MASTER SELECTED DEALERS AGREEMENT
---------------------------------
April 3, 2002
Xxxxxx Xxxxxx & Co., Inc.
Xxxxxx Xxxxxx Tower
00 Xxxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxxx 00000
Ladies and Gentlemen:
1. GENERAL.
-------
We understand that Xxxxxx Xxxxxx & Company, Inc., a division of Regions
Financial Corporation, ("Xxxxxx Xxxxxx") is entering into this Master
Selected Dealers Agreement ("Agreement") in counterparts with us and
other firms who may participate as dealers in offerings of securities
in which Xxxxxx Xxxxxx is acting as representative ("Representative")
of the underwriters comprising the underwriting syndicate or as one of
the Representatives of the underwriters. Whether or not we have
executed this Agreement, this Agreement shall apply to any offering of
securities in which we act as a Selected Dealer (as defined below).
At or before the time of an offering, you will advise us, to the extent
applicable, of the expected offering date, the expected closing date,
the initial public offering price, the interest or dividend rate (or
the method by which such rate is to be determined), the conversion
price (if applicable), the selling concession, the reallowance, the
time of release of securities for sale to the public, the time at which
subscription books will be opened, the amount, if any, of securities
reserved for purchase by Selected Dealers, the period of such
reservation and the amount of securities to be allotted to us. Such
information shall be deemed to be a part of this Agreement and this
Agreement shall become binding with respect to our participation as a
Selected Dealer in an offering of securities following our receipt of
such information. If we have not previously executed this Agreement, by
our purchase of securities in an offering covered by this Agreement we
shall be deemed to be signatories of this Agreement with respect to
such offering.
The securities to be purchased in any offering of securities in which
we agreed to participate as a Selected Dealer pursuant to this
Agreement, including any guarantees relating to such securities or any
other securities into which such securities are convertible or for
which such securities are exercisable or exchangeable and any
securities that may be purchased upon exercise of an over-allotment
option, are hereinafter referred to as the "Securities". The issuer or
issuers of the Securities are hereinafter referred to as the "Issuer".
The parties on whose behalf the Representatives execute the
underwriting or purchase agreement or any associated terms or similar
agreement with the Issuer or any selling security holders (each a
"Seller" or any amendment or terms or supplement thereto)
(collectively, the "Underwriting Agreement") with respect to an
offering of Securities in which we agree to participate as a Selected
Dealer pursuant to this Agreement are hereinafter referred to as the
"Underwriters". The parties who agree to participate in such offering
as selected dealers are hereinafter referred to as "Selected Dealers".
References herein to statutory sections, rules, regulations, forms and
interpretive materials shall be deemed to include any successor
provisions.
The following provisions of this Agreement shall apply separately to
each offering of Securities.
2. ACCEPTANCE AND PURCHASE.
-----------------------
The offer to Selected Dealers will be made on the basis of a
reservation of Securities and an allotment against subscriptions. Any
application for additional Securities will be subject to rejection in
whole or in part. Subscription books may be closed by the
Representatives at any time in the Representatives' discretion without
notice and the right is reserved to reject any subscription in whole or
in part. We agree to purchase as principal the amount of Securities
allotted to us by the Representatives.
3. OFFERING MATERIALS.
------------------
(a) We understand that if registration of the offer and sale of the
Securities as contemplated by the Underwriting Agreement is required
under the Securities Act of 1933, as amended (the "Securities Act"),
the Representatives will, at our request, make available to us, as soon
as practicable after sufficient quantifies hereof are made available to
them by the Issuer, copies of the prospectus or supplemental prospectus
(excluding any documents incorporated by reference therein) to be used
in connection with the offering of the Securities in such number as we
may reasonably request. As used herein, "Prospectus" means the form of
prospectus (including any supplements and any documents incorporated by
reference therein) authorized for use in connection with such offering.
(b) We understand that if the offer and sale of the Securities are
exempt from the registration requirements of the Securities Act, no
registration statement will be filed with the Securities and Exchange
Commission (the "Commission"). In such case, the Representatives will,
at our request, make available to us, as soon as practicable after
sufficient quantifies thereof are made available to them by the Issuer,
copies in such number as we may reasonably request of any final
offering circular or other offering materials to be used in connection
with the offering of the Securities. As used herein, `Offering
Circular" means the offering circular or other offering materials, as
it or they may be amended or supplemented, authorized for use in
connection with such offering. The Prospectus or Offering Circular, as
the case may be, relating to an offering of Securities is herein
referred to as the "Offering Document".
(c) We agree that in purchasing Securities we will rely upon no
statement whatsoever, written or oral, other than the statements in the
Offering Document delivered to us by the Representatives and any
documents incorporated by reference therein. We understand that we are
not authorized to give any information or make any representation not
contained in the Offering Document or in any document incorporated by
reference therein, in connection with the offering of the Securities.
We agree that, if requested by the Representatives, we will furnish a
copy of any amendment or supplement to any preliminary or final
Offering Document to each person to whom we have furnished a previous
preliminary or final Offering Document. Our purchase of Securities
registered under the Securities Act shall constitute our confirmation
that we have delivered, and our agreement that we will deliver, all
preliminary and final Prospectuses required for compliance with Rule
15c2-8 under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Our purchase of Securities exempt from registration
under the Securities Act shall constitute (i) our confirmation that we
have delivered, and our agreement that we will deliver, all preliminary
and final Offering Circulars required for compliance with the
applicable Federal and state laws and the applicable rules and
2
regulations of any regulatory body promulgated thereunder or the rules
of any self-regulatory organization governing the use and distribution
of offering circulars by underwriters, and (ii) to the extent
consistent with such laws, rules and regulations, our confirmation that
we have delivered and our agreement that we will deliver all
preliminary and final Offering Circulars that would be required if Rule
15c2-8 under the Exchange Act applied to such offering.
4. OFFERING OF THE SECURITIES.
--------------------------
(a) The offering of the Securities is made subject to the conditions
referred to in the Offering Document and to the terms and conditions
set forth in this Agreement. After the public offering of the
Securities has commenced, you may charge the public offering price, the
selling concession and the reallowance to dealers. Any of the
Securities purchased by us pursuant to this Agreement are to be
reoffered by us, subject to their receipt and acceptance by the
Representatives, to the public at the initial public offering price,
subject to the terms of this Agreement and the Offering Document.
Except as otherwise provided herein, the Securities shall not be
offered or sold by us below the initial public offering price before
the termination of the effectiveness of this Agreement with respect to
the offering of such Securities, except that a reallowance from the
initial public offering price of not in excess of the amount set forth
in the Invitation may be allowed to any Selected Dealer that (i) agrees
that such amount is to be retained and not reallowed in whole or in
part and (ii) makes the representations contained in Section 14.
(b) The Representatives as such and, with the Representative's consent,
any Underwriter may buy Securities from, or sell Securities to, any of
the Selected Dealers or any of the Underwriters, and any Selected
Dealer may buy Securities from, or sell Securities to, any other
Selected Dealer or any Underwriter, at the initial public offering
price less all or any part of the concession to Selected Dealers.
(c) No expenses shall be charged to Selected Dealers. A single transfer
tax upon the sale of the Securities by the respective Underwriters to
us will be paid by such Underwriters when such Securities are delivered
to us. However, we shall pay any transfer tax on sales of Securities by
us and shall pay our proportionate share of any transfer tax or other
tax (other than the single transfer tax described above) in the event
that any such tax shall from time to time be assessed against us and
other Selected Dealers as a group or otherwise.
5. STABILIZATION AND OVER-ALLOTMENT.
--------------------------------
The Representatives may, with respect to any offering of Securities, be
authorized to over-allot, purchase and sell Securities for long or
short accounts and to stabilize or maintain the market price of the
Securities. We agree that, upon the Representatives' request at any
time and from time to time before termination of the effectiveness of
this Agreement with respect to an offering of Securities, we will
report the amount of Securities purchased by us pursuant to such
offering which then remain unsold by us and will, upon the
Representatives' request at any such time, sell to the Representatives
for the account of one or more Underwriters such amount of such unsold
Securities as the Representatives may designate at the initial public
offering price less an amount to be determined by the Representatives
not in excess of the Selected Dealers' concession.
6. NET CAPITAL.
-----------
We represent that the incurrence by us of our obligations hereunder in
connection with the offering of the Securities will not place us in
violation of Rule 15c3-1 under the Exchange Act, or of any similar
3
provisions of any applicable rules or regulations of any other
regulatory authority or self-regulatory organization.
7. REPURCHASE OF SECURITIES NOT EFFECTIVELY PLACED.
-----------------------------------------------
In recognition of the importance of distributing the Securities to bona
fide investors, we agree that if prior to the later of (a) the
completion of the distribution of the Securities covered by this
Agreement or (b) the covering by Xxxxxx Xxxxxx (acting as a
Representative of the Underwriters) of any short position created by
the Representatives for the accounts of the Underwriters, Xxxxxx Xxxxxx
purchases or contracts to purchase in the open market or otherwise any
of the Securities delivered to any Selected Dealer, the Selected Dealer
agrees to repay to Xxxxxx Xxxxxx for the accounts of the Underwriters
the amount of the selling concession allowed to such Dealer plus
brokerage commission or dealer's xxxx-up and any transfer taxes paid in
connection with such purchase.
8. PAYMENT AND DELIVERY.
--------------------
We agree that Securities purchased by us pursuant to this Agreement
shall be paid for in an amount equal to the initial public offering
price therefore or, if the Representatives shall so advise us, at such
initial public offering price less the Selected Dealers' concession
with respect thereto, at or before 9:00 a.m., Memphis time (Central
Time), on the date on which the Underwriters are required to purchase
the Securities, by delivery to the Representatives at the office of
Xxxxxx Xxxxxx & Co., Inc., Xxxxxx Xxxxxx Tower, 00 Xxxxx Xxxxxx,
Xxxxxxx, Xxxxxxxxx 00000 (or at such other place as you may advise), of
payment by certified or bank cashier's check payable in Clearing House
Funds or other next day funds (or such other funds as you may advise)
payable to the order of Xxxxxx Xxxxxx & Co., Inc. If payment is made
for Securities purchased by us at the initial public offering price,
the Selected Dealers' concession to which we may be entitled will be
paid to us upon termination of the effectiveness of this Agreement with
respect to the offering of such Securities. Notwithstanding the
foregoing provision of this Section, if transactions in the Securities
can be settled through the facilities of The Depository Trust Company
or any other depository or similar facility, if we are a member, you
are authorized, in your discretion, to make appropriate arrangements
for payment and/or delivery through its facilities of the Securities to
be purchased by us, or, if we are not a member, settlement may be made
through a correspondent that is a member pursuant to our timely
instructions.
9. BLUE SKY AND OTHER QUALIFICATIONS.
---------------------------------
It is understood and agreed that the Representatives assume no
responsibility or obligation with respect to the right of any Selected
Dealer or other person to sell the Securities in any jurisdiction,
notwithstanding any information the Representatives may furnish in that
connection.
10. TERMINATION.
-----------
(a) This Agreement may be terminated by either party hereto upon five
(5) business day's written notice to the other party; provided,
however, that any notice received after this Agreement shall have
become effective (as provided in Section 1 of this Agreement) with
respect to any offering of Securities and shall terminate with respect
to such offering and all previous offerings in accordance with the
provisions of paragraph (b) of this Section.
(b) With respect to each offering of Securities pursuant to this
Agreement, this Agreement shall terminate 30 full days after the
initial public offering date of the Securities, or at such earlier date
as you may determine in your discretion, or may be extended by you, in
your discretion, for an additional period or periods not exceeding an
aggregate of 30 days for each offering, except as otherwise provided
4
herein, and no obligations on the part of the Representatives will be
implied hereby or inferred herefrom.
(c) We understand and agree that we are to act as principal in
purchasing Securities and we are not authorized to act as agent for the
Issuer, any Seller or any Underwriter in offering the Securities to the
public or otherwise.
(d) Nothing herein contained shall constitute us an association, or
partners, with the other Selected Dealers, the Underwriters or
Representatives, or, except as otherwise provided herein, render us
liable for the obligations of any other Selected Dealers, the
Underwriters or the Representatives. If the Selected Dealers among
themselves or with the Underwriters or the Representatives are deemed
to constitute a partnership for Federal income tax purposes, then each
Selected Dealer elects to be excluded from the application of
Subchapter K, Chapter 1, Subtitle A, of the Internal Revenue Code of
1986, as amended, and agrees not to take any position inconsistent with
such election. The Representatives are authorized, in their discretion,
to execute on behalf of the Selected Dealer such evidence of such
election as may be required by the Internal Revenue Service.
11. AMENDMENT.
---------
This Agreement may be supplemented or amended by you by notice to us by
written communication and, except for supplements or amendments
included with the information relating to a particular offering of
Securities, any such supplement or amendment to this Agreement shall be
effective with respect to any offering to which this Agreement applies
after the date of such supplement or amendment. Each reference to "this
Agreement" herein shall, as appropriate, be to this Agreement as so
supplemented and amended.
12. NOTICES.
-------
Any notices from the Representatives to us shall be deemed to have been
duly given if mailed, hand-delivered, telephoned (and confirmed in
writing), telegraphed, telecopied or faxed to us at the address set
forth at the end of this Agreement, or at such other address,
telephone, telecopy, or fax as we shall have advised you in writing.
Any notice from us to the Representatives shall be deemed to have been
duly given if mailed, hand-delivered, telephoned (and confirmed in
writing), telegraphed, telecopied, or faxed to:
Xxxxxx Xxxxxx & Co., Inc.
Xxxxxx Xxxxxx Tower
00 Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxxx 00000
Attention: Equity Syndicate Department
Telephone: 901/529.5357
Fax: 901/579.4388
(or to such other address, telephone, telecopy, or fax as we shall be
notified by the Representatives). Communications by telegram, telecopy,
fax or other written form shall be deemed to be "written"
communications.
13. NASD MATTERS.
------------
We represent that we are either (a) a member in good standing of the
NASD who agrees to comply with all applicable rules of the NASD,
including without limitation, the NASD's Interpretation with Respect to
Free-Riding and Withholding (IM-2110-1) and NASD Rules 2730, 2740 and
5
2750, or (b) a foreign bank or dealer not eligible for membership in
the NASD who hereby agrees to make no sales within the United States,
its territories or its possessions nor to persons who are citizens
thereof or residents therein, and in making the sales to comply with
the above-mentioned NASD Interpretation (IM-2110-1) and NASD Rules
2730, 2740 and 2750 as if we were an NASD member and to comply with
NASD Rule 2420 as that section applies to a nonmember foreign dealer.
We confirm that we are familiar with NASD Rule IM-2110-1, and we agree
to comply with Rule IM-2110-1 in offering and selling Securities to the
public. By our participation in an offering of Securities, we further
represent that neither we nor any of our directors, officers, partners
or "persons associated with" us (as defined in the NASD's rules), nor,
to our knowledge any "related person" (as defined in NASD Rule 2710),
have participated or intend to participate in any transaction or
dealing as to which documents or information are required to be filed
with the NASD pursuant to Rule 2710.
14. COMPLIANCE WITH APPLICABLE LAW, RULES AND REGULATIONS.
-----------------------------------------------------
We agree that in selling Securities pursuant to any offering (which
agreement shall also be for the benefit of the Issuer or other Seller
of such Securities) we will comply with all applicable laws, rules and
regulations, including the applicable provisions of the Securities Act
and the Exchange Act, the applicable rules and regulations of the
Commission thereunder, the applicable rules and regulations of the NASD
or any securities exchange having jurisdiction over the offering, and
in the case of an offering referred to in Section 3(b) hereof, the
applicable law, rules and regulations of any applicable regulatory
body.
15. SUCCESSORS AND ASSIGNS.
----------------------
This Agreement shall be binding upon, and inure to the benefit of, the
parties hereto and other persons specified in Section 1 hereof, and the
respective successors and assigns of each of them.
16. GOVERNING LAW.
-------------
This Agreement shall be governed by, and construed in accordance with,
the law of the State of Tennessee, without giving effect to the choice
of law or conflicts of law principles thereof.
Please confirm by signing and returning to us the enclosed copy of this
Agreement.
Very truly yours,
XXXXXX XXXXXX & CO., INC.
By:_______________________________________
Name: Xxxxx X. Xxxxx
Title: Managing Director
CONFIRMED:__________________, 2002
__________________________________________
DEALER
By:_______________________________________
Name:
Title:
6
Address:_______________________________________
_______________________________________
_______________________________________
Telephone:_____________________________________
Fax:___________________________________________
