Exhibit 1.1
GIVEN IMAGING LTD.
6,200,000 ORDINARY SHARES
UNDERWRITING AGREEMENT
----------------------
February __, 2002
XXXXXX BROTHERS INC.
BEAR, XXXXXXX & CO. INC.
XXXXXXXXX XXXXXXXX, INC.
As Representatives of the
several underwriters
c/x XXXXXX BROTHERS INC.
000 Xxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Ladies and Gentlemen:
Given Imaging Ltd., a company organized under the laws of the State of
Israel (the "COMPANY"), proposes to issue and sell to the underwriters named in
Schedule 1 hereto (the "UNDERWRITERS") 3,000,000 shares (the "COMPANY FIRM
SHARES") of the Company's ordinary shares, having a nominal value of NIS 0.05
per share (the "ORDINARY SHARES"), and those shareholders of the Company named
in Schedule 2 hereto (the "SELLING SHAREHOLDERS") propose to sell to the
Underwriters an aggregate of 3,200,000 Ordinary Shares (such Ordinary Shares,
together with the Company Firm Shares, the "FIRM SHARES").
In addition, certain Selling Shareholders propose to grant to the
Underwriters an option to purchase up to an aggregate of an additional 930,000
Ordinary Shares (the "OPTION SHARES") on the terms and for the purposes set
forth in Section 3 of this Agreement. The Firm Shares and the Option Shares, if
purchased, are hereinafter collectively called the "SHARES." This is to confirm
the agreement concerning the purchase of the Shares from the Company and the
Selling Shareholders by the Underwriters.
SECTION 1. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE COMPANY.
The Company represents, warrants and agrees that:
(a) A registration statement on Form F-1 (File No. 333-[______]) with
respect to the Shares has (i) been prepared by the Company in conformity with
the requirements of the Securities Act of 1933, as amended (the "SECURITIES
ACT"), and the rules and regulations (the "RULES AND REGULATIONS") of the
Securities and Exchange Commission (the "COMMISSION") thereunder, (ii) been
filed with the Commission under the Securities Act and (iii) become effective
under the Securities Act. The registration statement contains a prospectus to be
used in connection with the offering and sale of the Shares. Copies of such
registration statement and each of the amendments thereto have been delivered by
the Company to you as the representatives (the "REPRESENTATIVES") of the
Underwriters. As used in this Agreement, "EFFECTIVE TIME" means the date and the
time as of which such registration statement, or the most recent post-effective
amendment thereto, if any, was declared effective by the Commission; "EFFECTIVE
DATE" means the date of the Effective Time; "PRELIMINARY PROSPECTUS" means the
prospectus included in such registration statement, or amendments thereof,
before it became effective under the Securities Act and any prospectus filed
with the Commission by the Company with the consent of the Representatives
pursuant to Rule 424(a) of the Rules and Regulations, provided, however, that
the term "Preliminary Prospectus" shall not include any prospectus submitted
confidentially to (and not filed with) the Commission; "REGISTRATION STATEMENT"
means such registration statement, as amended at the Effective Time, including
all information contained in the final prospectus filed with the Commission
pursuant to Rule 424(b) of the Rules and Regulations in accordance with Section
6(a) hereof and deemed to be a part of the registration statement as of the
Effective Time pursuant to Rule 430A of the Rules and Regulations; and
"PROSPECTUS" means the prospectus in the form first filed with the Commission
pursuant to Rule 424(b) of the Rules and Regulations. If the Company has filed
an abbreviated registration statement to register additional Ordinary Shares
pursuant to Rule 462(b) under the Securities Act (the "RULE 462 REGISTRATION
STATEMENT"), then any reference herein to the term "REGISTRATION STATEMENT"
shall be deemed to include such Rule 462 Registration Statement. Subject to
compliance by the Underwriters with the provisions of the final paragraph of
Section 4 of this Agreement, the Company is not required to publish a prospectus
in Israel under the laws of the State of Israel.
(b) The Registration Statement conforms, and the Prospectus and any
further amendments or supplements to the Registration Statement or the
Prospectus will, when they become effective or are filed with the Commission, as
the case may be, conform in all material respects to the requirements of the
Securities Act and the Rules and Regulations and do not and will not, as of the
applicable Effective Date (as to the Registration Statement and any amendment
thereto) and as of the applicable filing date (as to the Prospectus and any
amendment or supplement thereto) 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;
provided that no representation or warranty is made as to information contained
in or omitted from the Registration Statement or the Prospectus in reliance upon
and in conformity with written information furnished to the Company through the
Representatives by or on behalf of any Underwriter specifically for inclusion
therein.
(c) Neither the Commission nor the Israel Securities Authority (the
"ISA") has issued any order preventing or suspending the use of the Preliminary
Prospectus, and no proceeding for that purpose has been initiated or, to the
Company's knowledge, threatened by either the Commission or the ISA.
(d) The Company and each of its subsidiaries (as defined in Section 17)
have been duly incorporated and are validly existing as corporations in good
standing under the laws of their respective jurisdictions of incorporation (to
the extent good standing is recognized in such jurisdictions), are duly
qualified to do business and are in good standing as foreign corporations in
each jurisdiction (to the extent good standing is recognized in such
jurisdictions) in which their respective ownership or lease of property or the
conduct of their respective businesses requires such qualification, except where
the failure to be so qualified would not reasonably be expected to have a
material adverse effect on the business, financial condition or results of
operations of the Company and its subsidiaries taken as a whole (a "MATERIAL
ADVERSE EFFECT"), and have all power and authority necessary to own or hold
their respective properties and to conduct the businesses in which they are
engaged; and none of the subsidiaries of the Company is a "significant
subsidiary," as such term is defined in Rule 405 of the Rules and Regulations.
(e) The Company has an authorized capitalization as set forth in the
Prospectus, and all of the issued shares of capital stock of the Company have
been duly and validly authorized and issued, are fully paid and non-assessable
and conform to the description thereof contained in the Prospectus; and all of
the issued shares of capital stock of each subsidiary of the Company have been
duly and validly authorized and issued and are fully paid and non-assessable and
are owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims.
(f) The Shares to be issued and sold by the Company to the Underwriters
hereunder have been duly and validly authorized and, when issued and delivered
against payment therefor in accordance with this Agreement, will be duly and
validly issued, fully paid and non-assessable; and the Shares will conform to
the descriptions thereof contained in the Prospectus.
(g) This Agreement has been duly authorized, executed and delivered by
the Company and constitutes a valid and binding obligation of the Company.
(h) The execution, delivery and performance by the Company of this
Agreement and the consummation of the transactions contemplated hereby does not
and will not conflict with or result in a breach or violation of (A) any of the
terms or provisions of, or constitute a default under, any indenture, mortgage,
deed of trust, loan agreement or other agreement or instrument to which the
Company or any of its subsidiaries is a party or by which the Company or any of
its subsidiaries is bound or to which any of the property or assets of the
Company or any of its subsidiaries is subject, (B) the provisions of articles of
association of the Company or (C) any of the governing documents of any of its
subsidiaries or any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of its
subsidiaries or any of their properties or assets, except in the case of (A) and
(C) above for such conflicts, breaches or violations which, individually or in
the aggregate, would not reasonably be expected to have a Material Adverse
Effect; and except for the registration of the Shares under the Securities Act
and the Rules and Regulations and such consents, approvals, authorizations,
registrations or qualifications as may be required under the Securities Exchange
Act of 1934, as amended (the "EXCHANGE ACT"), and the regulations promulgated
thereunder, and applicable state securities and "blue sky" laws and foreign
securities laws, or the National Association of Securities Dealers in connection
with the purchase and distribution of the Shares by the Underwriters, no
consent, approval, authorization or order of, or filing or registration with,
any such court or governmental agency or body is required for the execution,
delivery and performance by the Company of this Agreement or any of the other
documents entered or to be entered into in connection with the consummation of
the transactions contemplated hereby except such as have been obtained and made
and those that are not required to have been obtained or made prior to the
Closing (which the Company hereby undertakes to obtain or make as required).
(i) Except as described in the Prospectus, there are no contracts,
agreements or understandings between the Company and any person granting such
person the right to require the Company to file a registration statement under
the Securities Act with respect to any securities of the Company owned or to be
owned by such person or to require the Company to include such securities in the
securities registered pursuant to the Registration Statement or in any
securities being registered pursuant to any other registration statement filed
by the Company under the Securities Act.
(j) Except as described in the Prospectus, the Company has not sold or
issued any Ordinary Shares or any securities convertible into or exchangeable
for
Ordinary Shares during the six-month period preceding the date of the
Prospectus, including any sales pursuant to Rule 144A under, or Regulations D or
S of, the Securities Act, other than Ordinary Shares issued pursuant to employee
benefit plans, qualified stock option plans or other employee compensation plans
or pursuant to outstanding options, rights or warrants described in the
Prospectus.
(k) Neither the Company nor any of its subsidiaries has sustained,
since the date of the latest audited financial statements included in the
Prospectus, any material loss or material interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance,
or from any labor dispute or court or governmental action, order or decree,
otherwise than as set forth or contemplated in the Prospectus; and, since such
date, there has not been any change in the capital stock of the Company or any
of its subsidiaries (other than subsequent issuances, if any, pursuant to the
Company's employee benefit plans, qualified stock option plans or other employee
compensation plans described in the Prospectus or upon exercise of outstanding
options, rights or warrants described in the Prospectus) or the long-term debt
of the Company and its subsidiaries (other than as set forth in the consolidated
financial statements filed as part of the Registration Statement) or any
Material Adverse Change or any development involving a prospective Material
Adverse Change, otherwise than as set forth or contemplated in the Prospectus.
(l) The consolidated financial statements (including the related notes
and supporting schedules) filed as part of the Registration Statement or
included in the Prospectus present fairly in all material respects the financial
condition and results of operations of the Company and its consolidated
subsidiaries, at the dates and for the periods indicated, and have been prepared
in conformity with U.S. generally accepted accounting principles applied on a
consistent basis throughout the periods involved.
(m) KPMG Somekh Xxxxxxx, a member of KPMG International, who have
certified certain financial statements of the Company, whose report appears in
the Prospectus and who have delivered the initial letter referred to in Section
9(j) hereof, are independent public accountants as required by the Securities
Act and the Rules and Regulations.
(n) Neither the Company nor any of its subsidiaries owns any real
property; the Company and each of its subsidiaries have good and marketable
title to all personal property owned by them which is material to the conduct of
the Company's business, in each case free and clear of all liens, encumbrances
and defects, except such as are described in the Prospectus or such as do not
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 and
its subsidiaries; and
all real property and other assets held under lease by the Company or any of its
subsidiaries are held by them under valid, subsisting and enforceable leases,
with such exceptions as are not material and do not interfere with the use made
and proposed to be made of such property and buildings by the Company and its
subsidiaries.
(o) Except as set forth or contemplated in the Prospectus, the Company
and each of its subsidiaries carry, or are covered by, insurance in such amounts
and covering such risks as would reasonably be expected to be adequate for the
conduct of their respective businesses and the value of their respective
properties and as is customary for companies engaged in similar businesses in
similar industries.
(p) To the best of the Company's knowledge, (a) neither the Company nor
any of its subsidiaries is currently infringing or has infringed any patent,
trademark or copyright rights of others, (b) all trade secrets, know how,
technical processes and procedures developed and belonging to the Company (or
any of its subsidiaries) which are material to the business of the Company (or
any of its subsidiaries) as presently conducted and which have not been patented
have been kept confidential, and (c) except as set forth or contemplated in the
Prospectus, the Company and each of its subsidiaries own or possess the right to
use, free and clear of claims or rights of others, all patents, patent
applications, trademarks, service marks, trade names, trademark registrations,
service xxxx registrations, copyrights, licenses, trade secrets, customer lists,
processes, and owned computer software required for their respective businesses
as presently conducted or believes that it can acquire the same on reasonable
terms. Except as set forth or contemplated in the Prospectus, neither the
Company nor any of its subsidiaries has received any notice of any claim of
conflict with any such rights of others. To the best of the Company's knowledge,
neither the Company nor any of its subsidiaries is using or has used any
confidential information, trade secrets, or computer software (not licensed to
the Company or such subsidiary) of any former employer of any of its past or
present employees.
(q) There are no legal or governmental proceedings pending to which the
Company or any of its subsidiaries is a party or of which any property or assets
of the Company or any of its subsidiaries is the subject (including, but not
limited to, proceedings or investigations by the Israeli tax authorities, VAT
authorities, customs authorities or environmental authorities, or by the Israeli
National Insurance Institute) which, if determined adversely to the Company or
any of its subsidiaries, would reasonably be expected to have a Material Adverse
Effect; and to the Company's knowledge, except as set forth or contemplated in
the Prospectus, no such proceedings are threatened or contemplated by
governmental authorities or others.
(r) There are no contracts or other documents which are required to be
described in the Prospectus or filed as exhibits to the Registration Statement
by the Securities Act or by the Rules and Regulations which have not been
described in the Prospectus or filed as exhibits to the Registration Statement.
(s) No relationship, direct or indirect, exists between or among the
Company on the one hand, and the directors, officers, shareholders, customers or
suppliers of the Company on the other hand, which is required to be described in
the Prospectus which is not so described.
(t) No labor disturbance by the employees of the Company exists or, to
the knowledge of the Company, is imminent, which would reasonably be expected to
have a Material Adverse Effect.
(u) The Company is in compliance in all material respects with all
presently applicable provisions of the Employee Retirement Income Security Act
of 1974, as amended, including the regulations and published interpretations
thereunder ("ERISA"); no "reportable event" (as defined in ERISA) has occurred
with respect to any "pension plan" (as defined in ERISA) for which the Company
would have any liability; the Company has not incurred and does not expect to
incur liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any "pension plan" or (ii) Sections 412 or 4971 of the Internal
Revenue Code of 1986, as amended, including the regulations and published
interpretations thereunder (the "CODE"); and each "pension plan" for which the
Company would have any liability that is intended to be qualified under Section
401(a) of the Code is so qualified in all material respects and nothing has
occurred, whether by action or by failure to act, which would cause the loss of
such qualification.
(v) The Company has complied and is in compliance, in all material
respects, with all applicable foreign, provincial and municipal laws, rules and
regulations relating to employees and employment practices, terms and conditions
of employment, employee relations, wages and hours, civil rights and equal
employment opportunities, including, without limitation, the Hours of Work and
Rest Law of the State of Israel, except where lack of such compliance would not
reasonably be expected to have a Material Adverse Effect; and the Company (i)
has performed in all material respects all obligations required to be performed
by it under any of its employee benefit plans (including the making when due of
all contributions required by applicable law, governmental rule or regulation or
by an agreement to which the Company is a party), (ii) is not in default under
or in violation of any such employee benefit plan and (iii) is in compliance
with the requirements prescribed by statutes, orders or governmental rules or
regulations applicable to such employee benefit plans.
(w) The Company has filed with the appropriate taxing authorities all
Tax Returns (as defined below) required to be filed through the date hereof and
has paid all taxes shown as due thereon; such Tax Returns are each true, correct
and complete in all material respects; and no tax deficiency has been determined
adversely to the Company or any of its subsidiaries which has had (nor does the
Company have any knowledge of any tax deficiency which, if determined adversely
to the Company or any of its subsidiaries, would reasonably be expected to have)
a Material Adverse Effect. The term "TAX RETURN" means any return or report
regarding taxes supplied by the Company or any of its subsidiaries to a taxing
authority in Israel, the United States or elsewhere.
(x) None of the issuance, sale or delivery to the Underwriters of the
Shares is subject to any tax imposed on the Company by Israel or any political
subdivision thereof, except the Israeli stamp tax applicable to the issuance of
the Shares (which stamp tax will be paid by the Company promptly after each
Delivery Date (as hereinafter defined) in accordance with Israeli law).
(y) Since the date as of which information is given in the Prospectus
through the date hereof, and except as may otherwise be disclosed in the
Prospectus, neither the Company nor any of its subsidiaries has (i) issued or
granted any securities other than options issued pursuant to employee benefit
plans, qualified stock option plans or other employee compensation plans and
Ordinary Shares issued pursuant to such plans or pursuant to outstanding
options, rights or warrants, (ii) incurred any material liability or obligation,
direct or contingent, other than liabilities and obligations which were incurred
in the ordinary course of business, (iii) entered into any transaction not in
the ordinary course of business or (iv) declared or paid any dividend on its
capital stock.
(z) The Company (i) makes and keeps accurate books and records and (ii)
maintains internal accounting controls which provide reasonable assurance that
(A) transactions are executed in accordance with management's authorization, (B)
transactions are recorded as necessary to permit preparation of its financial
statements and to maintain accountability for its assets, and (C) access to its
assets is permitted only in accordance with management's authorization.
(aa) Neither the Company nor any of its subsidiaries (i) is in
violation of its articles of association or other governing documents, (ii) is
in default in any respect, and no event has occurred which, with notice or lapse
of time or both, would constitute such a default, in the due performance or
observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which it is a party or by which it is bound or to which any of its properties or
assets is subject or (iii) is in violation in any respect of
any law, ordinance, governmental rule, regulation or court decree to which it or
its property or assets is subject, where in the case of (ii) and (iii) such
default or violation would reasonably be expected to have a Material Adverse
Effect.
(bb) Except as set forth or contemplated in the Prospectus, the Company
and each of its subsidiaries has or believes that it can obtain (and, in each
jurisdiction with respect to which the Company or one of its subsidiaries has
engaged a third party distributor of the Company's products, such third party
distributor has or the Company believes that such third party distributor can
obtain with respect to the Company's products to be sold by such distributor) in
the ordinary course when required all material licenses, certificates, permits,
consents, orders, approvals and authorizations from U.S. and foreign government
authorities, including, without limitation, the United States Food and Drug
Administration (the "FDA") and United States Federal Communications Commission
(the "FCC") and any agency of any foreign government and any other foreign
regulatory authority exercising authority comparable to that of the FDA or the
FCC (including any non-governmental entity whose approval or authorization is
required under foreign law comparable to that administered by the FDA or the
FCC), in each jurisdiction where the Company's current product is, or, as
described in the Prospectus, is proposed to be sold (each a "PERMIT") that are
necessary to the ownership of its property or to the conduct of its business in
the manner and to the extent now conducted, with no material restrictions or
qualifications. Each such Permit that has been obtained is in full force and
effect, and no proceeding has been instituted or is pending or, to the best of
the Company's knowledge, is contemplated or threatened, which in any manner
affects or draws into question the validity or effectiveness thereof or relates
in any way to the revocation or modification thereof.
(cc) There has been no storage, disposal, generation, manufacture,
refinement, transportation, handling or treatment of toxic wastes, medical
wastes, hazardous wastes or hazardous substances by the Company or any of its
subsidiaries (or, to the knowledge of the Company, any of their predecessors in
interest) at, upon or from any of the property now or previously owned or leased
by the Company or its subsidiaries in violation of any applicable law,
ordinance, rule, regulation, order, judgment, decree or permit or which would
require remedial action under any applicable law, ordinance, rule, regulation,
order, judgment, decree or permit, except for any violation or remedial action
which would not have, or would not reasonably be expected to have, singularly or
in the aggregate with all such violations and remedial actions, a Material
Adverse Effect; there has been no material spill, discharge, leak, emission,
injection, escape, dumping or release of any kind onto such property or into the
environment surrounding such property of any toxic wastes, medical wastes, solid
wastes, hazardous wastes or hazardous substances due to or caused by the Company
or any of its subsidiaries or with respect to which the
Company or any of its subsidiaries have knowledge, except for any such spill,
discharge, leak, emission, injection, escape, dumping or release which would not
have or would not be reasonably likely to have, singularly or in the aggregate
with all such spills, discharges, leaks, emissions, injections, escapes,
dumpings and releases, a Material Adverse Effect; neither the Company nor any of
its subsidiaries has received written notice of any actual or potential
liability for the investigation or remediation of any disposal or release of
hazardous wastes, toxic wastes, hazardous substances or medical wastes, except
where such violation would not reasonably be expected to have a Material Adverse
Effect; and the terms "HAZARDOUS WASTES," "TOXIC WASTES," "HAZARDOUS
SUBSTANCES," and "MEDICAL WASTES" shall have the meanings specified in any
applicable local, state, federal and foreign laws or regulations with respect to
environmental protection.
(dd) Neither the Company nor any of it subsidiaries, nor, to the
knowledge of the Company, any director, officer, agent, employee or other person
associated with or acting on behalf of the Company or any of its subsidiaries,
has used any corporate funds for any unlawful contribution, gift, entertainment
or other unlawful expense relating to political activity; made any direct or
indirect unlawful payment to any foreign or domestic government official or
employee from corporate funds; violated or is in violation of any provision of
the Foreign Corrupt Practices Act of 1977; or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment.
(ee) For the taxable year ended December 31, 2001, the Company was
not, and for the taxable year ending December 31, 2002, after giving effect
to the offering and sale of the Shares and the application of the proceeds
thereof as described in the Prospectus, the Company is not expected to
become a "passive foreign investment company" within the meaning of Section
1297 of the Code.
(ff) The Company is not, nor as of the First Delivery Date, will be, an
"investment company" as defined in the Investment Company Act of 1940, as
amended.
(gg) The Company has not taken and will not knowingly take, directly or
indirectly, any action in the United States or Israel designed to cause or
result in the stabilization or manipulation of the price of the Ordinary Shares
to facilitate the sale or resale of the Shares in violation of the Securities
Act, the Rules and Regulations, the Exchange Act or the rules and regulations of
the Commission thereunder (including, without limitation, Regulation M), it
being understood that the Company makes no representation, warranty or
undertaking regarding the Underwriters.
(hh) The Shares have been approved for listing on the Nasdaq National
Market, subject to notice of issuance.
(ii) Except for any agreement with the Underwriters and this Agreement,
there are no contracts, agreements or understandings between the Company and any
person that would give rise to a valid claim against the Company or any
Underwriter for a brokerage commission, finder's fee or other like payment in
connection with this offering.
(jj) The Registration Statement and its filing with the Commission, and
the Prospectus have been duly authorized by and on behalf of the Company, and
the Registration Statement has been duly executed pursuant to such authorization
by and on behalf of the Company.
(kk) The Company has validly appointed Given Imaging, Inc. as its
authorized agent for service of process pursuant to this Agreement and in
connection with the Registration Statement.
(ll) Neither the Company nor any of its subsidiaries does business with
the government of Cuba or with any person or affiliate located in Cuba within
the meaning of Section 517.075, Florida Statutes.
SECTION 2. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE SELLING
SHAREHOLDERS. Except as otherwise specified below, each Selling Shareholder
severally and not jointly represents, warrants and agrees that:
(a) The Selling Shareholder has, and immediately prior to each Delivery
Date (as defined in Section 5 hereof) on which the Selling Shareholder is to
sell Shares hereunder, the Selling Shareholder will have, good and valid title
to the Shares to be sold by the Selling Shareholder hereunder on such date, free
and clear of all liens, encumbrances, equities or claims; and upon delivery of
such Shares and payment therefor pursuant hereto, good and valid title to such
shares, free and clear of all liens, encumbrances, equities or claims, will pass
to the several Underwriters.
(b) The Selling Shareholder has placed in custody under a custody
agreement (the "CUSTODY AGREEMENT" and, together with each similar agreement
executed by each other Selling Shareholder, the "CUSTODY AGREEMENTS") with the
Company, as custodian (the "CUSTODIAN"), for delivery under this Agreement, one
or more certificates accompanied by a duly executed share transfer deed or deeds
bearing the signature of the undersigned (guaranteed by an Eligible Guarantor
Institution which is a member of a Medallion Signature Guarantee Program
recognized by the Stock Transfer Association (in the case that the undersigned
is a United States person) or with signatures certified by a notary public under
the Israeli
Notaries Law, 1976 (in the case that the undersigned is an Israeli person))
representing the Shares to be sold by the Selling Shareholder hereunder.
(c) The Selling Shareholder has duly and irrevocably executed and
delivered a power of attorney (the "POWER OF ATTORNEY" and, together with each
other similar agreement executed by each other Selling Shareholder, the "POWERS
OF ATTORNEY") appointing the Company and one or more other persons, as
attorneys-in-fact, with full power of substitution, and with full authority
(exercisable by any one or more of them) to execute and deliver this Agreement
and to take such other action as may be necessary or desirable to carry out the
provisions hereof on behalf of the Selling Shareholder.
(d) The Selling Shareholder has full right, power and authority to
enter into, and to perform all of its obligations under, this Agreement, the
Custody Agreement and the Power of Attorney; each of this Agreement, the Custody
Agreement and the Power of Attorney constitutes the legal, valid and binding
obligation of the Selling Shareholder; the execution, delivery and performance
of this Agreement, the Custody Agreement and the Power of Attorney by the
Selling Shareholder and the consummation by the Selling Shareholder of the
transactions contemplated hereby and thereby will not conflict with or result in
a breach or violation of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Selling Shareholder is a party or by which
the Selling Shareholder is bound or to which any of the property or assets of
the Selling Shareholder is subject, nor will such actions result in any
violation of the provisions of the governing documents of the Selling
Shareholder or any statute or any order, rule or regulation of any court or
governmental agency or body having jurisdiction over the Selling Shareholder or
the property or assets of the Selling Shareholder; and, except for the
registration of the Shares under the Securities Act and the Rules and
Regulations and such consents, approvals, authorizations, registrations or
qualifications as may be required under the Exchange Act, and the regulations
promulgated thereunder, and applicable state securities and "blue sky" laws and
foreign securities laws, or the National Association of Securities Dealers in
connection with the purchase and distribution of the Shares by the Underwriters,
no consent, approval, authorization or order of, or filing or registration with,
any such court or governmental agency or body is required for the execution,
delivery and performance of this Agreement, the Custody Agreement and the Power
of Attorney by the Selling Shareholder or the consummation by the Selling
Shareholder of the transactions contemplated hereby and thereby except such as
have been obtained and made and those that are not required to have been
obtained or made prior to the Closing (which the Selling Shareholder hereby
undertakes to obtain or make as required).
(e) (i) With respect to each Selling Shareholder other than RDC Xxxxxx
Development Corporation, Discount Investment Corporation and Elron
Electronic Industries Ltd. (the "RDC GROUP") solely with respect to
information provided by such Selling Shareholder in writing
specifically for inclusion therein, which information consists solely
of the information specified in Section 10(f), the Registration
Statement and the Prospectus and any further amendments or supplements
to the Registration Statement or the Prospectus do not and will not, as
of the applicable Effective Date (as to the Registration Statement and
any amendment thereto) and as of the applicable filing date (as to the
Prospectus and any amendment or supplement thereto) 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; provided that no representation or warranty is made as to
information contained in or omitted from the Registration Statement or
the Prospectus in reliance upon and in conformity with written
information furnished to the Company through the Representatives by or
on behalf of any Underwriter specifically for inclusion therein.
(ii) With respect to each Selling Shareholder included within
the RDC Group, such Selling Shareholder is familiar with the
Registration Statement and the Prospectus (as amended or supplemented),
and the Registration Statement and the Prospectus and any further
amendments or supplements to the Registration Statement or the
Prospectus do not and will not, as of the applicable Effective Date (as
to the Registration Statement and any amendment thereto) and as of the
applicable filing date (as to the Prospectus and any amendment or
supplement thereto) 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; provided that
no representation or warranty is made as to information contained in or
omitted from the Registration Statement or the Prospectus in reliance
upon and in conformity with written information furnished to the
Company through the Representatives by or on behalf of any Underwriter
specifically for inclusion therein.
(f) (i) With respect to each Selling Shareholder other than those
included within the RDC Group, the sale of Shares by such Selling
Shareholder is not prompted by any information concerning the Company
of which such Selling Shareholder is aware which is not set forth in
the Registration Statement and the Prospectus.
(ii) With respect to each Selling Shareholder included within
the RDC Group, such Selling Shareholder has no reason to believe that
the
representations and warranties of the Company contained in Section 1
hereof are not materially true and correct, and the sale of Shares by
such Selling Shareholder is not prompted by any information concerning
the Company which is not set forth in the Registration Statement and
the Prospectus.
(g) 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 the stabilization or
manipulation of the price of any security of the Company to facilitate the sale
or resale of the Shares, including, without limitation, any action in violation
of the Securities Act, the Rules and Regulations, the Exchange Act or the rules
and regulations of the Commission thereunder (including, without limitation,
Regulation M).
SECTION 3. PURCHASE OF THE SHARES BY THE UNDERWRITERS.
On the basis of the representations and warranties contained in, and
subject to the terms and conditions of, this Agreement, (i) the Company agrees
to sell 3,000,000 Firm Shares to the several Underwriters, (ii) each of the
Selling Shareholders agrees, severally and not jointly, to sell to the several
Underwriters the number of Firm Shares set forth next to such Selling
Shareholder's name on Schedule 2 hereto, and (iii) each of the Underwriters,
severally and not jointly, agrees to purchase the number of Firm Shares set
forth opposite that Underwriter's name in Schedule 1 hereto, plus any additional
number of Firm Shares which such Underwriter may become obligated to purchase
pursuant to the provisions of Section 9 of this Agreement. The respective
purchase obligations of the Underwriters with respect to the Firm Shares shall
be rounded among the Underwriters to avoid fractional shares, as the
Representatives may determine.
In addition, on the basis of the representations and warranties
contained in, and subject to the terms and conditions of, this Agreement, each
of the Selling Shareholders listed in Schedule 2 hereto as selling Option
Shares, respectively, grant, severally and not jointly, to the Underwriters an
option to purchase up to the number of Option Shares set forth opposite such
Selling Shareholder's name on Schedule 2 hereto. Such option is granted for the
purpose of covering over-allotments in the sale of Firm Shares and is
exercisable as provided in Section 5 hereof. Option Shares shall be purchased
severally for the account of the Underwriters in proportion to the number of
Firm Shares set forth opposite the name of such Underwriters in Schedule 1
hereto. To the extent that the Underwriters exercise the option to purchase
fewer than the total number of Option Shares offered hereunder, the Underwriters
shall purchase Option Shares from each Selling Shareholder listed in Schedule 2
hereto as selling Option Shares in the same proportion that the number of Option
Shares offered by such Selling Shareholder bears to the total number of Option
Shares
offered by the Selling Shareholders hereunder. The respective purchase
obligations of each Underwriter with respect to the Option Shares shall be
adjusted by the Representatives so that no Underwriter shall be obligated to
purchase Option Shares other than in 100 share amounts.
The price of both the Firm Shares and any Option Shares shall be
$[____] per share.
Neither the Company nor any Selling Shareholder shall be obligated to
deliver any of the Shares to be delivered on any Delivery Date (as hereinafter
defined), except upon payment to such party for all the Shares to be purchased
from such party on such Delivery Date as provided herein.
SECTION 4. OFFERING OF SHARES BY THE UNDERWRITERS.
Upon authorization by the Representatives of the release of the Firm
Shares, the several Underwriters propose to offer the Firm Shares for sale upon
the terms and conditions set forth in the Prospectus.
The Underwriters undertake not to offer or sell any Shares in Israel,
except that the Underwriters may (A) offer for sale and sell Shares to
corporations which qualify under Section 15A(B)(1) of the Israeli Securities
Law, 1968, (B) offer Shares to other persons in Israel whose number (pursuant to
offers by all Underwriters) do not exceed thirty-five (35), and (C) sell Shares
to other persons in Israel whose number (pursuant to offers by all Underwriters)
do not exceed 35. The Underwriters further undertake to obtain a representation
from each purchaser of Shares offered by the Underwriters in Israel that such
purchaser is purchasing such Shares for investment purpose and for such
purchaser's own account, and not for the purpose of resale.
SECTION 5. DELIVERY OF AND PAYMENT FOR THE SHARES.
Delivery of and payment for the Firm Shares shall be made at the
offices of White & Case LLP, 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx
00000, at 10:00 A.M., New York City time, on the fourth full business day
following the date of this Agreement or at such other date or place as shall be
determined by agreement between the Representatives and the Company. This date
and time are sometimes referred to as the "FIRST DELIVERY DATE." On the First
Delivery Date, the Company and the Custodian, on behalf of the Selling
Shareholders, shall deliver or cause to be delivered certificates representing
the Firm Shares to the Representatives for the account of each Underwriter
against payment to or upon the order of the Company and the Custodian, on behalf
of the Selling Shareholders, of the purchase price by wire transfer in
immediately available funds. Time shall be of the essence, and
delivery at the time and place specified pursuant to this Agreement is a further
condition of the obligation of each Underwriter hereunder. Upon delivery, the
Firm Shares shall be registered in such names and in such denominations as the
Representatives shall request in writing not less than two full business days
prior to the First Delivery Date. For the purpose of expediting the checking and
packaging of the certificates for the Firm Shares, the Company and the
Custodian, on behalf of the Selling Shareholders, shall make the certificates
representing the Firm Shares available for inspection by the Representatives in
New York, New York, not later than 2:00 P.M., New York City time, on the
business day prior to the First Delivery Date.
The option granted in Section 2 will expire 30 days after the date of
this Agreement and may be exercised in whole or in part from time to time by
written notice being given by the Representatives to the Company and the
Custodian, on behalf of those Selling Shareholders listed in Schedule 2 hereto
as selling Option Shares. Such notice shall set forth the aggregate number of
Option Shares as to which the options are being exercised, the names in which
the Option Shares are to be registered, the denominations in which the Option
Shares are to be issued and the date and time, as determined by the
Representatives, when the Option Shares are to be delivered; provided, however,
that this date and time shall not be earlier than the First Delivery Date nor
earlier than the second business day after the date on which the option shall
have been exercised nor later than the fifth business day after the date on
which the option shall have been exercised. The date and time the Option Shares
are delivered are sometimes referred to as a "SECOND DELIVERY DATE" and the
First Delivery Date and any Second Delivery Date are sometimes each referred to
as a "DELIVERY DATE."
Delivery of and payment for the Option Shares shall be made at the
place specified in the first sentence of the first paragraph of this Section 5
(or at such other place as shall be determined by agreement between the
Representatives and the Company) at 10:00 A.M., New York City time, on such
Second Delivery Date. On such Second Delivery Date, the Custodian, on behalf of
those Selling Shareholders listed in Schedule 2 hereto as selling Option Shares,
shall deliver or cause to be delivered the certificates representing the Option
Shares to the Representatives for the account of each Underwriter against
payment to or upon the order of the Custodian, on behalf of those Selling
Shareholders listed in Schedule 2 hereto as selling Option Shares, by wire
transfer in immediately available funds of the respective portion of the
purchase price payable to Shareholders. Time shall be of the essence, and
delivery at the time and place such specified pursuant to this Agreement is a
further condition of the obligation of each Underwriter hereunder. Upon
delivery, the Option Shares shall be registered in such names and in such
denominations as the Representatives shall request in the aforesaid written
notice.
For the purpose of expediting the checking and packaging of the certificates for
the Option Shares, the Custodian, on behalf of those Selling Shareholders listed
in Schedule 2 hereto as selling Option Shares, shall make the certificates
representing the Option Shares available for inspection by the Representatives
in New York, New York, not later than 2:00 P.M., New York City time, on the
business day prior to such Second Delivery Date.
SECTION 6. FURTHER AGREEMENTS OF THE COMPANY. The Company agrees:
(a) To prepare the Prospectus in a form approved by the
Representatives and to file such Prospectus pursuant to Rule 424(b) under the
Securities Act not later than the Commission's close of business on the second
business day following the execution and delivery of this Agreement or, if
applicable, such earlier time as may be required by Rule 430A(a)(3) under the
Securities Act; to use reasonable best efforts to cause the Registration
Statement to become effective; to give the Representatives notice of its
intention to file any amendment to the Registration Statement or amendment or
supplement to the Prospectus; to advise the Representatives, promptly after it
receives notice thereof, of the time when any amendment to the Registration
Statement has been filed or becomes effective or any supplement to the
Prospectus or any amended Prospectus has been filed and to furnish the
Representatives with copies thereof; to advise the Representatives, promptly
after it receives notice thereof, of (1) the issuance by the Commission, the ISA
or any other foreign or Israeli regulatory body, of any stop order or of any
order preventing or suspending the use of any Preliminary Prospectus or the
Prospectus or of the suspension of the qualification of the Shares for offering
or sale in any jurisdiction, (2) the initiation or threatening of any proceeding
for any such purpose, or (3) any request by the Commission for the amending or
supplementing of the Registration Statement or the Prospectus or for additional
information; and, in the event of the issuance of any stop order or of any order
preventing or suspending the use of any Preliminary Prospectus or the Prospectus
or suspending any such qualification, to use promptly its reasonable best
efforts to obtain its withdrawal;
(b) To furnish promptly to each of the Representatives and to counsel
for the Underwriters a signed copy of the Registration Statement as originally
filed with the Commission, and each amendment thereto filed with the Commission,
including all consents and exhibits filed therewith;
(c) To deliver promptly to the Representatives such number of the
following documents as the Representatives shall reasonably request: (i)
conformed copies of the Registration Statement as originally filed with the
Commission and each amendment thereto (in each case excluding exhibits) and (ii)
the Preliminary Prospectus, the Prospectus and any amended or supplemented
Prospectus; and, if the
delivery of a prospectus is required at any time after the Effective Time in
connection with the offering or sale of the Shares or any other securities
relating thereto and if at such time any events shall have occurred as a result
of which the Prospectus as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made when such Prospectus is delivered, not misleading, or, if
for any other reason it shall be necessary to amend or supplement the Prospectus
in order to comply with the Securities Act, to notify the Representatives and,
upon their request, to prepare and furnish without charge to each Underwriter
and to any dealer in securities as many copies as the Representatives may from
time to time reasonably request of an amended or supplemented Prospectus which
will correct such statement or omission or effect such compliance.
(d) To file promptly with the Commission any amendment to the
Registration Statement or the Prospectus or any supplement to the Prospectus
that may, in the judgment of the Company or the Representatives, be required by
the Securities Act or requested by the Commission;
(e) Prior to filing with the Commission any amendment to the
Registration Statement or supplement to the Prospectus or any Prospectus
pursuant to Rule 424 of the Rules and Regulations, to furnish a copy thereof to
the Representatives and counsel for the Underwriters and not to file any such
document to which the Representatives or counsel for the Underwriters shall
reasonably object in writing;
(f) To timely file such reports pursuant to the Exchange Act as are
necessary in order to make generally available to the Company's shareholders an
earnings statement of the Company and its subsidiaries (which need not be
audited) for the purposes of, and to provide the benefits contemplated by, the
last paragraph of Section 11(a) of the Securities Act;
(g) For a period of five years following the Effective Date, to furnish
to the Representatives copies of all materials furnished by the Company to its
shareholders generally and all public reports and all reports and financial
statements furnished by the Company to the Commission, the Nasdaq Stock Market
Inc. or to any national securities exchange upon which the Ordinary Shares may
be listed pursuant to requirements of or agreements with such exchange or to the
Commission pursuant to the Exchange Act or any rule or regulation of the
Commission thereunder;
(h) Promptly from time to time to take such action as the
Representatives may reasonably request to qualify the Shares for offering and
sale under the securities
laws of such jurisdictions as the Representatives may reasonably request and to
comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the
distribution of the Shares; provided that in connection therewith the Company
shall not be required to qualify as a foreign corporation or as a dealer in
securities, to become subject to taxation or to file a general consent to
service of process in any such jurisdiction, and provided further that in
connection therewith, the Company shall not be required to offer the Shares to
the public in any jurisdiction outside of the United States or to prepare a
separate disclosure document other than the Registration Statement or the
Prospectus or such supplementary disclosure document as may be reasonably
required for use with the Prospectus to form any Canadian offering memorandum
that may be delivered in connection with the distribution of the Shares;
(i) (A) For a period of 90 days from the date of the Prospectus, not
to, directly or indirectly, (1) offer for sale, sell, contract or grant any
option to sell, pledge, transfer or otherwise dispose of (or enter into any
transaction or device which is designed to, or could reasonably be expected to,
result in the disposition by any person at any time in the future of) any
Ordinary Shares or securities convertible into or exchangeable for Ordinary
Shares (other than (x) the Shares to be sold hereunder; (y) pursuant to employee
benefit plans or qualified stock option plans which, by their terms or by other
written agreement, cannot be sold, pledged or otherwise disposed of within a
period of 90 days from the date of the Prospectus without the prior written
consent of Xxxxxx Brothers Inc. and Bear, Xxxxxxx & Co. Inc. on behalf of the
Underwriters; or (z) other employee compensation plans existing on the date
hereof or pursuant to currently outstanding options, warrants or rights), or
sell or grant options, rights or warrants with respect to any Ordinary Shares or
securities convertible into or exchangeable for Ordinary Shares (other than the
grant of options pursuant to option plans existing on the date hereof), or (2)
enter into any swap or other derivatives transaction that transfers to another,
in whole or in part, any of the economic benefits or risks of ownership of such
Ordinary Shares, whether any such transaction described in clause (1) or (2)
above is to be settled by delivery of Ordinary Shares or other securities, in
cash or otherwise, in each case without the prior written consent of Xxxxxx
Brothers Inc. and Bear, Xxxxxxx & Co. Inc. on behalf of the Underwriters; (B) to
cause each shareholder known to the Company to own of record 5% or more of the
Ordinary Shares outstanding (including any optionholder who, upon the exercise
of all options held by such optionholder, would own of record 5% or more of the
Ordinary Shares then outstanding), officer, director and each employee of the
Company listed on Schedule 3 hereto to furnish to the Representatives, prior to
the First Delivery Date, a letter or letters, in a form substantially similar to
that attached as Exhibit 1 hereto or as otherwise agreed with the
Representatives, pursuant to which each such person shall agree, subject to
certain exceptions, not to, directly or indirectly, (1) offer for sale, sell,
contract or
grant any option to sell, pledge, transfer or otherwise dispose of (or enter
into any transaction or device which is designed to, or could reasonably be
expected to, result in the disposition by any person at any time in the future
of) any Ordinary Shares or securities convertible into or exchangeable for
Ordinary Shares or (2) enter into any swap or other derivatives transaction that
transfers to another, in whole or in part, any of the economic benefits or risks
of ownership of such Ordinary Shares, whether any such transaction described in
clause (1) or (2) above is to be settled by delivery of Ordinary Shares or other
securities, in cash or otherwise, in each case for a period of 90 days from the
date of the Prospectus, without the prior written consent of Xxxxxx Brothers
Inc. and Bear, Xxxxxxx & Co. Inc. on behalf of the Underwriters;
(j) To apply the net proceeds from the sale of the Shares as set forth
in the Prospectus;
(k) Subject to compliance by the Underwriters with the final paragraph
of Section 4 of this Agreement, to the extent that, and for as long as, the laws
of Israel require any permit for approval by, or exemption by the ISA of the
transaction contemplated hereby to be legally permitted and to remain effective,
the Company will obtain and maintain each such permit, approval or exemption
valid and in full force and effect;
(l) In any suit in a court of competent jurisdiction (whether in the
United States or any other jurisdiction) seeking enforcement of this Agreement
or provisions of this Agreement, (i) if the plaintiffs therein seek a judgment
in United States dollars, the Company will not interpose any defense or
objection to or otherwise oppose judgment, if any, being awarded in such
currency, and (ii) if the plaintiffs therein seek to have any judgment (or any
aspect thereof) awarded in foreign currency linked, for the period from entry of
such judgment until actual payment thereof in full has been made, to the changes
in the foreign currency-United Sates dollar exchange rate, the Company will no
interpose any defense or objection to or otherwise oppose inclusion of such
linkage in any such judgment (except to comply with any applicable law); and the
Company agrees that it will not initiate or seek to initiate any action, suit or
proceeding, in Israel or in any other jurisdiction other than the United States,
seeking damages or for the purpose of obtaining any injunction or declaratory
judgment against the enforcement of, or a declaratory judgment concerning any
alleged breach by the Company of or other claim by you in respect of, this
Agreement or any of your rights under this Agreement, including without
limitation any action, suit or proceeding challenging the enforceability of or
seeking to invalidate in any respect the submission by the Company hereunder to
the jurisdiction of federal or New York state courts or the designation of the
laws of the State of New York as the law applicable to this Agreement;
(m) If any payment of any sum due under this Agreement from the Company
is made to or received by the Underwriters or any controlling person of any
Underwriter in a currency other than freely transferable United States dollars,
whether by judicial judgment or otherwise, the obligations of the Company under
this Agreement shall be discharged only to the extent of the net amount of
freely transferable United States dollars that the Underwriters or such
controlling persons, as the case may be, in accordance with normal bank
procedures, are able to lawfully purchase with such amount of such other
currency; and to the extent that the Underwriters or such controlling persons
are not able to purchase sufficient United States dollars with such amount of
such other currency to discharge the obligations of the Company to the
Underwriters of such controlling persons, as the case may be, the Company shall
not be discharged with respect to such difference, and any such undischarged
amount will be due as a separate obligation and shall not be affected by payment
of or judgment being obtained for any other sums due under or in respect of this
Agreement; and
(n) To take such steps as shall be necessary to ensure that the Company
shall not become an "investment company" as defined in the Investment Company
Act of 1940, as amended.
SECTION 7. FURTHER AGREEMENTS OF THE SELLING SHAREHOLDERS. Each of the
Selling Shareholders severally and not jointly agrees:
(a) To furnish the Representatives a letter in a form substantially
similar to that attached as Exhibit 1 hereto or as otherwise agreed with the
Representatives, pursuant to which the Selling Shareholder shall agree, subject
to certain exceptions, not to, directly or indirectly, (1) offer for sale, sell,
contract or grant any option to sell, pledge, transfer or otherwise dispose of
any Ordinary Shares or securities convertible into or exchangeable for Ordinary
Shares or (2) enter into any swap or other derivatives transaction that
transfers to another, in whole or in part, any of the economic benefits or risks
of ownership of such Ordinary Shares, whether any such transaction described in
clause (1) or (2) above is to be settled by delivery of Ordinary Shares or other
securities, in cash or otherwise, in each case for a period of 90 days from the
date of the Prospectus, without the prior written consent of Xxxxxx Brothers
Inc. and Bear, Xxxxxxx & Co. Inc. on behalf of the Underwriters.
(b) That the Shares to be sold by the Selling Shareholder hereunder,
which are represented by the certificates held in custody for the Selling
Shareholder, are subject to the interest of the Underwriters, that the
arrangements made by the Selling Shareholder for such custody are to that extent
irrevocable, and that the obligations of the Selling Shareholder hereunder shall
not be terminated by any act of the Selling Shareholder.
(c) To deliver to the Representatives prior to the First Delivery Date
a properly completed and executed United States Treasury Department Form W-8 (if
the Selling Shareholder is a non-United States person) or Form W-9 (if the
Selling Shareholder is a United States person).
SECTION 8. EXPENSES. The Company agrees to pay (a) the costs incident
to the authorization, issuance, sale and delivery of the Shares and any
transfer, stamp, documentary or similar taxes payable in that connection; (b)
the costs incident to the preparation, printing and filing under the Securities
Act of the Registration Statement and any amendments and exhibits thereto; (c)
the costs of distributing the Registration Statement as originally filed and
each amendment thereto and any post-effective amendments thereof (including, in
each case, exhibits), any Preliminary Prospectus, the Prospectus and any
amendment or supplement to the Prospectus, all as provided in this Agreement;
(d) the costs of producing and distributing this Agreement, the Agreement Among
Underwriters and any Master Dealers Agreement and any other related documents in
connection with the offering, purchase, sale and delivery of the Shares; (e) the
filing fee incident to securing the required review by the National Association
of Securities Dealers, Inc. of the terms of sale of the Shares and the related
fees and expenses of counsel to the Underwriters (which fees and expenses shall
not exceed $12,500); (f) any applicable listing, registration or other fees; (g)
the fees and expenses of qualifying the Shares under the securities laws of the
several jurisdictions as provided in Section 6(h) and of preparing, printing and
distributing a Blue Sky Memorandum (including related fees and expenses of
counsel to the Underwriters, which fees and expenses shall not exceed $7,500);
(h) the costs and expenses of the Company relating to investor presentations on
any "road show" undertaken in connection with the marketing of the offering of
the Shares, 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 officers of
the Company and any such consultants, and the cost of any aircraft chartered in
connection with the road show (which amounts, for purposes of clarification,
shall not include advertising, mailing, telephone, road show, travel or other
costs incurred by the Representatives or their sales personnel in connection
with the marketing of the Offering); and (i) all other costs and expenses
incident to the performance of the obligations of the Company under this
Agreement; provided that, except as provided in this Section 8 and in Section 13
the Underwriters shall pay their own costs and expenses, including the costs and
expenses of their counsel, any transfer taxes on the Shares which they may sell
(except, for purposes of clarification, the Israeli stamp tax applicable to the
issuance of the Shares, which stamp tax will be paid by the Company promptly
after each Delivery Date in accordance with Israeli law) and the expenses of
advertising any offering of the Shares made by the Underwriters.
Each of the Selling Shareholders severally agrees with each Underwriter
to pay (directly or by reimbursement to the Company) all fees and expenses
incident to the performance of its obligations under this Agreement that are not
otherwise specifically provided herein, including but not limited to (i) fees
and expenses of counsel and advisors to the Selling Shareholder and (ii)
expenses and taxes incident to the sale and delivery of the Shares to be sold by
the Selling Shareholder to the Underwriters hereunder. This paragraph shall not
affect or modify any separate, valid agreement relating to the allocation of
payment of expenses between the Company, on the one hand, and any Selling
Shareholder, on the other hand.
SECTION 9. CONDITIONS OF UNDERWRITERS' OBLIGATIONS. The respective
obligations of the Underwriters hereunder are subject to the accuracy, when made
and on each Delivery Date, of the representations and warranties of the Company
and the Selling Shareholders contained herein, to the performance by the Company
and the Selling Shareholders of their respective obligations hereunder, and to
each of the following additional terms and conditions:
(a) The Prospectus shall have been timely filed with the Commission in
accordance with Section 6(a); the Registration Statement shall have been
declared effective by the Commission; no stop order suspending the effectiveness
of the Registration Statement or any part thereof shall have been issued and no
proceeding for that purpose shall have been initiated or threatened by the
Commission; and any request of the Commission for inclusion of additional
information in the Registration Statement or the Prospectus or otherwise shall
have been complied with.
(b) No Underwriter shall have discovered and disclosed to the Company
on or prior to such Delivery Date that the Registration Statement or the
Prospectus or any amendment or supplement thereto contains an untrue statement
of a fact which, in the reasonable opinion of Xxxxxxx Xxxx LLP, counsel for the
Underwriters, is material or omits to state a fact which in the reasonable
opinion of such counsel, is material and is required to be stated therein or is
necessary to make the statements therein, in light of the circumstances under
which such statements were made, not misleading.
(c) All corporate proceedings and other legal matters incident to the
authorization, form and validity of this Agreement, the Shares, the Registration
Statement and the Prospectus, and all other legal matters relating to this
Agreement and the transactions contemplated hereby shall be reasonably
satisfactory in all material respects to counsel for the Underwriters, and the
Company and each of the Selling Shareholders shall have furnished to such
counsel all documents and information that they may reasonably request to enable
them to pass upon such matters.
(d) Zellermayer, Pelossof & Co. shall have furnished to the
Representatives its written opinion, as Israeli counsel to the Company,
addressed to the Underwriters and dated such Delivery Date, substantially in the
form attached hereto as Exhibit 2.
(e) White & Case LLP shall have furnished to the Representatives its
written opinion, as U.S. counsel to the Company, addressed to the Underwriters
and dated such Delivery Date, substantially in the form attached hereto as
Exhibit 3.
(f) Eitan, Pearl, Xxxxxx & Xxxxx-Xxxxx shall have furnished to the
Representatives its written opinion, as intellectual property counsel to the
Company, addressed to the Underwriters and dated such Delivery Date,
substantially in the form attached hereto as Exhibit 4.
(g) Xxxxx & Xxxxxxx L.L.P. shall have furnished to the Representatives
its written opinion, as regulatory counsel to the Company, addressed to the
Underwriters and dated such Delivery Date, substantially in the form attached
hereto as Exhibit 5.
(h) Each of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC and
Zellermayer, Pelossof & Co. shall have furnished to the Representatives its
written opinion, as counsel to Thermo Electron Corporation and RDC Xxxxxx
Development Corporation, respectively, addressed to the Underwriters and dated
such Delivery Date, substantially in the form attached hereto as Exhibit 6 and
7, respectively.
(i) Counsel to each Selling Shareholder (other than Thermo Electron
Corporation and RDC Xxxxxx Development Corporation) shall have furnished to the
Representatives its written opinion, as counsel to such Selling Shareholder,
addressed to the Underwriters and dated such Delivery Date, as to the accuracy
of each of the statements set forth in Exhibit 8 hereto.
(j) The Representatives shall have received from Xxxxxxx Xxxx LLP and
Meitar, Liquornik, Geva & Co., counsel for the Underwriters, such opinion or
opinions, dated such Delivery Date, with respect to the issuance and sale of the
Shares, the Registration Statement, the Prospectus and other related matters as
the Representatives may reasonably require, and the Company shall have furnished
to such counsel such documents as they reasonably request for the purpose of
enabling them to pass upon such matters, provided that such counsel has given
reasonable notice of such request for documents in light of the nature and
source of the documents.
(k) At the time of execution of this Agreement, the Representatives
shall have received from KPMG Somekh Xxxxxxx, a member of KPMG International, a
letter, in form and substance reasonably satisfactory to the Representatives,
addressed to the Underwriters and dated the date hereof (i) confirming that they
are independent public accountants within the meaning of the Securities Act and
are in compliance with the applicable requirements relating to the qualification
of accountants under Rule 2-01 of Regulation S-X of the Commission and (ii)
stating, as of the date hereof (or, with respect to matters involving changes or
developments since the respective dates as of which specified financial
information is given in the Prospectus, as of a date not more than five days
prior to the date hereof), the conclusions and findings of such firm with
respect to the financial information and other matters ordinarily covered by
accountants "comfort letters" to underwriters in connection with registered
public offerings.
(l) With respect to the letter of KPMG Somekh Xxxxxxx referred to in
the preceding paragraph and delivered to the Representatives concurrently with
the execution of this Agreement (the "INITIAL LETTERS"), the Company shall have
furnished to the Representatives a letter (the "BRING-DOWN LETTER") of such
accountants, addressed to the Underwriters and dated such Delivery Date (i)
confirming that they are independent public accountants within the meaning of
the Securities Act and are in compliance with the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X
of the Commission, (ii) stating, as of the date of the bring-down letter (or,
with respect to matters involving changes or developments since the respective
dates as of which specified financial information is given in the Prospectus, as
of a date not more than five days prior to the date of the bring-down letter),
the conclusions and findings of such firm with respect to the financial
information and other matters covered by the initial letter and (iii) confirming
in all material respects the conclusions and findings set forth in the initial
letter.
(m) The Company shall have furnished to the Representatives a
certificate, dated such Delivery Date, of its Chief Executive Officer and its
Chief Financial Officer stating that:
(i) The representations, warranties and agreements of the
Company in Section 1 (A) if qualified in Section 1 as to materiality or
material adverse effect, are true and correct and (B) in all other
cases, are true and correct in all material respects, in both cases as
of such Delivery Date; the Company has complied in all material
respects with all its agreements contained herein; and the conditions
set forth in Sections 6(a) and 6(n) have been fulfilled; and
(ii) They have carefully examined the Registration
Statement and the Prospectus and, to their knowledge (A) as of the
Effective
Date, the Registration Statement and Prospectus did not include any
untrue statement of a material fact and did not omit to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading, and (B) since the Effective Date no
event has occurred which should have been set forth in a supplement or
amendment to the Registration Statement or the Prospectus.
(n) On each Delivery Date, each Selling Shareholder selling Shares on
such Delivery Date shall have furnished to the Representatives a certificate,
dated such Delivery Date, stating that:
(i) The representations, warranties and agreements of the
Selling Shareholder in Section 2 (A) if qualified in Section 2 as to
materiality or material adverse effect, are true and correct and (B) in
all other cases, are true and correct in all material respects, in both
cases as of such Delivery Date; and
(ii) The Selling Shareholder has complied in all material
respects with all the agreements and satisfied all the conditions on
its part to be performed or satisfied at or prior to such Delivery
Date.
(o) (i) Neither the Company nor any of its subsidiaries shall have
sustained since the date of the latest audited financial statements included in
the Prospectus any loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, otherwise than as set
forth or contemplated in the Prospectus and (ii) since such date there shall not
have been any change in the capital stock of the Company or any of its
subsidiaries (other than subsequent issuances, if any, pursuant to the Company's
employee benefit plans, qualified stock option plans or other employee
compensation plans described in the Prospectus or upon exercise of outstanding
options, rights or warrants described in the Prospectus or pursuant to the share
recapitalization to be effected prior to the Delivery Date as described in the
Prospectus) or long-term debt of the Company and its subsidiaries (other than as
set forth in the consolidated financial statements filed as part of the
Registration Statement) or any change, or any development involving a
prospective change, in or affecting the general affairs, management, financial
position, stockholders' equity or results of operations of the Company and its
subsidiaries, otherwise than as set forth or contemplated in the Prospectus, the
effect of which, in any such case described in clause (i) or (ii), is, in the
reasonable judgment of a majority in interest of the Representatives, so
material and adverse as to make it impracticable or inadvisable to proceed with
the public offering or the
delivery of the Shares being delivered on such Delivery Date on the terms and in
the manner contemplated in the Prospectus.
(p) Subsequent to the execution and delivery of this Agreement there
shall not have occurred any of the following: (i) trading in securities
generally on the New York Stock Exchange or the Nasdaq National Market or in the
over-the-counter market, or trading in any securities of the Company on any
exchange or in the over-the-counter market, shall have been suspended or the
settlement of such trading generally shall have been materially disrupted or
minimum prices shall have been established on any such exchange or such market
by the Commission, by such exchange or by any other regulatory body or
governmental authority having jurisdiction, (ii) a banking moratorium shall have
been declared by Federal or state authorities of the United States or by Israeli
authorities, (iii) the United States shall have become engaged in hostilities,
there shall have been a significant escalation in hostilities involving the
United States or Israel or there shall have been a declaration of a national
emergency or war by the United States or Israel or (iv) there shall have
occurred such a material adverse change in general domestic or international
economic, political or financial conditions, including without limitation as a
result of terrorist activities after the date hereof, or the effect of
international conditions on the financial markets in the United States or Israel
shall be such, as to make it in the case of (iii) or (iv), in the reasonable
judgment of a majority in interest of the Representatives, impracticable or
inadvisable to proceed with the public offering or delivery of the Shares being
delivered on such Delivery Date on the terms and in the manner contemplated in
the Prospectus.
(q) The Nasdaq Stock Market Inc. shall have approved the Shares for
listing on the Nasdaq National Market, subject only to official notice of
issuance.
All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Underwriters. In the event that any of the terms or
conditions set forth above in this Section 9 is not satisfied as a result of the
failure of one or more Selling Shareholders (each a "DEFAULTING SHAREHOLDER") to
deliver or cause to be delivered any item required to be delivered by or on
behalf of such Defaulting Shareholder on or prior to any applicable Delivery
Date, the Underwriters may, at the discretion of the Representatives, elect (i)
to consummate the transactions to be effected on such Delivery Date in their
entirety, (ii) to consummate the transactions to be effected on such Delivery
Date, other than the purchase of Shares from one or more Defaulting
Shareholders, or (iii) not to consummate the transactions to be effected on such
Delivery Date; provided, however, that any election by the Underwriters pursuant
to this sentence shall not in any way limit the liability that any Defaulting
Shareholder may
have to any Underwriter, to the Company, to any other Selling Shareholder, or to
any officer, director, employee or controlling person of any of the foregoing
persons or entities.
SECTION 10. INDEMNIFICATION AND CONTRIBUTION.
(a) The Company and each Selling Shareholder, jointly and severally,
shall indemnify and hold harmless each Underwriter, its officers, directors and
employees and each person, if any, who controls any Underwriter within the
meaning of the Securities Act, from and against any loss, claim, damage or
liability, joint or several, or any action in respect thereof (including, but
not limited to, any loss, claim, damage, liability or action relating to
purchases and sales of Shares), to which that Underwriter, or its officers,
directors, employees or controlling persons may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage, liability or
action arises out of, or is based upon, (i) any untrue statement or alleged
untrue statement of a material fact contained in (A) any Preliminary Prospectus,
the Registration Statement or the Prospectus or in any amendment or supplement
thereto, or (B) any materials or information provided to investors by, or with
the approval of, the Company in connection with the marketing of the offering of
the Shares ("MARKETING MATERIALS"), including any roadshow or investor
presentations made to investors by the Company (whether in person or
electronically), (ii) the omission or alleged omission to state in any
Preliminary Prospectus, the Registration Statement or the Prospectus, or in any
amendment or supplement thereto, or in any Marketing Materials, any material
fact required to be stated therein or necessary to make the statements therein
not misleading or (iii) any act or failure to act or any alleged act or failure
to act by any Underwriter in connection with, or relating in any manner to, the
Shares or the offering contemplated hereby, and which is included as part of or
referred to in any loss, claim, damage, liability or action arising out of or
based upon matters covered by clause (i) or (ii) above (provided that neither
the Company nor the Selling Shareholders shall be liable under this clause (iii)
to the extent that it is determined in a final judgment by a court of competent
jurisdiction that such loss, claim, damage, liability or action resulted
directly from any such acts or failures to act undertaken or omitted to be taken
by such Underwriter through its bad faith, gross negligence or willful
misconduct), and shall reimburse, jointly and severally, each Underwriter and
each of its officers, directors, employees and controlling persons promptly upon
demand for any legal or other expenses reasonably incurred by that Underwriter,
officer, director, employee or controlling person in connection with
investigating or defending or preparing to defend against any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however,
that (i) neither the Company nor the Selling Shareholders shall be liable in any
such case to the extent that any such loss, claim, damage, liability or action
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 such Underwriter furnished to the
Company through the Representatives by or on behalf of any Underwriter
specifically for inclusion therein, which information consists solely of the
information specified in Section 10(g), and (ii) with respect to any untrue
statement or omission of material fact made in any Preliminary Prospectus, the
indemnity agreement contained in this section shall not inure to the benefit of
any Underwriter from whom the person asserting any such loss, claim, damage,
liability or action purchased the securities concerned, to the extent that any
such loss, claim, damage, liability or action of such Underwriter occurs under
the circumstance where it shall have been determined by a court of competent
jurisdiction that (w) the Company had furnished copies of the Prospectus, as
amended or supplemented, to the Representatives prior to the time at which
written confirmation of the sale of such securities was delivered by the
Underwriter, (x) delivery of the Prospectus, as amended or supplemented, was
required by the Securities Act to be made to such person at such time, (y) the
untrue statement or omission of a material fact contained in the Preliminary
Prospectus was corrected in the Prospectus as amended or supplemented, and (z)
there was not sent or given to such person, at or prior to the written
confirmation of the sale of such securities to such person, a copy of the
Prospectus as amended or supplemented. The foregoing indemnity agreement is in
addition to any liability which the Company or any Selling Shareholder may
otherwise have to any Underwriter or to any officer, director, employee or
controlling person of that Underwriter.
(b) Each Underwriter, severally and not jointly, shall indemnify and
hold harmless the Company, each Selling Shareholder, and their respective
officers, directors and employees, and each person, if any, who controls the
Company or Selling Shareholder within the meaning of the Securities Act, from
and against any loss, claim, damage or liability, joint or several, or any
action in respect thereof, to which the Company, any Selling Shareholder, or any
of their respective officers, directors, employees or controlling persons may
become subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is 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, the 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, but in each case only to the extent that the untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information concerning such Underwriter
furnished to the Company through the Representatives by or on behalf of that
Underwriter
specifically for inclusion therein (which information consists solely of the
information specified in Section 10(g)), and shall reimburse the Company, each
such Selling Shareholder, and any such officer, director, employee or
controlling person for any legal or other expenses reasonably incurred by the
Company, such Selling Shareholder, or any such officer, director, employee or
controlling person in connection with investigating or defending or preparing to
defend against any such loss, claim, damage, liability or action as such
expenses are incurred. The foregoing indemnity agreement is in addition to any
liability which any Underwriter may otherwise have to the Company, the Selling
Shareholders, or any such director, officer, employee or controlling person.
(c) Each Selling Shareholder, severally and not jointly, shall
indemnify and hold harmless the Company, its officers, directors and employees
and each person, if any, who controls the Company within the meaning of the
Securities Act, from and against any loss, claim, damage or liability, joint or
several, or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability or action relating to purchases and sales of
Shares), to which the Company or its officers, directors, employees or
controlling persons may become subject, under the Securities Act or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is
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, the 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, but in each case only to the extent that the untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information concerning such
Selling Shareholder furnished to the Company by or on behalf of that Selling
Shareholder specifically for inclusion therein, which information consists
solely of the information specified in Section 10(f), and shall reimburse,
jointly and severally, the Company and its officers, directors and employees and
controlling persons promptly upon demand for any legal or other expenses
reasonably incurred by the Company and its officers, directors, employees or
controlling persons in connection with investigating or defending or preparing
to defend against any such loss, claim, damage, liability or action as such
expenses are incurred; provided, however, that each Selling Shareholder shall
not be liable in any such case to the extent that any such loss, claim, damage,
liability or action 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 furnished to the Company through the Representatives by or on behalf
of any Underwriter specifically
for inclusion therein, which information consists solely of the information
specified in Section 10(g). The foregoing indemnity agreement is in addition to
any liability which the Selling Shareholder may otherwise have to the Company
and its officers, directors and employees and each person, if any, who controls
the Company.
(d) Promptly after receipt by an indemnified party under this Section
10 of notice of any claim or the commencement of any action, the indemnified
party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 10, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 10 except to the extent it has
been materially prejudiced by such failure and, provided further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 10.
If any such claim or action shall be brought against an indemnified party, and
it shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice from
the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 10 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that
the Representatives shall have the right to employ counsel to represent jointly
the Representatives and those other Underwriters and their respective officers,
directors, employees and controlling persons who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the
Underwriters against the Company or any Selling Shareholder under this Section
10 if, in the reasonable judgment of the Representatives, it is advisable for
the Representatives and those Underwriters, officers, directors, employees and
controlling persons to be jointly represented by separate counsel, and in that
event the fees and expenses of such separate counsel shall be paid by the
Company and the Selling Shareholders. No indemnifying party shall (i) without
the prior written consent of the indemnified parties (which consent shall not be
unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with the consent of
the indemnifying
party or if there be a final judgment of the plaintiff in any such action, the
indemnifying party agrees to indemnify and hold harmless any indemnified party
from and against any loss or liability by reason of such settlement or judgment.
(e) If the indemnification provided for in this Section 10 shall for
any reason be unavailable to or insufficient to hold harmless an indemnified
party under Section 10(a), 10(b) or 10(c) in respect of any loss, claim, damage
or liability, or any action in respect thereof, referred to therein, then each
indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits
received by the Company and each Selling Shareholder, severally, on the one hand
and the Underwriters on the other from the offering of the Shares or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company and
each Selling Shareholder, severally, on the one hand and the Underwriters on the
other with respect to the statements or omissions which resulted in such loss,
claim, damage or liability, or action in respect thereof, as well as any other
relevant equitable considerations. The relative benefits received by the Company
and each Selling Shareholder on the one hand and the Underwriters on the other
with respect to such offering shall be deemed to be in the same proportion as
the total net proceeds from the offering of the Shares purchased under this
Agreement (before deducting expenses) received by the Company and each Selling
Shareholder, respectively, on the one hand, and the total underwriting discounts
and commissions received by the Underwriters with respect to the Shares
purchased under this Agreement, on the other hand, bear to the total gross
proceeds from the offering of the Shares under this Agreement, in each case as
set forth in the table on the cover page of the Prospectus. The relative fault
of the Company and each Selling Shareholder on the one hand and the Underwriters
on the other shall be determined by reference to whether the untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company, a Selling
Shareholder or the Underwriters, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company, each Selling Shareholder and the
Underwriters agree that it would not be just and equitable if contributions
pursuant to this Section 10 were to be determined by pro rata allocation (even
if the Underwriters were treated as one entity for such purpose) or by any other
method of allocation which does not take into account the equitable
considerations referred to herein. The amount paid or payable by an indemnified
party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section 10 shall be deemed to include, for
purposes of this Section 10(e), any legal or other expenses reasonably incurred
by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 10(e), no Underwriter
shall be required to contribute any amount in excess of the amount by which the
total price at which the Shares underwritten by it and distributed to the public
was offered to the public exceeds the amount of any damages which such
Underwriter has otherwise paid or become liable to pay by reason of any untrue
or alleged untrue statement or omission or alleged omission and no Selling
Shareholder shall be required to contribute an amount in excess of the total net
proceeds from the offering of the Shares received by each Selling Shareholder.
No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Underwriters'
obligations to contribute as provided in this Section 10(e) are several in
proportion to their respective underwriting obligations and not joint.
(f) Each Selling Shareholder severally confirms and the Company
acknowledges that the name, address and share ownership of such Selling
Shareholder and other information with respect to such Selling Shareholder set
forth under the caption "Principal and Selling Shareholders" and the information
contained in the representations and warranties given by such Selling
Shareholder in this Agreement and the Custody Agreement constitute the only
information concerning such Selling Shareholder furnished in writing to the
Company by or on behalf of each Selling Shareholder.
(g) The Underwriters severally confirm and the Company and the Selling
Shareholders acknowledge that the statements with respect to the public offering
of the Shares by the Underwriters set forth in the third paragraph under the
table on the cover page of the Prospectus related to the expected delivery date
for the Shares, in the statements set forth in the table in the first paragraph
under the subcaption "-General," in the third paragraph and in the last sentence
of the fourth paragraph under that subcaption, in the second paragraph under the
subcaption "-Commissions and Expenses," in the first two paragraphs under the
subcaption "-Stabilization, Short Positions, Penalty Bids and Passive Market
Making," and under the subcaption "Underwriter's Stock Ownership" in each case
under the caption "Underwriting" in the Prospectus are correct and constitute
the only information concerning such Underwriters furnished in writing to the
Company by or on behalf of the Underwriters specifically for inclusion in the
Registration Statement and the Prospectus.
(h) The liability of each Selling Shareholder pursuant to Section
10(a), Section 10(c) and Section 10(e) and, with respect to each Selling
Shareholder, for any breach of representation contained in Section 2(e) or
2(f), shall
not exceed the total net proceeds from the offering of the Shares received by
such Selling Shareholder; provided that such limitation shall not apply in the
event of a commission of fraud hereunder on the part of such Selling
Shareholder.
SECTION 11. DEFAULTING UNDERWRITERS.
If, on either Delivery Date, any Underwriter defaults in the
performance of its obligations under this Agreement, the remaining
non-defaulting Underwriters shall be obligated to purchase the Shares which the
defaulting Underwriter agreed but failed to purchase on such Delivery Date in
the respective proportions which the number of Firm Shares set opposite the name
of each remaining non-defaulting Underwriter in Schedule 1 hereto bears to the
total number of Firm Shares set opposite the names of all the remaining
non-defaulting Underwriters in Schedule 1 hereto; provided, however, that the
remaining non-defaulting Underwriters shall not be obligated to purchase any of
the Shares on such Delivery Date if the total number of Shares which the
defaulting Underwriter or Underwriters agreed but failed to purchase on such
date exceeds 9.09% of the total number of Shares to be purchased on such
Delivery Date, and any remaining non-defaulting Underwriter shall not be
obligated to purchase more than 110% of the number of Shares which it agreed to
purchase on such Delivery Date pursuant to the terms of Section 4. If the
foregoing maximums are exceeded, the remaining non-defaulting Underwriters, or
those other underwriters satisfactory to the Representatives who so agree, shall
have the right, but shall not be obligated, to purchase, in such proportion as
may be agreed upon among them, all the Shares to be purchased on such Delivery
Date. If the remaining Underwriters or other underwriters satisfactory to the
Representatives do not elect to purchase the Shares which the defaulting
Underwriter or Underwriters agreed but failed to purchase on such Delivery Date,
this Agreement (or, with respect to the Second Delivery Date, the obligation of
the Underwriters to purchase, and of those Selling Shareholders listed in
Schedule 2 hereto as selling Option Shares to sell, the Option Shares) shall
terminate without liability on the part of any non-defaulting Underwriter, the
Company or any Selling Shareholder, except that the Company and Selling
Shareholders will continue to be liable for the payment of expenses to the
extent set forth in Sections 8 and 13. As used in this Agreement, the term
"UNDERWRITER" includes, for all purposes of this Agreement unless the context
requires otherwise, any party not listed in Schedule 1 hereto who, pursuant to
this Section 11, purchases Shares which a defaulting Underwriter agreed but
failed to purchase.
Nothing contained herein shall relieve a defaulting Underwriter of any
liability it may have to the Company or any Selling Shareholder for damages
caused by its default. If other Underwriters are obligated or agree to purchase
the Shares of a defaulting or withdrawing Underwriter, either the
Representatives or the Company
may postpone the Delivery Date for up to seven full business days in order to
effect any changes that in the opinion of counsel for the Company or counsel for
the Underwriters may be necessary in the Registration Statement, the Prospectus
or in any other document or arrangement.
SECTION 12. TERMINATION. The obligations of the Underwriters hereunder
may be terminated by the Representatives by notice given to and received by the
Company and the Selling Shareholders prior to delivery of and payment for the
Firm Shares if, prior to that time, any of the events described in Sections 9(n)
or 9(o) shall have occurred or if the Underwriters shall decline to purchase the
Shares for any reason permitted under this Agreement.
SECTION 13. REIMBURSEMENT OF UNDERWRITERS' EXPENSES. If the Company or
any Selling Shareholder shall fail to tender the Shares for delivery to the
Underwriters by reason of any failure, refusal or inability on the part of the
Company or such Selling Shareholder to perform any agreement on its part to be
performed, or because any other condition of the Underwriters' obligations
hereunder required to be fulfilled by the Company or such Selling Shareholder is
not fulfilled, the Company and such defaulting Selling Shareholder shall
reimburse the Underwriters for all reasonable out-of-pocket expenses (including
fees and disbursements of counsel) incurred by the Underwriters in connection
with this Agreement and the proposed purchase of the Shares, and upon demand the
Company and, in the case of a defaulting Selling Shareholder, such defaulting
Selling Shareholder, shall pay the full amount thereof to the Representatives.
If this Agreement is terminated pursuant to Section 9 by reason of the default
of one or more Underwriters, neither the Company nor the Selling Shareholders
shall be obligated to reimburse any defaulting Underwriter on account of those
expenses.
SECTION 14. NOTICES, ETC. All statements, requests, notices and
agreements hereunder shall be in writing, and:
(a) if to the Underwriters, shall be delivered or sent by mail, telex
or facsimile transmission to Xxxxxx Brothers Inc., 000 Xxxxxx Xxxxxx, Xxxxxx
Xxxx, XX 00000, Attention: Syndicate Department (Fax: 000-000-0000), with a
copy, in the case of any notice pursuant to Section 8(c), to the Director of
Litigation, Office of the General Counsel, Xxxxxx Brothers Inc., 000 Xxxxxx
Xxxxxx, Xxxxxx Xxxx, XX 00000; provided, however, that any notice to an
Underwriter pursuant to Section 8(c) shall be delivered or sent by mail, telex
or facsimile transmission to such Underwriter at its address set forth in its
acceptance telex to the Representatives, which address will be supplied to any
other party hereto by the Representatives upon request.
(b) if to the Company, shall be delivered or sent by mail, telex or
facsimile transmission to the address of the Company set forth in the
Registration Statement, Attention: Xxx Xxx Xxxxx (Fax: 000-0-000-0000).
(c) if to any Selling Shareholder, shall be delivered or sent by mail,
telex or facsimile transmission to the address of such Shareholder set forth on
Schedule 2 hereto.
Any such statements, requests, notices or agreements shall take effect at the
time of receipt thereof. The Company and the Selling Shareholders shall be
entitled to act and rely upon any request, consent, notice or agreement given or
made on behalf of the Underwriters by Xxxxxx Brothers Inc. on behalf of the
Representatives; and the Underwriters and the Company shall be entitled to act
and rely upon any request, consent, notice or agreement given or made on behalf
of any Selling Shareholder by any or all of the attorneys-in-fact for such
Selling Shareholder.
SECTION 15. PERSONS ENTITLED TO BENEFIT OF AGREEMENT. This Agreement
shall inure to the benefit of and be binding upon the Underwriters, the Company,
the Selling Shareholders and their respective successors. This Agreement and the
terms and provisions hereof are for the sole benefit of only those persons,
except that (A) the representations, warranties, indemnities and agreements of
the Company and the representations, warranties, indemnities and agreements of
the Selling Shareholders contained in this Agreement shall also be deemed to be
for the benefit of the person or persons, if any, who control any Underwriter
within the meaning of Section 15 of the Securities Act and (B) the indemnity
agreement of the Underwriters contained in Section 8(b) of this Agreement shall
be deemed to be for the benefit of directors of the Company, officers of the
Company who have signed the Registration Statement, the Selling Shareholders and
any person controlling the Company or a Selling Shareholder within the meaning
of Section 15 of the Securities Act. Nothing in this Agreement is intended or
shall be construed to give any person, other than the persons referred to in
this Section 13, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein.
SECTION 16. SURVIVAL. The respective indemnities, representations,
warranties and agreements of the Company, the Selling Shareholders and the
Underwriters contained in this Agreement or made by or on behalf on them,
respectively, pursuant to this Agreement, shall survive the delivery of and
payment for the Shares and shall remain in full force and effect, regardless of
any investigation made by or on behalf of any of them or any person controlling
any of them.
SECTION 17. DEFINITION OF THE TERMS "BUSINESS DAY" AND "SUBSIDIARY."
For purposes of this Agreement, (a) "BUSINESS DAY" means each Monday, Tuesday,
Wednesday, Thursday or Friday which is not a day on which banking institutions
in New York are generally authorized or obligated by law or executive order to
close and (b) "SUBSIDIARY" has the meaning set forth in Rule 405 of the Rules
and Regulations.
SECTION 18. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of New York (without giving
effect to conflict of laws provisions thereof).
SECTION 19. CONSENT TO JURISDICTION. Each party irrevocably agrees that
any legal suit, action or proceeding arising out of or based upon this Agreement
or the transactions contemplated hereby ("RELATED PROCEEDINGS") may be
instituted in the federal courts of the United States of America located in the
City of New York or the courts of the State of New York in each case located in
the Borough of Manhattan in the City of New York (collectively, the "SPECIFIED
COURTS"), and irrevocably submits to the exclusive jurisdiction (except for
proceedings instituted in regard to the enforcement of a judgment of any such
court (a "RELATED JUDGMENT"), as to which such jurisdiction is non-exclusive) of
such courts in any such suit, action or proceeding. The parties further agree
that service of process, summons, notice or document by mail to such party's
address set forth above shall be effective service of process for any lawsuit,
action or other proceeding brought in any such court. The parties hereby
irrevocably and unconditionally waive any objection to the laying of venue of
any lawsuit, action or other proceeding in the Specified Courts, and hereby
further irrevocably and unconditionally waive and agree not to plead or claim in
any such court that any such lawsuit, action or proceeding brought in any such
court has been brought in an inconvenient forum. Each party not located in the
United States hereby irrevocably appoints Given Imaging, Inc., which currently
maintains an office at Oakbrook Technology Center, 0000 Xxxxxxxx Xxxxxxx, Xx.
000, Xxxxxxxx, Xxxxxxx 00000, Xxxxxx Xxxxxx of America, as its agent to receive
service of process or other legal summons for purposes of any such action or
proceeding that may be instituted in any state or federal court in the City and
State of New York.
SECTION 20. WAIVER OF IMMUNITY. With respect to any Related Proceeding,
each party irrevocably waives, to the fullest extent permitted by applicable
law, all immunity (whether on the basis of sovereignty or otherwise) from
jurisdiction, service of process, attachment (both before or after judgment) and
execution to which it might otherwise be entitled in the Specified Courts, and
with respect to any Related Judgment of any Specified Court, each party waives
any such immunity in the Specified Courts or any other court of competent
jurisdiction, and will not raise or claim or cause to be pleaded any such
immunity at or with respect of any such Related Proceeding or Related Judgment,
including, without limitation, any
immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976,
as amended.
SECTION 21. COUNTERPARTS. This Agreement may be executed in one or more
counterparts and, if executed in more than one counterpart, the executed
counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.
SECTION 22. HEADINGS. The headings herein are inserted for convenience
of reference only and are not intended to be part of, or to affect the meaning
or interpretation of, this Agreement.
If the foregoing correctly sets forth the agreement between the
Company, the Selling Shareholders and the Underwriters, please indicate your
acceptance in the space provided for that purpose below.
Very truly yours,
GIVEN IMAGING LTD.,
Individually and as Custodian for each of the Selling
Shareholders named in Schedule 2 to this Agreement
BY
---------------------------------
Name:
Title:
THERMO ELECTRON CORPORATION
RDC XXXXXX DEVELOPMENT CORPORATION LTD.
[INCLUDE OTHER SELLING SHAREHOLDERS]
BY GIVEN IMAGING LTD.,
As Attorney-in-Fact acting on behalf of each of the Selling
Shareholders named in Schedule 2 to this Agreement
BY
----------------------------
Name:
Title:
Accepted:
XXXXXX BROTHERS INC.
BEAR, XXXXXXX & CO. INC.
XXXXXXXXX XXXXXXXX, INC.
For themselves and as Representatives
of the several Underwriters named
in Schedule 1 hereto
By XXXXXX BROTHERS INC.
By
---------------------------------------
Authorized Representative
SCHEDULE 1
Number of
Underwriters Firm Shares
------------ -----------
Xxxxxx Brothers Inc.
Bear, Xxxxxxx & Co. Inc.
Xxxxxxxxx Xxxxxxxx, Inc.
---------
Total........................................ 6,200,000
SCHEDULE 2
Number of Number of
Selling Shareholder Address Firm Shares Option Shares
------------------- ------- ----------- -------------
RDC Xxxxxx Development Corporation Ltd. X.X. Xxx 00
Xxxxx, Xxxxxx 00000 [ ] [ ]
Discount Investment Corporation The Triangular Tower, 42nd Fl.
3 Azrieli Center [ ] [ ]
Xxx Xxxx, Xxxxxx 00000
Elron Electronic Industries Ltd.
[ ] [ ]
Caduceus Private Investments c/o OrbiMed Associates LLC
000 Xxxxx Xxxxxx, 0xx Xx. [ ] [ ]
Xxx Xxxx, XX 00000
OrbiMed Associates LLC 000 Xxxxx Xxxxxx, 0xx Xx.
Xxx Xxxx, XX 00000 [ ] [ ]
PuSH J. Sh. Holding Ltd.
[ ] [ ]
Thermo Electron Corporation 00 Xxxxx Xxxxxx
Xxxxxxx, XX 00000 [ ] [ ]
Trimaran Investment Trust
[ ] [ ]
Auber Investments Ltd.
[ ] [ ]
Adigar Technologies Ltd.
[ ] [ ]
Xxxxxxx Family Properties Ltd.
[ ] [ ]
Securfin S.A.
[ ] [ ]
Total........................................ 3,200,000 930,000
SCHEDULE 3
Employees Required to Sign Lock-Up Agreements
[to be provided]
EXHIBIT 1
LOCK-UP LETTER AGREEMENT
XXXXXX BROTHERS INC.
BEAR, XXXXXXX & CO. INC.
XXXXXXXXX XXXXXXXX INC.
As Representatives of the
several underwriters
c/x XXXXXX BROTHERS INC.
000 Xxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Dear Sirs:
The undersigned understands that you and certain other firms propose to
enter into an
Underwriting Agreement (the "
Underwriting Agreement") providing
for the purchase by you and such other firms (the "Underwriters") of ordinary
shares (the "Ordinary Shares"), of
Given Imaging Ltd. (the "Company") and that
the Underwriters propose to reoffer the Shares to the public (the "Offering").
In consideration of the execution of the
Underwriting Agreement by the
Underwriters, and for other good and valuable consideration, the undersigned
hereby irrevocably agrees that, without the prior written consent of Xxxxxx
Brothers Inc. and Bear, Xxxxxxx & Co. Inc., on behalf of the Underwriters, the
undersigned will not, directly or indirectly, (1) offer for sale, sell, pledge,
or otherwise dispose of (or enter into any transaction or device that is
designed to, or could be expected to, result in the disposition by any person at
any time in the future of) any Ordinary Shares (including, without limitation,
Ordinary Shares that may be deemed to be beneficially owned by the undersigned
in accordance with the rules and regulations of the Securities and Exchange
Commission and Ordinary Shares that may be issued upon exercise of any option or
warrant) or securities convertible into or exchangeable for Ordinary Shares
(other than the Shares) owned by the undersigned on the date of execution of
this Lock-Up Letter Agreement or on the date of the completion of the Offering,
or (2) enter into any swap or other derivatives transaction that transfers to
another, in whole or in part, any of the economic benefits or risks of ownership
of such Ordinary Shares, whether any such transaction described in clause (1) or
(2) above is to be settled by delivery of Ordinary Shares or other securities,
in cash or otherwise, for a period of 90 days after the date of the final
prospectus relating to the Offering; provided that the foregoing restrictions
shall not apply to any of your Ordinary
Shares that are sold pursuant to the registration statement relating to the
Offering.
In furtherance of the foregoing, the Company and its Transfer Agent,
acting at the direction of the Company, are hereby authorized to decline to make
any transfer of securities if such transfer would constitute a violation or
breach of this Lock-Up Letter Agreement.
It is understood that, if (i) the Company notifies you that it does not
intend to proceed with the Offering, (ii) if the
Underwriting Agreement does not
become effective by April 2, 2002, or (iii) if the
Underwriting Agreement (other
than the provisions thereof which survive termination) shall terminate or be
terminated prior to payment for and delivery of the Ordinary Shares to be sold
by the Company in the Offering, we will be released from our obligations under
this Lock-Up Letter Agreement.
The undersigned understands that the Company and the Underwriters will
rely on this Lock-Up Letter Agreement in proceeding with the Offering.
Whether or not the Offering actually occurs depends on a number of
factors, including market conditions. Any Offering will only be made pursuant to
the
Underwriting Agreement, the terms of which are subject to negotiation
between the Company and the Underwriters.
The undersigned hereby represents and warrants that the undersigned has
full power and authority to enter into this Lock-Up Letter Agreement and that,
upon request, the undersigned will execute any additional documents necessary in
connection with the enforcement hereof. Any obligations of the undersigned shall
be binding upon the heirs, personal representatives, successors and assigns of
the undersigned.
Very truly yours,
IF AN INDIVIDUAL:
-----------------------------------
Name:
IF ON BEHALF OF A CORPORATION,
PARTNERSHIP, LIMITED LIABILITY
COMPANY, TRUST OR OTHER ENTITY:
-----------------------------------
[Name of entity]
2
By:
-------------------------------
Name:
Title:
Dated: _______________
0
XXXXXXX 0
XXXXXXX XX XXXXXXXXXXX, XXXXXXXX & XX.
XXXXXXX COUNSEL TO THE COMPANY
Ladies and Gentlemen,
We have acted as Israel counsel for
Given Imaging Ltd., a
company duly incorporated, organized and validly existing under the laws of the
State of Israel (the "Company"), in connection with the preparation and filing
under the United States Securities Act of 1993, as amended (the "Act"), of a
registration statement on Form F-1 (the "Registration Statement") with the
Securities and Exchange Commission in connection with the offer and sale by the
Company of 3,000,000 Ordinary Shares (the "Company Shares") nominal value NIS
0.05 per share of the Company ("Ordinary Shares") and the offer and sale by
certain shareholders of the Company of an aggregate of 3,200,000 Ordinary Shares
(such Ordinary Shares, together with the Company Shares, the "Shares") (not
including up to an additional 930,000 Ordinary Shares offered by a certain
shareholder of the Company to cover over-allotments). This opinion is furnished
pursuant to the
Underwriting Agreement, dated [___], 2002 between the Company
and yourselves (the "
Underwriting Agreement") Capitalized terms not otherwise
defined herein shall have the meaning ascribed thereto in the
Underwriting
Agreement.
In so acting, and as a basis for the opinions herein set
forth, we have examined original, photocopied, facsimiled copies or
electronically transmitted versions of the Registration Statement, the
Underwriting Agreement, the Company's Memorandum and Articles of Association and
all corporate minutes, records and other documents of the Company provided to us
by the Company which we have deemed as necessary or relevant as a basis for the
opinions hereinafter expressed. In such examination we have assumed the due
authorization, execution and delivery of the Underwriting Agreement and any part
thereof, by all parties thereto other than the Company, due compliance with the
laws of the State of New York and all other relevant laws (other than the laws
of the State of Israel), the genuineness of all signatures (other than those on
behalf of the Company), that each such party has entered into the Underwriting
Agreement in good faith and without notice of any adverse fact, that the
Underwriting Agreement constitutes the legal, valid and binding obligation of
each such party (other than the Company), enforceable against it in accordance
with its terms, and that each such party has and shall have complied with and
punctually performed all its covenants, undertakings and agreements thereunder.
We have further assumed, without any investigation, the legal capacity of
natural persons, the corporate power of legal persons (other than the Company)
and the authority of the individuals acting on their behalf, actual compliance
of all parties with their covenants and agreements and with all relevant laws,
the authenticity of
4
all documents submitted to us as originals, the conformity to original documents
of all documents submitted, facsimiled or electronically transmitted to us as
copies and that such documents as examined by us are true, complete and correct,
are in full force and effect and have not been amended, rescinded, supplemented
or otherwise modified. As to various questions of fact relevant to the opinions
expressed herein, we have relied exclusively upon and assumed the completeness
and accuracy of, without any independent investigation or verification, the
certificates of officers of the Company and RDC Xxxxxx Development Corporation,
public officials and others, including, without limitations, the documents
delivered on the date hereof pursuant to the Underwriting Agreement, and the
representations, warranties and other statements of fact contained therein,
assuming, that there are no other records or facts that may be relevant to our
opinions. With your permission, all other assumptions and statements of reliance
as indicated herein have been made without any independent investigation or
verification on our part except to the extent otherwise expressly stated in this
opinion, and we express no opinion with respect to the subject matter or
accuracy of such assumptions or items relied upon.
We do not opine as to the laws of all jurisdictions other than
the State of Israel as the same are in force on the date hereof, such opinions
being based on current law, therefore there can be no assurance that the views
expressed in such opinions will be accepted by the relevant administrative or
judicial authorities. Further excluded from our opinion are any matters relating
to intellectual property laws, and regulatory requirements for the sale or use
of any products of the Company. We do not express any opinion herein concerning
any legal conclusions derived from any law, as set forth in the two preceding
sentences, as to which we otherwise do not express any opinion herein. Our
opinion shall be governed by and construed in accordance with the internal laws
of the State of Israel, without giving effect to its rules of choice of laws.
The opinions set forth herein as to the enforceability of any
documents are subject to any limitation of enforceability that may be imposed by
applicable bankruptcy, insolvency, fraudulent conveyance, composition,
reorganization, moratorium or other similar laws affecting creditor's rights and
remedies generally and by the application by a court of equitable principles
(regardless of whether such enforceability is considered in proceeding in equity
or in law).
As used in this opinion, any use of the term "knowledge" or
similar language means that, after an examination of documents made available by
the Company to attorneys of this firm in connection with the Underwriting
Agreement, but without any further independent factual investigation, we find no
reason to believe that the factual basis for any opinions expressed herein is
incorrect in any material respect.
5
With your permission, we have further assumed that no state or
federal securities laws in the United States which is applicable to the offering
of the Ordinary Shares pursuant the Registration Statement or any subsequent
dealings therein, nor the Nasdaq rules, limits the acquisition of any degree of
control over the Company nor requires the acquirer of any degree of control to
make a bid to purchase any Ordinary Shares from the public shareholders.
Furthermore, we have relied upon the representations of the
Company to us that (i) the Company currently intends to reinvest any income
derived from the "Approved Enterprise" programs and not to distribute the income
as a dividend, (ii) the Company's manufacturing facility is located in Yoqneam,
(iii) the period of tax benefits for the Company's "Approved Enterprise"
programs has not yet commenced, since the Company has yet to realize taxable
income, (iv) the Company expects to derive a substantial portion of its income
from its "Approved Enterprise" program, and (v) the Company applied to the
Income Tax Commission for an approval as an industrial company for the purpose
of exemption from capital gains tax on sales of ordinary shares offered to the
public pursuant to the Prospectus and cannot be certain that it will obtain such
approval or that it will continue to maintain this qualification or its status
as an industrial company or that the tax benefits described in Prospectus will
be available to the Company in the future.
Based upon and subject to the foregoing, we are of the opinion
that:
1. The Company has been duly incorporated and is validly
existing as a company under the laws of the State of Israel and has all
corporate power and authority necessary to own or hold its properties and
conduct the businesses as described in the Registration Statement.
2. The Company has the corporate power and authority to own,
lease and operate its properties, as the case may be, and to conduct its
business as described in the Prospectus.
3. Ordinary Shares:
(a) The Company has the authorized capitalization as set forth
in the Prospectus, and all of the issued shares of the Company outstanding prior
to the issuance of the Company Shares have been duly and validly authorized and
issued, are fully paid and non-assessable and conform in all material respects
to the description thereof contained in the Prospectus; and the share split and
conversion of all outstanding preferred shares have been duly and validly
authorized and completed by the Company in accordance with its articles of
association and all applicable Israeli corporate laws.
6
(b) The rights attached to the Ordinary Shares of the Company
conform in all material respects to the description thereof contained in the
Prospectus. The Shares are duly and validly authorized and, when the Company
Shares are issued and delivered against payment therefor as contemplated by the
Underwriting Agreement (I) all such Shares will be fully paid and
non-assessable, and (II) to our knowledge, the Company Shares shall be free and
clear of all liens, encumbrances, preemptive rights and other claims under the
Articles of Association of the Company or other instruments to which the Company
is party or under the laws of the State of Israel.
(c) No further approval or authority of the shareholders or
the Board of Directors of the Company is required for the issuance and sale of
the Company Shares as contemplated by the Underwriters Agreement.
(d) There are no preemptive or other rights to subscribe for
or to purchase, nor any restriction upon the voting or transfer of, any of the
Company Shares pursuant to the Company's articles of association or other
governing documents or, to our knowledge, any agreement or other instrument to
which the Company is a party or by which it is bound.
(e) The form of certificates used to evidence the Shares
complies with any applicable requirements of the articles of association of the
Company and under all applicable Israeli corporate laws.
(f) Except as described in the Prospectus, to our knowledge,
there are no contracts, agreements or understandings between the Company and any
person granting such person the right to require the Company to file a
registration statement under the Securities Act with respect to any securities
of the Company owned or to be owned by such person or to require the Company to
include such securities in the securities registered pursuant to the
Registration Statement or in any securities being registered pursuant to any
other registration statement filed by the Company under the Securities Act; and
neither the filing of the Registration Statement, nor the offering or sale of
the Shares as contemplated by the Underwriting Agreement gives rise to any
rights under the laws of the State of Israel (the "Applicable Laws") for or
relating to the registration of any Ordinary Shares or other securities of the
Company.
4. The Transaction and the Underwriting Agreement:
(a) The Company has full power and authority to enter into
each of the Underwriting Agreement under applicable Israeli law, and the
Underwriting Agreement has been duly authorized, executed and delivered by the
Company. All corporate action required by the Applicable Laws and the articles
of association of
7
the Company to be taken by the Company for the due and proper authorization,
issuance, offering, sale and delivery of the Company Shares has been validly and
sufficiently taken.
(b) The filing of the Registration Statement and the
Prospectus with the Securities and Exchange Commission has been duly authorized
by and on behalf of the Company and the Registration Statement has been duly
executed pursuant to such authorization in accordance with the Applicable Laws.
(c) The issuance, delivery and sale to the Underwriters of the
Company Shares to be issued and sold by the Company to the Underwriters are not
subject to any tax imposed on the Company by any Israeli court or government
agency or body (each a "Governmental Authority"), except the Israeli stamp duty.
(d) To our knowledge, other than as set forth in the
Prospectus, there is no legal or governmental proceeding pending or threatened
in writing to which the Company is a party or of which any property or assets of
the Company is the subject, which seeks to restrain, enjoin or prevent the
execution and delivery of the Underwriting Agreement or the consummation of the
transactions contemplated thereby.
(e) The issue and sale of the Company Shares being delivered
on the First Delivery Date by the Company pursuant to the Underwriting
Agreement, and the execution, delivery and compliance by the Company with all of
the provisions of the Underwriting Agreement and the consummation of the
transactions contemplated thereby will not conflict with or result in a breach
or violation of any of the terms or provisions of, or constitute a default
under, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument known to us to which the Company or any of its subsidiaries is a
party or by which the Company or any of its subsidiaries is bound or to which
any of the property or assets of the Company or any of its subsidiaries is
subject, nor will such actions result in any violation of the provisions of the
articles of association of the Company or any statute or any order, rule or
regulation known to us of any Israeli Governmental Authority having jurisdiction
over the Company or any of its subsidiaries or any of their properties or
assets; and subject to Underwriters' full compliance with their undertakings in
the Underwriting Agreement, no consent, approval, authorization or order of, or
filing or registration with, any such authority is required for the execution,
delivery and performance of the Underwriting Agreement by the Company and the
consummation of the transactions contemplated thereby, except for such consents,
approvals, authorizations, orders, filings or registrations as have been
obtained or made.
(f) The statements in the Registration Statement and the
Prospectus, insofar as statements refer to the Company's articles of association
or
8
resolutions of the shareholders and board of directors of the Company or to
material contracts, indentures, mortgages, loan agreements, notes, leases, plans
pertaining to option arrangements, employment agreements and other agreements,
arrangements or instruments to which the Company is a party, which are governed
by the laws of the State of Israel, are accurate and adequate in all material
respects insofar as such statements refer to statements of the Applicable Laws
or legal conclusions relating 'to matters of the Applicable Laws except such
statements which relate to intellectual property rights.
(g) Under the laws of Israel, the submission by the Company to
the jurisdiction of any federal or state court sitting in the county of New York
and the designation of the law of the State of New York to apply to the
Underwriting Agreement is binding upon the Company and, if properly brought to
the attention of the court in accordance with the laws of Israel, would be
enforceable in any judicial proceedings in Israel subject to the exercise of
judicial discretion or the existence of special circumstances or considerations,
such as differences in the provision of the statutes of limitation in the two
jurisdictions, reciprocity agreement as to enforceability between the two
jurisdictions, or if enforcement of such submission clause would be contrary to
the interest of justice or the public good;
5. The Affairs of the Company:
(a) To our knowledge, except as set forth in the Prospectus,
there are no legal or governmental proceedings before any Israeli Governmental
Authority pending or threatened in writing to which the Company or any of its
subsidiaries is a party or of which any property or assets of the Company or any
of its subsidiaries is the subject, which if determined adversely to the Company
or any of its subsidiaries, would have a Material Adverse Effect.
(b) To our knowledge, the Company is not in violation of its
articles or memorandum of association.
(c) To our knowledge, the Company is not in violation in
respect of any of the Applicable Laws known to us to which it or its property or
assets are subject or has failed to obtain or violated any approval of an
Israeli Governmental Authority necessary in the State of Israel to the ownership
of its property or to the conduct of its business as described in the
Prospectus, except for such defaults, violations or failures that, individually
or in the aggregate, would not be reasonably likely to have a Material Adverse
Effect and except in relation to its "Approved Enterprise" status under the Law
of the Encouragement of Capital Investments, 1959.
(d) To our knowledge, the Company has not received any notice
of proceedings relating to the revocation or modification of any such
Governmental
9
Approvals that, if determined adversely to the Company, would individually or in
the aggregate have a Material Adverse Effect.
6. The statements made (a) in the Prospectus under the
captions "Risk Factors - Risks relating to our location in Israel, "Dividend
Policy," "Management's Discussion and Analysis of Financial Condition and
Results of Operations," "Business," "Management," "Certain Relationships and
Related Party Transactions," "Background Information," "Description of Share
Capital," "Conditions in Israel," "Israeli Taxation and Government Programs,"
and "Enforceability of Civil Liabilities" and (b) in Item 6 of the Registration
Statement, in each case to the extent that such statements constitute Israeli
legal matters or relate to the provisions of the Company's articles of
association, have been reviewed by us and fairly reflect the matters purported
to be summarized and are correct in all material respects. Our opinion filed as
Exhibit 8.1 to the Registration Statement is hereby confirmed, and the
Underwriters may rely upon such opinion as if it were addressed to them.
Representatives of our firm participated in conferences with
officers and other representatives of the Company, representatives of U.S.
counsel for the Company, representatives of the independent public accountants
for the Company, representatives of the Underwriters and representatives of
counsel for the Underwriters, at which conferences the contents of the
Registration Statement and the Prospectus, and any supplements or amendments
thereto, and related matters were discussed and, although we have not verified
the accuracy and completeness of the statements contained in the Registration
Statement or the Prospectus and we are not passing upon, and do not assume any
responsibility for, the accuracy, completeness or fairness of the statements
contained in the Registration Statement or the Prospectus (except as specified
in paragraphs 3(a), 3(b) and 6 above) and our judgments as to materiality are,
to the extent we deem appropriate, based in part upon the views of appropriate
officers and other representatives of the Company and on the basis of the
foregoing but without independent check or verification, no facts have come to
our attention that have caused us to believe that (i) at the time the
Registration Statement became effective, the Registration Statement or any
amendment thereto made by the Company prior to such Delivery Date (other than
the financial statements, financial schedules and other financial and accounting
data included therein or incorporated by reference therein or omitted therefrom,
as to which we express no view) contained an untrue statement of a material fact
or omitted to state a material fact necessary to make the statements therein not
misleading or, (ii) as of its date, the Prospectus (other than the financial
statements, financial schedules and other financial and accounting data included
therein or incorporated by reference therein or omitted therefrom, as to which
we express no view) contained an untrue statement of a material fact or omitted
to state a material fact necessary to make the statements therein, in the light
of the circumstances under
10
which they were made, not misleading, (iii) as of the date hereof, the
Registration Statement, the Prospectus and any amendment or supplement made
thereto prior to such dates (other than the financial statements, financial
schedules and other financial and accounting data included therein, as to which
we express no view) contained an untrue statement of a material fact or omitted
to state a material fact necessary in order to make the statements therein (in
the case of the Prospectus and any amendments or supplements thereto, in light
of the circumstances in which they were made) not misleading.
In rendering the opinions set forth in the preceding
paragraph, we are not passing on the adequacy or accuracy of the derivation or
compilation from the Company's accounting records, results of clinical or other
trials, or other sources of data, of the financial, statistical, clinical or
other trial data, or technical specifications, included in the Registration
Statement or the Prospectus.
This opinion is issued solely to you and for the purpose of
consummating the transactions contemplated under the Underwriting Agreement. You
may not rely on it for any other purpose, and no other person or entity may rely
on it for any purpose. We assume no obligation to update this opinion or to
advise you of any events that occur subsequent to the date of this opinion.
Very truly yours,
11
EXHIBIT 3
OPINION OF WHITE & CASE LLP
U.S. COUNSEL TO THE COMPANY
Ladies and Gentlemen:
We have acted as United States counsel for
Given Imaging Ltd.
(the "Company"), a company organized under the laws of the State of Israel, in
connection with the transactions contemplated by the underwriting agreement (the
"Underwriting Agreement") dated , 2002, between the Company and Xxxxxx Brothers
Inc., as representative of the several underwriters (the "Underwriters") named
in Schedule 1 to the Underwriting Agreement. This opinion is delivered to you
pursuant to Section 7(e) of the Underwriting Agreement. Capitalized terms used
herein and not otherwise defined are used herein as defined in the Underwriting
Agreement.
In so acting, we have examined certificates of officers of the
Company, and the originals (or copies thereof, certified to our satisfaction) of
such corporate documents and records of the Company, and such other documents,
records and papers as we have deemed relevant in order to give the opinions
hereinafter set forth. In this connection, we have assumed the genuineness of
signatures, the authenticity of all documents submitted to us as originals and
the conformity to authentic original documents of all documents submitted to us
as certified, conformed, facsimile or photostatic copies. In addition, we have
relied, to the extent that we deem such reliance proper, upon such certificates
of officers of the Company with respect to the accuracy of factual matters
contained therein which were not independently established. We have also assumed
that under Israeli law, the Company has full power, authority and legal right to
enter into and perform its obligations under the Underwriting Agreement and that
there has been due authorization, issuance and delivery of the Shares by the
Company. Our opinion in paragraph 1 below as to the valid existence and good
standing of the Given Imaging, Inc. (the "U.S. Subsidiary") is based solely upon
the good standing certificates obtained by us from the Office of the Secretary
of State of the State of Delaware and the Office of the Secretary of State of
the State of Georgia. Our opinion in paragraph 5 below as to the effectiveness
of the Registration Statement is based solely upon telephonic confirmation
received by us from [____________], who we believe to be a member of the Staff
of the Office of Corporate Finance of the Commission.
Based upon the foregoing, it is our opinion that:
1. The U.S. Subsidiary has been duly incorporated and is
validly existing in good standing as a company under the laws of the State of
Delaware, is
12
duly qualified to do business and is in good standing as a foreign corporation
in each jurisdiction in which its ownership or lease of property or the conduct
of its business requires such qualification except where the failure to be so
qualified would not reasonably be expected to have a Material Adverse Effect and
has all corporate power and authority necessary to own or hold its properties
and conduct its business as described in the Registration Statement.
2. All of the issued shares of the U.S. Subsidiary have been
duly authorized and validly issued and are fully paid, non-assessable and are
owned directly or indirectly by the Company.
3. No consent, approval, authorization or order of, or
qualification, filing or registration with any New York State or U.S. Federal
governmental agency or body or any New York State or U.S. Federal court is
required to be obtained or made by the Company or its subsidiaries for the
issuance and sale of the Shares as contemplated herein, except (i) such as have
been obtained or made under the Securities Act, (ii) such as may be required
under U.S. state securities or blue sky laws or securities laws of any foreign
jurisdiction in connection with the purchase and distribution of the Shares by
the Underwriters in the manner contemplated herein and in the Prospectus (as to
which we express no opinion), and (iii) such as may be required by the National
Association of Securities Dealers, Inc.
4. The statements set forth in the Prospectus under "Taxation
and Government Programs - United States Federal Income Tax Considerations,"
insofar as such statements constitute matters of U.S. federal income tax law or
legal conclusions with respect thereto, are accurate in all material respects.
We hereby confirm our opinion filed as Exhibit 8.2 to the Registration
Statement.
5. The Registration Statement was declared effective by the
Commission under the Securities Act as of [___], Washington, D.C. time, on
[____], 2002 and the Prospectus was filed with the Commission pursuant to Rule
424(b)(4) on [____], 2002. To our knowledge, no stop order suspending the
effectiveness of the Registration Statement has been issued and no proceedings
for such purpose have been instituted or are pending or are contemplated or
threatened by the Commission.
6. The Company is not, nor will become as a result of the
consummation of the transactions contemplated by the Underwriting Agreement and
the application of the net proceeds from the sale of Shares as described in the
Prospectus, an "investment company" as defined in the Investment Company Act of
1940, as amended.
7. To our knowledge, there is no legal or governmental
proceeding threatened in writing or pending in any state or federal court
located in
13
the County of New York, State of New York, to which the Company is a party or to
which any property of the Company is subject, which seeks to restrain, enjoin or
prevent the execution and delivery of the Underwriting Agreement or the
consummation of the transactions contemplated thereby.
In the course of preparation by the Company of the
Registration Statement, we have participated in conferences with officers and
other representatives of the Company, with representatives of Zellermayer,
Pelossof & Co., Israeli counsel to the Company, with representatives of the
independent auditors of the Company, and with you and your counsel. We are not
passing upon and do not assume any responsibility for the accuracy, completeness
or fairness of the statements contained in the Registration Statement or the
Prospectus (except to the extent stated in paragraph 4 above), and our judgments
as to materiality are, to the extent we deem appropriate, based in part upon the
views of appropriate officers and other representatives of the Company.
Based upon such participation in the preparation of the
Registration Statement and the Prospectus, but without independent check or
verification, and subject to the preceding paragraph and the subsequent and
final paragraphs hereof, (a) it is our opinion that each of the Registration
Statement at the time of effectiveness and the Prospectus as of its date (except
for the financial statements and related schedules and other financial and
accounting data included or incorporated by reference therein or omitted
therefrom, as to which we express no opinion) complies as to form in all
material respects with the requirements of the Securities Act and the Rules and
Regulations, (b) to our knowledge, there is no contract or other document
required by the Securities Act or the Rules and Regulations to be described in
the Prospectus or filed as an exhibit to the Registration Statement that is not
described or filed as required, (c) nothing has come to our attention which
causes us to believe that, as of its time of effectiveness, the Registration
Statement (other than the financial statements and related schedules and other
financial and accounting date included or incorporated by reference therein or
omitted therefrom, as to which we express no belief) 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, and
(d) nothing has come to our attention which causes us to believe that, as of its
date and the date hereof, the Prospectus (other than the financial statements
and related schedules and other financial and accounting data included or
incorporated by reference therein or omitted therefrom, as to which we express
no belief) contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.
In rendering the opinions set forth in the preceding
paragraph, we are not passing on the adequacy or accuracy of the derivation or
compilation from the
14
Company's accounting records, results of clinical or other trials, or other
sources of data, of the financial, statistical, clinical or other trial data, or
technical specifications, included in the Registration Statement or the
Prospectus.
The phrase, "to our knowledge," or words of similar import,
means the actual knowledge (without independent investigation except as
otherwise stated) of lawyers at White & Case LLP who have been principally
involved in negotiating and reviewing the Underwriting Agreement and in the
preparation and review of the Registration Statement and the Prospectus.
We do not express or purport to express any opinions with
respect to laws other than the laws of the State of New York and the Federal
laws of the United States. This opinion is given solely for your use in
connection with the Underwriting Agreement and may not be relied on by any other
person or for any other purpose. We do not undertake to advise you of any
changes in our opinions expressed herein resulting from matters that may
hereafter arise or that hereafter may be brought to our attention.
Very truly yours,
15
EXHIBIT 4
OPINION OF EITAN, PEARL, XXXXXX & XXXXX-XXXXX
INTELLECTUAL PROPERTY COUNSEL TO THE COMPANY
This opinion is delivered in connection with the Underwriting
Agreement, dated [___________] (the "Underwriting Agreement") relating to the
offering of 6,200,000 Ordinary Shares, par value NIS 0.05 each, of the Company,
pursuant to the registration statement on Form F-1 filed with the United States
Securities and Exchange Commission (File No. [_________]) on [_______]. Unless
otherwise defined herein, capitalized terms used herein shall have the meanings
ascribed to them in the Underwriting Agreement.
Whenever our opinions herein are qualified by the phrase, "to
the best of our knowledge," such language means that based upon the actual
knowledge of attorneys presently within our firm and all knowledge that would
have been gained upon the reasonable investigation of our files.
We have read the Registration Statement and the Prospectus,
including particularly the portions of the Registration Statement and the
Prospectus referring to the patents, patent applications, trademarks, trademark
applications, designs and design applications as set forth in Appendix A,
attached hereto (the patents, patent applications, trademarks, trademark
applications, designs and design applications described in Appendix A shall be
collectively referred to as the "IP Rights")
Based on the foregoing, we are of the opinion that:
1. As to the statements in the Registration Statement and any
further amendment thereto made by the Company prior to the Delivery Date and in
the Prospectus or any further amendment or supplement thereto made by the
Company prior to the Delivery Date under the captions "Risk Factors - Because of
the importance of our patent portfolio to our business, we may lose market share
to our competitors if we fail to protect our intellectual property rights,"
"Risk Factors - Because the medical device industry is litigious, we are
susceptible to intellectual property suits that could cause us to incur
substantial costs or to pay substantial damages or prohibit us from selling our
product" and "Business - Intellectual Property," insofar as such statements
constitute matters of U.S. or Israeli patent, trademark, copyright or design
laws or legal conclusions with respect thereto, are accurate in all material
respects and complete statements or summaries of the matters set forth therein.
2. To the best of our knowledge, (i) the Registration
Statement and any further amendment thereto made by the Company prior to the
Delivery Date,
16
at the time such Registration Statement or amendment became effective, did not
contain an untrue statement of a material fact with respect to the IP Rights or
omit to state a material fact relating to the IP Rights required to be stated
therein or necessary to make the statements therein not misleading, (ii) the
Prospectus and any further amendment or supplement thereto made by the Company
prior to the Delivery date, as of its date, did not contain an untrue statement
of a material fact with respect to the IP Rights or omit to state a material
fact relating to the IP Rights required to be stated therein or necessary to
make the statements therein not misleading, and (iii) at the Delivery date, the
Registration Statement, the Prospectus and any further amendment or supplement
thereto made by the Company prior to the Delivery date did not contain an untrue
statement of a material fact with respect to the IP Rights or omit to state a
material fact relating to the IP Rights required to be stated therein or
necessary to make the statements therein not misleading.
3. Except to the extent described in the Prospectus, the
Company is listed in the records of the United State Patent and Trademark Office
and in the records of the appropriate foreign offices as the holder of holder of
record of the IP Rights. To the best of our knowledge, except for the Patent
Applications specified in Appendix A, which are jointly owned by the Company and
by Yissum, Research Development Company of the Hebrew University of Jerusalem,
the Company is the sole owner of the IP Rights. To the best of our knowledge,
except as described in the Registration Statement, there is no pending or
threatened action, suit proceeding or claim challenging the validity or scope of
any of the IP Rights.
4. To the best of our knowledge, the Company has taken such
steps as are required, including the payment of all necessary maintenance fees,
to maintain the enforceability of the IP Rights and to maintain the pendency of
the Patent Applications, Trademark Applications and Design Applications,
specified in Appendix A, attached hereto.
Yours faithfully,
17
EXHIBIT 5
OPINION OF XXXXX & XXXXXXX, L.L.P.
REGULATORY COUNSEL TO THE COMPANY
Ladies and Gentlemen:
This letter is furnished to you pursuant to Section 9(g) of the
Underwriting Agreement dated [_________], 2002 (the "Underwriting Agreement")
between you and
Given Imaging Ltd. (the "Company"), relating to the sale by the
Company and purchase by you as Representatives of the several Underwriters of
6,200,000 ordinary shares (the "Shares").
This firm serves as special regulatory counsel to the Company
only with respect to the U.S. Food and Drug Administration ("FDA") and Federal
Communications Commission ("FCC"), and European Conference of Postal and
Telecommunications Administrations ("CEPT") areas. In addition, for purposes of
this offering only, the firm served as special regulatory counsel with respect
to certain Medicare, Medicaid, and third-party reimbursement matters. In such
capacity, we have reviewed certain information under the following captions in
the Company's final Prospectus dated [_________], 2002 (the "Prospectus"),
forming a part of the Company's Registration Statement on Form F-1, as amended
(Registration No. [_________]):
o "Risk Factors--If physicians, hospitals and other healthcare providers are
unable to obtain coverage and reimbursement from third-party healthcare
payors for procedures using the Given System, or if reimbursement is
insufficient to cover the costs of purchasing the Given System, we may be
unable to generate sufficient sales to support our business,"
o "Risk Factors--We are subject to extensive regulation by the U.S. Food and
Drug Administration, or FDA, which could delay or prevent our entry into
the United States market, could restrict the sales and marketing of the
Given System and could cause us to incur significant costs,"
o "Risk Factors--If we do not obtain and maintain the necessary regulatory
approvals in a specific country or region, we will not be able to market
and sell the Given System in that country or region,"
o "Risk Factors--Our failure to obtain necessary U.S. Federal Communications
Commission, or FCC, authorizations could impair our ability to commercially
distribute and market the Given System in the United States,"
18
o "Risk Factors--The duty cycle at which the Given System currently operates
does not meet new European technical standards for radio frequencies which
have been implemented by certain European governments and may be
implemented by others. If the technical standards are not changed, our
failure to obtain a waiver or separate authorization could prevent use of
the Given System in countries which have adopted these standards,"
o "Business--FDA and Other Government Regulation," and "Business--Third-Party
Reimbursement"
We have not been retained or engaged by the Company to perform, nor have we
performed, any review of any other information in the Prospectus, nor have we
acted as the Company's corporate or securities counsel in connection with the
sale of the Shares, and we express no opinion with respect to the offering or
any information in the Prospectus except as set forth in Paragraphs (i) and (ii)
below. Terms used herein that are defined in the Underwriting Agreement shall
have the respective meanings set forth in the Underwriting Agreement, unless
otherwise defined herein.
For purposes of the Opinion (as defined below), we have
examined copies of the following:
1. An executed copy of the Underwriting Agreement.
2. The information contained in the Prospectus under the
captions "Risk Factors--If physicians, hospitals and other
healthcare providers are unable to obtain coverage and
reimbursement from third-party healthcare payors for procedures
using the Given System, or if reimbursement is insufficient to
cover the costs of purchasing the Given System, we may be unable
to generate sufficient sales to support our business," "Risk
Factors--We are subject to extensive regulation by the U.S. Food
and Drug Administration, or FDA, which could delay or prevent our
entry into the United States market, could restrict the sales and
marketing of the Given System and could cause us to incur
significant costs," "Risk Factors--If we do not obtain and
maintain the necessary regulatory approvals in a specific country
or region, we will not be able to market and sell the Given System
in that country or region," "Risk Factors - Our failure to obtain
necessary U.S. Federal Communications Commission, or FCC,
authorizations could impair our ability to commercially distribute
and market the Given System in the United States," "Risk
Factors--The duty cycle at which the Given System currently
operates does not meet new European technical
19
standards for radio frequencies which have been implemented by
certain European governments and may be implemented by others. If
the technical standards are not changed, our failure to obtain a
waiver or separate authorization could prevent use of the Given
System in countries which have adopted these standards," "
Business--FDA and Other Government Regulation," and
"Business--Third-Party Reimbursement."
3. A certificate dated as of [_________], 2002 of certain
officers of the Company as to certain facts relating to the
Company.
For purposes of the Opinion, we have not made any independent
review or investigation of factual or other matters, including the assets,
business or affairs of the Company. We have assumed the authenticity, accuracy
and completeness of the foregoing documents, certification and statements of
fact, on which we are relying, and have made no independent investigations
thereof. Further, for purposes of the Opinion, we have not independently
verified, nor do we take any responsibility for nor are we addressing in any way
any statements of fact, any statements concerning state or foreign national law,
any legal conclusions or any statements of belief attributable to the Company or
whether or not the Company is in compliance with applicable FDA, FCC, CEPT or
Medicare, Medicaid, or third-party reimbursement requirements. The Opinion is
given in the context of the foregoing.
This letter is based as to matters of law solely on the Federal
Food, Drug, and Cosmetic Act, as amended (the "FDC Act") and the regulations
promulgated thereunder, the Communications Act of 1934, as amended (the
"Communications Act") and the regulations promulgated thereunder, and the
Medicare and Medicaid reimbursement, anti-kickback, and false claims provisions
of the Social Security Act as amended (the "Social Security Act Provisions"),
and the regulations promulgated thereunder, and the constituent documents of the
CEPT and its committees, and we express no view as to any other laws, statutes,
regulations or ordinances, including without limitation any foreign, federal or
state licensing, tax or securities laws or regulations.
Nothing herein shall be construed to cause us to be considered
"experts" within the meaning of Section 11 of the Securities Act of 1933, as
amended.
With respect to the CEPT area, we have not confirmed with any
foreign national agency that it has implemented CEPT measures, which are not
independently legally binding, or has plans to do so. We have relied upon review
of CEPT documents that are publicly available and could be changed at any time.
20
Based upon, subject to and limited by the foregoing, we are of
the opinion that the statements in the Prospectus under the captions "Risk
Factors--If physicians, hospitals and other healthcare providers are unable to
obtain coverage and reimbursement from third-party healthcare payors for
procedures using the Given System, or if reimbursement is insufficient to cover
the costs of purchasing the Given System, we may be unable to generate
sufficient sales to support our business," "Risk Factors--We are subject to
extensive regulation by the U.S. Food and Drug Administration, or FDA, which
could delay or prevent our entry into the United States market, could restrict
the sales and marketing of the Given System and could cause us to incur
significant costs," "Risk Factors--If we do not obtain and maintain the
necessary regulatory approvals in a specific country or region, we will not be
able to market and sell the Given System in that country or region," "Risk
Factors--Our failure to obtain necessary U.S. Federal Communications Commission,
or FCC, authorizations could impair our ability to commercially distribute and
market the Given System in the United States," "Risk Factors--The duty cycle at
which the Given System currently operates does not meet new European technical
standards for radio frequencies which have been implemented by certain European
governments and may be implemented by others. If the technical standards are not
changed, our failure to obtain a waiver or separate authorization could prevent
use of the Given System in countries which have adopted these standards,"
"Business--FDA and Other Government Regulation," "Business--Third-Party
Reimbursement" insofar as such statements purport to summarize applicable
provisions of the FDC Act and the regulations promulgated thereunder, the
Communications Act and the regulations promulgated thereunder, the Social
Security Act Provisions and the regulations promulgated thereunder, or CEPT
standards are accurate summaries in all material respects of the provisions
purported to be summarized under such captions in the Prospectus (the
"Opinion").
* * * * *
We assume no obligation to advise you of any changes in the
foregoing subsequent to the delivery of this letter. This letter has been
prepared solely for your use in connection with the Closing under the
Underwriting Agreement on the date hereof, and should not be quoted in whole or
in part or otherwise be referred to, nor be filed with or furnished to any
governmental agency or other person or entity, without the prior written consent
of this firm.
Very truly yours,
21
EXHIBIT 6
OPINION OF MINTZ, LEVIN, COHN, FERRIS, GLOVSKY AND POPEO, P.C.
Ladies and Gentlemen:
We have acted as special counsel to Thermo Electron Corporation, a
Delaware corporation ("Thermo Electron") in connection with its sale of _______
shares of the ordinary shares, nominal value NIS 0.05 per share, of
Given
Imaging Ltd., a company organized under the laws of the State of Israel (the
"Company"), pursuant to the terms and conditions of the Underwriting Agreement
dated _______, 2002 (the "Underwriting Agreement"), by and among the Company,
the Custodian, the underwriters listed on Schedule 1 thereto (the
"Underwriters") for whom you serve as representatives, and the shareholders of
the Company listed on Schedule 2 thereto. As used herein, the term "Selling
Shareholder" refers to Thermo Electron. Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed to them in the Underwriting
Agreement. This opinion is furnished to you pursuant to Section 9(h) of the
Underwriting Agreement.
In arriving at the opinions expressed below, we have examined and
relied upon, among other things, copies of the Underwriting Agreement, the Power
of Attorney signed by the Selling Shareholder and the Custody Agreement signed
by the Selling Shareholder and the Company, as custodian; and copies of all
closing certificates and other documents delivered in connection with the
closing of the sale of the Shares on _______, 2002, pursuant to the terms and
conditions of the Underwriting Agreement.
In rendering these opinions, as to the factual matters not directly
within our actual knowledge, we have relied upon, and have assumed the accuracy,
completeness and genuineness of, certificates of and oral confirmation by public
officials, certificates of the Selling Shareholder and oral and written
representations made to us by the Selling Shareholder. We have assumed the
genuineness of all signatures and documents submitted to us as originals, that
all copies submitted to us conform to the originals, the legal capacity of all
natural persons, and, as to documents executed by entities other than the
Selling Shareholder, that such documents have been duly authorized, executed and
delivered by, and are binding upon and enforceable against, such entities. We
have also assumed that all parties to the Underwriting Agreement, the Custody
Agreement and the Power of Attorney, other than the Selling Shareholder, possess
the requisite power and authority to enter into such agreements and instruments
and the transactions contemplated thereby, and that such agreements and
instruments have been duly executed and delivered by such parties.
We express no opinion herein as to the laws of any jurisdiction other
than the Commonwealth of Massachusetts, the General Corporation Law of the State
of Delaware, and the federal law of the United States.
On the basis of the foregoing, we are of the opinion that:
1. The Selling Shareholder has been duly incorporated and is validly
existing and in good standing as a corporation under the laws of Delaware and
has full right, power and authority to enter into the Underwriting Agreement,
the Custody Agreement and the Power of Attorney.
2. The execution, delivery and performance of the Underwriting
Agreement, the Custody Agreement and the Power of Attorney by the Selling
Shareholder and the consummation by the Selling Shareholder of the transactions
contemplated by the Underwriting Agreement, the Custody Agreement and the Power
of Attorney will not conflict with or result in a breach or violation of any of
the terms or provisions of, or constitute a default under, any statute, any
material indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument known to us to which the Selling Shareholder is a party or by
which the Selling Shareholder is bound or to which any of the material property
or assets of the Selling Shareholder is subject, nor will such actions result in
any violation of the governing documents of the Selling Shareholder or any
statute or any order, rule or regulation known to us of any court or
governmental agency or body having jurisdiction over the Selling Shareholder or
the property or assets of the Selling Shareholder.
3. Except for the registration of the Shares under the Securities Act
and the Rules and Regulations and such consents, approvals, authorizations,
registrations or qualifications as may be required under the Exchange Act, and
the regulations promulgated thereunder, and applicable state securities and
"blue sky" laws and foreign securities laws, or the National Association of
Securities Dealers in connection with the purchase and distribution of the
Shares by the Underwriters, no consent, approval, authorization or order of, or
filing or registration with, any court or governmental agency or body is
required for the execution, delivery and performance of the Underwriting
Agreement, the Custody Agreement and the Power of Attorney by the Selling
Shareholder or the consummation by the Selling Shareholder of the transactions
contemplated thereby.
4. Each of the Underwriting Agreement, the Custody Agreement and the
Power of Attorney has been duly authorized, executed and delivered by or on
behalf of the Selling Shareholder and constitutes a valid and binding agreement
of the Selling Shareholder, enforceable in accordance with its terms, except as
rights to indemnity and contribution under the Underwriting Agreement may be
limited by applicable law, and except as the enforcement thereof may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws of
general applicability relating to or affecting creditors' rights and to general
equity principles.
5. Immediately prior to the First Delivery Date, the Selling
Shareholder had good and valid title to the Shares to be sold by the Selling
Shareholder under the Underwriting Agreement, free and clear of all liens,
encumbrances, equities or claims, and full right, power and authority to sell,
assign, transfer and deliver such shares to be sold by the Selling Shareholder
under the Underwriting Agreement.
6. The Selling Shareholder is the holder of record of the Shares to be
sold by the Selling Shareholder under the Underwriting Agreement. Assuming that
the Underwriters purchase the Shares that are sold by the Selling Shareholder
pursuant to the Underwriting Agreement, and further assuming that they purchase
such Shares in good faith and without notice of any adverse claim, and that
there are no events or circumstances peculiar to any individual Underwriter
which might result
in such a defect, upon the consummation of such purchase, the Underwriters will
acquire good and valid title to such Shares, free and clear of all liens,
encumbrances, equities or claims.
This opinion is furnished by us as special counsel for the Selling
Shareholder to you as the Underwriters, is solely for the benefit of the
Underwriters, and may not be given to any third party without our express prior
written consent.
Very truly yours,
OPINION OF ZELLERMAYER, PELOSSOF & CO.
We have acted as Israel counsel for RDC Xxxxxx Development Corporation
Ltd., a company duly incorporated, organized and validly existing under the laws
of the State of Israel (the "RDC"), in connection with its sale of _______
Ordinary Shares, nominal value NIS 0.05 per share, of
Given Imaging Ltd., a
company organized under the laws of the State of Israel (the "Company"),
pursuant to the terms and conditions of the Underwriting Agreement dated
_______, 2002 (the "Underwriting Agreement"), by and among the Company, the
Custodian, the underwriters listed on Schedule 1 thereto (the "Underwriters")
for whom you serve as Representatives, and the shareholders of the Company
listed on Schedule 2 thereto. As used herein, the term "Selling Shareholder"
refers solely to RDC. Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in the Underwriting Agreement. This
opinion is furnished to you pursuant to Section 9(h) of the Underwriting
Agreement.
In so acting, and as a basis for the opinions herein set forth, we have
examined original, photocopied, facsimiled copies or electronically transmitted
versions of the Underwriting Agreement, the Power of Attorney signed by the
Selling Shareholder and the Custody Agreement signed by the Selling Shareholder
and the Company, as Custodian; the Selling Shareholder's Memorandum and Articles
of Association and all corporate minutes, records and other documents of the
Selling Shareholder provided to us by the Selling Shareholder which we have
deemed as necessary or relevant as a basis for the opinions hereinafter
expressed. In such examination we have assumed the due authorization, execution
and delivery of the Underwriting Agreement, the Custodian Agreement and any part
thereof, by all parties thereto other than the Selling Shareholder, due
compliance with the laws of the State of New York and all other relevant laws
(other than the laws of the State of Israel), the genuineness of all signatures
(other than those on behalf of the Selling Shareholder), that each such party
has entered into the Underwriting Agreement and the Custodian Agreement in good
faith and without notice of any adverse fact, that the Underwriting Agreement
constitutes the legal, valid and binding obligation of each such party (other
than the Selling Shareholder), enforceable against it in accordance with its
terms, and that each such party has and shall have complied with and punctually
performed all its covenants, undertakings and agreements thereunder. We have
further assumed, without any investigation, the legal capacity of natural
persons, the corporate power of legal persons (other than the Selling
Shareholder) and the authority of the individuals acting on their behalf, actual
compliance of all parties with their covenants and agreements and with all
relevant laws, the authenticity of all documents submitted to us as originals,
the conformity to original documents of all documents submitted, facsimiled or
electronically transmitted to us as copies and that such documents as examined
by us are true, complete and correct,
25
are in full force and effect and have not been amended, rescinded, supplemented
or otherwise modified. As to various questions of fact relevant to the opinions
expressed herein, we have relied exclusively upon and assumed the completeness
and accuracy of, without any independent investigation or verification, the
certificates of officers of the Selling Shareholder, public officials and
others, including, without limitations, the documents delivered on the date
hereof pursuant to the Underwriting Agreement and the Custodian Agreement, and
the representations, warranties and other statements of fact contained therein,
assuming, that there are no other records or facts that may be relevant to our
opinions. With your permission, all other assumptions and statements of reliance
as indicated herein have been made without any independent investigation or
verification on our part except to the extent otherwise expressly stated in this
opinion, and we express no opinion with respect to the subject matter or
accuracy of such assumptions or items relied upon.
We do not opine as to the laws of all jurisdictions other than the
State of Israel as the same are in force on the date hereof, such opinions being
based on current law, therefore there can be no assurance that the views
expressed in such opinions will be accepted by the relevant administrative or
judicial authorities. We do not express any opinion herein concerning any legal
conclusions derived from any law, as set forth above, as to which we otherwise
do not express any opinion herein. Our opinion shall be governed by and
construed in accordance with the internal laws of the State of Israel, without
giving effect to its rules of choice of laws.
As used in this opinion, any use of the term "knowledge" or similar
language means that, after an examination of documents made available by the
Selling Shareholder to attorneys of this firm in connection with the
Underwriting Agreement, the Custodian Agreement and the Power of Attorney but
without any further independent factual investigation, we find no reason to
believe that the factual basis for any opinions expressed herein is incorrect in
any material respect.
Based upon and subject to the foregoing, we are of the opinion that:
1. The Selling Shareholder has been duly incorporated and is
validly existing as a corporation under the laws of Israel and has full right,
power and authority to enter into the Underwriting Agreement, the Custody
Agreement and the Power of Attorney.
2. The execution, delivery and performance of the Underwriting
Agreement, the Custody Agreement and the Power of Attorney by the Selling
Shareholder and the consummation by the Selling Shareholder of the transactions
contemplated by the Underwriting Agreement, the Custody Agreement and the Power
of Attorney will not conflict with or result in a breach or violation of any of
the terms or provisions of, or constitute a default under, any statute, any
material indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument known to
26
us to which the Selling Shareholder is a party or by which the Selling
Shareholder is bound or to which any of the material property or assets of the
Selling Shareholder is subject, nor will such actions result in any violation of
the governing documents of the Selling Shareholder or any statute or any order,
rule or regulation known to us of any court or governmental agency or body
having jurisdiction over the Selling Shareholder or the property or assets of
the Selling Shareholder.
3. Except for the registration of the Shares under the
Securities Act and the Rules and Regulations and such consents, approvals,
authorizations, registrations or qualifications as may be required under the
Exchange Act, and the regulations promulgated thereunder, and applicable state
securities and "blue sky" laws and foreign securities laws, or the National
Association of Securities Dealers in connection with the purchase and
distribution of the Shares by the Underwriters, no consent, approval,
authorization or order of, or filing or registration with, any court or
governmental agency or body is required under the laws of the State of Israel
for the execution, delivery and performance of the Underwriting Agreement, the
Custody Agreement and the Power of Attorney by the Selling Shareholder or the
consummation by the Selling Shareholder of the transactions contemplated
thereby, except such as have been obtained and made and those that are not
required to have been obtained or made prior to the Closing.
4. Each of the Underwriting Agreement, the Custody Agreement
and the Power of Attorney has been duly authorized, executed and delivered by or
on behalf of the Selling Shareholder and constitutes a valid and binding
agreement of the Selling Shareholder, enforceable in accordance with its terms,
except as rights to indemnify and contribution under the Underwriting Agreement
may be limited by applicable law, and except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws of general applicability relating to or affecting creditors' rights and to
general equity principles.
5. Immediately prior to the [First/Second] Delivery Date, the
Selling Shareholder had good and valid title to the Shares to be sold by the
Selling Shareholder under the Underwriting Agreement, and to our knowledge free
and clear of all liens, encumbrances, equities or claims, and full right, power
and authority to sell, assign, transfer and deliver such shares to be sold by
the Selling Shareholder under the Underwriting Agreement.
6. The Selling Shareholder is the holder of record of the
Shares to be sold by the Selling Shareholder under the Underwriting Agreement.
Assuming that the Underwriters purchase the Shares that are sold by the Selling
Shareholder pursuant to the Underwriting Agreement, and further assuming that
they purchase such Shares in good faith and without notice of any adverse claim,
and there are no events or circumstances peculiar to any individual Underwriter
which might result in such a defect, upon the consummation of such purchase, the
Underwriters will
27
acquire good and valid title to such Shares, and to our knowledge free and clear
of all liens, encumbrances, equities or claims.
This opinion is furnished by us, as counsel to the Selling
Shareholder, to you as the Underwriters, is solely for the benefit of the
Underwriters, and may not be given to or relied by any third party without our
express written consent.
Very truly yours,
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EXHIBIT 8
OPINION OF COUNSEL TO SELLING SHAREHOLDERS
1. The Selling Shareholder has been duly incorporated and is validly
existing [and is in good standing--FOR NON-ISRAELI ENTITIES] as a corporation
under the laws of [___________] and has full right, power and authority to enter
into the Underwriting Agreement, the Custody Agreement and the Power of
Attorney.
2. The execution, delivery and performance of the Underwriting
Agreement, the Custody Agreement and the Power of Attorney by the Selling
Shareholder and the consummation by the Selling Shareholder of the transactions
contemplated by the Underwriting Agreement, the Custody Agreement and the Power
of Attorney will not conflict with or result in a breach or violation of any of
the terms or provisions of, or constitute a default under, any statute, any
material indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument known to us to which the Selling Shareholder is a party or by
which the Selling Shareholder is bound or to which any of the material property
or assets of the Selling Shareholder is subject, nor will such actions result in
any violation of the governing documents of the Selling Shareholder or any
statute or any order, rule or regulation known to us of any court or
governmental agency or body having jurisdiction over the Selling Shareholder or
the property or assets of the Selling Shareholder.
3. Except for the registration of the Shares under the Securities Act
and the Rules and Regulations and such consents, approvals, authorizations,
registrations or qualifications as may be required under the Exchange Act, and
the regulations promulgated thereunder, and applicable state securities and
"blue sky" laws and foreign securities laws, or the National Association of
Securities Dealers in connection with the purchase and distribution of the
Shares by the Underwriters, no consent, approval, authorization or order of, or
filing or registration with, any court or governmental agency or body is
required for the execution, delivery and performance of the Underwriting
Agreement, the Custody Agreement and the Power of Attorney by the Selling
Shareholder or the consummation by the Selling Shareholder of the transactions
contemplated thereby.
4. Each of the Underwriting Agreement, the Custody Agreement and the
Power of Attorney has been duly authorized, executed and delivered by or on
behalf of the Selling Shareholder and constitutes a valid and binding agreement
of the Selling Shareholder, enforceable in accordance with its terms, except as
rights to indemnity and contribution under the Underwriting Agreement may be
limited by applicable law, and except as the enforcement thereof may be limited
by bankruptcy,
29
insolvency, reorganization, moratorium or other similar laws of general
applicability relating to or affecting creditors' rights and to general equity
principles.
5. Immediately prior to the First Delivery Date, the Selling
Shareholder had good and valid title to the Shares to be sold by the Selling
Shareholder under the Underwriting Agreement, free and clear of all liens,
encumbrances, equities or claims, and full right, power and authority to sell,
assign, transfer and deliver such shares to be sold by the Selling Shareholder
under the Underwriting Agreement.
6. The Selling Shareholder is the holder of record of the Shares to be
sold by the Selling Shareholder under the Underwriting Agreement. Assuming that
the Underwriters purchase the Shares that are sold by the Selling Shareholder
pursuant to the Underwriting Agreement, and further assuming that they purchase
such Shares in good faith and without notice of any adverse claim, and that
there are no events or circumstances peculiar to any individual Underwriter
which might result in such a defect, upon the consummation of such purchase, the
Underwriters will acquire good and valid title to such Shares, free and clear of
all liens, encumbrances, equities or claims.
