Argon ST, Inc. Shares of Common Stock UNDERWRITING AGREEMENT
EXHIBIT 1.1
Argon ST, Inc.
Shares of Common Stock
Shares of Common Stock
December 12, 2005
FRIEDMAN, BILLINGS, XXXXXX & CO., INC.
as Representative of the several Underwriters
c/o Friedman, Billings, Xxxxxx & Co., Inc.
0000 00xx Xxxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
as Representative of the several Underwriters
c/o Friedman, Billings, Xxxxxx & Co., Inc.
0000 00xx Xxxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Dear Sirs:
Argon ST, Inc., a Delaware corporation (the “Company”), and certain stockholders of the
Company listed on Schedule I hereto (the “Selling Stockholders”), each confirms its agreement with
each of the Underwriters listed on Schedule II hereto (collectively, the “Underwriters”), for whom
Friedman, Billings, Xxxxxx & Co., Inc. is acting as representative (in such capacity, the
“Representative”), with respect to (i) the sale by the Company and the Selling Stockholders of an
aggregate of 2,300,000 shares (the “Initial Shares”) of Common Stock, par value $.01 per share, of
the Company (“Common Stock”) in the respective numbers of shares set forth opposite the names of
the Company and each such Selling Stockholder in Schedule I hereto that is selling Initial Shares
hereunder (each, a “Firm Selling Stockholder”), and the purchase by the Underwriters, acting
severally and not jointly, of the respective numbers of shares of Common Stock set forth opposite
the names of each of the Underwriters listed in Schedule II hereto, and (ii) the grant of the
option described in Section 1(b) hereof to purchase all or any part of 345,000 additional shares of
Common Stock to cover over-allotments (the “Option Shares”), if any, in the respective numbers of
shares of Common Stock set forth opposite the names of each Selling Stockholder in Schedule I
hereto that is selling Option Shares hereunder (each, an “Option Selling Stockholder” and, together
with the Firm Selling Stockholders, the “Selling Stockholders”), to the Underwriters, acting
severally and not jointly, in the respective numbers of shares of Common Stock set forth opposite
the names of the Underwriters in Schedule II hereto. The Initial Shares to be purchased by the
Underwriters and all or any part of the Option Shares subject to the option described in Section
l(b) hereof are hereinafter called, collectively, the “Shares.”
The Company understands that the Underwriters propose to make a public offering of the Shares
as soon as the Underwriters deem advisable after this Underwriting Agreement (the “Agreement”) has
been executed and delivered.
The Company has filed with the Securities and Exchange Commission (the “Commission”), a
registration statement on Form S-3 (No. 333-128211) and a related preliminary prospectus, for the
registration of the Shares under the Securities Act of 1933, as amended (the “Securities Act”), and
the rules and regulations thereunder (the “Securities Act Regulations”). The Company has prepared
and filed such amendments to the registration statement and such amendments or supplements to the
related preliminary prospectus as may have been required to the date hereof, and will file such
additional amendments or supplements as may hereafter be required. The registration statement has
been declared effective under the Securities Act by the Commission. The registration statement as
amended at the time it was declared effective by the Commission (and, if the Company files a
post-effective amendment to such registration statement that becomes effective prior to the Closing
Time (as defined below), such registration statement as so amended) and including all information
deemed to be a part of the registration statement pursuant to incorporation by reference, Rule 430A
of the Securities Act Regulations or otherwise, is hereinafter called the “Registration Statement.”
Any registration statement filed pursuant to Rule 462(b) of the Securities Act Regulations is
hereinafter called the “Rule 462(b) Registration Statement,” and after such filing the term
“Registration Statement” shall include the 462(b) Registration Statement. Each prospectus included
in the Registration Statement, or amendments thereof or supplements thereto, before it was declared
effective by the Commission under the Securities Act, and any preliminary form of prospectus filed
with the Commission by the Company with the consent of the Underwriters pursuant to Rule 424(a) of
the Securities Act Regulations (including all information incorporated by reference in either such
prospectus, is hereinafter called the “Preliminary Prospectus.” The term “Prospectus” means the
final prospectus, as first filed with the Commission pursuant to paragraph (1) or (4) of Rule
424(b) of the Securities Act Regulations, and any amendments thereof or supplements thereto. The
Commission has not issued any order preventing or suspending the use of any Preliminary Prospectus.
The term “Disclosure Package” means (i) the Preliminary Prospectus, as most recently amended
or supplemented immediately prior to the date hereof, (ii) the Issuer Free Writing Prospectuses (as
defined below), if any, identified in Schedule III hereto, (iii) any other Free Writing Prospectus
(as defined below) that the parties hereto shall hereafter expressly agree to treat as part of the
Disclosure Package and (iv) the information set forth in Schedule IV hereto. The Underwriters have
informed the Company that the Underwriters have or will orally provide the information set forth on
Schedule IV hereto to prospective purchasers of the Shares prior to confirming sales of such Shares
to such prospective purchasers.
The term “Issuer Free Writing Prospectus” means any issuer free writing prospectus, as defined
in Rule 433 of the Securities Act Regulations.
The term “Free Writing Prospectus” means any free writing prospectus, as defined in Rule 405
of the Securities Act Regulations.
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Each Selling Stockholder has executed and delivered a Custody Agreement and a Power of
Attorney in the form attached hereto as Exhibit A (collectively, the “Custody Agreement and Power
of Attorney”) pursuant to which each Selling Stockholder party thereto has placed the Initial
Shares and Option Shares to be sold by it pursuant to this Agreement in custody and appointed the
persons designated therein as attorneys in fact (the “Attorneys”) with the authority to execute and
deliver this Agreement on behalf of such Selling Stockholder and to take certain other actions with
respect thereto and hereto.
The Company, each of the Selling Stockholders and the Underwriters agree as follows:
1. Sale and Purchase:
(a) Initial Shares. Upon the basis of the warranties and representations and other terms and
conditions herein set forth, at the purchase price per share of Common Stock of $27.55, the Company
agrees to sell to the Underwriters the number of Initial Shares set forth in Schedule I opposite
its name and each Selling Stockholder agrees to sell to the Underwriters the number of Initial
Shares set forth in Schedule I opposite such Selling Stockholder’s name, and each Underwriter
agrees, severally and not jointly, to purchase from the Company and the Firm Selling Stockholders
the number of Initial Shares set forth in Schedule II opposite such Underwriter’s name, plus any
additional number of Initial Shares which such Underwriter may become obligated to purchase
pursuant to the provisions of Section 8 hereof, subject in each case, to such adjustments among the
Underwriters as the Representative in its sole discretion shall make to eliminate any sales or
purchases of fractional shares.
(b) Option Shares. In addition, upon the basis of the warranties and representations and
other terms and conditions herein set forth, at the purchase price per share of Common Stock set
forth in paragraph (a) above, each Option Selling Stockholder hereby grants an option to the
Underwriters, acting severally and not jointly, to purchase from each Option Selling Stockholder,
all or any part of the Option Shares, plus any additional number of Option Shares which such
Underwriter may become obligated to purchase pursuant to the provisions of Section 8 hereof. The
option hereby granted will expire 30 days after the date hereof and may be exercised in whole or in
part from time to time only for the purpose of covering over-allotments which may be made in
connection with the offering and distribution of the Initial Shares upon notice by the
Representative to the Company and the Attorneys setting forth the number of Option Shares as to
which the several Underwriters are then exercising the option and the time and date of payment and
delivery for such Option Shares. Any such time and date of delivery (an “Option Closing Time”)
shall be determined by the Representative, but shall not be later than three (3) full business days
(or earlier, without the consent of the Company, than two full business days) after the exercise of
such option, nor in any event prior to the Closing Time, as hereinafter defined. If the option is
exercised as to all or any portion of the Option Shares, each Option Selling Stockholder will sell
that
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proportion of the total number of Option Shares then being purchased which the number of
Option Shares set forth in Schedule I opposite the name of such Option Selling Stockholder bears to
the total number of Option Shares, and each of the Underwriters, acting severally and not jointly,
will purchase that proportion of the total number of Option Shares then being purchased which the
number of Initial Shares set forth in Schedule II opposite the name of such Underwriter bears to
the total number of Initial Shares, plus any additional number of Option Shares which such
Underwriter may become obligated to purchase pursuant to the provisions of Section 8 hereof,
subject in each case to such adjustments among the Underwriters as the Representative in its sole
discretion shall make to eliminate any sales or purchases of fractional shares.
2. Payment and Delivery
(a) Initial Shares. The Initial Shares to be purchased by each Underwriter hereunder, in
definitive form, and in such authorized denominations and registered in such names as the
Representative may request upon at least forty-eight hours’ prior notice to the Company and the
Firm Selling Stockholders shall be delivered by or on behalf of the Company and the Firm Selling
Stockholders to the Representative, including, at the option of the Representative, through the
facilities of The Depository Trust Company (“DTC”) for the account of such Underwriter, against
payment by or on behalf of such Underwriter of the purchase price therefor by wire transfer of
Federal (same-day) funds to the account specified to the Representative by the Company and each of
the Firm Selling Stockholders, upon at least forty-eight hours’ prior notice. The Company will
cause the certificates representing the Initial Shares to be made available for checking and
packaging not later than 1:00 p.m. New York City time on the business day prior to the Closing Time
(as defined below) with respect thereto at the office of the Representative, 0000 00xx
Xxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxxx 00000, or at the office of DTC or its designated custodian, as
the case may be (the “Designated Office”). The time and date of such delivery and payment shall be
9:30 a.m., New York City time, on the third (fourth, if pricing occurs after 4:30 p.m., New York
City time) business day after the date hereof (unless another time and date shall be agreed to by
the Representative and the Company). The time and date at which such payment and delivery are
actually made is hereinafter sometimes called the “Closing Time”.
(b) Option Shares. Any Option Shares to be purchased by each Underwriter hereunder, in
definitive form, and in such authorized denominations and registered in such names as the
Representative may request upon at least forty-eight hours’ prior notice to the Company and the
Option Selling Stockholders shall be delivered by or on behalf of the Option Selling Stockholders
to the Representative, including, at the option of the Representative, through the facilities of
DTC for the account of such Underwriter, against payment by or on behalf of such Underwriter of the
purchase price therefor by wire transfer of Federal (same-day) funds to the account specified to
the Representative by each of the Option Selling Stockholders, upon at least forty-eight hours’
prior notice. The Company will cause the certificates representing the Option Shares to be made
available for checking and packaging not later than 1:00 p.m. New York City time on the
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business day prior to the Option Closing Time with respect thereto at the Designated Office.
The time and date of such delivery and payment shall be 9:30 a.m., New York City time, on the date
specified by the Representative in the notice given by the Representative to the Company of the
Underwriters’ election to purchase such Option Shares or on such other time and date as the Company
and the Representative may agree upon in writing.
3. Representations and Warranties of the Company and the Selling Stockholders:
The Company represents and warrants to the Underwriters as of the date hereof, as of the
Closing Time and as of any Option Closing Time (if any), and agree with each Underwriter that:
(a) the Company has an authorized capitalization as set forth in both the Prospectus and the
Disclosure Package; the outstanding shares of capital stock of the Company and each subsidiary of
the Company (each, a “Subsidiary”) have been duly and validly authorized and issued and are fully
paid and non-assessable, and all of the outstanding shares of capital stock of the Subsidiaries are
directly or indirectly owned of record and beneficially by the Company; except as disclosed in both
the Prospectus and the Disclosure Package and, with respect to the Disclosure Package only, except
for options to purchase 481,900 shares of Common Stock granted to employees and directors after
November 11, 2005 and prior to the date hereof, there are no outstanding (i) securities or
obligations of the Company or any of the Subsidiaries convertible into or exchangeable for any
capital stock of the Company or any such Subsidiary, (ii) warrants, rights or options to subscribe
for or purchase from the Company or any such Subsidiary any such capital stock or any such
convertible or exchangeable securities or obligations, or (iii) obligations of the Company or any
such Subsidiary to issue any shares of capital stock, any such convertible or exchangeable
securities or obligation, or any such warrants, rights or options;
(b) each of the Company and the Subsidiaries has been duly incorporated and is validly
existing as a corporation in good standing under the laws of its respective jurisdiction of
incorporation with full corporate power and authority to own its respective properties and to
conduct its respective businesses as described in each of the Registration Statement, the
Prospectus and the Disclosure Package, and, in the case of the Company, to execute and deliver this
Agreement and to consummate the transactions contemplated herein;
(c) the Company and all of the Subsidiaries are duly qualified or licensed and are in good
standing in each jurisdiction in which they conduct their respective businesses or in which they
own or lease real property or otherwise maintain an office and in which the failure, individually
or in the aggregate, to be so qualified or licensed would not reasonably be expected to have a
material adverse effect on the assets, business, operations, earnings, prospects, properties or
condition (financial or otherwise) of the Company and the Subsidiaries taken as a whole, (any such
effect or change, where
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the context so requires, is hereinafter called a “Material Adverse Effect” or “Material
Adverse Change”); except as disclosed in both the Prospectus and the Disclosure Package, no
Subsidiary is prohibited or restricted, directly or indirectly, from paying dividends to the
Company, or from making any other distribution with respect to such Subsidiary’s capital stock or
from repaying to the Company or any other Subsidiary any amounts which may from time to time become
due under any loans or advances to such Subsidiary from the Company or such other Subsidiary, or
from transferring any such Subsidiary’s property or assets to the Company or to any other
Subsidiary; other than as disclosed in both the Prospectus and the Disclosure Package, the Company
does not own, directly or indirectly, any capital stock or other equity securities of any other
corporation or any ownership interest in any partnership, joint venture or other association;
(d) the Company and the Subsidiaries are in compliance in all material respects with all
applicable laws, rules, regulations, orders, decrees and judgments, including those relating to
transactions with affiliates;
(e) neither the Company nor any Subsidiary is in breach of or in default under (nor has any
event occurred which with notice, lapse of time, or both would constitute a breach of, or default
under), its respective organizational documents, or in the performance or observance of any
obligation, agreement, covenant or condition contained in any license, indenture, mortgage, deed of
trust, loan or credit agreement or other agreement or instrument to which the Company or any
Subsidiary is a party or by which any of them or their respective properties is bound, except for
such breaches or defaults which would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect;
(f) the execution, delivery and performance of this Agreement, and consummation of the
transactions contemplated herein will not (A) conflict with, or result in any breach of, or
constitute a default under (nor constitute any event which with notice, lapse of time, or both
would constitute a breach of, or default under), (i) any provision of the organizational documents
of the Company or any Subsidiary, or (ii) any provision of any license, indenture, mortgage, deed
of trust, loan or credit agreement or other agreement or instrument to which the Company or any
Subsidiary is a party or by which any of them or their respective properties may be bound or
affected, or under any federal, state, local or foreign law, regulation or rule or any decree,
judgment or order applicable to the Company or any Subsidiary, except in the case of this clause
(ii) for such breaches or defaults which would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; or (B) result in the creation or imposition of any
lien, charge, claim or encumbrance upon any property or asset of the Company or any Subsidiary;
(g) this Agreement has been duly authorized, executed and delivered by the Company and is a
legal, valid and binding agreement of the Company enforceable in accordance with its terms, except
as may be limited by bankruptcy, insolvency,
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reorganization, moratorium or similar laws affecting creditors’ rights generally, and by
general equitable principles, and except to the extent that the indemnification and contribution
provisions of Section 9 hereof may be limited by federal or state securities laws and public policy
considerations in respect thereof;
(h) no approval, authorization, consent or order of or filing with any federal, state or local
governmental or regulatory commission, board, body, authority or agency is required in connection
with the Company’s execution, delivery and performance of this Agreement, its consummation of the
transactions contemplated herein, and its sale and delivery of the Shares, other than (i) such as
have been obtained, or will have been obtained at the Closing Time or the relevant Option Closing
Time, as the case may be, under the Securities Act and the Securities Exchange Act of 1934 (the
“Exchange Act”) and the rules and regulations thereunder (the “Exchange Act Regulations”), (ii)
such approvals as have been obtained in connection with the approval of the listing of the Shares
on the Nasdaq National Market, (iii) any necessary qualification under the securities or blue sky
laws of the various jurisdictions in which the Shares are being offered by the Underwriters and
(iv) as may be required under the By-laws, rules or regulations of the National Association of
Securities Dealers, Inc. (“NASD”);
(i) each of the Company and the Subsidiaries has all necessary licenses, authorizations,
consents and approvals and has made all necessary filings required under any federal, state or
local law, regulation or rule, and has obtained all necessary authorizations, consents and
approvals from other persons, required in order to conduct their respective businesses as described
in both the Prospectus and the Disclosure Package, except to the extent that any failure to have
any such licenses, authorizations, consents or approvals, to make any such filings or to obtain any
such authorizations, consents or approvals would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect; neither the Company nor any of the Subsidiaries is
required by any applicable law to obtain accreditation or certification from any governmental
agency or authority in order to provide the products and services which it currently provides or
which it proposes to provide as set forth in both the Prospectus and the Disclosure Package, except
for such accreditations or certifications as have been obtained by the Company or its Subsidiaries
and are in full force and effect, and except to the extent the failure to have such accreditations
or certifications would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect; neither the Company nor any of the Subsidiaries is in violation of, in
default under, or has received any written notice regarding a possible violation, default or
revocation of any such license, authorization, consent or approval or any federal, state, local or
foreign law, regulation or rule or any decree, order or judgment applicable to the Company or any
of the Subsidiaries the effect of which would reasonably be expected to have a Material Adverse
Effect; and no such license, authorization, consent or approval contains a materially burdensome
restriction that is not adequately disclosed in each of the Registration Statement, the Prospectus
and the Disclosure Package;
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(j) each of the Registration Statement and any Rule 462(b) Registration Statement has become
effective under the Securities Act and no stop order suspending the effectiveness of the
Registration Statement or any Rule 462(b) Registration Statement has been issued under the
Securities Act and no proceedings for that purpose have been instituted or are pending or, to the
knowledge of the Company are contemplated or threatened, by the Commission; and the Company has
complied with any request on the part of the Commission for additional information with respect to
the Registration Statement or any Rule 462(b) Registration Statement;
(k) the Preliminary Prospectus when filed, and the Registration Statement as of each effective
date and as of the date hereof, complied or will comply, and the Prospectus and any further
amendments or supplements to the Preliminary Prospectus, the Registration Statement or the
Prospectus will, when they become effective or are filed with the Commission, as the case may be,
comply in all material respects with the requirements of the Securities Act and the Securities Act
Regulations;
(l) the Registration Statement, as of each effective date and as of the date hereof, did not,
does not and will not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading; and
the Preliminary Prospectus does not, and the Prospectus or any amendment or supplement thereto will
not, as of the applicable filing date, the date hereof and at the Closing Time and on each Option
Closing Time (if any), contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that the Company makes
no warranty or representation with respect to any statement contained in or omitted from the
Registration Statement, the Preliminary Prospectus or the Prospectus in reliance upon and in
conformity with the information concerning the Underwriters and furnished in writing by or on
behalf of the Underwriters through the Representative to the Company expressly for use therein
(that information being limited to that described in the last sentence of the first paragraph of
Section 9(c) hereof);
(m) as of the date hereof, the Company (i) is subject to the requirement to file reports
pursuant to Section 13 or Section 15(d) of the Exchange Act, (ii) has filed all reports and other
materials required to be filed by Sections 13(a), 14 or 15(d) of the Exchange Act during the
preceding 12 months, (iii) has filed an Annual Report on Form 10-K required under Section 13(a) or
15(d) under the Exchange Act for its most recently completed fiscal year; (iv) is not, and during
the past three years was not (nor was any predecessor), (A) a blank check company as defined in
Rule 419(a)(2) of the Securities Act Regulations, (B) a shell company, other than a business
combination related shell company, each as defined in Rule 405 of the Securities Act Regulations,
or (C) a registrant for an offering of xxxxx stock as defined in Rule 3a51-1 of the Exchange Act
Regulations, and (v) makes its periodic and current reports filed pursuant to Section 13 or Section
15(d) of the Exchange Act readily available and accessible on a web site maintained by or for the
Company and containing information about the Company; each
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document incorporated by reference in the Prospectus and the Disclosure Package, when it
became effective or was filed with the Commission, as applicable, conformed in all material
respects to the requirements of the Securities Act and the Securities Act Regulations, or the
Exchange Act and the Exchange Act Regulations, as applicable, and none of such documents contained
an untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and any further documents so filed and incorporated by
reference in the Prospectus and the Disclosure Package or any further amendment or supplement
thereto, when such documents become effective or are filed with the Commission, as applicable, will
conform in all material respects to the requirements of the Securities Act and the Securities Act
Regulations, or the Exchange Act and the Exchange Act Regulations, as applicable, and will not
include an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading;
(n) on the date of this Agreement, the Disclosure Package did not, and at the time of each
sale of Shares and at the Closing Time and each Option Closing Time, the Disclosure Package will
not, contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however, that the Company makes no warranty or representation with
respect to any statement contained in or omitted from the Disclosure Package in reliance upon and
in conformity with the information concerning the Underwriters and furnished in writing by or on
behalf of the Underwriters through the Representatives to the Company expressly for use therein
(that information being limited to that described in the last sentence of the first paragraph of
Section 9(c) hereof);
(o) each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times
through the completion of the public offering and sale of the Shares did not, does not and will not
include any information that conflicted, conflicts or will conflict with the information contained
in the Registration Statement, including any document incorporated by reference therein that has
not been superseded or modified;
(p) the Company is eligible to use Free Writing Prospectuses in connection with this offering
pursuant to Rules 164 and 433 under the Securities Act; any Free Writing Prospectus that the
Company is required to file pursuant to Rule 433(d) under the Securities Act Regulations has been,
or will be, filed with the Commission in accordance with the requirements of the Securities Act and
the Securities Act Regulations; and each Free Writing Prospectus that the Company has filed, or is
required to file, pursuant to Rule 433(d) under the Securities Act Regulations or that was prepared
by or on behalf of or used by the Company complies or will comply in all material respects with the
requirements of the Securities Act and the Securities Act Regulations;
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(q) except for the Issuer Free Writing Prospectuses identified in Schedule III hereto, if any,
and any electronic road show relating to the public offering of Shares contemplated herein, the
Company has not prepared, used or referred to, and will not, without the Representative’s prior
consent, prepare, use or refer to, any Free Writing Prospectus;
(r) the Preliminary Prospectus, the Prospectus and any Issuer Free Writing Prospectus (to the
extent any such Issuer Free Writing Prospectus was required to be filed with the Commission)
delivered to the Underwriters for use in connection with the public offering of Shares contemplated
herein have been and will be identical to the versions of such documents created to be transmitted
to the Commission for filing via the Electronic Data Gathering Analysis and Retrieval System
(“XXXXX”), except to the extent permitted by Regulation S-T;
(s) there are no actions, suits, proceedings, inquiries or investigations pending, or to the
knowledge of the Company threatened, against the Company or any Subsidiary or any of their
respective officers and directors or to which the properties, assets or rights of any such entity
are subject, at law or in equity, before or by any federal, state, local or foreign governmental or
regulatory commission, board, body, authority, arbitral panel or agency which would reasonably be
expected to result in a judgment, decree, award or order having a Material Adverse Effect;
(t) the consolidated financial statements, including the notes thereto, included in (or
incorporated by reference into) each of the Registration Statement, the Prospectus and the
Disclosure Package present fairly the consolidated financial position of the entities to which such
financial statements relate (the “Covered Entities”) as of the dates indicated and the consolidated
results of operations and changes in financial position and cash flows of the Covered Entities for
the periods specified; such financial statements have been prepared in conformity with generally
accepted accounting principles as applied in the United States and on a consistent basis during the
periods involved and in accordance with Regulation S-X promulgated by the Commission; the financial
statement schedules included in (or incorporated by reference into) the Registration Statement and
the amounts in both the Prospectus and the Disclosure Package under the captions “Summary — Summary
Financial Data” and “Selected Historical Consolidated Financial Data” fairly present the
information shown therein and have been compiled on a basis consistent with the financial
statements included in each of the Registration Statement, the Prospectus and the Disclosure
Package; no other financial statements or supporting schedules are required to be included in the
Registration Statement, the Prospectus or the Disclosure Package; the unaudited pro forma financial
information included in each of the Registration Statement, the Prospectus and the Disclosure
Package complies as to form in all material respects with the applicable accounting requirements of
the Securities Act and the Securities Act Regulations, and management of the Company believes that
the assumptions underlying the pro forma adjustments are reasonable; such pro forma adjustments
have been properly applied to the historical amounts in the compilation of the information and such
information fairly presents with
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respect to the Company and the Subsidiaries, the information purported to be shown therein at
the respective dates and for the respective periods specified; and no other pro forma financial
information is required to be included in (or incorporated by reference into) the Registration
Statement, the Prospectus or the Disclosure Package;
(u) Xxxxx Xxxxxxxx LLP, whose reports on the audited consolidated financial statements of the
Company and the Subsidiaries are filed with the Commission as part of each of the Registration
Statement, the Prospectus and the Disclosure Package or are incorporated by reference therein are
and were during the periods covered by its reports, independent registered public accountants as
required by the Securities Act, the Securities Act Regulations, the Exchange Act and the Exchange
Act Regulations;
(v) subsequent to the respective dates as of which information is given in each of the
Registration Statement, the Prospectus and the Disclosure Package, and except as may be otherwise
stated in such documents, there has not been (A) any Material Adverse Change or any development
that would reasonably be expected to result in a Material Adverse Change, whether or not arising in
the ordinary course of business, (B) any transaction that is material to the Company and the
Subsidiaries taken as a whole, contemplated or entered into by the Company or any of the
Subsidiaries, (C) any obligation, contingent or otherwise, directly or indirectly incurred by the
Company or any Subsidiary that is material to the Company and Subsidiaries taken as a whole or (D)
any dividend or distribution of any kind declared, paid or made by the Company on any class of its
capital stock;
(w) the Shares conform in all material respects to the description thereof included in (or
incorporated by reference into) the Registration Statement, the Prospectus and the Disclosure
Package;
(x) except as disclosed in both the Prospectus and the Disclosure Package, there are no
persons with registration or other similar rights to have any equity or debt securities, including
securities which are convertible into or exchangeable for equity securities, registered pursuant to
the Registration Statement or otherwise registered by the Company under the Securities Act;
(y) the Shares have been duly authorized and, when issued and duly delivered against payment
therefor as contemplated by this Agreement, will be validly issued, fully paid and non-assessable,
free and clear of any pledge, lien, encumbrance, security interest or other claim, and the issuance
and sale of the Shares by the Company is not subject to preemptive or other similar rights arising
by operation of law, under the organizational documents of the Company or under any agreement to
which the Company or any Subsidiary is a party or otherwise;
(z) the Shares have been approved for quotation on the Nasdaq National Market, subject to
official notice of issuance; the Company has taken all necessary actions to ensure that, upon and
at all times after Nasdaq shall have approved the Shares for inclusion, it will be in compliance
with all applicable corporate governance
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requirements set forth in the NASD’s Nasdaq Marketplace Rules that are then in effect and is
taking such steps as are necessary to ensure that it will be in compliance with other applicable
corporate governance requirements set forth in the NASD’s Nasdaq Marketplace Rules not currently in
effect upon the effectiveness of such requirements;
(aa) the Company has not taken, and will not take, directly or indirectly, any action which is
designed to or which has constituted or which might reasonably be expected to cause or result in
stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of the Shares;
(bb) neither the Company nor any of its affiliates (i) is required to register as a “broker”
or “dealer” in accordance with the provisions of the Exchange Act, the Exchange Act Regulations, or
(ii) directly, or indirectly through one or more intermediaries, controls or has any other
association with (within the meaning of Article I of the By-laws of the NASD) any member firm of
the NASD;
(cc) the Company has not relied upon the Representative or legal counsel for the
Representative for any legal, tax or accounting advice in connection with the offering and sale of
the Shares;
(dd) any certificate of the Company or any Subsidiary signed by any officer of the Company or
any Subsidiary delivered to the Representative or to counsel for the Underwriters pursuant to or in
connection with this Agreement shall be deemed a representation and warranty by the Company to each
Underwriter as to the matters covered thereby;
(ee) the form of certificate used to evidence the Common Stock complies in all material
respects with all applicable statutory requirements, with any applicable requirements of the
organizational documents of the Company and the requirements of the Nasdaq National Market;
(ff) the Company and the Subsidiaries have good and marketable title in fee simple to all real
property, if any, and good title to all personal property owned by them, in each case free and
clear of all liens, security interests, pledges, charges, encumbrances, mortgages and defects,
except such as are disclosed in both the Prospectus and the Disclosure Package or such as do not
materially and adversely affect the value of such property and do not interfere with the use made
or proposed to be made of such property by the Company and the Subsidiaries; and any real property
and buildings held under lease by the Company or any Subsidiary are held under valid, existing and
enforceable leases, with such exceptions as are disclosed in both the Prospectus and the Disclosure
Package or are not material and do not interfere with the use made or proposed to be made of such
property and buildings by the Company or such Subsidiary;
(gg) the Company and its Subsidiaries are, and at all times prior were, (i) in compliance with
any and all applicable federal, state, local and foreign laws, regulations, ordinances, rules,
orders, judgments, decrees, permits or other legal requirements relating
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to the protection of human health and safety, the environment, natural resources, petroleum or
hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), which
compliance includes obtaining, maintaining and complying with all permits and authorizations and
approvals required by Environmental Laws to conduct their respective businesses and (ii) have not
received notice of nor do they otherwise have knowledge of any actual or potential liability for
the investigation or remediation of any disposal or release by the Company or any Subsidiary of
petroleum, hazardous or toxic substances or wastes, pollutants or contaminants, except in the case
of clause (i) or (ii) where such non-compliance with or liability under Environmental Laws would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
and neither the Company nor any of its Subsidiaries has been named as a “potentially responsible
party” under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, or any other similar Environmental Law, except with respect to any matters that would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. None
of the Company and its Subsidiaries (A) is a party to any proceeding under Environmental Laws in
which a governmental authority is also a party, other than such proceedings regarding which it is
believed no monetary penalties of $100,000 or more will be imposed, and (B) anticipates material
capital expenditures relating to Environmental Laws;
(hh) the descriptions in each of the Registration Statement, the Prospectus and the Disclosure
Package of the legal or governmental proceedings, contracts, leases and other legal documents
therein described present fairly the information required to be described by the Securities Act or
the Securities Act Regulations, and there are no legal or governmental proceedings, contracts,
leases, or other documents of a character required to be described in the Registration Statement,
the Prospectus or the Disclosure Package or required to be filed as exhibits to the Registration
Statement which are not described or filed as required; all agreements between the Company or any
of the Subsidiaries and third parties expressly referenced in both the Prospectus and the
Disclosure Package are legal, valid and binding obligations of the Company or one or more of the
Subsidiaries, enforceable against the Company or its Subsidiaries, as applicable, in accordance
with their respective terms, except to the extent enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by
general equitable principles;
(ii) except as disclosed in the Registration Statement, the Prospectus and the Disclosure
Package, the Company and each Subsidiary owns or possesses adequate licenses or other rights to use
all patents, trademarks, service marks, trade names, copyrights, software and design licenses,
trade secrets, manufacturing processes, other intangible property rights and know-how (collectively
“Intangibles”) necessary to entitle the Company and each Subsidiary to conduct its business as
described in the Prospectus, and neither the Company nor any Subsidiary has received notice of
infringement of or conflict with (and neither the Company nor any Subsidiary knows of any such
infringement of or conflict with) asserted rights of others with respect to any Intangibles which
would reasonably be expected to have a Material Adverse Effect;
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(jj) (x) the Company has established and maintains disclosure controls and procedures (as such
term is defined in Rule 13a-15(e) under the Exchange Act Regulations), which (i) are designed to
ensure that material information relating to the Company, including its consolidated subsidiaries,
is made known to the Company’s principal executive officer and its principal financial officer by
others within those entities, particularly during the periods in which the periodic reports
required under the Exchange Act are being prepared, (ii) have been evaluated for effectiveness as
of the end of the last fiscal period covered by the Registration Statement, and (iii) are effective
in all material respects to perform the functions for which they were established, (y) there is no
material weakness in the design or operation of the Company’s internal controls over financial
reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act Regulations) that
adversely affects the Company’s ability to record, process, summarize and report financial
information to management and the Board of Directors and there are no significant deficiencies
that, individually or in the aggregate, could result in such a material weakness, and (z) the
Company is not aware of any fraud, whether or not material, that involves management or other
employees who have a significant role in the Company’s internal control over financial reporting.
Since the most recent evaluation of the Company’s disclosure controls and procedures described
above, there have been no significant changes in internal control over financial reporting or in
other factors that could significantly affect internal control over financial reporting;
(kk) the Company and each of the Subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles as applied in the United States 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;
(ll) each of the Company and the Subsidiaries has filed on a timely basis (including in
accordance with any applicable extensions) all necessary federal, state, local and foreign income
and franchise tax returns required to be filed through the date hereof and have paid all taxes
shown as due thereon; and no tax deficiency has been asserted against any such entity, nor does any
such entity know of any tax deficiency which is likely to be asserted against any such entity
which, if determined adversely to any such entity, would reasonably be expected to have a Material
Adverse Effect; all material tax liabilities are adequately provided for on the respective books of
such entities;
(mm) each of the Company and the Subsidiaries maintains insurance (issued by insurers of
recognized financial responsibility) of the types and in the amounts generally deemed adequate for
their respective businesses and consistent with insurance coverage maintained by similar companies
in similar businesses, including, but not limited to,
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insurance covering real and personal property owned or leased by the Company and the
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;
(nn) neither the Company nor any of the Subsidiaries is in violation, or has received notice
of any violation by the Company or any Subsidiary with respect to, any applicable environmental,
safety or similar law applicable to the business of the Company or any of the Subsidiaries; the
Company and the Subsidiaries have received all permits, licenses or other approvals required of
them under applicable federal and state occupational safety and health and environmental laws and
regulations to conduct their respective businesses, and the Company and the Subsidiaries are in
compliance with all terms and conditions of any such permit, license or approval, except any such
violation of law or regulation, failure to receive required permits, licenses or other approvals or
failure to comply with the terms and conditions of such permits, licenses or approvals which would
not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;
(oo) neither the Company nor any Subsidiary is in violation of or has received notice of any
violation with respect to any federal or state law relating to discrimination in the hiring,
promotion or pay of employees, nor any applicable federal or state wages and hours law, the
violation of any of which would reasonably be expected to have a Material Adverse Effect;
(pp) the Company and each of the Subsidiaries are in compliance in all material respects with
all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder (“ERISA”); no
“reportable event” (as defined in ERISA) has occurred with respect to any “pension plan” (as
defined in ERISA) for which the Company or any of the Subsidiaries would have any liability; the
Company and each of the Subsidiaries have not incurred and do not expect to incur liability under
(i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan” or
(ii) Section 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the
regulations and published interpretations thereunder (“Code”); and each “pension plan” for which
the Company and each of its Subsidiaries would have any liability that is intended to be qualified
under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred,
whether by action or by failure to act, which would cause the loss of such qualification;
(qq) neither the Company nor any of the Subsidiaries nor any officer or director purporting to
act on behalf of the Company or any of the Subsidiaries has at any time (i) made any contributions
to any candidate for political office, or failed to disclose fully any such contributions, in
violation of applicable law, (ii) made any payment to any state, federal or foreign governmental
officer or official, or other person charged with similar public or quasi-public duties, other than
payments required or allowed by applicable law or (iii) engaged in any transactions, maintained any
bank account or used
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any corporate funds except for transactions, bank accounts and funds which have been and are
reflected in the normally maintained books and records of the Company and the Subsidiaries;
(rr) except as otherwise disclosed in both the Prospectus and the Disclosure Package, there
are no outstanding loans, extensions of credit, advances or guarantees of indebtedness by the
Company or any of the Subsidiaries to or for the benefit of any of the officers or directors of the
Company or any of the Subsidiaries or any of the members of the families of any of them;
(ss) neither the Company nor any of the Subsidiaries nor, to the knowledge of the Company, any
employee or agent of the Company or any of the Subsidiaries, has made any payment of funds of the
Company or of any Subsidiary or received or retained any funds in violation of any law, rule or
regulation or of a character required to be disclosed in the Prospectus or the Disclosure Package;
(tt) all securities issued by the Company, any of the Subsidiaries or any trusts established
by the Company or any Subsidiary, have been issued and sold in compliance with (i) all applicable
federal and state securities laws, (ii) the laws of the applicable jurisdiction of incorporation of
the issuing entity, and (iii) to the extent applicable to the issuing entity, the requirements of
the Nasdaq National Market;
(uu) in connection with the offering contemplated by this Agreement, the Company has not
offered and will not offer its Common Stock or any other securities convertible into or
exchangeable or exercisable for Common Stock in a manner in violation of the Securities Act; and
the Company has not distributed and will not distribute any offering material in connection with
the offer and sale of the Shares, except for the Preliminary Prospectus, the Prospectus, any Issuer
Free Writing Prospectus or the Registration Statement;
(vv) the Company has complied and will comply with all the provisions of Florida Statutes,
Section 517.075 (Chapter 92-198, Laws of Florida); and neither the Company nor any of the
Subsidiaries or affiliates does business with the government of Cuba or with any person or
affiliate located in Cuba;
(ww) the Company has not incurred any liability for any finder’s fees or similar payments in
connection with the transactions herein contemplated;
(xx) no relationship, direct or indirect, exists between or among the Company or any of the
Subsidiaries on the one hand, and the directors, officers, stockholders, customers or suppliers of
the Company or any of the Subsidiaries on the other hand, which is required by the Securities Act
and the Securities Act Regulations to be described in the Registration Statement, the Prospectus or
the Disclosure Package and which is not so described;
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(yy) neither the Company nor any of the Subsidiaries is and, after giving effect to the
offering and sale of the Shares, will be an “investment company” or an entity “controlled” by an
“investment company”, as such terms are defined in the Investment Company Act of 1940, as amended
(the “Investment Company Act”);
(zz) none of the Company nor any of the Subsidiaries or, to the knowledge of the Company, any
director, officer, agent, employee or affiliate of such entities is aware of or has taken any
action, directly or indirectly, that would result in a violation by such persons of the Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”),
including, without limitation, making use of the mails or any means or instrumentality of
interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization
of the payment of any money, or other property, gift, promise to give, or authorization of the
giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any
foreign political party or official thereof or any candidate for foreign political office, in
contravention of the FCPA and the Company and the Subsidiaries and, to the knowledge of the
Company, their affiliates have conducted their businesses in compliance with the FCPA;
(aaa) neither the Company nor any of its Subsidiaries, nor, to the Company’s knowledge, any of
its affiliates or any director, officer, agent or employee of, or other person associated with or
acting on behalf of, the Company, has violated the Bank Secrecy Act, as amended, the Uniting and
Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act (USA PATRIOT ACT) of 2001 or the rules and regulations promulgated under any such law
or any successor law;
(bbb) the operations of the Company and its Subsidiaries and, to the Company’s knowledge, its
affiliates are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, the Money Laundering Control Act of 1986, as amended, any other money laundering
statutes of all jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”), except for any such non-compliance as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, and no
action, suit or proceeding by or before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of it Subsidiaries, or, to the Company’s knowledge, any of
its affiliates, with respect to the Money Laundering Laws is pending or, to the Company’s
knowledge, threatened;
(ccc) each of the Company and its Subsidiaries, and, to the Company’s knowledge, each of their
affiliates and any director, officer, agent or employee of, or other person associated with or
acting on behalf of, the Company has acted at all times in compliance in all material respects with
applicable Export and Import Laws (as defined below) and there are no claims, complaints, charges,
investigations or proceedings
-17-
pending or expected or, to the knowledge of the Company, threatened between the Company or any
of its Subsidiaries and any governmental authority under any Export or Import Laws. The term
“Export and Import Laws” means the Arms Export Control Act, the International Traffic in Arms
Regulations, the Export Administration Act of 1979, as amended, the Export Administration
Regulations, and all other laws and regulations of the United States government regulating the
provision of services to non-U.S. parties or the export and import of articles or information from
and to the United States of America, and all similar laws and regulations of any foreign government
regulating the provision of services to parties not of the foreign country or the export and import
of articles and information from and to the foreign country to parties not of the foreign country;
(ddd) neither the Company nor any of its Subsidiaries, nor, to the Company’s knowledge, any of
its affiliates or any director, officer, agent or employee of, or other person associated with or
acting on behalf of, the Company, is currently subject to any United States sanctions administered
by the Office of Foreign Assets Control of the United States Treasury Department (“OFAC”); and the
Company will not directly or indirectly use the proceeds of the offering, or lend, contribute or
otherwise make available such proceeds to any Subsidiary, partner or joint venturer or other person
or entity, for the purpose of financing the activities of any person currently subject to any
United States sanctions administered by OFAC;
(eee) (i) except (A) as would not reasonably be expected to have a Material Adverse Effect and
(B) for any Government Contract or Government Bid containing classified information or requiring
special security clearances for access, with respect to each Government Contract and each
Government Bid to which the Company or its Subsidiaries is a party: (1) the Company has complied
with the terms and conditions of such Government Contract or Government Bid; (2) the Company has
complied with all requirements of all applicable laws or agreements pertaining to such Government
Contract or Government Bid; (3) all representations and certifications set forth in or pertaining
to such Government Contract or Government Bid were complete and correct as of their effective date,
and the Company has complied in all material respects with all such representations and
certifications; (4) neither the U.S. Government nor any prime contractor, subcontractor or other
person has notified the Company in writing that the Company has breached or violated any applicable
law pertaining to such Government Contract or Government Bid; (5) no termination for convenience or
termination for default has occurred since January 1, 2000, and no cure notice or show cause notice
is currently in effect pertaining to such Government Contract or Government Bid; (6) no cost
incurred by the Company pertaining to such Government Contract or Government Bid is the subject of
an investigation (except for customary audits by the Defense Contract Audit Agency) or has been
disallowed by the U.S. Government since January 1, 2000; (7) no money due to the Company
pertaining to such Government Contract or Government Bid has been withheld or set off, and (8) each
Government Contract is valid and enforceable against the Company or its Subsidiaries, as
applicable;
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(ii) except as would not reasonably be expected to have a Material Adverse Effect (A) to the
knowledge of the Company, none of the Company’s respective employees, consultants or agents is (or
during the last five years has been) under administrative, civil or criminal investigation,
indictment or information by the U.S. Government, or under any audit or investigation by the
Company with respect to any alleged irregularity, misstatement or omission arising under or
relating to any Government Bid, and (B) during the last five years, the Company has not conducted
or initiated any internal investigation or, to the Company’s knowledge, had reason to conduct,
initiate or report any internal investigation, or made a voluntary disclosure to the U.S.
Government, with respect to any alleged irregularity, misstatement or omission arising under or
relating to a Government Contract or Government Bid;
(iii) except as would not reasonably be expected to have a Material Adverse Effect, there
exist no outstanding claims against the Company or any of its Subsidiaries, either by the U.S.
Government or by any prime contractor, subcontractor, vendor or other third party, arising under or
relating to any Government Contract or Government Bid;
(iv) except as would not reasonably be expected to have a Material Adverse Effect, all test
and inspection results the Company or any Subsidiary has provided to the U.S. Government pursuant
to any Government Contract or to any other Person pursuant to any such Government Contract or as a
part of the delivery to the U.S. Government pursuant to any such Government Contract of any article
designed, engineered or manufactured in the business were complete and correct as of the date so
provided. Except as would not reasonably be expected to have a Material Adverse Effect, the
Company has provided all test and inspection results to the U.S. Government pursuant to any such
Government Contract as required by applicable law and the terms of the applicable Government
Contracts; and
(v) for purposes of this Section 3 (eee):
(1) “Government Bid” means, with respect to the Company or any Subsidiary, any firm quotation,
bid or proposal made by such person that if accepted or awarded would lead to a contract with the
U.S. Government;
(2) “Government Contract” means, with respect to the Company or any Subsidiary, any Contract,
including any prime contract, subcontract, facility contract, teaming agreement or arrangement,
joint venture, basic ordering agreement, pricing agreement, letter contract, purchase order,
delivery order, change order or other contractual arrangement of any kind, between such the Company
or any Subsidiary and (i) the U.S. Government (acting on its own behalf or on behalf of another
country or international organization), (ii) any prime contractor of the U.S. Government or (iii)
any subcontractor with respect to any contract of a type described in clauses (i) or (ii) above;
and
(3) “U.S. Government” means the federal government of the United States of America and any
agencies, instrumentalities and departments thereof.
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(fff) there are no existing or, to the knowledge of the Company threatened, labor disputes
with the employees of the Company or any of the Subsidiaries which would, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
Each Selling Stockholder, severally and not jointly, represents and warrants to the
Underwriters that:
(a) such Selling Stockholder has full power and authority to enter into this Agreement and the
Custody Agreement and Power of Attorney to which it is a party. All authorizations and consents
necessary for the execution and delivery by such Selling Stockholder of the Custody Agreement and
Power of Attorney, and for the execution of this Agreement on behalf of such Selling Stockholder,
have been given. Each of the Custody Agreement and Power of Attorney and this Agreement has been
duly authorized, executed and delivered by or on behalf of such Selling Stockholder and constitutes
a valid and binding agreement of such Selling Stockholder and is enforceable against such Selling
Stockholder in accordance with the terms thereof and hereof, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally, and by general equitable principles, and except to the extent that the indemnification
and contribution provisions of Section 9 hereof may be limited by federal or state securities laws
and public policy considerations in respect thereof;
(b) such Selling Stockholder now has, and at the Closing Time or the applicable Option Closing
Time will have, (i) good and marketable title to the Shares to be sold by such Selling Stockholder
hereunder, free and clear of all liens, encumbrances and claims whatsoever (other than pursuant to
the Custody Agreement and Power of Attorney), and (ii) full legal right and power, and all
authorizations and approvals required by law, to sell, transfer and deliver such Shares to the
Underwriters hereunder and to make the representations, warranties and agreements made by such
Selling Stockholder herein. Upon the delivery of and payment for such Shares hereunder, such
Selling Stockholder will deliver record and beneficial ownership thereto, free and clear of any
pledge, lien, encumbrance, security interest or other claim;
(c) at the Closing Time or the applicable Option Closing Time, all stock transfer or other
taxes (other than income taxes) which are required to be paid in connection with the sale and
transfer of the Shares to be sold by such Selling Stockholder to the Underwriters hereunder will
have been fully paid or provided for by such Selling Stockholder and all laws imposing such taxes
will have been fully complied with;
(d) the performance of this Agreement and the consummation of the transactions contemplated
herein will not conflict with, or result in any breach of, or constitute a default under (nor
constitute any event which with notice, lapse of time, or both would constitute a breach of, or
default under), any provision of any license, indenture, mortgage, deed of trust, loan or credit
agreement or other agreement or instrument to which the Selling Stockholder is a party or by which
he or his properties may be bound or affected, or under any federal, state, local or foreign law,
regulation or
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rule or any decree, judgment or order applicable to the Selling Stockholder; or result in the
creation or imposition of any lien, charge, claim or encumbrance upon any property or asset of the
Selling Stockholder;
(e) no approval, authorization, consent or order of or filing with any federal, state or local
governmental or regulatory commission, board, body, authority or agency is required in connection
with the Selling Stockholder’s execution, delivery and performance of this Agreement, his
consummation of the transactions contemplated herein, and his sale and delivery of the Shares,
other than (i) such as have been obtained, or will have been obtained at the Closing Time or the
relevant Option Closing Time, as the case may be, under the Securities Act and the Exchange Act,
(ii) such approvals as have been obtained in connection with the approval of the listing of the
Shares on the Nasdaq National Market, (iii) any necessary qualification under the securities or
blue sky laws of the various jurisdictions in which the Shares are being offered by the
Underwriters and (iv) as may be required under the By-laws, rules or regulations of the NASD;
(f) such Selling Stockholder (i) is familiar with the Registration Statement and the
Prospectus and has no knowledge of any material fact, condition or information not disclosed in the
Registration Statement, the Prospectus and the Disclosure Package which has had or would reasonably
be expected to have a Material Adverse Effect and (ii) is not prompted to sell Shares by any
information concerning the Company which is not set forth in the Registration Statement, the
Prospectus or the Disclosure Package;
(g) all material information with respect to such Selling Stockholder contained in each of the
Registration Statement, the Prospectus and the Disclosure Package (as amended or supplemented, if
the Company shall have filed with the Commission any amendment or supplement thereto) complied and
will comply in all material respects with all applicable provisions of the Securities Act and the
Securities Act Regulations, contains and will contain all statements of material fact required to
be stated therein in accordance with the Securities Act and the Securities Act Regulations, and
does not and will not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein not
misleading (that information being limited to the information with respect to such Selling
Stockholder described in the penultimate sentence of the first paragraph of Section 9(b));
(h) such Selling Stockholder has not distributed and will not distribute any Free Writing
Prospectus, Preliminary Prospectus, the Prospectus or any other offering material in connection
with the offering and sale of the Shares, except for any such distribution to which the
Representative has consented in advance; and such Selling Stockholder has not taken, directly or
indirectly, any action intended, or which might reasonably be expected, to cause or result in,
under the Securities Act, the Securities Act Regulations or otherwise, or which has constituted,
stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of the Shares;
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(i) certificates in negotiable form for the Shares to be sold hereunder by such Selling
Stockholder have been placed in custody, for the purpose of making delivery of such Shares under
this Agreement and under the Custody Agreement and Power of Attorney which appoints American Stock
Transfer & Trust Company, as custodian (the “Custodian”), for such Selling Stockholder; such
Selling Stockholder agrees that the Shares represented by the certificates held in custody for him
or it under the Custody Agreement and Power of Attorney are for the benefit of and coupled with and
subject to the interest hereunder of the Custodian, the Attorneys, the Underwriters, each other
Selling Stockholder and the Company; that the arrangements made by such Selling Stockholder for
such custody and the appointment of the Custodian and the Attorneys by such Selling Stockholder are
irrevocable; and that the obligations of such Selling Stockholder hereunder shall not be terminated
by operation of law, whether by the death, disability, incapacity or liquidation of any Selling
Stockholder or the occurrence of any other event; if any Selling Stockholder should die, become
disabled or incapacitated or be liquidated or if any other such event should occur before the
delivery of the Shares hereunder, certificates for the Shares shall be delivered by the Custodian
in accordance with the terms and conditions of this Agreement and actions taken by the Attorneys
and the Custodian pursuant to the Custody Agreement and Power of Attorney shall be as valid as if
such death, liquidation, incapacity or other event had not occurred, regardless of whether or not
the Custodian or the Attorneys, or either of them, shall have received notice thereof;
(j) such Selling Stockholder has not relied upon the Representative or legal counsel for the
Representative for any legal, tax or accounting advice in connection with the offering and sale of
the Shares to be sold by such Selling Stockholder;
(k) such Selling Stockholder does not have any registration or other similar rights to have
any equity or debt securities registered for sale by the Company under the Registration Statement
or included in the offering contemplated by this Agreement;
(l) such Selling Stockholder does not have, or has waived prior to the date hereof, any
preemptive right, co-sale right or right of first refusal or other similar right to purchase any of
the Shares that are to be sold by the Company or any of the other Selling Stockholders to the
Underwriters pursuant to this Agreement; and such Selling Stockholder does not own any warrants,
options or similar rights to acquire, and does not have any right or arrangement to acquire, any
capital stock, right, warrants, options or other securities from the Company, other than those
described in the Registration Statement and the Prospectus; and
(m) except as otherwise disclosed to the Underwriters in writing, such Selling Stockholder is
not a member of or an affiliate of or associated with any member of the NASD.
4. Certain Covenants:
(a) The Company hereby agrees with each Underwriter:
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(i) to furnish such information as may be required and otherwise to reasonably cooperate
in qualifying the Shares for offering and sale under the securities or blue sky laws of
such jurisdictions (both domestic and foreign) as the Representative may designate and to
maintain such qualifications in effect as long as requested by the Representative for the
distribution of the Shares, provided that the Company shall not be required to qualify as a
foreign corporation or to consent to the service of process under the laws of any such
jurisdiction (except service of process with respect to the offering and sale of the
Shares);
(ii) if, at the time this Agreement is executed and delivered, it is necessary for a
post-effective amendment to the Registration Statement to be declared effective before the
offering of the Shares may commence, the Company will endeavor to cause such post-effective
amendment to become effective as soon as reasonably practicable and will advise the
Representative promptly and, if requested by the Representative, will confirm such advice
in writing, when such post-effective amendment has become effective;
(iii) to prepare the Prospectus in a form approved by the Underwriters and file such
Prospectus with the Commission pursuant to Rule 424(b) under the Securities Act
not later than 10:00 a.m. (New York City time), on the day following the execution and
delivery of this Agreement or on such other day as the parties may mutually agree and to
furnish promptly (and with respect to the initial delivery of such Prospectus, not later
than 10:00 a.m. (New York City time) on the day following the execution and delivery of
this Agreement or on such other day as the parties may mutually agree to the Underwriters
copies of the Prospectus (or of the Prospectus as amended or supplemented if the Company
shall have made any amendments or supplements thereto after the effective date of the
Registration Statement) in such quantities and at such locations as the Underwriters may
reasonably request for the purposes contemplated by the Securities Act Regulations, which
Prospectus and any amendments or supplements thereto furnished to the Underwriters will be
identical to the version created to be transmitted to the Commission for filing via XXXXX,
except to the extent permitted by Regulation S-T;
(iv) to advise the Representative promptly and (if requested by the Representative) to
confirm such advice in writing, when the Registration Statement has become effective and
when any post-effective amendment thereto becomes effective under the Securities Act
Regulations;
(v) to furnish a copy of each proposed Free Writing Prospectus to the Representative
and counsel for the Underwriters and obtain the consent of the Representative prior to
referring to, using or filing with the Commission any Free Writing Prospectus pursuant to
Rule 433(d) under the Securities Act, other than the Issuer Free Writing Prospectuses, if
any, identified in Schedule III hereto;
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(vi) to comply with the requirements of Rules 164 and 433 of the Securities Act
Regulations applicable to any Issuer Free Writing Prospectus, including timely filing with
the Commission, legending and record keeping, as applicable;
(vii) to advise the Representative immediately, confirming such advice in writing, of
(i) the receipt of any comments from, or any request by, the Commission for amendments or
supplements to the Registration Statement, the Preliminary Prospectus, the Prospectus or
any Issuer Free Writing Prospectus, or for additional information with respect thereto, or
(ii) the issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of any order preventing or suspending the use of the Preliminary
Prospectus, the Prospectus or any Issuer Free Writing Prospectus, or of the suspension of
the qualification of the Shares for offering or sale in any jurisdiction, or of the
initiation or threatening of any proceedings for any of such purposes and, if the
Commission or any other government agency or authority should issue any such order, to make
every reasonable effort to obtain the lifting or removal of such order as soon as possible;
to advise the Representative promptly of any proposal to amend or supplement the
Registration Statement, the Preliminary Prospectus, the Prospectus or any Issuer Free
Writing Prospectus and to file no such amendment or supplement to which the Representative
shall reasonably object in writing;
(viii) to furnish to the Underwriters for a period of three years from the date of
this Agreement (i) as soon as available, copies of all annual, quarterly and current
reports or other communications supplied to holders of shares of Common Stock, (ii) as soon
as practicable after the filing thereof, copies of all reports filed by the Company with
the Commission, the NASD, the Nasdaq National Market or any securities exchange and (iii)
subject to compliance with applicable law, such other information as the Underwriters may
reasonably request regarding the Company and the Subsidiaries; provided, however, that the
Company shall not be required to furnish reports or other communications supplied to
holders of shares of Common Stock to the extent such reports or communications are
available on XXXXX or otherwise made publicly available;
(ix) to advise the Underwriters promptly of the happening of any event or development
known to the Company within the time during which a Prospectus relating to the Shares (or,
in lieu thereof, the notice referred to in Rule 172(a) under the Securities Act
Regulations) is required to be delivered under the Securities Act Regulations which, in the
judgment of the Company or in the reasonable opinion of the Representative or counsel for
the Underwriters, (i) would require the making of any change in the Prospectus or the
Disclosure Package so that the Prospectus or the Disclosure Package would not include an
untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
-24-
circumstances under which they were made, not misleading, (ii) as a result of which
any Issuer Free Writing Prospectus conflicted or would conflict with the information
contained in the Registration Statement, or (iii) if it is necessary at any time to amend
or supplement the Prospectus or the Disclosure Package to comply with any law and, during
such time, to promptly prepare and furnish to the Underwriters copies of the proposed
amendment or supplement before filing any such amendment or supplement with the Commission
and thereafter promptly furnish at the Company’s own expense to the Underwriters and to
dealers, copies in such quantities and at such locations as the Representative may from
time to time reasonably request of an appropriate amendment or supplement to the Prospectus
or the Disclosure Package so that the Prospectus or the Disclosure Package as so amended or
supplemented will not when it (or, in lieu thereof, the notice referred to in Rule 172(a)
under the Securities Act Regulations) is so delivered, include an untrue statement of
material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made,
not misleading or, in the case of any Issuer Free Writing Prospectus, conflict with the
information contained in the Registration Statement, or so that the Prospectus or the
Disclosure Package will comply with the Securities Act and the Securities Act Regulations;
(x) to file promptly with the Commission any amendment or supplement to the
Registration Statement, any Preliminary Prospectus, the Prospectus or any Issuer Free
Writing Prospectus that may, in the judgment of the Company or the Representative, be
required by the Securities Act or requested by the Commission;
(xi) prior to filing with the Commission any amendment or supplement to the
Registration Statement, any Preliminary Prospectus, the Prospectus or any Issuer Free
Writing Prospectus, to furnish a copy thereof to the Representative and counsel for the
Underwriters and obtain the consent (which will not be unreasonably withheld or delayed) of
the Representative to the filing;
(xii) to furnish promptly to the Representative a signed copy of the Registration
Statement, as initially filed with the Commission, and of all amendments or supplements
thereto (including all exhibits filed therewith or incorporated by reference therein) and
such number of conformed copies of the foregoing as the Representative may reasonably
request;
(xiii) to apply the net proceeds of the sale of the Shares in accordance with its
statements under the caption “Use of Proceeds” in the Prospectus and the Disclosure
Package;
(xiv) to make generally available to its security holders and to deliver to the
Representative as soon as practicable, but in any event not later than the end of the
fiscal quarter first occurring after the first anniversary of the effective date of
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the Registration Statement an earnings statement complying with the provisions of
Section 11(a) of the Securities Act (in form, at the option of the Company, complying with
the provisions of Rule 158 of the Securities Act Regulations) covering a period of 12
months beginning after the effective date of the Registration Statement;
(xv) to use its best efforts to maintain the quotation of the Shares on the Nasdaq
National Market and to file with the Nasdaq National Market all documents and notices
required by the Nasdaq National Market of companies that have securities that are traded on
the Nasdaq National Market and quotations for which are reported by the Nasdaq National
Market;
(xvi) to engage and maintain, at its expense, a registrar and transfer agent for the
Shares;
(xvii) to refrain from the date hereof until 90 days after the date of the Prospectus,
without the prior written consent of the Representative, from, directly or indirectly, (i)
offering, pledging, selling, contracting to sell, selling any option or contract to
purchase, purchasing any option or contract to sell, granting any option for the sale of,
or otherwise disposing of or transferring, (or entering into any transaction or device
which is designed to, or could be expected to, result in the disposition by any person at
any time in the future of), any share of Common Stock or any securities convertible into or
exercisable or exchangeable for Common Stock, or filing any registration statement under
the Securities Act with respect to any of the foregoing, or (ii) entering into any swap or
any other agreement or any transaction that transfers, in whole or in part, directly or
indirectly, the economic consequence of ownership of the Common Stock, whether any such
swap or transaction described in clause (i) or (ii) above is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise. The foregoing sentence shall
not apply to (A) the Shares to be sold hereunder, (B) any shares of Common Stock issued by
the Company upon the exercise of an option outstanding on the date hereof and referred to
in the Prospectus or (C) (I) any grants of options to purchase shares of Common Stock or
(II) issuances of Common Stock pursuant to the Company’s employee benefit plans to the
extent such plans are in effect as of the date of the Prospectus;
(xviii) not to, and to use its best efforts to cause its officers, directors and
affiliates not to, (i) take, directly or indirectly prior to termination of the
underwriting syndicate contemplated by this Agreement, any action designed to stabilize or
manipulate the price of any security of the Company, or which may cause or result in, or
which might in the future reasonably be expected to cause or result in, the stabilization
or manipulation of the price of any security of the Company, to facilitate the sale or
resale of any of the Shares, (ii) sell, bid for, purchase or pay anyone any compensation
for soliciting purchases of the Shares or
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(iii) pay or agree to pay to any person any compensation for soliciting any order to
purchase any other securities of the Company;
(xix) to cause each officer and director of the Company to furnish to the
Representative, prior to the date hereof, a letter or letters, substantially in the form of
Exhibit B hereto (and with such changes as the Representative may otherwise agree),
pursuant to which each such person shall agree not to, directly or indirectly, (1) offer
for sale, sell, pledge or otherwise dispose of (or enter into any transaction or device
which is designed to, or could be expected to, result in the disposition by any person at
any time in the future of) any shares of Common Stock or securities convertible into or
exchangeable for Common Stock 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 such 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, in each case for a period from the date hereof until 90 days after the date
of the Prospectus, without the prior written consent of the Representative on behalf of the
Underwriters;
(xx) if at any time during the 90-day period after the date of the Prospectus, any
rumor, publication or event relating to or affecting the Company shall occur as a result of
which, in the reasonable opinion of the Representative, the market price of the Common
Stock has been or is likely to be materially affected (regardless of whether such rumor,
publication or event necessitates a supplement to or amendment of the Prospectus) and after
written notice from the Representative advising the Company to the effect set forth above,
to forthwith prepare, consult with the Representative concerning the substance of, and
disseminate a press release or other public statement, reasonably satisfactory to the
Representative, responding to or commenting on such rumor, publication or event; and
(xxi) that the Company will comply with all of the provisions of any undertakings in
the Registration Statement.
(b) Each Selling Stockholder hereby agrees with each Underwriter:
(i) to deliver to the Representative prior to the Closing Time a properly completed
and executed United States Treasury Department Form W-8 (if the Selling Stockholder is a
non-United States person, within the meaning of the Code) or Form W-9 (if the Selling
Stockholder is a United States person, within the meaning of the Code);
(ii) to furnish to the Representative, prior to the date hereof, a letter or letters,
substantially in the form of Exhibit B hereto (and with such changes as the Representative
may otherwise agree), pursuant to which each such person shall agree not to, directly or
indirectly, (1) offer for sale, sell, pledge or otherwise
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dispose of (or enter into any transaction or device which is designed to, or could be
expected to, result in the disposition by any person at any time in the future of) any shares of Common Stock or securities convertible into or exchangeable for Common Stock 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 such 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, in each case
for a period from the date hereof until 90 days after the date of the Prospectus, without
the prior written consent of the Representative on behalf of the Underwriters;
(iii) if, at any time prior to the date on which the distribution of the Shares as
contemplated herein and in the Prospectus and the Disclosure Package has been completed, as
determined by the Representative, such Selling Stockholder has knowledge or becomes aware
of the occurrence of any event as a result of which the Prospectus, the Disclosure Package
or the Registration Statement, in each case as then amended or supplemented, would include
an untrue statement of a material fact or omit to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made (in
the case of the Prospectus and Disclosure Package only), not misleading, such Selling
Stockholder will promptly notify the Company and the Representative;
(iv) to deliver to the Company or the Underwriters such documentation as the Company
or the Underwriters or any of their respective counsel may reasonably request in order to
effectuate any of the provisions of this Agreement; and
(v) to not prepare or have prepared on its behalf or use or refer to any Free Writing
Prospectus and to not distribute any written materials in connection with the offer or sale
of the Shares.
5. Payment of Expenses:
(a) The Company agrees to pay all costs and expenses incident to the performance of its
obligations under this Agreement, whether or not the transactions contemplated hereunder are
consummated or this Agreement is terminated, including expenses, fees and taxes in connection with
(i) the preparation and filing of the Registration Statement, each Preliminary Prospectus, the
Prospectus, any Issuer Free Writing Prospectus and any amendments or supplements thereto, and the
printing and furnishing of copies of each thereof to the Underwriters and to dealers (including
costs of mailing and shipment), (ii) the preparation, issuance and delivery of the certificates for
the Shares to the Underwriters, including any stock or other transfer taxes or duties payable upon
the sale of the Shares to the Underwriters, (iii) the printing of this Agreement and any dealer
agreements and furnishing of copies of each to the
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Underwriters and to dealers (including costs of mailing and shipment), (iv) the qualification
of the Shares for offering and sale under state laws that the Company and the Representative have
mutually agreed are appropriate and the determination of their eligibility for investment under
state law as aforesaid (including the legal fees and filing fees and other disbursements of counsel
for the Underwriters and the printing and furnishing of copies of any blue sky surveys or legal
investment surveys to the Underwriters and to dealers), (v) filing for review of the public
offering of the Shares by the NASD (including the legal fees and filing fees and other
disbursements of counsel for the Underwriters relating thereto), (vi) the fees and expenses of any
transfer agent or registrar for the Shares and miscellaneous expenses referred to in the
Registration Statement, (vii) the fees and expenses incurred in connection with the inclusion of
the Shares for listing on the Nasdaq National Market, (viii) making road show presentations with
respect to the offering of the Shares, (ix) preparing and distributing bound volumes of transaction
documents for the Representative and its legal counsel and (x) the performance of the Company’s
other obligations hereunder. Upon the request of the Representative, the Company will provide
funds in advance for filing fees. The obligations set forth in this Section 5(a) shall not
supersede any other arrangement or agreement existing on the date hereof as between the Company and
the Selling Stockholders as to the payment of expenses contemplated by this Agreement.
(b) The Company agrees to reimburse the Representative for its reasonable out-of-pocket expenses
in connection with the performance of its activities under this Agreement, including, but not
limited to, costs such as printing, facsimile, courier service, direct computer expenses,
accommodations and travel, but excluding the fees and expenses of the Underwriters’ outside legal
counsel and any other advisors, accountants, appraisers, etc. (other than the fees and expenses of
counsel with respect to state securities or blue sky laws and obtaining the filing for review of
the public offering of the Shares by the NASD, all of which shall be reimbursed by the Company
pursuant to the provisions of subsection (a) above). The obligations set forth in this Section
5(b) shall not supersede any other arrangement or agreement existing on the date hereof as between
the Company and the Selling Stockholders as to the payment of expenses contemplated by this
Agreement.
(c) The Selling Stockholders agree with each Underwriter to pay (directly or by reimbursement)
all fees and expenses incident to the performance of their obligations under this Agreement which
are otherwise specifically provided for herein, including, but not limited to, (i) fees and
expenses of counsel and other advisors for such Selling Stockholders, (ii) fees and expenses of the
Custodian and (iii) expenses and taxes incident to the sale and delivery of the Shares to be sold
by such Selling Stockholder to the Underwriters hereunder (which taxes, if any, may be deducted by
the Custodian). The obligations set forth in this Section 5(c) shall not supersede any other
arrangement or agreement existing on the date hereof as between the Company and the Selling
Stockholders as to the payment of expenses contemplated by this Agreement.
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(d) If this Agreement shall be terminated by the Underwriters, or any of them, because of any
failure or refusal on the part of the Company or the Selling Stockholders to comply with the terms
or to fulfill any of the conditions of this Agreement, or if for any reason the Company or the
Selling Stockholders shall be unable to perform their obligations under this Agreement, the Company
also will reimburse the Underwriters or such Underwriters as have so terminated this Agreement with
respect to themselves, severally, for all out-of-pocket expenses (such as printing, facsimile,
courier service, direct computer expenses, accommodations, travel and the fees and disbursements of
Underwriters’ counsel) and any other advisors, accountants, appraisers, etc. reasonably incurred by
such Underwriters in connection with this Agreement or the transactions contemplated herein.
6. Conditions of the Underwriters’ Obligations:
The obligations of the Underwriters hereunder to purchase Shares at the Closing Time or on
each Option Closing Time, as applicable, are subject to the accuracy of the representations and
warranties on the part of the Company and the Selling Stockholders hereunder and under the Custody
Agreement and Power of Attorney on the date hereof and at the Closing Time and on each Option
Closing Time, as applicable, the performance by the Company and the Selling Stockholders of their
respective obligations hereunder and under the Custody Agreement and Power of Attorney and to the
satisfaction of the following further conditions at the Closing Time or on each Option Closing
Time, as applicable:
(a) The Company shall furnish to the Underwriters: (i) at the Closing Time and on each Option
Closing Time an opinion of Holland & Knight LLP, counsel for the Company and the Subsidiaries,
addressed to the Underwriters and dated the Closing Time and each Option Closing Time and in form
and substance satisfactory to King & Spalding LLP, counsel for the Underwriters; and (ii) at the
Closing Time, in the case of the Firm Selling Stockholders, and on each Option Closing Time, in the
case of the Option Selling Stockholders, an opinion of Holland & Knight LLP, counsel for the
Selling Stockholders, addressed to the Underwriters and dated the Closing Time or Option Closing
Time, as applicable, and in form and substance satisfactory to King & Spalding LLP, counsel for the
Underwriters.
(b) The Representative shall have received from Xxxxx Xxxxxxxx LLP letters dated, respectively, as
of the date of this Agreement, the Closing Time and each Option Closing Time, as the case may be,
addressed to the Representative, in form and substance satisfactory to the Representative, relating
to the financial statements of the Company and the Subsidiaries, and such other matters customarily
covered by comfort letters issued in connection with registered public offerings.
(c) The Representative shall have received at the Closing Time and on each Option Closing Time
the favorable opinion of King & Spalding LLP, dated the Closing Time or such Option Closing Time,
addressed to the Representative and in form and substance satisfactory to the Representative.
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(d) No amendment or supplement to the Registration Statement, the Prospectus or any document
in the Disclosure Package shall have been filed to which the Underwriters shall have objected in
writing.
(e) Prior to the Closing Time and each Option Closing Time (i) no stop order suspending the
effectiveness of the Registration Statement or any order preventing or suspending the use of the
Prospectus or any document in the Disclosure Package shall have been issued, and no proceedings for
such purpose shall have been initiated or threatened, by the Commission, and no suspension of the
qualification of the Shares for offering or sale in any jurisdiction, or the initiation or
threatening of any proceedings for any of such purposes, has occurred; (ii) all requests for
additional information on the part of the Commission shall have been complied with to the
reasonable satisfaction of the Representative; (iii) the Registration Statement, as of each
effective date, shall not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading; and (iv) the Prospectus and the Disclosure Package shall not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.
(f) All filings with the Commission required by Rule 424 under the Securities Act to have been
filed by the Closing Time shall have been made within the applicable time period prescribed for
such filing by such Rule.
(g) Between the time of execution of this Agreement and the Closing Time or the relevant
Option Closing Time, there shall not have been any Material Adverse Change, and (ii) no transaction
which is material and unfavorable to the Company shall have been entered into by the Company or any
of the Subsidiaries, in each case, which in the Representative’s sole judgment, makes it
impracticable or inadvisable to proceed with the public offering of the Shares as contemplated by
the Registration Statement.
(h) The Shares shall have been approved for inclusion in the Nasdaq National Market.
(i) The NASD shall not have raised any objection with respect to the fairness and
reasonableness of the underwriting terms and arrangements.
(j) The Representative shall have received executed lock-up agreements from each officer and
director of the Company and each Selling Stockholder, in the form of Exhibit B attached hereto (and
with such changes as the Representative may otherwise agree), and such letter agreements shall be
in full force and effect.
(k) The Company will, at the Closing Time and on each Option Closing Time, deliver to the
Underwriters a certificate of its Chairman of the Board, Chief Executive Officer, President, Chief
Operating Officer or Vice President and Chief Accounting Officer or Chief Financial Officer, to the
effect that:
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(i) the representations and warranties of the Company and the Subsidiaries in
this Agreement are true and correct, as if made on and as of the Closing Time or
any Option Closing Time, as applicable, and the Company has complied with all the
agreements and satisfied all the conditions on its part to be performed or
satisfied at or prior to the Closing Time or any Option Closing Time, as
applicable;
(ii) no stop order suspending the effectiveness of the Registration Statement
or any post-effective amendment thereto and no order directed at any document
incorporated by reference therein (“Incorporated Document”) has been issued and no
proceedings for that purpose have been instituted or are pending or threatened
under the Securities Act;
(iii) the signers of such certificate have carefully examined the Registration
Statement, the Prospectus, the Disclosure Package and this Agreement, and that when
the Registration Statement became effective and at all times subsequent thereto up
to the Closing Time or any Option Closing Time, as applicable, the Registration
Statement and the Prospectus and the Preliminary Prospectus, and any amendments or
supplements thereto and any Incorporated Documents, when such Incorporated
Documents became effective or were filed with the Commission, contained all
material information required to be included therein by the Securities Act, the
Securities Act Regulations, the Exchange Act and the Exchange Act Regulations, as
the case may be, and in all material respects conformed to the requirements of the
Securities Act, the Securities Act Regulations, the Exchange Act and the Exchange
Act Regulations, as the case may be; the Registration Statement, as of each
effective date, did not include any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading; the Prospectus and the Disclosure Package, and
any amendments or supplements thereto, did not and do not, as of their applicable
filing dates, at the Closing Time and on each Option Closing Time, include an
untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; and, since the effective
dates of the Registration Statement, there has occurred no event required to be set
forth in an amendment or supplement to the Prospectus or the Disclosure Package
which has not been so set forth; and
(iv) subsequent to the respective dates as of which information is given in
the Registration Statement, the Prospectus and the Disclosure Package, there has
not been (a) any Material Adverse Change, (b) any transaction that is material to
the Company and the Subsidiaries
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considered as one enterprise, except transactions entered into in the ordinary
course of business, (c) any obligation, direct or contingent, that is material to
the Company and the Subsidiaries considered as one enterprise, incurred by the
Company or the Subsidiaries, except obligations incurred in the ordinary course of
business, (d) any change in the capital stock or outstanding indebtedness of the
Company or any Subsidiary that is material to the Company and the Subsidiaries
considered as one enterprise, (e) any dividend or distribution of any kind
declared, paid or made on the capital stock of the Company or any Subsidiary, or
(f) any loss or damage (whether or not insured) to the property of the Company or
any subsidiary which has been sustained or will have been sustained which has a
Material Adverse Effect.
(l) Each Firm Selling Stockholder will, at the Closing Time, and each Option Selling
Stockholder will on each Option Closing Time, deliver to the Underwriters a certificate, to the
effect that:
(i) the representations and warranties of such Selling Stockholder set forth
in this Agreement and in the Custody Agreement and Power of Attorney are true and
correct as of such date; and
(ii) such Selling Stockholder has complied with all the agreements and
satisfied all the conditions on its part to be performed or satisfied hereunder and
under the Custody Agreement and Power of Attorney at or prior to the date hereof.
(m) The Company and the Selling Stockholders, as applicable, shall have furnished to the
Underwriters such other documents and certificates as to the accuracy and completeness of any
statement in the Registration Statement, the Prospectus and the Disclosure Package, the
representations, warranties and statements of the Company contained herein and in the Custody
Agreement and Power of Attorney, and the performance by the Company and the Selling Stockholders of
their respective covenants contained herein and therein, and the fulfillment of any conditions
contained herein or therein, as of the Closing Time or any Option Closing Time, as the Underwriters
may reasonably request.
7. Termination:
The obligations of the several Underwriters hereunder shall be subject to termination in the
absolute discretion of the Representative, at any time prior to the Closing Time or any Option
Closing Time, (i) if any of the conditions specified in Section 6 shall not have been fulfilled
when and as required by this Agreement to be fulfilled, or (ii) if there has been since the
respective dates as of which information is given in the Registration Statement, the Prospectus or
the Disclosure Package, any Material Adverse Change, or any development involving a prospective
Material Adverse Change, or material change in management of the Company or any Subsidiary, whether
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or not arising in the ordinary course of business, or (iii) if there has occurred any outbreak
or escalation of hostilities or other national or international calamity or crisis or change in
economic, political or other conditions the effect of which on the U.S. or international financial
markets is such as to make it, in the judgment of the Representative, impracticable to market the
Shares or enforce contracts for the sale of the Shares, or (iv) if trading in any securities of the
Company has been suspended by the Commission or by the Nasdaq National Market, or if trading
generally on the New York Stock Exchange or in the Nasdaq over-the-counter market has been
suspended (including an automatic halt in trading pursuant to market-decline triggers, other than
those in which solely program trading is temporarily halted), or limitations on prices for trading
(other than limitations on hours or numbers of days of trading) have been fixed, or maximum ranges
for prices for securities have been required, by such exchange or the NASD or the over-the-counter
market or by order of the Commission or any other governmental authority, or (v) if there has been
any downgrade in the rating of any of the Company’s debt securities by any “nationally recognized
statistical rating organization” (as defined for purposes of Rule 436(g) under the Securities Act),
or (vi) if any federal, state, local or foreign statute, regulation, rule or order of any court or
other governmental authority has been enacted, published, decreed or otherwise promulgated which,
in the reasonable opinion of the Representative, materially adversely affects or will materially
adversely affect the business or operations of the Company, or (vii) any action has been taken by
any federal, state, local or foreign government or agency in respect of its monetary or fiscal
affairs which, in the reasonable opinion of the Representative, would reasonably be expected to
have a material adverse effect on the securities markets in the United States.
If the Representative elects to terminate this Agreement as provided in this Section 7, the
Company and the Underwriters shall be notified promptly by telephone, promptly confirmed in writing
by facsimile.
If the sale to the Underwriters of the Shares, as contemplated by this Agreement, is not
carried out by the Underwriters for any reason permitted under this Agreement or if such sale is
not carried out because the Company shall be unable to comply in all material respects with any of
the terms of this Agreement, the Company shall not be under any obligation or liability under this
Agreement (except to the extent provided in Sections 5 and 9 hereof) and the Underwriters shall be
under no obligation or liability to the Company under this Agreement (except to the extent provided
in Section 9 hereof) or to one another hereunder.
8. Increase in Underwriters’ Commitments:
If any Underwriter shall default at the Closing Time or on any Option Closing Time in its
obligation to take up and pay for the Shares to be purchased by it under this Agreement on such
date, the Representative shall have the right, within 36 hours after such default, to make
arrangements for one or more of the non-defaulting Underwriters, or any other underwriters, to
purchase all, but not less than all, of the Shares which such Underwriter shall have agreed but
failed to take up and pay for (the “Defaulted Shares”).
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Absent the completion of such arrangements within such 36-hour period, (i) if the total number
of Defaulted Shares does not exceed 10% of the total number of Shares to be purchased on such date,
each non-defaulting Underwriter shall take up and pay for (in addition to the number of Shares
which it is otherwise obligated to purchase on such date pursuant to this Agreement) the portion of
the total number of Shares agreed to be purchased by the defaulting Underwriter on such date in the
proportion that its underwriting obligations hereunder bears to the underwriting obligations of all
non-defaulting Underwriters; and (ii) if the total number of Defaulted Shares exceeds 10% of such
total, the Representative may terminate this Agreement by notice to the Company, without liability
of any party to any other party except that the provisions of Sections 5 and 9 hereof shall at all
times be effective and shall survive such termination.
Without relieving any defaulting Underwriter from its obligations hereunder, the Company
agrees with the non-defaulting Underwriters that it will not sell any Shares hereunder on such date
unless all of the Shares to be purchased on such date are purchased on such date by the
Underwriters (or by substituted Underwriters selected by the Representative with the approval of
the Company or selected by the Company with the approval of the Representative).
If a new Underwriter or Underwriters are substituted for a defaulting Underwriter in
accordance with the foregoing provision, the Company or the non-defaulting Underwriters shall have
the right to postpone the Closing Time or the relevant Option Closing Time for a period not
exceeding five business days in order that any necessary changes in the Registration Statement and
Prospectus and other documents may be effected.
The term “Underwriter” as used in this Agreement shall refer to and include any Underwriter
substituted under this Section 8 with the same effect as if such substituted Underwriter had
originally been named in this Agreement.
9. Indemnity and Contribution by the Company, the Selling Stockholders and the
Underwriters:
(a) The Company agrees to indemnify, defend and hold harmless each Underwriter and any person
who controls any Underwriter within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, and the respective directors, officers, employees and agents of each
Underwriter and control person from and against any loss, expense, liability, damage or claim
(including the reasonable cost of investigation) which, jointly or severally, any such Underwriter
or controlling person may incur under the Securities Act, the Exchange Act or otherwise, insofar as
such loss, expense, liability, damage or claim arises out of or is based upon (A) any breach of any
representation, warranty or covenant of the Company contained herein, (B) any failure on the part
of the Company to comply with any applicable law, rule or regulation relating to the offering of
securities being made pursuant to the Prospectus, (C) any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement (or any amendment thereof),
any Issuer Free Writing Prospectus, the
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Prospectus (the term Prospectus for the purpose of this Section 9 being deemed to include any
Preliminary Prospectus, the Prospectus and the Prospectus as amended or supplemented by the
Company), (D) any untrue statement or alleged untrue statement of material fact contained in any
application or other document, or any amendment or supplement thereto, executed by the Company or
based upon written information furnished by or on behalf of the Company filed in any jurisdiction
(domestic or foreign) in order to qualify the Shares under the securities or blue sky laws thereof
or filed with the Commission or any securities association or securities exchange (each an
“Application”), (E) any omission or alleged omission to state a material fact required to be stated
in any such Registration Statement or necessary to make the statements made therein not misleading,
(F) any omission or alleged omission to state a material fact required to be stated in any Issuer
Free Writing Prospectus, Prospectus or any Application or necessary to make the statements made
therein, in the light of the circumstances under which they were made, not misleading (G) any
untrue statement or alleged untrue statement of any material fact contained in any audio or visual
materials used in connection with the marketing of the Shares to the extent reviewed by the Company
prior to such use, including, without limitation, slides, videos, films and tape recordings; except
in the case of (C), (E) and (F) above only insofar as any such loss, expense, liability, damage or
claim arises out of or is based upon any untrue statement or alleged untrue statement or omission
or alleged omission of a material fact contained in and in conformity with information furnished in
writing by the Underwriters through the Representative to the Company expressly for use in such
Registration Statement, Prospectus or Application (that information being limited to that described
in the last sentence of the first paragraph of Section 9(c) hereof). The indemnity agreement set
forth in this Section 9(a) shall be in addition to any liability which the Company or any
“controlling” Selling Stockholder may otherwise have.
(b) Each Selling Stockholder, severally not jointly, agrees to indemnify, defend and hold
harmless each Underwriter and any person who controls any Underwriter within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act, and the respective directors,
officers, employees and agents of each Underwriter and control person from and against any loss,
expense, liability, damage or claim (including the reasonable cost of investigation) which, jointly
or severally, any such Underwriter or controlling person may incur under the Securities Act, the
Exchange Act or otherwise, insofar as such loss, expense, liability, damage or claim arises out of
or is based upon (A) any breach of any representation, warranty or covenant of such Selling
Stockholder contained herein or in the Custody Agreement and Power of Attorney, (B) any failure on
the part of such Selling Stockholder to comply with any applicable law, rule or regulation relating
to the offering of securities being made pursuant to the Prospectus, (C) any untrue statement or
alleged untrue statement of a material fact contained in the Registration Statement (or any
amendment thereof), any Issuer Free Writing Prospectus, the Prospectus or any Application, (D) any
omission or alleged omission to state a material fact required to be stated in the Registration
Statement or necessary to make the statements made therein not misleading or (E) any omission or
alleged omission to state a material fact required to be stated in any Issuer Free Writing
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Prospectus, the Prospectus or any Application, or necessary to make the statements made
therein, in the light of the circumstances under which they were made, not misleading; provided,
however that in respect of clauses (C), (D) and (E) above, only insofar as any such loss, expense,
liability, damage or claim arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission of a material fact contained in and in conformity with
information furnished in writing by such Selling Stockholder to the Company expressly for use in
such Registration Statement, Issuer Free Writing Prospectus, the Prospectus or Application, it
being understood that the only information furnished by each Selling Stockholder for purposes of
this Agreement shall consist of the information with respect to such Selling Stockholder under the
captions “Management” and “Principal and Selling Stockholders” in the Disclosure Package and the
Prospectus and under the caption “Certain Relationships and Related Party Transactions” in the
Company’s Definitive Proxy Statement on Schedule 14A, which is incorporated by reference in the
Disclosure Package and the Prospectus; provided, further, however, that the indemnity agreement
contained in this subsection (b) shall not require any such Selling Stockholder to reimburse the
Underwriters for any amount in excess of the gross sale price of the Shares sold by such Selling
Stockholder pursuant to this Agreement. The indemnity agreement set forth in this Section 9(b)
shall be in addition to any liabilities that the Selling Stockholders may otherwise have.
If any action is brought against an Underwriter or controlling person in respect of which
indemnity may be sought against the Company or any Selling Stockholder pursuant to subsections (a)
or (b) above, such Underwriter shall promptly notify the Company or such Selling Stockholder, as
applicable, in writing of the institution of such action, and the Company or such Selling
Stockholder, as applicable, shall assume the defense of such action, including the employment of
counsel and payment of expenses; provided, however, that any failure or delay to so notify the
Company or such Selling Stockholder, as applicable, will not relieve the Company or such Selling
Stockholder, as applicable, of any obligation hereunder, except to the extent that its ability to
defend is actually impaired by such failure or delay. Such Underwriter or controlling person shall
have the right to employ its or their own counsel in any such case, but the fees and expenses of
such counsel shall be at the expense of such Underwriter or such controlling person unless the
employment of such counsel shall have been authorized in writing by the Company or such Selling
Stockholder, as applicable, in connection with the defense of such action, or the Company or such
Selling Stockholder, as applicable, shall not have employed counsel to have charge of the defense
of such action within a reasonable time or such indemnified party or parties shall have reasonably
concluded (based on the advice of counsel) that there may be defenses available to it or them which
are different from or additional to those available to the Company or such Selling Stockholder, as
applicable, (in which case neither the Company nor such Selling Stockholder shall have the right to
direct the defense of such action on behalf of the indemnified party or parties), in any of which
events such fees and expenses shall be borne by the Company or the Selling Stockholder, as
applicable, and paid as incurred (it being understood, however, that neither the Company nor any
Selling Stockholder shall be liable for the expenses of more than one separate firm of attorneys
for the Underwriters or controlling persons in any one
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action or series of related actions in the same jurisdiction (other than local counsel in any
such jurisdiction) representing the indemnified parties who are parties to such action). Anything
in this paragraph to the contrary notwithstanding, neither the Company nor any Selling Stockholder
shall be liable for any settlement of any such claim or action effected without its consent.
(c) Each Underwriter agrees, severally and not jointly, to indemnify, defend and hold harmless
the Company and each Selling Stockholder, the Company’s directors, the Company’s officers that
signed the Registration Statement, and any person who controls the Company or any Selling
Stockholder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, to the same extent as the foregoing indemnity from the Company to such Underwriter, but only
insofar as such loss, expense, liability, damage or claim arises out of or is based upon (A) any
untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement (or any amendment thereof), any Issuer Free Writing Prospectus, the Prospectus, or any
Application, (B) any omission or alleged omission to state a material fact in connection with such
information required to be stated in the Registration Statement or necessary to make such
information not misleading or (C) any omission or alleged omission to state a material fact in
connection with such information required to be stated either in any Issuer Free Writing
Prospectus, the Prospectus or any Application or necessary to make such information, in the light
of the circumstances under which made, not misleading, in each case to the extent and only to the
extent that such untrue statement or alleged untrue statement or omission or alleged omission was
made in reliance upon and in conformity with information furnished in writing by such Underwriter
through the Representative to the Company expressly for use therein, it being understood that the
only information furnished by any Underwriter through the Representative to the Company for
purposes of this Agreement consists of the statements set forth in the tenth through seventeenth
paragraphs, inclusive, under the caption “Underwriting” in the Disclosure Package and the
Prospectus (to the extent such statements relate to the Underwriters).
If any action is brought against the Company, any Selling Stockholder or any such person in
respect of which indemnity may be sought against any Underwriter pursuant to the foregoing
paragraph, the Company, the Selling Stockholder or such person shall promptly notify the
Representative in writing of the institution of such action and the Representative, on behalf of
the Underwriters, shall assume the defense of such action, including the employment of counsel and
payment of expenses. The Company, the Selling Stockholder or such person shall have the right to
employ its own counsel in any such case, but the fees and expenses of such counsel shall be at the
expense of the Company, the Selling Stockholder or such person unless the employment of such
counsel shall have been authorized in writing by the Representative in connection with the defense
of such action or the Representative shall not have employed counsel to have charge of the defense
of such action within a reasonable time or such indemnified party or parties shall have reasonably
concluded (based on the advice of counsel) that there may be defenses available to it or them which
are different from or additional to those
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available to the Underwriters (in which case the Representative shall not have the right to
direct the defense of such action on behalf of the indemnified party or parties), in any of which
events such fees and expenses shall be borne by such Underwriter and paid as incurred (it being
understood, however, that the Underwriters shall not be liable for the expenses of more than one
separate firm of attorneys in any one action or series of related actions in the same jurisdiction
(other than local counsel in any such jurisdiction) representing the indemnified parties who are
parties to such action). Anything in this paragraph to the contrary notwithstanding, no
Underwriter shall be liable for any settlement of any such claim or action effected without the
written consent of the Representative.
(d) If the indemnification provided for in this Section 9 is unavailable or insufficient to
hold harmless an indemnified party under subsections (a), (b) and (c) of this Section 9 in respect
of any losses, expenses, liabilities, damages or claims referred to therein, then each applicable
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, expenses, liabilities,
damages or claims (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company, the Selling Stockholders and the Underwriters from the offering of the
Shares or (ii) if (but only if) the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company, of the Selling
Stockholders and of the Underwriters in connection with the statements or omissions which resulted
in such losses, expenses, liabilities, damages or claims, as well as any other relevant equitable
considerations. The relative benefits received by the Company, the Selling Stockholders and the
Underwriters shall be deemed to be in the same proportion as the total proceeds from the offering
(net of underwriting discounts and commissions but before deducting expenses) received by the
Company or the Selling Stockholders, as applicable, bear to the underwriting discounts and
commissions received by the Underwriters. The relative fault of the Company, of the Selling
Stockholders and of the Underwriters shall be determined by reference to, among other things,
whether the untrue statement or alleged untrue statement of a material fact or omission or alleged
omission relates to information supplied by the Company, by the Selling Stockholders or by the
Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid or payable by a party as a result
of the losses, claims, damages and liabilities referred to above shall be deemed to include any
legal or other fees or expenses reasonably incurred by such party in connection with investigating
or defending any claim or action.
(e) The Company, the Selling Stockholders and the Underwriters agree that it would not be just
and equitable if contribution pursuant to this Section 9 were determined by pro rata allocation
(even if the Underwriters were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in subsection
(d)(i) and, if applicable (ii), above. Notwithstanding the provisions of this Section 9, no
Underwriter shall be required to
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contribute any amount in excess of the underwriting discounts and commissions applicable to
the Shares purchased by such Underwriter and no Selling Stockholder shall be required to contribute
any amount in excess of the gross sale price of the Shares sold by such Selling Stockholder
pursuant to this Agreement. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The Underwriters’ obligations to contribute
pursuant to this Section 9 are several in proportion to their respective underwriting commitments
and not joint.
10. Survival:
The indemnity and contribution agreements contained in Section 9 and the covenants, warranties
and representations of the Company and the Selling Stockholders contained in Sections 3, 4 and 5 of
this Agreement shall remain in full force and effect regardless of any investigation made by or on
behalf of any Underwriter, or any person who controls any Underwriter within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act, and the respective directors, officers,
employees and agents of each Underwriter, or by or on behalf of the Company, its directors and
officers, the Selling Stockholders or any person who controls the Company or any Selling
Stockholder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act, and shall survive any termination of this Agreement or the sale and delivery of the Shares.
The Company, each Selling Stockholder and each Underwriter agree promptly to notify the others of
the commencement of any litigation or proceeding against it and, in the case of the Company,
against any of the Company’s officers and directors, in connection with the sale and delivery of
the Shares, or in connection with the Registration Statement or Prospectus.
11. Duties:
Nothing in this Agreement shall be deemed to create a partnership, joint venture or agency
relationship between the parties. The Underwriters undertake to perform such duties and
obligations only as expressly set forth herein. Such duties and obligations of the Underwriters
with respect to the Shares shall be determined solely by the express provisions of this Agreement,
and the Underwriters shall not be liable except for the performance of such duties and obligations
with respect to the Shares as are specifically set forth in this Agreement. Each of the Company
and the Selling Stockholders acknowledges and agrees that: (i) the purchase and sale of the Shares
pursuant to this Agreement, including the determination of the public offering price of the Shares
and any related discounts and commissions, is an arm’s-length commercial transaction between the
Company and the Selling Stockholders, on the one hand, and the several Underwriters, on the other
hand, and the Company and the Selling Stockholders are capable of evaluating and understanding and
understand and accept the terms, risks and conditions of the transactions contemplated by this
Agreement; (ii) in connection with each transaction contemplated hereby and the process leading to
such transaction each Underwriter is and has been acting solely as a principal and is not the
financial advisor,
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agent or fiduciary of the Company, the Selling Stockholders or their respective affiliates,
stockholders, creditors or employees or any other party; (iii) no Underwriter has assumed or will
assume an advisory, agency or fiduciary responsibility in favor of the Company or the Selling
Stockholders with respect to any of the transactions contemplated hereby or the process leading
thereto (irrespective of whether such Underwriter has advised or is currently advising the Company
or the Selling Stockholders on other matters); and (iv) the several 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 the Selling Stockholders and that the several Underwriters
have no obligation to disclose any of such interests. The Company and each Selling Stockholder
acknowledges that the Underwriters disclaim any implied duties (including any fiduciary duty),
covenants or obligations arising from the Underwriters’ performance of the duties and obligations
expressly set forth herein. The Company and the Selling Stockholders hereby waive and release, to
the fullest extent permitted by law, any claims that the Company and the Selling Stockholders may
have against the several Underwriters with respect to any breach or alleged breach of agency or
fiduciary duty.
12. Notices:
Except as otherwise herein provided, all statements, requests, notices and agreements shall be
in writing or by telegram and, if to the Underwriters, shall be sufficient in all respects if
delivered to Friedman, Billings, Xxxxxx & Co., Inc., 0000 00xx Xxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxxx
00000, Attention: Syndicate Department; if to the Company, shall be sufficient in all respects if
delivered to the Company at the offices of the Company at 00000 Xxxx Xxxxx Xxxxxx, Xxxxx 000,
Xxxxxxx, Xxxxxxxx 00000, Attention: Xxxxx X. Xxxxxxx, Chairman, Chief Executive Officer and
President, with a copy to Xxxxxxxx X. Xxxxxxx, Esq., Holland & Knight LLP, 0000 Xxxxxxxxxxxx
Xxxxxx, X.X., Xxxxxxxxxx, XX 00000 or if to a Selling Stockholder, c/o Xxxxx X. Xxxxxxx at 00000
Xxxx Xxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxxx 00000, with a copy to Xxxxxxxx X. Xxxxxxx, Esq.,
Holland & Knight LLP, 0000 Xxxxxxxxxxxx Xxxxxx, X.X., Xxxxxxxxxx, XX 00000.
13. Governing Law; Headings:
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF VIRGINIA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. The section headings in
this Agreement have been inserted as a matter of convenience of reference and are not a part of
this Agreement.
14. Parties at Interest:
The Agreement herein set forth has been and is made solely for the benefit of the
Underwriters, the Company, the Selling Stockholders and the controlling persons, directors and
officers referred to in Sections 9 and 10 hereof, and their respective successors, assigns,
executors and administrators. No other person, partnership,
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association or corporation (including a purchaser, as such purchaser, from any of the
Underwriters) shall acquire or have any right under or by virtue of this Agreement.
15. Counterparts and Facsimile Signatures:
This Agreement may be signed by the parties in counterparts which together shall constitute
one and the same agreement among the parties. A facsimile signature shall constitute an original
signature for all purposes.
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If the foregoing correctly sets forth the understanding among the Company, the Selling
Stockholders and the Underwriters, please so indicate in the space provided below for the purpose,
whereupon this Agreement shall constitute a binding agreement among the Company, the Selling
Stockholders and the Underwriters.
| Very truly yours, ARGON ST, INC. |
||||
| By: | /s/ Xxxxx X. Xxxxxxx | |||
| By: Xxxxx X. Xxxxxxx | ||||
| Title: | Chairman, Chief Executive Officer and President |
|||
| SELLING STOCKHOLDERS LISTED ON SCHEDULE I ATTACHED HERETO By: Xxxxx X. Xxxxxxx |
||||
| /s/ Xxxxx X. Xxxxxxx | ||||
| Attorney-in-Fact | ||||
Accepted and agreed to as
of the date first above written:
of the date first above written:
FRIEDMAN, BILLINGS, XXXXXX & CO., INC.
| By: | /s/ Xxxxx X. Xxxxxxxxx | |||
| Title: Senior Managing Director | ||||
For itself and as Representative of the other
Underwriters named on Schedule I hereto.
Underwriters named on Schedule I hereto.
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Schedule I
| Number of | Number of | |||||||
| Initial Shares | Option Shares | |||||||
| Name | to be Sold | to be Sold | ||||||
| 1,725,000 | — | |||||||
Xxxxx X. Xxxxxxx, Ph.D. |
— | 172,500 | ||||||
Xxxxxx X. Xxxxxxx |
— | 172,500 | ||||||
Xxxxxx X. Xxxxxxx |
287,500 | — | ||||||
W. Xxxxxx Xxxxxx |
287,500 | — | ||||||
Total |
2,300,000 | 345,000 | ||||||
Schedule II
| Number of | ||||
| Initial Shares | ||||
| Underwriter | to be Purchased | |||
Friedman, Billings, Xxxxxx & Co., Inc. |
1,242,000 | |||
Xxxxxxx Xxxxx & Associates, Inc. |
805,000 | |||
Xxxx Xxxx & Co., Inc. |
253,000 | |||
Total |
2,300,000 | |||
Exhibit A
Form of Custody Agreement and Power of Attorney
[Attached]
Exhibit B
Form of Lock-Up Agreement
[Attached]
