Exhibit H.2
MASTER SELECTED DEALER AGREEMENT
__, 2001
UBS Warburg LLC
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Gentlemen:
1. General. We understand that UBS Warburg LLC ("UBS Warburg") is
entering into this Agreement with us and other firms who may be offered the
right to purchase as principal a portion of securities being distributed to the
public. The terms and conditions of this Agreement shall be applicable to any
public offering of securities ("Securities") wherein UBS Warburg (acting for its
own account or for the account of any underwriting or similar group or
syndicate) is responsible for managing or other wise implementing the sale of
the Securities to selected dealers ("Selected Dealers") and has expressly
informed us that such terms and conditions shall be applicable. Any such
offering of Securities to us as a Selected Dealer is hereinafter called an
"Offering." In the case of any Offering in which you are acting for the account
of any underwriting or similar group or syndicate ("Un derwriters"), the terms
and conditions of this Agreement shall be for the benefit of, and binding upon,
such Underwriters, including, in the case of any Offering in which you are
acting with others as representatives of Underwriters, such other
representatives. The term "preliminary prospectus" means, in the case of an
Offer ing registered under the Securities Act of 1933 (the "Securities Act"),
any preliminary prospectus relating to an Offering of Securities or any
preliminary prospectus supplement together with a prospectus relating to an
Offering of Securities and, in the case of an Offering not registered under the
Securities Act, any preliminary offering circular relating to an Offering of
Securities or any preliminary offering circular supplement together with an
offering circular relating to an Offering of Securities; the term "Prospectus"
means, in the case of an Offering registered under the Securities Act of 1933
(the "Securities Act"), the prospectus, together with the final prospectus
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supplement, if any, relating to such Offering of Securities, filed pursuant to
Rule 424(b) or Rule 424(c) under the Securities Act and, in the case of an
Offering not registered under the Securities Act, the final offering circular,
including any supplements, relating to such Offering of Securities.
2. Conditions of Offering; Acceptance and Pur chase. Any Offering will
be subject to delivery of the Securities and their acceptance by you and any
other Underwriters, may be subject to the approval of all legal matters by
counsel and the satisfaction of other condi tions, and may be made on the basis
of reservation of Securities or an allotment against subscription. You will
advise us by telegram, telex or other form of writ ten communication ("Written
Communication") of the par ticular method and supplementary terms and conditions
(including, without limitation, the information as to prices and offering date
referred to in Section 3(b)) of any Offering in which we are invited to
participate. To the extent such supplementary terms and conditions are
inconsistent with any provision herein, such terms and conditions shall
supersede any such provision. Unless otherwise indicated in any such Written
Communication, acceptances and other communications by us with respect to any
Offering should be sent to UBS Warbrug LLC, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000. You reserve the right to reject any acceptance in whole or in part.
Payment for Securities purchased by us is to be made at such office as you may
designate, at the public offering price, or, if you shall so advise us, at such
price less the concession to dealers or at the price set forth or indicated in a
Written Communication, on such date as you shall determine, on one day's prior
notice to us, by certified or official bank check in New York Clearing House
funds payable to the order of PaineWebber Incorpo rated, against delivery of
certificates evidencing such Securities. If payment is made for Securities
purchased by us at the public offering price, the concession to which we shall
be entitled will be paid to us upon termi nation of the provisions of Section
3(b) with respect to such Securities.
Unless we promptly give you written instructions otherwise, if transactions
in the Securities may be settled through the facilities of The Depository Trust
Company, payment for and delivery of Securities purchased by us will be made
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through such facilities if we are a member, or if we are not a member,
settlement may be made through our ordinary correspondent who is a member.
3. Representations, Warranties and Agreements. (a) Prospectuses. You
shall provide us with such number of copies of each preliminary prospectus, the
Prospectus and any supplement thereto relating to each Offering as we may
reasonably request. If the Securities will be registered under the Securities
Act, we represent that we are familiar with Rule 15c2-8 under the Exchange Act
relating to the distribution of preliminary and final prospectuses and agree
that we will comply therewith; we agree to keep an accurate record of our
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 you, to bring all
subsequent changes to the attention of anyone to whom such material shall have
been furnished, and we 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. If the Securities will not be registered under the
Securities Act, we agree that we will deliver all preliminary and final offering
circulars required for compliance with the applicable laws and regulations
governing the use and distribution of offering circulars by underwriters, and,
to the extent consistent with such laws and regulations, we confirm that we have
delivered and agree that we will deliver all preliminary and final offering
circulars which would be required if the provisions of Rule 15c2-8 under the
Exchange Act applied to this offering. We agree that in purchasing Securities
in an Offering we will rely upon no statements whatsoever, written or oral,
other than the statements in the Prospectus delivered to us by you. We will not
be authorized by the issuer or other seller of Securities offered pursuant to a
Prospectus or by any Underwriters to give any information or to make any
representation not contained in the Prospectus in connec tion with the sale of
such Securities.
(b) Offer and Sale to the Public. With re spect to any Offering of
Securities, you will inform us by a Written Communication of the public offering
price, the selling concession, the reallowance (if any) to dealers and the time
when we may commence selling Securi ties to the public. After such public
offering has commenced, you may change the public offering price, the selling
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concession and the reallowance to dealers. With respect to each Offering of
Securities, until the provi sions of this Section 3(b) shall be terminated
pursuant to Section 4, we agree to offer Securities to the public only at the
public offering price, except that if a reallowance is in effect, a reallowance
from the public offering price not in excess of such reallowance may be allowed
as consideration for services rendered in distri bution to dealers who are
actually engaged in the invest ment banking or securities business, who execute
the written agreement prescribed by Section 24(c) of Article III of the Rules of
Fair Practice of the National Association of Securities Dealers, Inc. (the
"NASD"), and who are either members in good standing of the NASD or foreign
brokers or dealers not eligible for membership in the NASD who represent to us
that they will promptly reoffer such Securities at the public offering price and
will abide by the conditions with respect to foreign brokers and dealers set
forth in Section 3(e).
(c) Stabilization and Over-Allotment. You may, with respect to any
Offering, be authorized to over-allot in arranging sales to Selected Dealers, to
purchase and sell Securities, any other securities of the issuer of the
Securities of the same class and series and any other securities of such issuer
that you may designate for long or short account and to stabilize or maintain
the market price of the Securities. We agree to advise you from time to time
upon request, prior to the termina tion of the provisions of Section 3(b) with
respect to any Offering, of the amount of Securities purchased by us hereunder
remaining unsold and we will, upon your re quest, sell to you, for the accounts
of the Underwriters, such amount of Securities as you may designate, at the
public offering price thereof less an amount to be deter mined by you not in
excess of the concession to dealers. In the event that prior to the later of (i)
the termina tion of the provisions of Section 3(b) with respect to any Offering,
or (ii) the covering by you of any short position created by you in connection
with such Offering for your account or the account of one or more Underwrit ers,
you purchase or contract to purchase for the account of any of the Underwriters,
in the open market or other wise, any Securities theretofore delivered to us,
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you reserve the right to withhold the above-mentioned conces sion to dealers on
such Securities if sold to us at the public offering price, or if such
concession has been allowed to us through our purchase at a net price, we agree
to repay such concession upon your demand, plus in each case any taxes on
redelivery, commissions, accrued interest and dividends paid in connection with
such purchase or contract to purchase.
(d) Open Market Transactions. We agree not to bid for, purchase,
attempt to purchase, or sell, directly or indirectly, any Securities, any other
securities of the issuer of the Securities of the same class and series or any
other securities of such issuer as you may desig nate, except as brokers
pursuant to unsolicited orders and as otherwise provided in this Agreement. If
the Securities are common stock or securities convertible into common stock, we
agree not to effect, or attempt to induce others to effect, directly or
indirectly, any transactions in or relating to put or call options on any stock
of such issuer, except to the extent permitted by Rule 10b-6 under the Exchange
Act as interpreted by the Securities and Exchange Commission. An opening
uncovered writing transaction in options to acquire Securities for our account
or for the account of any customer shall be deemed, for purposes of the
preceding sentence, to be a transaction effected by us in or relating to put or
call options on stock of the Company not permitted by Rule 10b-6. The term
"opening uncovered writing transaction" means an opening sale transaction where
the seller in tends to become a writer of an option to purchase stock which it
does not own or have the right to acquire upon exercise of conversion or option
rights.
(e) NASD. We represent that we are actually engaged in the investment
banking or securities business and we are either a member in good standing of
the NASD, or, if not such a member, a foreign dealer not eligible for
membership. If we are such a member we agreed that in making sales of the
Securities we will comply with all applicable rules of the NASD, including,
without limita tion, the NASD's Interpretation with Respect to Free-Riding and
Withholding and Section 24 of Article III of the Rules of Fair Practice. If we
are such a foreign dealer, we agree not to offer or sell any Securities in the
United States of America except through you and in making sales of Securities
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outside the United States of America, we agree to comply, as though we were a
member with such Interpretation and Sections 8, 24 and 36 of Article III of the
NASD's Rules of Fair Practice and to comply with Section 23 of such Article III
as it applies to a nonmember broker or dealer in a foreign country.
(f) Relationship among Underwriters and Se lected Dealers. You may
buy Securities from or sell Securities to any Underwriter or Selected Dealer
and, with your consent, the Underwriters (if any) and the Selected Dealers may
purchase Securities from and sell Securities to each other at the public
offering price less all or any part of the concession. We are not authorized to
act as agent for you or any Underwriter or the issuer or other seller of any
Securities in offering Securities to the public or otherwise. Nothing contained
herein or in any Written Communication from you shall constitute the Selected
Dealers partners with you or any Underwriter or with one another. Neither you
nor any Underwriter shall be under any obligation to us except for obligations
assumed hereby or in any Written Communi cation from you in connection with any
Offering. In connection with any Offering, we agree to pay our propor tionate
share of any claim, demand or liability asserted against us, and the other
Selected Dealers or any of them, or against you or the Underwriters, if any,
based on any claim that such Selected Dealers or any of them constitute an
association, unincorporated business or other separate entity, including in each
case our propor tionate share of any expense incurred in defending against any
such claim, demand or liability.
(g) Blue Sky Laws. Upon application to you, you will inform us as to
the jurisdictions in which you believe the Securities have been qualified for
sale under the respective securities of "blue sky" laws of such jurisdictions.
We understand and agree that compliance with the securities or "blue sky" laws
in each jurisdic tion in which we shall offer or sell any of the Securi ties
shall be our sole responsibility and that you assume no responsibility or
obligations as to the eligibility of the Securities for sale or our right to
sell the Securi ties in any jurisdiction.
(h) Compliance with Law. We agree that in selling Securities pursuant
to any Offering (which agree ment shall also be for the benefit of the issuer or
other seller of such Securities) we will comply with the appli cable provisions
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of the Securities Act and the Exchange Act, the applicable rules and regulations
of the Securi ties and Exchange Commission thereunder, the applicable rules and
regulations of the NASD and the applicable rules and regulations of any
securities exchange having jurisdiction over the Offering. You shall have full
authority to take such action as you may deem advisable in respect of all
matters pertaining to any Offering. Neither you nor any Underwriter shall be
under any lia bility to us, except for lack of good faith and for obligations
expressly assumed by you in this Agreement; provided, however, that nothing in
this sentence shall be deemed to relieve you from any liability imposed by the
Securities Act.
4. Termination; Supplements and Amendments. This agreement may be
terminated by either party herein upon five business days' written notice to the
other party; provided that with respect to any Offering for which a Written
Communication was sent and accepted prior to such notice, this Agreement as it
applies to such Offering shall remain in full force and effect and shall
terminate with respect to such Offering in accordance with the last sentence of
this Section. This Agreement may be supple mented or amended by you by written
notice thereof to us, and any such supplement or amendment to this Agreement
shall be effective with respect to any Offering to which this Agreement applies
after the date of such supplement or amendment. Each reference to "this
Agreement" herein shall, as appropriate, be to this Agreement as so amended and
supplemented. The terms and conditions set forth in Sections 3(b) and (d) with
regard to any Offering will terminate at the close of business on the thirtieth
day after the date of the initial public offering of the Securities to which
such Offering relates, but such terms and conditions, upon notice to us, may be
terminated by you at any time.
5. Successors and Assigns. This Agreement shall be binding on, and inure
to the benefit of, the parties hereto and other persons specified or indicated
in Sec tion 1, and the respective successors and assigns of each of them.
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6. Governing Law. This Agreement and the terms and conditions set forth
herein with respect to any Offering together with such supplementary terms and
conditions with respect to such Offering as may be con tained in any Written
Communication from you to us in connection therewith shall be governed by, and
construed in accordance with, the laws of the State of New York.
By signing this Agreement we confirm that our sub scription to, or our
acceptance of any reservation of, any Securities pursuant to an Offering shall
constitute (i) acceptance of and agreement to other terms and condi tions of
this Agreement (as supplemented and amended pursuant to Section 4) together with
the subject to any supplementary terms and conditions contained in any Written
Communication from you in connection with such Offering, all of which shall
constitute a binding agree ment between us and you, individually or as
representa tive of any Underwriters, (ii) confirmation that our representations
and warranties set forth in Section 3 are true and correct at that time and
(iii) confirmation that our agreements set forth in Sections 2 and 3 have been
and will be fully performed by us to the extent and at the times required
thereby.
Very truly yours,
---------------------------
(Name of Firm)
By_________________________
Title______________________
Confirmed, as of the date
first above written.
UBS Warburg LLC
By_______________________
Title: Vice President
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