EXHIBIT 1.1
XXXXXX CAPITAL GROUP, INC.
(a Delaware corporation)
2,775,000 Shares of Common Stock
(Par Value $.01 Per Share)
UNDERWRITING AGREEMENT
, 2002
XXXXX, XXXXXXXX & XXXXX, INC.
XXXXXX, XXXXXXXX & COMPANY, INCORPORATED
as Representatives of the several Underwriters
c/o Keefe, Xxxxxxxx & Xxxxx, Inc.
4th Floor
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Xxxxxx Capital Group, Inc., a Delaware corporation (the "Company"), and
the certain shareholder named in Schedule B hereto (the "Selling Shareholder"),
confirm their respective agreements with Xxxxx, Xxxxxxxx & Xxxxx, Inc. ("Xxxxx
Xxxxxxxx"), Xxxxxx, Xxxxxxxx & Company, Incorporated ("Xxxxxx, Xxxxxxxx") and
each of the other Underwriters named in Schedule A hereto (collectively, the
"Underwriters," which term shall also include any underwriter substituted as
hereinafter provided in Section 10 hereof), for whom Xxxxx Xxxxxxxx and Xxxxxx,
Xxxxxxxx are acting as representatives (in such capacity, the
"Representatives"), with respect to (i) the sale by the Company and the Selling
Shareholder, acting severally and not jointly, and the purchase by the
Underwriters, acting severally and not jointly, of the respective numbers of the
2,775,000 shares of Common Stock, par value $.01 per share, of the Company
("Common Stock") set forth in Schedules A and B hereto and (ii) the grant by the
Company to the Underwriters, acting severally and not jointly, of the option
described in Section 2(b) hereof to purchase all or any part of 337,500
additional shares of Common Stock to cover over-allotments, if any. The
aforesaid 2,775,000 shares of Common Stock (the "Initial Securities") to be
purchased by the Underwriters and all or any part of the 337,500 shares of
Common Stock subject to the option described in Section 2(b) hereof (the "Option
Securities") are hereinafter called, collectively, the "Securities". It is
understood that the Company and TAYC Capital Trust I, a Delaware statutory
business trust (the "Trust"), are concurrently entering into an underwriting
agreement, dated the date hereof (the "Trust Preferred Securities Underwriting
Agreement"), with the several underwriters named in Schedule A thereto providing
for the sale by the Trust of an aggregate of 1,600,000 shares of __% Preferred
Securities (liquidation amount of $25.00 per preferred security) of the Trust
(the "Trust Preferred Securities").
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The Company and the Selling Shareholder understand that the
Underwriters propose to make a public offering of the Securities as soon as the
Representatives deem advisable after this Agreement has been executed and
delivered.
The Company, the Selling Shareholder and the Underwriters agree that up
to 100,000 shares of the Securities to be purchased by the Underwriters (the
"Reserved Securities") shall be reserved for sale by the Underwriters to certain
eligible employees and persons having business relationships with the Company,
as part of the distribution of the Securities by the Underwriters, subject to
the terms of this Agreement, the applicable rules, regulations and
interpretations of the National Association of Securities Dealers, Inc. (the
"NASD") and all other applicable laws, rules and regulations. To the extent that
such Reserved Securities are not orally confirmed for purchase by such eligible
employees and persons having business relationships with the Company by the end
of the first business day after the date of the Agreement, such Reserved
Securities may be offered to the public as part of the public offering
contemplated hereby.
The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement on Form S-1 (No. 333-89158) covering the
registration of the Securities under the Securities Act of 1933, as amended (the
"1933 Act"), including the related preliminary prospectus or prospectuses.
Promptly after execution and delivery of this Agreement, the Company will either
(i) prepare and file a prospectus in accordance with the provisions of Rule 430A
("Rule 430A") of the rules and regulations of the Commission under the 1933 Act
(the "1933 Act Regulations") and paragraph (b) of Rule 424 ("Rule 424(b)") of
the 1933 Act Regulations or (ii) if the Company has elected to rely upon Rule
434 ("Rule 434") of the 1933 Act Regulations, prepare and file a term sheet (a
"Term Sheet") in accordance with the provisions of Rule 434 and Rule 424(b). The
information included in such prospectus or in such Term Sheet, as the case may
be, that was omitted from such registration statement at the time it became
effective but that is deemed to be part of such registration statement at the
time it became effective (a) pursuant to paragraph (b) of Rule 430A is referred
to as "Rule 430A Information" or (b) pursuant to paragraph (d) of Rule 434 is
referred to as "Rule 434 Information." Each prospectus used before such
registration statement became effective, and any prospectus that omitted, as
applicable, the Rule 430A Information or the Rule 434 Information, that was used
after such effectiveness and prior to the execution and delivery of this
Agreement, is herein called a "preliminary prospectus." Such registration
statement, including the exhibits thereto and schedules thereto, if any, at the
time it became effective and including the Rule 430A Information and the Rule
434 Information, as applicable, is herein called the "Registration Statement."
Any registration statement filed pursuant to Rule 462(b) of the 1933 Act
Regulations is herein referred to as the "Rule 462(b) Registration Statement,"
and after such filing the term "Registration Statement" shall include the Rule
462(b) Registration Statement. The final prospectus, in the form first furnished
to the Underwriters for use in connection with the offering, of the Securities
is herein called the "Prospectus." If Rule 434 is relied on, the term
"Prospectus" shall refer to the preliminary prospectus, dated __________, 2002,
together with the Term Sheet and all references in this Agreement to the date of
the Prospectus shall mean the date of the Term Sheet. For purposes of this
Agreement, all references to the Registration Statement, any preliminary
prospectus, the Prospectus or any Term Sheet or any amendment or supplement to
any of the
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foregoing shall be deemed to include the copy filed with the Commission pursuant
to its Electronic Data Gathering, Analysis and Retrieval system ("XXXXX").
SECTION 1. Representations and Warranties.
(a) Representations and Warranties by the Company. The Company
represents and warrants to each Underwriter as of the date hereof, as of the
Closing Time referred to in Section 2(c) hereof, and as of each Date of Delivery
(if any) referred to in Section 2(b) hereof, and agrees with each Underwriter,
as follows:
(i) Compliance with Registration Requirements. Each of the
Registration Statement and any Rule 462(b) Registration Statement has
become effective under the 1933 Act and no stop order suspending the
effectiveness of the Registration Statement or any Rule 462(b)
Registration Statement has been issued under the 1933 Act and no
proceedings for that purpose have been instituted or are pending or, to
the knowledge of the Company, are contemplated by the Commission, and
any request on the part of the Commission for additional information
has been complied with.
At the respective times the Registration Statement, any Rule
462(b) Registration Statement and any post-effective amendments thereto
became effective and at the Closing Time (and, if any Option Securities
are purchased, at the Date of Delivery), the Registration Statement,
the Rule 462(b) Registration Statement and any amendments and
supplements thereto complied and will comply in all material respects
with the requirements of the 1933 Act and the 1933 Act Regulations and
did not and will not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, and the
Prospectus, any preliminary prospectus and any supplement thereto or
prospectus wrapper prepared in connection therewith, at their
respective times of issuance and at the Closing Time, complied and will
comply in all material respects with any applicable laws or regulations
of foreign jurisdictions in which the Prospectus and such preliminary
prospectus, as amended or supplemented, if applicable, are distributed
in connection with the offer and sale of Reserved Securities. Neither
the Prospectus nor any amendments or supplements thereto (including any
prospectus wrapper), at the time the Prospectus or any such amendment
or supplement was issued and at the Closing Time (and, if any Option
Securities are purchased, at the Date of Delivery), included or will
include an untrue statement of a material fact or omitted or will omit
to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made,
not misleading. If Rule 434 is used, the Company will comply with the
requirements of Rule 434 and the Prospectus shall not be "materially
different", as such term is used in Rule 434, from the prospectus
included in the Registration Statement at the time it became effective.
The representations and warranties in this subsection shall not apply
to statements in or omissions from the Registration Statement or
Prospectus made in reliance upon and in conformity with information
furnished to the Company in writing by any Underwriter through Xxxxx
Xxxxxxxx expressly for use in the Registration Statement or Prospectus.
With respect to the preceding sentence, the Company acknowledges that
the only information furnished in writing by Xxxxx Xxxxxxxx on
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behalf of the Underwriters expressly for use in the Registration
Statement or Prospectus are the statements in the Prospectus under the
caption "Underwriting".
Each preliminary prospectus and the prospectus filed as part
of the Registration Statement as originally filed or as part of any
amendment thereto, or filed pursuant to Rule 424 under the 1933 Act,
complied when so filed in all material respects with the 1933 Act
Regulations and each preliminary prospectus and the Prospectus
delivered to the Underwriters for use in connection with this offering
was identical to the electronically transmitted copies thereof filed
with the Commission pursuant to XXXXX, except to the extent permitted
by Regulation S-T.
(ii) Independent Accountants. The accountants who certified
the financial statements and supporting schedules included in the
Registration Statement are independent public accountants as required
by the 1933 Act and the 1933 Act Regulations.
(iii) Financial Statements. The financial statements included
in the Registration Statement and the Prospectus, together with the
related schedules and notes, present fairly the financial position of
the Company and its consolidated Subsidiaries at the dates indicated
and the statement of operations, stockholders' equity and cash flows of
the Company and its consolidated Subsidiaries for the periods
specified; said financial statements have been prepared in conformity
with United States generally accepted accounting principles ("GAAP")
applied on a consistent basis throughout the periods involved. The
supporting schedules, if any, included in the Registration Statement
present fairly in accordance with GAAP the information required to be
stated therein. The selected financial data and the summary financial
information included in the Prospectus present fairly the information
shown therein and have been compiled on a basis consistent with that of
the audited financial statements included in the Registration
Statement.
(iv) No Material Adverse Change in Business. Since the
respective dates as of which information is given in the Registration
Statement and the Prospectus, except as otherwise stated therein, (A)
there has been no material adverse change in the condition, financial
or otherwise, or in the earnings, business affairs or business
prospects of the Company and the Subsidiaries considered as one
enterprise, whether or not arising in the ordinary course of business
(a "Material Adverse Effect"), (B) there have been no transactions
entered into by the Company or any of the Subsidiaries, other than
those in the ordinary course of business, which are material with
respect to the Company and the Subsidiaries considered as one
enterprise, (C) except for regular quarterly dividends on the Common
Stock and on the Company's Series A 9% Noncumulative Perpetual
Preferred Stock in amounts per share that are consistent with past
practice, there has been no dividend or distribution of any kind
declared, paid or made by the Company on any class of its capital
stock, and (D) there has not occurred any other event and there has
arisen no set of circumstances required by the 1933 Act or the 1933 Act
Regulations to be disclosed in the Registration Statement or the
Prospectus which has not been so set forth in the Registration
Statement or the Prospectus as fairly and accurately summarized
therein.
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(v) Good Standing of the Company. The Company has been duly
organized and is validly existing as a corporation in good standing
under the laws of the State of Delaware and has full corporate power
and authority to own, lease and operate its properties and to conduct
its business as described in the Prospectus and to enter into and
perform its obligations under this Agreement; and the Company is duly
qualified as a foreign corporation to transact business and is in good
standing in each other jurisdiction in which such qualification is
required, whether by reason of the ownership or leasing of property or
the conduct of business, except where the failure so to qualify or to
be in good standing would not result in a Material Adverse Effect. The
Company is duly registered as a bank holding company under the Bank
Holding Company Act of 1956, as amended (the "BHC Act").
(vi) Good Standing of Subsidiaries. The Company currently has
__ direct and indirect subsidiaries. They are listed on Schedule D
attached hereto, which is incorporated herein (the "Subsidiaries").
Other than the Subsidiaries, the Company does not own or control,
directly or indirectly, more than 5% of any class of equity security of
any corporation, association or other entity. Each Subsidiary is a
corporation or banking corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction of its
incorporation or organization, as the case may be, has the requisite
power, corporate or otherwise, and authority to own, lease and operate
its properties and to conduct its business as described in the
Prospectus and is duly qualified as a foreign corporation to transact
business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except where the
failure so to qualify or to be in good standing would not result in a
Material Adverse Effect; Xxxx Xxxxxx Bank is duly licensed in the State
of Illinois by the Illinois Commissioner of Banks and Real Estate (the
"ICBRE"); except as otherwise disclosed in the Registration Statement,
all of the issued and outstanding capital stock of each Subsidiary has
been duly authorized and validly issued, is fully paid and
non-assessable and is owned by the Company, directly or through a
Subsidiary, free and clear of any security interest, mortgage, pledge,
lien, encumbrance, claim or equity; none of the outstanding shares of
capital stock of any Subsidiary was issued in violation of the
preemptive or similar rights of any securityholder of such Subsidiary.
(vii) Capitalization. The authorized, issued and outstanding
capital stock of the Company is as set forth in the Prospectus under
the caption "Capitalization" (except for subsequent issuances, if any,
pursuant to this Agreement, and subsequent issuances or purchases
pursuant to reservations, agreements or employee benefit plans referred
to in the Prospectus or pursuant to the exercise of convertible
securities or options referred to in the Prospectus). The shares of
issued and outstanding capital stock, including the Securities to be
purchased by the Underwriters from the Selling Shareholder, have been
duly authorized and validly issued and are fully paid and
non-assessable; none of the outstanding shares of capital stock,
including the Securities to be purchased by the Underwriters from the
Selling Shareholder, was issued in violation of or are otherwise
subject to any preemptive or other similar rights of any securityholder
of the Company.
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(viii) Authorization of Agreement. All necessary corporate
action has been duly and validly taken by the Company to authorize the
execution, delivery and performance of this Agreement and the issuance
and sale of the Securities by the Company. This Agreement has been duly
authorized, executed and delivered by the Company and constitutes a
valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, except as the enforceability
hereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors'
rights generally and by general equitable principles.
(ix) Authorization and Description of Securities. The
Securities to be purchased by the Underwriters from the Company have
been duly authorized for issuance and sale to the Underwriters pursuant
to this Agreement and, when issued and delivered by the Company
pursuant to this Agreement against payment of the consideration set
forth herein, will be validly issued and fully paid and non-assessable;
the certificates evidencing the Common Stock are in due and proper form
under Delaware law; the authorized capital stock of the Company,
including the Common Stock, conforms to all statements relating thereto
contained in the Prospectus and such description conforms to the rights
set forth in the instruments defining the same; no holder of the
Securities will be subject to personal liability by reason of being
such a holder; and the issuance of the Securities is not subject to the
preemptive or other similar rights. There are no outstanding
subscriptions, options, warrants, convertible or exchangeable
securities or other rights granted to or by the Company to purchase
shares of Common Stock or other securities of the Company and there are
no commitments, plans or arrangements to issue any shares of Common
Stock or any security convertible into or exchangeable for Common
Stock, in each case other than as described in the Prospectus.
(x) Absence of Defaults and Conflicts. Neither the Company nor
any Subsidiary is in violation of any provision of its charter or
by-laws or in default in the performance or observance of any
obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, deed of trust, loan or credit agreement, note,
lease or other agreement or instrument to which the Company or any of
the Subsidiaries is a party or by which it or any of them may be bound,
or to which any of the property or assets of the Company or any
Subsidiary is subject, including, without limitation, the agreements
described in paragraph (xiii) below (collectively, the "Agreements and
Instruments") except for such defaults that have been waived or
suspended as described in the Prospectus or that would not, singly or
in the aggregate, result in a Material Adverse Effect; and the
execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated herein, in the Trust
Preferred Securities Underwriting Agreement and in the Registration
Statement (including (i) the issuance and sale of the Securities and
the use of the proceeds from the sale of the Securities as described in
the Prospectus under the caption "Use of Proceeds" and (ii) the
issuance and sale of the Trust Preferred Securities and the use of the
proceeds from the sale of the Trust Preferred Securities as described
in the prospectus relating thereto under the caption "Use of Proceeds")
and compliance by the Company with its obligations hereunder and under
the Trust Preferred Securities Underwriting Agreement have been duly
authorized by all necessary corporate action and do not and will not,
whether
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with or without the giving of notice or passage of time or both,
conflict with or constitute a breach of, or default or Repayment Event
(as defined below) under, or result in the creation or imposition of
any lien, charge or encumbrance upon any property or assets of the
Company or any Subsidiary pursuant to, any of the Agreements and
Instruments (except for such conflicts, breaches or defaults or liens,
charges or encumbrances that would not result in a Material Adverse
Effect), nor will such action result in any violation of the provisions
of the charter or by-laws of the Company or any Subsidiary or any
applicable law, statute, rule, regulation, judgment, order, writ or
decree of any government, government instrumentality or court, domestic
or foreign, having jurisdiction over the Company or any Subsidiary
(including the rules, regulations and requirements of the United States
Federal Reserve System (the "Federal Reserve") and the banking laws and
regulations of the State of Illinois and the banking laws and
regulations of other applicable jurisdictions) or any of their assets,
properties or operations. As used herein, a "Repayment Event" means any
event or condition which gives the holder of any note, debenture or
other evidence of indebtedness (or any person acting on such holder's
behalf) the right to require the repurchase, redemption or repayment of
all or a portion of such indebtedness by the Company or any Subsidiary,
provided that the Company's obligations pursuant to the Settlement
Agreements do not constitute "Repayment Events" for purposes of this
Agreement. Each of the Agreements and Instruments is in full force and
effect and is valid and enforceable by and against the Company or any
of the Subsidiaries, as the case may be, and, to the knowledge of the
Company, the other parties thereto, in accordance with its terms,
except as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors' rights generally and by general equitable
principles.
(xi) Absence of Labor Dispute. No labor dispute with the
employees of the Company or any Subsidiary exists or, to the knowledge
of the Company, is imminent, and the Company is not aware of any
existing or imminent labor disturbance by the employees of any of its
or any Subsidiary's principal suppliers or customers, which, in either
case, may reasonably be expected to result in a Material Adverse
Effect.
(xii) Absence of Proceedings. There is no action, suit,
proceeding, inquiry or investigation before or brought by any court or
governmental agency or body, domestic or foreign, now pending, or, to
the knowledge of the Company, threatened, against or affecting the
Company or any Subsidiary, which is required to be disclosed in the
Registration Statement (other than as disclosed therein), or which,
singly or in the aggregate, might reasonably be expected to result in a
Material Adverse Effect, or which, singly or in the aggregate, might
reasonably be expected to materially and adversely affect the
properties or assets thereof or which might materially and adversely
affect the consummation of the transactions contemplated in this
Agreement or in the Trust Preferred Securities Underwriting Agreement
or the performance by the Company of its obligations hereunder or under
the Trust Preferred Securities Underwriting Agreement; all pending
legal or governmental proceedings to which the Company or any
Subsidiary is a party or of which any of their respective property or
assets is the subject which are not described in the
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Registration Statement, including ordinary routine litigation
incidental to the business, are, considered in the aggregate, not
material.
(xiii) Accuracy of Material Agreements; Exhibits. There is no
franchise, contract or other document of a character required to be
described in the Registration Statement or the Prospectus, or to be
filed as an exhibit to the Registration Statement, which is not
described or filed as required by the 1933 Act, the 1933 Act
Regulations, the Trust Indenture Act of 1939, as amended (the "Trust
Indenture Act") or the rules and regulations under the Trust Indenture
Act (the "Trust Indenture Act Regulations"). Each description of a
contract, document or other agreement in the Registration Statement and
the Prospectus accurately reflects the terms of the underlying
contract, document or agreement.
(xiv) Possession of Intellectual Property. The Company and the
Subsidiaries own or possess, or can acquire on reasonable terms,
adequate patents, patent rights, licenses, inventions, copyrights,
know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or
procedures), trademarks, service marks, trade names or other
intellectual property (collectively, "Intellectual Property") necessary
to carry on the business now operated by them, and neither the Company
nor any of the Subsidiaries has received any notice or is otherwise
aware of any infringement of or conflict with asserted rights of others
with respect to any Intellectual Property or of any facts or
circumstances which would render any Intellectual Property invalid or
inadequate to protect the interest of the Company or any of the
Subsidiaries therein, and which infringement or conflict (if the
subject of any unfavorable decision, ruling or finding) or invalidity
or inadequacy, singly or in the aggregate, would result in a Material
Adverse Effect.
(xv) Absence of Further Requirements. No filing with, or
authorization, approval, consent, license, order, registration,
qualification or decree of, any court or governmental authority or
agency is necessary or required for the performance by the Company of
its obligations hereunder or under the Trust Preferred Securities
Underwriting Agreement, in connection with the offering, issuance or
sale of the Securities hereunder or of the Trust Preferred Securities
under the Trust Preferred Securities Underwriting Agreement or the
consummation of the transactions contemplated by this Agreement, the
Trust Preferred Securities Underwriting Agreement or the Prospectus,
except (i) such as have been already obtained or as may be required
under the 1933 Act, the 1933 Act Regulations, the Securities Exchange
Act of 1934, as amended (the "1934 Act"), the rules and regulations of
the Commission under the 1934 Act (the "1934 Act Regulations"), the
Trust Indenture Act, the Trust Indenture Act Regulations or state
securities laws and (ii) such as have been obtained under the laws and
regulations of jurisdictions outside the United States in which the
Reserved Securities are offered.
(xvi) Possession of Licenses and Permits. The Company and the
Subsidiaries possess such certificates, authorities, permits, licenses,
approvals, consents and other authorizations (collectively,
"Governmental Licenses") issued by the appropriate federal, state,
local or foreign regulatory agencies or bodies necessary to conduct the
business now
8
operated by them; the Company and the Subsidiaries are in compliance
with the terms and conditions of all such Governmental Licenses, except
where the failure so to comply would not, singly or in the aggregate,
have a Material Adverse Effect; all of the Governmental Licenses are
valid and in full force and effect, except when the invalidity of such
Governmental Licenses or the failure of such Governmental Licenses to
be in full force and effect would not have a Material Adverse Effect;
and neither the Company nor any of the Subsidiaries has received any
notice of proceedings relating to the revocation or modification of any
such Governmental Licenses which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, would result in
a Material Adverse Effect.
(xvii) Compliance with Applicable Laws. The Company and the
Subsidiaries have complied and are in compliance in all material
respects with all federal, state and local statutes, regulations,
ordinances and rules as now in effect and applicable to the ownership
and operation of their properties or the conduct of their businesses as
described in the Prospectus and as currently being conducted. Neither
the Company nor any Subsidiary engages, directly or indirectly, in any
activity prohibited by the Federal Reserve, the BHC Act, other federal
banking or consumer protection laws or the regulations promulgated
thereunder or the banking or consumer protection laws and regulations
of the State of Illinois or the banking or consumer protection laws and
regulations of other applicable jurisdictions. Except as described in
the Registration Statement and the Prospectus, neither the Company nor
any Subsidiary is subject to a directive from the Federal Deposit
Insurance Corporation (the "FDIC"), the Federal Reserve, the ICBRE or
any other governmental authority to make any material changes in the
method of conducting its business and no such directive is pending or,
to the knowledge of the Company, threatened by such authorities. The
Company and the Subsidiaries are not subject to any cease-and-desist
order, prompt correction action directive, civil money penalty, orders
of prohibition, consent order, written agreement, memorandum of
understanding, or other enforcement actions or supervisory agreements
issued by the Federal Reserve, the FDIC, the ICBRE or any other federal
or state bank regulatory agency to which the Company or any Subsidiary
is subject.
(xviii) Title to Property. The Company and the Subsidiaries
have good and marketable title to all real property owned by the
Company and the Subsidiaries and good title to all other properties
owned by them, in each case, free and clear of all mortgages, pledges,
liens, security interests, claims, restrictions or encumbrances of any
kind except such as (a) are described in the Prospectus or (b) do not,
singly or in the aggregate, materially affect the value of such
property and do not materially interfere with the use made and proposed
to be made of such property by the Company or any of the Subsidiaries;
and all of the leases and subleases material to the business of the
Company and the Subsidiaries, considered as one enterprise, and under
which the Company or any of the Subsidiaries holds properties described
in the Prospectus, are in full force and effect, and neither the
Company nor any Subsidiary has any notice of any material claim of any
sort that has been asserted by anyone adverse to the rights of the
Company or any Subsidiary under any of the leases or subleases
mentioned above, or affecting or questioning the rights of the Company
or such Subsidiary to the continued possession of the leased or
subleased premises under any such lease or sublease.
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(xix) Investment Company Act. The Company is not, and upon the
issuance and sale of the Securities as contemplated herein and of the
Trust Preferred Securities as contemplated in the Trust Preferred
Securities Underwriting Agreement and the application of the net
proceeds therefrom as described in the Prospectus will not be, an
"investment company" or an entity "controlled" by an "investment
company" as such terms are defined in the Investment Company Act of
1940, as amended (the "1940 Act").
(xx) Environmental Laws. Except as described in the
Registration Statement and except as would not, singly or in the
aggregate, result in a Material Adverse Effect, (A) neither the Company
nor any of the Subsidiaries is in violation of any federal, state,
local or foreign statute, law, rule, regulation, ordinance, code,
policy or rule of common law or any judicial or administrative
interpretation thereof, including any judicial or administrative order,
consent, decree or judgment, relating to pollution or protection of
human health, the environment (including, without limitation, ambient
air, surface water, groundwater, land surface or subsurface strata) or
wildlife, including, without limitation, laws and regulations relating
to the release or threatened release of chemicals, pollutants,
contaminants, wastes, toxic substances, hazardous substances, petroleum
or petroleum products (collectively, "Hazardous Materials") or to the
manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials (collectively,
"Environmental Laws"), (B) the Company and the Subsidiaries have all
permits, authorizations and approvals required under any applicable
Environmental Laws and are each in compliance with their requirements,
(C) there are no pending or threatened administrative, regulatory or
judicial actions, suits, demands, demand letters, claims, liens,
notices of noncompliance or violation, investigation or proceedings
relating to any Environmental Law against the Company or any of the
Subsidiaries and (D) there are no events or circumstances that might
reasonably be expected to form the basis of an order for clean-up or
remediation, or an action, suit or proceeding by any private party or
governmental body or agency, against or affecting the Company or any of
the Subsidiaries relating to Hazardous Materials or any Environmental
Laws.
(xxi) Registration Rights. There are no persons with
registration rights or other similar rights to have any securities
registered pursuant to the Registration Statement or otherwise
registered by the Company under the 1933 Act.
(xxii) Tax Matters. The Company and each Subsidiary has filed
all material tax returns required to be filed, which returns are true
and correct in all material respects, and neither the Company nor any
Subsidiary is in default in the payment of any taxes, including
penalties and interest, assessments, fees and other charges, shown
thereon due or otherwise assessed, other than those being contested in
good faith and for which adequate reserves have been provided or those
currently payable without interest which were payable pursuant to said
returns or any assessments with respect thereto.
(xxiii) Insurance. The Company and the Subsidiaries maintain
insurance of the types and in the amounts required by rules and
regulations of the Federal Reserve, the FDIC and
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the ICBRE and, to the knowledge of the Company, consistent with
insurance coverage maintained by similar companies and businesses, all
of which insurance is in full force and effect; the Company and the
Subsidiaries are insured by insurers of recognized financial
responsibility; all policies of insurance and fidelity or surety bonds
insuring the Company or any of the Subsidiaries or the Company's or the
Subsidiaries' respective businesses, assets, employees, officers and
directors are in full force and effect; the Company and each of the
Subsidiaries are in compliance with the terms of such policies and
instruments in all material respects; and neither the Company nor any
Subsidiary has any reason to believe that it will not be able to renew
its existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not have a Material Adverse
Effect. Neither the Company nor any Subsidiary has been denied any
insurance coverage which it has sought or for which it has applied. The
deposit accounts of Xxxx Xxxxxx Bank are insured by the Bank Insurance
Fund administered by the FDIC up to the maximum amount provided by law;
and no proceedings for the modification, termination or revocation of
any such insurance are pending or, to the knowledge of the Company,
threatened.
(xxiv) Accounting Controls. The books, records and accounts of
the Company and the Subsidiaries accurately and fairly reflect, in
reasonable detail, the transactions in, and dispositions of, the assets
of, and the results of operations of, the Company and the Subsidiaries.
The Company and the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed with management's general and specific
authorizations; (ii) transactions are recorded as necessary to permit
preparation of the Company's consolidated financial statements in
conformity with GAAP and to maintain asset accountability; (iii) access
to assets is permitted only in accordance with management's general and
specific authorizations; and (iv) the reported accountability of the
assets of the Company and the Subsidiaries is compared with existing
assets at reasonable intervals and appropriate action is taken with
respect to any differences.
(xxv) Fees. Other than as contemplated by this Agreement and
except as disclosed in the Registration Statement, there is no broker,
finder or other party that is entitled to receive from the Company or
any Subsidiary any brokerage or finder's fee or any other fee,
commission or payment as a result of the transactions contemplated by
this Agreement.
(xxvi) No Change in Capital Adequacy. Immediately following
the consummation of the transactions contemplated by this Agreement and
the Trust Preferred Securities Underwriting Agreement, the Company's
applicable regulatory ratios will be at or above the "Adequately
Capitalized" level as determined under the capital adequacy guidelines
of the Federal Reserve. Immediately following the restructuring of the
Company's indebtedness pursuant to the terms and conditions of that
certain commitment letter, dated July 1, 2002, between the Company and
LaSalle Bank National Association and as described in the Prospectus
(the "Debt Restructuring"), the Company's applicable regulatory ratios
will be at or above the "Well Capitalized" level as determined under
the capital adequacy guidelines of the Federal Reserve.
11
(xxvii) Absence of Manipulation. Neither the Company nor, to
its knowledge, any of its officers, directors or affiliates has taken,
and at the Closing Date, neither the Company nor, to its knowledge, any
of its officers, directors or affiliates will have taken, directly or
indirectly, any action which has constituted, or might reasonably be
expected to constitute, the stabilization or manipulation of the price
of sale or resale of the Securities.
(xxviii) No Unauthorized Use Of Prospectus. The Company has
not distributed and, prior to the later to occur of (i) the Closing
Time and (ii) completion of the distribution of the Securities, will
not distribute any prospectus (as such term is defined in the 1933 Act
and the 1933 Act Regulations) in connection with the offering and sale
of the Securities other than the Registration Statement, any
preliminary prospectus, the Prospectus or other materials, if any,
permitted by the 1933 Act or by the 1933 Act Regulations and approved
by the Representatives.
(xxix) No Illegal Payments. To the knowledge of the Company,
neither the Company nor any of Subsidiary nor any employee or agent of
the Company or any Subsidiary has made any payment of funds of the
Company or any Subsidiary or received or retained any funds in
violation of any law, rule or regulation, which payment, receipt or
retention of funds is of a character required to be disclosed in the
Prospectus.
(xxx) Sales of Securities. All offers and sales of capital
stock of the Company prior to the date hereof were at all relevant
times duly registered or exempt from the registration requirements of
the 1933 Act and the 1933 Act Regulations and were duly registered or
subject to an available exemption from the registration requirements of
the applicable state securities or Blue Sky laws.
(xxxi) Registration and Listing. The Common Stock is
registered pursuant to Section 12(g) of the 1934 Act. The Securities
have been duly authorized for quotation on the Nasdaq National Market,
subject only to official notice of issuance. The Company has taken no
action designed to, or likely to have the effect of, terminating the
registration of the Common Stock under the 1934 Act or delisting the
Common Stock from the Nasdaq National Market, nor has the Company
received any notification that the Commission or the Nasdaq National
Market is contemplating terminating such registration or listing.
(xxxii) No Association with NASD. There are no affiliations
with the NASD among the Company's officers, directors or, to the
knowledge of the Company, any stockholder of the Company, except as set
forth in the Registration Statement or otherwise disclosed in writing
to the Representatives.
(xxxiii) Related Party Transactions. No transaction has
occurred between or among the Company and any of its officers or
directors or five percent stockholders or any affiliate or affiliates
of any such officer or director or five percent stockholders that is
required to be described in and is not described in the Registration
Statement and the Prospectus.
12
(b) Representations and Warranties by the Selling Shareholder. The
Selling Shareholder represents and warrants to each Underwriter as of the date
hereof and as of the Closing Time and agrees with each Underwriter, as follows:
(i) Accurate Disclosure. To the knowledge of the Selling
Shareholder, the representations and warranties of the Company
contained in Section 1(a) hereof insofar as they related to the Selling
Shareholder are true and correct as of the date hereof and will be true
and correct at all times through the Closing Date; the Selling
Shareholder is not prompted to sell the Securities to be sold by the
Selling Shareholder hereunder by any information concerning the Company
or any Subsidiary of the Company which is not set forth in the
Prospectus; and all information furnished by or on behalf of the
Selling Shareholder for use in the Registration Statement and the
Prospectus is, and on the Closing Date will be, true, correct and
complete and does not, and on the Closing Date will not, contain any
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.
(ii) Authorization of Agreements. The Selling Shareholder has
the full right, power and authority to enter into this Agreement and a
Power of Attorney and Custody Agreement (the "Power of Attorney and
Custody Agreement") and to sell, transfer and deliver the Securities to
be sold by the Selling Shareholder hereunder. The execution and
delivery of this Agreement and the Power of Attorney and Custody
Agreement and the sale and delivery of the Securities to be sold by the
Selling Shareholder and the consummation of the transactions
contemplated herein and under Power of Attorney and Custody Agreement
and compliance by the Selling Shareholder with its obligations
hereunder and under Power of Attorney and Custody Agreement have been
duly authorized by the Selling Shareholder and do not and will not,
whether with or without the giving of notice or passage of time or
both, conflict with or constitute a breach of, or default under, or
result in the creation or imposition of any tax, lien, charge or
encumbrance upon the Securities to be sold by the Selling Shareholder
or any property or assets of the Selling Shareholder pursuant to any
contract, indenture, mortgage, deed of trust, loan or credit agreement,
note, license, lease or other agreement or instrument to which the
Selling Shareholder is a party or by which the Selling Shareholder may
be bound, or to which any of the property or assets of the Selling
Shareholder is subject, nor will such action result in any violation of
the provisions of the charter or by-laws or other organizational
instrument of the Selling Shareholder, if applicable, or any applicable
treaty, law, statute, rule, regulation, judgment, order, writ or decree
of any government, government instrumentality or court, domestic or
foreign, having jurisdiction over the Selling Shareholder or any of its
properties.
(iii) Good and Marketable Title. The Selling Shareholder has
and will at the Closing Time have good and marketable title to the
Securities to be sold by the Selling Shareholder hereunder, free and
clear of any security interest, mortgage, pledge, lien, charge, claim,
equity or encumbrance of any kind, other than pursuant to this
Agreement; and upon delivery of such Securities and payment of the
purchase price therefor as herein contemplated, each of the
Underwriters will receive good and marketable title to the
13
Securities purchased by it from the Selling Shareholder, free and clear
of any security interest, mortgage, pledge, lien, charge, claim, equity
or encumbrance of any kind.
(iv) Due Execution of Power of Attorney and Custody Agreement.
The Selling Shareholder has duly executed and delivered, in the form
heretofore furnished to the Representatives, the Power of Attorney and
Custody Agreement with J. Xxxxxxxxxxx Xxxxxxx as attorney-in-fact (the
"Attorney-in-Fact") and LaSalle Bank National Association, as custodian
(the "Custodian"); the Custodian is authorized to deliver the
Securities to be sold by the Selling Shareholder hereunder and to
accept payment therefor; and the Attorney-in-Fact is authorized to
execute and deliver this Agreement and the certificate referred to in
Section 5(g) or that may be required pursuant to Section 5(n) on behalf
of the Selling Shareholder, to sell, assign and transfer to the
Underwriters the Securities to be sold by the Selling Shareholder
hereunder, to determine the purchase price to be paid by the
Underwriters to the Selling Shareholder, as provided in Section 2(a)
hereof, to authorize the delivery of the Securities to be sold by the
Selling Shareholder hereunder, to accept payment therefor, and
otherwise to act on behalf of the Selling Shareholder in connection
with this Agreement.
(v) Absence of Manipulation. The Selling Shareholder 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 Securities.
(vi) Absence of Further Requirements. No filing with, or
consent, approval, authorization, order, registration, qualification or
decree of, any court or governmental authority or agency, domestic or
foreign, is necessary or required for the performance by the Selling
Shareholder of its obligations hereunder or in the Power of Attorney
and Custody Agreement, or in connection with the sale and delivery of
the Securities hereunder or the consummation of the transactions
contemplated by this Agreement or the Prospectus, except (i) such as
may have previously been made or obtained or as may be required under
the 1933 Act, the 1933 Act Regulations, the 1934 Act, the 1934 Act
Regulations, the Trust Indenture Act, the Trust Indenture Act
Regulations or state securities laws and (ii) such as have been
obtained under the laws and regulations of jurisdictions outside the
United States in which the Reserved Securities are offered.
14
(vii) Certificates Suitable for Transfer. Certificates for all
of the Securities to be sold by the Selling Shareholder pursuant to
this Agreement, in suitable form for transfer by delivery or
accompanied by duly executed instruments of transfer or assignment in
blank with signatures guaranteed, have been placed in custody with the
Custodian with irrevocable conditional instructions to deliver such
Securities to the Underwriters pursuant to this Agreement.
(viii) No Association with NASD. Neither the Selling
Shareholder nor any of the Selling Shareholder's affiliates directly,
or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, or has any other
association with (within the meaning of Article I, Section 1(m) of the
By-laws of the NASD), any member firm of the NASD.
(c) Officer's Certificates. Any certificate signed by any officer of
the Company or any of the Subsidiaries delivered to the Representatives or to
counsel for the Underwriters pursuant to the terms of this Agreement shall be
deemed a representation and warranty by the Company to each Underwriter as to
the matters covered thereby; and any certificate signed by or on behalf of the
Selling Shareholder as such and delivered to the Representatives or to counsel
for the Underwriters pursuant to the terms of this Agreement shall be deemed a
representation and warranty by the Selling Shareholder to the Underwriters as to
the matters covered thereby.
SECTION 2. Sale and Delivery to Underwriters; Closing.
(a) Initial Securities. On the basis of the representations and
warranties herein contained and subject to the terms and conditions herein set
forth, each of the Company and the Selling Shareholder, severally and not
jointly, agrees to sell to each Underwriter, severally and not jointly, and each
Underwriter, severally and not jointly, agrees to purchase from the Company and
the Selling Shareholder, at the price per share set forth in Schedule C, that
proportion of the number of Initial Securities set forth in Schedule B opposite
the name of the Company or the Selling Shareholder, as the case may be, which
the number of Initial Securities set forth in Schedule A opposite the name of
such Underwriter, plus any additional number of Initial Securities which such
Underwriter may become obligated to purchase pursuant to the provisions of
Section 10 hereof, bears to the total number of Initial Securities, subject, in
each case, to such adjustments among the Underwriters as the Representatives in
their sole discretion shall make to eliminate any sales or purchases of
fractional securities.
(b) Option Securities. In addition, on the basis of the representations
and warranties herein contained and subject to the terms and conditions herein
set forth, the Company hereby grants an option to the Underwriters, severally
and not jointly, to purchase, in addition to the Initial
15
Securities, the amount of Option Securities set forth opposite the name of the
Company on Schedule B at the price per share set forth in Schedule C, less an
amount per share equal to any dividends or distributions declared by the Company
and payable on the Initial Securities but not payable on the Option Securities.
The option hereby granted will expire 30 days after the date hereof and may be
exercised in whole or in part from time to time only for the purpose of covering
over-allotments which may be made in connection with the offering and
distribution of the Initial Securities upon notice by the Representatives to the
Company setting forth the aggregate number of Option Securities as to which the
several Underwriters are then exercising the option and the time and date of
payment and delivery for such Option Securities. Any such time and date of
delivery (a "Date of Delivery") shall be determined by the Representatives, but
shall not be later than seven full business days after the exercise of said
option, nor in any event prior to the Closing Time, as hereinafter defined. If
the option is exercised as to all or any portion of the Option Securities, then
each of the Underwriters, acting severally and not jointly, will purchase from
the Company that proportion of the total number of Option Securities then being
purchased from the Company that the number of Initial Securities set forth in
Schedule A opposite the name of such Underwriter bears to the total number of
Initial Securities, subject, in each case, to such adjustments as the
Representatives in their discretion shall make to eliminate any sales or
purchases of fractional shares.
(c) Payment. Payment of the purchase price for, and delivery of
certificates for, the Initial Securities shall be made at the offices of
Skadden, Arps, Slate, Xxxxxxx & Xxxx (Illinois), 000 Xxxx Xxxxxx Xxxxx, Xxxxxxx,
Xxxxxxxx 00000, or at such other place as shall be agreed upon by the
Representatives and the Company and the Selling Shareholder, at 9:00 A.M.
(Eastern time) on the third (fourth, if the pricing occurs after 4:30 P.M.
(Eastern time) on any given day) business day after the date hereof (unless
postponed in accordance with the provisions of Section 10), or such other time
not later than ten business days after such date as shall be agreed upon by the
Representatives and the Company and the Selling Shareholder (such time and date
of payment and delivery being herein called "Closing Time"). It is understood
and agreed that the Closing Time shall occur simultaneously with the "Closing
Time" under the Trust Preferred Securities Underwriting Agreement.
In addition, in the event that any or all of the Option Securities are
purchased by the Underwriters, payment of the purchase price for, and delivery
of certificates for, such Option Securities shall be made at the above-mentioned
offices, or at such other place as shall be agreed upon by the Representatives
and the Company on each Date of Delivery as specified in the notice from the
Representatives to the Company.
Payment shall be made to the Company and the Selling Shareholder by
wire transfer of immediately available funds to bank accounts designated by the
Company and the Custodian pursuant to the Selling Shareholder's Power of
Attorney and Custody Agreement, as the case may be, against delivery to the
Representatives for the respective accounts of the Underwriters of certificates
for the Securities to be purchased by them. It is understood that each
Underwriter has authorized the Representatives, for its account, to accept
delivery of, receipt for, and make payment of the purchase price for, the
Initial Securities and the Option Securities, if any, which it has agreed to
purchase. Xxxxx Xxxxxxxx, individually and not as representative of the
Underwriters, may (but shall not be obligated to) make payment of the purchase
price for the Initial Securities or the Option
16
Securities, if any, to be purchased by any Underwriter whose funds have not been
received by the Closing Time or the relevant Date of Delivery, as the case may
be, but such payment shall not relieve such Underwriter from its obligations
hereunder.
(d) Denominations; Registration. Certificates for the Initial
Securities and the Option Securities, if any, shall be in such denominations and
registered in such names as the Representatives may request in writing at least
one full business day before the Closing Time or the relevant Date of Delivery,
as the case may be. The certificates for the Initial Securities and the Option
Securities, if any, will be made available for examination and packaging by the
Representatives in The City of New York not later than 10:00 A.M. (Eastern time)
on the business day prior to the Closing Time or the relevant Date of Delivery,
as the case may be.
SECTION 3. Covenants of the Company. The Company covenants with each
Underwriter as follows:
(a) Compliance with Securities Regulations and Commission Requests. The
Company, subject to Section 3(b), will comply with the requirements of Rule 430A
or Rule 434, as applicable, and will notify the Representatives immediately, and
confirm the notice in writing, (i) when any post-effective amendment to the
Registration Statement shall become effective, or any supplement to the
Prospectus or any amended Prospectus shall have been filed, (ii) of the receipt
of any comments from the Commission, (iii) of any request by the Commission for
any amendment to the Registration Statement or any amendment or supplement to
the Prospectus or for additional information, and (iv) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement or of any order preventing or suspending the use of any preliminary
prospectus, or of the suspension of the qualification of the Securities for
offering or sale in any jurisdiction, or of the initiation or threatening of any
proceedings for any of such purposes. The Company will use its best efforts to
cause the Registration Statement, if not effective at the time of execution of
this Agreement, and any amendments thereto, to become effective as promptly as
possible. The Company will promptly effect the filings necessary pursuant to
Rule 424(b) and will take such steps as shall be necessary to ascertain promptly
whether the form of prospectus transmitted for filing under Rule 424(b) was
received for filing by the Commission and, in the event that it was not, it will
promptly file such prospectus. The Company will make every reasonable effort to
prevent the issuance of any stop order and, if any stop order is issued, to
obtain the lifting thereof at the earliest possible moment.
(b) Filing of Amendments. The Company will give the Representatives
notice of its intention to file or prepare any amendment to the Registration
Statement (including any filing under Rule 462(b)), any Term Sheet or any
amendment, supplement or revision to either the prospectus included in the
Registration Statement at the time it became effective or to the Prospectus,
whether pursuant to the 1933 Act, the 1934 Act or otherwise, will furnish the
Representatives with copies of any such documents a reasonable amount of time
prior to such proposed filing or use, as the case may be, and will not file or
use any such document to which the Representatives or counsel for the
Underwriters shall object.
17
(c) Delivery of Registration Statements. The Company has furnished or
will deliver to the Representatives and counsel for the Underwriters, without
charge, signed copies of the Registration Statement as originally filed and of
each amendment thereto (including exhibits filed therewith or incorporated by
reference therein and documents incorporated or deemed to be incorporated by
reference therein) and signed copies of all consents and certificates of
experts, and will also deliver to the Representatives, without charge, a
conformed copy of the Registration Statement as originally filed and of each
amendment thereto (without exhibits) for each of the Underwriters. The copies of
the Registration Statement and each amendment thereto furnished to the
Underwriters pursuant to this Section 3(c) will be identical to the
electronically transmitted copies thereof filed with the Commission pursuant to
XXXXX, except to the extent permitted by Regulation S-T.
(d) Delivery of Prospectuses. The Company has delivered to each
Underwriter, without charge, as many copies of each preliminary prospectus as
such Underwriter reasonably requested, and the Company hereby consents to the
use of such copies for purposes permitted by the 1933 Act. The Company will
furnish to each Underwriter, without charge, during the period when the
Prospectus is required to be delivered under the 1933 Act or the 1934 Act, such
number of copies of the Prospectus (as amended or supplemented) as such
Underwriter may reasonably request. The Prospectus and any amendments or
supplements thereto furnished to the Underwriters pursuant to this Section 3(d)
will be identical to the electronically transmitted copies thereof filed with
the Commission pursuant to XXXXX, except to the extent permitted by Regulation
S-T.
(e) Continued Compliance with Securities Laws. The Company will comply
with the 1933 Act and the 1933 Act Regulations and the 1934 Act and the 1934 Act
Regulations so as to permit the completion of the distribution of the Securities
as contemplated in this Agreement and in the Prospectus. If at any time when a
prospectus is required by the 1933 Act to be delivered in connection with sales
of the Securities, any event shall occur or condition shall exist as a result of
which it is necessary, in the opinion of counsel for the Underwriters or for the
Company, to amend the Registration Statement or amend or supplement the
Prospectus in order that the Prospectus will not include any untrue statement of
a material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances existing at
the time it is delivered to a purchaser, or if it shall be necessary, in the
opinion of such counsel, at any such time to amend the Registration Statement or
amend or supplement the Prospectus in order to comply with the requirements of
the 1933 Act or the 1933 Act Regulations, the Company will promptly prepare and
file with the Commission, subject to Section 3(b), such amendment or supplement
as may be necessary to correct such statement or omission or to make the
Registration Statement or the Prospectus comply with such requirements, and the
Company will furnish to the Underwriters such number of copies of such amendment
or supplement as the Underwriters may reasonably request.
(f) Blue Sky Qualifications. The Company will use its best efforts, in
cooperation with the Underwriters, to qualify the Securities for offering and
sale under the applicable securities laws of such states and other jurisdictions
(domestic or foreign) as the Representatives may designate and to maintain such
qualifications in effect for a period of not less than one year from the later
of the effective date of the Registration Statement and any Rule 462(b)
Registration Statement; provided, however, that the Company shall not be
obligated to file any general consent to service of process
18
or to qualify as a foreign corporation or as a dealer in securities in any
jurisdiction in which it is not so qualified or to subject itself to taxation in
respect of doing business in any jurisdiction in which it is not otherwise so
subject. In each jurisdiction in which the Securities have been so qualified,
the Company will file such statements and reports as may be required by the laws
of such jurisdiction to continue such qualification in effect for a period of
not less than one year from the effective date of the Registration Statement and
any Rule 462(b) Registration Statement.
(g) Rule 158. The Company will timely file such reports pursuant to the
1934 Act as are necessary in order to make generally available to its
securityholders as soon as practicable an earnings statement for the purposes
of, and to provide the benefits contemplated by, the last paragraph of Section
11(a) of the 1933 Act.
(h) Use of Proceeds. The Company will use the net proceeds received by
it from the sale of the Securities in the manner specified in the Prospectus
under "Use of Proceeds".
(i) Listing. The Company will use its best efforts to effect and
maintain the quotation of the Securities on the Nasdaq National Market and will
file with the Nasdaq National Market all documents and notices required by the
Nasdaq National Market of companies that have securities that are traded in the
over-the-counter market and quotations for which are reported by the Nasdaq
National Market.
(j) Restriction on Sale of Securities. During a period of 180 days from
the date of the Prospectus, the Company will not, without the prior written
consent of Xxxxx Xxxxxxxx (i) directly or indirectly, offer, sell, offer to
sell, contract to sell, pledge, grant any option to purchase or otherwise sell
or dispose (or announce any offer, sale, offer of sale, contract of sale,
pledge, grant of any option to purchase or other sale or disposition) of (a) any
shares of Common Stock or any securities substantially similar thereto or (b)
any other securities convertible into, or exchangeable or exercisable for,
shares of Common Stock or securities substantially similar thereto, beneficially
owned (within the meaning of Rule 13d-3 under 0000 Xxx) by such person on the
date thereof or thereafter acquired, (ii) file any registration statement under
the 1933 Act with respect to any of the foregoing (other than on Form S-8) or
(iii) enter into any swap or any other agreement or any transaction that
transfers, in whole or in part, directly or indirectly, the economic consequence
of ownership of the Common Stock, whether any such swap or transaction is to be
settled by delivery of Common Stock or securities substantially similar thereto,
in cash or otherwise. The foregoing sentence shall not apply to (A) the
Securities to be sold hereunder, (B) any shares of Common Stock issued by the
Company upon the exercise of an option or warrant or the conversion of a
security outstanding on the date hereof and referred to in the Prospectus, (C)
any shares of Common Stock issued or options to purchase Common Stock granted
pursuant to existing employee benefit plans of the Company referred to in the
Prospectus or (D) any shares of Common Stock issued pursuant to any non-employee
director stock plan.
(k) Reporting Requirements. The Company, during the period when the
Prospectus is required to be delivered under the 1933 Act or the 1934 Act, will
file all documents required to be filed with the Commission pursuant to the 1934
Act within the time periods required by the 1934 Act and the 1934 Act
Regulations.
19
(l) Lock-up Agreements. The Company has furnished or will furnish to
the Representatives a "Lock-up" Agreement, in form and substance satisfactory to
the Representatives, signed by each of its current officers and directors and
each of the stockholders listed on Schedule B.
(m) Financial Statements. Prior to the Closing Time, the Company shall
furnish to the Underwriters as soon as they have been prepared, copies of any
unaudited interim consolidated financial statements of the Company and the
Subsidiaries, for any periods subsequent to the periods covered by the financial
statements appearing in the Registration Statement and the Prospectus.
(n) Debt Restructuring. The Company shall use all commercially
reasonable efforts to consummate the Debt Restructuring as soon as practicable
following the Closing Time.
(o) Compliance with NASD Rules. The Company hereby agrees that it will
ensure that the Reserved Securities will be restricted as required by the NASD
or the NASD rules from sale, transfer, assignment, pledge or hypothecation for a
period of three months following the date of this Agreement. The Underwriters
will notify the Company as to which persons will need to be so restricted. At
the request of the Underwriters, the Company will direct the transfer agent to
place a stop transfer restriction upon such securities for such period of time.
Should the Company release, or seek to release, from such restrictions any of
the Reserved Securities, the Company agrees to reimburse the Underwriters for
any reasonable expenses (including, without limitation, legal expenses) they
incur in connection with such release.
SECTION 4. Payment of Expenses.
(a) Expenses. The Company and the Selling Shareholder will pay or cause
to be paid all expenses incident to the performance of their obligations under
this Agreement, including (i) the preparation, printing and filing of the
Registration Statement (including financial statements and exhibits) as
originally filed and of each amendment thereto, (ii) the preparation, printing
and delivery to the Underwriters of this Agreement, any Agreement among
Underwriters and such other documents as may be required in connection with the
offering, purchase, sale, issuance or delivery of the Securities, (iii) the
preparation, issuance and delivery of the certificates for the Securities to the
Underwriters, including any stock or other transfer taxes and any stamp or other
duties payable upon the sale, issuance or delivery of the Securities to the
Underwriters, (iv) the fees and disbursements of the Company's counsel,
accountants and other advisors, (v) the qualification of the Securities under
securities laws in accordance with the provisions of Section 3(f) hereof,
including filing fees and the reasonable fees and disbursements of counsel for
the Underwriters in connection therewith and in connection with the preparation
of the Blue Sky Survey and any supplement thereto, (vi) the printing and
delivery to the Underwriters of copies of each preliminary prospectus, any Term
Sheet and of the Prospectus and any amendments or supplements thereto, (vii) the
preparation, printing and delivery to the Underwriters of copies of the Blue Sky
Survey and any supplement thereto, (viii) the fees and expenses of any transfer
agent or registrar for the Securities, (ix) the filing fees incident to, and the
reasonable fees and disbursements of counsel to the Underwriters in connection
with, the review by the NASD of the terms of the sale of the Securities, (x) the
fees and
20
expenses incurred in connection with the inclusion of the Securities in the
Nasdaq National Market, (xi) the costs and expenses relating to investor
presentations on any "road show" undertaken in connection with the marketing of
the offering of the Securities, including, without limitation, expenses
associated with the production of road show slides and graphics, fees and
expenses of any consultants engaged in connection with the road show
presentations with the prior approval of the Company, travel and lodging
expenses of the representatives and officers of the Company and any such
consultant, (xii) all costs and expenses of the Underwriters, including the fees
and disbursements of counsel for the Underwriters, in connection with matters
related to the Reserved Securities which are designated by the Company for sale
to employees and others having a business relationship with the Company and
(xiii) other fees and expenses of counsel to the Underwriters incurred in
connection with the transactions contemplated by this Agreement and the Trust
Preferred Securities Underwriting Agreement in an amount not to exceed $75,000.
(b) Expenses of the Selling Shareholder. The Selling Shareholder will
pay all expenses incident to the performance of its obligations under, and the
consummation of the transactions contemplated by, this Agreement, including (i)
any stamp duties, capital duties and stock transfer taxes, if any, payable upon
the sale of the Securities to the Underwriters, and their transfer between the
Underwriters pursuant to an agreement between such Underwriters, and (ii) the
fees and disbursements of their respective counsel and accountants.
(c) Termination of Agreement. If this Agreement is terminated by the
Representatives in accordance with the provisions of Section 5, Section 9(a)(i)
or Section 11 hereof, the Company and the Selling Shareholder shall reimburse
the Underwriters for all of their out-of-pocket expenses, including the
reasonable fees and disbursements of counsel for the Underwriters.
(d) Allocation of Expenses. The provisions of this Section shall not
affect any agreement that the Company and the Selling Shareholder may make for
the sharing of such costs and expenses.
SECTION 5. Conditions of Underwriters' Obligations. The obligations of
the several Underwriters hereunder are subject to the accuracy of the
representations and warranties of the Company and the Selling Shareholder
contained in Section 1 hereof or in certificates of any officer of the Company
or any Subsidiary of the Company or on behalf of the Selling Shareholder
delivered pursuant to the provisions hereof, to the performance by the Company
of its covenants and other obligations hereunder, and to the following further
conditions:
(a) Effectiveness of Registration Statement. The Registration
Statement, including any Rule 462(b) Registration Statement, has become
effective and at Closing Time no stop order suspending the effectiveness of the
Registration Statement shall have been issued under the 1933 Act or proceedings
therefor initiated or threatened by the Commission, and any request on the part
of the Commission for additional information shall have been complied with to
the reasonable satisfaction of counsel to the Underwriters. A prospectus
containing the Rule 430A Information shall have been filed with the Commission
in accordance with Rule 424(b) (or a post-effective amendment providing such
information shall have been filed and declared effective in accordance with the
requirements of Rule 430A) or, if the Company has elected to rely upon Rule 434,
a Term Sheet shall have been filed with the Commission in accordance with Rule
424(b).
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(b) Opinion of Counsel for Company. At Closing Time, the
Representatives shall have received the favorable opinion, dated as of Closing
Time, of Xxxxxx Xxxxxx Xxxxx Xxxxxxxx, counsel for the Company, in form and
substance satisfactory to counsel for the Underwriters, together with signed or
reproduced copies of such letter for each of the other Underwriters to the
effect set forth in Exhibit A hereto and to such further effect as counsel to
the Underwriters may reasonably request.
(c) Opinion of Special Counsel for Company. At Closing Time, the
Representatives shall have received the favorable opinion, dated as of Closing
Time, of XxXxxxxxx, Will & Xxxxx, special counsel for the Company, in form and
substance satisfactory to counsel for the Underwriters, together with signed or
reproduced copies of such letter for each of the other Underwriters to the
effect set forth in Exhibit B hereto and to such further effect as counsel to
the Underwriters may reasonably request.
(d) Opinion of Counsel for the Selling Shareholder. At Closing Time,
the Representatives shall have received the favorable opinion, dated as of
Closing Time, of Xxxxxx Xxxxxx Xxxxx Xxxxxxxx, counsel for the Selling
Shareholder, in form and substance satisfactory to counsel for the Underwriters,
together with signed or reproduced copies of such letter for each of the other
Underwriters to the effect set forth in Exhibit C hereto and to such further
effect as counsel to the Underwriters may reasonably request.
(e) Opinion of Counsel for Underwriters. At Closing Time, the
Representatives shall have received the favorable opinion, dated as of Closing
Time, of Skadden, Arps, Slate, Xxxxxxx & Xxxx (Illinois), counsel for the
Underwriters, together with signed or reproduced copies of such letter for each
of the other Underwriters in form and substance satisfactory to the
Underwriters.
(f) Officers' Certificate. At Closing Time, there shall not have been,
since the date hereof or since the respective dates as of which information is
given in the Prospectus, any material adverse change in the condition, financial
or otherwise, or in the earnings, business affairs or business prospects of the
Company and the Subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, and the Representatives shall have
received a certificate of the President or a Vice President of the Company and
of the chief financial or chief accounting officer of the Company, dated as of
Closing Time, to the effect that (i) there has been no such material adverse
change, (ii) the representations and warranties in Section 1(a) hereof are true
and correct with the same force and effect as though expressly made at and as of
Closing Time, (iii) the Company has complied with all agreements and satisfied
all conditions on its part to be performed or satisfied at or prior to Closing
Time, and (iv) no stop order suspending the effectiveness of the Registration
Statement has been issued and no proceedings for that purpose have been
instituted or are pending or are contemplated by the Commission.
(g) Certificate of Selling Shareholder. At Closing Time, the
Representatives shall have received a certificate of an Attorney-in-Fact on
behalf of the Selling Shareholder, dated as of Closing Time, to the effect that
(i) the representations and warranties of the Selling Shareholder contained in
Section 1(b) hereof are true and correct in all respects with the same force and
effect as though
22
expressly made at and as of Closing Time and (ii) the Selling Shareholder has
complied in all material respects with all agreements and all conditions on its
part to be performed under this Agreement at or prior to Closing Time.
(h) Accountant's Comfort Letter. At the time of the execution of this
Agreement, the Representatives shall have received from KPMG LLP a letter, dated
such date, in form and substance satisfactory to the Representatives, together
with signed or reproduced copies of such letter for each of the other
Underwriters containing statements and information of the type ordinarily
included in accountants' "comfort letters" to underwriters with respect to the
consolidated financial statements and certain financial information contained in
the Registration Statement and the Prospectus.
(i) Bring-down Comfort Letter. At Closing Time, the Representatives
shall have received from KPMG LLP a letter, dated as of Closing Time, to the
effect that they reaffirm the statements made in the letter furnished pursuant
to subsection (h) of this Section, except that the specified date referred to
shall be a date not more than three business days prior to Closing Time.
(j) Approval of Listing. At Closing Time, the Securities shall have
been approved for inclusion in the Nasdaq National Market, subject only to
official notice of issuance.
(k) No Objection. The NASD has confirmed that it has not raised any
objection with respect to the fairness and reasonableness of the underwriting
terms and arrangements.
(l) Lock-up Agreements. At the date of this Agreement, the
Representatives shall have received an agreement substantially in the form of
Exhibit D hereto signed by the persons listed on Schedule E hereto.
(m) Conditions to Purchase of Option Securities. In the event that the
Underwriters exercise their option provided in Section 2(b) hereof to purchase
all or any portion of the Option Securities, the representations and warranties
of the Company contained herein and the statements in any certificates furnished
by the Company and any Subsidiary hereunder shall be true and correct as of each
Date of Delivery and, at the relevant Date of Delivery, the Representatives
shall have received:
(i) Officers' Certificate. A certificate, dated such Date of
Delivery, of the President or a Vice President of the Company and of
the chief financial or chief accounting officer of the Company
confirming that the certificate delivered at the Closing Time pursuant
to Section 5(f) hereof remains true and correct as of such Date of
Delivery.
(ii) Opinion of Counsel for Company. The favorable opinion of
Xxxxxx Xxxxxx Xxxxx Xxxxxxxx, counsel for the Company, in form and
substance satisfactory to counsel for the Underwriters, dated such Date
of Delivery, relating to the Option Securities to be purchased on such
Date of Delivery and otherwise to the same effect as the opinion
required by Section 5(b) hereof.
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(iii) Opinion of Special Counsel for Company. The favorable
opinion of XxXxxxxxx, Will & Xxxxx, special counsel for the Company, in
form and substance satisfactory to counsel for the Underwriters, dated
such Date of Delivery, relating to the Option Securities to be
purchased on such Date of Delivery and otherwise to the same effect as
the opinion required by Section 5(c) hereof.
(iv) Opinion of Counsel for Underwriters. The favorable
opinion of Skadden, Arps, Slate, Xxxxxxx & Xxxx (Illinois), counsel for
the Underwriters, dated such Date of Delivery, relating to the Option
Securities to be purchased on such Date of Delivery and otherwise to
the same effect as the opinion required by Section 5(e) hereof.
(v) Bring-down Comfort Letter. A letter from KPMG LLP, in form
and substance satisfactory to the Representatives and dated such Date
of Delivery, substantially in the same form and substance as the letter
furnished to the Representatives pursuant to Section 5(h) hereof,
except that the "specified date" in the letter furnished pursuant to
this paragraph shall be a date not more than five days prior to such
Date of Delivery.
(n) Additional Documents. At Closing Time and at each Date of Delivery
counsel for the Underwriters shall have been furnished with such documents and
opinions as they may reasonably require for the purpose of enabling them to pass
upon the issuance and sale of the Securities as herein contemplated, or in order
to evidence the accuracy of any of the representations or warranties, or the
fulfillment of any of the conditions, herein contained; and all proceedings
taken by the Company and the Selling Shareholder in connection with the issuance
and sale of the Securities as herein contemplated shall be reasonably
satisfactory in form and substance to the Representatives and counsel for the
Underwriters.
(o) Closing of Trust Preferred Securities Offering. The closing of the
purchase of the Trust Preferred Securities to be issued and sold by the Trust
pursuant to the Trust Preferred Securities Underwriting Agreement shall occur
concurrently with the closing of the purchase of the Securities to be issued and
sold by the Company pursuant to this Agreement.
(p) Termination of Agreement. If any condition specified in this
Section or any condition specified in the Trust Preferred Securities
Underwriting Agreement shall not have been fulfilled when and as provided in
this Agreement and the Trust Preferred Securities Underwriting Agreement, as the
case may be, this Agreement, or, in the case of any condition to the purchase of
Option Securities on a Date of Delivery which is after the Closing Time, the
obligations of the several Underwriters to purchase the relevant Option
Securities, may be terminated by the Representatives by notice to the Company at
any time at or prior to Closing Time or such Date of Delivery, as the case may
be, and such termination shall be without liability of any party to any other
party except as provided in Section 4 and except that Sections 1, 6, 7 and 8
shall survive any such termination and remain in full force and effect.
SECTION 6. Indemnification.
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(a) Indemnification of Underwriters by the Company. The Company agrees
to indemnify and hold harmless each Underwriter and each person, if any, who
controls any Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, as follows:
(i) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, arising out of any untrue statement or
alleged untrue statement of a material fact contained in the
Registration Statement (or any amendment thereto), including the Rule
430A Information and the Rule 434 Information, if applicable, or the
omission or alleged omission therefrom of a material fact required to
be stated therein or necessary to make the statements therein not
misleading or arising out of any untrue statement or alleged untrue
statement of a material fact included in any preliminary prospectus or
the Prospectus (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact necessary in
order to make the statements therein, in the light of the circumstances
under which they were made, not misleading;
(ii) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, arising out of (A) the violation of
any applicable laws or regulations of foreign jurisdictions where
Reserved Securities have been offered and (B) any untrue statement or
alleged untrue statement of a material fact included in the supplement
or prospectus wrapper material distributed in connection with the
reservation and sale of the Reserved Securities to certain eligible
employees and persons having business relationships with the Company or
the omission or alleged omission therefrom of a material fact necessary
to make the statements therein, when considered in conjunction with the
Prospectus or preliminary prospectus, not misleading;
(iii) against any and all loss, liability, claim, damage and
expense whatsoever, as incurred, to the extent of the aggregate amount
paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened,
or of any claim whatsoever based upon any such untrue statement or
omission, or any such alleged untrue statement or omission or in
connection with any violation of the nature referred to in Section
6(a)(ii)(A) hereof; provided that (subject to Section 6(d) below) any
such settlement is effected with the written consent of the Company;
and
(iv) against any and all expense whatsoever, as incurred
(including the fees and disbursements of counsel chosen by Xxxxx
Xxxxxxxx), reasonably incurred in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission or in
connection with any violation of the nature referred to in Section
6(a)(ii)(A) hereof, or any such alleged untrue statement or omission,
to the extent that any such expense is not paid under (i), (ii) or
(iii) above;
provided, however, that the foregoing indemnity agreement (i) shall not apply to
any loss, liability, claim, damage or expense to the extent arising out of any
untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with written information furnished to the
Company by any Underwriter through Xxxxx Xxxxxxxx expressly for use in the
25
Registration Statement (or any amendment thereto), including the Rule 430A
Information and the Rule 434 Information, if applicable, or any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto); and (ii)
with respect to any preliminary prospectus shall not inure to the benefit of any
Underwriter from whom the person asserting any loss, liability, claim, damage or
expense purchased Shares, or any person controlling such Underwriter, if a copy
of the Prospectus (as then amended or supplemented if the Company shall have
furnished any amendments or supplements thereto) was not sent or given by or on
behalf of such Underwriter to such person, if required by law so to have been
delivered, at or prior to the written confirmation of the sale of the Shares to
such person, and if the Prospectus (as so amended or supplemented) would have
cured the defect giving rise to such losses, liabilities, claims, damages or
expenses, unless such failure is the result of noncompliance by the Company with
Section 3(d) hereof. This indemnity agreement will be in addition to any
liability which the Company may otherwise have.
(b) Indemnification of Underwriters by the Selling Shareholder. The
Selling Shareholder agrees to indemnify and hold harmless each Underwriter and
each person, if any, who controls any Underwriter within the meaning of Section
15 of the 1933 Act or Section 20 of the 1934 Act, from and against any loss,
liability, claim, damage and expense whatsoever, as incurred, arising out of, or
based upon, (i) any untrue statement or alleged untrue statement of a material
fact contained in any preliminary prospectus, the Registration Statement or the
Prospectus or in any amendment or supplement thereto or (ii) the omission or
alleged omission to state in any preliminary prospectus, Registration Statement
or the Prospectus, or in any amendment or supplement thereto, any material fact
required to be stated therein or necessary to make the statements therein not
misleading, and shall reimburse each Underwriter and each person, if any, who
controls any Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act, for any legal or other expenses reasonably incurred
by that Underwriter, any such controlling person in connection with
investigating or defending or preparing to defend against any such loss,
liability, claim, damage or expense; provided, however, that the Selling
Shareholder shall be liable in any such case only to the extent that any such
loss, claim, damage, liability or expense arises out of, or is based upon, any
untrue statement or alleged untrue statement or omission or alleged omission
made in any preliminary prospectus, the Registration Statement or the Prospectus
or in any such amendment or supplement in reliance upon and in conformity with
written information concerning the Selling Shareholder furnished to the Company
specifically for inclusion therein; provided further, however, that the
foregoing indemnity agreement with respect to any preliminary prospectus shall
not inure to the benefit of any Underwriter from whom the person asserting any
loss, liability, claim, damage or expense purchased Shares, or any person
controlling such Underwriter, if a copy of the Prospectus (as then amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto) was not sent or given by or on behalf of such Underwriter to such
person, if required by law so to have been delivered, at or prior to the written
confirmation of the sale of the Shares to such person, and if the Prospectus (as
so amended or supplemented) would have cured the defect giving rise to such
losses, liabilities, claims, damages or expenses, unless such failure is the
result of noncompliance by the Company with Section 3(d) hereof; provided,
further, that the aggregate amount of the Selling Shareholder's indemnity and
contribution obligations under this paragraph 11(b) shall not exceed the net
proceeds received by such Selling Shareholder from its sale of Securities
hereunder.
26
(c) Indemnification of Company, Directors and Officers and Selling
Shareholder. Each Underwriter severally agrees to indemnify and hold harmless
the Company, its directors, each of its officers who signed the Registration
Statement, and each person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act, and the Selling
Shareholder and each person, if any, who controls the Selling Shareholder within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against
any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section, as incurred, but only
with respect to untrue statements or omissions, or alleged untrue statements or
omissions, made in the Registration Statement (or any amendment thereto),
including the Rule 430A Information and the Rule 434 Information, if applicable,
or any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information furnished
to the Company by such Underwriter through Xxxxx Xxxxxxxx expressly for use in
the Registration Statement (or any amendment thereto) or such preliminary
prospectus or the Prospectus (or any amendment or supplement thereto).
(d) Actions against Parties; Notification. Each indemnified party shall
give notice as promptly as reasonably practicable to each indemnifying party of
any action commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this indemnity
agreement. In the case of parties indemnified pursuant to Section 6(a) above,
counsel to the indemnified parties shall be selected by Xxxxx Xxxxxxxx, and, in
the case of parties indemnified pursuant to Section 6(b) above, counsel to the
indemnified parties shall be selected by the Company. An indemnifying party may
participate at its own expense in the defense of any such action; provided,
however, that counsel to the indemnifying party shall not (except with the
consent of the indemnified party) also be counsel to the indemnified party. In
no event shall the indemnifying parties be liable for fees and expenses of more
than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances. No indemnifying party shall,
without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 6 or Section
7 hereof (whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not include
a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.
(e) Settlement without Consent if Failure to Reimburse. If at any time
an indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, such indemnifying party
agrees that it shall be liable for any settlement of the nature contemplated by
Section 6(a)(iii) effected without its written consent if (i) such settlement is
entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request,
27
(ii) such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and
(iii) such indemnifying party shall not have reimbursed such indemnified party
in accordance with such request prior to the date of such settlement.
(f) Indemnification for Reserved Securities. In connection with the
offer and sale of the Reserved Securities, the Company agrees, promptly upon a
request in writing, to indemnify and hold harmless the Underwriters from and
against any and all losses, liabilities, claims, damages and expenses incurred
by them as a result of the failure of the eligible employees and persons having
business relationships with the Company to pay for and accept delivery of
Reserved Securities which, by the end of the first business day following the
date of this Agreement, were subject to a properly confirmed agreement to
purchase.
(g) Other Agreements with Respect to Indemnification. The provisions of
this Section shall not affect any agreement among the Company and the Selling
Shareholder with respect to indemnification.
SECTION 7. Contribution. If the indemnification provided for in Section
6 hereof is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the
Selling Shareholder on the one hand and the Underwriters on the other hand from
the offering of the Securities pursuant to this Agreement or (ii) if the
allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Company and the
Selling Shareholder on the one hand and of the Underwriters on the other hand in
connection with the statements or omissions, or in connection with any violation
of the nature referred to in Section 6(a)(ii)(A) hereof, which resulted in such
losses, liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.
The relative benefits received by the Company and the Selling
Shareholder on the one hand and the Underwriters on the other hand in connection
with the offering of the Securities pursuant to this Agreement shall be deemed
to be in the same respective proportions as the total net proceeds from the
offering of the Securities pursuant to this Agreement (before deducting
expenses) received by the Company and the Selling Shareholder and the total
underwriting discount received by the Underwriters, in each case as set forth on
the cover of the Prospectus, or, if Rule 434 is used, the corresponding location
on the Term Sheet, bear to the aggregate initial public offering price of the
Securities as set forth on such cover.
The relative fault of the Company and the Selling Shareholder on the
one hand and the Underwriters on the other hand shall be determined by reference
to, among other things, whether any such untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company or the Selling Shareholder or by the
Underwriters and the parties' relative intent, knowledge, access to information
and opportunity to
28
correct or prevent such statement or omission or any violation of the nature
referred to in Section 6(a)(ii)(A) hereof.
The Company, the Selling Shareholder and the Underwriters agree that it
would not be just and equitable if contribution pursuant to this Section 7 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 above in this Section
7. The aggregate amount of losses, liabilities, claims, damages and expenses
incurred by an indemnified party and referred to above in this Section 7 shall
be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.
Notwithstanding the provisions of this Section 7, no Underwriter shall
be required to contribute any amount in excess of the amount by which the total
price at which the Securities underwritten by it and distributed to the public
were offered to the public exceeds the amount of any damages which such
Underwriter has otherwise been required to pay by reason of any such untrue or
alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 0000 Xxx) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 7, each person, if any, who controls an
Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as such Underwriter, and
each director of the Company, each officer of the Company who signed the
Registration Statement, and each person, if any, who controls the Company or the
Selling Shareholder within the meaning of Section 15 of the 1933 Act or Section
20 of the 1934 Act shall have the same rights to contribution as the Company or
the Selling Shareholder, as the case may be. The Underwriters' respective
obligations to contribute pursuant to this Section 7 are several in proportion
to the number of Initial Securities set forth opposite their respective names in
Schedule A hereto and not joint.
The provisions of this Section shall not affect any agreement among the
Company and the Selling Shareholder with respect to contribution.
SECTION 8. Representations, Warranties and Agreements to Survive
Delivery. All representations, warranties and agreements contained in this
Agreement or in certificates of officers of the Company or any of the
Subsidiaries or the Selling Shareholder submitted pursuant hereto, shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of any Underwriter or controlling person, or by or on behalf of the
Company or the Selling Shareholder, and shall survive delivery of the Securities
to the Underwriters.
29
SECTION 9. Termination of Agreement.
(a) Termination; General. The Representatives may terminate this
Agreement, by notice to the Company and the Selling Shareholder, at any time at
or prior to Closing Time (i) if there has been, since the time of execution of
this Agreement or since the respective dates as of which information is given in
the Prospectus, any material adverse change in the condition, financial or
otherwise, or in the earnings, business affairs or business prospects of the
Company and the Subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business, or (ii) if there has occurred any
material adverse change in the financial markets in the United States or the
international financial markets, any outbreak of hostilities or escalation
thereof or other calamity or crisis or any change or development involving a
prospective change in national or international political, financial or economic
conditions, in each case the effect of which is such as to make it, in the
reasonable judgment of the Representatives, impracticable to market the
Securities or to enforce contracts for the sale of the Securities, or (iii) if
trading in any securities of the Company has been suspended or materially
limited by the Commission or the Nasdaq National Market, or if trading generally
on the American Stock Exchange or the New York Stock Exchange or in the Nasdaq
National Market has been suspended or materially limited, or minimum or maximum
prices for trading have been fixed, or maximum ranges for prices have been
required, by any of said exchanges or by such system or by order of the
Commission, the NASD or any other governmental authority, or (iv) if a banking
moratorium has been declared by either Federal, New York or Illinois
authorities.
(b) Liabilities. If this Agreement is terminated pursuant to this
Section, such termination shall be without liability of any party to any other
party except as provided in Section 4 hereof, and provided further that Sections
1, 6, 7 and 8 shall survive such termination and remain in full force and
effect.
SECTION 10. Default by One or More of the Underwriters. If one or more
of the Underwriters shall fail at Closing Time or a Date of Delivery to purchase
the Securities which it or they are obligated to purchase under this Agreement
(the "Defaulted Securities"), the Representatives shall have the right, within
24 hours thereafter, 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 Defaulted Securities in such amounts as may be agreed upon and upon the
terms herein set forth; if, however, the Representatives shall not have
completed such arrangements within such 24-hour period, then:
(a) if the number of Defaulted Securities does not exceed 10% of the
number of Securities to be purchased on such date, each of the non-defaulting
Underwriters shall be obligated, severally and not jointly, to purchase the full
amount thereof in the proportions that their respective underwriting obligations
hereunder bear to the underwriting obligations of all non-defaulting
Underwriters, or
(b) if the number of Defaulted Securities exceeds 10% of the number of
Securities to be purchased on such date, this Agreement or, with respect to any
Date of Delivery which occurs after the Closing Time, the obligation of the
Underwriters to purchase and of the Company to sell the
30
Option Securities to be purchased and sold on such Date of Delivery shall
terminate without liability on the part of any non-defaulting Underwriter.
No action taken pursuant to this Section shall relieve any defaulting
Underwriter from liability in respect of its default.
In the event of any such default which does not result in a termination
of this Agreement or, in the case of a Date of Delivery which is after the
Closing Time, which does not result in a termination of the obligation of the
Underwriters to purchase and the Company to sell the relevant Option Securities,
as the case may be, either (i) the Representatives or (ii) the Company and the
Selling Shareholder shall have the right to postpone Closing Time or the
relevant Date of Delivery, as the case may be, for a period not exceeding seven
days in order to effect any required changes in the Registration Statement or
Prospectus or in any other documents or arrangements. As used herein, the term
"Underwriter" includes any person substituted for an Underwriter under this
Section 10.
SECTION 11. Default by the Selling Shareholder or the Company.
(a) If the Selling Shareholder shall fail at Closing Time to sell and
deliver the number of Securities which the Selling Shareholder is obligated to
sell hereunder, then the Underwriters may, at the option of the Representatives,
by notice from the Representatives to the Company, either (a) terminate this
Agreement without any liability on the fault of any non-defaulting party except
that the provisions of Sections 1, 4, 6, 7 and 8 shall remain in full force and
effect or (b) elect to purchase the Securities which the Company has agreed to
sell hereunder. No action taken pursuant to this Section 11 shall relieve the
Selling Shareholder so defaulting from liability, if any, in respect of such
default.
In the event of a default by the Selling Shareholder as referred to in
this Section 11, each of the Representatives and the Company shall have the
right to postpone Closing Time for a period not exceeding seven days in order to
effect any required change in the Registration Statement or Prospectus or in any
other documents or arrangements.
(b) If the Company shall fail at Closing Time or at the Date of
Delivery to sell the number of Securities that it is obligated to sell
hereunder, then this Agreement shall terminate without any liability on the part
of any nondefaulting party; provided, however, that the provisions of Sections
1, 4, 6, 7 and 8 shall remain in full force and effect. No action taken pursuant
to this Section shall relieve the Company from liability, if any, in respect of
such default.
SECTION 12. Notices. All notices and other communications hereunder
shall be in writing and shall be deemed to have been duly given if mailed or
transmitted by any standard form of telecommunication. Notices to the
Underwriters shall be directed to the Representatives at c/o Keefe, Xxxxxxxx &
Xxxxx, Inc., 000 Xxxxxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, attention
of Xxxxxxxx Xxxxxxxx, Esq.; notices to the Company shall be directed to it at
000 Xxxx Xxxxxx Xxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxxx 00000, attention of Mr. J.
Xxxxxxxxxxx Xxxxxxx; and notices to the Selling Shareholder shall be directed to
_____________, attention of _____________.
31
SECTION 13. Parties. This Agreement shall each inure to the benefit of
and be binding upon the Underwriters, the Company and the Selling Shareholder
and their respective successors. Nothing expressed or mentioned in this
Agreement is intended or shall be construed to give any person, firm or
corporation, other than the Underwriters, the Company and the Selling
Shareholder and their respective successors and the controlling persons and
officers and directors referred to in Sections 6 and 7 and their heirs and legal
representatives, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision herein contained. This Agreement and
all conditions and provisions hereof are intended to be for the sole and
exclusive benefit of the Underwriters, the Company and the Selling Shareholder
and their respective successors, and said controlling persons and officers and
directors and their heirs and legal representatives, and for the benefit of no
other person, firm or corporation. No purchaser of Securities from any
Underwriter shall be deemed to be a successor by reason merely of such purchase.
SECTION 14. GOVERNING LAW AND TIME. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EXCEPT AS
OTHERWISE SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME.
SECTION 15. Effect of Headings. The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the
construction hereof.
[Signatures On Following Page]
32
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company and the Attorney-in-Fact for
the Selling Shareholder a counterpart hereof, whereupon this instrument, along
with all counterparts, will become a binding agreement among the Underwriters,
the Company and the Selling Shareholder in accordance with its terms.
Very truly yours,
XXXXXX CAPITAL GROUP, INC.
By
--------------------------------------------
Name:
-----------------------------------------
Title:
----------------------------------------
The Selling Shareholder
named in Schedule B hereto
By
------------------------------------------
As Attorney-in-Fact
CONFIRMED AND ACCEPTED,
as of the date first above written:
XXXXX XXXXXXXX & XXXXX, INC.
XXXXXX, XXXXXXXX & COMPANY, INCORPORATED
By: XXXXX XXXXXXXX & XXXXX, INC.
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
By: XXXXXX, XXXXXXXX & COMPANY, INCORPORATED
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
For themselves and as Representatives of the other Underwriters named in
Schedule A hereto.
33
SCHEDULE A
Number of
Name of Underwriter Initial
------------------- Securities
----------
Xxxxx Xxxxxxxx & Xxxxx, Inc.............................................................
Xxxxxx, Xxxxxxxx & Company, Incorporated................................................
----------
Total...................................................................................
==========
Sch A - 1
SCHEDULE B
Number of Initial Maximum Number of Option
Securities to be Sold Securities to Be Sold
--------------------- ---------------------
XXXXXX CAPITAL GROUP, INC................... 2,250,000 337,500
XXXXXX X. XXXXXX TRUST U/A/D 9/17/96........ 525,000 None
Total............................... 2,775,000 337,500
Sch B - 1
SCHEDULE C
XXXXXX CAPITAL GROUP, INC.
_________________ Shares of Common Stock
(Par Value $.01 Per Share)
1. The initial public offering price per share for the Securities,
determined as provided in said Section 2, shall be $ .
2. The purchase price per share for the Securities to be paid by the
several Underwriters shall be $ , being an amount equal to the initial public
offering price set forth above less $ per share; provided that the purchase
price per share for any Option Securities purchased upon the exercise of the
over-allotment option described in Section 2(b) shall be reduced by an amount
per share equal to any dividends or distributions declared by the Company and
payable on the Initial Securities but not payable on the Option Securities.
Sch C - 1
SCHEDULE D
LIST OF SUBSIDIARIES
Sch D - 1
SCHEDULE E
LIST OF PERSONS AND ENTITIES SUBJECT TO LOCK-UP
Sch E - 1
EXHIBIT A
FORM OF OPINION OF COMPANY'S COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
(i) The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware. Other than
the subsidiaries set forth on Schedule D to the Underwriting Agreement (each, a
"Subsidiary" and collectively, the "Subsidiaries"), the Company does not own or
control, directly or indirectly, more than 5% of any class of equity security of
any corporation, association or other entity.
(ii) The Company has full corporate power and authority to own, lease
and operate its properties and to conduct its business as described in the
Prospectus and to enter into and perform its obligations under the Underwriting
Agreement.
(iii) The Company is duly qualified as a foreign corporation to
transact business and is in good standing in each jurisdiction listed on
Schedule D to the Underwriting Agreement.
(iv) The Company is duly registered as a bank holding company under the
Bank Holding Company Act of 1956, as amended (the "BHC Act"). Xxxx Xxxxxx Bank
is duly licensed in the State of Illinois by the Illinois Commissioner of Banks
and Real Estate (the "ICBRE").
(v) The authorized, issued and outstanding capital stock of the Company
is as set forth in the Prospectus under the caption "Capitalization" (except for
subsequent issuances, if any, pursuant to the Underwriting Agreement and
subsequent issuances or purchases pursuant to reservations, agreements or
employee benefit plans referred to in the Prospectus or pursuant to the exercise
of convertible securities or options referred to in the Prospectus). The shares
of issued and outstanding capital stock, including the Securities to be
purchased by the Underwriters from the Selling Shareholder, have been duly
authorized and validly issued and are fully paid and non-assessable; none of the
outstanding shares of capital stock, including the Securities to be purchased by
the Underwriters from the Selling Shareholder, was issued in violation of or are
otherwise subject to any preemptive or other similar rights of any
securityholder of the Company.
(vi) The Securities to be purchased by the Underwriters from the
Company have been duly authorized for issuance and sale to the Underwriters
pursuant to the Underwriting Agreement and, when issued and delivered by the
Company pursuant to the Underwriting Agreement against payment of the
consideration set forth therein, will be validly issued and fully paid and
non-assessable; the certificates evidencing the Common Stock are in due and
proper form under Delaware law. To the best of our knowledge, there are no
outstanding subscriptions, options, warrants, convertible or exchangeable
securities or other rights granted to or by the Company to purchase shares of
Common Stock or other securities of the Company and, to the best of our
knowledge, there are no commitments, plans or arrangements to issue any shares
of Common Stock or any security convertible into or exchangeable for Common
Stock, in each case other than as described in the Prospectus.
(vii) The issuance and sale of the Securities by the Company and the
sale of the Securities by the Selling Shareholder is not subject to the
preemptive or other similar rights of any securityholder of the Company other
than those described in the Prospectus that have been waived.
(viii) Each Subsidiary is a corporation or banking corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, as the case may be, has the
requisite power, corporate or otherwise, and authority to own, lease and operate
its properties and to conduct its business as described in the Prospectus and is
duly qualified as a foreign corporation to transact business and is in good
standing in each jurisdiction listed on Schedule D to the Underwriting
Agreement, except as otherwise disclosed in the Registration Statement, all of
the issued and outstanding capital stock of each Subsidiary has been duly
authorized and validly issued, is fully paid and non-assessable and, to the best
of our knowledge, is owned by the Company, directly or through
A-1
a Subsidiary, free and clear of any security interest, mortgage, pledge, lien,
encumbrance, claim or equity; none of the outstanding shares of capital stock of
any Subsidiary was issued in violation of the preemptive or similar rights of
any securityholder of such Subsidiary.
(ix) All necessary corporate action has been duly and validly taken by
the Company to authorize the execution, delivery and performance of the
Underwriting Agreement and the issuance and sale of the Securities by the
Company. The Underwriting Agreement has been duly authorized, executed and
delivered by the Company and constitutes a valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except as
the enforceability hereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles and except as to
those provisions relating to indemnities for liabilities arising under the 1933
Act as to which no opinion need be expressed.
(x) The Registration Statement, including any Rule 462(b) Registration
Statement, has been declared effective under the 1933 Act; any required filing
of the Prospectus pursuant to Rule 424(b) has been made in the manner and within
the time period required by Rule 424(b); and, to the best of our knowledge, no
stop order suspending the effectiveness of the Registration Statement or any
Rule 462(b) Registration Statement has been issued under the 1933 Act and no
proceedings for that purpose have been instituted or are pending or threatened
by the Commission.
(xi) The Registration Statement, including any Rule 462(b) Registration
Statement, the Rule 430A Information, the Rule 434 Information, as applicable,
the Prospectus, excluding the documents incorporated by reference therein, and
each amendment or supplement to the Registration Statement and Prospectus,
excluding the documents incorporated by reference therein, as of their
respective effective or issue dates (other than the financial statements and
supporting schedules and other statistical and operating data included therein
or omitted therefrom, as to which we need express no opinion) complied as to
form in all material respects with the requirements of the 1933 Act and the 1933
Act Regulations.
(xii) 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 charter and by-laws of the Company and
the requirements of the Nasdaq National Market.
(xiii) To the best of our knowledge and other than as described in the
Prospectus, there is not pending or threatened any action, suit, proceeding,
inquiry or investigation, to which the Company or any Subsidiary is a party, or
to which the property of the Company or any Subsidiary is subject, before or
brought by any court or governmental agency or body, domestic or foreign, which
might reasonably be expected to result in a Material Adverse Effect, or which
might reasonably be expected to materially and adversely affect the properties
or assets thereof or the consummation of the transactions contemplated in the
Underwriting Agreement or the Trust Preferred Securities Underwriting Agreement
or the performance by the Company of its obligations under the Underwriting
Agreement or the Trust Preferred Securities Underwriting Agreement.
(xiv) The information in the Prospectus under "Description of Capital
Stock," "Description of the Trust Preferred Securities," "Supervision and
Regulation," "Management," "Certain Relationships and Related Transactions" and
"Shares Eligible for Future Sale" and in the Registration Statement under Item
15, to the extent that it constitutes matters of law, summaries of legal
matters, the Company's charter and bylaws, legal proceedings or legal
conclusions, has been reviewed by us and is complete and correct in all material
respects and accurately presents the information called for with respect to such
information.
(xv) To the best of our knowledge, there are no statutes or regulations
that are required to be described in the Prospectus that are not described as
required.
(xvi) All descriptions in the Registration Statement of contracts and
other documents to which the Company or the Subsidiaries are a party are
accurate in all material respects; there are no franchises, contracts,
indentures, mortgages, loan agreements, notes, leases or other instruments
required to be described or referred to in the Registration Statement or to be
filed as exhibits thereto other than those described or referred to therein or
filed as exhibits thereto, and the descriptions thereof or references thereto
are correct in all material respects.
A-2
(xvii) To the best of our knowledge, neither the Company nor any
Subsidiary is in violation of any provision of its charter or by-laws and,
except as described in the Prospectus, no default by the Company or any
Subsidiary exists in the due performance or observance of any material
obligation, agreement, covenant or condition contained in any contract,
indenture, mortgage, loan agreement, note, lease or other agreement or
instrument that is described or referred to in the Registration Statement or the
Prospectus or filed or incorporated by reference as an exhibit to the
Registration Statement and each such agreement or instrument is in full force
and effect and is valid and enforceable by and against the Company or any of the
Subsidiaries, as the case may be, and, to the best of our knowledge, the other
parties thereto, in accordance with its terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors' rights generally and by
general equitable principles.
(xviii) No filing with, or authorization, approval, consent, license,
order, registration, qualification or decree of, any court or governmental
authority or agency, domestic or foreign (other than under the 1933 Act, the
1933 Act Regulations, the 1934 Act, the 1934 Act Regulations, the Trust
Indenture Act and the Trust Indenture Act Regulations, which have been obtained,
or as may be required under the securities or blue sky laws of the various
states, as to which we need express no opinion) is necessary or required in
connection with the due authorization, execution and delivery of the
Underwriting Agreement or the Trust Preferred Securities Underwriting Agreement
or for the offering, issuance, sale or delivery of the Securities or the Trust
Preferred Securities.
(xix) The execution, delivery and performance of the Underwriting
Agreement and the consummation of the transactions contemplated in the
Underwriting Agreement, in the Trust Preferred Securities Underwriting Agreement
and in the Registration Statement (including (i) the issuance and sale of the
Securities and the use of the proceeds from the sale of the Securities as
described in the Prospectus under the caption "Use of Proceeds" and (ii) the
issuance and sale of the Trust Preferred Securities and the use of the proceeds
from the sale of the Trust Preferred Securities as described in the prospectus
relating thereto under the caption "Use of Proceeds") and compliance by the
Company with its obligations under the Underwriting Agreement and under the
Trust Preferred Securities Underwriting Agreement do not and will not, whether
with or without the giving of notice or lapse of time or both, conflict with or
constitute a breach of, or default or Repayment Event (as defined in Section
1(a)(x) of the Underwriting Agreement) under or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Company or any Subsidiary pursuant to any contract, indenture, mortgage, deed of
trust, loan or credit agreement, note, lease or any other agreement or
instrument, known to us, to which the Company or any Subsidiary is a party or by
which it or any of them may be bound, or to which any of the property or assets
of the Company or any Subsidiary is subject (except for such conflicts, breaches
or defaults or liens, charges or encumbrances that would not have a Material
Adverse Effect), nor will such action result in any violation of the provisions
of the charter or by-laws of the Company or any Subsidiary, or any applicable
law, statute, rule, regulation, judgment, order, writ or decree, known to us, of
any government, government instrumentality or court, domestic or foreign, having
jurisdiction over the Company or any Subsidiary (including the rules,
regulations and requirements of the United States Federal Reserve System (the
"Federal Reserve") and the banking laws and regulations of the State of Illinois
and the banking laws and regulations of other applicable jurisdictions) or any
of their respective properties, assets or operations.
(xx) To the best of our knowledge, the Company and the Subsidiaries
have complied and are in compliance in all material respects with all federal,
state and local statutes, regulations, ordinances and rules as now in effect and
applicable to the ownership and operation of their properties or the conduct of
their businesses as described in the Prospectus and as currently being conducted
except where the failure so to comply would not, singly or in the aggregate,
have a Material Adverse Effect. To the best of our knowledge, neither the
Company nor any Subsidiary engages, directly or indirectly, in any activity
prohibited by the Federal Reserve, the BHC Act, other federal banking or
consumer protection laws or the regulations promulgated thereunder or the
banking or consumer protection laws and
A-3
regulations of the State of Illinois or the banking or consumer protection laws
and regulations of other applicable jurisdictions, which would result in a
Material Adverse Effect.
(xxi) To the best of our knowledge, and other than as described in the
Prospectus, neither the Company nor any Subsidiary is subject to a directive
from the Federal Deposit Insurance Corporation (the "FDIC"), the Federal
Reserve, the ICBRE or any other governmental authority to make any material
changes in the method of conducting its business and no such directive is
pending or threatened by such authorities. To the best of our knowledge, the
Company and the Subsidiaries are not subject to any cease-and-desist order,
prompt correction action directive, civil money penalty, orders of prohibition,
consent order, written agreement, memorandum of understanding, or other
enforcement actions or supervisory agreements issued by the Federal Reserve, the
FDIC, the ICBRE or any other federal or state bank regulatory agency to which
the Company or any Subsidiary is subject.
(xxii) The Company is not an "investment company" or an entity
"controlled" by an "investment company," as such terms are defined in the 1940
Act.
(xxiii) The capital stock of the Company conforms in all material
respects to the description thereof contained in the Prospectus under the
caption "Description of Capital Stock."
(xxiv) All offers and sales of capital stock of the Company prior to
the date hereof were at all relevant times duly registered or exempt from the
registration requirements of the Securities Act and were duly registered or
subject to an available exemption from the registration requirements of the
applicable state securities or Blue Sky laws.
(xxv) To the best of our knowledge, no holder of any security of the
Company has the right to have any security owned by such holder included in the
Registration Statement or to demand registration of any security owned by such
holder during the period ending 180 days after the date of this Agreement, which
rights have not been waived.
Nothing has come to our attention that would lead us to believe that
the Registration Statement or any amendment thereto, including the Rule 430A
Information and Rule 434 Information (except for financial statements and
schedules and other financial data included or incorporated by reference therein
or omitted therefrom, as to which we need make no statement), at the time such
Registration Statement or any such amendment became effective, contained an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
or that the Prospectus or any amendment or supplement thereto (except for
financial statements and schedules and other financial data included or
incorporated by reference therein or omitted therefrom, as to which we need make
no statement), at the time the Prospectus was issued, at the time any such
amended or supplemented prospectus was issued or at the Closing Time, included
or includes an untrue statement of a material fact or omitted or omits to state
a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. The Securities
have been approved for listing on the Nasdaq National Market.
Wherever we indicate that our opinion with respect to the existence or
absence of facts is, to the best of our knowledge, our opinion is based solely
on the knowledge, after reasonable investigation, of the attorneys in this firm
who have been involved in representing the Company.
In rendering such opinion, such counsel may rely, as to matters of fact
(but not as to legal conclusions), to the extent they deem proper, on
certificates of responsible officers of the Company and public officials. Such
opinion shall not state that it is to be governed or qualified by, or that it is
otherwise subject to, any treatise, written policy or other document relating to
legal opinions, including, without limitation, the Legal Opinion Accord of the
ABA Section of Business Law
A-4
(1991). Nothing contained in the preceding sentence shall prevent counsel from
making assumptions and qualifications which are customary in transactions of
this type.
A-5
EXHIBIT B
FORM OF OPINION OF COMPANY'S SPECIAL COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(c)
(i) The description of the legal proceedings arising out of the
split-off transactions, and the effect of the settlement thereof (the "Split-Off
Legal Proceedings"), each as included in the Prospectus under the heading
"Litigation and Settlement," complies in all material respects with Item 103 of
Regulation S-K.
(ii) Each of the settlement agreements and amendments described in the
Prospectus under the heading "Litigation and Settlement" (the "Settlement
Agreements") have been duly authorized, executed and delivered by the Company
and is in full force and effect and is valid and enforceable against the Company
and, to our knowledge, against the other parties thereto, in accordance with its
terms, except as enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by general equitable principles.
In the course of our representation of the Company in respect of the
Split-Off Legal Proceedings and the negotiation and execution of the Settlement
Agreements, nothing has come to our attention that causes us to believe that,
the description of the Split-Off Legal Proceedings and the Settlement Agreements
included in the Registration Statement or any amendment thereto under the
heading "Litigation and Settlement," at the time such Registration Statement or
any such amendment became effective, contained an untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary to make the statements constituting such description not misleading or
that, the description of the Split-Off Legal Proceedings and the Settlement
Agreements included in the Prospectus or any amendment or supplement thereto
under the heading "Litigation and Settlement" at the time the Prospectus was
issued, at the time any such amended or supplemented prospectus was issued or at
the Closing Time, included or includes an untrue statement of a material fact or
omitted or omits to state a material fact necessary in order to make the
statements constituting such description, in the light of the circumstances
under which they were made, not misleading.
In rendering such opinion, such counsel may rely, as to matters of fact
(but not as to legal conclusions), to the extent they deem proper, on
certificates of responsible officers of the Company and public officials. Such
opinion shall not state that it is to be governed or qualified by, or that it is
otherwise subject to, any treatise, written policy or other document relating to
legal opinions, including, without limitation, the Legal Opinion Accord of the
ABA Section of Business Law (1991).
B-1
EXHIBIT C
FORM OF OPINION OF COUNSEL FOR THE SELLING SHAREHOLDER
TO BE DELIVERED PURSUANT TO SECTION 5(d)
(i) No filing with, or consent, approval, authorization, license,
order, registration, qualification or decree of, any court or governmental
authority or agency, domestic or foreign, (other than the issuance of the order
of the Commission declaring the Registration Statement effective and such
authorizations, approvals or consents as may be necessary under state securities
laws, as to which we need express no opinion) is necessary or required to be
obtained by the Selling Shareholder for the performance by the Selling
Shareholder of its obligations under the Underwriting Agreement or in the Power
of Attorney and Custody Agreement, or in connection with the offer, sale or
delivery of the Securities.
(ii) The Power of Attorney and Custody Agreement has been duly executed
and delivered by the Selling Shareholder and constitutes the legal, valid and
binding agreement of the Selling Shareholder.
(iii) The Underwriting Agreement has been duly authorized, executed and
delivered by or on behalf of the Selling Shareholder.
(iv) The Attorney-in-Fact has been duly authorized by the Selling
Shareholder to deliver the Securities on behalf of the Selling Shareholder in
accordance with the terms of the Underwriting Agreement.
(v) The execution, delivery and performance of the Underwriting
Agreement and the Power of Attorney and Custody Agreement and the sale and
delivery of the Securities and the consummation of the transactions contemplated
in the Underwriting Agreement and in the Registration Statement and compliance
by the Selling Shareholder with its obligations under the Underwriting Agreement
have been duly authorized by all necessary action on the part of the Selling
Shareholder and do not and will not, whether with or without the giving of
notice or passage of time or both, conflict with or constitute a breach of, or
default under or result in the creation or imposition of any tax, lien, charge
or encumbrance upon the Securities or any property or assets of the Selling
Shareholder pursuant to, any contract, indenture, mortgage, deed of trust, loan
or credit agreement, note, license, lease or other instrument or agreement to
which the Selling Shareholder is a party or by which the Selling Shareholder may
be bound, or to which any of the property or assets of the Selling Shareholder
may be subject nor will such action result in any violation of the provisions of
the charter or by-laws of the Selling Shareholder, if applicable, or any law,
administrative regulation, judgment or order of any governmental agency or body
or any administrative or court decree having jurisdiction over the Selling
Shareholder or any of its properties.
(vi) To the best of our knowledge, the Selling Shareholder has valid
and marketable title to the Securities to be sold by the Selling Shareholder
pursuant to the Underwriting Agreement, free
C-1
and clear of any pledge, lien, security interest, charge, claim, equity or
encumbrance of any kind, and has full right, power and authority to sell,
transfer and deliver such Securities pursuant to the Underwriting Agreement. By
delivery of a certificate or certificates therefor the Selling Shareholder will
transfer to the Underwriters who have purchased such Securities pursuant to the
Underwriting Agreement valid and marketable title to such Securities, free and
clear of any pledge, lien, security interest, charge, claim, equity or
encumbrance of any kind.
Nothing has come to our attention that would lead us to believe that
the Registration Statement or any amendment thereto, including the Rule 430A
Information and Rule 434 Information (if applicable) (except for financial
statements and schedules and other financial data included or incorporated by
reference therein or omitted therefrom, as to which we need make no statement),
at the time such Registration Statement or any such amendment became effective,
contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading or that the Prospectus or any amendment or supplement thereto
(except for financial statements and schedules and other financial data included
or incorporated by reference therein or omitted therefrom, as to which we need
make no statement), at the time the Prospectus was issued, at the time any such
amended or supplemented prospectus was issued or at the Closing Time, included
or includes an untrue statement of a material fact or omitted or omits to state
a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.
C-2
EXHIBIT D
FORM OF LOCK-UP LETTER
[-], 2002
XXXXX, XXXXXXXX & XXXXX, INC.
XXXXXX, XXXXXXXX & COMPANY, INCORPORATED
as Representatives of the several
Underwriters to be named in the
within-mentioned Underwriting Agreement
c/o Keefe, Xxxxxxxx & Xxxxx, Inc.
0000 Xxxxxxx Xxxx Xxxx
Xxxx Xxxxx, Xxxxxxxx 00000
Re: Proposed Public Offering by Xxxxxx Capital Group, Inc.
Ladies and Gentlemen:
The undersigned is the beneficial owner of the common stock, $.01 par
value per share (the "Common Stock"), or securities convertible into or
exchangeable or exercisable for Common Stock (the "Other Securities"), of Xxxxxx
Capital Group, Inc., a Delaware corporation (the "Company"), set forth below.
The undersigned understands that the Company has filed a Registration Statement
on Form S-1 (the "Registration Statement") with the Securities and Exchange
Commission (the "Commission") in connection with the initial public offering of
the Company's Common Stock (the "Offering"). The undersigned also understands
that Xxxxx, Xxxxxxxx & Xxxxx, Inc. ("Xxxxx") and Xxxxxx, Xxxxxxxx & Company,
Incorporated, as Representatives of the several Underwriters, propose to enter
into an Underwriting Agreement (the "Underwriting Agreement") with the Company
in connection with the Offering. All terms not otherwise defined herein shall
have the same meanings as in the Underwriting Agreement.
In recognition of the benefit that the Offering will confer upon the
undersigned as a stockholder, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the undersigned
agrees, for the benefit of the Company, Xxxxx and each Underwriter to be named
in the Underwriting Agreement, that, during a period of 180 days from the date
of the final Prospectus filed with the Commission pursuant to Rule 424(b) of the
Securities Act of 1933, as amended (the "Act"), promulgated by the Commission,
or if no filing under Rule 424(b) is made, the date of the final Prospectus
included in the Registration Statement when declared effective under the Act.
The undersigned will not, without the prior written consent of Xxxxx, on behalf
of the Underwriters, directly or indirectly, (a) offer, sell, offer to sell,
contract to sell, pledge, grant any option to purchase or otherwise sell or
dispose (or announce any offer, sale, offer of sale,
D-1
contract of sale, pledge, grant of any option to purchase or other sale or
disposition) of (i) any shares of Common Stock, Other Securities or any
securities substantially similar thereto, or (ii) any other securities
convertible into, or exchangeable or exercisable for, shares of Common Stock
or such Other Securities or similar securities, beneficially owned (within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended)
by the undersigned on the date hereof or hereafter acquired or (b) enter into
any swap or any other agreement or any transaction that transfers, in whole
or in part, directly or indirectly, the economic consequence of ownership of
the Common Stock or Other Securities, whether any such swap or transaction is
to be settled by delivery of Common Stock or Other Securities, in cash or
other otherwise.
Further, the undersigned agrees that at any time prior to the effective
date of the Registration Statement, the undersigned will not, without the prior
written consent of Xxxxx, on behalf of the Underwriters, directly or indirectly,
offer, sell, offer to sell, contract to sell, pledge, grant any option to
purchase or otherwise sell or dispose (or announce any offer, sale, offer of
sale, contract of sale, pledge, grant of any option to purchase or other sale or
disposition) of (i) any shares of Common Stock, Other Securities, or securities
substantially similar thereto, or (ii) any other securities convertible into, or
exchangeable or exercisable for, any shares of Common Stock or such Other
Securities or similar securities, beneficially owned (within the meaning of Rule
13d-3 under the Securities Exchange Act of 1934, as amended) by the undersigned
on the date hereof or hereafter acquired without first requiring any such
offering or acquiring parties execute and deliver to Xxxxx an agreement of
substantially the tenor hereof.
Notwithstanding the foregoing, the undersigned may transfer Common
Stock or Other Securities of the Company (i) as a bona fide gift or gifts,
provided that prior to such transfer the donee or donees thereof agree in
writing to be bound by the restrictions set forth herein, (ii) to any trust,
partnership, corporation or other entity formed for the direct or indirect
benefit of the undersigned or the immediate family of the undersigned, provided
that prior to such transfer a duly authorized officer, representative or trustee
of such transferee agrees in writing to be bound by the restrictions set forth
herein, and provided further that any such transfer shall not involve a
disposition for value or (iii) if such transfer occurs by operation of law, such
as rules of descent and distribution, statutes governing the effects of a merger
or a qualified domestic order, provided that prior to such transfer the
transferee executes an agreement stating that the transferee is receiving and
holding the shares subject to the provisions of this agreement. For purposes
hereof, "immediate family" shall mean any relationship by blood, marriage or
adoption, not more remote than first cousin.
D-2
The undersigned hereby confirms that he, she or it understands that the
Underwriters and the Company will rely upon the representations set forth in
this agreement in proceeding with the Offering. This agreement shall be binding
on the undersigned and his, her or its respective successors, heirs, personal
representatives and assigns.
Very truly yours,
Signature:
-------------------------------
Print Name:
-------------------------------
The foregoing is accepted and agreed to as of the date first written above:
XXXXX, XXXXXXXX & XXXXX, INC.
By:
----------------------------
Name:
Title:
OWNERSHIP OF COMMON STOCK AND OTHER SECURITIES:
Type of Security Number of Shares*
---------------- ----------------
Common Stock........................
Options.............................
Warrants............................
Convertible Securities..............
Other (please describe):
* For securities other than Common Stock, indicate the aggregate number of
shares of Common Stock into which or for which such securities are convertible,
exchangeable or exercisable.
D-3
Annex A
[FORM OF ACCOUNTANTS' COMFORT LETTER PURSUANT TO SECTION 5(h)]
We are independent certified public accountants with respect to the Company
within the meaning of the 1933 Act and the applicable published 1933 Act
Regulations:
(i) in our opinion, the audited financial statements and the related
financial statement schedules included in the Registration Statement and the
Prospectus comply as to form in all material respects with the applicable
accounting requirements of the 1933 Act and the published 1933 Act Regulations;
(ii) on the basis of procedures (but not an examination in accordance
with generally accepted auditing standards) consisting of a reading of the
unaudited interim consolidated financial statements of the Company for the three
month periods ended March 31, 2002 and March 31, 2001 and the three and six
month periods ended June 30, 2002 and 2001 included in the Registration
Statement and the Prospectus (collectively, the "Interim Financials"), a reading
of the minutes of all meetings of the stockholders and directors of the Company
and its subsidiaries since December 31, 2001, inquiries of certain officials of
the Company and its subsidiaries responsible for financial and accounting
matters, a review of interim financial information in accordance with standards
established by the American Institute of Certified Public Accountants in
Statement on Auditing Standards No. 71, Interim Financial Information ("SAS
71"), with respect to the three month periods ended March 31, 2002 and March 31,
2001 and the three and six month periods ended June 30, 2002 and 2001 and such
other inquiries and procedures as may be specified in such letter, nothing came
to our attention that caused us to believe that:
(A) at a specified date not more than five days prior to the
date of this Agreement, there was any increases in the current
liabilities and the long-term liabilities of the Company and its
subsidiaries or any decreases in net assets or working capital or the
stockholders' equity in the Company and its subsidiaries, in each case
as compared with amounts shown in the latest balance sheet included in
the Registration Statement, except in each case for changes, decreases
or increases that the Registration Statement discloses have occurred or
may occur; or
(B) for the period from March 31, 2002 to June 30, 2002 and
for the period from March 31, 2002 to a specified date not more than
five days prior to the date of this Agreement, there was any decrease
in net interest income or in the total or per share amounts of net
income, in each case as compared with the comparable period in the
preceding year, except in each case for any decreases that the
Registration Statement discloses have occurred or may occur;
(iii) Based upon the procedures set forth in clause (ii) above and a
reading of the Selected Financial Data included in the Registration Statement
and a reading of the financial statements from which such data were derived,
nothing came to our attention that caused us to believe that the Selected
Financial Data included in the Registration Statement do not comply as to form
in all material respects with the disclosure requirements of Item 301 of
Regulation S-K of the 1933 Act,
Annex A-1
that the amounts included in the Selected Financial Data are not in agreement
with the corresponding amounts in the audited consolidated financial statements
for the respective periods or that the financial statements not included in the
Registration Statement from which certain of such data were derived are not in
conformity with generally accepted accounting principles;
(iv) we have compared the information in the Registration Statement
under selected captions with the disclosure requirements of Regulation S-K of
the 1933 Act and on the basis of limited procedures specified herein. Nothing
came to our attention that caused us to believe that this information does not
comply as to form in all material respects with the disclosure requirements of
Items 302, 402 and 503(d), respectively, of Regulation S-K; and
(v) in addition to the procedures referred to in clause (ii) above, we
have performed other procedures, not constituting an audit, with respect to
certain amounts, percentages, numerical data and financial information appearing
in the Registration Statement, which are specified herein, and have compared
certain of such items with, and have found such items to be in agreement with,
the accounting and financial records of the Company.
Annex A-2
