EARLYBIRDCAPITAL, INC.
000 XXXXXXX XXXXXX
XXXXX 0000
XXX XXXX, XXX XXXX 00000
------------------------------------------------
SELECTED DEALERS AGREEMENT
------------------------------------------------
Dear Sirs:
1. Registration under the Securities Act of 1933, as amended
("Act"), of the 8,500,000 Units* of Ithaka Acquisition Corp. ("Company"), as
more fully described in the Preliminary Prospectus, dated ___________, 2005, and
in the final prospectus ("Prospectus") which will be forwarded to you, will
become effective in the near future. We, as the Underwriters, are offering
certain of the Units for purchase by a selected group of dealers ("Selected
Dealers") on the terms and conditions stated herein.
Authorized Public Offering Price: $6.00 per Unit.
Dealers' Selling Concession: Not to exceed $0.__ per Unit payable
upon termination of this Agreement, except as
provided below. We reserve the right not to
pay such concession on any of the Units
purchased by any of the Selected Dealers from
us and repurchased by us at or below the
price stated above prior to such termination.
Reallowance: You may reallow not in excess of $0.__
per Unit as a selling concession to dealers
who are members in good standing of the
National Association of Securities Dealers,
Inc. ("NASD") or to foreign dealers who are
not eligible for membership in the NASD and
who have agreed (i) not to sell the Units
within the United States of America, its
territories or possessions or to persons who
are citizens thereof or residents therein,
and (ii) to abide by the applicable Conduct
Rules of the NASD.
* Plus the over-allotment option available to the Underwriters to purchase up to
an additional 1,275,000 Units.
1
Delivery and Payment: Delivery of the Units shall be made on or
about ________, 2005 or such later date as we
may advise on not less than one day's notice
to you, at the office of EarlyBirdCapital,
Inc., 000 Xxxxxxx Xxxxxx, Xxxxx 0000, Xxx
Xxxx, Xxx Xxxx 00000 or at such other place
as we shall specify on not less than one
day's notice to you. Payment for the Units is
to be made, against delivery, at the
authorized public offering price stated
above, or, if we shall so advise you, at the
authorized public offering price less the
dealers' selling concession stated above, by
wire transfer in Federal (same day) funds or
by certified or official bank check in New
York Clearing House Funds payable to the
order of EarlyBirdCapital, Inc.
Termination: This Agreement shall terminate at the
close of business on the 45th day following
the effective date of the Registration
Statement (of which the enclosed Prospectus
forms a part), unless extended at our
discretion for a period or periods not to
exceed in the aggregate 30 additional days.
We may terminate this Agreement, whether or
not extended, at any time without notice.
2. Any of the Units purchased by you hereunder are to be
offered by you to the public at the public offering price, except as herein
otherwise provided and except that a reallowance from such public offering price
not in excess of the amount set forth on the first page of this Agreement may be
allowed as consideration for services rendered in distribution to dealers that
(a) are actually engaged in the investment banking or securities business; (b)
execute the written agreement prescribed by Rule 2740 of the NASD Conduct Rules;
and (c) are either members in good standing of the NASD or foreign banks,
dealers or institutions not eligible for membership in the NASD that represent
to you that they will promptly reoffer such Units at the public offering price
and will abide by the conditions with respect to foreign banks, dealers and
institutions set forth in paragraph 9 below.
3. You, by becoming a member of the Selected Dealers, agree
(a) upon effectiveness of the Registration Statement and your receipt of the
Prospectus, to take up and pay for the number of Units allotted and confirmed to
you, (b) not to use any of the Units to reduce or cover any short position you
may have and (c) to make available a copy of the Prospectus to all persons who
on your behalf will solicit orders for the Units prior to the making of such
solicitations by such persons. You are not authorized to give any information or
to make any representations other than those contained in the Prospectus or any
supplements or amendments thereto.
4. We may be authorized to over-allot in arranging sales to
Selected Dealers, to purchase and sell Units, and to stabilize or maintain the
market price of the Units. You agree to advise us at any time and from time to
time upon our request, prior to the termination of this Agreement, of the number
of Units purchased by you remaining unsold by you, and you will, upon our
request at any such time, sell to us, for our account or the account of one or
more of the Underwriters, such amount of such unsold Units as we may designate,
at the public offering price thereof less an amount to be determined by us not
in excess of the concession to dealers. In the event that prior to the later of
(i) the termination of this Agreement or (ii) the covering by us of any short
position created by us in connection with the offering of the Units, for our
account or the account of one or more Underwriters, we purchase or contract to
purchase for our account or the account of any of the Underwriters, in the open
market or otherwise, any Units theretofore delivered to you, we reserve the
right to withhold the above-mentioned concession to dealers on such Units if
sold to you at the public offering price, or if such concession has
2
been allowed to you through your purchase at a net price, you agree to repay
such concession upon our demand, plus, in each case, any taxes on redelivery,
commissions, original issue discount, accrued interest and dividends paid in
connection with such purchase or contract to purchase.
5. As contemplated by Rule 15c2-8 under the Securities
Exchange Act of 1934, as amended, we agree to mail a copy of the Prospectus to
any person making a written request therefor during the period referred to in
the rules and regulations adopted under such Act, the mailing to be made to the
address given in the request. You confirm that you have delivered all
preliminary prospectuses and revised preliminary prospectuses, if any, required
to be delivered under the provisions of Rule 15c2-8 and agree to deliver all
copies of the Prospectus required to be delivered thereunder. We have heretofore
delivered to you such preliminary prospectuses as have been required by you,
receipt of which is hereby acknowledged, and will deliver such further
prospectuses as may be requested by you. You agree to keep an accurate record of
your distribution (including dates, number of copies and persons to whom sent)
of copies of the Prospectus or any preliminary prospectus (or any amendment or
supplement to any thereof), and promptly upon request by us to bring all
subsequent changes to the attention of anyone to whom such material shall have
been furnished. You agree to furnish to persons who receive a confirmation of
sale a copy of the Prospectus filed pursuant to Rule 424(b) or Rule 424(c) under
the Securities Act.
6. You agree that until termination of this Agreement you will
not make purchases or sales of the Units except (a) pursuant to this Agreement,
(b) pursuant to authorization received from us, or (c) in the ordinary course of
business as broker or agent for a customer pursuant to any unsolicited order.
7. Additional copies of the Prospectus and any supplements or
amendments thereto shall be supplied in reasonable quantity upon request.
8. The Units are offered by us for delivery when, as and if
sold to, and accepted by, us and subject to the terms herein and in the
Prospectus or any supplements or amendments thereto, to our right to vary the
concessions and terms of offering after their release for public sale, to
approval of counsel as to legal matters and to withdrawal, cancellation or
modification of the offer without notice.
9. Upon written application to us, you shall be informed as to
the jurisdictions under the securities or blue sky laws of which we believe the
Units are eligible for sale, but we assume no responsibility as to such
eligibility or the right of any member of the Selected Dealers to sell any of
the Units in any jurisdiction. We acknowledge that you have advised us that
sales of the Company's securities cannot be made from the state of New Jersey.
You represent to us that all sales by you of the Company's securities will be
made by your offices outside the state of New Jersey. We have caused to be filed
a Further State Notice relating to such of the Units to be offered to the public
in New York in the form required by, and pursuant to, the provisions of Article
23A of the General Business Law of the State of New York. Upon the completion of
the public offering contemplated herein, each member of the Selected Dealers
agrees to promptly furnish to us, upon our request, territorial distribution
reports setting forth each jurisdiction in which sales of the Units were made by
such member, the number of Units sold in such jurisdiction, and any further
information as we may request, in order to permit us to file on a timely basis
any report that we as the Underwriters of the offering or manager of the
Selected Dealers may be required to file pursuant to the securities or blue sky
laws of any jurisdiction.
10. You, by becoming a member of the Selected Dealers,
represent that you are actually engaged in the investment banking or securities
business and that you are (a) a member in good standing of the NASD and will
comply with all applicable rules of the NASD, including but not limited to NASD
Conduct Rule 2740, or (b) a foreign dealer or institution that is not eligible
for membership in the NASD and that has agreed (i) not to sell Units within the
United States of America, its territories or
3
possessions or to persons who are citizens thereof or residents therein; (ii)
that any and all sales shall be in compliance with Rule 2790 of the NASD's
Conduct Rules; (iii) to comply, as though it were a member of the NASD, with
Rules 2730, 2740 and 2750 of the NASD's Conduct Rules, and to comply with Rule
2420 thereof as that Rule applies to a non-member broker or dealer in a foreign
country. You represent that neither you nor any of your directors, officers,
partners, or persons associated with you (as defined in the By-Laws of the NASD)
nor, to your knowledge, any "related person" (as defined by the NASD in its
Interpretation Relating to Review of Corporate Financing, which term includes
counsel, financial consultants and advisors, finders, members of the selling or
distribution groups, and any other persons associated with or related to any of
the foregoing) or any other broker-dealer has had, within the last twelve
months, any dealings with the Company or any controlling shareholders thereof
(other than relating to this Agreement) as to which documents or information are
required to be filed with the NASD pursuant to its Interpretation Relating to
Review of Corporate Financing.
11. You are not authorized to act as agent for any Underwriter
or the Company in offering the Units to the public otherwise. Neither we not any
Underwriter shall be under any obligation to you except as specifically set
forth herein. Nothing herein shall constitute any members of the Selected
Dealers partners with us or with each other, but you agree, notwithstanding any
prior settlement of accounts or termination of this Agreement, to bear your
proper proportion of any tax or other liability based upon the claim that the
Selected Dealers constitute a partnership, association, unincorporated business
or other separate entity and a like share of any expenses of resisting any such
claim.
12. EarlyBirdCapital, Inc. shall be the Managing Underwriter
of the offering and manager of the Selected Dealers and shall have full
authority to take such action as we may deem advisable in respect of all matters
pertaining to the offering or the Selected Dealers or any members of them.
Except as expressly stated herein, or as may arise under the Act, we shall be
under no liability to any member of the Selected Dealers as such for, or in
respect of (i) the validity or value of the Units (ii) the form of, or the
statements contained in, the Prospectus, the Registration Statement of which the
Prospectus forms a part, any supplements or amendments to the Prospectus or such
Registration Statement, any preliminary prospectus, any instruments executed by,
or obtained or any supplemental sales data or other letters from, the Company,
or others, (iii) the form or validity of the Underwriting Agreement or this
Agreement, (iv) the eligibility of any of the Units for sale under the laws of
any jurisdiction, (v) the delivery of the Units, (vi) the performance by the
Company, or others of any agreement on its or their part, or (vii) any matter in
connection with any of the foregoing, except our own want of good faith.
13. If for federal income tax purposes the Selected Dealers,
among themselves or with the Underwriters, should be deemed to constitute a
partnership, then we elect to be excluded from the application of Subchapter K,
Chapter 1, Subtitle A of the Internal Revenue Code of 1986, as amended, and we
agree not to take any position inconsistent with such selection. We authorize
you, in your discretion, to execute and file on our behalf such evidence of such
election as may be required by the Internal Revenue Service.
14. All communications from you shall be addressed to
EarlyBirdCapital, Inc. at 000 Xxxxxxx Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx
00000, Attention: Xxxxx X. Xxxxxxxx, Chairman. Any notice from us to you shall
be deemed to have been fully authorized by the Underwriters and to have been
duly given if mailed, telegraphed or sent by confirmed facsimile transmittal to
you at the address to which this letter is mailed. This Agreement shall be
construed in accordance with the laws of the State of New York without giving
effect to conflict of laws. Time is of the essence in this Agreement.
If you desire to become a member of the Selected Dealers,
please advise us to that effect immediately by facsimile transmission and sign
and return to us the enclosed counterpart of this letter.
4
Very truly yours,
EARLYBIRDCAPITAL, INC.
As representative of the Underwriters
By:________________________________
Xxxxxx Xxxxxx
Managing Director
We accept membership in the Selected Dealers on the terms
specified above.
Dated: ___________ __, 2005
(Selected Dealer)
------------------------------------------
By:_______________________________________
Name:
Title:
5
