in all material respects the information shown thereby.
Nothing has come to the attention of the Company that has caused the Company to believe that
the statistical and market-related data included or incorporated by reference in the
Offering Memorandum is not based on or derived from sources that are reliable and accurate
in all material respects.

     (q) Incorporation and Good Standing of the Company and the Guarantors. The Company and
each of the Guarantors have been duly organized and are validly existing and in good
standing under the laws of their respective jurisdictions of organization, are duly
qualified to do business and are in good standing in each jurisdiction in which their
respective ownership or lease of property or the conduct of their respective businesses
requires such qualification, and have all power and authority necessary to own or hold their
respective properties and to conduct the businesses in which they are engaged, except where
the failure to be so qualified or in good standing or have such power or authority would
not, individually or in the aggregate, be reasonably expected to have a material adverse
effect on the business, properties, management, financial position, stockholders’ equity,
results of operations or prospects of the Company and its subsidiaries taken as a whole or
on the performance by the Company of its obligations under the Transaction Documents (a
“Material Adverse Effect”). The jurisdictions in which the Company is required to be
qualified to do business, except for those jurisdictions where the failure to be so
qualified would not have a Material Adverse Effect, are listed on Schedule B. The Company
does not own or control, directly or indirectly, any corporation, association or other
entity other than the subsidiaries listed in Schedule C to this Agreement.

     (r) Capitalization and Other Capital Stock Matters. At January 1, 2011, on a
consolidated basis, after giving pro forma effect to the issuance and sale of the Securities
pursuant hereto, the Company would have had an authorized and outstanding capitalization as
set forth in the Offering Memorandum under the caption “Capitalization” (other than for
subsequent issuances of capital stock, if any, pursuant to employee benefit plans described
in the Company’s filings with the Commission or upon exercise of outstanding convertible
securities, options or warrants described in the Company’s filings with the Commission).

 

 

     (s) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required. Neither the Company nor any of its subsidiaries is (i) in violation of its
charter or by-laws or similar organizational documents; (ii) in default, and no event has
occurred that, with notice or lapse of time or both, would constitute such a default, in the
due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which the
Company or any of its subsidiaries is a party or by which the Company or any of its
subsidiaries is bound or to which any of the property or assets of the Company or any of its
subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order,
rule or regulation of any court or arbitrator or governmental or regulatory authority,
except, in the case of clauses (ii) and (iii) above, for any such default or violation that
would not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect or that is disclosed in the Offering Memorandum. Assuming the accuracy of,
and the compliance with, the representations, warranties and agreements set forth in this
Agreement, the execution, delivery and performance by the Company of each of the Transaction
Documents, the issuance and sale of the Securities and the consummation of the transactions
contemplated by the Transaction Documents or the Offering Memorandum will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, or result in the creation or imposition of any lien, charge or encumbrance
upon any property or assets of the Company or any of its subsidiaries pursuant to, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which
the Company or any of its subsidiaries is a party or by which the Company or any of its
subsidiaries is bound or to which any of the property or assets of the Company or any of its
subsidiaries is subject (except as otherwise described in the Offering Memorandum), (ii)
result in any violation of the provisions of the charter or by-laws or similar
organizational documents of the Company or any of its subsidiaries or (iii) result in the
violation of any law or statute or any judgment, order, rule or regulation of any court or
arbitrator or governmental or regulatory authority, except where such default, violation,
lien, charge or encumbrance (in the case of (i) or (iii)) would not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect. Except as disclosed in
the Offering Memorandum with respect to the Tender Offer, and assuming the accuracy of, and
the compliance with, the representations, warranties and agreements set forth in this
Agreement, no consent, approval, authorization, order, registration or qualification of or
with any court or arbitrator or governmental or regulatory authority is required for the
execution, delivery and performance of the Transaction Documents by the Company and the
Guarantors to the extent a party thereto, or the issuance and delivery of the Securities or
the Exchange Securities, or consummation of the transactions contemplated hereby and thereby
and by the Offering Memorandum, except (A) such as have been obtained or made by the Company
and the Guarantors, as applicable, and are in full force and effect under the Securities
Act, applicable securities laws of the several states of the United States or provinces of
Canada and except such as may be required by the securities laws of the several states of
the United States or provinces of Canada with respect to the Company’s obligations under the
Registration Rights Agreement and (B) filings of financing statements under the Uniform
Commercial Code (the “UCC”) as from time to time in effect in the relevant jurisdictions

 

 

and any filing to be made in the United States Patent and Trademark Office or the
United States Copyright Office.

     (t) Legal Proceedings. Except as disclosed in the Offering Memorandum, there are no
legal, governmental or regulatory investigations, actions, suits or proceedings pending to
which the Company or any of its subsidiaries is or may be a party or to which any property
of the Company or any of its subsidiaries is or may be the subject that, individually or in
the aggregate, would reasonably be expected to have a Material Adverse Effect; no such
investigations, actions, suits or proceedings are threatened or, to the knowledge of the
Company, contemplated by any governmental or regulatory authority or threatened by others.

     (u) Title to Intellectual Property. Except as disclosed in the Offering Memorandum,
(i) the Company and its subsidiaries own or possess adequate rights to use all patents,
patent applications, trademarks, service marks, trade names, trademark registrations,
service mark registrations, copyrights, licenses and know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information, systems or
procedures) necessary for the conduct of their respective businesses; and (ii) the conduct
of their respective businesses will not conflict in any material respect with any such
rights of others, and the Company and its subsidiaries have not received any notice of any
claim of infringement of or conflict with any such rights of others, except, in each case of
(i) and (ii), as would not, individually or in the aggregate, be reasonably expected to have
a Material Adverse Change.

     (v) All Necessary Permits, etc. The Company and its subsidiaries possess all licenses,
certificates, permits and other authorizations issued by, and have made all declarations and
filings with, the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or
the conduct of their respective businesses as described in the Offering Memorandum, except
where the failure to possess or make the same would not, individually or in the aggregate,
have a Material Adverse Effect; and except as disclosed in the Offering Memorandum, neither
the Company nor any of its subsidiaries has received notice of any revocation or
modification of any such license, certificate, permit or authorization or has any reason to
believe that any such license, certificate, permit or authorization will not be renewed in
the ordinary course, except as would not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect.

     (w) Title to Real and Personal Property. The Company and its subsidiaries have good
and valid title in fee simple to, or have valid rights to lease or otherwise use, all items
of real and personal property that are material to the respective businesses of the Company
and its subsidiaries, in each case free and clear of all liens, encumbrances, claims and
defects and imperfections of title except those that (i) do not materially interfere with
the use made and proposed to be made of such property by the Company and its subsidiaries or
(ii) would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect.

 

 

     (x) Tax Law Compliance. The Company and its subsidiaries have paid all federal, state,
local and foreign taxes and filed all tax returns required to be paid or filed through the
date hereof, except where the failure to so pay or so file would not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect; and except as otherwise
disclosed in the Offering Memorandum or as would not, individually or in the aggregate, be
reasonably expected to have a Material Adverse Effect, there is no tax deficiency that has
been, or could reasonably be expected to be, asserted against the Company or any of its
subsidiaries or any of their respective properties or assets.

     (y) Company and Guarantors Not an “Investment Company.” The Company has been advised
of the rules and requirements under the Investment Company Act of 1940, as amended (the
“Investment Company Act,” which term, as used herein, includes the rules and regulations of
the Commission promulgated thereunder). Neither the Company nor any Guarantor is, or after
receipt of payment for the Securities will be, an “investment company” within the meaning of
the Investment Company Act and will conduct its business in a manner so that it will not
become subject to the Investment Company Act.

     (z) Insurance. The Company and its subsidiaries have insurance covering their
respective properties, operations, personnel and businesses, including but not limited to
business interruption insurance, which insurance is in amounts and insures against such
losses and risks as are adequate to protect the Company and its subsidiaries and their
respective businesses, except as would not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect; and neither the Company nor any of its
subsidiaries has (i) received notice from any insurer or agent of such insurer that capital
improvements or other expenditures are required or necessary to be made in order to continue
such insurance or (ii) any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage at
reasonable cost from similar insurers as may be necessary to continue its business, except
as would not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect.

     (aa) No Price Stabilization or Manipulation. The Company and the Guarantors have not
taken, directly or indirectly, any action designed to or that could reasonably be expected
to cause or result in any stabilization or manipulation of the price of the Securities.

     (bb) Solvency. (a) The Company is and (b) the Guarantors, on a consolidated basis,
are, and immediately after the Closing Date will be, Solvent. As used herein, the term
“Solvent” means, with respect to any person on a particular date, that on such date (i) the
fair market value of the assets of such person is greater than the total amount of
liabilities (including contingent liabilities) of such person, (ii) the present fair salable
value of the assets of such person is greater than the amount that will be required to pay
the probable liabilities of such person on its debts as they become absolute and matured,
(iii) such person is able to realize upon its assets and pay its debts and other
liabilities, including contingent obligations, as they mature and (iv) such person does not
have unreasonably small capital As of the date hereof and at the Closing Date, neither the
Company nor

 

 

any of the Guarantors has, and will have, incurred debts beyond its ability to pay such
debts as they mature, taking into account the timing of and amounts of cash to be received
by it and the timing of the amounts of cash to be payable on or in respect of its
indebtedness.

     (cc) Compliance with Sarbanes-Oxley. There is and has been no failure on the part of
the Company or (to the knowledge of the Company) any of the Company’s directors or officers,
in their capacities as such, to comply 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.

     (dd) Company’s Accounting System. The Company and its subsidiaries maintain systems of
“internal control over financial reporting” (as defined in Rule l3a-15(f) of the Exchange
Act) that comply with the requirements of the Exchange Act and have been designed by, or
under the supervision of, their respective principal executive and principal financial
officers, or persons performing similar functions, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles, including,
but not limited to policies and procedures that (i) pertain to the maintenance of records
that in reasonable detail accurately and fairly reflect the transactions and dispositions of
the assets of the Company, (ii) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company’s assets that could have a material effect on
the financial statements. Except as disclosed in the Offering Memorandum, there are no
“material weaknesses” (as defined in Rule 1-02(a)(4) of Regulation S-X) in the Company’s
internal control over financial reporting. The Company’s auditors and the Audit Committee
of the Board of Directors of the Company have been advised of: (i) all “significant
deficiencies” and “material weaknesses” (as defined in Rule 1-02(a)(4) of Regulation S-X) in
internal control over financial reporting; and (ii) any fraud, whether or not material, that
involves management or other employees who have a significant role in the Company’s internal
control over financial reporting.

     (ee) Disclosure Controls and Procedures. The Company and its subsidiaries maintain an
effective system of disclosure controls and procedures” (as defined in Rule l3a-15(e) of the
Exchange Act) that is designed to ensure that information required to be disclosed by the
Company in reports that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the Commission’s rules and
forms, including controls and procedures designed to ensure that such information required
to be disclosed in such reports is accumulated and communicated to the Company’s management
as appropriate to allow timely decisions regarding required disclosure. The Company and its
subsidiaries have carried out evaluations of the

 

 

effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of
the Exchange Act.

     (ff) Regulations T, U, X. Neither the issuance, sale and delivery of the Securities
nor the application of the proceeds thereof by the Company as described in the Offering
Memorandum will violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System or any other regulation of such Board of Governors.

     (gg) Compliance with Environmental Laws. (i) The Company and its subsidiaries (x) are,
and at all prior times were, in compliance with any and all applicable federal, state, local
and foreign laws, rules, regulations, requirements, decisions and orders relating to the
protection of human health or safety, the environment, natural resources, hazardous or toxic
substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”), (y)
have received and are in compliance with all permits, licenses, certificates or other
authorizations or approvals required of them under applicable Environmental Laws to conduct
their respective businesses, and (z) have not received notice of any actual or potential
liability under or relating to any Environmental Laws, including for the investigation or
remediation of any disposal or release of hazardous or toxic substances or wastes,
pollutants or contaminants, and have no knowledge of any event or condition that would
reasonably be expected to result in any such notice, and (ii) there are no costs or
liabilities associated with Environmental Laws of or relating to the Company or its
subsidiaries; except in the case of each of (i) and (ii) above, for any such failure to
comply, or failure to receive required permits, licenses or approvals, or cost or liability,
as would not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Change; and (iii) except as disclosed in the Offering Memorandum, (x) there are no
proceedings that are pending, or that are known to be contemplated, against the Company or
any of its subsidiaries under any Environmental Laws in which a governmental entity is also
a party, other than such proceedings regarding which it is reasonably believed no monetary
sanctions of $100,000 or more will be imposed, (y) the Company and its subsidiaries are not
aware of any issues regarding compliance with Environmental Laws, or liabilities or other
obligations under Environmental Laws or concerning hazardous or toxic substances or wastes,
pollutants or contaminants, that would reasonably be expected to have a Material Adverse
Change, and (z) none of the Company and its subsidiaries anticipates material capital
expenditures relating to any Environmental Laws.

     (hh) Hazardous Substances. Except as disclosed in the Offering Memorandum, there has
been no storage, generation, transportation, handling, treatment, disposal, discharge,
emission, or other release of any kind of toxic wastes or hazardous substances, including,
but not limited to, any naturally occurring radioactive materials, brine, drilling mud,
crude oil, natural gas liquids and other petroleum materials, by, due to or caused by the
Company or any of its subsidiaries (or, to the best of the Company’s knowledge, any other
entity (including any predecessor) for whose acts or omissions the Company or any of its
subsidiaries is or could reasonably be expected to be liable) upon any of the property now
or previously owned or leased by the Company or any of its subsidiaries, or upon any other
property, in violation of any Environmental Laws or in a manner or to a location that could
reasonably be expected to give rise to any liability under the

 

 

Environmental Laws, except for any violation or liability which would not, individually or
in the aggregate, be reasonably expected to have a Material Adverse Effect.

     (ii) Compliance with ERISA. Except as disclosed in the Offering Memorandum, (i) each
employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), for which the Company or any member of its
“Controlled Group” (defined as any organization which is a member of a controlled group of
corporations within the meaning of Section 414 of the Internal Revenue Code of 1986, as
amended (the “Code”)) would have any liability (each, a “Plan”) has been maintained in
compliance with its terms and the requirements of any applicable statutes, orders, rules and
regulations, including but not limited to ERISA and the Code; (ii) no prohibited
transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has
occurred with respect to any Plan excluding transactions effected pursuant to a statutory or
administrative exemption; (iii) for each Plan that is subject to the funding rules of
Section 412 of the Code or Section 302 of ERISA, no failure to satisfy the minimum funding
standards of Section 412 of the Code or Section 302 of ERISA, has occurred or is reasonably
expected to occur; (iv) the fair market value of the assets of each Plan exceeds the present
value of all benefits accrued under such Plan (determined based on those assumptions used to
fund such Plan); (v) no “reportable event” (within the meaning of Section 4043(c) of ERISA)
has occurred or is reasonably expected to occur; and (vi) neither the Company nor any member
of the Controlled Group has incurred, nor reasonably expects to incur, any liability under
Title IV of ERISA (other than contributions to the Plan or premiums to the PBGC, in the
ordinary course and without default) in respect of a Plan (including a “multiemployer plan”,
within the meaning of Section 4001(a)(3) of ERISA), except as would not, individually or in
the aggregate, be reasonably expected to have a Material Adverse Effect.

     (jj) No Labor Disputes. Except as disclosed in the Offering Memorandum, no labor
disturbance by or dispute with employees of the Company or any of its subsidiaries exists
or, to the best knowledge of the Company, is contemplated or threatened and the Company is
not aware of any existing or imminent labor disturbance by, or dispute with, the employees
of any of its or its subsidiaries’ principal suppliers, contractors or customers, except as
would not be reasonably expected to have a Material Adverse Effect.

     (kk) Related Party Transactions. No relationship, direct or indirect, exists between
or among the Company or any of its subsidiaries, on the one hand, and the directors,
officers, stockholders, customers or suppliers of the Company or any of its subsidiaries, on
the other, that is required by Item 404 of Regulation S-K of the Securities Act to be
described in a registration statement to be filed with the Commission and that is not so
described in the Offering Memorandum.

     (ll) No Unlawful Contributions or Other Payments. Neither the Company nor any of its
subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or
affiliate 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 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, its
subsidiaries 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.

     “FCPA” means Foreign Corrupt Practices Act of 1977, as amended, and the rules and
regulations thereunder.

     (mm) No Conflict with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times 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 applicable
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 involving the Company
or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the
best knowledge of the Company, threatened.

     (nn) No Conflict with OFAC Laws. Neither the Company nor any of its subsidiaries nor,
to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the
Company or any of its subsidiaries 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.

     (oo) Regulation S. The Company, the Guarantors and their respective Affiliates and all
persons acting on their behalf (other than the Initial Purchasers, as to whom the Company
and the Guarantors make no representation) have complied with and will comply with the
offering restrictions requirements of Regulation S in connection with the offering of the
Securities outside the United States and, in connection therewith, the Final Offering
Memorandum will contain the disclosure required by Rule 902. The Company is a “reporting
issuer,” as defined in Rule 902 under the Securities Act.

Any certificate signed by an officer of the Company or any Guarantor and delivered to the Initial
Purchasers or to counsel for the Initial Purchasers shall be deemed to be a representation and
warranty by the Company or such Guarantor to each Initial Purchaser as to the matters set forth
therein.

     SECTION 2. Purchase, Sale and Delivery of the Securities.

 

 

     (a) The Securities. Each of the Company and the Guarantors agrees to issue and sell to the
Initial Purchasers, severally and not jointly, all of the Securities, and, subject to the
conditions set forth herein, the Initial Purchasers agree, severally and not jointly, to purchase
from the Company and the Guarantors the aggregate principal amount of Securities set forth opposite
their names on Schedule A hereto, at a purchase price of 98% of the principal amount thereof
payable on the Closing Date, in each case, on the basis of the representations, warranties and
agreements herein contained, and upon the terms herein set forth.

     (b) The Closing Date. Delivery of certificates for the Notes in definitive form to be
purchased by the Initial Purchasers and payment therefor shall be made at the offices of Cahill
Gordon & Reindel llp, 80 Pine Street, New York, New York 10005 (or such other place as may
be agreed to by the Company and Merrill Lynch) at 9:00 a.m. New York City time, on April 7, 2011,
or such other time and date as Merrill Lynch shall designate by notice to the Company (the time and
date of such closing are called the “Closing Date”).

     (c) Delivery of the Securities. The Company shall deliver, or cause to be delivered, to
Merrill Lynch for the accounts of the several Initial Purchasers certificates for the Notes at the
Closing Date against the irrevocable release of a wire transfer of immediately available funds for
the amount of the purchase price therefor. The certificates for the Notes shall be in such
denominations and registered in the name of Cede & Co., as nominee of the Depositary, pursuant to
the DTC Agreement, and shall be made available for inspection on the business day preceding the
Closing Date at a location in New York City, as Merrill Lynch may designate. Time shall be of the
essence, and delivery at the time and place specified in this Agreement is a further condition to
the obligations of the Initial Purchasers.

     (d) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser severally
and not jointly represents and warrants to, and agrees with, the Company that:

     (i) it will offer and sell Securities only to (a) persons who it reasonably believes
are “qualified institutional buyers” within the meaning of Rule 144A (“Qualified
Institutional Buyers”) in transactions meeting the requirements of Rule 144A or (b) upon the
terms and conditions set forth in Annex I to this Agreement;

     (ii) it is an institutional “accredited investor” within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act; and

     (iii) it will not offer or sell Securities by, any form of general solicitation or
general advertising, including but not limited to the methods described in Rule 502(c) under
the Securities Act.

     SECTION 3. Additional Covenants. Each of the Company and the Guarantors, jointly and
severally, further covenants and agrees with each Initial Purchaser as follows:

     (a) Preparation of Final Offering Memorandum; Initial Purchasers’ Review of Proposed
Amendments and Supplements and Company Additional Written Communications. As promptly as
practicable following the Time of Sale and in any event not later than the second business
day following the date hereof, the Company will prepare and deliver to the Initial
Purchasers the Final Offering Memorandum, which shall

 

 

consist of the Preliminary Offering Memorandum as modified only by the information
contained in the Pricing Supplement except in accordance with Section 3(b) hereof. The
Company will not amend or supplement the Preliminary Offering Memorandum or the Pricing
Supplement. The Company will not amend or supplement the Final Offering Memorandum prior to
the Closing Date unless the Representative shall previously have been furnished a copy of
the proposed amendment or supplement at least two business days prior to the proposed use or
filing, and shall not have objected to such amendment or supplement. Before making,
preparing, using, authorizing, approving or distributing any Company Additional Written
Communication, the Company will furnish to the Representative a copy of such written
communication for review and will not make, prepare, use, authorize, approve or distribute
any such written communication to which the Representative reasonably objects.

     (b) Amendments and Supplements to the Pricing Disclosure Package and the Final Offering
Memorandum. If at any time prior to the Closing Date (i) any event shall occur or condition
shall exist as a result of which the Pricing Disclosure Package as then amended or
supplemented would include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading or (ii) it is necessary to amend or
supplement the Pricing Disclosure Package to comply with law, the Company will immediately
notify the Initial Purchasers thereof and forthwith prepare and (subject to Section 3(a)
hereof) furnish to the Initial Purchasers such amendments or supplements to the Pricing
Disclosure Package as may be necessary so that the statements in the Pricing Disclosure
Package as so amended or supplemented will not, in the light of the circumstances under
which they were made, be misleading or so that the Pricing Disclosure Package will comply
with all applicable law. If, prior to the completion of the placement of the Securities by
the Initial Purchasers with the Subsequent Purchasers, any event shall occur or condition
exist as a result of which it is necessary to amend or supplement the Final Offering
Memorandum, as then amended or supplemented, in order to make the statements therein, in the
light of the circumstances when the Final Offering Memorandum is delivered to a Subsequent
Purchaser, not misleading, or if in the judgment of the Representative or counsel for the
Initial Purchasers it is otherwise necessary to amend or supplement the Final Offering
Memorandum to comply with law, the Company agrees to promptly prepare (subject to Section
3(a) hereof) and furnish at its own expense to the Initial Purchasers, amendments or
supplements to the Final Offering Memorandum so that the statements in the Final Offering
Memorandum as so amended or supplemented will not, in the light of the circumstances at the
Closing Date and at the time of sale of the Securities, be misleading or so that the Final
Offering Memorandum, as amended or supplemented, will comply with all applicable law.

     (c) Copies of the Final Offering Memorandum. The Company agrees to furnish the Initial
Purchasers, without charge, as many copies of the Pricing Disclosure Package and the Final
Offering Memorandum and any amendments and supplements thereto as they shall reasonably
request.

     (d) Blue Sky Compliance. Each of the Company and the Guarantors shall cooperate with
the Representative and counsel for the Initial Purchasers to qualify or register

 

 

(or to obtain exemptions from qualifying or registering) all or any part of the
Securities for offer and sale under the securities laws of the several states of the United
States, the provinces of Canada or any other jurisdictions designated by the Representative,
shall comply with such laws and shall continue such qualifications, registrations and
exemptions in effect so long as required for the distribution of the Securities. None of
the Company or any of the Guarantors shall be required to qualify as a foreign corporation
or to take any action that would subject it to general service of process in any such
jurisdiction where it is not presently qualified or where it would be subject to taxation as
a foreign corporation. The Company will advise the Representative promptly of the
suspension of the qualification or registration of (or any such exemption relating to) the
Securities for offering, sale or trading in any jurisdiction or any initiation or threat of
any proceeding for any such purpose, and in the event of the issuance of any order
suspending such qualification, registration or exemption, each of the Company and the
Guarantors shall use its best efforts to obtain the withdrawal thereof at the earliest
possible moment.

     (e) Use of Proceeds. The Company shall apply the net proceeds from the sale of the
Securities sold by it in the manner described under the caption “Use of Proceeds” in the
Pricing Disclosure Package.

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

     (g) Additional Issuer Information. Prior to the completion of the placement of the
Securities by the Initial Purchasers with the Subsequent Purchasers, the Company shall file,
on a timely basis, with the Commission and the NYSE all reports and documents required to be
filed under Section 13 or 15 of the Exchange Act, in accordance with the Indenture.
Additionally, at any time when the Company is not subject to Section 13 or 15 of the
Exchange Act, for the benefit of holders and beneficial owners from time to time of the
Securities, the Company shall furnish, at its expense, upon request, to holders and
beneficial owners of Securities and prospective purchasers of Securities information
(“Additional Issuer Information”) satisfying the requirements of Rule 144A(d), in accordance
with the Indenture.

     (h) Agreement Not To Offer or Sell Additional Securities. During the period of 180
days following the date hereof, the Company will not, without the prior written consent of
Merrill Lynch (which consent may be withheld at the sole discretion of Merrill Lynch),
directly or indirectly, sell, offer, contract or grant any option to sell, pledge, transfer
or establish an open “put equivalent position” within the meaning of Rule 16a-1 under the
Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any
registration statement under the Securities Act in respect of, any debt securities of the
Company or securities exchangeable for or convertible into debt securities of the Company
(other than as contemplated by this Agreement and to register the Exchange Securities).

     (i) Future Reports to the Initial Purchasers. At any time when the Company is not
subject to Section 13 or 15 of the Exchange Act and any Securities or

 

 

Exchange Securities remain outstanding, the Company will furnish to the Representative
and, upon request, to each of the other Initial Purchasers all reports required under the
Indenture to be delivered to holders of the Notes, if such documents are not filed with the
Commission within the time periods specified by the Commission’s rules and regulations under
Section 13 or 15 of the Exchange Act.

     (j) No Integration. The Company agrees that it will not and will cause its Affiliates
not to make any offer or sale of securities of the Company of any class if, as a result of
the doctrine of “integration” referred to in Rule 502 under the Securities 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 Securities Act
provided by Section 4(2) thereof or by Rule 144A or by Regulation S thereunder or otherwise.

     (k) No General Solicitation or Directed Selling Efforts. The Company agrees that it
will not and will not permit any of its Affiliates or any other person acting on its or
their behalf (other than the Initial Purchasers, as to which no covenant is given) to (i)
solicit offers for, or offer or sell, the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in
any manner involving a public offering within the meaning of Section 4(2) of the Securities
Act or (ii) engage in any directed selling efforts with respect to the Securities within the
meaning of Regulation S, and the Company will and will cause all such persons to comply with
the offering restrictions requirement of Regulation S with respect to the Securities.

     (l) No Restricted Resales. The Company will not, and will not permit any of its
affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Notes that
have been reacquired by any of them.

     (m) Legended Securities. Each certificate for a Security Note will bear the legend
contained in “Transfer Restrictions” in the Preliminary Offering Memorandum for the time
period and upon the other terms stated in the Preliminary Offering Memorandum.

     (n) Notwithstanding anything to the contrary contained in this Agreement, the Indenture
or the Security Documents, the Company and the applicable subsidiaries shall take the
actions specified in Schedule E within the time period set forth therein. The
provisions of said Schedule E shall be deemed incorporated by reference herein as
fully as if set forth herein in their entirety.

     The Representative on behalf of the several Initial Purchasers, may, in its sole discretion,
waive in writing the performance by the Company or any Guarantor of any one or more of the
foregoing covenants or extend the time for their performance.

 

 

     SECTION 4. Payment of Expenses. Each of the Company and the Guarantors, jointly and
severally, agrees to pay all costs, fees and expenses incurred in connection with the performance
of its obligations hereunder and in connection with the transactions contemplated hereby,
including, without limitation, (i) all expenses incident to the issuance and delivery of the
Securities (including all printing and engraving costs), (ii) all necessary issue, transfer and
other stamp taxes in connection with the issuance and sale of the Securities to the Initial
Purchasers, (iii) all fees and expenses of the Company’s and the Guarantors’ counsel, independent
public or certified public accountants and other advisors, (iv) all costs and expenses incurred in
connection with the preparation, printing, filing, shipping and distribution of the Pricing
Disclosure Package and the Final Offering Memorandum (including financial statements and exhibits),
and all amendments and supplements thereto, and the Transaction Documents, (v) all filing fees,
attorneys’ fees and expenses incurred by the Company, the Guarantors or the Initial Purchasers in
connection with qualifying or registering (or obtaining exemptions from the qualification or
registration of) all or any part of the Securities for offer and sale under the securities laws of
the several states of the United States, the provinces of Canada or other jurisdictions designated
by the Initial Purchasers (including, without limitation, the cost of preparing, printing and
mailing preliminary and final blue sky or legal investment memoranda and any related supplements to
the Pricing Disclosure Package or the Final Offering Memorandum, (vi) the fees and expenses of the
Trustee, including the fees and disbursements of counsel for the Trustee in connection with the
Indenture, the Security Documents, the Intercreditor Agreement, the Securities and the Exchange
Securities, (vii) any fees payable in connection with the rating of the Securities or the Exchange
Securities with the ratings agencies, (viii) any filing fees incident to, and any reasonable fees
and disbursements of counsel to the Initial Purchasers in connection with the review by FINRA, if
any, of the terms of the sale of the Securities or the Exchange Securities and in connection with
perfecting the security interests in the Collateral (ix) all fees and expenses (including
reasonable fees and expenses of counsel) of the Company and the Guarantors in connection with
approval of the Securities by the Depositary for “book-entry” transfer, and the performance by the
Company and the Guarantors of their respective other obligations under this Agreement, (x) all
expenses incident to the “road show” for the offering of the Securities (provided that the Initial
Purchasers shall be responsible for half of the cost of any chartered aircraft) and (xi) all
reasonable out of pocket costs and expenses (including, without limitation, reasonable fees,
disbursements and other charges of legal counsel) incurred in connection with the creation,
documentation and perfection of the security interests in the Collateral. Except as expressly
provided in this Section 4 and Sections 6, 8 and 9 hereof, the Initial Purchasers shall pay their
own expenses, including the fees and disbursements of their counsel.

     SECTION 5. Conditions of the Obligations of the Initial Purchasers. The obligations of the
several Initial Purchasers to purchase and pay for the Securities as provided herein on the Closing
Date shall be subject to the accuracy of the representations and warranties on the part of the
Company and the Guarantors set forth in Section 1 hereof as of the date hereof and as of the
Closing Date as though then made and to the timely performance by the Company of its covenants and
other obligations hereunder, and to each of the following additional conditions:

     (a) Accountants’ Comfort Letter. On the date hereof, the Initial Purchasers shall have
received from Deloitte & Touche LLP, the independent registered public accounting firm for
the Company, a “comfort letter” dated the date hereof addressed to the Initial Purchasers,
in form and substance satisfactory to the Representative, covering the

 

 

financial information in the Pricing Disclosure Package and other customary matters.
In addition, on the Closing Date, the Initial Purchasers shall have received from such
accountants a “bring-down comfort letter” dated the Closing Date addressed to the Initial
Purchasers, in form and substance satisfactory to the Representative, in the form of the
“comfort letter” delivered on the date hereof, except that (i) it shall cover the financial
information in the Final Offering Memorandum and any amendment or supplement thereto and
(ii) procedures shall be brought down to a date no more than 3 days prior to the Closing
Date.

     (b) No Material Adverse Change or Ratings Agency Change. For the period from and after
the date of this Agreement and prior to the Closing Date:

     (i) no event or condition of a type described in Section 1(n) hereof shall have
occurred or shall exist, which event or condition is not disclosed in the Pricing
Disclosure Package (excluding any amendment or supplement thereto) and the Final
Offering Memorandum (excluding any amendment or supplement thereto) and the effect
of which in the judgment of the Representative makes it impracticable or inadvisable
to proceed with the offering, sale or delivery of the Securities on the Closing
Date, on the terms and in the manner contemplated by this Agreement, the Pricing
Disclosure Package and the Final Offering Memorandum; and

     (ii) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a possible
change that does not indicate the direction of the possible change, in the rating
accorded the Company or any of its subsidiaries or any of their securities or
indebtedness by any “nationally recognized statistical rating organization” as such
term is defined for purposes of Rule 436 under the Securities Act.

     (c) Opinion of Counsel for the Company. On the Closing Date, the Initial Purchasers
shall have received an opinion of (i) Paul, Weiss, Rifkind, Wharton & Garrison, counsel for
the Company, dated as of such Closing Date, the form of which is attached as Exhibit A-1,
(ii) Nicholas Rubino, General Counsel of the Company, the form of which is attached as
Exhibit A-2 and (iii) opinions of local counsel in California and Washington, dated as of
the Closing Date, the forms of which are attached as Exhibits A-3 and A-4.

     (d) Opinion of Counsel for the Initial Purchasers. On the Closing Date, the Initial
Purchasers shall have received the favorable opinion of Cahill Gordon & Reindel
llp, counsel for the Initial Purchasers, dated as of such Closing Date, with
respect to such matters as may be reasonably requested by the Initial Purchasers.

     (e) Officers’ Certificate. On the Closing Date, the Initial Purchasers shall have
received a written certificate executed by the Chairman of the Board, Chief Executive
Officer or President of the Company and each Guarantor and the Chief Financial Officer or
Chief Accounting Officer of the Company and each Guarantor, dated as of the

 

 

Closing Date, to the effect set forth in Section 5(b)(i) and (ii) hereof, and further
to the effect that:

     (i) the representations, warranties and covenants of the Company and the
Guarantors set forth in Section 1 hereof were true and correct as of the date hereof
and are true and correct as of the Closing Date with the same force and effect as
though expressly made on and as of the Closing Date; and

     (ii) the Company has complied with all the agreements and satisfied all the
conditions on its part to be performed or satisfied at or prior to the Closing Date.

     (f) Indenture; Registration Rights Agreement. The Company and the Guarantors shall
have executed and delivered the Indenture, in form and substance reasonably satisfactory to
the Initial Purchasers, and the Initial Purchasers shall have received executed copies
thereof. The Company and the Guarantors shall have executed and delivered the Registration
Rights Agreement, in form and substance reasonably satisfactory to the Initial Purchasers,
and the Initial Purchasers shall have received such executed counterparts.

     (g) Security Documents and Intercreditor Agreement. The Company and the Guarantors
shall have executed and delivered perfection certificates dated as of the Closing Date (the
“Perfection Certificates”) in form and substance reasonably satisfactory to the Initial
Purchasers. Except as otherwise provided for in the Security Agreement, the Indenture or
the other documents entered into pursuant to the Transactions, the Representative and the
Collateral Agent shall have received each of the Security Documents and the Intercreditor
Agreement, in form and substance reasonably satisfactory to the Initial Purchasers, and all
other certificates, agreements or instruments necessary to perfect the Collateral Agent’s
security interest in all of the Collateral, including but not limited to, UCC financing
statements in appropriate form for filing and filings with the United States Patent and
Trademark Office and United States Copyright Office in appropriate form for filing; each
such document executed by the Company and each other party thereto, and each such document
shall be in full force and effect and evidence that all of the liens on the Collateral other
than Permitted Liens have been released. The Representative shall also have received (i)
certified copies of UCC, tax and judgment lien searches or equivalent reports or searches,
each of a recent date listing all effective financing statements, lien notices or comparable
documents that name the Company or any Guarantor as debtor and that are required by the
Perfection Certificates or that the Representative deem necessary or appropriate, none of
which encumber the Notes Priority Collateral covered or intended to be covered by the
Security Documents (other than Permitted Liens) and (ii) acceptable evidence of payment or
arrangements for payment by the Company and the Guarantors of all applicable recording
taxes, fees, charges, costs and expenses required for the recording of the Security
Documents.

     (h) Additional Documents. On or before the Closing Date, the Initial Purchasers and
counsel for the Initial Purchasers shall have received such information, documents and
opinions as they may reasonably require for the purposes of enabling

 

 

them to pass upon the issuance and sale of the Securities as contemplated herein, or in
order to evidence the accuracy of any of the representations and warranties, or the
satisfaction of any of the conditions or agreements, herein contained.

     If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Representative by notice to the Company at any
time on or prior to the Closing Date, which termination shall be without liability on the part of
any party to any other party, except that Sections 4, 6, 8 and 9 hereof shall at all times be
effective and shall survive such termination.

     SECTION 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by
the Representative pursuant to Section 5 or 10 hereof, including if the sale to the Initial
Purchasers of the Securities on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company to perform any agreement herein or to comply with
any provision hereof, the Company agrees to reimburse the Initial Purchasers, severally, upon
demand for all out-of-pocket expenses that shall have been reasonably incurred by the Initial
Purchasers in connection with the proposed purchase and the offering and sale of the Securities,
including, without limitation, fees and disbursements of counsel, printing expenses, travel
expenses, postage, facsimile and telephone charges.

     SECTION 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one
hand, and the Company and each of the Guarantors, on the other hand, hereby agree to observe the
following procedures in connection with the offer and sale of the Securities:

     (a) Offers and sales of the Securities will be made only by the Initial Purchasers or
Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are
made. Each such offer or sale shall only be made to persons whom the offeror or seller
reasonably believes to be Qualified Institutional Buyers or non-U.S. persons outside the
United States to whom the offeror or seller reasonably believes offers and sales of the
Securities may be made in reliance upon Regulation S upon the terms and conditions set forth
in Annex I hereto, which Annex I is hereby expressly made a part hereof.

     (b) The Securities will be offered by approaching prospective Subsequent Purchasers on
an individual basis. No general solicitation or general advertising (within the meaning of
Rule 502 under the Securities Act) will be used in the United States in connection with the
offering of the Securities.

     (c) Upon original issuance by the Company, and until such time as the same is no longer
required under the applicable requirements of the Securities Act, the Notes (and all
securities issued in exchange therefor or in substitution thereof, other than the Exchange
Notes) shall bear the following legend:

“THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE

 

 

OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY
EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES
FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED
OR OTHERWISE TRANSFERRED, ONLY (1)(a) INSIDE THE UNITED STATES TO A PERSON
WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT,
(b) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 903 OR RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (d) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE
COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE COMPANY OR (3) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY
OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION
CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR
RESALE OF THE SECURITY EVIDENCED HEREBY.”

     Following the sale of the Securities by the Initial Purchasers to Subsequent Purchasers
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 Securities Act, arising from or relating to any resale or
transfer of any Security.

 

 

     SECTION 8. Indemnification.

     (a) Indemnification of the Initial Purchasers. Each of the Company and the Guarantors,
jointly and severally, agrees to indemnify and hold harmless each Initial Purchaser, its
affiliates, directors, officers and employees, and each person, if any, who controls any Initial
Purchaser within the meaning of the Securities Act and the Exchange Act against any loss, claim,
damage, liability or expense, as incurred, to which such Initial Purchaser, affiliate, director,
officer, employee or controlling person may become subject, under the Securities Act, the Exchange
Act or other federal or state statutory law or regulation, or at common law or otherwise (including
in settlement of any litigation, if such settlement is effected with the written consent of the
Company), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof
as contemplated below) arises out of or is based upon any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Offering Memorandum, the Pricing
Supplement, any Company Additional Written Communication or the Final Offering Memorandum (or any
amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading; and to reimburse each Initial Purchaser and each such affiliate,
director, officer, employee or controlling person for any and all reasonable and documented
expenses (including the fees and disbursements of one counsel chosen by Merrill Lynch in addition
to any local counsel) as such expenses are reasonably incurred by such Initial Purchaser or such
affiliate, director, officer, employee or controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage, liability, expense or
action; provided, however, that the foregoing indemnity agreement shall not apply, with respect to
an Initial Purchaser, to any loss, claim, damage, liability or expense to the extent, but only to
the extent, arising out of or based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in reliance upon and in conformity with written information
furnished to the Company by such Initial Purchaser through the Representative expressly for use in
the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written
Communication or the Final Offering Memorandum (or any amendment or supplement thereto). The
indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the
Company may otherwise have.

     (b) Indemnification of the Company and the Guarantors. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Company, each Guarantor, each of
their respective directors and each person, if any, who controls the Company or any Guarantor
within the meaning of the Securities Act or the Exchange Act, against any loss, claim, damage,
liability or expense, as incurred, to which the Company, any Guarantor or any such director or
controlling person may become subject, under the Securities Act, the Exchange Act, or other federal
or state statutory law or regulation, or at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of such Initial Purchaser),
insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based upon any untrue statement or alleged untrue statement
of a material fact contained in the Preliminary Offering Memorandum, the Pricing Supplement, any
Company Additional Written Communication or the Final Offering Memorandum (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, in each case to the extent, but only to the

 

 

extent, that such untrue statement or alleged untrue statement or omission or alleged omission
was made in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional
Written Communication or the Final Offering Memorandum (or any amendment or supplement thereto), in
reliance upon and in conformity with written information furnished to the Company by such Initial
Purchaser through the Representative expressly for use therein; and to reimburse the Company, any
Guarantor and each such director or controlling person for any and all reasonable and documented
expenses (including the fees and disbursements of counsel) as such expenses are reasonably incurred
by the Company, any Guarantor or such director or controlling person in connection with
investigating, defending, settling, compromising or paying any such loss, claim, damage, liability,
expense or action. Each of the Company and the Guarantors hereby acknowledges that the only
information that the Initial Purchasers through the Representative have furnished to the Company
expressly for use in the Preliminary Offering Memorandum, the Pricing Supplement, any Company
Additional Written Communication or the Final Offering Memorandum (or any amendment or supplement
thereto) are the statements set forth in the fifth, seventh (third sentence) and ninth paragraphs
under the caption “Plan of Distribution” in the Preliminary Offering Memorandum and the Final
Offering Memorandum. The indemnity agreement set forth in this Section 8(b) shall be in addition
to any liabilities that each Initial Purchaser may otherwise have.

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 8, notify the indemnifying party in writing of the commencement thereof;
provided that the failure to so notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party under this Section 8 except to the extent that
it has been materially prejudiced by such failure (through the forfeiture of substantive rights and
defenses) and shall not relieve the indemnifying party from any liability that the indemnifying
party may have to an indemnified party other than under this Section 8. In case any such action is
brought against any indemnified party and such indemnified party seeks or intends to seek indemnity
from an indemnifying party, the indemnifying party will be entitled to participate in and, to the
extent that it shall elect, jointly with all other indemnifying parties similarly notified, by
written notice delivered to the indemnified party promptly after receiving the aforesaid notice
from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to
such indemnified party; provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded, with the advice of counsel, that a conflict may arise between the positions of the
indemnifying party and the indemnified party in conducting the defense of any such action or that
there may be legal defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party, the indemnified party or parties
shall have the right to select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or parties. Upon
receipt of notice from the indemnifying party to such indemnified party of such indemnifying
party’s election so to assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party under this Section 8
for any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the immediately preceding sentence (it being understood, however,

 

 

that the indemnifying party shall not be liable for the expenses of more than one
separate counsel (together with local counsel (in each jurisdiction)), which shall be selected by
Merrill Lynch (in the case of counsel representing the Initial Purchasers or their related
persons), representing the indemnified parties who are parties to such action) or (ii) the
indemnifying party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of commencement of the
action, in each of which cases the fees and expenses of counsel shall be at the expense of the
indemnifying party.

     (d) Settlements. The indemnifying party under this Section 8 shall not be liable for any
settlement of any proceeding effected without its written consent, which will not be unreasonably
withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement, compromise or consent to
the entry of judgment in any pending or threatened action, suit or proceeding in respect of which
any indemnified party is or could have been a party and indemnity was or could have been sought
hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an
unconditional release of such indemnified party from all liability on claims that are the subject
matter of such action, suit or proceeding and (ii) does not include any statements as to or any
findings of fault, culpability or failure to act by or on behalf of any indemnified party.

     SECTION 9. Contribution. If the indemnification provided for in Section 8 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, 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) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand,
in connection with the statements or omissions or inaccuracies in the representations and
warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well
as any other relevant equitable considerations. The relative benefits received by the Company and
the Guarantors, 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 discount received
by the Initial Purchasers bear to the aggregate initial offering price of the Securities. The
relative fault of the Company and the Guarantors, 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 and the Guarantors, on the one hand, or the
Initial Purchasers, on the other hand, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission or inaccuracy.

 

 

     The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 8 hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim. The provisions set forth in
Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 9; provided, however, that no additional notice shall
be required with respect to any action for which notice has been given under Section 8 hereof for
purposes of indemnification.

     The Company, the Guarantors and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 9 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 in this Section
9.

     Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to
contribute any amount in excess of the discount received by such Initial Purchaser in connection
with the Securities distributed by it. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11 of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to
contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective
commitments as set forth opposite their names in Schedule A. For purposes of this Section 9, each
director, officer and employee of an Initial Purchaser and each person, if any, who controls an
Initial Purchaser within the meaning of the Securities Act and the Exchange Act shall have the same
rights to contribution as such Initial Purchaser, and each director of the Company or any
Guarantor, and each person, if any, who controls the Company or any Guarantor with the meaning of
the Securities Act and the Exchange Act shall have the same rights to contribution as the Company
and the Guarantors.

     SECTION 10. Termination of this Agreement. Prior to the Closing Date, this Agreement may be
terminated by the Representative by notice given to the Company if at any time: (i) trading or
quotation in any of the Company’s securities shall have been suspended or limited by the Commission
or by the NYSE, or trading in securities generally on either the Nasdaq Stock Market or the NYSE
shall have been suspended or limited, or minimum or maximum prices shall have been generally
established on any of such quotation system or stock exchange by the Commission or FINRA; (ii) a
general banking moratorium shall have been declared by any of federal or New York authorities;
(iii) there shall have occurred any outbreak or escalation of national or international hostilities
or any crisis or calamity, or any change in the United States or international financial markets,
or any substantial change or development involving a prospective substantial change in United
States’ or international political, financial or economic conditions, as in the judgment of the
Representative is material and adverse and makes it impracticable or inadvisable to proceed with
the offering, sale or delivery of the Securities in the manner and on the terms described in the
Pricing Disclosure Package or to enforce contracts for the sale of securities; (iv) in the judgment
of the Representative there shall have occurred or shall exist an event or condition of a type
described in Section 1(n) hereof, which event or condition is not disclosed in the Pricing
Disclosure Package (excluding any amendment or supplement thereto) and the Final Offering
Memorandum (excluding any amendment or supplement thereto) and the effect of

 

 

which in the judgment of the Representative makes it impracticable or inadvisable to proceed
with the offering, sale or delivery of the Securities on the Closing Date, on the terms and in the
manner contemplated by this Agreement, the Pricing Disclosure Package and the Final Offering
Memorandum; or (v) the Company shall have sustained a loss by strike, fire, flood, earthquake,
accident or other calamity of such character as in the judgment of the Representative may interfere
materially with the conduct of the business and operations of the Company regardless of whether or
not such loss shall have been insured. Any termination pursuant to this Section 10 shall be
without liability on the part of (i) the Company or any Guarantor to any Initial Purchaser, except
that the Company and the Guarantors shall be obligated to reimburse the expenses of the Initial
Purchasers pursuant to Sections 4 and 6 hereof, (ii) any Initial Purchaser to the Company, or (iii)
any party hereto to any other party except that the provisions of Sections 8 and 9 hereof shall at
all times be effective and shall survive such termination.

     SECTION 11. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of the Company, the Guarantors, their
respective officers and the several Initial Purchasers set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation made by or on
behalf of any Initial Purchaser, the Company, any Guarantor or any of their partners, officers or
directors or any controlling person, as the case may be, and will survive delivery of and payment
for the Securities sold hereunder and any termination of this Agreement.

     SECTION 12. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered, couriered or facsimiled and confirmed to the parties hereto as follows:

     If to the Initial Purchasers:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, New York 10036

Facsimile: (212) 901-7897

Attention: Legal Department

     with a copy to:

Cahill Gordon & Reindel llp

80 Pine Street

New York, New York 10005

Facsimile: (212) 701-3849

Attention: James J. Clark and Corey Wright

     If to the Company or the Guarantors:

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Facsimile: (201) 295-6118

Attention: Nicholas Rubino

 

 

     with a copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Facsimile: (212) 373-7550

Attention: Lawrence G. Wee

     Any party hereto may change the address or facsimile number for receipt of communications by
giving written notice to the others.

     SECTION 13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, and to the benefit of the indemnified parties referred to in Sections 8 and 9
hereof, and in each case their respective successors, and no other person will have any right or
obligation hereunder. The term “successors” shall not include any Subsequent Purchaser or other
purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such
purchase.

     SECTION 14. Authority of the Representative. Any action by the Initial Purchasers hereunder
may be taken by Merrill Lynch on behalf of the Initial Purchasers, and any such action taken by
Merrill Lynch shall be binding upon the Initial Purchasers.

     SECTION 15. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other section, paragraph or provision hereof. If any section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.

     SECTION 16. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

     (a) Consent to Jurisdiction. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be
instituted in the federal courts of the United States of America located in the City and County of
New York or the courts of the State of New York in each case located in the City and County of New
York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive
jurisdiction (except for suits, actions, or proceedings instituted in regard to the enforcement of
a judgment of any Specified Court in a Related Proceeding, as to which such jurisdiction is
non-exclusive) of the Specified Courts in any Related Proceeding. Service of any process, summons,
notice or document by mail to such party’s address set forth above shall be

 

 

effective service of process for any Related Proceeding brought in any Specified Court. The
parties irrevocably and unconditionally waive any objection to the laying of venue of any Specified
Proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead
or claim in any Specified Court that any Related Proceeding brought in any Specified Court has been
brought in an inconvenient forum.

     (b) Waiver of Immunity. With respect to any Related Proceeding, each party irrevocably
waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of
sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after
judgment) and execution to which it might otherwise be entitled in the Specified Courts, and with
respect to any Related Judgment, each party waives any such immunity in the Specified Courts or any
other court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such
immunity at or in respect of any such Related Proceeding or Related Judgment, including, without
limitation, any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as
amended.

     (c) Judgment Currency. If for the purposes of obtaining judgment in any court it is necessary
to convert a sum due hereunder into any currency other than U.S. dollars, the parties hereto agree,
to the fullest extent that they may effectively do so, that the rate of exchange used shall be the
rate at which in accordance with normal banking procedures the Initial Purchasers could purchase
U.S. dollars with such other currency in The City of New York on the business day preceding that on
which final judgment is given.

     SECTION 17. Default of One or More of the Several Initial Purchasers. If any one or more of
the several Initial Purchasers shall fail or refuse to purchase Securities that it or they have
agreed to purchase hereunder on the Closing Date, and the aggregate number of Securities which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does
not exceed 10% of the aggregate number of the Securities to be purchased on such date, the other
Initial Purchasers shall be obligated, severally, in the proportions that the number of Securities
set forth opposite their respective names on Schedule A bears to the aggregate number of Securities
set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other
proportions as may be specified by the Initial Purchasers with the consent of the non-defaulting
Initial Purchasers, to purchase the Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on the Closing Date. If any one or more of the
Initial Purchasers shall fail or refuse to purchase Securities and the aggregate number of
Securities with respect to which such default occurs exceeds 10% of the aggregate number of
Securities to be purchased on the Closing Date, and arrangements satisfactory to the Initial
Purchasers and the Company for the purchase of such Securities are not made within 48 hours after
such default, this Agreement shall terminate without liability of any party to any other party
except that the provisions of Sections 4, 6, 8 and 9 hereof shall at all times be effective and
shall survive such termination. In any such case either the Initial Purchasers or the Company
shall have the right to postpone the Closing Date, as the case may be, but in no event for longer
than seven days in order that the required changes, if any, to the Final Offering Memorandum or any
other documents or arrangements may be effected.

     As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person
substituted for a defaulting Initial Purchaser under this Section 17. Any action taken

 

 

under this Section 17 shall not relieve any defaulting Initial Purchaser from liability in
respect of any default of such Initial Purchaser under this Agreement.

     SECTION 18. No Advisory or Fiduciary Responsibility. Each of the Company and the Guarantors
acknowledges and agrees that: (i) 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 and the
Guarantors, on the one hand, and the several Initial Purchasers, on the other hand, and the Company
and the Guarantors are capable of evaluating and understanding and understand and accept the terms,
risks and conditions of the transactions contemplated by this Agreement; (ii) in connection with
each transaction 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, and the Guarantors or their respective Affiliates, stockholders, creditors or employees or
any other party; (iii) no Initial Purchaser has assumed or will assume an advisory or fiduciary
responsibility in favor of the Company and the Guarantors with respect to any of the transactions
contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser
has advised or is currently advising the Company and the Guarantors on other matters) or any other
obligation to the Company and the Guarantors except the obligations expressly set forth in this
Agreement; (iv) the several Initial Purchasers and their respective Affiliates may be engaged in a
broad range of transactions that involve interests that differ from those of the Company and the
Guarantors, and the several Initial Purchasers have no obligation to disclose any of such
interests by virtue of any fiduciary or advisory relationship; and (v) the Initial Purchasers have
not provided any legal, accounting, regulatory or tax advice with respect to the offering
contemplated hereby, and the Company and the Guarantors have consulted their own legal, accounting,
regulatory and tax advisors to the extent they deemed appropriate.

     This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company, the Guarantors and the several Initial Purchasers, or any of them, with
respect to the subject matter hereof. The Company and the Guarantors hereby waive and release, to
the fullest extent permitted by law, any claims that the Company and the Guarantors may have
against the several Initial Purchasers with respect to any breach or alleged breach of fiduciary
duty.

     SECTION 19. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of
an executed counterpart of a signature page to this Agreement by telecopier, facsimile or other
electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually
executed counterpart thereof. This Agreement may not be amended or modified unless in writing by
all of the parties hereto, and no condition herein (express or implied) may be waived unless waived
in writing by each party whom the condition is meant to benefit. The section headings herein are
for the convenience of the parties only and shall not affect the construction or interpretation of
this Agreement.

 

 

     If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.

[Signature Pages follow]

 

 

	 	 	 	 	 
	 	LIZ CLAIBORNE, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
BOODLE, INC. (F/K/A LCI LAUNDRY)

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
DB NEWCO CORP.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
HAVANA, LLC

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
JERG, INC. (F/K/A C&C CALIFORNIA, INC.)

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
JUICY COUTURE, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
KATE SPADE LLC

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	
L.C. AUGUSTA, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
L.C. CARIBBEAN HOLDINGS, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
L.C. LIBRA, LLC

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
L.C. LICENSING, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
L.C. SERVICE COMPANY, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
L.C. SPECIAL MARKETS, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	
LCI ACQUISITION U.S., INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	LCI HOLDINGS, INC.

 	 
	 	By:  	         /s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LCI INVESTMENTS, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LIZ CLAIBORNE ACCESSORIES, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LIZ CLAIBORNE ACCESSORIES-SALES, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LIZ CLAIBORNE COSMETICS, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LIZ CLAIBORNE EXPORT, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 

 

 

	 	 	 	 	 
	 	

LIZ CLAIBORNE FOREIGN HOLDINGS, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	LIZ CLAIBORNE JAPAN, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LIZ CLAIBORNE PUERTO RICO, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LIZ CLAIBORNE SALES, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LIZ CLAIBORNE SHOES, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LUCKY BRAND DUNGAREES, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
LUCKY BRAND DUNGAREES STORES, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	
MONET INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	MONET PUERTO RICO, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
NONEE I, LLC (F/K/A ENYCE LLC)

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
NONEE I HOLDING, LLC (F/K/A ENYCE HOLDING, LLC)

 
	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
SEGRETS, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
SKYLARK SPORT MARKETING CORPORATION

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	
WESTCOAST CONTEMPO PROMENADE, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	
WESTCOAST CONTEMPO RETAIL, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

	 	 	 	 	 
	 	WESTCOAST CONTEMPO USA, INC.

 	 
	 	By:  	/s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino 	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel
and Corporate Secretary 	 
	 

 

 

     The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as
of the date first above written.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Acting on behalf of itself

and as the Representative of

the several Initial Purchasers

By:     Merrill Lynch, Pierce, Fenner & Smith Incorporated

	 	 	 	 	 
	By:  	 	/s/
Stephan Jaeger	 
	 	 	Stephan Jaeger	 
	 	 	Managing Director 	 
	 

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Aggregate Principal Amount
	Initial Purchasers	 	of Securities to be Purchased
	Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 	$	82,000,000	 
	J.P. Morgan Securities LLC
	 	 	61,500,000	 
	SunTrust Robinson Humphrey, Inc.
	 	 	30,750,000	 
	Wells Fargo Securities, LLC
	 	 	30,750,000	 
	 
	 	 	 	 
	Total
	 	$	205,000,000	 

 

 

SCHEDULE B

PRICING SUPPLEMENT

 

 

			
	PRICING SUPPLEMENT
	 	STRICTLY CONFIDENTIAL

April 1, 2011

This Pricing Supplement is qualified in its entirety by reference to the Preliminary Offering
Memorandum dated March 28, 2011 (the “Preliminary Offering Memorandum”). The information in this
Pricing Supplement supplements the Preliminary Offering Memorandum and supersedes the information
in the Preliminary Offering Memorandum to the extent inconsistent with the information in the
Preliminary Offering Memorandum. Capitalized terms used in this Pricing Supplement but
not defined herein have the meanings given to them in the Preliminary Offering Memorandum.

The notes have not been and will not be registered under the Securities Act of 1933, as amended
(the “Securities Act”), and are being offered only to qualified institutional buyers pursuant to
Rule 144A under the Securities Act and outside the United States to non-U.S. persons in accordance
with Regulation S under the Securities Act.

Terms Applicable to the 10.50% Senior Secured Notes due 2019

	 	 	 

	Issuer:
	 	Liz Claiborne, Inc. (the
“Company”)
	 
	 	 
	Title of Securities:
	 	10.50% Senior Secured Notes due
2019 (the “Notes”)
	 
	 	 
	Aggregate Principal Amount:
	 	$205,000,000, which reflects an increase of $5,000,000 from the Preliminary Offering Memorandum
	 
	 	 
	Final Maturity Date:
	 	April 15, 2019
	 
	 	 
	Coupon:
	 	10.50%
	 
	 	 
	Issue Price:
	 	100%, plus accrued interest, if any, from April 7, 2011
	 
	 	 
	Yield to Maturity:
	 	10.50%
	 
	 	 
	Record Dates:
	 	April 1 and October 1 of each year
	 
	 	 
	Interest Payment Dates:
	 	April 15 and October 15 of each year
	 
	 	 
	First Interest Payment Date:
	 	October 15, 2011
	 
	 	 
	Make-Whole Redemption
	 	On or prior to April 15, 2014, the Company may redeem the notes, in whole or in part, at a redemption price equal
 to the amount of the notes plus accrued and unpaid interest plus the
“make-whole premium” described in the Preliminary Offering Memorandum.

 

 

This Pricing Supplement is qualified in its entirety by reference to the Preliminary Offering Memorandum dated March 28, 2011

	 	 	 

	Optional Redemption:
	 	From and after April 15, 2014, the
Company may redeem the notes, in whole or in part, upon not less
than 30 nor more than 60 days’ prior notice at the redemption
prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest
if any, to, but not including, the applicable redemption date,
subject to the right of Holders of record on the relevant record
date to receive interest due on the relevant interest payment date,
if redeemed during the twelve-month period beginning on April 15 of
each of the years indicated below:

	 	 	 
	Date	 	Price
	2014
	 	105.250%
	2015
	 	103.500%
	2016
	 	102.625%
	2017 and thereafter
	 	100.000%

	 	 	 

	 
	 
	
Prior to April 15, 2014, the Company may redeem during each 12-month
period commencing with the date of the Indenture up to 10% of the
aggregate principal amount of the notes issued under the Indenture,
including any Additional Notes at its option, at a redemption price
equal to 103% of the principal amount of the notes redeemed, plus
accrued and unpaid interest, if any, to (but not including) the
redemption date, subject to the right of Holders on the relevant
record date to receive interest due on the relevant interest payment date.
	 
	 	 
	Optional
Redemption with Equity Proceeds:
	 	
Prior to April 15, 2014, the Company may, at its option, with the
net proceeds of one or more Qualified Equity Offerings, redeem up to
35% of the aggregate principal amount of notes (and the principal
amount of any Additional Notes) issued under the Indenture at a
redemption price equal to 110.50% of the aggregate principal amount
thereof, plus accrued and unpaid interest, if any, to (but not
including) the redemption date, provided that:
	 
	 	 
	 
	 	•   at least 65% of the principal amount of
 notes (including any Additional Notes) that have been issued under the Indenture after
the Issue Date remain outstanding immediately after the occurrence of each such redemption; and

	 
	 	 
	 
	 	•   each such redemption occurs within 90 days
 of the date of closing of each such Equity Offering.

	 	 	 

	Changes
from Preliminary Offering Memorandum
	 	“Description of the Notes” (p. 169)
	 
	 	 
	 
	 	The definition of “Permitted
Additional Pari Passu Lien Obligations” is amended by inserting
the following sentence at the end of such definition:
	 
	 	 
	 
	 	“For purposes of this definition, if any Indebtedness initially was

-2-

 

This Pricing Supplement is qualified in its entirety by reference to the Preliminary Offering Memorandum dated March 28, 2011

	 	 	 

	 
	 	incurred as unsecured Indebtedness and is later secured by a Lien
pursuant to this definition, such Indebtedness shall be deemed to
have been incurred at the time it becomes secured by such Lien.”
	 
	 	 
	Initial Purchasers:
	 	Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 
	 	J.P. Morgan Securities LLC
	 
	 	SunTrust Robinson Humphrey, Inc.
	 
	 	Wells Fargo Securities, LLC
	 
	 	 
	Trade Date:
	 	April 1, 2011
	 
	 	 
	Settlement Date:
	 	April 7, 2011 (T+4)

	 	 	 	 	 

	CUSIP and ISIN Numbers:
	 	144A Note:	 	Reg S Note:
	 
	 	CUSIP: 539320 AB7	 	CUSIP: U5391P AB3
	 
	 	ISIN: US539320AB72	 	ISIN:  USU5391PAB32

	 	 	 

	Distribution:
	 	144A and Regulation S as set forth in the Preliminary Offering
Memorandum.  The Notes will have registration rights as set forth in
the Preliminary Offering Memorandum.

 

Other information (including financial information) presented in the Preliminary Offering
Memorandum is deemed to have changed to the extent affected by the changes described herein.

This material is confidential and is for your information only and is not intended to be used by
anyone other than you. This information does not purport to be a complete description of these
Notes or the offering. Please refer to the Preliminary Offering Memorandum for a complete
description.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities in any jurisdiction to any person to whom it is unlawful to make such offer or
solicitation in such jurisdiction.

Any disclaimers or other notices that may appear below are not applicable to this communication and
should be disregarded. Such disclaimers or other notices were automatically generated as a result
of this communication being sent via Bloomberg email or another communication system.

-3-

 

SCHEDULE C

LIST OF JURISDICTIONS IN WHICH THE COMPANY

IS REQUIRED TO BE QUALIFIED TO DO BUSINESS

Alabama

New Jersey

New York

Ohio

Pennsylvania

Rhode Island

 

 

SCHEDULE D

LIST OF SUBSIDIARIES OF LIZ CLAIBORNE, INC.

	 	 	 

	Boodle, Inc. (f/k/a LCI Laundry)

	 	Delaware
	Claiborne Limited

	 	Hong Kong
	DB Newco Corp.

	 	Delaware
	Handycell Ltd.

	 	United Kingdom
	Havana, LLC

	 	Delaware
	High Mallow Company N.V.

	 	Netherlands
	Jerg, Inc.

	 	California
	Juicy Couture Canada, Inc.

	 	Canada
	Juicy Couture Europe Limited

	 	United Kingdom
	Juicy Couture, Inc.

	 	California
	Kate Spade LLC

	 	Delaware
	Kate Spade U.K. Limited

	 	United Kingdom
	L.C. Augusta, Inc.

	 	Delaware
	L.C. Caribbean Holdings, Inc.

	 	Delaware
	L.C. Libra, LLC

	 	Delaware
	L.C. Licensing, Inc.

	 	Delaware
	L.C. Service Company, Inc.

	 	Delaware
	L.C. Special Markets, Inc.

	 	Delaware
	LCI Acquisition U.S., Inc.

	 	Delaware
	LCI Holdings, Inc.

	 	Delaware
	LCI Investments, Inc.

	 	Delaware
	Liz Claiborne 2 B.V.

	 	Netherlands
	Liz Claiborne 3 B.V.

	 	Netherlands
	Liz Claiborne Accessories, Inc.

	 	Delaware
	Liz Claiborne Accessories-Sales, Inc.

	 	Delaware
	Liz Claiborne Canada Inc.

	 	Canada
	Liz Claiborne Colombia, Ltda.

	 	Colombia
	Liz Claiborne Cosmetics, Inc.

	 	Delaware
	Liz Claiborne De El Salvador, S.A., de C.V.

	 	El Salvador
	Liz Claiborne de Mexico, S.A. de C.V.

	 	Mexico
	Liz Claiborne do Brasil Industria E Comercio Ltda.

	 	Brazil
	Liz Claiborne Europe

	 	United Kingdom
	Liz Claiborne Export, Inc.

	 	Delaware
	Liz Claiborne Foreign Holdings, Inc.

	 	Delaware
	Liz Claiborne International Limited

	 	Hong Kong
	Liz Claiborne (Israel) Ltd.

	 	Israel
	Liz Claiborne Japan, Inc.

	 	Delaware
	Liz Claiborne (Malaysia) SDN.BHD

	 	Malaysia
	Liz Claiborne Operations (Israel) 1993 Limited

	 	Israel
	Liz Claiborne Puerto Rico, Inc.

	 	Delaware
	Liz Claiborne Sales, Inc.

	 	Delaware
	Liz Claiborne, S.A.

	 	Costa Rica
	Liz Claiborne Servicios de Mexico, S.A. de C.V.

	 	Mexico

 

 

	 	 	 

	Liz Claiborne Shoes, Inc.

	 	Delaware
	Lucky Brand Dungarees, Inc.

	 	Delaware
	Lucky Brand Dungarees Stores, Inc.

	 	Delaware
	Mexx Asia Pacific Limited

	 	Hong Kong
	Mexx Austria GmbH

	 	Austria
	Mexx Belgium N.V.

	 	Belgium
	Mexx Boutique SARL

	 	France
	Mexx Czech Repubic s.r.o.

	 	Czech Republic
	Mexx Deutschland GmbH

	 	Germany
	Mexx Direct GmbH & Co KG

	 	Germany
	Mexx Direct Holding B.V.

	 	Netherlands
	Mexx Europe B.V.

	 	Netherlands
	Mexx Europe Holding B.V.

	 	Netherlands
	Mexx Europe International B.V.

	 	Netherlands
	Mexx Europroduction B.V.

	 	Netherlands
	Mexx Far East Limited

	 	Hong Kong
	Mexx France

	 	France
	Mexx France International SAS

	 	France
	Mexx Group B.V.

	 	Netherlands
	Mexx Hellas EPE

	 	Greece
	Mexx Holding GmbH

	 	Germany
	Mexx Holding International B.V.

	 	Netherlands
	Mexx Holding Netherlands B.V.

	 	Netherlands
	Mexx Hungary Ltd.

	 	Hungary
	Mexx Ireland Ltd.

	 	Ireland
	Mexx Italy S.r.l.

	 	Italy
	Mexx Ltd.

	 	United Kingdom
	Mexx Luxembourg S.a.r.l.

	 	Luxembourg
	Mexx Middle East Center FZE

	 	Dubai, UAE
	Mexx Modehandels AG

	 	Switzerland
	Mexx Modehandels GmbH

	 	Germany
	Mexx Nederland B.V.

	 	Netherlands
	Mexx Nederland Retail B.V.

	 	Netherlands
	Mexx Poland Sp. z.o.o.

	 	Poland
	Mexx Portugal, Unnipessoal, LDA

	 	Portugal
	Mexx Scandinavia AB

	 	Sweden
	Mexx Scandinavia AS

	 	Norway
	Mexx Scandinavia Finland Oy

	 	Finland
	Mexx Southern Europe S.R.L.

	 	Spain
	Mexx Sport Benelux B.V.

	 	Netherlands
	Mexx Switzerland GmbH

	 	Switzerland
	Monet International, Inc.

	 	Delaware
	Monet Puerto Rico, Inc.

	 	Delaware
	Nonee I, LLC (f/k/a Enyce LLC)

	 	Delaware
	Nonee I Holding, LLC (f/k/a Enyce Holding, LLC)

	 	Delaware
	Retrain N.V.

	 	Belgium

 

 

	 	 	 

	Segrets, Inc.

	 	Delaware
	Shenghui Fashion (Shenzhen) Company Limited

	 	China
	Skylark Sport Marketing Corporation

	 	California
	Verwaltungsgesellschaft Mexx Direct mbh

	 	Germany
	Westcoast Contempo Fashions Limited

	 	Canada
	Westcoast Contempo Promenade, Inc.

	 	Washington
	Westcoast Contempo Retail, Inc.

	 	Washington
	Westcoast Contempo USA, Inc.

	 	Washington

 

 

SCHEDULE E

Post-Closing Requirements Relating to Collateral

     (a) Real Property Collateral Documents. Within 30 days after the Closing Date, the Initial
Purchasers shall have received a mortgage, deed of trust, assignment of leases and rents, security
agreement, fixture filing and financing statement from the owner or holder of each interest in real
property that is part of the Collateral, in form and substance reasonably acceptable to the Initial
Purchasers (each a “Mortgage”) encumbering each real property that is part of the Collateral (each
a “Mortgaged Property”) in favor of the Collateral Agent for its benefit and for the benefit of
the other Secured Parties (as defined in the Security Agreement) executed by the Company and the
appropriate Guarantors.

     (b) Mortgages. Within 30 days after the Closing Date, the Initial Purchasers shall have
received fully executed counterparts of the Mortgages, which Mortgages shall cover the Mortgaged
Property, together with evidence that counterparts of the Mortgages have been delivered to the
title insurance company insuring the lien of such Mortgages for recording in all places to the
extent necessary or, in the reasonable opinion of the Initial Purchasers, desirable to effectively
create a valid and enforceable mortgage lien on each Mortgaged Property in favor of the Collateral
Agent for its benefit and for the benefit of the other Secured Parties (as defined in the Security
Agreement), securing the Obligations (as defined in the Preliminary Offering Memorandum) under the
Indenture and the other Security Documents (provided that in jurisdictions that impose
mortgage recording taxes, such Mortgages shall not secure indebtedness in an amount exceeding 115%
of the fair market value of such Mortgaged Property, as reasonably determined, in good faith, by
the Company and reasonably acceptable to the Initial Purchasers), subject to (i) those liens,
encumbrances, hypothecations and other matters affecting title to such Mortgaged Property and found
reasonably acceptable by the Initial Purchasers, (ii) Permitted Liens (as defined in the Indenture)
and (iii) such other similar items as the Initial Purchasers may consent to (such consent not to be
unreasonably withheld) (the liens described in clauses (i) through (iii) of this sentence,
collectively, the “Permitted Encumbrances”).

     (c) Title Insurance. Within 30 days after the Closing Date, the Initial Purchasers shall have
received, with respect to each Mortgage intended to encumber a Mortgaged Property, a policy of
title insurance (or commitment to issue such a policy) having the effect of a policy of title
insurance insuring (or committing to insure) the lien of such Mortgage as a valid and enforceable
mortgage lien on the Mortgaged Properties described therein, in an amount not less than 115% of the
fair market value of such Mortgaged Property as reasonably determined, in good faith, by the
Company and reasonably acceptable to the Initial Purchasers, (such policies collectively, the
“Mortgage Policies”) issued by such title insurer as shall be reasonably acceptable to Initial
Purchasers (the “Title Company”), which reasonably assures the Collateral Agent that the Mortgages
on such Mortgaged Properties are valid and enforceable mortgage liens on the respective Mortgaged
Properties, free and clear of all defects and encumbrances except Permitted Encumbrances and such
Mortgage Policies shall otherwise be in form and substance reasonably satisfactory to the Initial
Purchasers and shall have been supplemented by such endorsements as shall be reasonably requested
by the Collateral Agent, including, to the extent

 

 

included in the title insurance policy issued to the ABL Collateral Agent with respect to the
applicable Mortgaged Property, to the extent currently available and, if only one Mortgage is
granted on a single Mortgaged Property, to the extent appropriate where only one Mortgage is
granted on a single Mortgaged Property, endorsements on matters relating to usury, first loss, last
dollar, zoning, contiguity, revolving credit, doing business, non-imputation, public road access,
survey, variable rate, environmental lien, subdivision, separate tax lot, revolving credit,
so-called comprehensive coverage over covenants and restrictions and, to the extent included in the
title insurance policy issued to the ABL Collateral Agent with respect to the applicable Mortgaged
Property, to the extent currently available and, if only one Mortgage is granted on a single
Mortgaged Property, to the extent appropriate where only one Mortgage is granted on a single
Mortgaged Property, for any and all other matters that the Collateral Agent may request, shall not
include an exception for mechanics’ liens to the extent one was not included in the title insurance
policy issued to the ABL Collateral Agent with respect to the applicable Mortgaged Property, and
shall provide for affirmative insurance and such reinsurance (including direct access agreements)
as the Initial Purchasers may reasonably request, to the extent such affirmative insurance and/or
reinsurance was included in the title insurance policy issued to the ABL Collateral Agent with
respect to the applicable Mortgaged Property.

     (d) Survey. Within 30 days after the Closing Date, with respect to any Mortgaged Property for
which a survey was delivered to the ABL Collateral Agent and the ABL Collateral Agent received a
“comprehensive” endorsement or other survey-related endorsement, the Initial Purchasers shall have
received either (i) a survey update or (ii) an existing survey and affidavit of no change addressed
to the Title Company, the Trustee and the Collateral Agent in such form and substance as shall be
sufficient to enable the Title Company to issue a “comprehensive” endorsement and other
survey-related endorsements reasonably requested by the Collateral Agent and to remove the standard
survey exception from the Mortgage Policy with respect to such Mortgaged Property (provided that
Collateral Agent shall not have the option to require such endorsements or standard survey
exception removal unless such endorsements were issued or such standard survey exception was
removed in connection with the title insurance policy issued in favor of the ABL Collateral Agent
with respect to such Mortgaged Property).

     (e) Fixture filings. Within 30 days after the Closing Date, the Initial Purchasers shall have
received proper fixture filings and as-extracted collateral under the UCC on Form UCC-1 fully
executed for filing under the UCC in the appropriate jurisdiction in which the Mortgaged Properties
are located, desirable to perfect the security interests purported to be created by the Mortgages
in favor of the Collateral Agent for its benefit and for the the benefit of the other Secured
Parties (as defined in the Security Agreement).

     (f) Mortgage Opinions. Within 30 days after the Closing Date, the Initial Purchasers shall
have received the opinions, addressed to the Initial Purchasers, the Collateral Agent, the Trustee
and the other Secured Parties (as defined in the Security Agreement), of local counsel in each
jurisdiction where Mortgage Property is located, each in form and substance reasonably satisfactory
to the Initial Purchasers.

     (g) Insurance. Within 30 days after the Closing Date, the Initial Purchasers shall have
received policies or certificates of insurance covering the property and assets of the Company and
the Guarantors, which policies or certificates shall be in form and substance reasonably

 

 

acceptable to the Initial Purchasers and reflect the Collateral Agent, for its benefit and the
benefit of the other Secured Parties (as defined in the Security Agreement), as additional insured
and loss payee and mortgagee and shall otherwise bear endorsements of the character reasonably
acceptable to the Initial Purchasers.

     (h) Mortgaged Property Indemnification. Within 30 days after the Closing Date, the Initial
Purchasers shall have received, with respect to each Mortgaged Property, such affidavits,
certificates, information (including financial data) and instruments of indemnification (including
a so-called “gap” indemnification) as shall be required to induce the Title Company to issue the
Mortgage Policies and endorsements contemplated above.

     (i) Collateral Fees and Expenses. Within 30 days after the Closing Date, the Initial
Purchasers shall have received evidence reasonably acceptable to the Initial Purchasers of payment
by the Company of all Mortgage Policy premiums, search and examination charges, escrow charges and
related charges, mortgage recording taxes, fees, charges, costs and expenses required for the
recording of the Mortgages and issuance of the Mortgage Policies referred to above.

 

 

ANNEX I

     Resale Pursuant to Regulation S or Rule 144A. Each Initial Purchaser understands that:

     Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the
Securities in the United States or to, or for the benefit or account of, a U.S. Person (other than
a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its
distribution at any time and (ii) otherwise until 40 days after the later of the commencement of
the offering of the Securities pursuant hereto and the Closing Date, other than in accordance with
Regulation S or another exemption from the registration requirements of the Securities Act. Such
Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any
advertisement with respect to the Securities (including any “tombstone” advertisement) to be
published in any newspaper or periodical or posted in any public place and will not issue any
circular relating to the Securities, except such advertisements as are permitted by and include the
statements required by Regulation S.

     Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Securities by it
to any distributor, dealer or person receiving a selling concession, fee or other remuneration
during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such
distributor, dealer or person receiving a selling concession, fee or other remuneration a
confirmation or notice to substantially the following effect:

	 	 	 	“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered and sold within the United States or to, or for the account or
benefit of, U.S. persons (i) as part of your distribution at any time or
(ii) otherwise until 40 days after the later of the date the Securities were
first offered to persons other than distributors in reliance upon Regulation
S and the Closing Date, except in either case in accordance with Regulation
S under the Securities Act (or in accordance with Rule 144A under the
Securities Act or to accredited investors in transactions that are exempt
from the registration requirements of the Securities Act), and in connection
with any subsequent sale by you of the Securities covered hereby in reliance
on Regulation S under the Securities Act during the period referred to above
to any distributor, dealer or person receiving a selling concession, fee or
other remuneration, you must deliver a notice to substantially the foregoing
effect. Terms used above have the meanings assigned to them in Regulation S
under the Securities Act.”

Annex I -1exv10w4

Exhibit 10.4

PURCHASE AGREEMENT

April 5, 2011

Merrill Lynch, Pierce, Fenner & Smith Incorporated

  As Representative of the Initial Purchasers

One Bryant Park

New York, New York 10036

Ladies and Gentlemen:

     Introductory. Liz Claiborne, Inc., a Delaware corporation (the “Company”), has previously
entered into a Purchase Agreement (the “Original Purchase Agreement”), dated as of April 1, 2011,
with Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) and the other several
Initial Purchasers named therein (the “Initial Purchasers”) with respect to the issuance and sale
of $205,000,000 aggregate principal amount of the Company’s 10.50% Senior Secured Notes due 2019
(the “Original Notes”). The Company now proposes to issue and sell an additional $15,000,000
aggregate principal amount of the Company’s 10.50% Senior Secured Notes due 2019 (the “Add-On
Notes” and together with the Original Notes, the “Notes”) to the Initial Purchasers, acting
severally and not jointly, in the respective amounts set forth in such Schedule A. Merrill Lynch
has agreed to act as the representative of the several Initial Purchasers (the “Representative”) in
connection with the offering and sale of the Add-On Notes.

     The Securities (as defined below) will be issued pursuant to an indenture, to be dated as of
the Closing Date (the “Indenture”), among the Company, the Guarantors (as defined below) and U.S.
Bank National Association, as trustee (the “Trustee”). Notes will be issued only in book-entry
form in the name of Cede & Co., as nominee of The Depository Trust Company (the “Depositary”)
pursuant to a letter of representations, to be dated on or before the Closing Date (as defined in
Section 2 hereof) (the “DTC Agreement”), among the Company, the Trustee and the Depositary.

     The holders of the Notes will be entitled to the benefits of a registration rights agreement,
to be dated as of the Closing Date (the “Registration Rights Agreement”), among the Company, the
Guarantors and the Initial Purchasers, pursuant to which the Company and the Guarantors will be
required to file with the Commission (as defined below), under the circumstances set forth therein,
(i) a registration statement under the Securities Act (as defined below) relating to another series
of debt securities of the Company with terms substantially identical to the Notes (the “Exchange
Notes”) to be offered in exchange for the Notes (the “Exchange Offer”) and (ii) a shelf
registration statement pursuant to Rule 415 of the Securities Act relating to the resale by certain
holders of the Notes, and in each case, to use its best efforts to cause such registration
statements to be declared effective. All references herein to the Exchange Notes and the Exchange
Offer are only applicable if the Company and the Guarantors are in fact required to consummate the
Exchange Offer pursuant to the terms of the Registration Rights Agreement.

     The payment of principal of, premium, if any, and interest on the Notes will be fully and
unconditionally guaranteed on a senior secured basis, jointly and severally by (i) the Company’s
subsidiaries listed on the signature pages hereof as “Guarantors” and (ii) any subsidiary of the

 

 

Company formed or acquired after the Closing Date that executes an additional guarantee in
accordance with the terms of the Indenture, and their respective successors and assigns
(collectively, the “Guarantors”), pursuant to their guarantees (the “Guarantees”). The Notes and
the Guarantees attached thereto are herein collectively referred to as the “Securities”; and the
Exchange Notes and the Guarantees attached thereto are herein collectively referred to as the
“Exchange Securities.”

     The Securities are being issued to (i) finance the Company’s cash tender offer (the “Tender
Offer”) for a portion of its 5.0% euro notes due July 2013 (the “Euro Notes”) and fees and expenses
incurred in connection therewith; and (ii) use the remaining proceeds for general corporate
purposes. The Tender Offer, the issuance and sale of the Notes, the issuance of the Guarantees and
the payment of transaction costs are referred to herein collectively, as the “Transactions.”

     The Securities will be secured on a first-priority basis, subject to Permitted Liens (as
defined in the Indenture), by first-priority liens on and security interests in the Notes Priority
Collateral (as defined in the Indenture, the “Notes Priority Collateral”) and by second-priority
liens on and security interests in the ABL Priority Collateral (as defined in the Indenture, the
“ABL Priority Collateral” and, together with the Notes Priority Collateral, the “Collateral”) and
documented by a security agreement, mortgages and other instruments evidencing or creating or
purporting to create a lien or security interest (collectively, the “Security Documents”) in favor
of U.S. Bank National Association, as collateral agent (in such capacity, the “Collateral Agent”),
for its benefit and the benefit of the Trustee, the holders of the Securities and the holders of
any Permitted Additional Pari Passu Obligations (as defined in the Preliminary Offering
Memorandum)(the “Permitted Additional Pari Passu Obligations”).

     The liens on the Collateral securing the Securities will be subject to an Intercreditor
Agreement, dated as of the Closing Date (the “Intercreditor Agreement”), by and between the
Collateral Agent and JPMorgan Chase Bank, N.A. as collateral agent (the “ABL Collateral Agent”)
under the Company’s Second Amended and Restated Credit Agreement dated as of May 6, 2010, among Liz
Claiborne Inc., Mexx Europe B.V., Liz Claiborne Canada Inc., the other Loan Parties from time to
time party thereto, the Lenders party thereto, the ABL Collateral Agent, Bank of America, N.A. and
SunTrust Bank, as Syndication Agents, and Wachovia Bank, National Association, as Documentation
Agent (the “ABL Facility”), and acknowledged by the Company and the Guarantors.

     This Agreement, the Registration Rights Agreement, the DTC Agreement, the Securities, the
Exchange Securities, the Security Documents, the Intercreditor Agreement and the Indenture are
referred to herein as the “Transaction Documents.” 

     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 in the Pricing Disclosure Package
(as defined below) and agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Securities to purchasers (the “Subsequent Purchasers”) on the
terms set forth in the Pricing Disclosure Package (the first time when sales of the Securities are
made is referred to as the “Time of Sale”). The Securities are to be offered and sold to or
through the Initial Purchasers without being registered with the Securities and Exchange

 

 

Commission (the “Commission”) under the Securities Act of 1933 (as amended, the “Securities Act,”
which term, as used herein, includes the rules and regulations of the Commission promulgated
thereunder), in reliance upon exemptions therefrom. Pursuant to the terms of the Securities and
the Indenture, investors who acquire Securities shall be deemed to have agreed that Securities may
only be resold or otherwise transferred, after the date hereof, if such Securities are registered
for sale under the Securities Act or if an exemption from the registration requirements of the
Securities Act is available (including the exemptions afforded by Rule 144A under the Securities
Act (“Rule 144A”) or Regulation S under the Securities Act (“Regulation S”).

     The Company has prepared and delivered to each Initial Purchaser copies of an Offering
Memorandum, dated April 1, 2011 relating to the issue and sale of the Original Notes (the
“Preliminary Offering Memorandum”), and has prepared and delivered to each Initial Purchaser copies
of a Supplement to Offering Memorandum, dated April 5, 2011 and attached hereto as Schedule B (the
“Pricing Supplement”) containing certain terms of the Add-On Notes and other amendments to the
information in the Preliminary Offering Memorandum, each for use by such Initial Purchaser in
connection with its solicitation of offers to purchase the Securities. The Preliminary Offering
Memorandum and the Pricing Supplement are herein referred to as the “Pricing Disclosure Package.”
The Pricing Disclosure Package as amended or supplemented from time is referred to herein as the
“Final Offering Memorandum.”

     All references herein to the terms “Pricing Disclosure Package” and the “Final Offering
Memorandum” shall be deemed to mean and include all information filed under the Securities Exchange
Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder) prior to the Time of Sale and incorporated by
reference in the Pricing Disclosure Package (including the Preliminary Offering Memorandum) or the
Final Offering Memorandum (as the case may be), and all references herein to the terms “amend,”
“amendment” or “supplement” with respect to the Final Offering Memorandum shall be deemed to mean
and include all information filed under the Exchange Act after the Time of Sale and incorporated by
reference in the Final Offering Memorandum.

     The Company hereby confirms its agreements with the Initial Purchasers as follows:

     SECTION 1. Representations and Warranties. Each of the Company and the Guarantors, jointly
and severally, hereby represents, warrants and covenants to each Initial Purchaser that, as of the
date hereof and as of the Closing Date (references in this Section 1 to the “Offering Memorandum”
are to (x) the Pricing Disclosure Package in the case of representations and warranties made as of
the date hereof and (y) the Pricing Disclosure Package and the Final Offering Memorandum in the
case of representations and warranties made as of the Closing Date):

     (a) No Registration Required. Subject to compliance by the Initial Purchasers with the
representations and warranties set forth in Section 2 hereof and with the procedures set
forth in Section 7 hereof, 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 Offering Memorandum to register the Securities
under the Securities Act or, until such time as the Exchange Securities are issued pursuant
to an effective registration statement, to qualify the Indenture under the

 

 

Trust Indenture Act of 1939 (the “Trust Indenture Act,” which term, as used herein,
includes the rules and regulations of the Commission promulgated thereunder).

     (b) No Integration of Offerings or General Solicitation. Neither the Company, the
Guarantors nor any of their respective affiliates (as such term is defined in Rule 501 under
the Securities Act) (each, an “Affiliate”), or any person acting on its or any of their
behalf (other than the Initial Purchasers, as to whom the Company and the Guarantors make no
representation or warranty) has, directly or indirectly, solicited any offer to buy or
offered to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell,
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
Securities to be registered under the Securities Act. None of the Company, the Guarantors
nor any of their respective Affiliates, or any person acting on its or any of their behalf
(other than the Initial Purchasers, as to whom the Company and each Guarantor makes no
representation or warranty) 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 under the Securities Act. With respect to those Securities sold in
reliance upon Regulation S, (i) none of the Company, its Affiliates or any person acting on
its or their behalf (other than the Initial Purchasers, as to whom the Company makes no
representation or warranty) has engaged or will engage in any directed selling efforts
within the meaning of Regulation S and (ii) each of the Company and its Affiliates and any
person acting on its or their behalf (other than the Initial Purchasers, as to whom the
Company and each Guarantor makes no representation or warranty) has complied and will comply
with the offering restrictions set forth in Regulation S.

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

     (d) The Pricing Disclosure Package and Offering Memorandum. Neither the Pricing
Disclosure Package, as of the Time of Sale, nor the Final Offering Memorandum, as of its
date or (as amended or supplemented in accordance with Section 3(a), as applicable) as of
the Closing Date, contains or represents an untrue statement of a material fact or omits 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; provided that this representation,
warranty and agreement shall not apply to statements in or omissions from the Pricing
Disclosure Package, the Final Offering Memorandum or any amendment or supplement thereto
made in reliance upon and in conformity with information furnished to the Company in writing
by any Initial Purchaser through the Representative expressly for use in the Pricing
Disclosure Package, the Final Offering Memorandum or amendment or supplement thereto, as the
case may be. The Pricing Disclosure Package contains, and the Final Offering Memorandum
will contain, all the information specified in, and meeting the requirements of, Rule 144A.
The Company has not distributed and will not distribute, prior to the later of the Closing
Date and the completion of the Initial Purchasers’ distribution of the Securities, any
offering material in connection

 

 

with the offering and sale of the Securities other than the Pricing Disclosure Package
and the Final Offering Memorandum.

     (e) Company Additional Written Communications. The Company has not prepared, made,
used, authorized, approved or distributed and will not prepare, make, use, authorize,
approve or distribute any written communication that constitutes an offer to sell or
solicitation of an offer to buy the Securities other than (i) the Pricing Disclosure Package
(and, solely with respect to the Original Notes, the “Pricing Disclosure Package” as defined
in the Original Purchase Agreement), (ii) the Final Offering Memorandum and (iii) any
electronic road show or other written communications, in each case used in accordance with
Section 3(a). Each such communication by the Company or its agents and representatives
pursuant to clause (iii) of the preceding sentence (each, a “Company Additional Written
Communication”), when taken together with the Pricing Disclosure Package, did not as of the
Time of Sale, and at the Closing Date will not, contain any 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; provided that
this representation, warranty and agreement shall not apply to statements in or omissions
from each such Company Additional Written Communication made in reliance upon and in
conformity with information furnished to the Company in writing by any Initial Purchaser
through the Representative expressly for use in any Company Additional Written
Communication.

     (f) Incorporated Documents. The documents incorporated by reference in the Offering
Memorandum at the time they were or hereafter are filed with the Commission (collectively,
the “Incorporated Documents”) complied and will comply in all material respects with the
requirements of the Exchange Act.

     (g) The Purchase Agreement. This Agreement has been duly authorized, executed and
delivered by the Company and the Guarantors.

     (h) The Registration Rights Agreement and DTC Agreement. The Registration Rights
Agreement has been duly authorized and, on the Closing Date, will have been duly executed
and delivered by, and when duly executed and delivered in accordance with its terms by each
of the other parties thereto, will constitute a valid and binding agreement of, the Company
and the Guarantors, enforceable in accordance with its terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws relating to or affecting the rights and remedies of creditors or by general
equitable principles and except as rights to indemnification may be limited by applicable
law. The DTC Agreement has been duly authorized and, on the Closing Date, will have been
duly executed and delivered by, and when duly executed and delivered in accordance with its
terms by each of the other parties thereto, will constitute a valid and binding agreement
of, the Company, enforceable in accordance with its terms, except as the enforcement thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general equitable
principles.

 

 

     (i) Authorization of the Notes, the Guarantees and the Exchange Securities. The Notes
to be purchased by the Initial Purchasers from the Company will on the Closing Date be in
the form contemplated by the Indenture, have been duly authorized for issuance and sale
pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly
executed by the Company and, when authenticated in the manner provided for in the Indenture
and delivered against payment of the purchase price therefor, will constitute valid and
binding obligations of the Company, enforceable in accordance with their terms, except as
the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws relating to or affecting the rights and remedies of creditors or by
general equitable principles and will be entitled to the benefits of the Indenture. The
Exchange Notes have been duly and validly authorized for issuance by the Company, and when
issued and authenticated in accordance with the terms of the Indenture, the Registration
Rights Agreement and the Exchange Offer, 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, reorganization, moratorium, or
similar laws relating to or affecting enforcement of the rights and remedies of creditors or
by general principles of equity and will be entitled to the benefits of the Indenture. The
Guarantees of the Notes on the Closing Date and the Guarantees of the Exchange Notes when
issued will be in the respective forms contemplated by the Indenture and have been duly
authorized for issuance pursuant to this Agreement and the Indenture; the Guarantees of the
Notes, at the Closing Date, will have been duly executed by each of the Guarantors and, when
the Notes have been authenticated in the manner provided for in the Indenture and issued and
delivered against payment of the purchase price therefor, the Guarantees of the Notes will
constitute valid and binding agreements of the Guarantors; and, when the Exchange Notes have
been authenticated in the manner provided for in the Indenture and issued and delivered in
accordance with the Registration Rights Agreement, the Guarantees of the Exchange Notes will
constitute valid and binding agreements of the Guarantors; in each case, enforceable in
accordance with their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles and will be entitled to
the benefits of the Indenture.

     (j) Authorization of the Indenture. The Indenture has been duly authorized by the
Company and the Guarantors and, at the Closing Date, will have been duly executed and
delivered by the Company and the Guarantors and when duly executed and delivered in
accordance with its terms by each of the other parties thereto, will constitute a valid and
binding agreement of the Company and the Guarantors, enforceable against the Company and the
Guarantors in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles.

     (k) Authorization of the Intercreditor Agreement. The Intercreditor Agreement has been
duly authorized by the Company and each Guarantor and, at the Closing Date, will have been
duly executed and delivered by the Company and each Guarantor and when duly executed and
delivered in accordance with its terms by each of the

 

 

other parties thereto, will constitute a valid and binding agreement of the Company
and each Guarantor, enforceable against the Company and each Guarantor in accordance with
its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles.

     (l) Security Documents. Each of the Security Documents has been duly authorized by the
Company and/or the applicable Guarantor, as appropriate, and, when executed and delivered by
the Company and/or the applicable Guarantor, and when duly executed and delivered in
accordance with its terms by each of the other parties thereto, will constitute a legal and
binding agreement of the Company and/or the applicable Guarantor in accordance with its
terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles. The Security Documents, when
executed and delivered in connection with the sale of the Securities, will create in favor
of the Collateral Agent for the benefit of itself, the Trustee, the holders of the
Securities and the holders of any Permitted Additional Pari Passu Obligations, valid and
enforceable security interests in and liens on the Collateral and, upon the filing or
recordation of mortgages and appropriate Uniform Commercial Code financing statements and
the taking of the other actions, in each case as further described in the Security
Documents, the security interests in and liens on the rights of the Company or the
applicable Guarantor in such Collateral will be perfected security interests and liens,
superior to and prior to the liens of all third persons other than the liens securing the
ABL Facility and Permitted Liens.

     (m) Description of the Transaction Documents. The Transaction Documents will conform
in all material respects to the respective statements relating thereto contained in the
Offering Memorandum.

     (n) No Material Adverse Change. Since the date of the most recent financial statements
of the Company included or incorporated by reference in the Offering Memorandum, (i) there
has not been any change in the capital stock, long-term debt, notes payable or current
portion of long-term debt of the Company or any of its subsidiaries, or any dividend or
distribution of any kind declared, set aside for payment, paid or made by the Company on any
class of capital stock, or any material adverse change, or any development that is
reasonably likely to result in a prospective material adverse change, in or affecting the
business, properties, management, financial position, stockholders’ equity, results of
operations or prospects of the Company and its subsidiaries taken as a whole; (ii) neither
the Company nor any of its subsidiaries has entered into any transaction or agreement that
is material to the Company and its subsidiaries taken as a whole or incurred any liability
or obligation, direct or contingent, that is material to the Company and its subsidiaries
taken as a whole; and (iii) neither the Company nor any of its subsidiaries has sustained
any material loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor disturbance or dispute or
any action, order or decree of any court or arbitrator or governmental or regulatory
authority, except, in each case, as otherwise disclosed in the Pricing Disclosure Package
and the Final Offering Memorandum.

 

 

     (o) Independent Accountants. Deloitte & Touche LLP, which expressed its opinion with
respect to the financial statements (which term as used in this Agreement includes the
related notes thereto) and supporting schedules filed with the Commission and incorporated
by reference in the Offering Memorandum is an independent registered public accounting firm
within the meaning of the Securities Act, the Exchange Act and the rules of the Public
Company Accounting Oversight Board, and any non-audit services provided by Deloitte & Touche
to the Company or any of the Guarantors have been approved by the Audit Committee of the
Board of Directors of the Company.

     (p) Preparation of the Financial Statements. The financial statements and the related
notes thereto of the Company and its consolidated subsidiaries included or incorporated by
reference in the Offering Memorandum present fairly in all material respects the financial
position of the Company and its consolidated subsidiaries as of the dates indicated and the
results of their operations and the changes in their cash flows for the periods specified;
such financial statements have been prepared in conformity with U.S. generally accepted
accounting principles applied on a consistent basis throughout the periods covered thereby;
and the other financial information included or incorporated by reference in the Offering
Memorandum has been derived from the accounting records of the Company and its consolidated
subsidiaries and presents fairly in all material respects the information shown thereby.
Nothing has come to the attention of the Company that has caused the Company to believe that
the statistical and market-related data included or incorporated by reference in the
Offering Memorandum is not based on or derived from sources that are reliable and accurate
in all material respects.

     (q) Incorporation and Good Standing of the Company and the Guarantors. The Company and
each of the Guarantors have been duly organized and are validly existing and in good
standing under the laws of their respective jurisdictions of organization, are duly
qualified to do business and are in good standing in each jurisdiction in which their
respective ownership or lease of property or the conduct of their respective businesses
requires such qualification, and have all power and authority necessary to own or hold their
respective properties and to conduct the businesses in which they are engaged, except where
the failure to be so qualified or in good standing or have such power or authority would
not, individually or in the aggregate, be reasonably expected to have a material adverse
effect on the business, properties, management, financial position, stockholders’ equity,
results of operations or prospects of the Company and its subsidiaries taken as a whole or
on the performance by the Company of its obligations under the Transaction Documents (a
“Material Adverse Effect”). The jurisdictions in which the Company is required to be
qualified to do business, except for those jurisdictions where the failure to be so
qualified would not have a Material Adverse Effect, are listed on Schedule B. The Company
does not own or control, directly or indirectly, any corporation, association or other
entity other than the subsidiaries listed in Schedule C to this Agreement.

     (r) Capitalization and Other Capital Stock Matters. At January 1, 2011, on a
consolidated basis, after giving pro forma effect to the issuance and sale of the Securities
pursuant hereto, the Company would have had an authorized and outstanding capitalization as
set forth in the Offering Memorandum under the caption “Capitalization”

 

 

(other than for subsequent issuances of capital stock, if any, pursuant to employee
benefit plans described in the Company’s filings with the Commission or upon exercise of
outstanding convertible securities, options or warrants described in the Company’s filings
with the Commission).

     (s) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
Required. Neither the Company nor any of its subsidiaries is (i) in violation of its
charter or by-laws or similar organizational documents; (ii) in default, and no event has
occurred that, with notice or lapse of time or both, would constitute such a default, in the
due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which the
Company or any of its subsidiaries is a party or by which the Company or any of its
subsidiaries is bound or to which any of the property or assets of the Company or any of its
subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order,
rule or regulation of any court or arbitrator or governmental or regulatory authority,
except, in the case of clauses (ii) and (iii) above, for any such default or violation that
would not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect or that is disclosed in the Offering Memorandum. Assuming the accuracy of,
and the compliance with, the representations, warranties and agreements set forth in this
Agreement, the execution, delivery and performance by the Company of each of the Transaction
Documents, the issuance and sale of the Securities and the consummation of the transactions
contemplated by the Transaction Documents or the Offering Memorandum will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, or result in the creation or imposition of any lien, charge or encumbrance
upon any property or assets of the Company or any of its subsidiaries pursuant to, any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which
the Company or any of its subsidiaries is a party or by which the Company or any of its
subsidiaries is bound or to which any of the property or assets of the Company or any of its
subsidiaries is subject (except as otherwise described in the Offering Memorandum), (ii)
result in any violation of the provisions of the charter or by-laws or similar
organizational documents of the Company or any of its subsidiaries or (iii) result in the
violation of any law or statute or any judgment, order, rule or regulation of any court or
arbitrator or governmental or regulatory authority, except where such default, violation,
lien, charge or encumbrance (in the case of (i) or (iii)) would not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect. Except as disclosed in
the Offering Memorandum with respect to the Tender Offer, and assuming the accuracy of, and
the compliance with, the representations, warranties and agreements set forth in this
Agreement, no consent, approval, authorization, order, registration or qualification of or
with any court or arbitrator or governmental or regulatory authority is required for the
execution, delivery and performance of the Transaction Documents by the Company and the
Guarantors to the extent a party thereto, or the issuance and delivery of the Securities or
the Exchange Securities, or consummation of the transactions contemplated hereby and thereby
and by the Offering Memorandum, except (A) such as have been obtained or made by the Company
and the Guarantors, as applicable, and are in full force and effect under the Securities
Act, applicable securities laws of the several states of the United States or provinces of
Canada and except such as may be required by the securities laws of the several states of
the United

 

 

States or provinces of Canada with respect to the Company’s obligations under the
Registration Rights Agreement and (B) filings of financing statements under the Uniform
Commercial Code (the “UCC”) as from time to time in effect in the relevant jurisdictions and
any filing to be made in the United States Patent and Trademark Office or the United States
Copyright Office.

     (t) Legal Proceedings. Except as disclosed in the Offering Memorandum, there are no
legal, governmental or regulatory investigations, actions, suits or proceedings pending to
which the Company or any of its subsidiaries is or may be a party or to which any property
of the Company or any of its subsidiaries is or may be the subject that, individually or in
the aggregate, would reasonably be expected to have a Material Adverse Effect; no such
investigations, actions, suits or proceedings are threatened or, to the knowledge of the
Company, contemplated by any governmental or regulatory authority or threatened by others.

     (u) Title to Intellectual Property. Except as disclosed in the Offering Memorandum,
(i) the Company and its subsidiaries own or possess adequate rights to use all patents,
patent applications, trademarks, service marks, trade names, trademark registrations,
service mark registrations, copyrights, licenses and know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information, systems or
procedures) necessary for the conduct of their respective businesses; and (ii) the conduct
of their respective businesses will not conflict in any material respect with any such
rights of others, and the Company and its subsidiaries have not received any notice of any
claim of infringement of or conflict with any such rights of others, except, in each case of
(i) and (ii), as would not, individually or in the aggregate, be reasonably expected to have
a Material Adverse Change.

     (v) All Necessary Permits, etc. The Company and its subsidiaries possess all licenses,
certificates, permits and other authorizations issued by, and have made all declarations and
filings with, the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or
the conduct of their respective businesses as described in the Offering Memorandum, except
where the failure to possess or make the same would not, individually or in the aggregate,
have a Material Adverse Effect; and except as disclosed in the Offering Memorandum, neither
the Company nor any of its subsidiaries has received notice of any revocation or
modification of any such license, certificate, permit or authorization or has any reason to
believe that any such license, certificate, permit or authorization will not be renewed in
the ordinary course, except as would not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect.

     (w) Title to Real and Personal Property. The Company and its subsidiaries have good
and valid title in fee simple to, or have valid rights to lease or otherwise use, all items
of real and personal property that are material to the respective businesses of the Company
and its subsidiaries, in each case free and clear of all liens, encumbrances, claims and
defects and imperfections of title except those that (i) do not materially interfere with
the use made and proposed to be made of such property by the Company and its

 

 

subsidiaries or (ii) would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.

     (x) Tax Law Compliance. The Company and its subsidiaries have paid all federal, state,
local and foreign taxes and filed all tax returns required to be paid or filed through the
date hereof, except where the failure to so pay or so file would not, individually or in the
aggregate, be reasonably expected to have a Material Adverse Effect; and except as otherwise
disclosed in the Offering Memorandum or as would not, individually or in the aggregate, be
reasonably expected to have a Material Adverse Effect, there is no tax deficiency that has
been, or could reasonably be expected to be, asserted against the Company or any of its
subsidiaries or any of their respective properties or assets.

     (y) Company and Guarantors Not an “Investment Company.” The Company has been advised
of the rules and requirements under the Investment Company Act of 1940, as amended (the
“Investment Company Act,” which term, as used herein, includes the rules and regulations of
the Commission promulgated thereunder). Neither the Company nor any Guarantor is, or after
receipt of payment for the Securities will be, an “investment company” within the meaning of
the Investment Company Act and will conduct its business in a manner so that it will not
become subject to the Investment Company Act.

     (z) Insurance. The Company and its subsidiaries have insurance covering their
respective properties, operations, personnel and businesses, including but not limited to
business interruption insurance, which insurance is in amounts and insures against such
losses and risks as are adequate to protect the Company and its subsidiaries and their
respective businesses, except as would not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect; and neither the Company nor any of its
subsidiaries has (i) received notice from any insurer or agent of such insurer that capital
improvements or other expenditures are required or necessary to be made in order to continue
such insurance or (ii) any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage at
reasonable cost from similar insurers as may be necessary to continue its business, except
as would not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect.

     (aa) No Price Stabilization or Manipulation. The Company and the Guarantors have not
taken, directly or indirectly, any action designed to or that could reasonably be expected
to cause or result in any stabilization or manipulation of the price of the Securities.

     (bb) Solvency. (a) The Company is and (b) the Guarantors, on a consolidated basis,
are, and immediately after the Closing Date will be, Solvent. As used herein, the term
“Solvent” means, with respect to any person on a particular date, that on such date (i) the
fair market value of the assets of such person is greater than the total amount of
liabilities (including contingent liabilities) of such person, (ii) the present fair salable
value of the assets of such person is greater than the amount that will be required to pay
the probable liabilities of such person on its debts as they become absolute and matured,
(iii)

 

 

such person is able to realize upon its assets and pay its debts and other liabilities,
including contingent obligations, as they mature and (iv) such person does not have
unreasonably small capital As of the date hereof and at the Closing Date, neither the
Company nor any of the Guarantors has, and will have, incurred debts beyond its ability to
pay such debts as they mature, taking into account the timing of and amounts of cash to be
received by it and the timing of the amounts of cash to be payable on or in respect of its
indebtedness.

     (cc) Compliance with Sarbanes-Oxley. There is and has been no failure on the part of
the Company or (to the knowledge of the Company) any of the Company’s directors or officers,
in their capacities as such, to comply 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.

     (dd) Company’s Accounting System. The Company and its subsidiaries maintain systems of
“internal control over financial reporting” (as defined in Rule l3a-15(f) of the Exchange
Act) that comply with the requirements of the Exchange Act and have been designed by, or
under the supervision of, their respective principal executive and principal financial
officers, or persons performing similar functions, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles, including,
but not limited to policies and procedures that (i) pertain to the maintenance of records
that in reasonable detail accurately and fairly reflect the transactions and dispositions of
the assets of the Company, (ii) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company’s assets that could have a material effect on
the financial statements. Except as disclosed in the Offering Memorandum, there are no
“material weaknesses” (as defined in Rule 1-02(a)(4) of Regulation S-X) in the Company’s
internal control over financial reporting. The Company’s auditors and the Audit Committee
of the Board of Directors of the Company have been advised of: (i) all “significant
deficiencies” and “material weaknesses” (as defined in Rule 1-02(a)(4) of Regulation S-X) in
internal control over financial reporting; and (ii) any fraud, whether or not material, that
involves management or other employees who have a significant role in the Company’s internal
control over financial reporting.

     (ee) Disclosure Controls and Procedures. The Company and its subsidiaries maintain an
effective system of disclosure controls and procedures” (as defined in Rule l3a-15(e) of the
Exchange Act) that is designed to ensure that information required to be disclosed by the
Company in reports that it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the Commission’s rules and
forms, including controls and procedures designed to ensure that such information required
to be disclosed in such reports is accumulated and communicated

 

 

to the Company’s management as appropriate to allow timely decisions regarding
required disclosure. The Company and its subsidiaries have carried out evaluations of the
effectiveness of their disclosure controls and procedures as required by Rule 13a-15 of the
Exchange Act.

     (ff) Regulations T, U, X. Neither the issuance, sale and delivery of the Securities
nor the application of the proceeds thereof by the Company as described in the Offering
Memorandum will violate Regulation T, U or X of the Board of Governors of the Federal
Reserve System or any other regulation of such Board of Governors.

     (gg) Compliance with Environmental Laws. (i) The Company and its subsidiaries (x) are,
and at all prior times were, in compliance with any and all applicable federal, state, local
and foreign laws, rules, regulations, requirements, decisions and orders relating to the
protection of human health or safety, the environment, natural resources, hazardous or toxic
substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”), (y)
have received and are in compliance with all permits, licenses, certificates or other
authorizations or approvals required of them under applicable Environmental Laws to conduct
their respective businesses, and (z) have not received notice of any actual or potential
liability under or relating to any Environmental Laws, including for the investigation or
remediation of any disposal or release of hazardous or toxic substances or wastes,
pollutants or contaminants, and have no knowledge of any event or condition that would
reasonably be expected to result in any such notice, and (ii) there are no costs or
liabilities associated with Environmental Laws of or relating to the Company or its
subsidiaries; except in the case of each of (i) and (ii) above, for any such failure to
comply, or failure to receive required permits, licenses or approvals, or cost or liability,
as would not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Change; and (iii) except as disclosed in the Offering Memorandum, (x) there are no
proceedings that are pending, or that are known to be contemplated, against the Company or
any of its subsidiaries under any Environmental Laws in which a governmental entity is also
a party, other than such proceedings regarding which it is reasonably believed no monetary
sanctions of $100,000 or more will be imposed, (y) the Company and its subsidiaries are not
aware of any issues regarding compliance with Environmental Laws, or liabilities or other
obligations under Environmental Laws or concerning hazardous or toxic substances or wastes,
pollutants or contaminants, that would reasonably be expected to have a Material Adverse
Change, and (z) none of the Company and its subsidiaries anticipates material capital
expenditures relating to any Environmental Laws.

     (hh) Hazardous Substances. Except as disclosed in the Offering Memorandum, there has
been no storage, generation, transportation, handling, treatment, disposal, discharge,
emission, or other release of any kind of toxic wastes or hazardous substances, including,
but not limited to, any naturally occurring radioactive materials, brine, drilling mud,
crude oil, natural gas liquids and other petroleum materials, by, due to or caused by the
Company or any of its subsidiaries (or, to the best of the Company’s knowledge, any other
entity (including any predecessor) for whose acts or omissions the Company or any of its
subsidiaries is or could reasonably be expected to be liable) upon any of the property now
or previously owned or leased by the Company or any of its subsidiaries, or upon

 

 

any other property, in violation of any Environmental Laws or in a manner or to a
location that could reasonably be expected to give rise to any liability under the
Environmental Laws, except for any violation or liability which would not, individually or
in the aggregate, be reasonably expected to have a Material Adverse Effect.

     (ii) Compliance with ERISA. Except as disclosed in the Offering Memorandum, (i) each
employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), for which the Company or any member of its
“Controlled Group” (defined as any organization which is a member of a controlled group of
corporations within the meaning of Section 414 of the Internal Revenue Code of 1986, as
amended (the “Code”)) would have any liability (each, a “Plan”) has been maintained in
compliance with its terms and the requirements of any applicable statutes, orders, rules and
regulations, including but not limited to ERISA and the Code; (ii) no prohibited
transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has
occurred with respect to any Plan excluding transactions effected pursuant to a statutory or
administrative exemption; (iii) for each Plan that is subject to the funding rules of
Section 412 of the Code or Section 302 of ERISA, no failure to satisfy the minimum funding
standards of Section 412 of the Code or Section 302 of ERISA, has occurred or is reasonably
expected to occur; (iv) the fair market value of the assets of each Plan exceeds the present
value of all benefits accrued under such Plan (determined based on those assumptions used to
fund such Plan); (v) no “reportable event” (within the meaning of Section 4043(c) of ERISA)
has occurred or is reasonably expected to occur; and (vi) neither the Company nor any member
of the Controlled Group has incurred, nor reasonably expects to incur, any liability under
Title IV of ERISA (other than contributions to the Plan or premiums to the PBGC, in the
ordinary course and without default) in respect of a Plan (including a “multiemployer plan”,
within the meaning of Section 4001(a)(3) of ERISA), except as would not, individually or in
the aggregate, be reasonably expected to have a Material Adverse Effect.

     (jj) No Labor Disputes. Except as disclosed in the Offering Memorandum, no labor
disturbance by or dispute with employees of the Company or any of its subsidiaries exists
or, to the best knowledge of the Company, is contemplated or threatened and the Company is
not aware of any existing or imminent labor disturbance by, or dispute with, the employees
of any of its or its subsidiaries’ principal suppliers, contractors or customers, except as
would not be reasonably expected to have a Material Adverse Effect.

     (kk) Related Party Transactions. No relationship, direct or indirect, exists between
or among the Company or any of its subsidiaries, on the one hand, and the directors,
officers, stockholders, customers or suppliers of the Company or any of its subsidiaries, on
the other, that is required by Item 404 of Regulation S-K of the Securities Act to be
described in a registration statement to be filed with the Commission and that is not so
described in the Offering Memorandum.

     (ll) No Unlawful Contributions or Other Payments. Neither the Company nor any of its
subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or
affiliate 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 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, its subsidiaries 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.

     “FCPA” means Foreign Corrupt Practices Act of 1977, as amended, and the rules and
regulations thereunder.

     (mm) No Conflict with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times 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 applicable
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 involving the Company
or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the
best knowledge of the Company, threatened.

     (nn) No Conflict with OFAC Laws. Neither the Company nor any of its subsidiaries nor,
to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the
Company or any of its subsidiaries 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.

     (oo) Regulation S. The Company, the Guarantors and their respective Affiliates and all
persons acting on their behalf (other than the Initial Purchasers, as to whom the Company
and the Guarantors make no representation) have complied with and will comply with the
offering restrictions requirements of Regulation S in connection with the offering of the
Securities outside the United States and, in connection therewith, the Final Offering
Memorandum will contain the disclosure required by Rule 902. The Company is a “reporting
issuer,” as defined in Rule 902 under the Securities Act.

Any certificate signed by an officer of the Company or any Guarantor and delivered to the Initial
Purchasers or to counsel for the Initial Purchasers shall be deemed to be a representation and
warranty by the Company or such Guarantor to each Initial Purchaser as to the matters set forth
therein.

 

 

     SECTION 2. Purchase, Sale and Delivery of the Securities.

     (a) The Securities. Each of the Company and the Guarantors agrees to issue and sell to the
Initial Purchasers, severally and not jointly, all of the Add-On Notes (and related Guarantees),
and, subject to the conditions set forth herein, the Initial Purchasers agree, severally and not
jointly, to purchase from the Company and the Guarantors the aggregate principal amount of Add-On
Notes (and related Guarantees) set forth opposite their names on Schedule A hereto, at a purchase
price of 98.625% of the principal amount thereof payable on the Closing Date, in each case, on the
basis of the representations, warranties and agreements herein contained, and upon the terms herein
set forth.

     (b) The Closing Date. Delivery of certificates for the Notes in definitive form to be
purchased by the Initial Purchasers and payment therefor shall be made at the offices of Cahill
Gordon & Reindel llp, 80 Pine Street, New York, New York 10005 (or such other place as may
be agreed to by the Company and Merrill Lynch) at 9:00 a.m. New York City time, on April 7, 2011,
or such other time and date as Merrill Lynch shall designate by notice to the Company (the time and
date of such closing are called the “Closing Date”).

     (c) Delivery of the Securities. The Company shall deliver, or cause to be delivered, to
Merrill Lynch for the accounts of the several Initial Purchasers certificates for the Notes at the
Closing Date against the irrevocable release of a wire transfer of immediately available funds for
the amount of the purchase price therefor. The certificates for the Notes shall be in such
denominations and registered in the name of Cede & Co., as nominee of the Depositary, pursuant to
the DTC Agreement, and shall be made available for inspection on the business day preceding the
Closing Date at a location in New York City, as Merrill Lynch may designate. Time shall be of the
essence, and delivery at the time and place specified in this Agreement is a further condition to
the obligations of the Initial Purchasers.

     (d) Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser severally
and not jointly represents and warrants to, and agrees with, the Company that:

     (i) it will offer and sell Securities only to (a) persons who it reasonably believes
are “qualified institutional buyers” within the meaning of Rule 144A (“Qualified
Institutional Buyers”) in transactions meeting the requirements of Rule 144A or (b) upon the
terms and conditions set forth in Annex I to this Agreement;

     (ii) it is an institutional “accredited investor” within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act; and

     (iii) it will not offer or sell Securities by, any form of general solicitation or
general advertising, including but not limited to the methods described in Rule 502(c) under
the Securities Act.

     SECTION 3. Additional Covenants. Each of the Company and the Guarantors, jointly and
severally, further covenants and agrees with each Initial Purchaser as follows:

     (a) Preparation of Final Offering Memorandum; Initial Purchasers’ Review of Proposed
Amendments and Supplements and Company Additional Written

 

 

Communications. The Company will not amend or supplement the Preliminary Offering
Memorandum (except by the Pricing Supplement) or the Pricing Supplement. The Company will
not amend or supplement the Final Offering Memorandum prior to the Closing Date unless the
Representative shall previously have been furnished a copy of the proposed amendment or
supplement at least two business days prior to the proposed use or filing, and shall not
have objected to such amendment or supplement. Before making, preparing, using,
authorizing, approving or distributing any Company Additional Written Communication, the
Company will furnish to the Representative a copy of such written communication for review
and will not make, prepare, use, authorize, approve or distribute any such written
communication to which the Representative reasonably objects.

     (b) Amendments and Supplements to the Final Offering Memorandum. If, prior to the
completion of the placement of the Securities by the Initial Purchasers with the Subsequent
Purchasers, any event shall occur or condition exist as a result of which it is necessary to
amend or supplement the Final Offering Memorandum, as then amended or supplemented, in order
to make the statements therein, in the light of the circumstances when the Final Offering
Memorandum is delivered to a Subsequent Purchaser, not misleading, or if in the judgment of
the Representative or counsel for the Initial Purchasers it is otherwise necessary to amend
or supplement the Final Offering Memorandum to comply with law, the Company agrees to
promptly prepare (subject to Section 3(a) hereof) and furnish at its own expense to the
Initial Purchasers, amendments or supplements to the Final Offering Memorandum so that the
statements in the Final Offering Memorandum as so amended or supplemented will not, in the
light of the circumstances at the Closing Date and at the time of sale of the Securities, be
misleading or so that the Final Offering Memorandum, as amended or supplemented, will comply
with all applicable law.

     (c) Copies of the Final Offering Memorandum. The Company agrees to furnish the Initial
Purchasers, without charge, as many copies of the Pricing Disclosure Package and the Final
Offering Memorandum and any amendments and supplements thereto as they shall reasonably
request.

     (d) Blue Sky Compliance. Each of the Company and the Guarantors shall cooperate with
the Representative and counsel for the Initial Purchasers to qualify or register (or to
obtain exemptions from qualifying or registering) all or any part of the Securities for
offer and sale under the securities laws of the several states of the United States, the
provinces of Canada or any other jurisdictions designated by the Representative, shall
comply with such laws and shall continue such qualifications, registrations and exemptions
in effect so long as required for the distribution of the Securities. None of the Company
or any of the Guarantors shall be required to qualify as a foreign corporation or to take
any action that would subject it to general service of process in any such jurisdiction
where it is not presently qualified or where it would be subject to taxation as a foreign
corporation. The Company will advise the Representative promptly of the suspension of the
qualification or registration of (or any such exemption relating to) the Securities for
offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding
for any such purpose, and in the event of the issuance of any order
suspending such qualification,

 

 

registration or exemption, each of the Company and the Guarantors shall use
its best efforts to obtain the withdrawal thereof at the earliest possible moment.

     (e) Use of Proceeds. The Company shall apply the net proceeds from the sale of the
Add-On Notes sold by it in the manner described under the caption “Use of Proceeds” in the
Pricing Disclosure Package.

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

     (g) Additional Issuer Information. Prior to the completion of the placement of the
Securities by the Initial Purchasers with the Subsequent Purchasers, the Company shall file,
on a timely basis, with the Commission and the NYSE all reports and documents required to be
filed under Section 13 or 15 of the Exchange Act, in accordance with the Indenture.
Additionally, at any time when the Company is not subject to Section 13 or 15 of the
Exchange Act, for the benefit of holders and beneficial owners from time to time of the
Securities, the Company shall furnish, at its expense, upon request, to holders and
beneficial owners of Securities and prospective purchasers of Securities information
(“Additional Issuer Information”) satisfying the requirements of Rule 144A(d), in accordance
with the Indenture.

     (h) Agreement Not To Offer or Sell Additional Securities. During the period of 180
days following the date hereof, the Company will not, without the prior written consent of
Merrill Lynch (which consent may be withheld at the sole discretion of Merrill Lynch),
directly or indirectly, sell, offer, contract or grant any option to sell, pledge, transfer
or establish an open “put equivalent position” within the meaning of Rule 16a-1 under the
Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any
registration statement under the Securities Act in respect of, any debt securities of the
Company or securities exchangeable for or convertible into debt securities of the Company
(other than as contemplated by the Original Purchase Agreement and this Agreement and to
register the Exchange Securities). For purposes of the Original Purchase Agreement, Merrill
Lynch hereby consents to the sale of the Add-On Notes (and related Guarantees) pursuant to
this Agreement.

     (i) Future Reports to the Initial Purchasers. At any time when the Company is not
subject to Section 13 or 15 of the Exchange Act and any Securities or Exchange Securities
remain outstanding, the Company will furnish to the Representative and, upon request, to
each of the other Initial Purchasers all reports required under the Indenture to be
delivered to holders of the Notes, if such documents are not filed with the Commission
within the time periods specified by the Commission’s rules and regulations under Section 13
or 15 of the Exchange Act.

     (j) No Integration. The Company agrees that it will not and will cause its Affiliates
not to make any offer or sale of securities of the Company of any class if, as a result of
the doctrine of “integration” referred to in Rule 502 under the Securities 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 Securities Act
provided by Section 4(2) thereof or by Rule 144A or by Regulation S thereunder or otherwise.

     (k) No General Solicitation or Directed Selling Efforts. The Company agrees that it
will not and will not permit any of its Affiliates or any other person acting on its or
their behalf (other than the Initial Purchasers, as to which no covenant is given) to (i)
solicit offers for, or offer or sell, the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in
any manner involving a public offering within the meaning of Section 4(2) of the Securities
Act or (ii) engage in any directed selling efforts with respect to the Securities within the
meaning of Regulation S, and the Company will and will cause all such persons to comply with
the offering restrictions requirement of Regulation S with respect to the Securities.

     (l) No Restricted Resales. The Company will not, and will not permit any of its
affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Notes that
have been reacquired by any of them.

     (m) Legended Securities. Each certificate for a Security Note will bear the legend
contained in “Transfer Restrictions” in the Preliminary Offering Memorandum for the time
period and upon the other terms stated in the Preliminary Offering Memorandum.

     (n) Notwithstanding anything to the contrary contained in this Agreement, the Indenture
or the Security Documents, the Company and the applicable subsidiaries shall take the
actions specified in Schedule E within the time period set forth therein. The
provisions of said Schedule E shall be deemed incorporated by reference herein as
fully as if set forth herein in their entirety.

     The Representative on behalf of the several Initial Purchasers, may, in its sole discretion,
waive in writing the performance by the Company or any Guarantor of any one or more of the
foregoing covenants or extend the time for their performance.

     SECTION 4. Payment of Expenses. Each of the Company and the Guarantors, jointly and
severally, agrees to pay all costs, fees and expenses incurred in connection with the performance
of its obligations hereunder and in connection with the transactions contemplated hereby,
including, without limitation, (i) all expenses incident to the issuance and delivery of the
Securities (including all printing and engraving costs), (ii) all necessary issue, transfer and
other stamp taxes in connection with the issuance and sale of the Securities to the Initial
Purchasers, (iii) all fees and expenses of the Company’s and the Guarantors’ counsel, independent
public or certified public accountants and other advisors, (iv) all costs and expenses incurred in
connection with the preparation, printing, filing, shipping and distribution of the Pricing
Disclosure Package and the Final Offering Memorandum (including financial statements and exhibits),
and all amendments and supplements thereto, and the Transaction Documents, (v) all filing fees,
attorneys’

 

 

fees and expenses incurred by the Company, the Guarantors or the Initial Purchasers in
connection with qualifying or registering (or obtaining exemptions from the qualification or
registration of) all or any part of the Securities for offer and sale under the securities laws of
the several states of the United States, the provinces of Canada or other jurisdictions designated
by the Initial Purchasers (including, without limitation, the cost of preparing, printing and
mailing preliminary and final blue sky or legal investment memoranda and any related supplements to
the Pricing Disclosure Package or the Final Offering Memorandum, (vi) the fees and expenses of the
Trustee, including the fees and disbursements of counsel for the Trustee in connection with the
Indenture, the Security Documents, the Intercreditor Agreement, the Securities and the Exchange
Securities, (vii) any fees payable in connection with the rating of the Securities or the Exchange
Securities with the ratings agencies, (viii) any filing fees incident to, and any reasonable fees
and disbursements of counsel to the Initial Purchasers in connection with the review by FINRA, if
any, of the terms of the sale of the Securities or the Exchange Securities and in connection with
perfecting the security interests in the Collateral (ix) all fees and expenses (including
reasonable fees and expenses of counsel) of the Company and the Guarantors in connection with
approval of the Securities by the Depositary for “book-entry” transfer, and the performance by the
Company and the Guarantors of their respective other obligations under this Agreement, (x) all
expenses incident to the “road show” for the offering of the Securities (provided that the Initial
Purchasers shall be responsible for half of the cost of any chartered aircraft) and (xi) all
reasonable out of pocket costs and expenses (including, without limitation, reasonable fees,
disbursements and other charges of legal counsel) incurred in connection with the creation,
documentation and perfection of the security interests in the Collateral. Except as expressly
provided in this Section 4 and Sections 6, 8 and 9 hereof, the Initial Purchasers shall pay their
own expenses, including the fees and disbursements of their counsel.

     SECTION 5. Conditions of the Obligations of the Initial Purchasers. The obligations of the
several Initial Purchasers to purchase and pay for the Add-On Notes (and related Guarantees) as
provided herein on the Closing Date shall be subject to the accuracy of the representations and
warranties on the part of the Company and the Guarantors set forth in Section 1 hereof as of the
date hereof and as of the Closing Date as though then made and to the timely performance by the
Company of its covenants and other obligations hereunder, and to each of the following additional
conditions:

     (a) Accountants’ Comfort Letter. On the date hereof, the Initial Purchasers shall have
received from Deloitte & Touche LLP, the independent registered public accounting firm for
the Company, a “comfort letter” dated the date hereof addressed to the Initial Purchasers,
in form and substance satisfactory to the Representative, covering the financial information
in the Pricing Disclosure Package and other customary matters (which may be in the form of a
“bring-down comfort letter” with respect to the comfort letter delivered under the Original
Purchase Agreement). In addition, on the Closing Date, the Initial Purchasers shall have
received from such accountants a “bring-down comfort letter” dated the Closing Date
addressed to the Initial Purchasers, in form and substance satisfactory to the
Representative, in the form of the “comfort letter” delivered on the date hereof, except
that (i) it shall cover the financial information in the Final Offering Memorandum and any
amendment or supplement thereto and (ii) procedures shall be brought down to a date no more
than 3 days prior to the Closing Date.

 

 

     (b) No Material Adverse Change or Ratings Agency Change. For the period from and after
the date of this Agreement and prior to the Closing Date:

     (i) no event or condition of a type described in Section 1(n) hereof shall have
occurred or shall exist, which event or condition is not disclosed in the Pricing
Disclosure Package (excluding any amendment or supplement thereto) and the Final
Offering Memorandum (excluding any amendment or supplement thereto) and the effect
of which in the judgment of the Representative makes it impracticable or inadvisable
to proceed with the offering, sale or delivery of the Securities on the Closing
Date, on the terms and in the manner contemplated by this Agreement, the Pricing
Disclosure Package and the Final Offering Memorandum; and

     (ii) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a possible
change that does not indicate the direction of the possible change, in the rating
accorded the Company or any of its subsidiaries or any of their securities or
indebtedness by any “nationally recognized statistical rating organization” as such
term is defined for purposes of Rule 436 under the Securities Act.

     (c) Opinion of Counsel for the Company. On the Closing Date, the Initial Purchasers
shall have received an opinion of (i) Paul, Weiss, Rifkind, Wharton & Garrison, counsel for
the Company, dated as of such Closing Date, in form and substance reasonably satisfactory to
the Initial Purchasers, (ii) Nicholas Rubino, General Counsel of the Company, in form and
substance reasonably satisfactory to the Initial Purchasers, (ii) local counsel in
California and Washington, dated as of the Closing Date, each in form and substance
reasonably satisfactory to the Initial Purchasers.

     (d) Opinion of Counsel for the Initial Purchasers. On the Closing Date, the Initial
Purchasers shall have received the favorable opinion of Cahill Gordon & Reindel
llp, counsel for the Initial Purchasers, dated as of such Closing Date, with
respect to such matters as may be reasonably requested by the Initial Purchasers.

     (e) Officers’ Certificate. On the Closing Date, the Initial Purchasers shall have
received a written certificate executed by the Chairman of the Board, Chief Executive
Officer or President of the Company and each Guarantor and the Chief Financial Officer or
Chief Accounting Officer of the Company and each Guarantor, dated as of the Closing Date, to
the effect set forth in Section 5(b)(i) and (ii) hereof, and further to the effect that:

     (i) the representations, warranties and covenants of the Company and the
Guarantors set forth in Section 1 hereof were true and correct as of the date hereof
and are true and correct as of the Closing Date with the same force and effect as
though expressly made on and as of the Closing Date; and

 

 

     (ii) the Company has complied with all the agreements and satisfied all the
conditions on its part to be performed or satisfied at or prior to the Closing Date.

     (f) Indenture; Registration Rights Agreement. The Company and the Guarantors shall
have executed and delivered the Indenture, in form and substance reasonably satisfactory to
the Initial Purchasers, and the Initial Purchasers shall have received executed copies
thereof. The Company and the Guarantors shall have executed and delivered the Registration
Rights Agreement, in form and substance reasonably satisfactory to the Initial Purchasers,
and the Initial Purchasers shall have received such executed counterparts.

     (g) Security Documents and Intercreditor Agreement. The Company and the Guarantors
shall have executed and delivered perfection certificates dated as of the Closing Date (the
“Perfection Certificates”) in form and substance reasonably satisfactory to the Initial
Purchasers. Except as otherwise provided for in the Security Agreement, the Indenture or
the other documents entered into pursuant to the Transactions, the Representative and the
Collateral Agent shall have received each of the Security Documents and the Intercreditor
Agreement, in form and substance reasonably satisfactory to the Initial Purchasers, and all
other certificates, agreements or instruments necessary to perfect the Collateral Agent’s
security interest in all of the Collateral, including but not limited to, UCC financing
statements in appropriate form for filing and filings with the United States Patent and
Trademark Office and United States Copyright Office in appropriate form for filing; each
such document executed by the Company and each other party thereto, and each such document
shall be in full force and effect and evidence that all of the liens on the Collateral other
than Permitted Liens have been released. The Representative shall also have received (i)
certified copies of UCC, tax and judgment lien searches or equivalent reports or searches,
each of a recent date listing all effective financing statements, lien notices or comparable
documents that name the Company or any Guarantor as debtor and that are required by the
Perfection Certificates or that the Representative deem necessary or appropriate, none of
which encumber the Notes Priority Collateral covered or intended to be covered by the
Security Documents (other than Permitted Liens) and (ii) acceptable evidence of payment or
arrangements for payment by the Company and the Guarantors of all applicable recording
taxes, fees, charges, costs and expenses required for the recording of the Security
Documents.

     (h) Additional Documents. On or before the Closing Date, the Initial Purchasers and
counsel for the Initial Purchasers shall have received such information, documents and
opinions as they may reasonably require for the purposes of enabling them to pass upon the
issuance and sale of the Securities as contemplated herein, or in order to evidence the
accuracy of any of the representations and warranties, or the satisfaction of any of the
conditions or agreements, herein contained.

     (i) Concurrent Sale of Original Notes. Concurrently with the purchase and sale of the
Add-On Notes (and related Guarantees) hereunder, the purchase and sale of the Original Notes
(and related Guarantees) pursuant to the Original Purchase Agreement shall have been
consummated.

 

 

     If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Representative by notice to the Company at any
time on or prior to the Closing Date, which termination shall be without liability on the part of
any party to any other party, except that Sections 4, 6, 8 and 9 hereof shall at all times be
effective and shall survive such termination.

     SECTION 6. Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by
the Representative pursuant to Section 5 or 10 hereof, including if the sale to the Initial
Purchasers of the Securities on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company to perform any agreement herein or to comply with
any provision hereof, the Company agrees to reimburse the Initial Purchasers, severally, upon
demand for all out-of-pocket expenses that shall have been reasonably incurred by the Initial
Purchasers in connection with the proposed purchase and the offering and sale of the Securities,
including, without limitation, fees and disbursements of counsel, printing expenses, travel
expenses, postage, facsimile and telephone charges.

     SECTION 7. Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one
hand, and the Company and each of the Guarantors, on the other hand, hereby agree to observe the
following procedures in connection with the offer and sale of the Securities:

     (a) Offers and sales of the Securities will be made only by the Initial Purchasers or
Affiliates thereof qualified to do so in the jurisdictions in which such offers or sales are
made. Each such offer or sale shall only be made to persons whom the offeror or seller
reasonably believes to be Qualified Institutional Buyers or non-U.S. persons outside the
United States to whom the offeror or seller reasonably believes offers and sales of the
Securities may be made in reliance upon Regulation S upon the terms and conditions set forth
in Annex I hereto, which Annex I is hereby expressly made a part hereof.

     (b) The Securities will be offered by approaching prospective Subsequent Purchasers on
an individual basis. No general solicitation or general advertising (within the meaning of
Rule 502 under the Securities Act) will be used in the United States in connection with the
offering of the Securities.

     (c) Upon original issuance by the Company, and until such time as the same is no longer
required under the applicable requirements of the Securities Act, the Notes (and all
securities issued in exchange therefor or in substitution thereof, other than the Exchange
Notes) shall bear the following legend:

“THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN
A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT

 

 

THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE
SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a)
INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A
UNDER THE SECURITIES ACT, (b) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (c) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
APPLICABLE) OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION
OF COUNSEL ACCEPTABLE TO THE COMPANY IF THE COMPANY SO REQUESTS), (2) TO THE
COMPANY OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH
CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL,
AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE
SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A)
ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE
EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED HEREBY.”

     Following the sale of the Securities by the Initial Purchasers to Subsequent Purchasers
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 Securities Act, arising from or relating to any resale or
transfer of any Security.

     SECTION 8. Indemnification.

     (a) Indemnification of the Initial Purchasers. Each of the Company and the Guarantors,
jointly and severally, agrees to indemnify and hold harmless each Initial Purchaser, its
affiliates, directors, officers and employees, and each person, if any, who controls any Initial
Purchaser within the meaning of the Securities Act and the Exchange Act against any loss, claim,
damage, liability or expense, as incurred, to which such Initial Purchaser, affiliate, director,

 

 

officer, employee or controlling person may become subject, under the Securities Act, the Exchange
Act or other federal or state statutory law or regulation, or at common law or otherwise (including
in settlement of any litigation, if such settlement is effected with the written consent of the
Company), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof
as contemplated below) arises out of or is based upon any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Offering Memorandum, the Pricing
Supplement, any Company Additional Written Communication or the Final Offering Memorandum (or any
amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading; and to reimburse each Initial Purchaser and each such affiliate,
director, officer, employee or controlling person for any and all reasonable and documented
expenses (including the fees and disbursements of one counsel chosen by Merrill Lynch in addition
to any local counsel) as such expenses are reasonably incurred by such Initial Purchaser or such
affiliate, director, officer, employee or controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage, liability, expense or
action; provided, however, that the foregoing indemnity agreement shall not apply, with respect to
an Initial Purchaser, to any loss, claim, damage, liability or expense to the extent, but only to
the extent, arising out of or based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in reliance upon and in conformity with written information
furnished to the Company by such Initial Purchaser through the Representative expressly for use in
the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written
Communication or the Final Offering Memorandum (or any amendment or supplement thereto). The
indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the
Company may otherwise have.

     (b) Indemnification of the Company and the Guarantors. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Company, each Guarantor, each of
their respective directors and each person, if any, who controls the Company or any Guarantor
within the meaning of the Securities Act or the Exchange Act, against any loss, claim, damage,
liability or expense, as incurred, to which the Company, any Guarantor or any such director or
controlling person may become subject, under the Securities Act, the Exchange Act, or other federal
or state statutory law or regulation, or at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of such Initial Purchaser),
insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as
contemplated below) arises out of or is based upon any untrue statement or alleged untrue statement
of a material fact contained in the Preliminary Offering Memorandum, the Pricing Supplement, any
Company Additional Written Communication or the Final Offering Memorandum (or any amendment or
supplement thereto), or the omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, in each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the Preliminary Offering
Memorandum, the Pricing Supplement, any Company Additional Written Communication or the Final
Offering Memorandum (or any amendment or supplement thereto), in reliance upon and in conformity
with written information furnished to the Company by such Initial Purchaser through the
Representative expressly for use therein; and to reimburse the Company, any Guarantor and each such
director or controlling person for any and all reasonable and documented expenses (including the
fees and disbursements of counsel) as

 

 

such expenses are reasonably incurred by the Company, any Guarantor or such director or
controlling person in connection with investigating, defending, settling, compromising or paying
any such loss, claim, damage, liability, expense or action. Each of the Company and the Guarantors
hereby acknowledges that the only information that the Initial Purchasers through the
Representative have furnished to the Company expressly for use in the Preliminary Offering
Memorandum, the Pricing Supplement, any Company Additional Written Communication or the Final
Offering Memorandum (or any amendment or supplement thereto) are the statements set forth in the
fifth, seventh (third sentence) and ninth paragraphs under the caption “Plan of Distribution” in
the Preliminary Offering Memorandum. The indemnity agreement set forth in this Section 8(b) shall
be in addition to any liabilities that each Initial Purchaser may otherwise have.

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 8, notify the indemnifying party in writing of the commencement thereof;
provided that the failure to so notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party under this Section 8 except to the extent that
it has been materially prejudiced by such failure (through the forfeiture of substantive rights and
defenses) and shall not relieve the indemnifying party from any liability that the indemnifying
party may have to an indemnified party other than under this Section 8. In case any such action is
brought against any indemnified party and such indemnified party seeks or intends to seek indemnity
from an indemnifying party, the indemnifying party will be entitled to participate in and, to the
extent that it shall elect, jointly with all other indemnifying parties similarly notified, by
written notice delivered to the indemnified party promptly after receiving the aforesaid notice
from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to
such indemnified party; provided, however, if the defendants in any such action include both the
indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded, with the advice of counsel, that a conflict may arise between the positions of the
indemnifying party and the indemnified party in conducting the defense of any such action or that
there may be legal defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party, the indemnified party or parties
shall have the right to select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or parties. Upon
receipt of notice from the indemnifying party to such indemnified party of such indemnifying
party’s election so to assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party under this Section 8
for any legal or other expenses subsequently incurred by such indemnified party in connection with
the defense thereof unless (i) the indemnified party shall have employed separate counsel in
accordance with the proviso to the immediately preceding sentence (it being understood, however,
that the indemnifying party shall not be liable for the expenses of more than one separate counsel
(together with local counsel (in each jurisdiction)), which shall be selected by Merrill Lynch (in
the case of counsel representing the Initial Purchasers or their related persons), representing the
indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have
employed counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party.

 

 

     (d) Settlements. The indemnifying party under this Section 8 shall not be liable for any
settlement of any proceeding effected without its written consent, which will not be unreasonably
withheld, but if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement, compromise or consent to
the entry of judgment in any pending or threatened action, suit or proceeding in respect of which
any indemnified party is or could have been a party and indemnity was or could have been sought
hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an
unconditional release of such indemnified party from all liability on claims that are the subject
matter of such action, suit or proceeding and (ii) does not include any statements as to or any
findings of fault, culpability or failure to act by or on behalf of any indemnified party.

     SECTION 9. Contribution. If the indemnification provided for in Section 8 hereof is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in
respect of any losses, claims, damages, liabilities or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Guarantors, 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) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other hand,
in connection with the statements or omissions or inaccuracies in the representations and
warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well
as any other relevant equitable considerations. The relative benefits received by the Company and
the Guarantors, 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 discount received
by the Initial Purchasers bear to the aggregate initial offering price of the Securities. The
relative fault of the Company and the Guarantors, 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 and the Guarantors, on the one hand, or the
Initial Purchasers, on the other hand, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission or inaccuracy.

     The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 8 hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim. The provisions set forth in
Section 8 hereof with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 9; provided, however, that no additional notice shall
be

 

 

required with respect to any action for which notice has been given under Section 8 hereof for
purposes of indemnification.

     The Company, the Guarantors and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 9 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 in this Section
9.

     Notwithstanding the provisions of this Section 9, no Initial Purchaser shall be required to
contribute any amount in excess of the discount received by such Initial Purchaser in connection
with the Securities distributed by it. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11 of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to
contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective
commitments as set forth opposite their names in Schedule A. For purposes of this Section 9, each
director, officer and employee of an Initial Purchaser and each person, if any, who controls an
Initial Purchaser within the meaning of the Securities Act and the Exchange Act shall have the same
rights to contribution as such Initial Purchaser, and each director of the Company or any
Guarantor, and each person, if any, who controls the Company or any Guarantor with the meaning of
the Securities Act and the Exchange Act shall have the same rights to contribution as the Company
and the Guarantors.

     SECTION 10. Termination of this Agreement. Prior to the Closing Date, this Agreement may be
terminated by the Representative by notice given to the Company if at any time: (i) trading or
quotation in any of the Company’s securities shall have been suspended or limited by the Commission
or by the NYSE, or trading in securities generally on either the Nasdaq Stock Market or the NYSE
shall have been suspended or limited, or minimum or maximum prices shall have been generally
established on any of such quotation system or stock exchange by the Commission or FINRA; (ii) a
general banking moratorium shall have been declared by any of federal or New York authorities;
(iii) there shall have occurred any outbreak or escalation of national or international hostilities
or any crisis or calamity, or any change in the United States or international financial markets,
or any substantial change or development involving a prospective substantial change in United
States’ or international political, financial or economic conditions, as in the judgment of the
Representative is material and adverse and makes it impracticable or inadvisable to proceed with
the offering, sale or delivery of the Securities in the manner and on the terms described in the
Pricing Disclosure Package or to enforce contracts for the sale of securities; (iv) in the judgment
of the Representative there shall have occurred or shall exist an event or condition of a type
described in Section 1(n) hereof, which event or condition is not disclosed in the Pricing
Disclosure Package (excluding any amendment or supplement thereto) and the Final Offering
Memorandum (excluding any amendment or supplement thereto) and the effect of which in the judgment
of the Representative makes it impracticable or inadvisable to proceed with the offering, sale or
delivery of the Securities on the Closing Date, on the terms and in the manner contemplated by this
Agreement, the Pricing Disclosure Package and the Final Offering Memorandum; or (v) the Company
shall have sustained a loss by strike, fire, flood, earthquake, accident or other calamity of such
character as in the judgment of the Representative may interfere materially with the conduct of the
business and operations of the Company regardless of

 

 

whether or not such loss shall have been insured. Any termination pursuant to this Section 10
shall be without liability on the part of (i) the Company or any Guarantor to any Initial
Purchaser, except that the Company and the Guarantors shall be obligated to reimburse the expenses
of the Initial Purchasers pursuant to Sections 4 and 6 hereof, (ii) any Initial Purchaser to the
Company, or (iii) any party hereto to any other party except that the provisions of Sections 8 and
9 hereof shall at all times be effective and shall survive such termination.

     SECTION 11. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of the Company, the Guarantors, their
respective officers and the several Initial Purchasers set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation made by or on
behalf of any Initial Purchaser, the Company, any Guarantor or any of their partners, officers or
directors or any controlling person, as the case may be, and will survive delivery of and payment
for the Securities sold hereunder and any termination of this Agreement.

     SECTION 12. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered, couriered or facsimiled and confirmed to the parties hereto as follows:

     If to the Initial Purchasers:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park

New York, New York 10036

Facsimile: (212) 901-7897

Attention: Legal Department

     with a copy to:

Cahill Gordon & Reindel llp

80 Pine Street

New York, New York 10005

Facsimile: (212) 701-3849

Attention: James J. Clark and Corey Wright

     If to the Company or the Guarantors:

Liz Claiborne, Inc.

1441 Broadway

New York, New York 10018

Facsimile: (201) 295-6118

Attention: Nicholas Rubino

 

 

     with a copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019-6064

Facsimile: (212) 373-7550

Attention: Lawrence G. Wee

     Any party hereto may change the address or facsimile number for receipt of communications by
giving written notice to the others.

     SECTION 13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto, and to the benefit of the indemnified parties referred to in Sections 8 and 9
hereof, and in each case their respective successors, and no other person will have any right or
obligation hereunder. The term “successors” shall not include any Subsequent Purchaser or other
purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such
purchase.

     SECTION 14. Authority of the Representative. Any action by the Initial Purchasers hereunder
may be taken by Merrill Lynch on behalf of the Initial Purchasers, and any such action taken by
Merrill Lynch shall be binding upon the Initial Purchasers.

     SECTION 15. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other section, paragraph or provision hereof. If any section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.

     SECTION 16. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF.

     (a) Consent to Jurisdiction. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) may be
instituted in the federal courts of the United States of America located in the City and County of
New York or the courts of the State of New York in each case located in the City and County of New
York (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive
jurisdiction (except for suits, actions, or proceedings instituted in regard to the enforcement of
a judgment of any Specified Court in a Related Proceeding, as to which such jurisdiction is
non-exclusive) of the Specified Courts in any Related Proceeding. Service of any process, summons,
notice or document by mail to such party’s address set forth above shall be effective service of
process for any Related Proceeding brought in any Specified Court. The parties irrevocably and
unconditionally waive any objection to the laying of venue of any Specified Proceeding in the
Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any
Specified Court that any Related Proceeding brought in any Specified Court has been brought in an
inconvenient forum.

 

 

     (b) Waiver of Immunity. With respect to any Related Proceeding, each party irrevocably
waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of
sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after
judgment) and execution to which it might otherwise be entitled in the Specified Courts, and with
respect to any Related Judgment, each party waives any such immunity in the Specified Courts or any
other court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such
immunity at or in respect of any such Related Proceeding or Related Judgment, including, without
limitation, any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as
amended.

     (c) Judgment Currency. If for the purposes of obtaining judgment in any court it is necessary
to convert a sum due hereunder into any currency other than U.S. dollars, the parties hereto agree,
to the fullest extent that they may effectively do so, that the rate of exchange used shall be the
rate at which in accordance with normal banking procedures the Initial Purchasers could purchase
U.S. dollars with such other currency in The City of New York on the business day preceding that on
which final judgment is given.

     SECTION 17. Default of One or More of the Several Initial Purchasers. If any one or more of
the several Initial Purchasers shall fail or refuse to purchase Securities that it or they have
agreed to purchase hereunder on the Closing Date, and the aggregate number of Securities which such
defaulting Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does
not exceed 10% of the aggregate number of the Securities to be purchased on such date, the other
Initial Purchasers shall be obligated, severally, in the proportions that the number of Securities
set forth opposite their respective names on Schedule A bears to the aggregate number of Securities
set forth opposite the names of all such non-defaulting Initial Purchasers, or in such other
proportions as may be specified by the Initial Purchasers with the consent of the non-defaulting
Initial Purchasers, to purchase the Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on the Closing Date. If any one or more of the
Initial Purchasers shall fail or refuse to purchase Securities and the aggregate number of
Securities with respect to which such default occurs exceeds 10% of the aggregate number of
Securities to be purchased on the Closing Date, and arrangements satisfactory to the Initial
Purchasers and the Company for the purchase of such Securities are not made within 48 hours after
such default, this Agreement shall terminate without liability of any party to any other party
except that the provisions of Sections 4, 6, 8 and 9 hereof shall at all times be effective and
shall survive such termination. In any such case either the Initial Purchasers or the Company
shall have the right to postpone the Closing Date, as the case may be, but in no event for longer
than seven days in order that the required changes, if any, to the Final Offering Memorandum or any
other documents or arrangements may be effected.

     As used in this Agreement, the term “Initial Purchaser” shall be deemed to include any person
substituted for a defaulting Initial Purchaser under this Section 17. Any action taken under this
Section 17 shall not relieve any defaulting Initial Purchaser from liability in respect of any
default of such Initial Purchaser under this Agreement.

     SECTION 18. No Advisory or Fiduciary Responsibility. Each of the Company and the Guarantors
acknowledges and agrees that: (i) 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
and the Guarantors, on the one hand, and the several Initial Purchasers, on the other hand, and the
Company and the Guarantors are capable of evaluating and understanding and understand and accept
the terms, risks and conditions of the transactions contemplated by this Agreement; (ii) in
connection with each transaction 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, and the Guarantors or their respective Affiliates, stockholders,
creditors or employees or any other party; (iii) no Initial Purchaser has assumed or will assume an
advisory or fiduciary responsibility in favor of the Company and the Guarantors with respect to
any of the transactions contemplated hereby or the process leading thereto (irrespective of whether
such Initial Purchaser has advised or is currently advising the Company and the Guarantors on
other matters) or any other obligation to the Company and the Guarantors except the obligations
expressly set forth in this Agreement; (iv) the several Initial Purchasers and their respective
Affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Company and the Guarantors, and the several Initial Purchasers have no obligation to
disclose any of such interests by virtue of any fiduciary or advisory relationship; and (v) the
Initial Purchasers have not provided any legal, accounting, regulatory or tax advice with respect
to the offering contemplated hereby, and the Company and the Guarantors have consulted their own
legal, accounting, regulatory and tax advisors to the extent they deemed appropriate.

     This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Company, the Guarantors and the several Initial Purchasers, or any of them, with
respect to the subject matter hereof. The Company and the Guarantors hereby waive and release, to
the fullest extent permitted by law, any claims that the Company and the Guarantors may have
against the several Initial Purchasers with respect to any breach or alleged breach of fiduciary
duty. For the avoidance of doubt, this Agreement does not amend or supersede the Original Purchase
Agreement.

     SECTION 19. General Provisions. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. This
Agreement may be executed in two or more counterparts, each one of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of
an executed counterpart of a signature page to this Agreement by telecopier, facsimile or other
electronic transmission (i.e., a “pdf” or “tif”) shall be effective as delivery of a manually
executed counterpart thereof. This Agreement may not be amended or modified unless in writing by
all of the parties hereto, and no condition herein (express or implied) may be waived unless waived
in writing by each party whom the condition is meant to benefit. The section headings herein are
for the convenience of the parties only and shall not affect the construction or interpretation of
this Agreement.

     If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.

 

 

Very truly yours,

	 	 	 	 	 
	 	LIZ CLAIBORNE, INC.

 	 
	 	By:  	/s/ Nicholas Rubino 	 
	 	 	Name:  	Nicholas Rubino	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel

and Corporate Secretary	 
	 

 

 

BOODLE, INC. (F/K/A LCI LAUNDRY)

DB NEWCO CORP.

HAVANA, LLC

JERG, INC. (F/K/A C&C California, Inc.)

JUICY COUTURE, INC.

KATE SPADE LLC

L.C. AUGUSTA, INC.

L.C. CARIBBEAN HOLDINGS, INC.

L.C. LIBRA, LLC

L.C. LICENSING, INC.

L.C. SERVICE COMPANY, INC.

L.C. SPECIAL MARKETS, INC.

LCI ACQUISITION U.S., INC.

LCI HOLDINGS, INC.

LCI INVESTMENTS, INC.

LIZ CLAIBORNE ACCESSORIES, INC.

LIZ CLAIBORNE ACCESSORIES-SALES, INC.

LIZ CLAIBORNE COSMETICS, INC.

LIZ CLAIBORNE EXPORT, INC.

LIZ CLAIBORNE FOREIGN HOLDINGS, INC.

LIZ CLAIBORNE JAPAN, INC.

LIZ CLAIBORNE PUERTO RICO, INC.

LIZ CLAIBORNE SALES, INC.

LIZ CLAIBORNE SHOES, INC.

LUCKY BRAND DUNGAREES, INC.

LUCKY BRAND DUNGAREES STORES, INC.

MONET INTERNATIONAL, INC.

MONET PUERTO RICO, INC.

NONEE I, LLC (F/K/A ENYCE LLC)

NONEE I HOLDING, LLC (F/K/A ENYCE HOLDING, LLC)

SEGRETS, INC.

SKYLARK SPORT MARKETING CORPORATION

WESTCOAST CONTEMPO PROMENADE, INC.

WESTCOAST CONTEMPO RETAIL, INC.

WESTCOAST CONTEMPO USA, INC.

	 	 	 	 	 
	 	 	 
	 	By:  	 /s/ Nicholas Rubino
 	 
	 	 	Name:  	Nicholas Rubino	 
	 	 	Title:  	SVP, Chief Legal Officer, General Counsel 

and
Corporate Secretary	 
	 

 

 

     The foregoing Purchase Agreement is hereby confirmed and accepted by the Initial Purchasers as
of the date first above written.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

   Acting on behalf of itself

   and as the Representative of

   the several Initial Purchasers

	 	 	 	 	 

	By:

	 	Merrill Lynch, Pierce, Fenner & Smith Incorporated	 	 
	 
	 	 	 	 
	By:
	 	/s/ Lisa G Clyde 	 	 
	 

	 	 

Managing Director
	 	 

 

 

SCHEDULE A

	 	 	 	 	 
	 	 	Aggregate Principal Amount
	Initial Purchasers	 	of Securities to be Purchased
	Merrill Lynch, Pierce, Fenner & Smith Incorporated
	 	$	6,000,000	 
	J.P. Morgan Securities LLC
	 	 	4,500,000	 
	SunTrust Robinson Humphrey, Inc.
	 	 	2,250,000	 
	Wells Fargo Securities, LLC
	 	 	2,250,000	 
	 
	 	 	 	 
	Total
	 	$	15,000,000	 

 

 

SCHEDULE B

SUPPLEMENT

 

 

SCHEDULE C

LIST OF JURISDICTIONS IN WHICH THE COMPANY

IS REQUIRED TO BE QUALIFIED TO DO BUSINESS

Alabama

New Jersey

New York

Ohio

Pennsylvania

Rhode Island

 

 

SCHEDULE D

LIST OF SUBSIDIARIES OF LIZ CLAIBORNE, INC.

	 	 	 

	Boodle, Inc. (f/k/a LCI Laundry)

	 	Delaware
	Claiborne Limited

	 	Hong Kong
	DB Newco Corp.

	 	Delaware
	Handycell Ltd.

	 	United Kingdom
	Havana, LLC

	 	Delaware
	High Mallow Company N.V.

	 	Netherlands
	Jerg, Inc.

	 	California
	Juicy Couture Canada, Inc.

	 	Canada
	Juicy Couture Europe Limited

	 	United Kingdom
	Juicy Couture, Inc.

	 	California
	Kate Spade LLC

	 	Delaware
	Kate Spade U.K. Limited

	 	United Kingdom
	L.C. Augusta, Inc.

	 	Delaware
	L.C. Caribbean Holdings, Inc.

	 	Delaware
	L.C. Libra, LLC

	 	Delaware
	L.C. Licensing, Inc.

	 	Delaware
	L.C. Service Company, Inc.

	 	Delaware
	L.C. Special Markets, Inc.

	 	Delaware
	LCI Acquisition U.S., Inc.

	 	Delaware
	LCI Holdings, Inc.

	 	Delaware
	LCI Investments, Inc.

	 	Delaware
	Liz Claiborne 2 B.V.

	 	Netherlands
	Liz Claiborne 3 B.V.

	 	Netherlands
	Liz Claiborne Accessories, Inc.

	 	Delaware
	Liz Claiborne Accessories-Sales, Inc.

	 	Delaware
	Liz Claiborne Canada Inc.

	 	Canada
	Liz Claiborne Colombia, Ltda.

	 	Colombia
	Liz Claiborne Cosmetics, Inc.

	 	Delaware
	Liz Claiborne De El Salvador, S.A., de C.V.

	 	El Salvador
	Liz Claiborne de Mexico, S.A. de C.V.

	 	Mexico
	Liz Claiborne do Brasil Industria E Comercio Ltda.

	 	Brazil
	Liz Claiborne Europe

	 	United Kingdom
	Liz Claiborne Export, Inc.

	 	Delaware
	Liz Claiborne Foreign Holdings, Inc.

	 	Delaware
	Liz Claiborne International Limited

	 	Hong Kong
	Liz Claiborne (Israel) Ltd.

	 	Israel
	Liz Claiborne Japan, Inc.

	 	Delaware
	Liz Claiborne (Malaysia) SDN.BHD

	 	Malaysia
	Liz Claiborne Operations (Israel) 1993 Limited

	 	Israel
	Liz Claiborne Puerto Rico, Inc.

	 	Delaware
	Liz Claiborne Sales, Inc.

	 	Delaware
	Liz Claiborne, S.A.

	 	Costa Rica
	Liz Claiborne Servicios de Mexico, S.A. de C.V.

	 	Mexico

 

 

	 	 	 

	Liz Claiborne Shoes, Inc.

	 	Delaware
	Lucky Brand Dungarees, Inc.

	 	Delaware
	Lucky Brand Dungarees Stores, Inc.

	 	Delaware
	Mexx Asia Pacific Limited

	 	Hong Kong
	Mexx Austria GmbH

	 	Austria
	Mexx Belgium N.V.

	 	Belgium
	Mexx Boutique SARL

	 	France
	Mexx Czech Repubic s.r.o.

	 	Czech Republic
	Mexx Deutschland GmbH

	 	Germany
	Mexx Direct GmbH & Co KG

	 	Germany
	Mexx Direct Holding B.V.

	 	Netherlands
	Mexx Europe B.V.

	 	Netherlands
	Mexx Europe Holding B.V.

	 	Netherlands
	Mexx Europe International B.V.

	 	Netherlands
	Mexx Europroduction B.V.

	 	Netherlands
	Mexx Far East Limited

	 	Hong Kong
	Mexx France

	 	France
	Mexx France International SAS

	 	France
	Mexx Group B.V.

	 	Netherlands
	Mexx Hellas EPE

	 	Greece
	Mexx Holding GmbH

	 	Germany
	Mexx Holding International B.V.

	 	Netherlands
	Mexx Holding Netherlands B.V.

	 	Netherlands
	Mexx Hungary Ltd.

	 	Hungary
	Mexx Ireland Ltd.

	 	Ireland
	Mexx Italy S.r.l.

	 	Italy
	Mexx Ltd.

	 	United Kingdom
	Mexx Luxembourg S.a.r.l.

	 	Luxembourg
	Mexx Middle East Center FZE

	 	Dubai, UAE
	Mexx Modehandels AG

	 	Switzerland
	Mexx Modehandels GmbH

	 	Germany
	Mexx Nederland B.V.

	 	Netherlands
	Mexx Nederland Retail B.V.

	 	Netherlands
	Mexx Poland Sp. z.o.o.

	 	Poland
	Mexx Portugal, Unnipessoal, LDA

	 	Portugal
	Mexx Scandinavia AB

	 	Sweden
	Mexx Scandinavia AS

	 	Norway
	Mexx Scandinavia Finland Oy

	 	Finland
	Mexx Southern Europe S.R.L.

	 	Spain
	Mexx Sport Benelux B.V.

	 	Netherlands
	Mexx Switzerland GmbH

	 	Switzerland
	Monet International, Inc.

	 	Delaware
	Monet Puerto Rico, Inc.

	 	Delaware
	Nonee I, LLC (f/k/a Enyce LLC)

	 	Delaware
	Nonee I Holding, LLC (f/k/a Enyce Holding, LLC)

	 	Delaware
	Retrain N.V.

	 	Belgium

 

 

	 	 	 

	Segrets, Inc.

	 	Delaware
	Shenghui Fashion (Shenzhen) Company Limited

	 	China
	Skylark Sport Marketing Corporation

	 	California
	Verwaltungsgesellschaft Mexx Direct mbh

	 	Germany
	Westcoast Contempo Fashions Limited

	 	Canada
	Westcoast Contempo Promenade, Inc.

	 	Washington
	Westcoast Contempo Retail, Inc.

	 	Washington
	Westcoast Contempo USA, Inc.

	 	Washington

 

 

SCHEDULE E

Post-Closing Requirements Relating to Collateral

     (a) Real Property Collateral Documents. Within 30 days after the Closing Date, the Initial
Purchasers shall have received a mortgage, deed of trust, assignment of leases and rents, security
agreement, fixture filing and financing statement from the owner or holder of each interest in real
property that is part of the Collateral, in form and substance reasonably acceptable to the Initial
Purchasers (each a “Mortgage”) encumbering each real property that is part of the Collateral (each
a “Mortgaged Property”) in favor of the Collateral Agent for its benefit and for the the benefit of
the other Secured Parties (as defined in the Security Agreement) executed by the Company and the
appropriate Guarantors.

     (b) Mortgages. Within 30 days after the Closing Date, the Initial Purchasers shall have
received fully executed counterparts of the Mortgages, which Mortgages shall cover the Mortgaged
Property, together with evidence that counterparts of the Mortgages have been delivered to the
title insurance company insuring the lien of such Mortgages for recording in all places to the
extent necessary or, in the reasonable opinion of the Initial Purchasers, desirable to effectively
create a valid and enforceable mortgage lien on each Mortgaged Property in favor of the Collateral
Agent for its benefit and for the benefit of the other Secured Parties (as defined in the Security
Agreement), securing the Obligations (as defined in the Preliminary Offering Memorandum) under the
Indenture and the other Security Documents (provided that in jurisdictions that impose
mortgage recording taxes, such Mortgages shall not secure indebtedness in an amount exceeding 115%
of the fair market value of such Mortgaged Property, as reasonably determined, in good faith, by
the Company and reasonably acceptable to the Initial Purchasers), subject to (i) those liens,
encumbrances, hypothecations and other matters affecting title to such Mortgaged Property and found
reasonably acceptable by the Initial Purchasers, (ii) Permitted Liens (as defined in the Indenture)
and (iii) such other similar items as the Initial Purchasers may consent to (such consent not to be
unreasonably withheld) (the liens described in clauses (i) through (iii) of this sentence,
collectively, the “Permitted Encumbrances”).

     (c) Title Insurance. Within 30 days after the Closing Date, the Initial Purchasers shall have
received, with respect to each Mortgage intended to encumber a Mortgaged Property, a policy of
title insurance (or commitment to issue such a policy) having the effect of a policy of title
insurance insuring (or committing to insure) the lien of such Mortgage as a valid and enforceable
mortgage lien on the Mortgaged Properties described therein, in an amount not less than 115% of the
fair market value of such Mortgaged Property as reasonably determined, in good faith, by the
Company and reasonably acceptable to the Initial Purchasers, (such policies collectively, the
“Mortgage Policies”) issued by such title insurer as shall be reasonably acceptable to Initial
Purchasers (the “Title Company”), which reasonably assures the Collateral Agent that the Mortgages
on such Mortgaged Properties are valid and enforceable mortgage liens on the respective Mortgaged
Properties, free and clear of all defects and encumbrances except Permitted Encumbrances and such
Mortgage Policies shall otherwise be in form and substance reasonably satisfactory to the Initial
Purchasers and shall have been supplemented by such endorsements as shall be reasonably requested
by the Collateral Agent, including, to the extent included in the

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title insurance policy issued to the ABL Collateral Agent with respect to the
applicable Mortgaged Property, to the extent currently available and, if only one Mortgage is
granted on a single Mortgaged Property, to the extent appropriate where only one Mortgage is
granted on a single Mortgaged Property, endorsements on matters relating to usury, first loss, last
dollar, zoning, contiguity, revolving credit, doing business, non-imputation, public road access,
survey, variable rate, environmental lien, subdivision, separate tax lot, revolving credit,
so-called comprehensive coverage over covenants and restrictions and, to the extent included in the
title insurance policy issued to the ABL Collateral Agent with respect to the applicable Mortgaged
Property, to the extent currently available and, if only one Mortgage is granted on a single
Mortgaged Property, to the extent appropriate where only one Mortgage is granted on a single
Mortgaged Property, for any and all other matters that the Collateral Agent may request, shall not
include an exception for mechanics’ liens to the extent one was not included in the title insurance
policy issued to the ABL Collateral Agent with respect to the applicable Mortgaged Property, and
shall provide for affirmative insurance and such reinsurance (including direct access agreements)
as the Initial Purchasers may reasonably request, to the extent such affirmative insurance and/or
reinsurance was included in the title insurance policy issued to the ABL Collateral Agent with
respect to the applicable Mortgaged Property.

     (d) Survey. Within 30 days after the Closing Date, with respect to any Mortgaged Property for
which a survey was delivered to the ABL Collateral Agent and the ABL Collateral Agent received a
“comprehensive” endorsement or other survey-related endorsement, the Initial Purchasers shall have
received either (i) a survey update or (ii) an existing survey and affidavit of no change addressed
to the Title Company, the Trustee and the Collateral Agent in such form and substance as shall be
sufficient to enable the Title Company to issue a “comprehensive” endorsement and other
survey-related endorsements reasonably requested by the Collateral Agent and to remove the standard
survey exception from the Mortgage Policy with respect to such Mortgaged Property (provided that
Collateral Agent shall not have the option to require such endorsements or standard survey
exception removal unless such endorsements were issued or such standard survey exception was
removed in connection with the title insurance policy issued in favor of the ABL Collateral Agent
with respect to such Mortgaged Property).

     (e) Fixture filings. Within 30 days after the Closing Date, the Initial Purchasers shall have
received proper fixture filings and as-extracted collateral under the UCC on Form UCC-1 fully
executed for filing under the UCC in the appropriate jurisdiction in which the Mortgaged Properties
are located, desirable to perfect the security interests purported to be created by the Mortgages
in favor of the Collateral Agent for its benefit and for the the benefit of the other Secured
Parties (as defined in the Security Agreement).

     (f) Mortgage Opinions. Within 30 days after the Closing Date, the Initial Purchasers shall
have received the opinions, addressed to the Initial Purchasers, the Collateral Agent, the Trustee
and the other Secured Parties (as defined in the Security Agreement), of local counsel in each
jurisdiction where Mortgage Property is located, each in form and substance reasonably satisfactory
to the Initial Purchasers.

     (g) Insurance. Within 30 days after the Closing Date, the Initial Purchasers shall have
received policies or certificates of insurance covering the property and assets of the Company and
the Guarantors, which policies or certificates shall be in form and substance reasonably

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acceptable to the Initial Purchasers and reflect the Collateral Agent, for its benefit and the
benefit of the other Secured Parties (as defined in the Security Agreement), as additional insured
and loss payee and mortgagee and shall otherwise bear endorsements of the character reasonably
acceptable to the Initial Purchasers.

     (h) Mortgaged Property Indemnification. Within 30 days after the Closing Date, the Initial
Purchasers shall have received, with respect to each Mortgaged Property, such affidavits,
certificates, information (including financial data) and instruments of indemnification (including
a so-called “gap” indemnification) as shall be required to induce the Title Company to issue the
Mortgage Policies and endorsements contemplated above.

     (i) Collateral Fees and Expenses. Within 30 days after the Closing Date, the Initial
Purchasers shall have received evidence reasonably acceptable to the Initial Purchasers of payment
by the Company of all Mortgage Policy premiums, search and examination charges, escrow charges and
related charges, mortgage recording taxes, fees, charges, costs and expenses required for the
recording of the Mortgages and issuance of the Mortgage Policies referred to above.

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ANNEX I

     Resale Pursuant to Regulation S or Rule 144A. Each Initial Purchaser understands that:

     Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the
Securities in the United States or to, or for the benefit or account of, a U.S. Person (other than
a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its
distribution at any time and (ii) otherwise until 40 days after the later of the commencement of
the offering of the Securities pursuant hereto and the Closing Date, other than in accordance with
Regulation S or another exemption from the registration requirements of the Securities Act. Such
Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any
advertisement with respect to the Securities (including any “tombstone” advertisement) to be
published in any newspaper or periodical or posted in any public place and will not issue any
circular relating to the Securities, except such advertisements as are permitted by and include the
statements required by Regulation S.

     Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Securities by it
to any distributor, dealer or person receiving a selling concession, fee or other remuneration
during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such
distributor, dealer or person receiving a selling concession, fee or other remuneration a
confirmation or notice to substantially the following effect:

“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and may not be
offered and sold within the United States or to, or for the account or
benefit of, U.S. persons (i) as part of your distribution at any time or
(ii) otherwise until 40 days after the later of the date the Securities were
first offered to persons other than distributors in reliance upon Regulation
S and the Closing Date, except in either case in accordance with Regulation
S under the Securities Act (or in accordance with Rule 144A under the
Securities Act or to accredited investors in transactions that are exempt
from the registration requirements of the Securities Act), and in connection
with any subsequent sale by you of the Securities covered hereby in reliance
on Regulation S under the Securities Act during the period referred to above
to any distributor, dealer or person receiving a selling concession, fee or
other remuneration, you must deliver a notice to substantially the foregoing
effect. Terms used above have the meanings assigned to them in Regulation S
under the Securities Act.”

 Annex I-1

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