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Exhibit 1.1
ORIENT-EXPRESS HOTELS LTD.,
(a Bermuda company)
8,000,000 Class A Common Shares
U.S. PURCHASE AGREEMENT
Dated: August o, 2000
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Orient-Express Hotels Ltd.
a Bermuda company
8,000,000 Class A Common Shares
(Par value $ 0.01 each)
U.S. PURCHASE AGREEMENT
August __, 2000
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
LAZARD FRERES & CO. LLC
SALOMON SMITH BARNEY
Banc of America Securities LLC
as U.S. Representatives of the several U.S. Underwriters
C/O MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
North Tower
World Financial Center
New York, New York 10281
Ladies and Gentlemen:
Orient-Express Hotels Ltd., a Bermuda company (the "Company"),
and Sea Containers Ltd., a Bermuda company (the "Selling Shareholder"), confirm
their agreement with Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("Merrill Lynch") and each of the other U.S. Underwriters named in
Schedule A hereto (collectively, the "U.S. Underwriters", which term shall also
include any underwriter substituted as hereinafter provided in Section 10
hereof) for whom Merrill Lynch, Lazard Freres & Co. LLC , Salomon Smith Barney
and Banc of America Securities LLC are acting as representatives (in such
capacity, the "U.S. Representatives"), with respect to (A) the issue and sale by
the Company and the Selling Shareholder and the purchase by the U.S.
Underwriters, acting severally and not jointly, of an aggregate of 8,000,000
class A common shares, par value $.01 each, of the Company ("Common Shares") in
the respective amounts set forth in Schedule A, and (B) the grant by the Selling
Shareholder to the U.S. Underwriters, acting severally and not jointly, of the
option described in Section 2(b) hereof to purchase all or any part of an
aggregate of 1,200,000 additional Common Shares to cover over-allotments, if
any. The aforesaid 8,000,000 Common Shares (the "Initial U.S. Securities") to be
purchased by the U.S. Underwriters and all or any part of the 1,200,000 Common
Shares subject to the option described in Section 2(b) hereof (the "U.S. Option
Securities") are hereinafter called, collectively, the "U.S. Securities".
It is understood that the Company and the Selling Shareholder
are concurrently entering into an agreement dated the date hereof (the
"International Purchase Agreement") providing for the offering by the Company
and the Selling Shareholder of an aggregate of
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2,000,000 Common Shares (the "Initial International Securities") through
arrangements with certain underwriters outside the United States and Canada (the
"International Managers") for which Merrill Lynch, International, Lazard Freres
& Co. LLC and Salomon Smith Barney are acting as lead managers (the "Lead
Managers") and the grant by the Selling Shareholder to the International
Managers, acting severally and not jointly, of an option to purchase all or any
part of the International Managers' pro rata portion of up to 300,000 additional
Common Shares solely to cover over-allotments, if any (the "International Option
Securities" and, together with the U.S. Option Securities, the "Option
Securities"). The Initial International Securities and the International Option
Securities are hereinafter called the "International Securities". It is
understood that the Company and the Selling Shareholder are not obligated to
sell and the U.S. Underwriters are not obligated to purchase, any Initial U.S.
Securities unless all of the Initial International Securities are
contemporaneously purchased by the International Managers.
The U.S. Underwriters and the International Managers are
hereinafter collectively called the "Underwriters", the Initial U.S. Securities
and the Initial International Securities are hereinafter collectively called the
"Initial Securities", and the U.S. Securities and the International Securities
are hereinafter collectively called the "Securities".
The Underwriters will concurrently enter into an
Intersyndicate Agreement of even date herewith (the "Intersyndicate Agreement")
providing for the coordination of certain transactions among the Underwriters
under the direction of Merrill Lynch & Co. and Merrill Lynch, Pierce, Fenner &
Smith Incorporated (in such capacity, collectively, the "Global Coordinator").
The Company and the Selling Shareholder understand that the
U.S. Underwriters propose to make a public offering of the U.S. Securities as
soon as the U.S. Representatives deem(s) advisable after this Agreement has been
executed and delivered.
The Company and the U.S. Underwriters agree that up to 160,000
shares of the Initial U.S. Securities to be purchased by the U.S. Underwriters
and up to 40,000 shares of the Initial International Securities to be purchased
by the International Managers (collectively, the "Reserved Securities") shall be
reserved for sale by the Underwriters to certain eligible employees and persons
having business relationships with the Company, as part of the distribution of
the Securities by the Underwriters, subject to the terms of this Agreement, the
applicable rules, regulations and interpretations of the National Association of
Securities Dealers, Inc. and all other applicable laws, rules and regulations.
To the extent that such Reserved Securities are not orally confirmed for
purchase by such eligible employees and persons having business relationships
with the Company by the end of the first business day after the date of this
Agreement, such Reserved Securities may be offered to the public as part of the
public offering contemplated hereby.
The Company has filed with the Securities and Exchange
Commission (the "Commission") a registration statement on Form S-1 (No.
333-12030) covering the registration of the Securities under the Securities Act
of 1933, as amended (the "1933 Act"), including the related preliminary
prospectus or prospectuses. Promptly after execution and delivery of this
Agreement, the Company will either (i) prepare and file a prospectus in
accordance with the provisions of Rule 430A ("Rule 430A") of the rules and
regulations of the Commission under
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the 1933 Act (the "1933 Act Regulations") and paragraph (b) of Rule 424 ("Rule
424(b)") of the 1933 Act Regulations or (ii) if the Company has elected to rely
upon Rule 434 ("Rule 434") of the 1933 Act Regulations prepare and file a term
sheet (a "Term Sheet") in accordance with the provisions of Rule 434 and Rule
424(b). Two forms of prospectus are to be used in connection with the offering
and sale of the Securities: one relating to the U.S. Securities (the "Form of
U.S. Prospectus") and one relating to the International Securities (the "Form of
International Prospectus"). The Form of International Prospectus is identical to
the Form of U.S. Prospectus except for the front cover and back cover pages and
the information under the caption "Underwriting". The information included in
any such prospectus or in any such Term Sheet, as the case may be, that was
omitted from such registration statement at the time it became effective but
that is deemed to be part of such registration statement at the time it became
effective (a) pursuant to paragraph (b) of Rule 430A is referred to as "Rule
430A Information" or (b) pursuant to paragraph (d) of Rule 434 is referred to as
"Rule 434 Information." Each Form of U.S. Prospectus and Form of International
Prospectus used before such registration statement became effective, and any
prospectus that omitted, as applicable, the Rule 430A Information or the Rule
434 Information, that was used after such effectiveness and prior to the
execution and delivery of this Agreement, is herein called a "preliminary
prospectus." Such registration statement, including the exhibits thereto and any
schedules thereto at the time it became effective and including the Rule 430A
Information and the Rule 434 Information, as applicable, is herein called the
"Registration Statement." Any registration statement filed pursuant to Rule
462(b) of the 1933 Act Regulations is herein referred to as the "Rule 462(b)
Registration Statement," and after such filing the term "Registration Statement"
shall include the Rule 462(b) Registration Statement. The final Form of U.S.
Prospectus and the final Form of International Prospectus in the forms first
furnished to the Underwriters for use in connection with the offering of the
Securities are herein called the "U.S. Prospectus" and the "International
Prospectus," respectively, and collectively, the "Prospectuses." If Rule 434 is
relied on, the terms "U.S. Prospectus" and "International Prospectus" shall
refer to the preliminary U.S. Prospectus dated July 20, 2000 and preliminary
International Prospectus dated July 20, 2000, respectively, each together with
the applicable Term Sheet, and all references in this Agreement to the date of
such Prospectuses shall mean the date of the applicable Term Sheet. For purposes
of this Agreement, all references to the Registration Statement, any preliminary
prospectus, the U.S. Prospectus, the International Prospectus or any Term Sheet
or any amendment or supplement to any of the foregoing shall be deemed to
include the copy filed with the Commission pursuant to its Electronic Data
Gathering, Analysis and Retrieval system ("EDGAR").
SECTION 1. REPRESENTATIONS AND WARRANTIES.
(a) Representations and Warranties by the Company.
The Company represents and warrants to each U.S. Underwriter
as of the date hereof, as of the Closing Time referred to in Section 2(c)
hereof, and as of each Date of Delivery (if any) referred to in Section 2(b)
hereof, and agrees with each U.S. Underwriter, as follows:
(i) COMPLIANCE WITH REGISTRATION REQUIREMENTS.
Each of the Registration Statement and any Rule 462(b)
Registration Statement has become effective under the 1933 Act, no stop
order suspending the effectiveness of
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the Registration Statement or any Rule 462(b) Registration Statement
has been issued under the 1933 Act, and no proceedings for that purpose
have been instituted or are pending or, to the knowledge of the
Company, are contemplated by the Commission, and any request on the
part of the Commission for additional information has been complied
with.
At the respective times the Registration Statement, any Rule
462(b) Registration Statement and any post-effective amendments thereto
became effective, and at the Closing Time (and, if any U.S, Option
Securities are purchased, at the Date of Delivery), the Registration
Statement, the Rule 462(b) Registration Statement and any amendments
and supplements thereto complied and will comply in all material
respects with the requirements of the 1933 Act and the 1933 Act
Regulations and did not and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, and
the Prospectuses, any preliminary prospectuses and any supplement
thereto, or prospectus wrapper prepared in connection therewith, at
their respective times of issuance and at the Closing Time, complied
and will comply in all material respects with any applicable laws or
regulations of foreign jurisdictions in which the Prospectuses and such
preliminary prospectuses, as amended or supplemented, if applicable,
are distributed in connection with the offer and sale of Reserved
Securities. Neither of the Prospectuses nor any amendments or
supplements thereto, (including any prospectus wrapper) at the time the
Prospectuses or any amendments or supplements thereto were issued and
at the Closing Time (and, if any U.S. Option Securities are purchased,
at the Date of Delivery), included or will include an untrue statement
of a material fact or omitted or will 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. If Rule 434
is used, the Company will comply with the requirements of Rule 434 and
the Prospectuses shall not be "materially different", as such term is
used in Rule 434, from the prospectuses included in the Registration
Statement at the time it became effective. The representations and
warranties in this subsection shall not apply to statements in or
omissions from the Registration Statement or the U.S. Prospectus made
in reliance upon and in conformity with information furnished to the
Company in writing by any U.S. Underwriter through the U.S.
Representatives expressly for use in the Registration Statement or the
U.S. Prospectus.
Each preliminary prospectus and the prospectuses filed as part
of the Registration Statement as originally filed or as part of any
amendment thereto, or filed pursuant to Rule 424 under the 1933 Act,
complied when so filed in all material respects with the 1933 Act
Regulations and each preliminary prospectus and the Prospectuses
delivered to the Underwriters for use in connection with this offering
were substantively identical to the electronically transmitted copies
thereof filed with the Commission pursuant to EDGAR, except to the
extent permitted by Regulation S-T.
(ii) INDEPENDENT ACCOUNTANTS.
To the knowledge of the Company, Deloitte & Touche LLP, the
accountants who certified the financial statements and supporting
schedule included in the Registration
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Statement, are independent public accountants as required by the 1933
Act and the 1933 Act Regulations.
(iii) FINANCIAL STATEMENTS.
The consolidated financial statements included in the
Registration Statement and the Prospectuses, together with the related
schedule and notes, present fairly the financial position of the
Company and its consolidated subsidiaries at the dates indicated and
the statement of operations, shareholders' equity and cash flows of the
Company and its consolidated subsidiaries for the periods specified, in
each case after giving effect to the consummation of the
recapitalization and reorganization of the Company referred to in notes
1(b) and 9 to the audited consolidated financial statements; said
financial statements have been prepared in conformity with generally
accepted accounting principles ("GAAP") applied on a consistent basis
throughout the periods involved. The supporting schedule included in
the Registration Statement, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly in
accordance with GAAP the information required to be stated therein. The
selected consolidated financial data and the summary consolidated
financial data included in the Prospectuses present fairly the
information shown therein and have been compiled on a basis consistent
with that of the audited and unaudited consolidated financial
statements included in the Registration Statement.
(iv) NO MATERIAL ADVERSE CHANGE.
Since the respective dates as of which information is given in
the Registration Statement and the Prospectuses, except as otherwise
stated therein, (A) there has been no material adverse change in the
condition, financial or otherwise, or in the earnings, business affairs
or business prospects of the Company and its consolidated subsidiaries
considered as one enterprise, whether or not arising in the ordinary
course of business (a "Material Adverse Change"), (B) there have been
no transactions entered into by the Company or any of its subsidiaries,
other than those in the ordinary course of business, which are material
with respect to the Company and its subsidiaries considered as one
enterprise, and (C) there has been no dividend or distribution of any
kind declared, paid or made by the Company on any class of its capital
stock.
(v) GOOD STANDING OF THE COMPANY.
The Company has been duly incorporated and is validly existing
as an exempted company with limited liability in good standing under
the laws of Bermuda and has corporate power and authority to own, lease
and operate its properties and to conduct its business as described in
the Prospectuses and to enter into and perform its obligations under
this Agreement; and the Company is duly qualified as a foreign
corporation to transact business and is in good standing in each other
jurisdiction in which such qualification is required, whether by reason
of the ownership or leasing of property or the conduct of business,
except where the failure so to qualify or to be in good standing would
not have a material adverse effect on the condition, financial or
otherwise, earnings, business affairs or business prospects of the
Company and its consolidated
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subsidiaries considered as one enterprise, whether or not arising in
the ordinary course of business (a "Material Adverse Effect").
(vi) GOOD STANDING OF SUBSIDIARIES.
Each subsidiary of the Company listed on Schedule 1 (each a
"Subsidiary" and, collectively, the "Subsidiaries") has been duly
incorporated or organized and is validly existing as a corporation
or limited partnership in good standing under the laws of the
jurisdiction of its incorporation or organization, has power and
authority to own, lease and operate its properties and to conduct
its business as described in the Prospectuses and is duly qualified
as a foreign corporation or limited partnership to transact business
and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except where the
failure so to qualify or to be in good standing would not result in
a Material Adverse Effect; except as otherwise disclosed in the
Registration Statement, all of the issued and outstanding capital
stock or partnership interests of each such Subsidiary have been
duly authorized and validly issued, are fully paid and
non-assessable and are owned by the Company, directly or through
subsidiaries, free and clear of any material security interest,
mortgage, pledge, lien, encumbrance, claim or equity, except that
(A) the shares of Companhia Hoteis Palace are beneficially owned by
the Company and pledged as security for a bank loan, which bank has
contracted to complete the transfer of such shares to the Company,
by September 15, 2000; and (B) approximately 6.8% of the equity in
Companhia Hoteis Palace and approximately 4.5% of the equity in
Societe de la Cite are not owned by the Company or its subsidiaries;
none of the outstanding common shares of any Subsidiary was issued
in violation of the preemptive or similar rights of any
securityholder of such Subsidiary. The only subsidiaries of the
Company are (a) the subsidiaries listed in Exhibit 21 to the
Registration Statement and (b) certain other subsidiaries which,
considered in the aggregate as a single Subsidiary, do not
constitute a "significant subsidiary" as defined in Rule 1-02(w) of
Regulation S-X.
(vii) CAPITALIZATION.
The authorized, issued and outstanding Common Shares of the
Company are as set forth in the Prospectuses in the column entitled
"Actual" under the caption "Capitalization" (except for subsequent
issuances, if any, pursuant to this Agreement, pursuant to
reservations, agreements or employee benefit plans referred to in the
Prospectuses or pursuant to the exercise of convertible securities or
options referred to in the Prospectuses). The issued and outstanding
Common Shares of the Company, including the Securities to be purchased
by the Underwriters from the Selling Shareholder, have been duly
authorized and validly issued and are fully paid and non-assessable;
none of the outstanding Common Shares, including the Securities to be
purchased by the Underwriters from the Selling Shareholder, was issued
in violation of the preemptive or other similar rights of any
securityholder of the Company.
(viii) AUTHORIZATION OF AGREEMENTS.
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This Agreement and the International Purchase Agreement have
been duly authorized, executed and delivered by the Company.
(ix) AUTHORIZATION AND DESCRIPTION OF SECURITIES.
The Securities to be purchased by the U.S. Underwriters and
the International Managers from the Company have been duly authorized
for issuance and sale to the U.S. Underwriters pursuant to this
Agreement and the International Managers pursuant to the International
Purchase Agreement, respectively, and, when issued and delivered by the
Company pursuant to this Agreement and the International Purchase
Agreement, respectively, against payment of the consideration set forth
herein and the International Purchase Agreement, respectively, will be
validly issued, fully paid and non-assessable; the description of the
Common Shares contained in the Prospectuses conforms to the description
of the Common Shares set forth in the Company's bye-laws; no holder of
the Securities will be subject to personal liability by reason of being
such a holder; and the issuance of the Securities is not subject to the
preemptive or other similar rights of any securityholder of the
Company.
(x) ABSENCE OF DEFAULTS AND CONFLICTS.
Neither the Company nor any of its Subsidiaries is in
violation of its charter or bye-laws or other organizational documents
or in default in the performance or observance of any obligation,
agreement, covenant or condition contained in any contract, indenture,
mortgage, deed of trust, loan or credit agreement, note, lease or other
agreement or instrument to which the Company or any of its Subsidiaries
is a party or by which it or any of them may be bound, or to which any
of the property or assets of the Company or any Subsidiary is subject
(collectively, "Agreements and Instruments") except for such defaults,
if any, that would not result in a Material Adverse Effect; and the
execution, delivery and performance of this Agreement and the
International Purchase Agreement, the consummation of the transactions
contemplated in this Agreement and the International Purchase Agreement
and in the Registration Statement (including the issuance and sale of
the Securities and the use of the proceeds from the sale of the
Securities as described in the Prospectuses under the caption "Use of
Proceeds" but not including the proposed spin-off distribution of
Common Shares by the Selling Shareholder as described in the
Prospectuses under the caption "Our Separation from Sea Containers")
and compliance by the Company with its obligations under this Agreement
and the International Purchase Agreement (A) have been duly authorized
by all necessary corporate action on the part of the Company, (B) do
not and will not, whether within or without the giving of notice or
passage of time or both, conflict with or constitute a breach of, or
default or Repayment Event (as defined below) under, or result in the
creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any Subsidiary pursuant to, the
Agreements and Instruments (except for such conflicts, breaches or
defaults or liens, charges or encumbrances that would not result in a
Material Adverse Effect), (C) will not result in any violation of the
provisions of the charter or bye-laws or other organizational documents
of the Company or any Subsidiary or (D) will not result in any
violation of any applicable law, statute, rule, regulation, judgment,
order, writ or decree of any government, government
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instrumentality or court, within or without the United States, having
jurisdiction over the Company or any Subsidiary or any of their assets,
properties or operations. As used herein, a "Repayment Event" means any
event or condition which gives the holder of any note, debenture or
other evidence of indebtedness of the Company or any Subsidiary (or any
person acting on such holder's behalf) the right to require the
repurchase, redemption or repayment of all or a portion of such
indebtedness by the Company or any Subsidiary.
(xi) ABSENCE OF LABOR DISPUTE.
No labor dispute with the employees of the Company or any
Subsidiary exists or, to the knowledge of the Company, is imminent, and
the Company is not aware of any existing or imminent labor disturbance
by the employees of any of its or any Subsidiary's principal suppliers,
manufacturers, customers or contractors, except for such disputes or
disturbances, if any, as may reasonably be expected not to result in a
Material Adverse Effect.
(xii) ABSENCE OF PROCEEDINGS.
Except as described in the Registration Statement and the
Prospectuses, there is no action, suit, proceeding, inquiry or
investigation before or brought by any court or governmental agency or
body, within or without the United States, now pending, or, to the
knowledge of the Company, threatened, against or affecting the Company
or any Subsidiary, which is required to be disclosed in the
Registration Statement (other than as disclosed therein), or which
might reasonably be expected to result in a Material Adverse Effect, or
which might reasonably be expected to materially and adversely affect
the consummation of the transactions contemplated in this Agreement and
the International Purchase Agreement or the performance by the Company
of its obligations hereunder or thereunder; the aggregate of all
pending legal or governmental proceedings to which the Company or any
Subsidiary is a party or of which any of their respective property or
assets is the subject which are not described in the Registration
Statement, including ordinary routine litigation incidental to the
business, could not reasonably be expected to result in a Material
Adverse Effect.
(xiii) ACCURACY OF EXHIBITS.
There are no contracts or documents which are required to be
described in the Registration Statement or the Prospectuses or to be
filed as exhibits thereto which have not been so described and filed as
required.
(xiv) POSSESSION OF INTELLECTUAL PROPERTY.
The Company and its Subsidiaries own or possess, or can
acquire on reasonable terms, adequate patents, patent rights, licenses,
inventions, copyrights, know-how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information,
systems or procedures), trademarks, service marks, trade names or other
intellectual property (collectively, "Intellectual Property") necessary
to carry on the business now operated by them, and neither the Company
nor any of its Subsidiaries has received any notice or is otherwise
aware of any infringement of or conflict with
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asserted rights of others with respect to any Intellectual Property or
of any facts or circumstances which would render any Intellectual
Property invalid or inadequate to protect the interest of the Company
or any of its Subsidiaries therein, and which infringement or conflict
(if the subject of any unfavorable decision, ruling or finding) or
invalidity or inadequacy, singly or in the aggregate, would result in a
Material Adverse Effect.
(xv) ABSENCE OF FURTHER REQUIREMENTS.
No filing with, or authorization, approval, consent, license,
order, registration, qualification or decree of, any court or
governmental authority or agency is necessary or required for the
performance by the Company of its obligations hereunder, in connection
with the offering, issuance or sale of Securities by the Company under
this Agreement and the International Purchase Agreement or the
consummation of the transactions contemplated by this Agreement and the
International Purchase Agreement, except (i) such as have been already
obtained or as may be required under the 1933 Act or the 1933 Act
Regulations and state securities or blue sky laws and (ii) such as have
been obtained under the laws and regulations of jurisdictions outside
the United States in which the Reserved Securities are offered.
(xvi) POSSESSION OF LICENSES AND PERMITS.
The Company and its Subsidiaries possess such permits,
licenses, approvals, consents and other authorizations (collectively,
"Governmental Licenses") issued by the appropriate United States
federal, state or local or foreign regulatory agencies or bodies as are
necessary to conduct the business now operated by them, except those
Governmental Licenses the failure of which to obtain would not result
in a Material Adverse Effect; the Company and its Subsidiaries are in
compliance with the terms and conditions of all such Governmental
Licenses, except where the failure so to comply would not, singly or in
the aggregate, have a Material Adverse Effect; all of the Governmental
Licenses are valid and in full force and effect, except when the
invalidity of such Governmental Licenses or the failure of such
Governmental Licenses to be in full force and effect would not have a
Material Adverse Effect; and neither the Company nor any of its
Subsidiaries has received any notice of proceedings relating to the
revocation or modification of any such Governmental Licenses which,
singly or in the aggregate, if the subject of an unfavorable decision,
ruling or finding, would result in a Material Adverse Effect.
(xvii) TITLE TO PROPERTY.
The Company and its Subsidiaries have good and marketable
title to all real property owned by the Company and its Subsidiaries
including the properties indicated as owned and shown next to the
Subsidiaries listed on Schedule 1 and good title to all other
properties owned by them, in each case free and clear of all mortgages,
pledges, liens, security interests, claims, restrictions or
encumbrances of any kind except such as (a) are described in the
Prospectuses or (b) do not, singly or in the aggregate, materially
affect the value of such property and do not materially interfere with
the use made and proposed
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to be made of such property by the Company or any of its Subsidiaries;
and all of the leases and subleases material to the business of the
Company and its Subsidiaries, considered as one enterprise, and under
which the Company or any of its Subsidiaries holds properties described
in the Prospectuses, are in full force and effect; and neither the
Company nor any Subsidiary has any notice of any material claim of any
sort that has been asserted by anyone adverse to the rights of the
Company or any Subsidiary under any of the leases or subleases
mentioned above, or affecting or questioning the rights of the Company
or such Subsidiary to the continued possession of the leased or
subleased premises under any such lease or sublease.
(xviii) INVESTMENT COMPANY ACT.
The Company is not, and upon the issuance and sale of the
Securities as herein contemplated and the application of the net
proceeds therefrom as described in the Prospectuses will not be, an
"investment company" or an entity "controlled" by an "investment
company" as such terms are defined in the Investment Company Act of
1940, as amended (the "1940 Act").
(xix) ENVIRONMENTAL LAWS.
To the Company's knowledge, except as described in the
Registration Statement and except as would not, singly or in the
aggregate, result in a Material Adverse Effect, (A) neither the Company
nor any of its Subsidiaries is in violation of any United States
federal, state or local or foreign statute, law, rule, regulation,
ordinance, code, policy or rule of common law or any judicial or
administrative interpretation thereof, including any judicial or
administrative order, consent, decree or judgment, relating to
pollution or protection of human health, the environment (including,
without limitation, ambient air, surface water, groundwater, land
surface or subsurface strata) or wildlife, including, without
limitation, laws and regulations relating to the release or threatened
release of chemicals, pollutants, contaminants, wastes, toxic
substances, hazardous substances, petroleum or petroleum products
(collectively, "Hazardous Materials") or to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials (collectively, "Environmental
Laws"), (B) the Company and its Subsidiaries have all permits,
authorizations and approvals required under any applicable
Environmental Laws and are each in compliance with their requirements,
(C) there are no pending or threatened administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens,
notices of noncompliance or violation, investigations or proceedings
relating to any Environmental Law against the Company or any of its
Subsidiaries, and (D) there are no events or circumstances that might
reasonably be expected to form the basis of an order for clean-up or
remediation, or an action, suit or proceeding by any private party or
governmental body or agency, against or affecting the Company or any of
its Subsidiaries relating to Hazardous Materials or any Environmental
Laws.
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(xx) REGISTRATION RIGHTS.
There are no persons with registration rights or other similar
rights to have any securities of the Company registered pursuant to the
Registration Statement or otherwise registered by the Company under the
1933 Act.
(xxi) OWNERSHIP AND LIENS.
The Road to Mandalay river cruiseship (the "Cruiseship") is
duly documented in the name of Vessel Holdings 2 Ltd. as the sole owner
of the Cruiseship under the laws of Myanmar. The Venice
Simplon-Orient-Express and the British Pullman are wholly owned by the
Company or by one of its wholly-owned subsidiaries, and the Great South
Pacific Express and the Eastern & Oriental Express (together with the
above, the "Trains") are held as minority interests by the Company or
by one of its wholly owned subsidiaries.
(xxii) CONDITION OF CRUISESHIP.
(a) The Cruiseship maintains class, and there are no overdue
recommendations of its classification society.
(b) The Cruiseship is in good operating condition and repair
and fit for its intended use and operation.
(c) No material modification or alteration of the Cruiseship
or other similar action is necessary:
(1) to comply with the laws of Myanmar or any other
laws applicable to the Cruiseship, except where a failure to
comply would not have a Material Adverse Effect; or
(2) for the Cruiseship's intended use and operation
as a passenger cruise vessel.
(xxiii) CONDITION OF TRAINS.
(a) Each of the Trains and the trains operated by PeruRail are
in good operating condition and repair and fit for their intended use and
operation except, in the case of PeruRail, as would not have a Material Adverse
Effect.
(b) No material modification or alteration or other similar
action is necessary with respect to any of the Trains or the trains operated by
PeruRail:
(1) to comply with any laws applicable to such Train
or the trains operated by PeruRail, except where a failure to
comply would not have a Material Adverse Effect; or
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(2) for the intended use and operation of the Trains
or for the provision of passenger train service by PeruRail.
(b) Representations and Warranties by the Selling Shareholder.
The Selling Shareholder represents and warrants to each U.S.
Underwriter as of the date hereof, as of the Closing Time, and, if the Selling
Shareholder is selling Option Securities on a Date of Delivery, as of each such
Date of Delivery, and agrees with each U.S. Underwriter, as follows:
(i) ACCURATE DISCLOSURE.
To the best knowledge of the Selling Shareholder, the
representations and warranties of the Company contained in Section 1(a)
hereof are true and correct; the Selling Shareholder has reviewed and
is familiar with the Registration Statement and the Prospectuses and,
to its best knowledge, neither the Prospectuses nor any amendments or
supplements thereto (including any prospectus wrapper) includes any
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; the Selling
Shareholder is not prompted to sell the Securities to be sold by the
Selling Shareholder hereunder by any information concerning the Company
or any Subsidiary of the Company which is not set forth in the
Prospectus.
(ii) AUTHORIZATION OF AGREEMENTS.
The Selling Shareholder has the full right, power and
authority to enter into this Agreement and to sell, transfer and
deliver the Securities to be sold by the Selling Shareholder hereunder.
The execution and delivery of this Agreement, the sale and delivery of
the Securities to be sold by the Selling Shareholder, the consummation
of the transactions contemplated herein and compliance by the Selling
Shareholder with its obligations hereunder (A) have been duly
authorized by all necessary corporate action on the part of the Selling
Shareholder, (B) do not and will not, whether with or without the
giving of notice or passage of time or both, conflict with or
constitute a breach of, or default under, or result in the creation or
imposition of any tax, lien, charge or encumbrance upon the Securities
to be sold by the Selling Shareholder or any other property or assets
of the Selling Shareholder, or of any of its significant subsidiaries
(as such term is defined in Rule 1-02(w) of Regulation S-X) or GE SeaCo
SRL pursuant to, any contract, indenture, mortgage, deed of trust, loan
or credit agreement, note, license, lease or other agreement or
instrument to which any of them is a party or which is specifically
binding on any of them or to which any of their property or assets is
subject (except for such conflicts, breaches, or defaults or liens,
charges or encumbrances that would not result in a material adverse
effect on the condition, financial or otherwise, earnings, business
affairs or business prospects of the Selling Shareholder and its
consolidated subsidiaries considered as one enterprise (a "Selling
Shareholder Material Adverse Effect"), (C) will not result in any
violation of the provisions of the charter, bye-laws or other
organizational documents of the Selling Shareholder, or (D) will not
result in any violation of any applicable, law, statute, rule,
regulation, judgment, order, writ or
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decree of any government, government instrumentality or court, within
or without the United States, having jurisdiction over the Selling
Shareholder or any of its properties.
(iii) DIRECT HOLDER OF SECURITIES; TITLE TO SECURITIES.
The Securities to be sold by the Selling Shareholder pursuant
to this Agreement are certificated securities in registered form and
are not held in any securities account or by or through any securities
intermediary within the meaning of Article 8 of the Uniform Commercial
Code as in effect in the State of New York ("NYUCC"). The Selling
Shareholder has, and at the Closing Time and, if any Option Securities
are purchased, on the Date of Delivery, will have, full right, power
and authority to hold, sell, transfer and deliver the Securities to be
sold by the Selling Shareholder pursuant to this Agreement; and upon
the Underwriters' acquiring possession of such Securities and paying
the purchase price therefor as herein contemplated without notice of
any adverse claim, the Underwriters will acquire their respective
interests in such Securities (including, without limitation, all rights
that the Selling Shareholder has the power to transfer in such
Securities) free of any adverse claim.
(iv) ABSENCE OF MANIPULATION.
The Selling Shareholder has not taken, and will not take,
directly or indirectly, any action which is designed to result in, or
which has constituted, or which might reasonably be expected to cause
or result in, stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the
Securities.
(v) ABSENCE OF FURTHER REQUIREMENTS.
No filing with, or authorization, approval, consent, license,
order, registration, qualification or decree of, any court or
governmental authority or agency, is necessary or required for the
performance by the Selling Shareholder of its obligations hereunder or
in connection with its sale and delivery of Securities hereunder or the
consummation of the transactions contemplated by this Agreement, except
(i) such as may have previously been made or obtained or as may be
required under the 1933 Act or the 1933 Act Regulations or state
securities laws and (ii) such as have been obtained under the laws and
regulations of jurisdictions outside the United States in which the
Reserved Securities are offered.
(vi) RESTRICTION ON SALE OF SECURITIES.
During a period of 180 days from the date of the Prospectuses
the Selling Shareholder will not, without the prior written consent of
Merrill Lynch (i) offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase or otherwise
transfer or dispose of, directly or indirectly, any Common Shares or
any securities convertible into or exercisable or exchangeable for
Common Shares or file any registration statement under the 1933 Act
with respect to any of the foregoing or (ii) enter into any swap or any
other agreement or any transaction that transfers, in whole or in part,
directly or indirectly, the economic consequence of ownership of the
Common Shares, whether any
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such swap or transaction described in clause (i) or (ii) above is to be
settled by delivery of Common Shares or such other securities, in cash
or otherwise. The foregoing sentence shall not apply to the sale of the
Securities to be sold hereunder or under the International Purchase
Agreement.
(vii) CERTIFICATES SUITABLE FOR TRANSFER.
The Selling Shareholder will deliver to the Underwriters
certificates for all of the Securities to be sold by the Selling
Shareholder pursuant to this Agreement, in suitable form for transfer
by delivery or accompanied by duly executed instruments of transfer or
assignment in blank, with signatures guaranteed have been placed in
custody with a custodian with irrevocable conditional instructions to
deliver such Securities to the Underwriters pursuant to this Agreement.
(viii) NO ASSOCIATION WITH NASD.
Neither the Selling Shareholder nor any of its affiliates
directly, or indirectly through one or more intermediaries, controls,
or is controlled by, or is under common control with, or has any other
association with (within the meaning of Article I, Section 1(ee) of the
By-laws of the National Association of Securities Dealers, Inc. (the
"NASD")), any member firm of the NASD.
(C) OFFICER'S CERTIFICATES.
Any certificate signed by any officer of the Company or any of
its Subsidiaries delivered to the Global Coordinator, the U.S. Representatives
or to counsel for the U.S. Underwriters pursuant to the terms of this Agreement
shall be deemed a representation and warranty by the Company to each U.S.
Underwriter as to the matters covered thereby; and any certificate signed by or
on behalf of the Selling Shareholder or any of its subsidiaries as such and
delivered to the Global Coordinator, the U.S. Representatives or to counsel for
the U.S. Underwriters pursuant to the terms of this Agreement shall be deemed a
representation and warranty by the Selling Shareholder to each U.S Underwriter
as to the matters covered thereby.
SECTION 2. SALE AND DELIVERY TO U.S. UNDERWRITERS; CLOSING.
(A) INITIAL SECURITIES.
On the basis of the representations and warranties herein
contained and subject to the terms and conditions herein set forth, the Company
and the Selling Shareholder agree to sell to each U.S. Underwriter, severally
and not jointly, and each U.S. Underwriter, severally and not jointly, agrees to
purchase from the Company and the Selling Shareholder, at the price per share
set forth in Schedule C, the number of Initial U.S. Securities set forth in
Schedule A opposite the name of such U.S. Underwriter, plus any additional
number of Initial U.S. Securities which such Underwriter may become obligated to
purchase pursuant to the provisions of Section 10 hereof.
(B) OPTION SECURITIES.
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In addition, on the basis of the representations and
warranties herein contained and subject to the terms and conditions herein set
forth, the Selling Shareholder hereby grants an option to the U.S. Underwriters,
severally and not jointly, to purchase up to an additional 1,200,000 Common
Shares at the price per share set forth in Schedule C, less an amount per share
equal to any dividends or distributions declared by the Company and payable on
the Initial U.S. Securities but not payable on the U.S. Option Securities. The
option hereby granted will expire 30 days after the date hereof and may be
exercised in whole or in part from time to time only for the purpose of covering
over-allotments which may be made in connection with the offering and
distribution of the Initial U.S. Securities upon notice by the Global
Coordinator to the Company and the Selling Shareholder setting forth the number
of U.S. Option Securities as to which the several U.S. Underwriters are then
exercising the option and the time and date of payment and delivery for such
U.S. Option Securities. Any such time and date of delivery for the U.S. Option
Securities (a "Date of Delivery") shall be determined by the Global Coordinator,
but shall not be later than seven full business days after the exercise of said
option, nor in any event prior to the Closing Time, as hereinafter defined. If
the option is exercised as to all or any portion of the U.S. Option Securities,
each of the U.S. Underwriters, acting severally and not jointly, will purchase
that proportion of the total number of U.S. Option Securities then being
purchased which the number of Initial U.S. Securities set forth in Schedule A
opposite the name of such U.S. Underwriter bears to the total number of Initial
U.S. Securities, subject in each case to such adjustments as the Global
Coordinator in its discretion shall make to eliminate any sales or purchases of
fractional shares.
(C) PAYMENT.
Payment of the purchase price for, and delivery of
certificates for, the Initial Securities shall be made at the offices of
Shearman & Sterling, 599 Lexington Avenue, New York, New York, 10022, or at such
other place as shall be agreed upon by the Global Coordinator and the Company
and the Selling Shareholder, at 9:00 A.M. (Eastern time) on the third (fourth,
if the pricing occurs after 4:30 P.M. (Eastern time) on any given day) business
day after the date hereof (unless postponed in accordance with the provisions of
Section 10), or such other time not later than ten business days after such date
as shall be agreed upon by the Global Coordinator and the Company and the
Selling Shareholder (such time and date of payment and delivery being herein
called "Closing Time").
In addition, in the event that any or all of the U.S. Option
Securities are purchased by the U.S. Underwriters, payment of the purchase price
for, and delivery of certificates for, such U.S. Option Securities shall be made
at the above-mentioned offices, or at such other place as shall be agreed upon
by the Global Coordinator and the Company and the Selling Shareholder, on each
Date of Delivery as specified in the notice from the Global Coordinator to the
Company and the Selling Shareholder.
Payment shall be made to the Company and the Selling
Shareholder by wire transfer of immediately available funds to bank accounts
designated by the Company and the Selling Shareholder, against delivery to the
U.S. Representatives for the respective accounts of the U.S. Underwriters of
certificates for the U.S. Securities to be purchased by them. It is understood
that each U.S. Underwriter has authorized the U.S. Representatives, for its
account, to accept delivery of, receipt for, and make payment of the purchase
price for, the Initial U.S.
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<PAGE>
Securities and the U.S. Option Securities, if any, which it has agreed to
purchase. Merrill Lynch, individually and not as representative of the U.S.
Underwriters, may (but shall not be obligated to) make payment of the purchase
price for the Initial U.S. Securities or the U.S. Option Securities, if any, to
be purchased by any U.S. Underwriter whose funds have not been received by the
Closing Time or the relevant Date of Delivery, as the case may be, but such
payment shall not relieve such U.S. Underwriter from its obligations hereunder.
(D) DENOMINATIONS; REGISTRATION.
Certificates for the Initial U.S. Securities and the U.S.
Option Securities, if any, shall be in such denominations and registered in such
names as the U.S. Representatives may request in writing at least two full
business days before the Closing Time or the relevant Date of Delivery, as the
case may be. The certificates for the Initial U.S. Securities and the U.S.
Option Securities, if any, will be made available for examination and packaging
by the U.S. Representatives in The City of New York not later than 10:00 A.M.
(Eastern time) on the business day prior to the Closing Time or the relevant
Date of Delivery, as the case may be.
SECTION 3. COVENANTS OF THE COMPANY.
The Company covenants with each U.S. Underwriter as follows:
(a) Compliance with Securities Regulations and Commission
Requests.
The Company, subject to Section 3(b), will comply with the
requirements of Rule 430A or Rule 434, as applicable, and will notify
the Global Coordinator immediately, and confirm the notice in writing,
(i) when any post-effective amendment to the Registration Statement
shall become effective, or any supplement to the Prospectuses or any
amended Prospectuses shall have been filed, (ii) of the receipt of any
comments from the Commission concerning the Registration Statement,
(iii) of any request by the Commission for any amendment to the
Registration Statement or any amendment or supplement to the
Prospectuses or for additional information, and (iv) of the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement or of any order preventing or suspending the use
of any preliminary prospectus, or of its awareness of the initiation or
threatening of any proceedings for any of such purposes. The Company
will promptly effect the filings necessary pursuant to Rule 424(b) and
will take such steps as it deems necessary to ascertain promptly
whether the form of prospectus transmitted for filing under Rule 424(b)
was received for filing by the Commission and, in the event that it was
not, it will promptly file such prospectus. The Company will make every
reasonable effort to prevent the issuance of any stop order and, if any
stop order is issued, to obtain the lifting thereof at the earliest
possible moment.
(b) Filing of Amendments.
The Company will give the Global Coordinator notice of its
intention to file or prepare any amendment to the Registration
Statement (including any filing under Rule 462(b)), any Term Sheet or
any amendment, supplement or revision to either any prospectus included
in the Registration Statement at the time it became effective or to the
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<PAGE>
Prospectuses, will furnish the Global Coordinator with copies of any
such documents a reasonable amount of time prior to such proposed
filing or use, as the case may be, and will not file or use any such
document to which the Global Coordinator or counsel for the U.S.
Underwriters shall object.
(c) Delivery of Registration Statements.
The Company has furnished or will deliver to the U.S.
Representatives and counsel for the U.S. Underwriters, without charge,
copies of the Registration Statement as originally filed and of each
amendment thereto (including exhibits filed therewith or incorporated
by reference therein) and signed copies of all consents and
certificates of experts, and will also deliver to the U.S.
Representatives, upon their request without charge, a conformed copy of
the Registration Statement as originally filed and of each amendment
thereto (without exhibits) for each of the U.S. Underwriters. The
copies of the Registration Statement and each amendment thereto
furnished to the U.S. Underwriters will be substantively identical to
the electronically transmitted copies thereof filed with the Commission
pursuant to EDGAR, except to the extent permitted by Regulation S-T.
(d) Delivery of Prospectuses.
The U.S. Representatives acknowledge that the Company has
delivered to each U.S. Underwriter, without charge, as many copies of
each preliminary prospectus as such U.S. Underwriter reasonably
requested, and the Company hereby consents to the use of such copies
for purposes permitted by the 1933 Act. The Company will furnish to
each U.S. Underwriter, without charge, during the period when the U.S.
Prospectus is required to be delivered under the 1933 Act or the
Securities Exchange Act of 1934 (the "1934 Act"), such number of copies
of the U.S. Prospectus (as amended or supplemented) as such U.S.
Underwriter may reasonably request. The U.S. Prospectus and any
amendments or supplements thereto furnished to the U.S. Underwriters
will be substantively identical to the electronically transmitted
copies thereof filed with the Commission pursuant to EDGAR, except to
the extent permitted by Regulation S-T.
(e) Continued Compliance with Securities Laws.
The Company will comply with the 1933 Act and the 1933 Act
Regulations so as to permit the completion of the distribution of the
Securities as contemplated in this Agreement, the International
Purchase Agreement and in the Prospectuses. If at any time when a
prospectus is required by the 1933 Act to be delivered in connection
with sales of the Securities, any event shall occur or condition shall
exist as a result of which it is necessary, in the opinion of counsel
for the U.S. Underwriters or for the Company, to amend the Registration
Statement or amend or supplement any Prospectus in order that the
Prospectuses will not include any untrue statements of a material fact
or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances
existing at the time any such Prospectus is delivered to a purchaser,
or if it shall be necessary, in the opinion of such counsel, at any
such time to amend the Registration Statement or amend or supplement
any Prospectus in order to
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<PAGE>
comply with the requirements of the 1933 Act or the 1933 Act
Regulations, the Company will promptly prepare and file with the
Commission, subject to Section 3(b), such amendment or supplement as
may be necessary to correct such statement or omission or to make the
Registration Statement or the Prospectuses comply with such
requirements, and the Company will furnish to the U.S. Underwriters
such number of copies of such amendment or supplement as the U.S.
Underwriters may reasonably request.
(f) Rule 158.
The Company will timely file such reports pursuant to the 1934
Act as are necessary in order to make generally available to its
securityholders as soon as practicable an earnings statement for the
purposes of, and to provide the benefits contemplated by, the last
paragraph of Section 11(a) of the 1933 Act.
(g) Use of Proceeds.
The Company and the Selling Shareholder will use the net
proceeds received by them from the sale of the Securities in the manner
specified in the Prospectuses under "Use of Proceeds" and will comply
with the provisions of the indentures providing for the outstanding
senior notes of the Selling Shareholder.
(h) Listing.
The Company will use its best efforts to effect the listing of
the Common Shares (including the Securities) on the New York Stock
Exchange.
(i) Restriction on Sale of Securities.
During a period of 180 days from the date of the Prospectuses,
the Company will not, without the prior written consent of Merrill
Lynch (i) directly or indirectly offer, pledge, sell, contract to sell,
sell any option or contract to purchase, purchase any option or
contract to sell, grant any option, right or warrant to purchase or
otherwise transfer or dispose of any Common Shares or any securities
convertible into or exercisable or exchangeable for Common Shares
(except for private non-registered sales of additional Common Shares of
the Company, the market value of which shall not exceed $60.0 million
in the aggregate, made in connection with one or more business or asset
acquisitions, provided that (a) the Company gives Merrill Lynch prior
written notice of each such sale, and (b) each recipient of such Common
Shares agrees in writing to be bound by the restriction set forth in
this subsection (i) for any balance of the 180-day restriction period)
or (ii) file any registration statement under the 1933 Act with respect
to any of the foregoing or (iii) enter into any swap or any other
agreement or any transaction that transfers, in whole or in part,
directly or indirectly, the economic consequence of ownership of the
Common Shares, whether any such swap or transaction described in clause
(i) (iii) above is to be settled by delivery of Common Shares or such
other securities, in cash or otherwise. The foregoing sentence shall
not apply to (A) the sale of the Securities to be sold hereunder or
under the International Purchase Agreement, (B) any Common Shares
issued by the Company upon the exercise of an option or warrant or the
conversion of a security outstanding on the date hereof and referred to
in
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the Prospectuses, or (C) any Common Shares issued or options to
purchase Common Shares granted pursuant to existing employee benefit
plans of the Company described to in the Prospectuses.
(j) Reporting Requirements.
The Company, during the period when the Prospectuses are
required to be delivered under the 1933 Act or the 1934 Act, will file
all documents required to be filed with the Commission pursuant to the
1934 Act within the time periods required by the 1934 Act and the rules
and regulations of the Commission thereunder.
(k) Compliance with NASD Rules.
The Company hereby agrees that it will ensure that the
Reserved Securities will be restricted as required by the NASD or the
NASD rules from sale, transfer, assignment, pledge or hypothecation for
a period of three months following the date of this Agreement. The
Underwriters will notify the Company as to which persons will need to
be so restricted. At the request of the Underwriters, the Company will
direct the transfer agent to place a stop transfer restriction upon
such securities for such period of time. Should the Company release, or
seek to release, from such restrictions any of the Reserved Securities,
the Company agrees to reimburse the Underwriters for any reasonable
expenses (including, without limitation, legal expenses) they incur in
connection with such release.
(l) Compliance with Rule 463.
The Company will file with the Commission such information
concerning the use of proceeds from the sale of the Securities as may
be required pursuant to Rule 463 of the 1933 Act Regulations.
(m) Blue Sky Qualifications.
The Company will cooperate with the Underwriters to qualify
the Securities for offering and sale under the applicable securities
laws of such states and other jurisdictions (domestic or foreign) as
the Global Coordinator may designate and to maintain such
qualifications in effect for a period of not less than one year from
the later of the effective date of the Registration Statement and any
Rule 462(b) Registration Statement; provided, however, that the
Company shall not be obligated to file any general consent to service
of process or to qualify as a foreign corporation or as a dealer in
securities in any jurisdiction in which it is not so qualified or to
subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject. In each
jurisdiction in which the Securities have been so qualified, the
Company will cooperate with the Underwriters to file such statements
and reports as may be required by the laws of such jurisdiction to
continue such qualification in effect for a period of not less than one
year from the effective date of the Registration Statement and any Rule
462(b) Registration Statement.
SECTION 4. PAYMENT OF EXPENSES.
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(A) EXPENSES.
The Company and the Selling Shareholder will pay or cause to
be paid all expenses incident to the performance of their respective obligations
under this Agreement, including (i) the preparation, printing and filing of the
Registration Statement (including financial statements and exhibits) as
originally filed and of each amendment thereto, (ii) the preparation, printing
and delivery to the Underwriters of this Agreement, any Agreement among
Underwriters and such other documents as may be required in connection with the
offering, purchase, sale, issuance or delivery of the Securities, (iii) the
preparation, issuance and delivery of the certificates for the Securities to the
Underwriters, including any stock or other transfer taxes and any stamp or other
duties payable upon the sale, issuance or delivery of the Securities to the
Underwriters and the transfer of the Securities between the U.S. Underwriters
and the International Managers, (iv) the fees and disbursements of the Company's
counsel, accountants and other advisors, (v) the filing fees incident to any
necessary filings under state securities laws and the reasonable fees and
disbursements of counsel for the Underwriters in connection therewith and in
connection with the preparation and delivery to the U.S. Underwriters of the
Blue Sky Survey and any supplement thereto, (vi) the printing and delivery to
the Underwriters of copies of each preliminary prospectus, any Term Sheets and
the Prospectuses and any amendments or supplements thereto, (vii) the fees and
expenses of any transfer agent or registrar for the Securities, (viii) the
filing fees incident to, and the reasonable fees and disbursements of counsel to
the Underwriters not exceeding $15,000 in connection with, the review by the
NASD of the terms of the sale of the Securities, (ix) the fees and expenses
incurred in connection with the listing of the Securities on the New York Stock
Exchange and (x) all costs and expenses of the Underwriters including the
reasonable fees and disbursements of counsel for the Underwriters in connection
with, matters related to the Reserved Securities.
(B) ADDITIONAL EXPENSES OF THE SELLING SHAREHOLDER.
The Selling Shareholder will pay all expenses incident to the
performance of its obligations under, and the sale by it of Securities pursuant
to, this Agreement, including (i) any stamp duties, capital duties and stock
transfer taxes, if any, payable upon its sale of Securities to the Underwriters,
and their transfer between the Underwriters pursuant to an agreement between
such Underwriters, and (ii) the fees and disbursements of its counsel,
accountants and other advisors.
(C) TERMINATION OF AGREEMENT.
If this Agreement is terminated by the U.S. Representatives in
accordance with the provisions of Section 5(p) or Section 9(a)(i) hereof before
the sale of the Initial U.S. Securities, the Company and the Selling Shareholder
shall reimburse the U.S. Underwriters for all of their out of pocket expenses
incurred in connection with the offer of the Initial U.S. Securities, including
the reasonable fees and disbursements of counsel for the U.S. Underwriters.
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(D) ALLOCATION OF EXPENSES.
The provisions of this Section 4 shall not affect any
agreement that the Company and the Selling Shareholder may make for the sharing
of the costs and expenses of the offer and sale of the Securities.
SECTION 5. CONDITIONS OF U.S. UNDERWRITERS' OBLIGATIONS.
The obligations of the several U.S. Underwriters hereunder are
subject to the accuracy of the representations and warranties of the Company
contained in Section 1 hereof or in certificates of any officer of the Company
or any Subsidiary delivered pursuant to the provisions hereof, to the
performance by the Company of its covenants and other obligations hereunder, and
to the following further conditions:
(a) Effectiveness of Registration Statement.
The Registration Statement, including any Rule 462(b)
Registration Statement, has become effective and at Closing Time no stop order
suspending the effectiveness of the Registration Statement shall have been
issued and remain in force under the 1933 Act and no proceedings therefor shall
have been initiated or threatened by the Commission, and any request on the part
of the Commission for additional information shall have been complied with to
the reasonable satisfaction of counsel to the U.S. Underwriters. A prospectus
containing the Rule 430A Information shall have been filed with the Commission
in accordance with Rule 424(b) if required (or a post-effective amendment
providing such information shall have been filed and declared effective in
accordance with the requirements of Rule 430A) or, if the Company has elected to
rely upon Rule 434, a Term Sheet shall have been filed with the Commission in
accordance with Rule 424(b).
(b) Opinion of U.S. Counsel for Company.
At Closing Time, the U.S. Representatives shall have received
the favorable opinion, dated as of Closing Time, of Carter, Ledyard & Milburn,
U.S. counsel for the Company, in form and substance reasonably satisfactory to
counsel for the U.S. Underwriters, together with copies of such opinion for each
of the other U.S. Underwriters, to the effect set forth in Exhibit A hereto.
(c) Opinion of Bermuda Counsel for Company.
At Closing Time, the U.S. Representatives shall have received
the favorable opinion, dated the Closing Time, of Appleby Spurling & Kempe,
Bermuda counsel for the Company, in form and substance reasonably satisfactory
to counsel for the U.S. Underwriters, together with signed or reproduced copies
of such opinion for each of the other U.S. Underwriters, to the effect set forth
in Exhibit B hereto.
(d) Opinions of Local Counsel for the Company.
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At Closing Time, the U.S. Representatives shall have received
favorable opinions, dated the Closing Time, of John T. Landry, Jr., Grimaldi
Clifford Chance, and Bulhoes Pedreira, Bulhoes Carvalho & Advogados Associados,
each in form and substance reasonably satisfactory to counsel for the U.S.
Underwriters, together with signed or reproduced copies of such opinion for each
of the other U.S. Underwriters, to the effect set forth in Exhibits C-1, C-2 and
C-3 hereto.
(e) Opinion of U.S. Counsel for the Selling Shareholder.
At Closing Time, the U.S. Representatives shall have received
the favorable opinion, dated as of Closing Time, of Carter, Ledyard & Milburn,
U.S. counsel for the Selling Shareholder, in form and substance reasonably
satisfactory to counsel for the U.S. Underwriters, together with signed or
reproduced copies of such opinion for each of the other U.S. Underwriters, to
the effect set forth in Exhibit D hereto.
(f) Opinion of Bermuda Counsel for the Selling Shareholder.
At Closing Time, the U.S. Representatives shall have received
the favorable opinion, dated the Closing Time, of Appleby, Spurling & Kempe,
Bermuda counsel for the Selling Shareholder, in form and substance reasonably
satisfactory to counsel for the U.S. Underwriters, together with signed or
reproduced copies of such opinion for each of the other U.S. Underwriters, to
the effect set forth in Exhibit E hereto.
(g) Opinion of Counsel for U.S. Underwriters.
At Closing Time, the U.S. Representatives shall have received
the favorable opinion, dated as of Closing Time, of Shearman & Sterling, counsel
for the U.S. Underwriters, reasonably satisfactory to the U.S. Representatives.
In giving such opinion such counsel may rely, as to all matters governed by the
laws of jurisdictions other than the law of the State of New York and the
federal law of the United States and the General Corporation Law of the State of
Delaware, upon the opinions of counsel satisfactory to the U.S. Representatives.
Such counsel may also state that, insofar as such opinion involves factual
matters, they have relied, to the extent they deem proper, upon certificates of
officers of the Company and its subsidiaries and certificates of public
officials.
(h) Opinion of General Counsel for the Company.
At Closing Time, the U.S. representative shall have received
the favorable opinion, dated as of the Closing Time, of Edwin S. Hetherington,
General Counsel and Secretary for the Company to the effect that the execution,
delivery and performance by the Company and the Selling Shareholder of the U.S.
Purchase Agreement and the International Purchase Agreement, the consummation of
the transactions contemplated in the U.S. Purchase Agreement, the International
Purchase Agreement and the Registration Statement (including the issuance and
sale of the Securities and the use of the proceeds from the sale of the
Securities as described in the Prospectuses under the caption "Use Of Proceeds,"
but not including the proposed spin-off distribution of Common Shares by the
Selling Shareholder as described in the Prospectuses under the caption "Our
Separation from Sea Containers") and compliance by the Company and
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the Selling Shareholder with its obligations under the U.S. Purchase Agreement
and the International Purchase Agreement (A) do not and will not, whether with
or without the giving of notice or lapse of time or both, violate or constitute
a breach of, or default or Repayment Event under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Company, the Selling Shareholder or any subsidiary pursuant to [name the loans],
(except for such conflicts, breaches or defaults or liens, charges or
encumbrances that would not have a Material Adverse Effect), or (B) will not
result in any violation of any law, statute, rule, regulation, judgment, order,
writ or decree, known to us, of any, government instrumentality or court of the
United States, New York State, the United Kingdom or Bermuda having jurisdiction
over the Company, the Selling Shareholder or any subsidiary of their respective
properties, assets or operations.
(i) Officers' Certificate of the Company.
At Closing Time, there shall not have been, since the date
hereof or since the respective dates as of which information is given in the
Prospectuses, any Material Adverse Change, and the U.S. Representatives shall
have received a certificate of the President or a Vice President of the Company
and of the chief financial or chief accounting officer of the Company, dated as
of Closing Time, to the effect that (i) there has been no such Material Adverse
Change, (ii) the representations and warranties in Section 1(a) hereof and
Section 1(a) of the International Purchase Agreement are true and correct with
the same force and effect as though expressly made at and as of Closing Time,
(iii) the Company has complied in all material respects with all its covenants
in this Agreement and the International Purchase Agreement, and satisfied all
conditions hereunder and thereunder on its part to be performed or satisfied at
or prior to Closing Time, and (iv) no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceedings for that purpose
have been instituted or are pending or, to their knowledge, are contemplated by
the Commission.
(j) Officers' Certificate of the Selling Shareholder.
At Closing Time, the Representatives shall have received a
certificate of the President or any Vice President of the Selling Shareholder,
dated as of Closing Time, to the effect that (i) the representations and
warranties of the Selling Shareholder contained in Section 1(b) hereof and
Section 1(b) of the International Purchase Agreement are true and correct in all
respects with the same force and effect as though expressly made at and as of
Closing Time and (ii) the Selling Shareholder has complied in all material
respects with all its covenants in this Agreement and the International Purchase
Agreement, and satisfied all conditions hereunder and thereunder on its part to
be performed at or prior to Closing Time.
(k) Accountants' Comfort Letter.
On the date of the execution of this Agreement, the U.S.
Representatives shall have received from Deloitte & Touche LLP a letter dated
such date, in form and substance reasonably satisfactory to the U.S.
Representatives, together with copies of such letter for each of the other U.S.
Underwriters, containing statements and information of the type ordinarily
included in accountants' "comfort letters" to underwriters with respect to the
financial statements and certain financial information contained in the
Registration Statement and the Prospectuses.
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(l) Bring-down Comfort Letter.
At Closing Time, the Representatives shall have received from
Deloitte & Touche LLP a letter, dated as of Closing Time, to the effect that
they reaffirm the statements made in the letter furnished pursuant to subsection
(k) of this Section, except that the specified date referred to shall be a date
not more than three business days prior to Closing Time.
(m) Approval of Listing.
At Closing Time, the Securities shall have been approved for
listing on the New York Stock Exchange, subject only to official notice of
issuance.
(n) Purchase of Initial International Securities.
Contemporaneously with the purchase by the U.S. Underwriters
of the Initial U.S. Securities under this Agreement, the International Managers
shall have purchased the Initial International Securities under the
International Purchase Agreement.
(o) Conditions to Purchase of U.S. Option Securities.
In the event that the U.S. Underwriters exercise their option
provided in Section 2(b) hereof to purchase all or any portion of the U.S.
Option Securities, the representations and warranties of the Company and the
Selling Shareholder contained herein and the statements in any certificates
furnished by the Company, any Subsidiary and the Selling Shareholder hereunder
shall be true and correct as of each Date of Delivery and, at the relevant Date
of Delivery, the U.S. Representatives shall have received:
(i) OFFICERS' CERTIFICATE.
A certificate, dated such Date of Delivery, of the President
or a Vice President of the Company and of the chief financial or chief
accounting officer of the Company confirming that the certificate
delivered at Closing Time pursuant to Section 5(h) hereof remains true
and correct as of such Date of Delivery.
(ii) OPINIONS OF COUNSEL.
The favorable opinions of Carter, Ledyard & Milburn, Appleby
Spurling & Kempe, John T. Landry, Jr., Grimaldi Clifford Chance, and
Bulhoes Pedreira, Bulhoes Carvalho & Advogados Associados,
each in form reasonably satisfactory to counsel for the U.S.
Underwriters, dated such Date of Delivery, relating to the U.S. Option
Securities to be purchased on such Date of Delivery and otherwise to
the same effect as the opinions required by Section 5(b), (c), (d), (e)
and (f) hereof.
(iii) OPINION OF COUNSEL FOR U.S. UNDERWRITERS.
The favorable opinion of Shearman & Sterling, counsel for the
U.S. Underwriters, dated such Date of Delivery, relating to the U.S.
Option Securities to be purchased on
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such Date of Delivery and otherwise to the same effect as the opinion
required by Section 5(g) hereof.
(iv) Bring-down Comfort Letter.
A letter from Deloitte & Touche LLP in form and substance
reasonably satisfactory to the U.S. Representatives and dated such Date
of Delivery, substantially in the same form and substance as the letter
furnished to the U.S. Representatives pursuant to Section 5(l) hereof,
except that the specified date in the letter furnished pursuant to this
paragraph shall be a date not more than five days prior to such Date of
Delivery.
(p) Additional Documents.
At Closing Time and at each Date of Delivery, counsel for the
U.S. Underwriters shall have been furnished with such other documents
as they may reasonably require for the purpose of enabling them to pass
upon the issuance and sale of the Securities as herein contemplated, or
in order to evidence the accuracy of any of the representations or
warranties, or the fulfillment of any of the conditions, herein
contained; and all proceedings taken by the Company in connection with
the issuance and sale of the Securities as herein contemplated shall be
reasonably satisfactory in form and substance to the U.S.
Representatives and counsel for the U.S. Underwriters.
(Q) TERMINATION OF AGREEMENT.
If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement, or, in
the case of any condition to the purchase of U.S. Option Securities on
a Date of Delivery which is after the Closing Time, the obligations of
the several U.S. Underwriters to purchase the relevant Option
Securities, may be terminated by the U.S. Representatives by notice to
the Company at any time at or prior to Closing Time or such Date of
Delivery, as the case may be, and such termination shall be without
liability of any party to any other party except as provided in Section
4 and except that Sections 1, 6, 7 and 8 shall survive any such
termination and remain in full force and effect.
SECTION 6. INDEMNIFICATION.
(A) INDEMNIFICATION OF U.S. UNDERWRITERS AND OTHERS.
The Company and the Selling Shareholder jointly and severally
agree to indemnify and hold harmless each U.S. Underwriter and each person, if
any, who controls any U.S. Underwriter within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act to the extent and manner set forth in
clauses (i), (ii), (iii) and (iv) below.
(i) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, arising out of any untrue statement or
alleged untrue statement of a material fact contained in the
Registration Statement (or any amendment thereto), including the Rule
430A Information and the Rule 434 Information, if applicable, or the
omission or alleged omission therefrom of a material fact required to
be stated therein or
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necessary to make the statements therein not misleading or arising out
of any untrue statement or alleged untrue statement of a material fact
included in any preliminary prospectus or the Prospectuses (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;
(ii) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, arising out of (A) the violation of
any applicable laws or regulations of non-U.S. jurisdictions where
Reserved Securities have been offered and (B) any untrue statement or
alleged untrue statement of a material fact included in the supplement
or prospectus wrapper material distributed in connection with the
reservation and sale of the Reserved Securities to eligible employees
and persons having business relationship with the Company or the
omission or alleged omission therefrom of a material fact necessary to
make the statements therein, when considered in conjunction with the
Prospectuses or preliminary prospectus, not misleading;
(iii) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, to the extent of the aggregate amount
paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened,
or of any claim whatsoever based upon any such untrue statement or
omission, or in connection with any violation of the nature referred to
in Section 6(a)(ii)(A) hereof; or any such alleged untrue statement or
omission; provided that (subject to Section 6(d) below) any such
settlement is effected with the written consent of the Company and the
Selling Shareholder; and
(iv) against any and all expense whatsoever, as incurred
(including the fees and disbursements of counsel chosen by Merrill
Lynch), reasonably incurred in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or in
connection with any violation of the nature referred to in Section
6(a)(ii)(A) hereof or any such alleged untrue statement or omission, to
the extent that any such expense is not paid under (i) or (ii) above;
PROVIDED, HOWEVER, that this indemnity, as to any preliminary prospectus, shall
not inure to the benefit of any person on account of any loss, liability, claim,
damage, or expense arising from the sale of the Securities to any person by the
U.S. Underwriters if the U.S. Underwriters failed to send or give a copy of any
subsequent preliminary prospectus or the U.S. Prospectus to such person within
the time required by the 1933 Act, and the untrue statement or alleged untrue
statement or mission or alleged omission of a material fact in such preliminary
prospectus was corrected in the subsequent preliminary prospectus or the U.S.
Prospectus, unless such failure resulted from noncompliance by the Company with
Section 3(d) hereof; and PROVIDED further, that this indemnity agreement shall
not apply to any loss, liability, claim, damage or expense to the extent arising
out of any untrue statement or omission or alleged untrue statement or omission
made in reliance upon and in conformity with written information furnished to
the Company by any U.S. Underwriter through the U.S. Representatives expressly
for use in the
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Registration Statement (or any amendment thereto), including the Rule 430A
Information and the Rule 434 Information, if applicable, or any preliminary
prospectus or the U.S. Prospectus (or any amendment or supplement thereto) (the
"Furnished Information").
(b) Indemnification of the Company, the Selling Shareholder
and Others.
Each U.S. Underwriter severally agrees to indemnify and hold
harmless the Selling Shareholder, the Company, the Company's directors, each of
its officers who signed the Registration Statement, and each person, if any, who
controls the Company or the Selling Shareholder within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act against any and all loss,
liability, claim, damage and expense described in the indemnity contained in
subsection (a) of this Section, as incurred, but only with respect to untrue
statements or omissions, or alleged untrue statements or omissions, made in the
Registration Statement (or any amendment thereto), including the Rule 430A
Information and the Rule 434 Information, if applicable, or any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto) in
reliance upon and in conformity with the Furnished Information.
(c) Actions against Parties; Notification.
Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not relieve such indemnifying party from
any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it
may have otherwise than on account of this indemnity agreement. In the case of
parties indemnified pursuant to Section 6(a) above, counsel to the indemnified
parties shall be selected by Merrill Lynch and, in the case of parties
indemnified pursuant to Section 6(b) above, counsel to the indemnified parties
shall be selected by the Company and the Selling Shareholder. An indemnifying
party may participate at its own expense in the defense of any such action;
PROVIDED, HOWEVER, that counsel to the indemnifying party shall not (except with
the consent of the indemnified party) also be counsel to the indemnified party.
In no event shall the indemnifying parties be liable for fees and expenses of
more than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances. No indemnifying party shall,
without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 6 or Section
7 hereof (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not include
a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.
(d) Settlement without Consent if Failure to Reimburse.
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If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 6(a)(iii) effected without its
written consent if (i) such settlement is entered into more than 45 days after
receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement.
(e) Indemnification for Reserved Securities.
In connection with the offer and sale of the Reserved
Securities, the Company agrees, promptly upon a request in writing, to indemnify
and hold harmless the Underwriters from and against any and all losses,
liabilities, claims, damages and expenses incurred by them as a result of the
failure of eligible employees and persons having business relationships with the
Company to pay for and accept delivery of Reserved Securities which, by the end
of the first business day following the date of this Agreement, were subject to
a properly confirmed agreement to purchase.
(f) Other Agreements with Respect to Indemnification.
The provisions of this Section shall not affect any agreement
between the Company and the Selling Shareholder with respect to indemnification.
SECTION 7. CONTRIBUTION.
If the indemnification provided for in Section 6 hereof is for
any reason unavailable to or insufficient to hold harmless an indemnified party
in respect of any losses, liabilities, claims, damages or expenses referred to
therein, then each indemnifying party shall contribute to the aggregate amount
of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company and the Selling
Shareholder on the one hand and the U.S. Underwriters on the other hand from the
offering of the Securities pursuant to this Agreement or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such proportion as
is appropriate to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of the Company and the Selling Shareholder
on the one hand and of the U.S. Underwriters on the other hand in connection
with the statements or omissions, or in connection with any violation of the
nature referred to in Section 6(a)(ii)(A) hereof, which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.
The relative benefits received by the Company and the Selling
Shareholder on the one hand and the U.S. Underwriters on the other hand in
connection with the offering of the U.S. 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 U.S. Securities pursuant to this Agreement
(before deducting expenses) received by the Company and the Selling Shareholder
and the total underwriting discount received by the U.S. Underwriters, in each
case as set forth on the cover of
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the U.S. Prospectus (or, if Rule 434 is used, the corresponding location on the
Term Sheet), bear to the aggregate initial public offering price of the U.S.
Securities as set forth on such cover.
The relative fault of the Company and the Selling Shareholder
on the one hand and the U.S. Underwriters on the other hand shall be determined
by reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material
fact relates to information supplied by the Company or the Selling Shareholder
or by the U.S. Underwriters and the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or omission
or any violation of the nature referred to in section 6(a)(ii)(A) hereof.
The Company and the Selling Shareholder and the U.S.
Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section were determined by pro rata allocation (even if the
U.S. Underwriters were treated as one entity for such purpose) or by any other
method of allocation which does not take account of the equitable considerations
referred to above in this Section. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to
above in this Section shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue or alleged untrue statement or omission or alleged
omission.
Notwithstanding the provisions of this Section, no U.S.
Underwriter shall be required to contribute any amount in excess of the amount
by which the total price at which the U.S. Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages which such U.S. Underwriter has otherwise been required to pay by reason
of any such untrue or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section, each person, if any, who
controls a U.S. Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as such
U.S. Underwriter, and each director of the Company, each officer of the Company
who signed the Registration Statement, and each person, if any, who controls the
Company or the Selling Shareholder within the meaning of Section 15 of the 1933
Act or Section 20 of the 1934 Act shall have the same rights to contribution as
the Company or the Selling Shareholder, as the case may be. The U.S.
Underwriters' respective obligations to contribute pursuant to this Section are
several in proportion to the number of Initial U.S. Securities set forth
opposite their respective names in Schedule A hereto, and not joint.
The provisions of this Section shall not affect any agreement
between the Company and the Selling Shareholder with respect to contribution.
SECTION 8. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO
SURVIVE DELIVERY.
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All representations, warranties and agreements contained in
this Agreement or in certificates of officers of the Company or any of its
Subsidiaries or the Selling Shareholder submitted pursuant hereto shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of any U.S. Underwriter or controlling person, or by or on behalf
of the Company or the Selling Shareholder, and shall survive delivery of the
Securities to the U.S. Underwriters.
SECTION 9. TERMINATION OF AGREEMENT.
(a) Termination; General.
The U.S. Representatives may terminate this Agreement, by
notice to the Company and the Selling Shareholder, at any time at or prior to
Closing Time (i) if there has been, since the time of execution of this
Agreement or since the respective dates as of which information is given in the
U.S. Prospectus, any Material Adverse Change, or (ii) if there has occurred any
material adverse change in the financial markets in the United States or the
international financial markets, any outbreak of hostilities or escalation
thereof or other calamity or crisis or any change or development involving a
prospective change in national or international political, financial or economic
conditions, in each case the effect of which is such as to make it, in the
reasonable judgment of the U.S. Representatives, impracticable to market the
Securities or to enforce contracts for the sale of the Securities, or (iii) if
trading in any securities of the Company has been suspended or materially
limited by the Commission or the New York Stock Exchange, or if trading
generally on the American Stock Exchange or the New York Stock Exchange or in
the Nasdaq National Market has been suspended or materially limited, or minimum
or maximum prices for trading have been fixed, or maximum ranges for prices have
been required, by any of said exchanges or by such system or by order of the
Commission, the NASD or any other governmental authority, or (iv) if a banking
moratorium has been declared by either Federal or New York authorities.
(B) LIABILITIES.
If this Agreement is terminated pursuant to this Section, such
termination shall be without liability of any party to any other party except as
provided in Section 4 hereof, and provided further that Sections 1, 6, 7 and 8
shall survive such termination and remain in full force and effect.
SECTION 10. DEFAULT BY ONE OR MORE OF THE U.S. UNDERWRITERS.
If one or more of the U.S. Underwriters shall fail at Closing
Time or a Date of Delivery to purchase the Securities which it or they are
obligated to purchase under this Agreement (the "Defaulted Securities"), the
U.S. Representatives shall have the right, within 24 hours thereafter, to make
arrangements for one or more of the non-defaulting U.S. Underwriters, or any
other underwriters, to purchase all, but not less than all, of the Defaulted
Securities in such amounts as may be agreed upon and upon the terms herein set
forth; if, however, the U.S. Representatives shall not have completed such
arrangements within such 24-hour period, then:
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(a) if the number of Defaulted Securities does not exceed 10%
of the number of U.S. Securities to be purchased on such date, the
non-defaulting U.S. Underwriters shall be obligated, each severally and not
jointly, to purchase the full amount thereof in the proportions that their
respective underwriting obligations hereunder bear to the underwriting
obligations of all non-defaulting U.S. Underwriters, or
(b) if the number of Defaulted Securities exceeds 10% of the
number of U.S. Securities to be purchased on such date, this Agreement or, with
respect to any Date of Delivery which occurs after Closing Time, the obligation
of the U.S. Underwriters to purchase and of the Selling Shareholder to sell the
Option Securities to be purchased and sold on such Date of Delivery, shall
terminate without liability on the part of any non-defaulting U.S. Underwriter.
No action taken pursuant to this Section shall relieve any
defaulting U.S. Underwriter from liability in respect of its default.
In the event of any such default which does not result in a
termination of this Agreement or, in the case of a Date of Delivery which is
after Closing Time, which does not result in a termination of the obligation of
the U.S. Underwriters to purchase and the Company to sell the relevant U.S.
Option Securities, as the case may be, either (i) the U.S. Representatives or
(ii) the Company and the Selling Shareholder shall have the right to postpone
Closing Time or the relevant Date of Delivery, as the case may be, for a period
not exceeding seven days in order to effect any required changes in the
Registration Statement or Prospectuses or in any other documents or
arrangements. As used herein, the term "U.S. Underwriter" includes any person
substituted for a U.S. Underwriter under this Section.
SECTION 11. DEFAULT BY THE SELLING SHAREHOLDER OR THE COMPANY.
(a) If the Selling Shareholder shall fail at Closing Time or
at a Date of Delivery to sell and deliver the number of Securities which the
Selling Shareholder is obligated to sell hereunder, then the Underwriters may,
at the option of the U.S. Representatives, by notice from the U.S.
Representatives to the Company, either (a) terminate this Agreement without any
liability on the part of any non-defaulting party except that the provisions of
Sections 1, 4, 6, 7 and 8 shall remain in full force and effect or (b) elect to
purchase the Securities which the Company has agreed to sell hereunder. No
action taken pursuant to this Section shall relieve the Selling Shareholder so
defaulting from liability in respect of such default.
In the event of a default by the Selling Shareholder as
referred to in this Section, each of the U.S. Representatives and the Company
shall have the right to postpone Closing Time or the relevant Date of Delivery
for a period not exceeding seven days in order to effect any required change in
the Registration Statement or Prospectus or in any other documents or
arrangements.
(b) If the Company shall fail at Closing Time or at a Date of
Delivery to sell the number of Securities that it is obligated to sell
hereunder, then this Agreement shall terminate without any liability on the part
of any non-defaulting party; PROVIDED, HOWEVER, that the provisions of Sections
1, 4, 6, 7 and 8 shall remain in full force and effect. No action taken pursuant
to this Section shall relieve the Company from liability in respect of such
default.
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SECTION 12. NOTICES.
All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by
fax or any other standard form of telecommunication. Notices to the U.S.
Underwriters shall be directed to the U.S. Representatives c/o Merrill Lynch at
North Tower, World Financial Center, New York, New York 1028, Attention: General
Counsel, fax 212-449-3207. Notice to the Company and the Selling Shareholder
shall be directed to Edwin S. Hetherington, Corporate Secretary, at 20 Upper
Ground, London SEI 9PF, England. fax 011-44-20-7805-5916.
SECTION 13. PARTIES.
This Agreement shall inure to the benefit of and be binding
upon the U.S. Underwriters, the Company and the Selling Shareholder and their
respective successors. Nothing expressed or mentioned in this Agreement is
intended or shall be construed to give any person, firm or corporation, other
than the U.S. Underwriters, the Company and the Selling Shareholder and their
respective successors, and the controlling persons and officers and directors
referred to in Sections 6 and 7 and their heirs and legal representatives, any
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision herein contained. This Agreement and all conditions and
provisions hereof are intended to be for the sole and exclusive benefit of the
U.S. Underwriters, the Company and the Selling Sharehodler and their respective
successors, and said controlling persons and officers and directors and their
heirs and legal representatives, and for the benefit of no other person, firm or
corporation. No purchaser of Securities from any U.S. Underwriter shall be
deemed to be a successor by reason merely of such purchase.
SECTION 14. GOVERNING LAW AND TIME.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. SPECIFIED TIMES OF DAY REFER
TO NEW YORK CITY TIME.
SECTION 15. EFFECT OF HEADINGS.
The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.
32
<PAGE>
If the foregoing is in accordance with your understanding of
our agreement, please sign and return to the Company and the Selling
Shareholder a counterpart hereof, whereupon this instrument, along with
all counterparts, will become a binding agreement among the U.S.
Underwriters, the Company and the Selling Shareholder in accordance
with its terms.
Very truly yours,
ORIENT-EXPRESS HOTELS LTD.
By:________________________________
Name:
Title:
SEA CONTAINERS LTD.
By:________________________________
Name:
Title
CONFIRMED AND ACCEPTED,
as of the date first above written:
MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
LAZARD FRERES & CO. LLC
SALOMON SMITH BARNEY INC.
BANC OF AMERICA SECURITIES LLC
By: MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By:________________________________
Authorized Signatory
For themselves and as U.S. Representatives of the other U.S. Underwriters named
in Schedule A hereto.
<PAGE>
Schedule I
Subsidiaries for purposes of this Agreement
<TABLE>
<CAPTION>
Property Owned
--------------
<S> <C>
Orient-Express Hotels Inc. (Delaware).................................................
Windsor Court Hotel L.P. (Delaware)................................Windsor Court Hotel
Charleston Place Holdings Inc. (Delaware)......................Charleston Place Hotel*
Hotel Cipriani S.p.A. (Italy)...........................................Cipriani Hotel
Companhia Hoteis Palace (Brazil)......................................Copacabana Hotel
`21' Club Inc. (New York)....................................................`21' Club
Inn at Perry Cabin Corp. (Maryland).................................Inn at Perry Cabin
Keswick Hall Inc. (Virginia)..............................................Keswick Hall
Societe Hoteliere de Baie Longue S.A. (France)..............................La Samanna
Societe de la Cite S.A. (France)......................................Hotel de la Cite
Island Hotel (Madeira) Ltd. (U.K.).......................................Reid's Palace
Grampiam Investimentos Hoteleiro S.A. (Portugal)..................Hotel Quinta do Lago
Hotelapa Investimentos Hoteleiro S.A. (Portugal)...........................Lapa Palace
SGE Societa Gestione Esercizi S.P.A. (Italy)...........................Hotel Splendido
SGE Societa Gestione Esercizi S.P.A. (Italy)..........................Splendido Mare**
Alberghiera Fiesolana S.P.A. (Italy).................................Villa San Michele
Byblos Srl (Italy)........................................................Hotel Caruso
Venice Simplon-Orient-Express Ltd. (U.K.)..........Venice Simplon-Orient-Express Train
Northern Belle Ltd. (U.K.)..........................................Nothern Bell Train
Mount Nelson Hotel Ltd. (U.K.)......................................Mount Nelson Hotel
80 Westcliff Pty. Ltd. (South Africa)..................................Westcliff Hotel
Gametrackers Botswana Pty. Ltd. (Botswana)..............................Gametrackers**
Observatory Hotel Pty. Ltd. (Australia)..............................Observatory Hotel
Lilianfels Hotel Pty. Ltd. (Australia)...............................Lilianfels Hotels
Vessel Holdings 2 Ltd. (Bermuda)......................................Road to Mandalay
</TABLE>
* 19.9% interest
** leased
Sch. 1
<PAGE>
SCHEDULE A
<TABLE>
<CAPTION>
Name of U.S. Underwriter Number of
Initial U.S.
Securities
----------
<S> <C>
Merrill Lynch, Pierce, Fenner & Smith
Incorporated......................................
Lazard Freres & Co. LLC ..........................................
Salomon Smith Barney Inc..........................................
Banc of America Securities LLC....................................
Total............................................................. 8,000,000
---------
</TABLE>
Sch. A-1
<PAGE>
SCHEDULE B
Selling Shareholder
<TABLE>
<CAPTION>
Number of Initial U.s. Maximum Number of U.s.
Securities to be Sold Option Securities to be Sold
--------------------- ----------------------------
<S> <C> <C>
Sea Containers Ltd. 4,000,000 1,200,000
</TABLE>
Sch. B-1
<PAGE>
SCHEDULE C
Orient-Express Hotels, Ltd.
8,000,000 Class A Common Shares
(Par value $ 0.01 each,)
The initial public offering price per share, for the
Securities, determined as provided in said Section 2, shall be $o.
The purchase price per share, for the U.S. Securities to be
paid by the several U.S. Underwriters shall be $o, being an amount
equal to the initial public offering price set forth above less $o per
share; provided that the purchase price per share for any U.S. Option
Securities purchased upon the exercise of the over-allotment option
described in Section 2(b) shall be reduced by an amount per share equal
to any dividends or distributions declared by the Company and payable
on the Initial U.S. Securities but not payable on the U.S. Option
Securities.
Sch. C-1
<PAGE>
Exhibit A
FORM OF OPINION OF COMPANY'S COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
(i) The Registration Statement, [including any Rule 462(b)
Registration Statement,] has been declared effective under the 1933 Act; any
required filing of the Prospectuses pursuant to Rule 424(b) has been made in the
manner and within the time period required by Rule 424(b); and, to the best of
our knowledge, no stop order suspending the effectiveness of the Registration
Statement [or any Rule 462(b) Registration Statement] has been issued under the
1933 Act and no proceedings for that purpose have been instituted or are pending
or threatened by the Commission.
(ii) The Registration Statement, [including any Rule 462(b)
Registration Statement,] the Rule 430A Information [and the Rule 434
Information, as applicable,] the Prospectuses and each amendment or supplement
to the Registration Statement and the Prospectuses as of their respective
effective or issue dates (other than the financial statements and supporting
schedule and other financial data included therein or omitted therefrom, as to
which we express no opinion) complied as to form in all material respects with
the requirements of the 1933 Act and the 1933 Act Regulations.
[(iii) If Rule 434 has been relied upon, the Prospectuses were
not "materially different", as such term is used in Rule 434, from the
prospectuses included in the Registration Statement at the time it became
effective.]
(iv) The form of certificate used to evidence the Common
Shares complies in all material respects with the requirements of the New York
Stock Exchange.
(v) To the best of our knowledge, except as described in the
Registration Statement and the Prospectuses, there is not pending or threatened
any action, suit, proceeding, inquiry or investigation, to which the Company or
any of its subsidiaries is a party, or to which the property of the Company or
any if its subsidiaries is subject, before or brought by any court or
governmental agency or body within the United States, which might reasonably be
expected to result in a Material Adverse Effect, or which might reasonably be
expected to affect materially and adversely the properties or assets of the
Company and its subsidiaries considered as one enterprise or the consummation of
the transactions contemplated in the U.S. Purchase Agreement and International
Purchase Agreement or the performance by the Company of its obligations
thereunder.
(vi) The information in the Prospectuses under "Material Tax
Considerations--Material U.S. Federal Income Tax Considerations," and "Our
Separation from Sea Containers" and in the Registration Statement in the last
two paragraphs of Item 14, to the extent that it constitutes matters of United
States Federal or New York State law, summaries of legal matters or legal
conclusions, has been reviewed by us and is correct in all material respects.
A-1
<PAGE>
(vii) To the best of our knowledge, there are no provisions of
United States Federal or New York State statutes or regulations, or any
provision of the Delaware General Corporation Law, that is required to be
described in the Prospectuses and is not described.
(viii) All descriptions in the Registration Statement of
contracts and other documents to which the Company or any of its subsidiaries
are a party are accurate summaries in all material respects; to the best of our
knowledge, there are no franchises, contracts, indentures, mortgages, loan
agreements, notes, leases or other instruments required to be described or
referred to in the Registration Statement or to be filed as exhibits thereto,
other than those described or referred to therein or filed or incorporated by
reference as exhibits thereto.
(ix) To the best of our knowledge, no default by the Company
or any of the subsidiaries exists in the due performance or observance of any
material obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, loan agreement, note, lease or other agreement or
instrument that is described or referred to in the Registration Statement or the
Prospectuses or filed or incorporated by reference as an exhibit to the
Registration Statement.
(x) No filing with, or authorization, approval, consent,
license, order, registration, qualification or decree of, any United States
Federal or New York State court or governmental authority or agency (other than
those obtained under the 1933 Act and the 1933 Act Regulations, or those which
may be required under the securities or blue sky laws of New York, as to which
we express no opinion) is necessary or required in connection with the due
authorization, execution and delivery by the Company of the U.S. Purchase
Agreement and the International Purchase Agreement or for the offering,
issuance, sale or delivery of the Securities to be sold by the Company.
(xi) The execution, delivery and performance by the Company of
the U.S. Purchase Agreement and the International Purchase Agreement, the
consummation of the transactions contemplated in the U.S. Purchase Agreement,
the International Purchase Agreement and the Registration Statement (including
the issuance and sale of the Securities and the use of the proceeds from the
sale of the Securities as described in the Prospectuses under the caption "Use
Of Proceeds," but not including the proposed spin-off distribution of Common
Shares by the Selling Shareholder as described in the Prospectuses under the
caption "Our Separation from Sea Containers") and compliance by the Company with
its obligations under the U.S. Purchase Agreement and the International Purchase
Agreement (A) do not and will not, whether with or without the giving of notice
or lapse of time or both, constitute a violation or breach of, or default or
Repayment Event (as defined in Section 1(a)(x) of the Purchase Agreements)
under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any subsidiary
pursuant to, any contract, indenture, mortgage, deed of trust, loan or credit
agreement, note, lease or any other agreement or instrument which is listed in
Schedule A hereto or described in or referred to in the Registration Statement
or the Prospectuses or filed or incorporated by reference as an exhibit to the
Registration Statement, and to which the Company or any Subsidiary is a party or
by which it or any of them may be bound, or to which any of the property or
assets of the Company or any Subsidiary is subject (except for such conflicts,
breaches or defaults or liens, charges or encumbrances that would not have a
Material Adverse Effect), or (B) will not result in any violation by the Company
or any Subsidiary of the Delaware Corporation Law or of any
A-2
<PAGE>
applicable law, statute, rule, regulation, judgment, order, writ or decree,
known to us, of any government, government instrumentality or court of the
United States of America or the State of New York having jurisdiction over the
Company or any subsidiary of their respective properties, assets or operations.
(xii) To the best of our knowledge, there are no persons with
registration rights or other similar rights to have any securities of the
Company registered pursuant to the Registration Statement or otherwise
registered by the Company under the 1933 Act.
We have participated in conferences with officers and other
representatives of the Company, representatives of the independent public
accountants for the Company, the U.S., Representatives and the Lead Managers and
counsel for the U.S. Representatives and the Lead Managers in connection with
the preparation of the Registration Statement and the Prospectuses, and have
considered the matters required to be stated therein and the statements
contained therein and, although we have not independently verified the accuracy,
completeness or fairness of such statements (except as indicated in paragraphs
(vi) and (viii) above), we advise you that, on the basis of the foregoing, no
facts have come to our attention that cause us to believe that the Registration
Statement or any amendment thereto, including the Rule 430A Information and Rule
434 Information (if applicable), (except for the financial statements, notes and
schedule and other financial and statistical data derived from the financial
statements, included therein or omitted therefrom, as to which we make no
statement), at the time such Registration Statement or any such amendment became
effective, contained an untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary to make the
statements therein not misleading, or that the Prospectuses or any amendment or
supplement thereto (except for the financial statements, notes and schedule and
other financial and statistical data derived from the financial statements,
included therein or omitted therefrom, as to which we make no statement), at the
time the Prospectuses were issued, at the time any such amended or supplemented
prospectus was issued or at the date of this opinion, included or includes an
untrue statement of a material fact or omitted 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.
Our opinion set forth in paragraph (xi) hereof is based upon the
Company's and the Selling Shareholder's representations that they intend to
apply the proceeds received from the sale of the Securities in a manner
permitted or required by the covenants of the indentures, credit agreements or
other instruments listed in Schedule A that restrict the use of the proceeds
received from asset sales.
No opinion is expressed herein as to any laws other than the laws of
the United States of America and the State of New York and the General
Corporation Law of the State of Delaware. With respect to the indentures, credit
agreements and other instruments listed in Schedule A hereto, we point out that
a number of such indentures, credit agreements or instruments are governed by
laws other than the laws of the State of New York, but that in rendering the
opinion set forth in paragraph (xi) above, we have assumed that each such
indenture, credit agreement or instrument was governed by the laws of the State
of New York
A-3
<PAGE>
[In rendering this opinion, such counsel may rely as to matters of
fact, to the extent they deem proper, on certificates of responsible officers of
the Company, the Selling Shareholder and public officials. Such opinion shall
not state that it is to be governed or qualified by, or that it is otherwise
subject to, any treatise, written policy or other document relating to legal
opinions, including, without limitation, the Legal Opinion Accord of the ABA
Section of Business Law (1991).]
A-4
<PAGE>
Schedule A to Exhibit A
[List of Credit Agreements]
Exhibit B
FORM OF OPINION OF COMPANY'S BERMUDA COUNSEL
TO BE DELIVERED PURSUANT TO SECTION 5(c)
7 August 2000
Merrill Lynch & Co;
Lazard Freres & Co. LLC;
Salomon Smith Barney;
Bank of America Securities LLC
(collectively the "U.S. Underwriters")
The International Managers named in the Second Schedule to this opinion
Dear Sirs
ORIENT-EXPRESS HOTELS LTD (THE "COMPANY")
-----------------------------------------
We have acted as legal counsel in Bermuda to the Company and this opinion as to
Bermuda law is addressed to you with respect to the issue and sale by the
Company to the U.S. Underwriters and International Managers of newly issued
class A common shares, par value $0.01 each (the "Common Shares") of the Company
pursuant to the terms of the U.S. Purchase Agreement and the International
Purchase Agreement. Opinion paragraph (i) is addressed to you further in respect
to Vessel Holdings 2 Ltd. (the "Subsidiary") referred to in the terms of the
U.S. Purchase Agreement and the International Purchase Agreement. This opinion
is delivered pursuant to section 5(c) of the U.S. Purchase Agreement and section
5(c) of the International Purchase Agreement in connection with the following
documents:
(i) the Registration Statement;
(ii) the U.S. Purchase Agreement;
(iii) the International Purchase Agreement; and
(iv) the Prospectus.
<PAGE>
(The U.S. Purchase Agreement and International Purchase Agreement together
referred to as the "PURCHASE Agreements". The U.S. Underwriters and
International Managers together referred to as the "UNDERWRITERS". All Common
Shares the subject of the Registration Statement and Prospectus and sold by the
Company to the Underwriters pursuant to the terms of the Purchase Agreements are
collectively referred to herein as the "SECURITIES");
For the purposes of this opinion we have examined and relied upon the documents
listed (which in some cases, are also defined in the First Schedule to this
opinion) (the "Documents"). Unless otherwise defined herein, capitalised terms
have the meanings assigned to them in the PURCHASE AGREEMENTS.
Assumptions
In stating our opinion we have assumed:-
(a) the authenticity, accuracy and completeness of all Documents submitted
to us as originals and the conformity to authentic original Documents
of all Documents submitted to us as certified, conformed, notarised or
photostatic copies;
(b) the genuineness of all signatures on the Documents;
(c) the authority, capacity and power of each of the persons signing the
Documents (other than the Company in respect of the Purchase
Agreements);
(d) that any factual statements made in any of the Documents are true,
accurate and complete;
(e) that the Purchase Agreements constitute the legal, valid and binding
obligations of each of the parties thereto, other than the Company,
under the laws of its jurisdiction of incorporation or its jurisdiction
of formation;
(f) that the Purchase Agreements have been validly authorised, executed and
delivered by each of the parties thereto, other than the Company, and
the performance thereof is within the capacity and powers of each such
party thereto, and that each such party to which the Company
purportedly delivered the Purchase Agreements has actually received and
accepted delivery of such Purchase Agreements;
(g) that the Purchase Agreements will effect, and will constitute legal,
valid and binding obligations of each of the parties thereto,
enforceable in accordance with their terms, under the laws by which
they are expressed to be governed;
(h) that the Purchase Agreements are in the proper legal form to be
admissible in evidence and enforced in the courts, and in accordance
with the laws, of the jurisdiction by which they are expressed to be
governed;
Exh. B 2
<PAGE>
(i) that there are no provisions of the laws or regulations of any
jurisdiction other than Bermuda which would be contravened by the
execution or delivery of the Purchase Agreements or which would have
any implication in relation to the opinion expressed herein and that,
in so far as any obligation under, or action to be taken under, the
Purchase Agreements is required to be performed or taken in any
jurisdiction outside Bermuda, the performance of such obligation or the
taking of such action will constitute a valid and binding obligation of
each of the parties thereto under the laws of that jurisdiction and
will not be illegal by virtue of the laws of that jurisdiction;
(j) that the records that were the subject of the Company Search made on
[DATE], were complete and accurate at the time of such search and
disclosed all information which is material for the purposes of this
opinion and such information has not since such date been materially
altered;
(k) that the records that were the subject of the Litigation Search made on
[DATE] were complete and accurate at the time of such search and
disclosed all information which is material for the purposes of this
opinion and such information has not since such date been materially
altered;
(l) that the Resolutions are in full force and effect and have not been
rescinded, either in whole or in part, and accurately record the
resolutions passed by, both the Board of Directors of the Company at
board meetings which were duly convened and at which a duly constituted
quorum was present and voting throughout, Sea Containers Ltd. as sole
shareholder of the Company pursuant to unanimous adopted written
resolutions;
(m) that the Underwriters have no express or constructive knowledge of any
circumstance whereby any Director of the Company, when the Board of
Directors of the Company passed the applicable Resolutions, failed to
discharge his fiduciary duty owed to the Company and to act honestly
and in good faith with a view to the best interests of the Company;
(n) that the Company has entered into its obligations under the Purchase
Agreements in good faith for the purpose of carrying on its business
and that, at the time it did so, there were reasonable grounds for
believing that the transactions contemplated by the Purchase Agreements
would benefit the Company;
(o) that each transaction to be entered into pursuant to the Purchase
Agreements is entered into in good faith and for full value and will
not have the effect of preferring one creditor over another; and
[(p) that each of the Purchase Agreements is executed in the form of the
executed Purchase Agreements that we have examined for the purposes of
this opinion.]
Exh. B 3
<PAGE>
OPINION
Based upon and subject to the foregoing and subject to the reservations set out
below and to any matters not disclosed to us, we are of the opinion that:-
(1) Each of the Company and the Subsidiary is an exempted company duly
incorporated with limited liability, validly existing and in good
standing under the laws of Bermuda.
(2) The Company has all requisite corporate power and authority under its
Constitutional Documents to own, lease, manage and operate its
properties and to conduct its business as described in the Prospectus
and to enter into and perform its obligations under the Purchase
Agreements.
(3) The Purchase Agreements have been duly authorised, executed and
delivered by the Company and constitute valid and binding obligations
of the Company enforceable against the Company in accordance with their
respective terms.
(4) The authorized, issued and outstanding Common Shares of the Company is
as set forth in the Prospectuses in the column entitled "Actual" under
the caption "Capitalization" (except for subsequent issuances, if any,
pursuant to the Purchase Agreements or pursuant to reservations,
agreements or employee benefit plans referred to in the Prospectus or
pursuant to the exercise of convertible securities or options referred
to in the Prospectus); the issued and outstanding Common Shares of the
Company have been duly authorized and validly issued and are fully paid
and non-assessable; and none of the outstanding Common Shares of the
Company were issued in violation of any pre-emptive or other similar
rights of any security holder of the Company.
(5) The Securities have been duly authorized for issuance and sale to the
Underwriters pursuant to the terms of the Purchase Agreements, and,
when issued and delivered by the Company pursuant to the terms of the
Purchase Agreements, against payment of the consideration set forth in
the Purchase Agreements, will be validly issued and fully paid and
non-assessable and no holder of the Securities is or will be subject to
personal liability with respect to the debts or obligations of the
Company solely by reason of being such a holder.
(6) The issuance of the Securities is not subject to pre-emptive or other
similar rights afforded any security holder of the Company pursuant to
the Constitutional Documents.
(7) The form of certificate used to evidence the Common Shares complies in
all material respects with all applicable statutory requirements of
Bermuda and with any applicable requirements of the bye-laws of the
Company.
(8) Based solely on the results of the Litigation Search there is not
pending or threatened any action, suit, proceeding, inquiry or
investigation in Bermuda, to
Exh. B 4
<PAGE>
which the Company is a party, or to which the property of the Company
is subject, before or brought by any court or governmental agency or
body, in Bermuda, which could reasonably be expected to result in a
Material Adverse Effect, or which could reasonably be expected to
materially and adversely affect the properties or assets thereof or the
consummation of the transactions contemplated in the Purchase
Agreements or the performance by the Company of its obligations
thereunder
(9) The information in the Prospectus under "Description of Common Shares",
"Business--Litigation", "Material Tax Considerations--Material Bermuda
Tax Considerations" and in the Registration Statement under Items 14
and 15, to the extent that it constitutes matters of Bermuda law, or
legal conclusions with respect thereto, are accurate in all material
respects.
(10) Neither the execution, delivery or performance by the Company of the
Purchase Agreements nor the consummation of the transactions
contemplated in the Purchase Agreements and the Registration Statement
(including the issuance and sale of the Securities and the use of
proceeds from the sale of the Securities as described in the Prospectus
under the caption "Use of Proceeds") will conflict with or result in a
breach or default of (i) the Company's Constitutional Documents, or
(ii) any law or regulation of Bermuda.
(11) No consent, approval, authorisation or order of, or registration or
qualification or filing of or with, any Bermuda governmental agency or
Bermuda governmental body or, to the best of our knowledge, any Bermuda
court is required for the performance by the Company of its obligations
under the Purchase Agreements, except the consent of the Bermuda
Monetary Authority to the issue by the Company of the Securities (which
consent has been obtained) and the filing of the Prospectus with the
Registrar of Companies in Bermuda.
(12) The choice of the laws of the State of New York to govern the Purchase
Agreements is a proper, valid and binding choice of law and will be
recognized and applied by the Courts of Bermuda, assuming that such
choice of law is a valid and binding choice of law under the laws of
the State of New York, and the point is specifically pleaded.
(13) There are no Bermuda capital, stamp or other issuance taxes or duties
payable in Bermuda in connection with the issuance, sale and delivery
of the Securities to the Underwriters, or the consummation of any of
the other transactions contemplated in the Purchase Agreements.
(i) Reservations
We have the following reservations:-
Exh. B 5
<PAGE>
(a) The term "enforceable" as used in this opinion means that there is a
way of ensuring that each party performs an agreement or that there are
remedies available for breach.
(b) We express no opinion as to the availability of equitable remedies such
as specific performance or injunctive relief, or as to any matters
which are within the discretion of the courts of Bermuda in respect of
any obligations of the Company as set out in the Purchase Agreements.
Further, we express no opinion as to the validity or binding effect of
any waiver of or obligation to waive either any provision of law
(whether substantive or procedural) or any right or remedy.
(b) Enforcement of the obligations of the Company under the Purchase
Agreements may be limited or affected by applicable laws from time to
time in effect relating to bankruptcy, insolvency or liquidation or any
other laws or other legal procedures affecting generally the
enforcement of creditors' rights.
(d) Enforcement of the obligations of the Company may be the subject of a
statutory limitation of the time within which such proceedings may be
brought.
(e) We express no opinion as to any law other than Bermuda law and none of
the opinions expressed herein relates to compliance with or matters
governed by the laws of any jurisdiction except Bermuda. This opinion
is limited to Bermuda law as applied by the Courts of Bermuda at the
date hereof.
(f) Where an obligation is to be performed in a jurisdiction other than
Bermuda, the courts of Bermuda may refuse to enforce it to the extent
that such performance would be illegal under the laws of, or contrary
to public policy of, such other jurisdiction.
(g) We express no opinion as to the validity, binding effect or
enforceability of any provision incorporated into the Purchase
Agreements by reference to a law other than that of Bermuda, or as to
the availability in Bermuda of remedies which are available in other
jurisdictions.
(h) Where a person is vested with discretion or may determine a matter in
his or its opinion, such discretion may have to be exercised reasonably
or such an opinion may have to be based on reasonable grounds.
(i) Any provision in the Purchase Agreements that certain calculations or
certificates will be conclusive and binding will not be effective if
such calculations or certificates are fraudulent or erroneous on their
face and will not necessarily prevent juridical enquiries into the
merits of any claim by an aggrieved party.
Exh. B 6
<PAGE>
(j) We express no opinion as to the validity or binding effect of any
provision of the Purchase Agreements which provides for the severance
of illegal, invalid or unenforceable provisions.
(m) A Bermuda court may refuse to give effect to any provisions of the
Purchase Agreements in respect of costs of unsuccessful litigation
brought before the Bermuda court or where that court has itself made an
order for costs.
(n) Searches of the Register of Companies at the office of the Registrar of
Companies and of the Supreme Court Causes Book at the Registry of the
Supreme Court are not conclusive and it should be noted that the
Register of Companies and the Supreme Court Causes Book do not reveal:
(i) whether an application to the Supreme Court for a winding up
petition or for the appointment of a receiver or manager has
been prepared but not yet been presented or has been presented
but does not appear in the Causes Book at the date and time
the Search is concluded;
(ii) whether any arbitration or administrative proceedings are
pending or whether any proceedings are threatened, or whether
any arbitrator has been appointed;
(iii) details of matters which have been lodged for filing or
registration which as a matter of general practice of the
Registrar of Companies would have or should have been
disclosed on the public file but have not actually been
registered or to the extent that they have been registered
have not been disclosed or appear in the public records at the
date and time the search is concluded;
(iv) details of matters which should have been lodged for
registration but have not been lodged for registration at the
date the search is concluded; or
(v) whether a receiver or manager has been appointed privately
pursuant to the provisions of a debenture or other security,
unless notice of the fact has been entered in the register of
charges in accordance with the provisions of the Companies Act
1981 (Bermuda).
(o) In order to issue this opinion we have carried out the Company Search
on [DATE]and have not enquired as to whether there has been any change
since that date.
(p) In order to issue this opinion we have carried out the Litigation
Search on [DATE] and have not enquired as to whether there has been any
change since that date.
Exh. B 7
<PAGE>
[(q) In paragraph (1) above, the term "good standing" means that the Company
has received a Certificate of Compliance from the Registrar of
Companies.
(r) Any reference in this opinion to shares being "non-assessable" shall
mean, in relation to fully-paid shares of the Company and subject to
any contrary provision in any agreement in writing between the Company
and the holder of shares, that: no shareholder shall be obliged to
contribute further amounts to the capital of the Company, either in
order to complete payment for their shares, to satisfy claims of
creditors of the Company, or otherwise; and no shareholder shall be
bound by an alteration of the Memorandum of Association or Bye-Laws of
the company after the date on which he became a shareholder, if and so
far as the alteration requires him to take, or subscribe for additional
shares, or in any way increases his liability to contribute to the
share capital of, or otherwise to pay money to, the Company.
DISCLOSURE
This opinion is addressed to you in connection with the issue
and sale of the Securities to the Underwriters pursuant to the terms of the
Purchase Agreements and is not to be made available to, or relied on by any
other person or entity, or for any other purpose, without our prior written
consent.
This opinion is addressed to you solely for the benefit of the
Underwriters and is neither to be transmitted to any other person, nor relied
upon by any other person or for any other purpose nor quoted or referred to in
any public document nor filed with any governmental agency or person, without
our prior written consent, except as may be required by law or regulatory
authority. Further, this opinion speaks as of its date and is strictly limited
to the matters stated herein and we assume no obligation to review or update
this opinion if applicable laws or the existing facts or circumstances should
change.
This opinion is governed by and is to be construed in
accordance with Bermuda law. It is given on the basis that it will not give rise
to any legal proceedings with respect thereto in any jurisdiction other than
Bermuda.
Yours faithfully,
APPLEBY, SPURLING & KEMPE
Exh. B 8
<PAGE>
(a) FIRST SCHEDULE
1. copy of a Registration Statement on Form S-1, Registration No.333-12030
dated [3 JULY], 2000 with respect to the Securities (the "REGISTRATION
STATEMENT")
2. copy of the preliminary prospectus, issued by the Company dated [3
JULY], 2000 issued in connection with the offering of the Securities
(the "PROSPECTUS").
3. [Faxed copy of] executed U.S. Purchase Agreements dated [], among the
Company, Sea Containers Ltd. and each U.S. Underwriter (the "U.S.
PURCHASE AGREEMENTS").
4. [Faxed copy of] executed International Purchase Agreements, dated [],
among the Company, Sea Containers Ltd. and each International Manager
(the "INTERNATIONAL PURCHASE AGREEMENT").
5. a copy of the permission dated 31 MAY, 2000 given by the Bermuda
Monetary Authority under the Exchange Control Act (1972) and related
regulations for the proposed offer and sale of the Securities and
subsequent free transferability of such shares ;
6. a copy of the records of the proceedings of the Board of Directors of
the Company dated 19 May, 2000 and 25 May, 2000 and of the unanimous
written resolutions of the Sole Shareholder of the Company adopted on
19 May, 2000 and 25 May, 2000 relating to the transactions pursuant to
which the Securities have been or are to be issued (the "RESOLUTIONS"),
including subscription and purchase of the Securities pursuant to the
terms of the Underwriting Agreements, the filing of the Registration
Statement and the Listing Application together with agreements and
corporate records relating thereto;.
7. The entries and filings shown in respect of the Company on the file of
the Company maintained in the Register of Companies at office of the
Registrar of Companies in Hamilton, Bermuda, as revealed by a search on
[DATE] (THE "COMPANY SEARCH").
8. The entries and filings shown in the Supreme Court Causes Book
maintained at the Registry of the Supreme Court in Hamilton, Bermuda,
as revealed by a search on [DATE] in respect of the Company (the
"LITIGATION SEARCH").
9. Certified copies of the Certificate of Incorporation, Memorandum of
Association and Bye-laws adopted [DATE] for the Company (collectively
referred to as the "CONSTITUTIONAL DOCUMENTS").
10. A CERTIFICATE OF COMPLIANCE, dated [DATE] issued by the Ministry of
Finance in respect of the Company.
<PAGE>
11. A certified copy of the "FOREIGN EXCHANGE LETTER", dated [DATE], issued
by the Bermuda Monetary Authority, Hamilton Bermuda in relation to the
Company.
12. CERTIFICATE OF INCUMBENCY in respect of the Company dated [DATE].
13. A certified copy of the "TAX ASSURANCE", dated [DATE], issued by the
Registrar of Companies for the Minister of Finance in relation to the
Company
14. A certified copy of the REGISTER OF SHAREHOLDERS in respect of the
Company.
15. A certified copy of the REGISTER OF DIRECTORS AND OFFICERS in respect
of the Company.
16. [An OFFICERS CERTIFICATE (the "Certificate") dated [DATE] and signed by
[NAME OF OFFICER] [a Director/the [TITLE]]. of the Company. (iF
NECESSARY)]
2
<PAGE>
SECOND SCHEDULE
U. S. UNDERWRITERS
Merrill Lynch & Co;
Lazard Freres & Co. LLC;
Salomon Smith Barney; and
Bank of America Securities LLC
International Managers
<PAGE>
Exhibit C-1
August , 2000
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Lazard Freres & Co. LLC
Salomon Smith Barney
Banc of America Securities LLC
as U.S. Representatives of the several U.S. Underwriters
c/o Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
North Tower
World Financial Center
New York, NY 10281
Re: ORIENT-EXPRESS HOTELS LTD.
CLASS A COMMON SHARES
Ladies and Gentlemen:
I am Vice President of and Counsel to Orient-Express Properties Inc. ("OEPI"), a
Delaware company which is a subsidiary of Orient-Express Hotels Ltd. ("OEHL"), a
Bermuda company which has executed and delivered to you a U.S. Purchase
Agreement and an International Purchase Agreement, each dated August __, 2000
(collectively referred to herein as the "Purchase Agreement") relating to the
purchase and sale of the Class A common shares of OEHL. Unless otherwise defined
herein, all terms defined in the Purchase Agreement are used herein with the
meanings ascribed to them in the Purchase Agreement.
I am also an officer of and counsel to the following subsidiaries of OEPI:
Windsor Court Hotel Inc. ("WCH Inc."), a Delaware corporation which is the
general partner of Windsor Court Hotel Limited Partnership ("WCH LP"), a
Delaware limited partnership, '21' Club, Inc. ("'21' Club"), a New York
corporation, and Charleston Place Holdings Inc. ("CPH Inc."), a Delaware
corporation. OEPI, WCH Inc., WCH LP, '21' Club and CPH Inc. are collectively
referred to herein as the "Companies" and individually as a "Company". In my
capacity as an officer of and counsel to the Companies I have examined the
Purchase Agreement, the Registration Statement and the Prospectuses and all such
other agreements, certificates and statements of governmental officials and of
officers and other representatives of the Companies and other documents as I
have deemed necessary to confirm the basis for this opinion. In such
examination, I have assumed the genuiness of all signatures, the authenticity of
all documents submitted to me as originals and the conformity with the originals
(and the authenticity of such originals) of all documents submitted to me as
copies.
Exh. C-1
<PAGE>
Based upon and subject to the foregoing and to the qualifications expressed
below, I advise you that in my opinion:
(i) Each Company other than '21' Club and WCH LP has been duly
incorporated and is a validly existing corporation in good standing under
Delaware law; '21' Club has been duly incorporated and is in good standing under
New York law; and WCH LP has been duly organized and is a validly existing
limited partnership in good standing under Delaware law.
(ii) All of the issued and outstanding capital stock of each
Company which is a corporation has been duly authorized and validly issued, is
fully paid and non-assessable and, is owned by its immediate parent free and
clear of any security interest, mortgage, pledge, lien, encumbrance or equity
specifically binding on OEHL, except that all of the outstanding shares of `21'
Club are pledged to The Bank of Nova Scotia as agent pursuant to the Credit
Agreement between `21' Club and The Bank of Nova Scotia as agent dated March 15,
1996. None of the outstanding capital stock of any Company which is a
corporation was issued in violation of the preemptive or similar rights of any
securityholder of such Company.
(iii) Each Company has corporate or other legal power and
authority to own, lease, manage and operate its properties and to conduct its
business as described in the Prospectuses.
(iv) Each Company is duly qualified as a foreign corporation
or partnership to transact business and is in good standing in each jurisdiction
in which such qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except where the failure so to
qualify or to be in good standing would not result in a Material Adverse Effect.
(v) To the best of my knowledge, there is not pending or
threatened any action, suit, proceeding, inquiry or investigation, to which any
Company is a party, or to which the property of any Company is subject, before
or brought by any court or governmental agency or body, domestic or foreign,
which might reasonably be expected to result in a Material Adverse Effect, or
which might reasonably be expected to materially and adversely affect the
properties or assets thereof.
(vi) All descriptions in the Registration Statement of
contracts and other documents to which any Company is a party are accurate in
all material respects.
(vii) To the best of my knowledge, no Company is in violation
of its charter or by-laws and no default by any Company exists in the due
performance or observance of any material obligation, agreement, covenant or
condition contained in any contract, indenture, mortgage, loan agreement, note,
lease or other agreement or instrument that is described or referred to in the
Registration Statement or the Prospectuses or filed or incorporated by reference
as an exhibit to the Registration Statement.
(viii) The consummation of the transactions contemplated in
the Registration Statement (including the issuance and sale of the Securities,
and the use of the proceeds from the sale of the Securities as described in the
Prospectuses under the caption "Use Of Proceeds") do
Exh. C-2
<PAGE>
not and will not, whether with or without the giving of notice or lapse of time
or both, conflict with or constitute a breach of, or default or Repayment Event
under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of any Company pursuant to, any
contract, indenture, mortgage, deed of trust, loan or credit agreement, note,
lease or any other agreement or instrument, known to me, to which a Company is a
party or by which it may be bound, or to which any of the property or assets of
a Company is subject (except for such conflicts, breaches or defaults or liens,
charges or encumbrances that would not have a Material Adverse Effect), nor will
such action result in any violation of the provisions of the charter or byelaws
of any Company, or any applicable law, statute, rule, regulation, judgment,
order, writ or decree, known to me, of any government, government
instrumentality or court, domestic or foreign, having jurisdiction over any
Company or any of their respective properties, assets or operations.
This opinion is limited to the laws of the State of New York, the corporate and
limited partnership laws of the State of Delaware, and the federal laws of the
United States.
This opinion is limited to the matters expressly stated herein, and no opinion
is implied or may be inferred beyond the matters expressly stated herein. This
opinion may not be used or relied upon by or published or communicated to any
person or entity, other than you and your counsel, for any purpose whatsoever
without my prior written consent in each instance; except, however, that his
opinion may be shown to those persons entitled to examine your books and records
by laws applicable to you.
Sincerely,
John T. Landry, Jr.
Vice President and Counsel
Exh. C-3
<PAGE>
Exhibit C-2
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Lazard Freres & Co. LLC
Salomon Smith Barney
Banc of America Securities LLC
as U.S. Representatives of the several U.S. Underwriters
c/o Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
North Tower
World Financial Center
New York, NY 10281
Re: ORIENT-EXPRESS HOTELS LTD.
CLASS A COMMON SHARES
Ladies and Gentlemen:
In our capacity as local counsel for Orient-Express Hotels Ltd. ("OEHL") in
relation to the matters concerning its Italian subsidiary Hotel Cipriani S.p.A.
of Venice, Italy (hereinafter called the "Company"), we are rendering the
present opinion pursuant to the provisions of section 5(c) of a U.S. Purchase
Agreement executed and delivered to you by OEHL, dated ______ August 2000 and
relating to the purchase and sale of the Class A common shares of OEHL.
We have examined a copy of the said Purchase Agreement, of the Registration
Statement and of the Prospectus and all such other agreements, certificates and
statements of governmental officials and officers and other representatives of
the Company and other documents as we have deemed necessary to confirm the basis
for this opinion. In such examination, we have assumed the genuineness of all
signatures, the authenticity of all documents submitted to us as originals and
the conformity with the originals (and the authenticity of such originals) of
all documents submitted to us as copies.
Based upon and subject to the foregoing and to the qualifications expressed
below, we advise you that in our opinion:
(i) The Company has been duly incorporated and is a validly existing
company in good standing under Italian law.
(ii) The Company has corporate power and authority to own, lease, manage and
operate its properties and to conduct its business as described in the
Prospectuses.
Exh. C-4
<PAGE>
(iii) The Company is duly qualified as a foreign corporation to transact
business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except where the
failure so to qualify or to be in good standing would not result in a
Material Adverse Effect.
(iv) To the best of our knowledge, there is not pending or threatened any
action, suit, proceeding, inquiry or investigation in Italy, to which
the Company or any subsidiary is a party, or to which the property of
the Company or any subsidiary is subject, before or brought by any
court or governmental agency or body, domestic or foreign, which might
reasonably be expected to result in a Material Adverse Effect, or which
might reasonably be expected to materially and adversely affect the
properties or assets thereof.
(v) All descriptions in the Registration Statement of contracts and other
documents to which the Company or its subsidiaries are a party are
accurate in all material respects;
(vi) To the best of our knowledge, neither the Company nor any subsidiary is
in violation of its charter or bye-laws and no default by the Company
or any subsidiary exists in the due performance or observance of any
material obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, lease or other
agreement or instrument that is described or referred to in the
Registration Statement or the Prospectuses or filed or incorporated by
reference as an exhibit to the Registration Statement.
(vii) The consummation of the transactions contemplated in the Registration
Statement (including the issuance and sale of the Securities, and the
use of the proceeds from the sale of the Securities as described in the
Prospectuses under the caption "Use Of Proceeds") do not and will not,
whether with or without the giving of notice or lapse of time or both,
conflict with or constitute a breach of, or default or repayment event
under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any
subsidiary pursuant to, any contract, indenture, mortgage, deed of
trust, loan or credit agreement, note, lease or any other agreement or
instrument, known to us, to which the Company or any subsidiary is a
party or by which it or any of them may be bound, or to which any of
the property or assets of the Company or any subsidiary is subject
(except for such conflicts, breaches or defaults or liens, charges or
encumbrances that would not have a Material Adverse Effect), nor will
such action result in any violation of the provisions of the charter or
bye- laws of the Company or any subsidiary, or any applicable law,
statute, rule, regulation, judgment, order, writ or decree, known to
us, of any government, government instrumentality or court, domestic or
foreign, having jurisdiction over the Company or any subsidiary or any
of their respective properties, assets or operations.
The Company is incorporated in Italy. Accordingly, this opinion is limited to
the laws of Italy.
Exh. C-5
<PAGE>
This opinion is limited to the matters expressly stated herein, and no opinion
is implied or may be inferred beyond the matters expressly stated herein. This
opinion may not be used or relied upon by or published or communicated to any
person or entity, other than you and your counsel, for any purpose whatsoever
without my prior written consent in each instance; except, however, that this
opinion may be shown to those persons entitled to examine your books and records
by laws applicable to you.
Sincerely,
AVV. CARMELO ALESSIO
Exh. C-6
<PAGE>
Exhibit C-3
Rio de Janeiro, August , 2000
To MERRIL LYNCH & CO.
Merril Lynch, Pierce, Fenner & Smith Incorporated
Lazard Freres & Co. LLC
Salomon Smith Barney
Banc of America Securities LLC
as U.S. Representatives of the several U.S. Underwriters
c/o Merril Lynch & CO
Merril Lynch, Pierce, Fenner & Smith Incorporated
North Tower, World Financial Center
New York, NY 10281
Estados Unidos da America do Norte
Re.: ORIENT-EXPRESS HOTELS LTD.
CLASS A COMMON SHARES
Ladies and Gentlemen,
We are counsel to Companhia Hoteis Palace ("Company"), a Brazilian corporation,
which is a subsidiary of Sea Containers Ltd. ("SCL"), who, together with its
wholly-owned subsidiary Orient Express Hotels Ltd. ("OEHL"), a Bermuda company,
have executed and delivered to you a U.S. Purchase Agreement and an
International Purchase Agreement, each dated August , 2000 (collectively
referred to herein as the "Purchase Agreement") relating to the purchase and
sale of the Class A common shares of OEHL. Unless otherwise defined herein, all
terms defined in the Purchase Agreement are used herein with the meanings
ascribed to them in the Purchase Agreement.
In connection with this opinion, we have examined the Purchase Agreement, the
Registration Statement and the Prospectuses as well as the bye laws and all such
other agreements, certificates and statements of governmental officials and of
officers and other representatives of the Company and other documents as we have
deemed necessary to confirm the basis for this opinion. In such examination, we
have assumed the genuineness of all signatures, the authenticity of all
documents submitted to us as originals and the conformity with the originals
(and the authenticity of such originals) of all documents submitted to us as
copies..
The opinions herein expressed are limited to questions arising under the
constitution and the laws of the Federative Republic of Brazil and the laws of
its political subdivisions and we do not purport to express any opinion on any
question arising under the laws of any other jurisdiction.
Based upon and subject to the foregoing and to matters not disclosed to us, we
advise you that, in our opinion:
(i) The Company has been duly incorporated and is a validly existing
company in good standing under Brazilian law.
(ii) The Company has corporate power and authority to own, lease,
manage and operate its properties and to conduct its business as described in
the Prospectuses.
Exh. C-7
<PAGE>
(iii) The Company is duly qualified as a foreign corporation to
transact business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of
property or the conduct of business, except where the failure so to qualify or
to be in good standing would not result in a Material Adverse Effect.
(iv) To the best of my knowledge, there is not pending or threatened
any action, suit, proceeding, inquiry or investigation in Brazil, to which the
Company is a party, or to which the property of the Company is subject, before
or brought by any court or governmental agency or body, domestic or foreign,
which might reasonably be expected to result in a Material Adverse Effect, or
which might reasonably be expected to materially and adversely affect the
properties or assets thereof.
(v) All descriptions in the Registration Statement of contracts and
other documents to which the Company is a part are accurate in all material
respects;
(vi) To the best of our knowledge, the Company is not in violation of
its charter or bye-laws and no default by the Company exists in the due
performance or observance of any material obligation, agreement, covenant or
condition contained in any contract, indenture, mortgage, loan agreement, note,
lease or other agreement or instrument that is described or referred to in the
Registration Statement or the Prospectuses or filed or incorporated by reference
as an exhibit to the Registration Statement.
(vii) The consummation of the transactions contemplated in the
Registration Statement (including the issuance and sale of the Securities, and
the use of the proceeds from the sale of the Securities as described in the
Prospectuses under the caption "Use Of Proceeds") do not and will not, whether
with or without the giving of notice or lapse of time or both, conflict with or
constitute a breach of, or default or repayment event under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company pursuant to, any contract, indenture, mortgage, deed of
trust, loan or credit agreement, note, lease or any other agreement or
instrument, known tome, to which the Company is a party or by which it may be
bound, or to which any of the property or assets of the Company is subject
(except for such conflicts, breaches or defaults or liens, charges or
encumbrances that would not have a Material Adverse Effect), nor will such
action result in any violation of the provisions of the [charter or bye-laws] of
the Company, or any applicable law, statute, rule, regulation, judgment, order,
writ or decree, known to us, of any government, government instrumentality or
court, domestic or foreign, having jurisdiction over the Company or any of its
properties, assets or operations.
This opinion is limited to the matters expressly stated
herein, and no opinion is implied or may be inferred beyond the matters
expressly stade herein. This opinion may not be used or relied upon by or
published or communicated to any person or entity, other than you and your
counsel, for any purpose whatsoever without my prior written consent in each
instance; except, however, that his opinion may be shown to those persons
entitled to examine your books and records by laws applicable to you. We
expressly disclaim any duty to update this letter in the future in the event
there are any changes in relevant fact or law that may change or otherwise
affect any of the opinions expressed herein.
Very truly yours,
Bulhoes Pedreira, Bulhoes Carvalho & Advogados Associados
Exh. C-8
<PAGE>
Exhibit D
FORM OF OPINION OF THE SELLING SHAREHOLDER'S
COUNSEL TO BE DELIVERED PURSUANT TO
SECTION 5(e)
(i) To the best of our knowledge, except as described in the
Registration Statement and the Prospectuses, there is not pending or threatened
any action, suit, proceeding, inquiry or investigation, to which the Selling
Shareholder is a party or to which the property of the Selling Shareholder is
subject, before or brought by any court or governmental agency or body within
the United States, which might reasonably be expected to result in a Material
Adverse Effect, or which might reasonably be expected to affect materially and
adversely the consummation of the transactions contemplated in the U.S. Purchase
Agreement and the International Purchase Agreement, or the performance by the
Selling Shareholder of its obligations thereunder.
(ii) No filing with, or authorization, approval, consent, license,
order, registration, qualification or decree of, any United States Federal or
New York State court or governmental authority or agency (other than those
obtained under the 1933 Act and the 1933 Act Regulations, which have been
obtained, or those which may be required under the securities or blue sky laws
of New York, as to which we express no opinion) is necessary or required in
connection with the due authorization, execution and delivery by the Selling
Shareholder of the U.S. Purchase Agreement and the International Purchase
Agreement or for the offering, issuance, sale or delivery of the Securities
being sold by the Selling Shareholder.
(iii) The execution, delivery and performance by the Selling
Shareholder of the U.S. Purchase Agreement and the International Purchase
Agreement, the consummation of the transactions contemplated in the U.S.
Purchase Agreement, the International Purchase Agreement and the Registration
Statement (not including the proposed spin-off distribution of Common Shares by
the Selling Shareholder as described in the Prospectuses under the caption "Our
Separation from Sea Containers") and compliance by the Selling Shareholder with
its obligations under the U.S. Purchase Agreement and the International Purchase
Agreement (A) do not and will not, whether with or without the giving of notice
or passage of time or both, constitute a violation or breach of, or default
under, or result in the creation or imposition of any lien, charge or
encumbrance upon the Securities to be sold by the Selling Shareholder or any
property or assets of the Selling Shareholder, its significant subsidiaries (as
such term is defined in Rule 1-02(w) of Regulation S-X) or GE SeaCo SRL pursuant
to, any contract, indenture, mortgage, deed of trust, loan or credit agreement,
note, lease or any other agreement or instrument which is listed in Schedule A
hereto, or is described or referred to in the Registration Statement or the
Prospectuses or filed or incorporated by reference as an exhibit to the
Registration Statement (except for such liens, charges or encumbrances that
would not result in a Selling Shareholder Material Adverse Effect), and (B) will
not result in any violation by the Selling Shareholder of any applicable United
States federal or New York State law, statute, rule, regulation, judgment,
order, writ or decree, known to us of any United States federal or New York
State government
Exh. D 1
<PAGE>
instrumentality or court having jurisdiction over the Selling Shareholder or any
of its properties, assets or operations.
(iii) Assuming that (i) the certificate or certificates representing
the Securities to be sold by the Selling Shareholder pursuant to the U.S.
Purchase Agreement and the International Purchase Agreement have been
effectively indorsed in blank in accordance with NYUCC Article 8 and (ii) the
Underwriters are without notice of any adverse claim to the Securities, then,
upon the Underwriters' acquiring possession of such certificate or certificates
for the Securities and paying the purchase price therefor pursuant to the U.S.
Purchase Agreement and the International Purchase Agreement, each Underwriter
will be a "protected purchaser" of the Securities to be purchased by it (within
the meaning of Section 8-303 of the NYUCC) and will acquire such Securities
(including, without limitation, all rights that the Selling Shareholder has the
power to transfer in such Securities) free of any adverse claim.
Exh. D 2
<PAGE>
Exhibit E
FORM OF OPINION OF THE SELLING SHAREHOLDER'S
BERMUDA COUNSEL TO BE DELIVERED PURSUANT TO SECTION 5(f)
7 August 2000
Merrill Lynch & Co;
Lazard Freres & Co. LLC;
Salomon Smith Barney;
Bank of America Securities LLC
(collectively the "U.S. Underwriters")
The International Managers named in the Second Schedule to this opinion
Dear Sirs
SEA CONTAINERS LTD. (THE "SELLING SHAREHOLDER")
We have acted as legal counsel in Bermuda to the Selling Shareholder and this
opinion as to Bermuda law is addressed to you with respect to the sale by the
Selling Shareholder, of previously issued class A common shares, par value $0.01
each (the "Common Shares") of Orient-Express Hotels Ltd. (the "Company") owned
by the Selling Shareholder to the U.S. Underwriters and International Managers
pursuant to the terms of the U.S. Purchase Agreement and the International
Purchase Agreement. This opinion is delivered pursuant to section 5(f) of the
U.S. Purchase Agreement and section 5(f) of the International Purchase Agreement
in connection with the following documents:
(i) THE REGISTRATION STATEMENT;
(ii) THE U.S. PURCHASE AGREEMENT;
(iii) THE INTERNATIONAL PURCHASE AGREEMENT; AND
(iv) THE PROSPECTUS.
(The U.S. Purchase Agreement and International Purchase Agreement
together referred to as the "PURCHASE AGREEMENTS". The U.S.
Underwriters and International Managers together referred to as the
"Underwriters". All Common Shares sold by the Selling Shareholder to
the Underwriters pursuant to the terms of the Purchase Agreements are
collectively referred to herein as the "SECURITIES");
For the purposes of this opinion we have examined and relied upon the documents
listed (which in some cases, are also defined in the First Schedule to this
opinion) (the
Exh. E 1
<PAGE>
"Documents"). Unless otherwise defined herein, capitalised terms have the
meanings assigned to them in the PURCHASE AGREEMENTS.
Assumptions
In stating our opinion we have assumed:-
(a) the authenticity, accuracy and completeness of all Documents submitted
to us as originals and the conformity to authentic original Documents
of all Documents submitted to us as certified, conformed, notarised or
photostatic copies;
(d) the genuineness of all signatures on the Documents;
(c) the authority, capacity and power of each of the persons signing the
Documents (other than the Selling Shareholder in respect of the
Purchase Agreements);
(d) that any factual statements made in any of the Documents are true,
accurate and complete;
(p) that the Purchase Agreements constitute the legal, valid and binding
obligations of each of the parties thereto, other than the Selling
Shareholder, under the laws of its jurisdiction of incorporation or its
jurisdiction of formation;
(q) that the Purchase Agreements have been validly authorised, executed and
delivered by each of the parties thereto, other than the Selling
Shareholder, and the performance thereof is within the capacity and
powers of each such party thereto, and that each such party to which
the Selling Shareholder purportedly delivered the Purchase Agreements
has actually received and accepted delivery of such Purchase
Agreements;
(r) that the Purchase Agreements will effect, and will constitute legal,
valid and binding obligations of each of the parties thereto,
enforceable in accordance with their terms, under the laws by which
they are expressed to be governed;
(s) that the Purchase Agreements are in the proper legal form to be
admissible in evidence and enforced in the courts, and in accordance
with the laws, of the jurisdiction by which they are expressed to be
governed;
(t) that there are no provisions of the laws or regulations of any
jurisdiction other than Bermuda which would be contravened by the
execution or delivery of the Purchase Agreements or which would have
any implication in relation to the opinion expressed herein and that,
in so far as any obligation under, or action to be taken under, the
Purchase Agreements is required to be performed or taken in any
jurisdiction outside Bermuda, the performance of such obligation or the
taking of such action will constitute a valid and binding obligation of
each of the
Exh. E 2
<PAGE>
parties thereto under the laws of that jurisdiction and will not be
illegal by virtue of the laws of that jurisdiction;
(u) that the records that were the subject of the Company Search made on
[DATE], were complete and accurate at the time of such search and
disclosed all information which is material for the purposes of this
opinion and such information has not since such date been materially
altered;
(v) that the records that were the subject of the Litigation Search made on
[DATE] were complete and accurate at the time of such search and
disclosed all information which is material for the purposes of this
opinion and such information has not since such date been materially
altered;
(w) that the Resolutions are in full force and effect and have not been
rescinded, either in whole or in part, accurately record the
resolutions passed by the Board of Directors of the Selling Shareholder
in a meeting which was duly convened and at which a duly constituted
quorum was present and voting throughout;
(x) that the Underwriters have no express or constructive knowledge of any
circumstance whereby any Director of the Selling Shareholder, when the
Board of Directors of the Selling Shareholder passed the Resolutions,
failed to discharge his fiduciary duty owed to the Selling Shareholder
and to act honestly and in good faith with a view to the best interests
of the Selling Shareholder;
(y) that the Selling Shareholder has entered into its obligations under the
Purchase Agreements in good faith for the purpose of carrying on its
business and that, at the time it did so, there were reasonable grounds
for believing that the transactions contemplated by the Purchase
Agreements would benefit the Selling Shareholder;
(z) that each transaction to be entered into pursuant to the Purchase
Agreements is entered into in good faith and for full value and will
not have the effect of preferring one creditor over another; and
[(p) that each of the Purchase Agreements is executed in the form of the
executed Purchase Agreements that we have examined for the purposes of
this opinion.]
OPINION
Based upon and subject to the foregoing and subject to the reservations set out
below and to any matters not disclosed to us, we are of the opinion that:-
(1) The Selling Shareholder is an exempted company duly incorporated with
limited liability, validly existing and in good standing under the laws
of Bermuda.
Exh. E 3
<PAGE>
(2) The Purchase Agreements have been duly authorised, executed and
delivered by the Selling Shareholder and constitute valid and binding
obligations of the Selling Shareholder enforceable against the Selling
Shareholder in accordance with their respective terms.
(3) The Securities have been duly authorized for sale and delivery to the
Underwriters pursuant to the terms of the Purchase Agreements, and,
when sold and delivered by the Selling Shareholder pursuant to the
terms of the Purchase Agreements, against payment of the consideration
set forth in the Purchase Agreements, will be validly issued, fully
paid and non-assessable and no holder of the Securities is or will be
subject to personal liability with respect to the debts or obligations
of the Company solely by reason of being such a holder.
(9) Based solely on the results of the Litigation Search there is not
pending or threatened any action, suit, proceeding, inquiry or
investigation in Bermuda, to which the Selling Shareholder is a party,
or to which the property of the Selling Shareholder is subject, before
or brought by any court or governmental agency or body, in Bermuda,
which could reasonably be expected to result in a Material Adverse
Effect, or which could reasonably be expected to materially and
adversely affect the properties or assets thereof or the consummation
of the transactions contemplated in the Purchase Agreements or the
performance by the Selling Shareholder of its obligations thereunder.
(10) Neither the execution, delivery or performance by the Selling
Shareholder of the Purchase Agreements nor the consummation of the
transactions contemplated in the Purchase Agreements and the
Registration Statement (including the sale of the Securities) will
conflict with or result in a breach or default of (i) the Selling
Shareholder's Constitutional Documents, or (ii) any law or regulation
of Bermuda.
Exh. E 4
<PAGE>
(6) No consent, approval, authorisation or order of, or registration or
qualification or filing of or with, any Bermuda governmental agency or
Bermuda governmental body or, to the best of our knowledge, any Bermuda
court is required for the performance by the Selling Shareholder of its
obligations under the Purchase Agreements, except the consent of the
Bermuda Monetary Authority to the transfer by the Selling Shareholder
of the Securities to the Underwriters (which consent has been
obtained).
(7) The choice of the laws of the State of New York to govern the Purchase
Agreements is a proper, valid and binding choice of law and will be
recognized and applied by the Courts of Bermuda, assuming that such
choice of law is a valid and binding choice of law under the laws of
the State of New York, and the point is specifically pleaded.
(8) There are no Bermuda capital, stamp or other issuance taxes or duties
payable in Bermuda in connection with the transfer, sale and delivery
of the Securities to the Underwriters, or the consummation of any of
the other transactions contemplated in the Purchase Agreements.
(ii) Reservations
We have the following reservations:-
(a) The term "enforceable" as used in this opinion means that there is a
way of ensuring that each party performs an agreement or that there are
remedies available for breach.
(b) We express no opinion as to the availability of equitable remedies such
as specific performance or injunctive relief, or as to any matters
which are within the discretion of the courts of Bermuda in respect of
any obligations of the Selling Shareholder as set out in the Purchase
Agreements. Further, we express no opinion as to the validity or
binding effect of any waiver of or obligation to waive either any
provision of law (whether substantive or procedural) or any right or
remedy.
(d) Enforcement of the obligations of the Selling Shareholder under the
Purchase Agreements may be limited or affected by applicable laws from
time to time in
Exh. E 5
<PAGE>
effect relating to bankruptcy, insolvency or liquidation or any other
laws or other legal procedures affecting generally the enforcement of
creditors' rights.
(d) Enforcement of the obligations of the Selling Shareholder may be the
subject of a statutory limitation of the time within which such
proceedings may be brought.
(e) We express no opinion as to any law other than Bermuda law and none of
the opinions expressed herein relates to compliance with or matters
governed by the laws of any jurisdiction except Bermuda. This opinion
is limited to Bermuda law as applied by the Courts of Bermuda at the
date hereof.
(f) Where an obligation is to be performed in a jurisdiction other than
Bermuda, the courts of Bermuda may refuse to enforce it to the extent
that such performance would be illegal under the laws of, or contrary
to public policy of, such other jurisdiction.
(g) We express no opinion as to the validity, binding effect or
enforceability of any provision incorporated into the Purchase
Agreements by reference to a law other than that of Bermuda, or as to
the availability in Bermuda of remedies which are available in other
jurisdictions.
(h) Where a person is vested with discretion or may determine a matter in
his or its opinion, such discretion may have to be exercised reasonably
or such an opinion may have to be based on reasonable grounds.
(i) Any provision in the Purchase Agreements that certain calculations or
certificates will be conclusive and binding will not be effective if
such calculations or certificates are fraudulent or erroneous on their
face and will not necessarily prevent juridical enquiries into the
merits of any claim by an aggrieved party.
(j) We express no opinion as to the validity or binding effect of any
provision of the Purchase Agreements which provides for the severance
of illegal, invalid or unenforceable provisions.
(m) A Bermuda court may refuse to give effect to any provisions of the
Purchase Agreements in respect of costs of unsuccessful litigation
brought before the Bermuda court or where that court has itself made an
order for costs.
(n) Searches of the Register of Companies at the office of the Registrar of
Companies and of the Supreme Court Causes Book at the Registry of the
Supreme Court are not conclusive and it should be noted that the
Register of Companies and the Supreme Court Causes Book do not reveal:
(i) whether an application to the Supreme Court for a winding
up petition or for the appointment of a receiver or manager has been
prepared but not
Exh. E 6
<PAGE>
yet been presented or has been presented but does not appear in the
Causes Book at the date and time the search is concluded;
(ii) whether any arbitration or administrative proceedings are
pending or whether any proceedings are threatened, or whether any
arbitrator has been appointed;
(iii) details of matters which have been lodged for filing or
registration which as a matter of general practice of the Registrar of
Companies would have or should have been disclosed on the public file
but have not actually been registered or to the extent that they have
been registered have not been disclosed or appear in the public records
at the date and time the search is concluded;
(v) details of matters which should have been lodged for
registration but have not been lodged for registration at the date the
search is concluded; or
(v) whether a receiver or manager has been appointed privately
pursuant to the provisions of a debenture or other security, unless
notice of the fact has been entered in the register of charges in
accordance with the provisions of the Act.
(o) In order to issue this opinion we have carried out the Company Search
on [DATE]and have not enquired as to whether there has been any change
since that date.
(p) In order to issue this opinion we have carried out the Litigation
Search on [DATE] and have not enquired as to whether there has been any
change since that date.
[(q) In paragraph (1) above, the term "good standing" means that the Selling
Shareholder has received a Certificate of Compliance from the Registrar
of Companies.
(r) Any reference in this opinion to shares being "non-assessable" shall
mean, in relation to fully-paid shares of the Company and subject to
any contrary provision in any agreement in writing between the Company
and the holder of shares, that: no shareholder shall be obliged to
contribute further amounts to the capital of the Company, either in
order to complete payment for their shares, to satisfy claims of
creditors of the Company, or otherwise; and no shareholder shall be
bound by an alteration of the Memorandum of Association or Bye-Laws of
the Company after the date on which he became a shareholder, if and so
far as the alteration requires him to take, or subscribe for additional
shares, or in any
Exh. E 7
<PAGE>
way increases his liability to contribute to the share capital of, or
otherwise to pay money to, the Company.
DISCLOSURE
This opinion is addressed to you in connection with the issue
and sale of the Securities to the Underwriters pursuant to the terms of the
Purchase Agreements and is not to be made available to, or relied on by any
other person or entity, or for any other purpose, without our prior written
consent.
This opinion is addressed to you solely for the benefit of the
Underwriters and is neither to be transmitted to any other person, nor relied
upon by any other person or for any other purpose nor quoted or referred to in
any public document nor filed with any governmental agency or person, without
our prior written consent, except as may be required by law or regulatory
authority. Further, this opinion speaks as of its date and is strictly limited
to the matters stated herein and we assume no obligation to review or update
this opinion if applicable laws or the existing facts or circumstances should
change.
This opinion is governed by and is to be construed in accordance with Bermuda
law. It is given on the basis that it will not give rise to any legal
proceedings with respect thereto in any jurisdiction other than Bermuda.
Yours faithfully,
APPLEBY, SPURLING & KEMPE
Exh. E 8
<PAGE>
FIRST SCHEDULE
17. copy of a Registration Statement on Form S-1, Registration No.333-12030
dated [3 JULY], 2000 with respect to the Securities (the "REGISTRATION
STATEMENT")
18. copy of the preliminary prospectus, issued by the Company dated [3
JULY], 2000 issued in connection with the offering of the Securities
(the "PROSPECTUS").
19. [Faxed copy of] executed U.S. Purchase Agreements dated [], among the
Selling Shareholder, the Company, and each U.S. Underwriter (the "U.S.
PURCHASE AGREEMENTS").
20. [Faxed copy of] executed International Purchase Agreements, dated [],
among the Selling Shareholder, the Company and each International
Manager (the "INTERNATIONAL PURCHASE AGREEMENT").
5 a copy of the permission dated 31 MAY, 2000 given by the Bermuda
Monetary Authority under the Exchange Control Act (1972) and related
regulations for the proposed offer and sale of the IPO Shares and the
Selling Shareholders Shares and subsequent free transferability of such
shares ;
6. Certified copy of the Minutes of the Meeting of the Board of Directors
of the Selling Shareholder held on [DATE] (the "RESOLUTIONS").
7. The entries and filings shown in respect of the Selling Shareholder on
the file of the Selling Shareholder maintained in the Register of
Companies at office of the Registrar of Companies in Hamilton, Bermuda,
as revealed by a search on [DATE] (THE "COMPANY SEARCH").
8. The entries and filings shown in the Supreme Court Causes Book
maintained at the Registry of the Supreme Court in Hamilton, Bermuda,
as revealed by a search on [DATE] in respect of the Selling Shareholder
(the "LITIGATION SEARCH").
9. Certified copies of the Certificate of Incorporation, Memorandum of
Association and Bye-laws adopted [DATE] for the Selling Shareholder
(collectively referred to as the "CONSTITUTIONAL DOCUMENTS").
10. A CERTIFICATE OF COMPLIANCE, dated [DATE] issued by the Ministry of
Finance in respect of the Selling Shareholder.
<PAGE>
11. A certified copy of the "FOREIGN EXCHANGE LETTER", dated [DATE], issued
by the Bermuda Monetary Authority, Hamilton Bermuda in relation to the
Selling Shareholder.
12. CERTIFICATE OF INCUMBENCY in respect of the Selling Shareholder dated
[DATE].
13. A certified copy of the "TAX ASSURANCE", dated [DATE], issued by the
Registrar of Companies for the Minister of Finance in relation to the
Selling Shareholder.
14. A certified copy of the REGISTER OF SHAREHOLDERS in respect of the
Selling Shareholder.
15. A certified copy of the REGISTER OF DIRECTORS AND OFFICERS in respect
of the Selling Shareholder.
16. An OFFICERS CERTIFICATE (the "Certificate") dated [DATE] and signed by
[NAME OF OFFICER] [a Director/the [TITLE]]. of the Selling Shareholder.
(iF NECESSARY)
2
<PAGE>
SECOND SCHEDULE
U.S.UNDERWRITERS
Merrill Lynch & Co;
Lazard Freres & Co. LLC;
Salomon Smith Barney; and
Bank of America Securities LLC
International Managers
[TO BE PROVIDED BY SHEARMAN & STERLING]
<PAGE>
TABLE OF CONTENTS
Page
----
SECTION 1. Representations and Warranties......................................3
(a) Representations and Warranties by the Company..........................3
(b) Representations and Warranties by the Selling Shareholder.............12
(c) Officer's Certificates................................................14
SECTION 2. Sale and Delivery to U.S. Underwriters; Closing....................14
(a) Initial Securities....................................................14
(b) Option Securities.....................................................14
(c) Payment...............................................................15
(d) Denominations; Registration...........................................16
SECTION 3. Covenants of the Company...........................................16
(a) Compliance with Securities Regulations and Commission Requests........16
(b) Filing of Amendments..................................................16
(c) Delivery of Registration Statements...................................17
(d) Delivery of Prospectuses..............................................17
(e) Continued Compliance with Securities Laws.............................17
(f) Rule 158..............................................................18
(g) Use of Proceeds.......................................................18
(h) Listing...............................................................18
(i) Restriction on Sale of Securities.....................................18
(j) Reporting Requirements................................................19
(k) Compliance with NASD Rules............................................19
(l) Compliance with Rule 463..............................................19
SECTION 4. Payment of Expenses................................................20
(a) Expenses..............................................................20
(b) Additional Expenses of the Selling Shareholder........................20
(c) Termination of Agreement..............................................20
(d) Allocation of Expenses................................................20
SECTION 5. Conditions of U.S. Underwriters'Obligations........................21
(a) Effectiveness of Registration Statement...............................21
(b) Opinion of U.S. Counsel for Company...................................21
(c) Opinion of Bermuda Counsel for Company................................21
(d) Opinions of Local Counsel for the Company.............................21
(e) Opinion of U.S. Counsel for the Selling Shareholder...................22
(f) Opinion of Bermuda Counsel for the Selling Shareholder................22
(g) Opinion of Counsel for U.S. Underwriters..............................22
(h) Opinion of General Counsel for the Company............................22
(i) Officers'Certificate of the Company...................................23
(j) Officers'Certificate of the Selling Shareholder.......................23
i
<PAGE>
(k) Accountants'Comfort Letter............................................23
(l) Bring-down Comfort Letter.............................................23
(m) Approval of Listing...................................................24
(n) Purchase of Initial International Securities..........................24
(o) Conditions to Purchase of U.S. Option Securities......................24
(p) Additional Documents..................................................25
(q) Termination of Agreement..............................................25
SECTION 6. Indemnification....................................................25
(a) Indemnification of U.S. Underwriters and Others.......................25
(b) Indemnification of the Company, the Selling Shareholder and Others....27
(c) Actions against Parties; Notification.................................27
(d) Settlement without Consent if Failure to Reimburse....................27
(e) Indemnification for Reserved Securities...............................28
(f) Other Agreements with Respect to Indemnification......................28
SECTION 7. Contribution.......................................................28
SECTION 8. Representations, Warranties and Agreements to Survive Delivery.....29
SECTION 9. Termination of Agreement...........................................30
(a) Termination; General..................................................30
(b) Liabilities...........................................................30
SECTION 10. Default by One or More of the U.S. Underwriters...................30
SECTION 11. Default by the Selling Shareholder or the Company.................31
SECTION 12. Notices...........................................................31
SECTION 13. Parties...........................................................32
SECTION 14. GOVERNING LAW AND TIME............................................32
SECTION 15. Effect of Headings................................................32
ii
<PAGE>
EXHIBITS
Exhibit A - Form of Opinion of Company's Counsel A-1
Exhibit B - Form of Opinion of Company's Bermuda Counsel B-1
Exhibit C - Form of Opinion of Local Counsel C-1
Exhibit D - Form of Opinion of the Selling Shareholder's Counsel D-1
Exhibit E - Form of Opinion of the Selling Shareholder's
Bermuda Counsel E-1
iii
