15,000,000 Shares* AIRSPAN NETWORKS INC. Common Stock UNDERWRITING AGREEMENT
EXHIBIT
1.1
EXECUTION
VERSION
15,000,000
Shares*
Common
Stock
September
20, 2007
Xxxxxxx
& Company, LLC
Xxxxxxxx
Inc.
As
Representatives of the several Underwriters
c/o
Needham & Company, LLC
000
Xxxx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Ladies
and Gentlemen:
Airspan
Networks Inc., a Washington corporation (the “Company”), proposes to issue and
sell 15,000,000 shares (the “Firm Shares”) of the Company’s Common Stock,
$0.0003 par value per share (the “Common Stock”), to you and to the several
other Underwriters named in Schedule I
hereto
(collectively, the “Underwriters”), for whom you are acting as representatives
(the “Representatives”). The Company has also agreed to grant to you and the
other Underwriters an option (the “Option”) to purchase up to an additional
2,250,000 shares of Common Stock, on the terms and for the purposes set forth
in
Section 1(b) (the “Option Shares”). The Firm Shares and the Option Shares
are referred to collectively herein as the “Shares.” As used herein, the term
“Representatives” shall mean the “Underwriters” unless any Underwriters other
than the Representatives are named in Schedule I hereto.
The
Company confirms as follows its agreements with the Representatives and the
several other Underwriters.
1. Agreement
to Sell and Purchase.
(a) On
the
basis of the representations, warranties and agreements of the Company herein
contained and subject to all the terms and conditions of this Agreement,
(i) the Company agrees to issue and sell the Firm Shares to the several
Underwriters and (ii) each of the Underwriters, severally and not jointly,
agrees to purchase from the Company the respective number of Firm Shares set
forth opposite that Underwriter’s name in Schedule I
hereto,
at the purchase price of $1.88 for each Firm Share.
(b) Subject
to all
the terms and conditions of this Agreement, the Company grants the Option to
the
several Underwriters to purchase, severally and not jointly, up to the maximum
number of Option Shares at the same price per share as the Underwriters shall
pay for the Firm Shares. The Option may be exercised only to cover
over-allotments in the sale of the Firm Shares by the Underwriters and may
be
exercised in whole or in part at any time (but not more than once) on or before
the 30th day after the date of this Agreement upon written or telegraphic notice
(the “Option Shares Notice”) by the Representatives to the Company no later than
12:00 p.m., New York City time, at least two and no more than five business
days before the date specified for closing in the Option Shares Notice (the
“Option Closing Date”), setting forth the aggregate number of Option Shares to
be purchased and the time and date for such purchase. On the Option Closing
Date, the Company will issue and sell to the Underwriters the number of Option
Shares set forth in the Option Shares Notice, and each Underwriter will purchase
such percentage of the Option Shares as is equal to the percentage of Firm
Shares that such Underwriter is purchasing, as adjusted by the Representatives
in such manner as they deem advisable to avoid fractional shares.
*
Plus an option to purchase up to an additional 2,250,000 shares to cover
over-allotments.
2. Delivery
and Payment. Delivery
of the Firm Shares shall be made to the Representatives for the accounts of
the
several Underwriters in a form reasonably acceptable to the Representatives
against payment by the Underwriters of the purchase price by wire transfer
payable in same-day funds to the order of the Company for the Firm Shares to
be
sold by it at the office of Xxxxxxx & Company, LLC, 000 Xxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, at 10:00 a.m., New York City time, on the
third (or, if the purchase price set forth in Section 1(a) hereof is
determined after 4:30 p.m., New York City time, the fourth) business day after
the date of this Agreement, or at such time on such other date, not later than
seven business days after the date of this Agreement, as may be agreed upon
by
the Company and the Representatives (such date is hereinafter referred to as
the
“Closing Date”).
To
the
extent the Option is exercised, delivery of the Option Shares against payment
by
the Underwriters (in the manner specified above) will take place at the offices
specified above for the Closing Date at the time and date (which may be the
Closing Date) specified in the Option Shares Notice.
The
Shares shall be in definitive form and shall be registered in such names and
in
such denominations as the
Representatives shall request at least two business days prior to the Closing
Date or the Option Closing Date, as the case may be, by written notice to the
Company, and shall be delivered by or on behalf of the Company as instructed
by
the Representatives through the facilities of The Depository Trust Company
(“DTC”). The Company agrees to make certificates representing the Shares or
evidence of their issuance available for inspection at least 24 hours prior
to the Closing Date or the Option Closing Date, as the case may be.
The
cost
of original
issue
tax stamps and other transfer taxes, if any, in connection with the issuance
and
delivery of the Firm Shares and Option Shares by the Company to the respective
Underwriters shall be borne by the Company. The Company will pay and save each
Underwriter and any subsequent holder of the Shares harmless from any and all
liabilities with respect to or resulting from any failure or delay in paying
federal and state stamp and other transfer taxes, if any, which may be payable
or determined to be payable in connection with the original issuance or sale
to
such Underwriter of the Shares.
3. Representations
and Warranties of the Company.
The
Company represents, warrants and covenants to each Underwriter
that:
(a) The
Company meets the requirements
for the
use of Form S-3 under the provisions of the Securities Act of 1933, as amended
(the “Act”), and a registration statement (Registration No. 333-143667) on
Form S-3 relating to the Shares, including a base prospectus relating to
the Shares (the “Base Prospectus”) and such amendments thereto as may have been
required to the date of this Agreement, has been prepared by the Company under
the Act, and the rules and regulations (collectively referred to as the “Rules
and Regulations”) of the Securities and Exchange Commission (the “Commission”)
thereunder, has been filed with the Commission, and has been declared effective
by the Commission, and the offering of the Shares complies with Rule 415 under
the Act. A
final
prospectus supplement to the Base Prospectus relating to the Shares and the
offering thereof will be filed promptly by the Company with the Commission
in
accordance with Rule 424(b) of the Rules and Regulations (such final prospectus
supplement, as so filed, the “Prospectus Supplement”). Such registration
statement at any given time, including the amendments thereto to such time,
the
exhibits and any schedules thereto at such time, the documents otherwise deemed
to be a part thereof or included therein by the Rules and Regulations (including
Rule
430B
thereof),
and any
registration statement relating to the offering contemplated by this Agreement
and filed pursuant to Rule 462(b) of the Rules and Regulations (“Rule 462(b)”),
is herein called the “Registration Statement.” The term “preliminary prospectus”
means any preliminary prospectus (including any preliminary prospectus
supplement) relating to the Shares and the offering thereof as first filed
with
the Commission pursuant to Rule 424(b) of the Rules and Regulations (“Rule
424(b)”). The term “Prospectus” means the Base Prospectus together with the
Prospectus Supplement, except that if such Base Prospectus is amended or
supplemented on or prior to the date on which the Prospectus Supplement was
first filed pursuant to Rule 424(b), the term “Prospectus” shall mean the Base
Prospectus as so amended or supplemented and as supplemented by the Prospectus
Supplement. Any reference herein to the Registration Statement, the Base
Prospectus, a preliminary prospectus, the Prospectus Supplement, or the
Prospectus shall be deemed to refer to and include the documents incorporated
by
reference therein, and any reference herein to the terms “amend,” “amendment” or
“supplement” with respect to the Registration Statement, the Base Prospectus, a
preliminary prospectus, the Prospectus Supplement, or the Prospectus shall
be
deemed to refer to and include the filing of any document under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), after the time the
Registration Statement initially became effective (the “Effective Date”), the
date of the Base Prospectus, any preliminary prospectus, the Prospectus
Supplement, or the Prospectus, as the case may be, and deemed to be incorporated
therein by reference. The term “Issuer
Free Writing Prospectus” means any “issuer free writing prospectus,” as defined
in Rule 433 of the Rules and Regulations (“Rule 433”), relating to the Shares in
the form filed or required to be filed with the Commission or, if not required
to be filed , in the form retained in the Company’s records pursuant to Rule
433(g).
2
(b) No
order
preventing or suspending the use of the Base Prospectus, any preliminary
prospectus, the Prospectus Supplement, the Prospectus or any Issuer Free Writing
Prospectus has been issued by the Commission, and no stop order suspending
the
effectiveness of the Registration Statement (including any related registration
statement filed pursuant to Rule 462(b)) or any post-effective amendment thereto
has been issued, and no proceeding for that purpose has been instituted or
threatened by the Commission. On the Effective Date, on the date the Base
Prospectus, any preliminary prospectus, the Prospectus Supplement, or the
Prospectus is first filed with the Commission pursuant to Rule 424(b) (if
required), at all times during the period through and including the Closing
Date
and, if later, the Option Closing Date and when any post-effective amendment
to
the Registration Statement becomes effective or any amendment or supplement
to
the Prospectus is filed with the Commission, the Registration Statement and
the
Prospectus (as amended or as supplemented if the Company shall have filed with
the Commission any amendment or supplement thereto), including the financial
statements included or incorporated by reference in the Prospectus, did and
will
comply with the applicable provisions of the Act, the Exchange Act, the rules
and regulations of the Commission under the Exchange Act (the “Exchange Act
Rules and Regulations”), and the Rules and Regulations and will contain all
statements required to be stated therein in accordance with the Act, the
Exchange Act, the Exchange Act Rules and Regulations, and the Rules and
Regulations. As of the applicable effective date as to each part of the
Registration Statement, no part of the Registration Statement, the Prospectus
or
any such amendment or supplement thereto did or will contain an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein not misleading.
At
the Effective Date, the date the Base Prospectus or any amendment or supplement
to the Base Prospectus, including any preliminary prospectus or the Prospectus
Supplement, is filed with the Commission, the date of first use of any
preliminary prospectus or the Prospectus Supplement, and at the Closing Date
and, if later, the Option Closing Date, the Prospectus did not and will not
contain any untrue statement of a material fact or omit to state a material
fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.
As
of the
Applicable Time (as defined below), neither (x) the Issuer General Use Free
Writing Prospectus(es) (as defined below) issued at or prior to the Applicable
Time, the Pricing Prospectus (as defined below) and the documents listed on
Schedule
II
hereto,
all considered together (collectively, the “General Disclosure Package”), nor
(y) any individual Issuer Limited Use Free Writing Prospectus, when considered
together with the General Disclosure Package, included any untrue statement
of a
material fact or omitted to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they
were
made, not misleading.
As
used
in this subsection and elsewhere in this Agreement:
“Applicable
Time” means 6:00 pm (Eastern time) on September 20, 2007, or such other time as
agreed by the Company and Xxxxxxx & Company, LLC.
“Issuer
General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is intended for general distribution to prospective investors, as evidenced
by its being specified in Schedule
II
hereto.
3
“Issuer
Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not an Issuer General Use Free Writing Prospectus.
“Pricing
Prospectus” means the Base Prospectus, as amended or supplemented immediately
prior to the Applicable Time, including any document incorporated by reference
therein and any prospectus supplement deemed to be a part thereof. For purposes
of this definition, information contained in a form of prospectus that is deemed
retroactively to be a part of the Registration Statement pursuant to Rule 430B
shall be considered to be included in the Pricing Prospectus only if the actual
time that form of prospectus is filed with the Commission pursuant to Rule
424(b) is prior to the Applicable Time.
Each
Issuer Free Writing Prospectus, as of its issue date and at all subsequent
times
through the completion of the public offer and sale of the Shares or until
any
earlier date that the issuer notified or notifies Xxxxxxx & Company, LLC as
described in the next sentence, did not, does not and will not include any
information that conflicted, conflicts or will conflict with the information
contained in the Registration Statement or the Prospectus, including any
document incorporated by reference therein that has not been superseded or
modified. If there occurs an event or development as a result of which the
General Disclosure Package would include an untrue statement of a material
fact
or would omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances then prevailing, not misleading,
the
Company will promptly notify the Representatives so that any use of the General
Disclosure Package may cease until it is amended or supplemented to correct
untrue statement or omission.
The
foregoing representations and warranties in this Section 3(b) do not apply
to any statements or omissions made in reliance on and in conformity with
information furnished in writing to the Company by the Representatives
specifically for inclusion in the Registration Statement, the Prospectus
Supplement, the Pricing Prospectus, the Prospectus or any Issuer Free Writing
Prospectus or any amendment or supplement thereto. The Company acknowledges
that
the names of the Underwriters in the first paragraph and the statements set
forth in the fifth paragraph and under the caption “Price Stabilization and
Short Positions” under the heading “Underwriting” in the Pricing Prospectus and
the Prospectus constitute the only information furnished in writing to the
Company by the Representatives specifically for inclusion in the Registration
Statement, the Prospectus Supplement, the Pricing Prospectus, the Prospectus
and
any Issuer Free Writing Prospectus.
(c) (i)
At
the earliest time after the filing of the Registration Statement that the
Company or another offering participant made a bona
fide
offer
(within the meaning of Rule 164(h)(2) of the Rules and Regulations) of the
Shares and (ii) as of the date hereof, the Company was not and is not an
Ineligible Issuer (as defined in Rule 405 of the Rules and Regulations (“Rule
405”)), without taking account of any determination by the Commission pursuant
to Rule 405 that it is not necessary that the Company be considered an
Ineligible Issuer.
(d) The
documents that are incorporated by reference in the Base Prospectus, any
preliminary prospectus, the Pricing Prospectus and the Prospectus or from which
information is so incorporated by reference, when they became or become
effective or were or are filed with the Commission, as the case may be, complied
or will comply in all material respects with the requirements of the Act or
the
Exchange Act, as applicable, and the Rules and Regulations or the Exchange
Act
Rules and Regulations, as applicable; and any documents so filed and
incorporated by reference subsequent to the Effective Date shall, when they
are
filed with the Commission, comply in all material respects with the requirements
of the Act or the Exchange Act, as applicable, and the Rules and Regulations
or
the Exchange Act Rules and Regulations, as applicable. No such documents were
filed with the Commission since the Commission’s close of business on the
business day immediately prior to the date of this Agreement and prior to the
execution of this Agreement, except as set forth on Schedule II hereto.
(e) The
Company does not own, directly or indirectly, any shares of stock or any other
equity or long-term debt securities of any corporation or have any equity
interest in any corporation, firm, partnership, joint venture, association
or
other entity, other than the subsidiaries listed in Exhibit 21 to the Company’s
Annual Report on Form 10-K for the year ended December 31, 2006 (collectively,
the “Subsidiaries”). The Company and each of its Subsidiaries is a corporation
duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation. The Company and each of its Subsidiaries has
full
power and authority to conduct all the activities conducted by it, to own or
lease all the assets owned or leased by it and to conduct its business as
described in the Registration Statement, the Pricing Prospectus and the
Prospectus. The Company and each of its Subsidiaries is duly licensed or
qualified to do business and in good standing as a foreign corporation in all
jurisdictions in which the nature of the activities conducted by it or the
character of the assets owned or leased by it makes such license or
qualification necessary, except to the extent that the failure to be so
qualified or be in good standing would not materially and adversely affect
the
Company and its Subsidiaries, taken as a whole, or their respective businesses,
properties, business prospects, conditions (financial or other) or results
of
operations, taken as a whole (such effect is referred to herein as a “Material
Adverse Effect”). All of the outstanding shares of capital stock of each
Subsidiary have been duly authorized and validly issued and are fully paid
and
nonassessable, and owned by the Company free and clear of all claims, liens,
charges and encumbrances; there are no securities outstanding that are
convertible into or exercisable or exchangeable for capital stock of any
Subsidiary. The Company and its Subsidiaries are not engaged in any discussions
or a party to any agreement or understanding, written or oral, regarding the
acquisition of an interest in any corporation, firm, partnership, joint venture,
association or other entity where such discussions, agreements or understandings
would require amendment to the Registration Statement pursuant to applicable
securities laws. Complete and correct copies of the charter and of the by-laws
of the Company and each of its Subsidiaries and all amendments thereto have
been
delivered to the Representatives, and no changes therein will be made subsequent
to the date hereof and prior to the Closing Date or, if later, the Option
Closing Date.
4
(f) The
Company has authorized, issued and outstanding capital stock as set forth under
the caption “Capitalization” in the Pricing Prospectus and the Prospectus as of
the respective dates set forth therein. All
of
the outstanding shares of capital
stock of
the Company have been duly authorized, validly issued and are fully paid and
nonassessable and were issued in compliance with all applicable state and
federal securities laws; the Firm Shares and the Option Shares have been duly
authorized and when issued and paid for as contemplated herein will be validly
issued, fully paid and nonassessable; no preemptive or similar rights exist
with
respect to any of the Shares or the issue and sale thereof. The descriptions
of
the capital stock of the Company in the Registration Statement, the Pricing
Prospectus and the Prospectus, insofar as they propose to constitute a summary
of the terms of the capital stock of the Company, fairly and accurately present
the matters described therein in all material respects. No further approval
or
authority of stockholders or the Board of Directors of the Company will be
required for the issuance and sale of the Firm Shares and the Option Shares
as
contemplated herein. The
certificates evidencing the Shares are in due and proper legal form and have
been duly authorized for issuance by the Company.
(g) The
financial statements and schedules included or incorporated by reference in
the
Registration Statement, the Pricing Prospectus or the Prospectus present fairly
the financial condition of the Company and its consolidated Subsidiaries as
of
the respective dates thereof and the results of operations and cash flows of
the
Company and its consolidated Subsidiaries for the respective periods covered
thereby, all in conformity with generally
accepted
accounting principles applied on a consistent basis throughout the entire period
involved, except as otherwise disclosed in the Pricing Prospectus or the
Prospectus. No other financial statements or schedules of the Company are
required by the Act, the Exchange Act, the Exchange Act Rules and Regulations
or
the Rules and Regulations to be included in the Registration Statement, the
Pricing Prospectus or the Prospectus. Xxxxx Xxxxxxxx LLP and Ernst & Young
LLP (the “Accountants”), who have reported on such financial statements and
schedules, are independent accountants with respect to the Company as required
by the Act and the Rules and Regulations and Rule 3600T of the Public Company
Accounting Oversight Board (“PCAOB”). The summary and selected consolidated
financial and statistical data included in the Registration Statement, the
Pricing Prospectus and the Prospectus present fairly the information shown
therein and have been compiled on a basis consistent with the audited financial
statements presented and incorporated by reference in the Registration
Statement, the Pricing Prospectus and the Prospectus. All disclosures contained
in the Registration Statement or the General Disclosure Package regarding
“non-GAAP financial measures” (as such term is defined in the Rules and
Regulations) comply with Regulation G of the Exchange Act and Item 10 of
Regulation S-K under the Act, to the extent applicable.
(h) Subsequent
to the respective dates
as of
which information is given in the Registration Statement, the
Pricing Prospectus and
the
Prospectus and prior to or on the Closing Date and, if later, the Option Closing
Date, except as set forth in or contemplated by the Registration Statement,
the
Pricing Prospectus and the Prospectus, (i) there has not been and will not
have been any change in the capitalization of the Company (other than in
connection with the exercise of options to purchase the Company’s Common Stock
granted pursuant to the Company’s stock option plans from the shares reserved
therefor as described in the Registration Statement and the Pricing Prospectus),
or any Material Adverse Effect arising for any reason whatsoever, (ii)
neither the Company nor any of its Subsidiaries has incurred nor will any of
them incur, except in the ordinary course of business as described in the
Pricing Prospectus and the Prospectus, any material liabilities or obligations,
direct or contingent, nor has the Company or any of its Subsidiaries entered
into nor will it enter into, except in the ordinary course of business as
described in the Pricing Prospectus and the Prospectus, any material
transactions other than pursuant to this Agreement and the transactions referred
to herein and (iii) the Company has not and will not have paid or declared
any dividends or other distributions of any kind on any class of its capital
stock.
5
(i) The
Company
is not, will not
become
as a result of the transactions contemplated
hereby, and will not conduct its business in a manner that would cause it to
become, an “investment company”
or
an “affiliated person” of, or “promoter” or “principal underwriter” for, an
“investment company,” as such terms are defined in the Investment Company Act of
1940, as amended.
(j) Except
as
set forth in the Registration Statement, the Pricing Prospectus and the
Prospectus, there are no actions, suits or proceedings pending or, to the
knowledge of the Company,
threatened against or affecting the Company, or any of its Subsidiaries or
any
of its or their officers in their capacity as such, nor any basis therefor,
before or by any federal or state court, commission, regulatory body,
administrative agency or other governmental body, domestic or foreign, wherein
an unfavorable ruling, decision or finding would reasonably be likely to have
a
Material Adverse Effect.
(k) The
Company and each Subsidiary has, and at the Closing Date
and, if
later, the Option Closing Date, will have, performed all the obligations
required to be performed by it, and
is not,
and at the Closing Date, and, if later, the Option Closing Date, will not be,
in
default, under any contract or other instrument to which it is a party or by
which its property is bound or affected, which default would reasonably be
likely to have a Material Adverse Effect. To the knowledge of the Company,
no
other party under any contract or other instrument to which it or any of its
Subsidiaries is a party is in default in any respect thereunder, which default
would reasonably be likely to have a Material Adverse Effect. Neither the
Company nor any of its Subsidiaries is, and at the Closing Date and, if later,
the Option Closing Date, will be, in violation of any provision of its charter
or by-laws or other organizational documents.
(l) No
consent, approval, authorization or order of, or any filing or declaration
with,
any court or governmental agency or body is required for the consummation by
the
Company of the transactions on its part contemplated herein, except such as
have
been obtained under the Act or the Rules and Regulations and such as may be
required under state securities or Blue Sky laws or the by-laws and rules of
the
National Association of Securities Dealers, Inc. (the “NASD”) in connection with
the purchase and distribution by the Underwriters of the Shares.
(m) The
Company has full corporate power and authority to enter into this Agreement.
This Agreement has been duly authorized, executed and delivered by the Company.
The performance of this Agreement and the consummation of the transactions
contemplated hereby will not result in the creation or imposition of any lien,
charge or encumbrance upon any of the assets of the Company pursuant to the
terms or provisions of, or result in a breach or violation of any of the terms
or provisions of, or conflict with or constitute a default under, or give any
party a right to terminate any of its obligations under, or result in the
acceleration of any obligation under, the certificate or articles of
incorporation or by-laws of the Company or any of its Subsidiaries, any
indenture, mortgage, deed of trust, voting trust agreement, loan agreement,
bond, debenture, note agreement or other evidence of indebtedness, lease,
contract or other agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company, any of its Subsidiaries or
any
of its or their properties is bound or affected, or violate or conflict with
any
judgment, ruling, decree, order, statute, rule or regulation of any court or
other governmental agency or body applicable to the business or properties
of
the Company or any of its Subsidiaries.
(n) The
Company and its Subsidiaries have good and marketable title to all properties
and assets described in the Pricing Prospectus and the Prospectus as owned
by
them, free and clear of all liens, charges, encumbrances or restrictions, except
for the existing lien in favor of Silicon Valley Bank and such others as are
described in the Pricing Prospectus and the Prospectus or are not material
to
the business of the Company or its Subsidiaries. The Company and its
Subsidiaries have valid, subsisting and enforceable leases for the
properties described in the Pricing Prospectus and the Prospectus as leased
by
them. The Company and its Subsidiaries own or lease all such properties as
are
necessary to their operations as now conducted or as proposed to be conducted,
except where the failure to so own or lease would not have a Material Adverse
Effect.
6
(o) There
is
no document, contract, permit or instrument, affiliate transaction or
off-balance sheet transaction (including, without limitation, any “variable
interests” in “variable interest entities,” as such terms are defined in
Financial Accounting Standards Board Interpretation No. 46) of a character
required to be described in the Registration Statement, the
Pricing Prospectus or
the
Prospectus or to be filed as an exhibit to the Registration Statement that
is
not described or filed as required. All such contracts to which the Company
or
any of its Subsidiaries is a party have been duly authorized, executed and
delivered by the Company or such Subsidiary, constitute valid and binding
agreements of the Company or such Subsidiary and are enforceable against and
by
the Company or such Subsidiary in accordance with the terms thereof subject,
as
to enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors’ rights generally from
time to time in effect and to general principles of equity, including without
limitation, concepts of materiality, reasonableness, good faith and fair
dealing, regardless of whether considered in a proceeding in equity or at
law.
(p) No
statement, representation, warranty or covenant made by the Company in this
Agreement or made in any certificate
or
document required by Section 5
of this Agreement to be delivered to the Representatives was or will be, when
made, inaccurate, untrue or incorrect in any material respect.
(q) The
Company has not distributed and will not distribute prior to the later of
(i) the Closing Date or, if later, the Option Closing Date, and
(ii) completion of the distribution of the Shares, any offering material in
connection with the offering and sale of the Shares other than any preliminary
prospectuses, the Prospectus, the Registration Statement, any Issuer Free
Writing Prospectus listed in Schedule
II
hereto,
and other materials, if any, permitted by the Act and the Rules and Regulations.
Neither
the
Company nor any of its directors, officers or controlling persons has taken,
directly or indirectly, any action designed, or that would reasonably be
expected, to cause or result, under the Act or otherwise, in, or that has
constituted, stabilization or manipulation of the price of any security of
the
Company to facilitate the sale or resale of the Shares.
(r) No
holder
of securities of the Company has rights to the registration of any securities
of
the Company because of the filing
of the
Registration Statement, which rights have not been waived by the holder thereof
as of the date hereof.
(s) The
Common
Stock is registered under Section 12(b) of the Exchange Act and the Company
has
filed an application to list the Shares to be sold by the Company hereunder
on
The NASDAQ Stock Market LLC (“NSM”), and has received notification that the
listing has been approved, subject to notice of issuance of such
Shares.
(t) Except
as
disclosed
in or
contemplated by the Pricing Prospectus and the Prospectus (i) each of the
Company and each of its Subsidiaries owns or has adequate rights to use all
trademarks, trade names, domain names, patents, patent rights,
copyrights, technology, know-how (including trade secrets and
other
unpatented or unpatentable proprietary or confidential information, systems
or
procedures), service marks, trade dress rights, and other intellectual property
(collectively,
“Intellectual Property”) and has such other licenses, approvals and governmental
authorizations, in each case, sufficient to conduct its business as now
conducted and
as
now proposed to be conducted, and, to the Company’s and its Subsidiaries’
knowledge, none of the foregoing Intellectual Property rights owned or licensed
by the Company or any of its Subsidiaries is invalid or
unenforceable,
(ii) the Company has no knowledge of any infringement by it or any of its
Subsidiaries of Intellectual Property rights of others, where such infringement
could have a Material Adverse Effect, (iii) the
Company is not aware of any infringement, misappropriation or violation by
others of, or conflict by others with rights of the Company or any of its
Subsidiaries with respect to, any Intellectual Property, (iv) there
is no claim being made against the Company or any of its Subsidiaries or, to
the
knowledge of the Company and its Subsidiaries, any employee of the Company
or
any of its Subsidiaries, regarding Intellectual Property or other infringement
that could have a Material Adverse Effect, and (v) the Company and its
Subsidiaries have not received any notice of infringement with respect
to
any
patent or any notice challenging the validity, scope or enforceability of any
Intellectual Property owned by or licensed to the Company or any of its
Subsidiaries, in each case the loss of which patent or Intellectual Property
(or
loss of rights thereto) would have a Material Adverse Effect.
7
(u) The
Company and each of its Subsidiaries has filed all federal, state, local and
foreign income tax returns that have been required to be filed and has paid
all
taxes and assessments received by it to the extent that such taxes or
assessments have become due. Neither the Company nor any of its Subsidiaries
has
any tax deficiency that has been or, to the knowledge of the Company, might
be
asserted or threatened against it that would be reasonably likely to have a
Material Adverse Effect.
(v) The
Company or its Subsidiaries own or possess all authorizations, approvals,
orders, licenses, registrations, other certificates and permits of and from
all
governmental regulatory officials and bodies, necessary to conduct their
respective businesses as contemplated in the
Pricing Prospectus and the
Prospectus, except where the failure to own or possess all such authorizations,
approvals, orders, licenses, registrations, other certificates and permits
would
not have a Material Adverse Effect. There is no proceeding pending or threatened
(or any basis therefor known to the Company) that may cause any such
authorization, approval, order, license, registration, certificate or permit
to
be revoked, withdrawn, cancelled, suspended or not renewed; and the Company
and
each of its Subsidiaries is conducting its business in compliance with all
laws,
rules and regulations applicable thereto (including, without limitation, all
applicable federal, state and local environmental laws and regulations) except
where such noncompliance would not have a Material Adverse Effect.
(w) The
Company and each of its Subsidiaries maintains insurance of the types and in
the
amounts generally deemed adequate for its business, including, but not limited
to, insurance covering real and personal property owned or leased by the Company
and its Subsidiaries against theft, damage, destruction, acts of vandalism
and
all other risks customarily insured against, all of which insurance is in full
force and effect.
(x) Neither
the Company nor any of its Subsidiaries has nor, to the best of the Company’s
knowledge, any of their respective employees or agents at any time during the
last five years (i) made any unlawful contribution to any candidate for
foreign office, or failed to disclose fully any contribution in violation of
law, or (ii) made any payment to any federal or state governmental officer
or official, or other person charged with similar public or quasi-public duties,
other than payments required or permitted by the laws of the United States
or
any jurisdiction thereof.
(y) The
books, records and accounts of the Company and its Subsidiaries accurately
and
fairly reflect, in reasonable detail, the transactions in, and dispositions
of,
the assets of, and the results of operations of, the Company and its
Subsidiaries. The Company and each of its Subsidiaries maintains a system of
internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or
specific authorization, (ii) transactions are recorded as necessary to
permit preparation of the Company’s consolidated financial statements in
accordance with generally accepted accounting principles and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with
management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.
The
Company’s internal control over financial reporting is effective and the Company
is not aware of any material weaknesses in its internal control over financial
reporting. Since the date of the latest audited financial statements included
in
or incorporated by reference in the Pricing Prospectus and the Prospectus,
there
has been no change in the Company’s internal control over financial reporting
that has materially affected, or is reasonably likely to materially affect,
the
Company’s internal control over financial reporting.
(z) The
Company maintains disclosure controls and procedures (as defined in
Rule 13a-14(c) under the Exchange Act); such disclosure controls and
procedures have been designed to provide reasonable assurances that material
information relating to the Company and its Subsidiaries is made known to the
Company’s principal executive officer and principal financial officer by others
within those entities; and such disclosure controls and procedures are
effective.
8
(aa) The
Company is eligible to use Form S-3 for the registration of securities pursuant
to the standards of that Form in existence immediately prior to October 21,
1992.
(bb) At
all
times during the last five years the Company and each of its Subsidiaries has
acted (i) in compliance in all material respects with all foreign laws
applicable to it, including without limitation laws relating to foreign
investment, foreign exchange control, immigration, import/export, employment
and
taxation and (ii) without violation of the Foreign Corrupt Practices Act of
1977, as amended from time to time.
4. Agreements
of the Company.
The
Company covenants and agrees with the several Underwriters as
follows:
(a) The
Company will not, either prior to the Applicable Time or thereafter during
such
period
as the Prospectus is required by law to be delivered in connection with sales
of
the Shares by an Underwriter or a dealer, file any amendment or supplement
to
the Registration Statement, the Base Prospectus or the Prospectus, unless a
copy
thereof shall first have been submitted to the Representatives within a
reasonable period of time prior to the filing thereof and the Representatives
shall not have objected thereto in good faith.
(b) The
Company will notify the Representatives promptly, and will confirm such advice
in writing, (i) when any amendment to the Registration Statement has been
filed or becomes effective or any amendment or supplement to the Prospectus
has
been filed, (ii) of
any request by the Commission for amendments or supplements to the Registration
Statement or the Prospectus or for additional information, (iii) of the
issuance by the Commission of any stop order suspending the effectiveness of
the
Registration Statement or preventing or suspending the use of the Base
Prospectus, any preliminary prospectus, the Prospectus Supplement, the
Prospectus or any Issuer Free Writing Prospectus or the initiation of any
proceedings for that purpose or the threat thereof, (iv) of the happening
of any event during the period mentioned in the third sentence of
Section 4(e) that in the judgment of the Company makes any statement made
in the Registration Statement or the Prospectus untrue or that requires the
making of any changes in the Registration Statement or the Prospectus in order
to make the statements therein, in the light of the circumstances in which
they
are made, not misleading, and (v) of receipt by the Company or any
representative or attorney of the Company of any other communication from the
Commission relating to the Company, the Registration Statement, any preliminary
prospectus or the Prospectus. If at any time the Commission shall issue any
order suspending the effectiveness of the Registration Statement or preventing
or suspending the use of the Base Prospectus, any preliminary prospectus, the
Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus,
the
Company will make every reasonable effort to obtain the withdrawal of such
order
at the earliest possible moment. If the Company has omitted any information
from
the Registration Statement pursuant to Rule 430B of the Rules and Regulations,
the Company will comply with the provisions of and make all requisite filings
with the Commission pursuant to said Rule 430B and notify the Representatives
promptly of all such filings. If
the
Company elects to rely upon Rule 462(b) under the Act, the Company shall file
a
registration statement under Rule 462(b) with the Commission in compliance
with
Rule 462(b) by 10:00 p.m., Washington, D.C. time, on the date of this Agreement,
and the Company shall at the time of filing either pay to the Commission the
filing fee for such Rule 462(b) registration statement or give irrevocable
instructions for the payment of such fee pursuant to the Rules and
Regulations.
(c) The
Company will furnish to each
Representative, without charge, one signed copy of each of the Registration
Statement and of any pre- or post-effective amendment thereto, including
financial statements and schedules, and all exhibits thereto and will furnish
to
the Representatives, without charge, for transmittal to each of the other
Underwriters, a copy of the Registration Statement and any pre- or
post-effective amendment thereto, including financial statements and schedules
but without exhibits.
(d) The
Company will comply with all the provisions of any undertakings contained in
the
Registration Statement.
(e) So
long
as delivery of a prospectus by an Underwriter or dealer may be required by
the
Act (including in circumstances where such requirement may be satisfied pursuant
to Rule 172 of the Rules and Regulations), the Company will deliver to each
of
the Underwriters, without charge, as many written and electronic copies of
each
preliminary prospectus, the Base Prospectus, the Prospectus Supplement, the
Prospectus and each Issuer Free Writing Prospectus as the Representatives may
reasonably request. The Company consents to the use of each preliminary
prospectus, the Base Prospectus, the Prospectus Supplement, the Prospectus,
each
Issuer Free Writing Prospectus or any amendment or supplement thereto by the
Underwriters and by all dealers to whom the Shares may be sold, both in
connection with the offering or sale of the Shares and for any period of time
thereafter during which the Prospectus is required by law to be delivered in
connection therewith. If during such period of time any event shall occur that
in the judgment of the Company or counsel to the Underwriters should be set
forth in the Prospectus in order to make any statement therein, in the light
of
the circumstances under which it was made, not misleading, or if it is necessary
to supplement or amend the Prospectus to comply with law, the Company will
forthwith prepare and duly file with the Commission an appropriate supplement
or
amendment thereto, and will deliver to each of the Underwriters, without charge,
such number of copies of such supplement or amendment to the Prospectus as
the
Representatives may reasonably request. The Company will not file any document
under the Exchange Act or the Exchange Act Rules and Regulations before the
termination of the offering of the Shares by the Underwriters, if such document
would be deemed to be incorporated by reference into the Prospectus, that is
not
approved by the Representatives after reasonable notice thereof, unless such
filing is required by law. If at any time following issuance of an Issuer Free
Writing Prospectus there occurred or occurs an event or development as a result
of which such Issuer Free Writing Prospectus conflicted or would conflict with
the information contained in the Registration Statement, the Pricing Prospectus
or the Prospectus or included or would include an untrue statement of a material
fact or omitted or would omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances prevailing at
that subsequent time, not misleading, the Company will promptly notify Xxxxxxx
& Company, LLC and, if requested by Xxxxxxx & Company, LLC, will
promptly amend or supplement, at its own expense, such Issuer Free Writing
Prospectus to eliminate or correct such conflict, untrue statement or
omission.
9
(f) Prior
to
any public offering of the
Shares,
the Company will cooperate with the Representatives and counsel to the
Underwriters in connection with the registration or qualification of the Shares
for offer and sale under the securities or Blue Sky laws of such jurisdictions
as the Representatives may request; provided, that in no event shall the Company
be obligated to qualify to do business in any jurisdiction where it is not
now
so qualified or to take any action that would subject it to general service
of
process in any jurisdiction where it is not now so subject.
(g) The
Company will, so long as required under the Rules and Regulations,
furnish
to its stockholders as soon as practicable after the end of each fiscal year
an
annual report (including a balance sheet and statements of income, stockholders’
equity and cash flow of the Company and its consolidated Subsidiaries, if any,
certified by independent public accountants) and, as soon as practicable after
the end of each of the first three quarters of each fiscal year (beginning
with
the fiscal quarter ending after the effective date of the Registration
Statement), consolidated summary financial information of the Company and its
Subsidiaries, if any, for such quarter in reasonable detail. The requirements
of
this Section 4(g) shall be deemed to be satisfied if the Company timely files
the periodic reports required to be filed by it with the Commission under the
Exchange Act.
(h) The
Company will make generally available to holders of its securities (which may
include without limitation the public filing of the same by the Company with
the
Commission) as soon as may be practicable, but in no event later than the
Availability Date (as defined below), an earning statement (which need not
be
audited but shall be in reasonable detail) covering a period of 12 months
commencing after the Effective Date that will satisfy the provisions of Section
11(a) of the Act (including Rule 158 of the Rules and Regulations).
For
the
purpose of the preceding sentence, “Availability Date” means the 45th day after
the end of the fourth fiscal quarter following the fiscal quarter that includes
such Effective Date, except that if such fourth fiscal quarter is the last
quarter of the Company’s fiscal year, “Availability Date” means the 90th day
after the end of such fourth fiscal quarter.
(i) Whether
or not the transactions contemplated by this Agreement
are
consummated or this Agreement is terminated, the Company will pay or reimburse
if paid by the Representatives all costs and expenses incident to the
performance of the obligations of the Company under this Agreement and in
connection with the transactions contemplated hereby, including but not limited
to costs and expenses of or relating to (i) the preparation, printing and
filing of the Registration Statement and exhibits to it, each preliminary
prospectus, the Base Prospectus, the Prospectus Supplement, Pricing Prospectus,
Prospectus, any Issuer Free Writing Prospectus, and any amendment or supplement
thereto, (ii) the preparation and delivery of certificates representing the
Shares, (iii) the printing of this Agreement, the Agreement Among
Underwriters, any Selected Dealer Agreements, any Underwriters’ Questionnaires,
any Underwriters’ Powers of Attorney, and any invitation letters to prospective
Underwriters, (iv) furnishing (including costs of shipping and mailing)
such copies of the Registration Statement, any preliminary prospectus, the
Base
Prospectus, the Prospectus Supplement, the Prospectus, and any Issuer Free
Writing Prospectus, and all amendments and supplements thereto, as may be
requested for use in connection with the offering and sale of the Shares by
the
Underwriters or by dealers to whom Shares may be sold, (v) the listing of
the Shares on the NSM, (vi) any filings required to be made by the
Underwriters with the NASD, and the fees, disbursements and other charges of
counsel for the Underwriters in connection therewith, (vii) the
registration or qualification of the Shares for offer and sale under the
securities or Blue Sky laws of such jurisdictions designated pursuant to
Section 4(f), including the reasonable fees, disbursements and other
reasonable charges of counsel to the Underwriters in connection therewith not
to
exceed $5,000, and the preparation and printing of preliminary, supplemental
and
final Blue Sky memoranda, (viii) fees, disbursements and other charges of
counsel to the Company (but not those of counsel for the Underwriters, except
as
otherwise provided herein) and of the Accountants, (ix) the transfer agent
for the Shares, and (x) any travel expenses of the Company’s officers, directors
and employees and any other expenses of the Company in connection with attending
or hosting meetings with prospective purchasers of the Shares.
10
(j) The
Company
will not
at any time, directly or indirectly, take any action designed or that would
reasonably be expected to cause or result in, or that will constitute,
stabilization of the price of the shares of Common Stock to facilitate the
sale
or resale of any of the Shares.
(k) The
Company will apply the net proceeds from the offering and sale of the Shares
to
be sold by the Company in the manner set forth in the Pricing Prospectus and
the
Prospectus under “Use of Proceeds.”
(l) During
the period beginning
from the
date hereof and continuing to and including the date that is 90 days after
the date of the Prospectus, without the prior written consent of Xxxxxxx &
Company, LLC, the Company will not (1) offer, sell, contract to sell,
pledge, grant options, warrants or rights to purchase, or otherwise dispose
of
any equity securities of the Company or any other securities convertible into
or
exchangeable for its Common Stock or other equity security (other than pursuant
to the Company’s existing employee benefit plans, stock option plans or other
employee compensation plans disclosed in the Pricing Prospectus or the
Prospectus, or pursuant to the exercise of outstanding options or warrants
or
the conversion of convertible securities outstanding on the date of this
Agreement) or
(2)
enter
into any swap or other derivatives transaction that transfers to another,
in
whole or in part, any of the economic benefits or risks of ownership of shares
of Common Stock, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of Common
Stock or other securities, in cash or otherwise; provided, however, that
if
(a)
during the last 17 days of such
90-day period the
Company issues an earnings release or material news or a material event relating
to the Company occurs or (b) prior to the expiration of such 90-day period,
the
Company announces that it will release earnings results during the 16-day period
beginning on the last day of such 90-day period, the restrictions imposed by
this Section 4(l) shall continue to apply until the expiration of the 18-day
period beginning on the issuance of the earnings release or the occurrence
of
the material news or material event, unless Xxxxxxx & Company, LLC waives,
in writing, such extension.
(m) During
the period of 90 days after the date of the Prospectus, the Company will
not, without the prior written consent of Xxxxxxx & Company, LLC, grant
options to purchase shares of Common Stock at a price less than the initial
public offering price (other than pursuant to the Company’s existing employee
benefit plans, stock option plans or other employee compensation plans). During
the period of 90 days after the date of the Prospectus, the Company will not
file with the Commission or cause to become effective any registration statement
relating to any securities of the Company without the prior written consent
of
Xxxxxxx & Company, LLC.
(n) The
Company will cause each of its executive officers, directors and Oak Investment
Partners to, enter into lock-up agreements with the Representatives to the
effect that they will not, without the prior written consent of Xxxxxxx &
Company, LLC, sell, contract to sell or otherwise dispose of any shares of
Common Stock or rights to acquire such shares according to the terms set forth
in Schedule III
hereto.
11
5. Further
Agreements.
(a) The
Company represents and agrees that, without the prior written consent of
Xxxxxxx & Company, LLC, and each Underwriter represents and agrees
that, without the prior written consent of the Company and Xxxxxxx &
Company, LLC, it has not made and will not make any offer relating to the Shares
that would constitute a “free writing prospectus” as defined in Rule 405. Any
such Free Writing Prospectus the use of which has been consented to by the
Company and Xxxxxxx & Company, LLC is listed on Schedule
II
and
herein called a “Permitted Free Writing Prospectus.”
(b) The
Company agrees that it has treated and will treat, as the case may be, each
Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and
that
it has complied and will comply, as the case may be, with the requirements
of
Rules 164 and 433 of the Rules and Regulations applicable to any Permitted
Free
Writing Prospectus, including timely Commission filing where required, record
keeping and legending.
6. Conditions
of the Obligations of the Underwriters. The
obligations of each Underwriter hereunder are subject to the following
conditions:
(a) All
filings required by Rule 424 and Rule 430A of the Rules and Regulations
shall have been made. If the Company has elected to rely upon Rule 462(b),
the
registration statement filed under Rule 462(b) shall have become effective
by
10:00 p.m., Washington, D.C. time, on the date of this Agreement.
(b) (i) No
stop order suspending the effectiveness of the Registration Statement or
preventing
or suspending the use of the Base Prospectus, any preliminary prospectus, the
Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus
shall
have been issued and no proceedings for that purpose shall be pending or
threatened by the Commission, (ii) no order suspending the effectiveness of
the Registration Statement or the qualification or registration of the Shares
under the securities or Blue Sky laws of any jurisdiction shall be in effect
and
no proceeding for such purpose shall be pending before or threatened or
contemplated by the Commission or the authorities of any such jurisdiction,
(iii) any request for additional information on the part of the staff of
the Commission or any such authorities shall have been complied with to the
satisfaction of the staff of the Commission or such authorities, (iv) after
the date hereof no amendment or supplement to the Registration Statement, the
Prospectus or the Pricing Prospectus shall have been filed unless a copy thereof
was first submitted to the Representatives and the Representatives do not object
thereto in good faith, and (v) the Representatives shall have received
certificates, dated the Closing Date and, if later, the Option Closing Date
and
signed by the Chief Executive Officer and the Chief Financial Officer of the
Company (who may, as to proceedings threatened, rely upon the best of their
information and belief), to the effect of clauses (i), (ii) and (iii) of
this paragraph.
(c) Since
the
respective dates as of which information is given in the Registration Statement
and the Pricing Prospectus, (i) there shall not have been a material
adverse change in the general affairs, business, business prospects, properties,
management, condition (financial or otherwise) or results of operations of
the
Company or any of its Subsidiaries, whether or not arising from transactions
in
the ordinary course of business, in each case other than as described in or
contemplated by the Registration Statement and the Pricing Prospectus, and
(ii) neither the Company nor any of its Subsidiaries shall have sustained
any material loss or interference with its business or properties from fire,
explosion, flood or other casualty, whether or not covered by insurance, or
from
any labor dispute or any court or legislative or other governmental action,
order or decree, which is not described in the Registration Statement and the
Pricing Prospectus, if in the judgment of the Representatives any such
development makes it impracticable or inadvisable to consummate the sale and
delivery of the Shares by the Underwriters at the initial public offering
price.
(d) Since
the
respective dates as of which information is given in the Registration Statement
and the Pricing Prospectus, there shall have been no litigation or other
proceeding instituted against the Company or any of its Subsidiaries, or any
of
their officers or directors in their capacities as such, before or by any
federal, state or local court, commission, regulatory body, administrative
agency or other governmental body, domestic or foreign, in which litigation
or
proceeding an unfavorable ruling, decision or finding would, in the judgment
of
the Representatives, have a Material Adverse Effect or if, in the judgment
of
the Representatives, any such development makes it impracticable or inadvisable
to consummate the sale and delivery of the Shares by the Underwriters at the
initial public offering price.
12
(e) Each
of
the representations
and
warranties of the Company contained herein shall be true and correct in all
respects (in the case of any representation and warranty containing a
materiality or Material Adverse Effect qualification) or in all material
respects at the Closing Date and, with respect to the Option Shares, at the
Option Closing Date, and all covenants and agreements contained herein to be
performed on the part of the Company and all conditions contained herein to
be
fulfilled or complied with by the Company at or prior to the Closing Date and,
with respect to the Option Shares, at or prior to the Option Closing Date,
shall
have been duly performed, fulfilled or complied with.
(f) The
Representatives shall have received an opinion, dated the Closing Date and,
with respect to the Option Shares, the Option Closing Date, satisfactory in
form
and substance previously agreed to by the Representatives and counsel for the
Underwriters from Xxxxxx & Whitney LLP, U.S. and U.K. counsel to
the
Company.
The Representatives shall have also received an opinion, dated the Closing
Date
and, with respect to the Option Shares, the Option Closing Date, satisfactory
in
form and substance previously agreed to by the Representatives and counsel
for
the Underwriters from Xxxxxx, Xxx & Xxxxxx, Israeli counsel to the
Company.
(g) The
Representatives shall have received an opinion, dated the Closing Date or the
Option Closing Date, as the case may be, from Xxxxxx, Hall & Xxxxxxx LLP,
counsel to the Underwriters, satisfactory in form and substance to the
Representatives.
(h) Concurrently with
the
execution and delivery of this Agreement, the Accountants shall have furnished
to the Representatives a letter, dated the date of its delivery, addressed
to
the Representatives and in form and substance satisfactory to the
Representatives, confirming that they are independent accountants with respect
to the Company and its Subsidiaries as required by the Act and the Exchange
Act
and the Rules and Regulations and with respect to certain financial and other
statistical and numerical information contained or incorporated by reference
in
the Registration Statement. At the Closing Date and, as to the Option Shares,
the Option Closing Date, the Accountants shall have furnished to the
Representatives a letter, dated the date of its delivery, which shall confirm,
on the basis of a review in accordance with the procedures set forth in the
letter from the Accountants, that nothing has come to their attention during
the
period from the date of the letter referred to in the prior sentence to a date
(specified in the letter) not more than three days prior to the Closing Date
and
the Option Closing Date, as the case may be, which would require any change
in
their letter dated the date hereof if it were required to be dated and delivered
at the Closing Date and the Option Closing Date.
(i) At
the
Closing Date and, as to the Option Shares, the Option Closing Date, there shall
be furnished to the Representatives a certificate, dated the date of its
delivery, signed by each of the Chief Executive Officer and the Chief Financial
Officer of the Company, in form and substance satisfactory to the
Representatives, to the effect that:
(i) Each
signer of such certificate has carefully examined the Registration Statement,
the Prospectus and the General Disclosure Package (including any documents
filed
under the Exchange Act and deemed to be incorporated by reference into the
Pricing Prospectus and the Prospectus) and (A) as of the date of such
certificate, such documents are true and correct in all material respects and
do
not omit to state a material fact required to be stated therein or necessary
in
order to make the statements therein not untrue or misleading and (B) in
the case of the certificate delivered at the Closing Date and the Option Closing
Date, since the Effective Date no event has occurred as a result of which it
is
necessary to amend or supplement the Prospectus in order to make the statements
therein not untrue or misleading.
(ii) Each
of
the representations and warranties of the Company contained in this Agreement
were, when originally made, and are, at the time such certificate is delivered,
true and correct.
13
(iii) Each
of
the covenants required to be performed by the Company herein on or prior to
the
date of such certificate has been duly, timely and fully performed and each
condition herein required to be satisfied or fulfilled on or prior to the date
of such certificate has been duly, timely and fully satisfied or
fulfilled.
(j) On
or
prior to the
Closing
Date, the Representatives shall have received the executed agreements referred
to in Section 4(n).
(k) The
Shares shall be qualified for sale in such jurisdictions as the Representatives
may reasonably request and each such qualification
shall be
in effect and not subject to any stop order or other proceeding on the Closing
Date or the Option Closing Date.
(l) Prior
to
the Closing Date, the Shares shall have been duly authorized for listing on
the
NSM upon official notice of issuance.
(m) The
Company
shall
have furnished to the Representatives such certificates, in addition to those
specifically mentioned herein, as the Representatives may have reasonably
requested as to the accuracy and completeness at the Closing Date and the Option
Closing Date of any statement in the Registration Statement or the Prospectus,
as to the accuracy at the Closing Date and the Option Closing Date of the
representations and warranties of the Company herein, as to the performance
by
the Company of its obligations hereunder, or as to the fulfillment of the
conditions concurrent and precedent to the obligations hereunder of the
Representatives.
7. Indemnification.
(a) The
Company will indemnify and hold harmless each Underwriter, the directors,
officers, employees and agents of each Underwriter and each person, if any,
who
controls each Underwriter within the meaning of Section 15 of the Act or
Section 20 of the Exchange Act (each, an “Indemnified Party”), from and
against any and all losses, claims, liabilities, expenses and damages (including
any and all investigative, legal and other expenses reasonably incurred by
such
Indemnified Party in connection with, and any amount paid by such Indemnified
Party in settlement of, any action, suit or proceeding or any claim asserted),
to which they, or any of them, may become subject under the Act, the Exchange
Act or other federal or state statutory law or regulation, at common law or
otherwise, insofar as such losses, claims, liabilities, expenses or damages
arise out of or are based on any untrue statement or alleged untrue statement
of
a material fact contained in the Registration Statement, any preliminary
prospectus, the Base Prospectus, the Pricing Prospectus, the Prospectus or
any
amendment or supplement thereto or any Issuer Free Writing Prospectus or any
“issuer information” filed or required to be filed pursuant to Rule 433(d) of
the Rules and Regulations, or the omission or alleged omission to state in
such
document a material fact required to be stated in it or necessary to make the
statements in it not misleading in the light of the circumstances in which
they
were made, or arise out of or are based in whole or in part on any inaccuracy
in
the representations and warranties of the Company contained herein or any
failure of the Company to perform its obligations hereunder or under law in
connection with the transactions contemplated hereby; provided,
however,
that
the Company will not be liable to the extent that such loss, claim, liability,
expense or damage arises from the sale of the Shares in the public offering
to
any person by an Underwriter and is based on an untrue statement or omission
or
alleged untrue statement or omission made in reliance on and in conformity
with
information furnished in writing to the Company by the Representatives, on
behalf of any Underwriter, expressly for inclusion in the Registration
Statement, any preliminary prospectus, the Base Prospectus, the Pricing
Prospectus, the Prospectus or any Issuer Free Writing Prospectus. The Company
acknowledges that the names of the Underwriters in the first paragraph and
the
statements set forth in the fifth paragraph and under the caption “Price
Stabilization and Short Positions” under the heading “Underwriting” in the
Pricing Prospectus and the Prospectus constitute the only information furnished
in writing to the Company by the Representatives on behalf of the Underwriters
expressly for inclusion in the Registration Statement, any preliminary
prospectus, the Base Prospectus, the Pricing Prospectus, the Prospectus or
any
Issuer Free Writing Prospectus. This indemnity agreement will be in addition
to
any liability that the Company might otherwise have.
14
(b) Each
Underwriter will indemnify and hold harmless the Company, each director of
the
Company, each officer of the Company who signs the Registration Statement,
each
person, if any, who controls the Company within the meaning of Section 15
of the Act or Section 20 of the Exchange Act, to the same extent as the
foregoing indemnity from the Company to each Underwriter, as set forth in
Section 7(a), but only insofar as losses, claims, liabilities, expenses or
damages arise out of or are based on any untrue statement or omission or alleged
untrue statement or omission made in reliance on and in conformity with
information furnished in writing to the Company by the Representatives, on
behalf of such Underwriter, expressly for use in the Registration Statement,
any
preliminary prospectus, the Base Prospectus, the Pricing Prospectus, the
Prospectus or any Issuer Free Writing Prospectus. The Company acknowledges
that
the names of the Underwriters in the first paragraph and the statements set
forth in the fifth paragraph and under the caption “Price Stabilization and
Short Positions” under the heading “Underwriting” in the Pricing Prospectus and
the Prospectus constitute the only information furnished in writing to the
Company by the Representatives on behalf of the Underwriters expressly for
inclusion in the Registration Statement, any preliminary prospectus, the Base
Prospectus, the Pricing Prospectus, the Prospectus or any Issuer Free Writing
Prospectus. This indemnity will be in addition to any liability that each
Underwriter might otherwise have.
(c) Any
party
that proposes to assert the right
to be
indemnified under this Section 7 shall, promptly after receipt of notice of
commencement of any action against such party in respect of which a claim is
to
be made against an indemnifying party or parties under this Section 7,
notify each such indemnifying party in writing of the commencement
of such
action, enclosing with such notice a copy of all
papers
served, but the omission so to notify such indemnifying party will not relieve
it from any liability that it may have to any indemnified party under the
foregoing provisions of this Section 7 unless, and only to the extent that,
such
omission results in the loss of substantive rights or defenses by the
indemnifying party. If any such action is brought against any indemnified party
and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects
by
delivering written notice to the indemnified party promptly after receiving
notice
of the commencement of the action from the indemnified party, jointly with
any
other indemnifying party similarly notified, to assume the defense of the
action, with counsel reasonably satisfactory to the indemnified party. After
notice from the indemnifying party to the indemnified party of its election
to
assume the defense, the indemnifying party will not be liable to the indemnified
party for any legal or other expenses except as provided below and except for
the reasonable costs of investigation incurred by the indemnified party in
connection with the defense. The indemnified party will have the right to employ
its own counsel in any such action, but the fees, expenses and other charges
of
such counsel will be at the expense of such indemnified party unless
(i) the employment of counsel by the indemnified party has been authorized
in writing by the indemnifying party, (ii) the indemnified party has
reasonably concluded (based on advice of counsel) that there may be legal
defenses available to it or other indemnified parties that are different from
or
in addition to those available to the indemnifying party, (iii) a conflict
or potential conflict exists (based on advice of counsel to the indemnified
party) between the indemnified party and the indemnifying party (in which case
the indemnifying party will not have the right to direct the defense of such
action on behalf of the indemnified party), or (iv) the indemnifying party
has not in fact employed counsel reasonably satisfactory to the indemnified
party to assume the defense of such action within a reasonable time after
receiving notice of the commencement of the action, in each of which cases
the
reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the
indemnifying party or parties shall not, in connection with any proceeding
or
related proceedings in the same jurisdiction, be liable for the reasonable
fees,
disbursements and other charges of more than one separate firm admitted to
practice in such jurisdiction at any one time for all such indemnified party
or
parties. All such fees, disbursements and other charges will be reimbursed
by
the indemnifying party promptly as they are incurred. No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened action in respect
of
which any indemnified party is or could have been a party and indemnity could
have been sought hereunder by such indemnified party unless such settlement
(i)
includes an unconditional release of such indemnified party from all liability
on any claims that are the subject matter of such action 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 an indemnified party. An indemnifying party will
not
be liable for any settlement of any action or claim effected without its written
consent (which consent will not be unreasonably withheld or
delayed).
15
(d) If
the
indemnification provided for
in this
Section 7
is applicable in accordance with its terms but for any reason is held to be
unavailable
to or
insufficient to hold harmless an indemnified party under paragraphs (a), (b)
and
(c) of this Section 7 in respect of any losses, claims, liabilities,
expenses and damages referred to therein, then each applicable indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to
the
amount paid or payable (including any investigative, legal and other expenses
reasonably incurred in connection with, and any amount paid in settlement of,
any action, suit or proceeding or any claim asserted, but after deducting any
contribution received by the Company from persons other than the Underwriters,
such as persons who control the Company within the meaning of the Act, officers
of the Company who signed the Registration Statement and directors of the
Company, who also may be liable for contribution) by such indemnified party
as a
result of such losses, claims, liabilities, expenses and damages in such
proportion as shall be appropriate to reflect the relative benefits received
by
the Company, on the one hand, and the Underwriters, on the other hand. The
relative benefits received by the Company, on the one hand, and the
Underwriters, on the other hand, shall be deemed to be in the same proportion
as
the total net proceeds from the offering (before deducting expenses) received
by
the Company bear to the total underwriting discounts and commissions received
by
the Underwriters, in each case as set forth in the table on the cover page
of
the Prospectus. If, but only if, the allocation provided by the foregoing
sentence is not permitted by applicable law, the allocation of contribution
shall be made in such proportion as is appropriate to reflect not only the
relative benefits referred to in the foregoing sentence but also the relative
fault of the Company, on the one hand, and the Underwriters, on the other hand,
with respect to the statements or omissions that resulted in such loss, claim,
liability, expense or damage, or action in respect thereof, as well as any
other
relevant equitable considerations with respect to such offering. Such relative
fault shall be determined by reference to whether the 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 Representatives
on
behalf of the Underwriters, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Underwriters agree that it would
not
be just and equitable if contributions pursuant to this Section 7(d) were to
be
determined by pro rata allocation (even if the Underwriters were treated as
one
entity for such purpose) or by any other method of allocation that does not
take
into account the equitable considerations referred to herein. The amount paid
or
payable by an indemnified party as a result of the loss claim, liability,
expense or damage, or action in respect thereof, referred to above in this
Section 7(d) shall be deemed to include, for purposes of this Section 7(d),
any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7(d), no Underwriter shall be
required to contribute any amount in excess of the underwriting discounts
received by it and no person found guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) will be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters’ obligations to contribute as provided in
this Section 7(d) are several in proportion to their respective underwriting
obligations and not joint. For purposes of this Section 7(d), any person who
controls a party to this Agreement within the meaning of the Act will have
the
same rights to contribution as that party, and each officer of the Company
who
signed the Registration Statement will have the same rights to contribution
as
the Company, subject in each case to the provisions hereof. Any party entitled
to contribution, promptly after receipt of notice of commencement of any action
against any such party in respect of which a claim for contribution may be
made
under this Section 7(d), will notify any such party or parties from whom
contribution may be sought, but the omission so to notify will not relieve
the
party or parties from whom contribution may be sought from any other obligation
it or they may have under this Section 7(d). No party will be liable for
contribution with respect to any action or claim settled without its written
consent (which consent will not be unreasonably withheld).
(e) The
indemnity and contribution agreements
contained in this Section 7 and the representations and warranties of the
Company contained in this Agreement shall remain operative and in full force
and
effect regardless of (i) any investigation made by or on behalf of the
Underwriters, (ii) acceptance of any of the Shares and payment therefor, or
(iii) any termination of this Agreement.
8. Reimbursement
of Certain Expenses. In
addition to its other obligations under Section 7(a) of this Agreement, the
Company hereby agrees to reimburse the Underwriters on a quarterly basis for
all
reasonable legal and other expenses incurred in connection with investigating
or
defending any claim, action, investigation, inquiry or other proceeding arising
out of or based upon, in whole or in part, any statement or omission or alleged
statement or omission, or any inaccuracy in the representations and warranties
of the Company contained herein or failure of the Company to perform its
obligations hereunder or under law, all as described in Section 7(a),
notwithstanding the absence of a judicial determination as to the propriety
and
enforceability of the obligations under this Section 8 and the possibility
that such payment might later be held to be improper; provided,
however,
that, to
the extent any such payment is ultimately held to be improper, the persons
receiving such payments shall promptly refund them.
16
9. Termination.
The
obligations of the several Underwriters under this Agreement may be terminated
at any time on or prior to the Closing Date (or, with respect to the Option
Shares, on or prior to the Option Closing Date), by notice to the Company from
the Representatives, without liability on the part of any Underwriter to the
Company if, prior to delivery and payment for the Firm Shares or Option Shares,
as the case may be, in the sole judgment of the Representatives,
(i) trading in any of the equity securities of the Company shall have been
suspended or limited by the Commission or by The NASDAQ Stock Market,
(ii) trading in securities generally on the New York Stock Exchange or The
NASDAQ Stock Market shall
have been suspended or limited or minimum or maximum prices shall have been
generally established on such exchange, or additional material governmental
restrictions, not in force on the date of this Agreement, shall have been
imposed upon trading in securities generally by such exchange, by order of
the
Commission or any court or other governmental authority, or by The NASDAQ Stock
Market, (iii) a general banking moratorium shall have been declared by
either federal or New York State authorities
or any material disruption of the securities settlement or clearance services
in
the United States shall have occurred, or (iv) any material adverse change
in the financial or securities markets in the United States or in political,
financial or economic conditions in the United States, any outbreak or material
escalation of hostilities involving the United States, a declaration of a
national emergency or war by the United States, or other major calamity or
crisis, either within or outside the United States, shall
have occurred, the effect of which is such as to make it, in the sole judgment
of the Representatives, impracticable or inadvisable to proceed with completion
of the public offering or the delivery of and payment for the
Shares.
If
this
Agreement is terminated pursuant to this Section 9 hereof, the Company
shall be under no liability to any Underwriter except as provided in Sections
4(i), 7 and 8 hereof; but, if for any other reason the purchase of the Shares
by
the Underwriters is not consummated or if for any reason the Company shall
be
unable to perform its obligations hereunder, the Company will reimburse the
Underwriters for all out-of-pocket expenses (including the fees, disbursements
and other charges of counsel to the Underwriters) incurred by the Underwriters
in connection with the offering of the Shares.
10. Substitution
of Underwriters. If
any
one or more of the Underwriters shall fail or refuse to purchase any of the
Firm
Shares that it or they have agreed to purchase hereunder, and the aggregate
number of Firm Shares that such defaulting Underwriter or Underwriters agreed
but failed or refused to purchase is not more than one-tenth of the aggregate
number of Firm Shares, the other Underwriters shall be obligated, severally
and
not jointly, to purchase the Firm Shares that such defaulting Underwriter or
Underwriters agreed but failed or refused to purchase, in the proportions which
the number of Firm Shares that they have respectively agreed to purchase
pursuant to Section 1 bears to the aggregate number of Firm Shares which
all such non-defaulting Underwriters have so agreed to purchase, or in such
other proportions as the Representatives may specify; provided that in no event
shall the maximum number of Firm Shares that any Underwriter has become
obligated to purchase pursuant to Section 1 be increased pursuant to this
Section 10 by more than one-ninth of such number of Firm Shares without the
prior written consent of such Underwriter. In any such case either the
Representatives or the Company shall have the right to postpone the Closing
Date, but in no event for longer than seven days, in order that the required
changes, if any, in the Registration Statement and the Prospectus or in any
other documents or arrangements may be effected. If any Underwriter or
Underwriters shall fail or refuse to purchase any Firm Shares that it or they
agreed to purchase hereunder and the aggregate number of Firm Shares which
such
defaulting Underwriter or Underwriters agreed but failed or refused to purchase
exceeds one-tenth of the aggregate number of the Firm Shares and arrangements
satisfactory to the Representatives and the Company for the purchase of such
Firm Shares are not made within 48 hours after such default, this Agreement
will terminate without liability on the part of any non-defaulting Underwriter
or the Company for the purchase or sale of any Shares under this Agreement.
Any
action taken pursuant to this Section 10 shall not relieve any defaulting
Underwriter from liability in respect of any default of such Underwriter under
this Agreement.
11. No
Fiduciary Relationship. Notwithstanding
any preexisting relationship, advisory or otherwise, between the parties or
any
oral representations or assurances previously or subsequently made by the
Underwriters and the Company acknowledges and agrees that (i) the purchase
and sale of the Shares pursuant to this Agreement (including the determination
of the terms of the offering of the Shares) is an arm’s-length commercial
transaction between the Company, on the one hand, and the several Underwriters,
on the other hand, (ii) in connection therewith and with the process
leading to such transaction, each Underwriter is acting solely as a principal
and not the agent or fiduciary of the Company, (iii) no Underwriter has
assumed an advisory or fiduciary responsibility in favor of the Company with
respect to the offering contemplated hereby or the process leading thereto
(irrespective of whether such Underwriter has advised or is currently advising
the Company on other matters) or any other obligation to the Company except
the
obligations expressly set forth in this Agreement, (iv) the Underwriters and
their respective affiliates may be engaged in a broad range of transactions
that
involve interests that differ from those of the Company and have no obligation
to disclose or account to the Company for any of such differing interests,
and
(v) the Company has consulted its own legal, tax, accounting and financial
advisors to the extent it deemed appropriate. The Company hereby agrees
that it will not claim that the Underwriters, or any of them, have rendered
advisory services of any nature or respect, or owe a fiduciary or similar duty
to the Company in connection with such transaction or the process leading
thereto.
17
12. Miscellaneous.
Notice
given pursuant to any of the provisions of this Agreement shall be in writing
and, unless otherwise specified, shall be mailed or delivered (a) if to the
Company, at the office of the Company, 000 Xxxxxx Xxxx, Xxxxx 000, Xxxx
Xxxxx, Xxxxxxx 00000, Attention: Chief Executive Officer, with a copy to Xxx
Xxxxxx, Xxxxxx & Xxxxxxx LLP, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, or
(b) if to the Underwriters, to the Representatives at the offices of
Xxxxxxx & Company, LLC, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Corporate Finance Department, with a copy to Xxxxxxxxx X. Callori,
Choate, Hall & Xxxxxxx LLP, Xxx Xxxxxxxxxxxxx Xxxxx, Xxxxxx, Xxxxxxxxxxxxx
00000. Any such notice shall be effective only upon receipt. Any notice under
Section 9 or 10 may be made by telecopier or telephone, but if so made
shall be subsequently confirmed in writing.
This
Agreement has been and is made solely for the benefit of the several
Underwriters, the Company and the controlling persons, directors and officers
referred to in Section 7 and their respective successors and assigns, and
no other person shall acquire or have any right under or by virtue of this
Agreement. The term “successors and assigns” as used in this Agreement shall not
include a purchaser, as such purchaser, of Shares from any of the several
Underwriters.
Any
action
required
or permitted to be made by the Representatives under this Agreement may be
taken
by them jointly or by Xxxxxxx & Company, LLC.
This
Agreement
shall be
governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and to be performed entirely within such
State.
This
Agreement
may be
signed in counterparts with the same effect as if the signatures thereto and
hereto were upon the same instrument.
In
case
any provision in this Agreement shall be invalid, illegal or unenforceable,
the
validity, legality and enforceability of the remaining provisions shall not
in
any way be affected or impaired thereby.
Each
of the Company
and
the Underwriters hereby waives any right it may have to a trial by jury in
respect of any claim based upon or arising out of this Agreement or the
transactions contemplated hereby.
18
Please
confirm
that the
foregoing correctly sets forth the agreement among the Company and the several
Underwriters.
Very
truly yours,
|
|||
By:
|
/s/
Xxxxx Xxxxx
|
||
Name:
|
Xxxxx
Xxxxx
|
||
Title:
|
Chief
Financial Officer
|
Confirmed
as of the date first
above
mentioned:
Xxxxxxx &
Company, LLC
Xxxxxxxx
Inc.
Acting
on
behalf of themselves
and
as
the Representatives of
the
other
several Underwriters
named
in
Schedule I hereto.
By: Xxxxxxx
& Company, LLC
[Signature
Page to Underwriting Agreement]
SCHEDULE
I
UNDERWRITERS
Underwriters
|
Number
of Firm
Shares
to be Purchased
|
|||
Xxxxxxx &
Company, LLC
|
9,000,000
|
|||
Xxxxxxxx Inc. |
6,000,000
|
|||
Total
|
15,000,000
|
2
SCHEDULE
II
Issuer
General Use Free Writing Prospectuses:
|
None
|
Permitted
Free Writing Prospectuses:
|
None
|
Additional
Documents Incorporated by Reference:
|
The
Company’s Current Report on Form 8-K filed September 5,
2007
|
The
Company’s Current Report on Form 8-K filed September 19,
2007
|
3
SCHEDULE
III
FORM
OF LOCK-UP AGREEMENT
Xxxxxxx
& Company, LLC
Xxxxxxxx
Inc.
c/o
Needham & Company, LLC
000
Xxxx
Xxxxxx
Xxx
Xxxx,
XX 00000
Re: Airspan
Networks Inc. (the “Company”)
Ladies
and Gentlemen:
The
undersigned is an owner of record or beneficially of certain shares of Common
Stock of the Company (“Common Stock”) or securities convertible into or
exchangeable or exercisable for Common Stock. The Company proposes to carry
out
a public offering of Common Stock (the “Offering”) for which you will act as
underwriters. The undersigned recognizes that the Offering will be of benefit
to
the undersigned and will benefit the Company. The undersigned acknowledges
that
you are relying on the representations and agreements of the undersigned
contained in this letter in carrying out the Offering and in entering into
underwriting arrangements with the Company with respect to the
Offering.
In
consideration of the foregoing, the undersigned hereby agrees that during the
period commencing on the date hereof and continuing through the close of trading
on the date 90 days after the date of the Prospectus Supplement (the
“Lock-Up Period”), the undersigned will not, without the prior written consent
of Xxxxxxx & Company, LLC (“Xxxxxxx”) (which consent may be withheld in its
sole discretion), directly or indirectly, sell, offer, contract or grant any
option to sell (including without limitation any short sale), pledge, transfer,
establish an open “put equivalent position” or liquidate or decrease a “call
equivalent position” within the meaning of Rule 16a-1(h) under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise dispose of
or transfer (or enter into any transaction which is designed to, or might
reasonably be expected to, result in the disposition of) including the filing
on
or after the date hereof (or participation in the filing of) of a registration
statement with the Securities and Exchange Commission in respect of, any shares
of Common Stock, options or warrants to acquire shares of Common Stock, or
securities exchangeable or exercisable for or convertible into shares of Common
Stock currently or hereafter owned either of record or beneficially (as defined
in Rule 13d-3 under the Exchange Act) by the undersigned, or publicly
announce an intention to do any of the foregoing; provided,
however, that the foregoing shall not prohibit (a) any distribution by a
partnership (or other pass-through entity) to its partners (or the equivalent),
(b) transfers of shares of Common Stock or any security convertible into Common
Stock by will or intestacy to the undersigned’s legal representative, heir or
legatee, (c) transfers of shares of Common Stock or any security convertible
into Common Stock as a bona fide gift or gifts, (d) transfers of shares of
Common Stock or any security convertible into Common Stock to any trust for
the
benefit of the undersigned or the undersigned’s immediate family or (e) the
execution and delivery of a plan for trading shares of Common Stock in
accordance with Rule 10b5-1 under the Exchange Act, provided further, that
(x)
in the case of any transfer or distribution pursuant to clauses (a) through
(d),
(1) each donee or distributee shall sign and deliver to Xxxxxxx a lock-up letter
in the form of this letter and (2) such transfer is not required to be reported
during the Lock-Up Period, and the undersigned does not otherwise voluntarily
report such transfer during the Lock-Up Period, in any public report with the
Securities and Exchange Commission under Section 16(a) of the Exchange Act,
reporting a reduction in beneficial ownership of shares of Common Stock during
the Lock-Up Period and (y) in the case of clause (e), no sale or transfer of
any
shares of Common Stock under such trading plan shall be effected during the
Lock-Up Period. In
addition, the undersigned agrees that, without the prior written consent of
Xxxxxxx, it will not, during the Lock-Up Period, make any demand for or exercise
any right with respect to, the registration of any shares of Common Stock or
any
security convertible into or exercisable or exchangeable for Common
Stock.
4
Notwithstanding
the foregoing, if (i) the Company issues an earnings release or material news,
or a material event relating to the Company occurs, during the last 17 days
of
the Lock-Up Period, or (ii) prior to the expiration of the Lock-Up Period,
the
Company announces that it will release earnings results during the 16-day period
beginning on the last day of the Lock-Up Period, the restrictions imposed by
this agreement shall continue to apply until the expiration of the 18-day period
beginning on the date of the issuance of the earnings release or the occurrence
of the material news or material event, unless Xxxxxxx waives, in writing,
such
extension. The undersigned hereby acknowledges that the Company has agreed
in
the Underwriting Agreement to provide written notice of any event that would
result in an extension of the Lock-Up Period pursuant to this paragraph to
the
undersigned and agrees that any such notice properly delivered will be deemed
to
have given to, and received by, the undersigned. The undersigned hereby further
agrees that, prior to engaging in any transaction or taking any other action
that is subject to the terms of this agreement during the period from the date
of this agreement to and including the 34th day following the expiration of
the
initial Lock-Up Period, it will give notice thereof to the Company and will
not
consummate such transaction or take any such action unless it has received
written confirmation from the Company that the Lock-Up Period (as such may
have
been extended pursuant to this paragraph) has expired. The
undersigned also agrees and consents to the entry of stop transfer instructions
with the Company’s transfer agent and registrar against the transfer of shares
of Common Stock or securities convertible into or exchangeable or exercisable
for Common Stock held by the undersigned except in compliance with the foregoing
restrictions.
This
Agreement shall terminate and be of no further force or effect in the event
the
Offering is not consummated on or before November 1, 2007. If the
Underwriting Agreement has not been executed and the Company has informed
Xxxxxxx in writing that the Company is terminating the Offering, this Agreement
shall terminate immediately upon such date and be of no further force or
effect.
With
respect to the Offering only, the undersigned waives any registration rights
relating to registration under the Securities Act of any Common Stock owned
either of record or beneficially by the undersigned for sale in the Offering,
including any rights to receive notice of the Offering.
5
This
agreement is irrevocable and will be binding on the undersigned and the
respective successors, heirs, personal representatives, and assigns of the
undersigned.
Printed Name of Holder | ||
By: | ||
Signature
|
6