Shares VOCUS, INC. COMMON STOCK UNDERWRITING AGREEMENT Dated April , 2007
TABLE OF CONTENTS
Page | ||||||||
1. | Representations and Warranties of the Company and Certain of the Selling Stockholders | 2 | ||||||
1.1 | Effective Registration Statement | 3 | ||||||
1.2 | Contents of Registration Statement | 3 | ||||||
1.3 | Due Incorporation | 4 | ||||||
1.4 | Subsidiaries | 4 | ||||||
1.5 | Underwriting Agreement | 5 | ||||||
1.6 | Description of Capital Stock | 5 | ||||||
1.7 | Outstanding Securities | 5 | ||||||
1.8 | Validly Issued Shares | 5 | ||||||
1.9 | Nasdaq; Exchange Act Registration | 5 | ||||||
1.10 | No Conflict | 6 | ||||||
1.11 | No Material Adverse Effect | 6 | ||||||
1.12 | Legal Proceedings; Statutes and Regulations | 6 | ||||||
1.13 | Contracts | 6 | ||||||
1.14 | Related Party Transactions | 6 | ||||||
1.15 | Compliance with Securities Act | 6 | ||||||
1.16 | Not an Investment Company | 6 | ||||||
1.17 | No Violation | 7 | ||||||
1.18 | Compliance with Environmental Laws | 7 | ||||||
1.19 | No Environmental Costs | 7 | ||||||
1.20 | No Registration Rights | 7 | ||||||
1.21 | Absence of Material Charges | 7 | ||||||
1.22 | Good Title to Properties | 7 | ||||||
1.23 | Intellectual Property Rights | 8 | ||||||
1.24 | No Labor Disputes | 8 | ||||||
1.25 | Insurance | 8 | ||||||
1.26 | No Price Stabilization or Manipulation | 8 | ||||||
1.27 | Governmental Permits | 9 | ||||||
1.28 | Financial Statements | 9 | ||||||
1.29 | Contributions, Gifts and Other Payments | 9 | ||||||
1.30 | Audit Committee | 9 | ||||||
1.31 | Controls and Procedures | 10 | ||||||
1.32 | Xxxxxxxx-Xxxxx Act | 10 | ||||||
1.33 | Auditor Independence | 10 | ||||||
1.34 | Taxes | 10 | ||||||
1.35 | Brokers Fees | 10 | ||||||
1.37 | Books and Records | 11 | ||||||
1.38 | Company Not Ineligible Issuer | 11 | ||||||
1.39 | Permitted Free Writing Prospectuses | 11 | ||||||
1.40 | No Issuer Free Writing Prospectuses | 11 | ||||||
2. | Representations and Warranties of the Selling Stockholders | 11 | ||||||
2.1 | Due Authorization | 11 |
Page | ||||||||
2.2 | Selling Stockholder Documents | 12 | ||||||
2.3 | No Conflict | 12 | ||||||
2.4 | Validly Issued Shares | 12 | ||||||
2.5 | Good Title to Shares | 12 | ||||||
2.6 | Delivery of Common Shares | 12 | ||||||
2.7 | No Registration Rights | 12 | ||||||
2.8 | No Price Stabilization or Manipulation | 12 | ||||||
2.9 | No Free Writing Prospectuses | 12 | ||||||
2.10 | Disclosure Made by Selling Stockholders | 13 | ||||||
3. | Purchase and Sale Agreements | 13 | ||||||
3.1 | Firm Shares | 13 | ||||||
3.2 | Additional Shares | 13 | ||||||
3.3 | Market Standoff Provision | 13 | ||||||
3.4 | Terms of Public Offering | 14 | ||||||
4. | Payment and Delivery | 15 | ||||||
4.1 | Firm Shares | 15 | ||||||
4.2 | Additional Shares | 15 | ||||||
4.3 | Delivery of Certificates | 15 | ||||||
5. | Covenants of the Company | 15 | ||||||
5.1 | Furnish Copies of Registration Statement and Prospectus | 15 | ||||||
5.2 | Notification of Amendments or Supplements | 15 | ||||||
5.3 | Filings of Amendments or Supplements | 16 | ||||||
5.4 | Blue Sky Laws | 16 | ||||||
5.5 | Use of Proceeds | 16 | ||||||
5.6 | Transfer Agent | 16 | ||||||
5.7 | Reporting Obligations; Exchange Act Compliance | 16 | ||||||
5.8 | Public Communications | 16 | ||||||
6. | Conditions to the Underwriters’ Obligations | 16 | ||||||
6.1 | Effective Registration Statement | 17 | ||||||
6.2 | Rule 462(b) Registration Statement | 17 | ||||||
6.3 | Representations and Warranties | 17 | ||||||
6.4 | Prospectus Filed with Commission | 17 | ||||||
6.5 | No Stop Order | 17 | ||||||
6.6 | Nasdaq | 17 | ||||||
6.7 | No NASD Objection | 17 | ||||||
6.8 | No Material Adverse Effect | 17 | ||||||
6.9 | Officer's Certificate | 17 | ||||||
6.10 | Opinion of Company Counsel | 18 | ||||||
6.11 | Opinion of Selling Stockholders Counsel | 18 | ||||||
6.12 | Opinion of Underwriters Counsel | 18 | ||||||
6.13 | Accountant's Comfort Letter | 18 | ||||||
6.14 | Lock-Up Agreements | 18 | ||||||
6.15 | Selling Stockholders Certificate | 18 | ||||||
6.16 | Selling Stockholder Documents | 19 |
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Page | ||||||||
6.17 | Additional Documents | 19 | ||||||
6.18 | Legal Matters | 19 | ||||||
7. | Expenses | 19 | ||||||
8. | Indemnity and Contribution | 20 | ||||||
8.1 | Indemnification of the Underwriters | 20 | ||||||
8.2 | Indemnification of Company by the Selling Stockholders | 20 | ||||||
8.3 | Indemnification of Underwriters by Selling Stockholders | 21 | ||||||
8.4 | Indemnification by the Underwriters | 21 | ||||||
8.5 | Indemnification Procedures | 21 | ||||||
8.6 | Limitation of Selling Stockholder Liability | 22 | ||||||
8.7 | Contribution Agreement | 22 | ||||||
8.8 | Contribution Amounts | 23 | ||||||
8.9 | Survival of Provisions | 23 | ||||||
9. | Effectiveness | 23 | ||||||
10. | Termination | 24 | ||||||
11. | Defaulting Underwriters | 24 | ||||||
12. | Counterparts | 25 | ||||||
13. | Headings; Table of Contents | 25 | ||||||
14. | Notices | 25 | ||||||
15. | Successors | 26 | ||||||
16. | Partial Unenforceability | 26 | ||||||
17. | Governing Law | 26 | ||||||
18. | Consent to Jurisdiction | 26 | ||||||
19. | Failure of the Selling Stockholders to Sell and Deliver Shares | 27 | ||||||
20. | Entire Agreement | 27 | ||||||
21. | Amendments | 27 | ||||||
22. | Sophisticated Parties | 27 |
Schedules
A
|
List of Underwriters | |
B
|
List of Firm Share Selling Stockholders | |
C
|
List of Additional Share Selling Stockholders | |
D
|
List of Issuer Free Writing Prospectus | |
E
|
List of Executive Selling Stockholders |
iii
Exhibits
A
|
Form of Legal Opinion of Company Counsel | |
B-1
|
Form of Legal Opinion of Executive Selling Stockholders and Employee Selling Stockholders Counsel | |
B-2
|
Form of Legal Opinion of Lazard Selling Stockholder Counsel | |
B-3
|
Form of Legal Opinion of Sterling Selling Stockholder Counsel | |
B-4
|
Form of Legal Opinion of Edison Selling Stockholder Counsel | |
C
|
Form of Lock-Up Agreement |
iv
April ______, 2007
Xxxxxx Xxxxxx Partners LLC
RBC Capital Markets Corporation
Wachovia Capital Markets, LLC
Xxxxxxx Xxxxx & Company, L.L.C.
Canaccord Xxxxx Inc.
Pacific Crest Securities Inc.
As Representatives of the several Underwriters
c/o Thomas Xxxxxx Partners LLC
Xxx Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
RBC Capital Markets Corporation
Wachovia Capital Markets, LLC
Xxxxxxx Xxxxx & Company, L.L.C.
Canaccord Xxxxx Inc.
Pacific Crest Securities Inc.
As Representatives of the several Underwriters
c/o Thomas Xxxxxx Partners LLC
Xxx Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Ladies and Gentlemen:
Introduction. Vocus, Inc., a Delaware corporation (the “Company”), proposes to issue and
sell to the several underwriters named in Schedule A hereto (the “Underwriters”), and
certain stockholders of the Company named in Schedule B hereto (the “Firm Share Selling
Stockholders”) severally propose to sell to the several Underwriters, an aggregate of ___
shares of the common stock, $0.01 par value per share, of the Company (the “Firm Shares”), of which
1,217,137 shares are to be issued and sold by the Company and ___shares are to be sold by
the Firm Share Selling Stockholders, with each Firm Share Selling Stockholder selling the number of
shares set forth opposite such Firm Share Selling Stockholder’s name in Schedule B hereto.
The Selling Stockholders named in Schedule C hereto (the “Additional Share Selling
Stockholders”) severally propose to sell to the several Underwriters an aggregate of ___shares
of the common stock, $0.01 par value per share of the Company (the “Additional Shares”), with each
Additional Share Selling Stockholder selling the number of shares set forth opposite such
Additional Share Selling Stockholder’s name in Schedule C hereto, if and to the extent that
you shall have determined to exercise, on behalf of the Underwriters, the right to purchase such
shares of common stock granted to the Underwriters in Section 3 hereof. In the event the
Underwriters have determined to exercise only a portion of the Additional Shares set forth in
Section 3 hereof, such portion of the Additional Shares shall be allocated among the Additional
Share Selling Stockholders on a pro rata basis based on the maximum number of shares proposed to be
sold by such Additional Share Selling Stockholder set forth opposite such Additional Share Selling
Stockholder’s name in Schedule C hereto. The Firm Shares and the Additional Shares are
hereinafter collectively referred to as the “Shares”. The Firm Share Selling Stockholders and the
Additional Share Selling Stockholders are hereinafter collectively referred to as the “Selling
Stockholders”. The shares of common stock, $0.01 par value per share, of the Company to be
outstanding after giving effect to the sales contemplated hereby are hereinafter referred to as the
"Common Stock”. The Company and the Selling Stockholders are hereinafter sometimes collectively
referred to as the “Sellers”. Xxxxxx Xxxxxx Partners LLC, RBC Capital Markets Corporation,
Wachovia Capital Markets, LLC, Xxxxxxx Xxxxx & Company, L.L.C., Canaccord Xxxxx Inc. and Pacific
Crest Securities Inc. have agreed to act
as representatives of the
several Underwriters (in such capacity, the “Representatives”) in
connection with the offering and sale of the Shares.
The Company has prepared and filed with the Securities and Exchange Commission (the “Commission”),
in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”),
and the applicable rules and regulations thereunder, a registration statement on Form S-3 (file no.
333 — 141050), including a prospectus, relating to the Shares. The term “Registration Statement”
as used herein means the registration statement (including all financial schedules and exhibits) as
amended at the time it becomes effective or, if the registration statement became effective prior
to the execution of this Agreement, as supplemented or amended prior to the execution of this
Agreement and includes information (if any) contained in the final prospectus filed with the
Commission pursuant to Rule 424(b) of the rules under the Securities Act and deemed to be part
thereof at the time of effectiveness pursuant to Rule 430A of the rules under the Securities Act.
If it is contemplated, at the time this Agreement is executed, that a post-effective amendment to
the Registration Statement will be filed and must be declared effective before the offering of the
Shares may commence, the term “Registration Statement” as used herein shall mean the Registration
Statement as amended by such post-effective amendment. If the Company has filed or files on or
after the date of this Agreement a registration statement to register additional shares of Common
Stock pursuant to Rule 462(b) under the Securities Act (the “Rule 462(b) Registration Statement”),
then any reference herein to the term “Registration Statement” shall be deemed to include such Rule
462(b) Registration Statement. Any preliminary prospectus included in the Registration Statement
or filed with the Commission pursuant to Rule 424(a) of the rules and regulations of the Commission
under the Securities Act is hereinafter called a “Preliminary Prospectus”. The term “Statutory
Prospectus” shall mean any Preliminary Prospectus, as amended or supplemented, relating to the
Shares that is included in the Registration Statement immediately prior to the Initial Sale Time
(as defined herein), including any document incorporated by reference therein. The term
“Prospectus” shall mean the final prospectus relating to the Shares that is first filed pursuant to
Rule 424(b) after the effective date of the Registration Statement (the “Effective Date”) or, if no
filing pursuant to Rule 424(b) is required, shall mean the form of final prospectus relating to the
Shares included in the Registration Statement at the Effective Date. The term “Issuer Free Writing
Prospectus” shall have the meaning ascribed to it in Rule 433 under the Securities Act relating to
the Shares, in the form filed or required to be filed with the Commission or, if not required to be
filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities
Act. The term “Disclosure Package” shall mean (i) the Statutory Prospectus, (ii) the Issuer Free
Writing Prospectus, if any, identified in Schedule D hereto and (iii) any other free
writing prospectus defined in Rule 405 of the Securities Act that are required to be filed by the
Company with the Commission or retained by the Company under Rule 433 of the Securities Act and
that the parties hereto expressly agree to treat as part of the Disclosure Package (the “Other Free
Writing Prospectus”). For purposes of this Agreement, the “Initial Sale Time” shall mean 6:00 p.m.
(Eastern Standard Time) on the date of this Agreement. All references in this Agreement to the
Registration Statement, the Rule 462(b) Registration Statement, a Preliminary Prospectus, the
Statutory Prospectus, the Prospectus, the Issuer Free Writing Prospectus, the Other Free Writing
Prospectus or any amendments or supplements to any of the foregoing, shall include any copy thereof
filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System
(“XXXXX”).
Any reference to the Registration Statement, any Preliminary Prospectus, the Statutory Prospectus
or the Prospectus shall be deemed to refer to and include any documents incorporated by reference
therein pursuant to Form S-3 under the Securities Act as of the date of such Registration
Statement, Preliminary Prospectus, Statutory Prospectus or the Prospectus, as the case may be. Any
reference to any amendment or supplement to any Preliminary Prospectus, Statutory Prospectus or the
Prospectus shall be deemed to refer to and include any document filed under the Securities Exchange
Act of 1934, as amended (the “Exchange
2
Act”), after the date of such Preliminary Prospectus,
Statutory Prospectus or the Prospectus, as the case may be, and before the date of such amendment
or supplement and incorporated by reference in such Preliminary Prospectus, Statutory Prospectus or
the Prospectus, as the case may be; and any reference to any amendment to the Registration
Statement shall be deemed to include any periodic or current report of the Company filed with the
Commission pursuant to Section 13(a) or 15(d) of the Exchange Act after the Effective Date and
before the date of such amendment and incorporated by reference in the Registration Statement.
1. Representations and Warranties of the Company and Certain of the Selling
Stockholders. The Company and each of the Selling Stockholders listed on Schedule E
(the “Executive Selling Stockholders”) jointly and severally represent and warrant to and agree
with each of the Underwriters that:
1.1 Effective Registration Statement. Based on advice from the Commission, the
Registration Statement has become effective; no stop order suspending the effectiveness of the
Registration Statement is in effect, and no proceedings for such purpose are pending before or, to
the knowledge of the Company, threatened by the Commission.
1.2 Contents of Registration Statement
(A). (i) The Registration Statement, when it became effective, did not contain and, as
amended or supplemented, if applicable, will not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) the Registration Statement, the Statutory Prospectus and the
Prospectus, comply and, as amended or supplemented, if applicable, will comply in all material
respects with the Securities Act and the applicable rules and regulations of the Commission
thereunder, (iii) the Statutory Prospectus and the Prospectus do not contain and, as amended or
supplemented, if applicable, will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, except that the representations and warranties set
forth in this paragraph do not apply to statements or omissions in the Registration Statement, the
Statutory Prospectus or the Prospectus based upon information relating to any Underwriter set forth
in the section of the Registration Statement, the Statutory Prospectus or the Prospectus captioned
“Underwriting” that was furnished to the Company in writing by such Underwriter through you
expressly for use therein, and (iv) the statistical and market-related data included or
incorporated by reference in the Registration Statement, Statutory Prospectus and the Prospectus
are based on or derived from sources that the Company believes to be reliable and accurate. With
respect to the exception set forth in clause (iii), the Company acknowledges that the only
information furnished in writing by the Underwriters for use in the Registration Statement,
Statutory Prospectus or the Prospectus, as the case may be, is the statements specifically relating
to (a) the aggregate number of Firm Shares that the Underwriters have severally agreed to purchase
contained in the first paragraph under the section captioned “Underwriting” in the Registration
Statement and the Prospectus, (b) the concession and reallowance figures contained in the paragraph
captioned “Commissions and Discounts” under the section caption “Underwriting” in the Registration
Statement and the Prospectus, and (c) stabilizing and passive market making activities under the
paragraph captioned “Short Sales, Stabilizing Transactions and Penalty Bids” under the section
captioned “Underwriting” in the Registration Statement, Statutory Prospectus and the Prospectus.
(B). As of the Initial Sale Time, the Disclosure Package did not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading. The preceding sentence
does not apply to statements in or omissions from the Disclosure Package based upon and in
conformity with written
3
information furnished to the Company by any Underwriter through the
Representatives specifically for use therein, it being understood and agreed that the only such
information furnished by and Underwriter consists of the information described as such in Section
1.2(A) hereof. No statement of material fact included in the Prospectus has been omitted from the
Disclosure Package available at the Initial Sale Time and no statement of material fact included in
the Disclosure Package available at the Initial Sale Time that is required to be included in the
Prospectus has been omitted therefrom.
(C). Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times
through the completion of the public offer and sale of the Shares or until any earlier date of
which the Company notified or notifies the Representatives as described in the next sentence, did
not, does not and will not include any information that conflicted, conflicts or will conflict with
the information contained in the Registration Statement, Statutory Prospectus or Prospectus,
including any document incorporated by reference therein that has not been superseded or modified.
If at any time following issuance of an Issuer Free Writing Prospectus, there occurred or occurs an
event or development as a result of which such Issuer Free Writing Prospectus conflicted or would
conflict with the information then contained or incorporated by
reference in the Registration Statement, Statutory Prospectus or Prospectus, or included or would
include an untrue statement of a material fact or omitted or would omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances prevailing at
that subsequent time, not misleading, (i) the Company has promptly notified or will promptly notify
the Representatives and (ii) the Company has promptly amended or will promptly amend or supplement
such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or
omission. The foregoing sentences do not apply to statements in or omissions from any Issuer Free
Writing Prospectus based upon and in conformity with written information furnished to the Company
by any Underwriter through the Representatives specifically for use therein, it being understood
and agreed that the only such information furnished by any Underwriter consists of the information
described as such in Section 1.2(A) hereof.
(D). The documents incorporated by reference in the Registration Statement, any Preliminary
Prospectus, Statutory Prospectus or the Prospectus, when filed with the Commission, as of the
Initial Sales Time, on the Closing Date and Option Closing Date (as each term is defined below),
conformed and will conform in all material respects to the requirements of the Exchange Act and the
rules and regulations of the Commission thereunder. Any further documents filed with the
Commission and incorporated by reference in the Registration Statement, any Preliminary Prospectus,
Statutory Prospectus or the Prospectus, when filed with the Commission, as of the Initial Sales
Time, on the Closing Date and Option Closing Date, conformed and will conform in all material
respects to the requirements of the Exchange Act and the rules and regulations of the Commission
thereunder.
(E). The documents incorporated by reference in the Registration Statement, any Preliminary
Prospectus, Statutory Prospectus or the Prospectus did not, and any further documents filed and
incorporated by reference therein will not, when filed with the Commission, as of the Initial Sales
Time, on the Closing Date and Option Closing Date, contain an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
1.3 Due Incorporation. The Company has been duly incorporated, is validly existing as
a corporation in good standing under the laws of the State of Delaware, has the corporate power and
authority to own its property and to conduct its business as described in the Registration
Statement, the Disclosure Package and the Prospectus and is duly qualified to transact business and
is in good standing in each jurisdiction in which the conduct of its business or its ownership or
leasing of property requires such
4
qualification, except to the extent that the failure to be so
qualified or be in good standing individually or in the aggregate, would not have a material
adverse effect on the condition (financial or otherwise), results of operations, stockholders’
equity, properties, business or prospects of the Company and its subsidiaries, taken as a whole (a
"Material Adverse Effect”).
1.4 Subsidiaries. Each subsidiary of the Company has been duly incorporated or
organized, is validly existing as a corporation or other legal entity in good standing (or the
foreign equivalent thereof) under the laws of the jurisdiction of its incorporation or
organization, has the power and authority to own, lease and operate its property and to conduct its
business as described in the Registration Statement, the Disclosure Package and the Prospectus and
is duly qualified to transact business and is in good standing in each jurisdiction in which the
conduct of its business or its ownership, leasing or operation of property requires such
qualification, except to the extent that the failure to be so qualified or be in good standing
would not result in a Material Adverse Effect. All of the issued shares of capital stock or other
equity interests of each subsidiary of the Company have been duly and validly authorized and
issued, are fully paid and non-assessable and are owned directly by the Company or through its wholly-owned
subsidiaries, free and clear of all liens, encumbrances, equities or claims. There is no
outstanding option, right or agreement of any kind relating to the issuance, sale or transfer of
any capital stock or other equity securities of the subsidiaries to any person or entity except the
Company, and none of the outstanding shares of capital stock or other equity interests of any
subsidiary was issued in violation of the preemptive or similar rights of any securityholder of
such subsidiary. Except for its subsidiaries, the Company owns no beneficial interest, directly or
indirectly, in any corporation, partnership, joint venture or other business entity.
1.5 Underwriting Agreement. This Agreement has been duly authorized, executed and
delivered by the Company, and is a valid and binding agreement of the Company, enforceable in
accordance with its terms, except as rights to indemnification hereunder may be limited by
applicable law and except as the enforcement hereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights and remedies
of creditors or by general equitable principles.
1.6 Description of Capital Stock. As of the date of the Registration Statement, the
Disclosure Package and the Prospectus, the Company had authorized the outstanding capital stock as
set forth under the caption “Capitalization” in the Registration Statement, the Statutory
Prospectus and the Prospectus.
1.7 Outstanding Securities. The shares of Common Stock (including the Shares to be
sold by the Selling Stockholders) outstanding prior to the issuance of the Shares to be sold by the
Company have been duly authorized and are validly issued, fully paid and non-assessable. The
shares of Common Stock outstanding prior to the issuance of the Shares to be sold by the Company
are not subject to preemptive or similar rights to subscribe for or to purchase or acquire any
shares of Common Stock of the Company or any of its subsidiaries or any such rights pursuant to its
certificate of incorporation or bylaws (each, as amended) or any agreement or instrument to or by
which the Company or any of its subsidiaries is a party or bound. Except as disclosed in the
Registration Statement, the Statutory Prospectus and the Prospectus, the Company has not sold or
issued any securities 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
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
Registration Statement, the Statutory Prospectus and the Prospectus.
1.8 Validly Issued Shares. The Shares to be sold by the Company have been duly
authorized and, when issued and delivered in accordance with the terms of this Agreement, will be
validly issued, fully
5
paid and non-assessable, and the issuance of such Shares will not be subject
to any preemptive or similar rights to subscribe for or to purchase or acquire any shares of Common
Stock of the Company or any of its subsidiaries or any such rights pursuant to its certificate of
incorporation or bylaws or any agreement or instrument to or by which the Company or any of its
subsidiaries is a party or bound.
1.9 Nasdaq; Exchange Act Registration. The Shares have been duly authorized for
quotation on the National Association of Securities Dealers Automated Quotation (“Nasdaq”) Global
Market System, subject to official notice of issuance. A registration statement has been filed on
Form 8-A pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), which complies in all material respects with the Exchange Act. The Company has taken no
action designed to, or likely to have the effect of, terminating the registration of the Common
Stock under the Exchange Act or the quotation of the Common Stock on the Nasdaq Global Market
System, nor has the Company received any notification that the Commission or the Nasdaq Global
Market is contemplating terminating such registration or quotation.
1.10 No Conflict. The execution and delivery by the Company of, and the performance
by the Company of its obligations under, this Agreement will not contravene any provision of
applicable law or the certificate of incorporation or bylaws (each, as amended) of the Company or
(with or without notice or lapse of time or both) any agreement or other instrument binding upon
the Company or any of its subsidiaries that is material to the Company and its subsidiaries, taken
as a whole, or any judgment, order or decree of any governmental body, agency or court having
jurisdiction over the Company or any subsidiary, and no consent, approval, authorization or order
of, or qualification with, any governmental body or agency is required for the performance by the
Company of its obligations under this Agreement, except such as may be required by the securities
or Blue Sky laws of the various states in connection with the offer and sale of the Shares.
1.11 No Material Adverse Effect. There has not occurred any Material Adverse Effect,
or any development involving a prospective Material Adverse Effect, from that set forth in each of
the Disclosure Package and the Prospectus (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement).
1.12 Legal Proceedings; Statutes and Regulations. There are no legal or governmental
proceedings pending or, to the knowledge of the Company, threatened to which the Company or any of
its subsidiaries is a party or to which any of the properties of the Company or any of its
subsidiaries is subject that are required to be described in the Registration Statement, the
Statutory Prospectus or the Prospectus and are not so described or any statutes or regulations that
are required to be described in the Registration Statement, the Statutory Prospectus or the
Prospectus and are not described as required.
1.13 Contracts. There are no contracts or other documents that are required to be
described in the Registration Statement, the Statutory Prospectus and Prospectus or filed as
exhibits to the Registration Statement by the Securities Act or the applicable rules and
regulations thereunder that have not been described in the Registration Statement, the Statutory
Prospectus and the Prospectus or filed as exhibits to the Registration Statement.
1.14 Related Party Transactions. No relationship, direct or indirect, exists between
or among the Company, on the one hand, and the directors, officers, stockholders, customers or
suppliers of the Company, on the other hand, which is required to be described in the Registration
Statement, the Statutory Prospectus and the Prospectus and which is not so described. There are no
outstanding loans, advances or guarantees of indebtedness by the Company to or for the benefit of
any of the officers or directors of the
6
Company or any of their respective family members, except
as disclosed in the Registration Statement, the Statutory Prospectus and the Prospectus.
1.15 Compliance with Securities Act. Each Preliminary Prospectus filed as part of the
Registration Statement as originally filed or as part of any amendment thereto, or filed pursuant
to Rule 424 under the Securities Act, complied when so filed in all material respects with the
Securities Act and the applicable rules and regulations of the Commission thereunder.
1.16 Not an Investment Company. The Company is not and, after giving effect to the
offering and sale of the Shares and the application of the proceeds thereof as described in the
Registration Statement, the Disclosure Package and the Prospectus, will not be an “investment
company” as such term is defined in the Investment Company Act of 1940, as amended.
1.17 No Violation. The Company is not in violation of its certificate of
incorporation or bylaws (each, as amended), and is not in default, nor any event has occurred which
with notice or lapse of time or both would constitute a default, in the performance or observance
of any material obligation, agreement, covenant or condition contained in any indenture, mortgage,
deed of trust, loan agreement, lease or other agreement or instrument to which it is a party or by
which it or any of its properties may be bound, or any license, permit, judgment, decree, order,
statute, rule or regulation to which it or any of its properties or its business, or a subsidiary
or its properties or business, may be subject, which would result in a Material Adverse Effect.
1.18 Compliance with Environmental Laws. The Company and its subsidiaries (i) are in
compliance with any and all applicable foreign, federal, state and local laws, orders, rules,
regulations, directives, decrees and judgments relating to the protection of human health and
safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of
them under applicable Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval, except where such
noncompliance with Environmental Laws, failure to receive required permits, licenses or other
approvals or failure to comply with the terms and conditions of such permits, licenses or approvals
would not, individually or in the aggregate, result in a Material Adverse Effect.
1.19 No Environmental Costs. There are no costs or liabilities associated with
Environmental Laws (including, without limitation, any capital or operating expenditures required
for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or
approval, any related constraints on operating activities and any potential liabilities to third
parties) which would, individually or in the aggregate, result in a Material Adverse Effect.
1.20 No Registration Rights. There are no contracts, agreements or understandings
between the Company and any person or entity granting such person or entity the right,
contractually or otherwise, to require the Company to file a registration statement under the
Securities Act with respect to any securities of the Company or to require the Company to include
such securities with the Shares registered pursuant to the Registration Statement other than as
described in the Registration Statement, the Statutory Prospectus and the Prospectus or as have
been waived in writing in connection with the offering contemplated hereby.
1.21 Absence of Material Charges. Subsequent to the respective dates as of which
information is given in the Registration Statement, the Statutory Prospectus and the Prospectus,
(i) the
7
Company and its subsidiaries have not incurred any material liability or obligation, direct
or contingent, nor entered into any material transaction not in the ordinary course of business;
(ii) except as disclosed in the Registration Statement, the Statutory Prospectus and the
Prospectus, neither the Company nor its subsidiaries has purchased any of the Company’s outstanding
capital stock, nor declared, paid or otherwise made any dividend or distribution of any kind on the
Company’s capital stock; and (iii) there has not been any material change in the capital stock,
short-term debt or long-term debt of the Company and its subsidiaries, except in each case as
described in the Registration Statement, the Statutory Prospectus and the Prospectus.
1.22 Good Title to Properties. The Company and its subsidiaries do not own any real
property. The Company and its subsidiaries have good and valid title to all personal property
owned by them which is material to the business of the Company and its subsidiaries, in each case
free and clear of all liens, encumbrances and defects except such as are described in the
Registration Statement, Statutory Prospectus and the Prospectus or such as do not materially affect the value of such property and do not
interfere with the use made and proposed to be made of such property by the Company and its
subsidiaries; and any real property and buildings held under lease by the Company and 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.
1.23 Intellectual Property Rights. The Company and its subsidiaries own or possess,
or can acquire on commercially reasonable terms, legally enforceable rights to use all trademarks,
service marks, trade names, domain names, copyrights, patents, patent rights, inventions, know-how
(including trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures), and other intellectual property rights (collectively, the
“Intellectual Property”) as are necessary for the conduct of its or their respective businesses as
described in the Registration Statement, the Statutory Prospectus and the Prospectus, except where
failure to own, possess or acquire such rights would not result in a Material Adverse Effect.
Except as described in the Registration Statement, Statutory Prospectus and the Prospectus, (i) to
the knowledge of the Company, there is no infringement, misappropriation or violation by third
parties of any such Intellectual Property; (ii) there is no pending or, to the knowledge of the
Company, threatened action, suit, proceeding or claim by others challenging the Company’s or any of
its subsidiaries’ rights in or to any such Intellectual Property; (iii) the Intellectual Property
owned by the Company and its subsidiaries and to the knowledge of the Company, the Intellectual
Property licensed to the Company and its subsidiaries has not been adjudged invalid or
unenforceable, in whole or in part, and there is no pending or threatened action, suit, proceeding
or claim by others challenging the validity or scope of any such Intellectual Property; (iv) there
is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by
others against the Company or any of its subsidiaries that the Company or any of its subsidiaries
infringes, misappropriates or otherwise violates any Intellectual Property or other proprietary
rights of others, and neither the Company nor any of its subsidiaries has received any written
notice of such claim; and (v) to the Company’s knowledge, no employee of the Company or any of its
subsidiaries is the subject of any claim or proceeding involving a violation of any term of any
employment contract, patent disclosure agreement, invention assignment agreement, non-competition
agreement, non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or
with a former employer where the basis of such violation relates to such employee’s employment with
the Company or any of the Company’s subsidiaries or actions undertaken by the employee while
employed with the Company or any of the Company’s subsidiaries, except, in each case, for any
instances which would not, individually or in the aggregate, result in a Material Adverse Effect.
1.24 No Labor Disputes. No material labor dispute with the employees of the Company
or any of its subsidiaries exists, or, to the knowledge of the Company, is imminent; and the
Company is not
8
aware of any existing, threatened or imminent labor disturbance by the employees of
any of its principal suppliers, manufacturers or contractors that could have a Material Adverse
Effect.
1.25 Insurance. The Company and its subsidiaries are insured by the insurers of
recognized financial responsibility against such losses and risks and in such amounts as are
prudent and customary in the businesses in which they are engaged; and neither the Company nor any
of its subsidiaries has any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not have a Material
Adverse Effect.
1.26 No Price Stabilization or Manipulation. The Company has not taken, directly or
indirectly, any action designed to or that could reasonably be expected to cause or result in any
stabilization or manipulation of the price of the Shares.
1.27 Governmental Permits. The Company and its subsidiaries possess all certificates,
authorizations and permits issued by the appropriate federal, state or foreign regulatory
authorities necessary to conduct their respective business, except where the failure to possess
such certificate, authorization or permit would not, individually or in the aggregate, have a
Material Adverse Effect. Neither the Company nor any of its subsidiaries has received any notice
of proceedings relating to the revocation or modification of any such certificate, authorization or
permit which, individually or in the aggregate, if the subject of an unfavorable decision, ruling
or finding, would result in a Material Adverse Effect.
1.28 Financial Statements. (A). The financial statements of the Company and its
subsidiaries included or incorporated by reference in the Registration Statement, the Statutory
Prospectus and the Prospectus, together with related schedules and notes, and the financial
statements of PRWeb International, Inc. incorporated by reference in the Registration Statement,
the Statutory Prospectus and the Prospectus, together with related schedules and notes, comply as
to form in all material respects with the requirements of Regulation S-X under the Securities Act
and present fairly in all material respects the financial position of the Company and the Company’s
consolidated subsidiaries at the dates indicated and the statement of operations, stockholders’
equity and cash flows of the Company and the Company’s consolidated subsidiaries for the periods
specified; and such financial statements and related schedules and notes thereto, and the unaudited
financial information filed with the Commission as part of the Registration Statement, the
Statutory Prospectus and the Prospectus, have been prepared in conformity with generally accepted
accounting principles, consistently applied throughout the periods involved. The summary and
selected financial data included or incorporated by reference in the Registration Statement, the
Statutory Prospectus and the Prospectus present fairly in all material respects the information
shown therein as at the respective dates and for the respective periods specified and have been
presented on a basis consistent with the consolidated financial statements set forth or
incorporated by reference in the Registration Statement, the Statutory Prospectus and the
Prospectus and other financial information.
(B). The pro forma financial statements of the Company and its subsidiaries and the related
notes thereto contained or incorporated by reference in the Registration Statement, the Statutory
Prospectus and the Prospectus include assumptions that provide a reasonable basis for presenting
the significant effects directly attributable to the transactions and events described therein, the
related pro forma adjustments give appropriate effect to those assumptions, and the pro forma
adjustments reflect the proper application of those adjustments to the historical financial
statement amounts in the pro forma information included or incorporated by reference in the
Registration Statement, the Statutory Prospectus and the Prospectus. The pro forma financial
statements and the related notes included or incorporated by reference in the Registration
9
Statement, the Statutory Prospectus and the Prospectus comply as to form in all material respects
with the applicable accounting requirements of Regulation S-X under the Securities Act and the pro
forma adjustments have been properly applied to the historical amounts in the compilation of that
information.
1.29 Contributions, Gifts and Other Payments. Neither the Company, its subsidiaries,
nor any other person associated with or acting on behalf of the Company or its subsidiaries,
including without limitation any director, officer, agent or employee of the Company or its
subsidiaries has, directly or indirectly, while acting on behalf of the Company or its subsidiaries
(i) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful
expenses relating to political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to foreign or
domestic political parties or campaigns from corporate funds, (iii) violated any provision of the
Foreign Corrupt Practices Act of 1977, as amended or (iv) made any other unlawful payment.
1.30 Audit Committee. The Company’s board of directors has validly appointed an audit
committee whose composition satisfies the requirements of the Exchange Act, the rules and
regulations of the Commission adopted thereunder and Rules 4200 and 4350 of the rules of the
National Association of Securities Dealers (the “NASD”). The Company’s audit committee has adopted
a charter that satisfies the Exchange Act, the rules and regulations of the Commission adopted
thereunder and Rules 4200 and 4350 of the NASD Rules.
1.31 Controls and Procedures. The Company and each of its subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific authorizations; (ii)
transactions are recorded as necessary to permit preparation of financial statements in conformity
with generally accepted accounting principles and to maintain asset accountability; (iii) access to
assets is permitted only in accordance with management’s general or specific authorization; and
(iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Management of the
Company is currently designing, refining and documenting disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15 and 15d-15) for the Company that are being designed to ensure
that (i) information required to be disclosed by the Company in the reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the Commission’s rules and forms and (ii) information required to be disclosed
by the Company in the reports that it files or submits under the Exchange Act is accumulated and
communicated to the Company’s management, including its principal executive and principal financial
officers, or persons performing similar functions, as appropriate to allow timely decisions
regarding required disclosure. It is the Company’s management’s intention to become fully
compliant in all respects with all applicable laws, and related rules and regulations of the
Commission, regarding disclosure controls and procedures on or before the date on which such laws,
rules or regulations become applicable to the Company
1.32 Xxxxxxxx-Xxxxx Act. The Company is in compliance with all currently effective
provisions of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated thereunder
(the “Xxxxxxxx-Xxxxx Act”) that are applicable, or will be applicable as of the date of payment for
and delivery of the Firm Shares pursuant hereto, to the Company.
1.33 Auditor Independence. Ernst & Young LLP, which has expressed its opinion with
respect to the financial statements and schedules filed as a part of the Registration Statement and
included or incorporated by reference in the Registration Statement, the Statutory Prospectus and
the Prospectus, is and, during the periods covered by their reports, was an independent public
accounting firm within the meaning of
10
Article 2-01 of Regulation S-X under the Securities Act and
the rules and regulations promulgated thereunder, to the knowledge of the Company, such accountants
are not in violation of the auditor independence requirements of the Xxxxxxxx-Xxxxx Act, and the
rules and regulations promulgated thereunder, set forth in Section 10A of the Exchange Act.
1.34 Taxes. Each of the Company and its subsidiaries has filed all federal, state,
local and foreign tax returns and tax forms required to be filed, except where the failure to file
would not have a Material Adverse Effect. Such returns and forms are complete and correct in all
material respects. All payroll withholdings required to be made by the Company and its subsidiaries with respect to
employees have been made. There have been no tax deficiencies asserted or, to the knowledge of the
Company, threatened against the Company or its subsidiaries that could, individually or in the
aggregate, result in a Material Adverse Effect.
1.35 Brokers Fees. 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 of the
Underwriters for a brokerage commission, finder’s fee or other like payment in connection with the
transactions contemplated herein, the Registration Statement, the Disclosure Package and the
Prospectus or in any contracts, agreements, understandings, payments, arrangements or issuances
with respect to the Company or any of its officers, directors, stockholders, employees or
affiliates that may affect the Underwriters’ compensation as determined by the NASD.
1.36 Books and Records. The minute books of the Company and each of its subsidiaries
have been made available to the Underwriters and counsel for the Underwriters, and such books (i)
contain a complete summary of all meetings and actions of the board of directors or comparable body
(including each committee thereof) of the Company and each of its subsidiaries since the time of
its respective incorporation or formation through the date of the latest meeting and action and
(ii) accurately reflect all transactions referred to in such minutes.
1.37 Company Not Ineligible Issuer. (i) At the time of filing the Registration
Statement and (ii) as of the date of the execution and delivery of this Agreement (with such date
being used as the determination date for purposes of this clause (ii)), the Company was not and is
not an Ineligible Issuer (as defined in Rule 405 of the Securities Act).
1.38 Permitted Free Writing Prospectuses. The Company has not made, and will not
make, without the prior written consent of the Representatives, any offer relating to the Shares
that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a “free
writing prospectus” (as defined in Rule 405 of the Securities Act) required to be filed by the
Company with the Commission or retained by the Company under Rule 433 of the Securities Act;
provided that the prior written consent of the Representatives hereto shall be deemed to have been
given in respect of the Issuer Free Writing Prospectuses included in Schedule D hereto.
Any such free writing prospectus consented to by the Representatives is hereinafter referred to as
a “Permitted Free Writing Prospectus”. The Company agrees that (i) it has treated and will treat,
as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus,
and (ii) has complied and will comply, as the case may be, with the requirements of Rules 164 and
433 of the Securities Act applicable to any Permitted Free Writing Prospectus, including in respect
of timely filing with the Commission, legending and record keeping.
11
1.39 No Issuer Free Writing Prospectuses. Except as set forth in Schedule D
hereto, the Company has not prepared or had prepared, and will not prepare, any Issuer Free Writing
Prospectus, and has not distributed and will not distribute any written materials in connection
with the offer or sale of the Shares.
2. Representations and Warranties of the Selling Stockholders.
Each of the Selling Stockholders, severally and not jointly, represents and warrants to and
agrees with each of the Underwriters that:
2.1 Due Authorization. This Agreement has been duly authorized, executed and
delivered by or on behalf of such Selling Stockholder and is a valid and binding agreement of such
Selling Stockholder, enforceable in accordance with its terms, except as rights to indemnification
hereunder may be limited by applicable law and except as the enforcement hereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights and remedies of creditors or by general equitable
principles.
2.2 Selling Stockholder Documents. The Custody Agreement, the Power of Attorney
and the Stock Power (as each term is defined below) have been duly authorized, executed and
delivered by such Selling Stockholder and are valid and binding agreements of such Selling
Stockholder enforceable in accordance with their respective terms, except as rights to
indemnification thereunder may be limited by applicable law and except as the enforcement thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating
to or affecting the rights and remedies of creditors or by general equitable principles.
2.3 No Conflict. The execution and delivery by such Selling Stockholder of, and
the performance by such Selling Stockholder of its obligations under, this Agreement, the Letter of
Transmittal and Custody Agreement signed by such Selling Stockholder and American Stock Transfer &
Trust Company, as Custodian, relating to the deposit of the Shares to be sold by such Selling
Stockholder (the “Custody Agreement”), the Irrevocable Power of Attorney of Selling Shareholder
appointing certain individuals as such Selling Stockholder’s attorneys-in-fact to the extent set
forth therein, relating to the transactions contemplated hereby and by the Registration Statement
(the “Power of Attorney”) and the Stock Power signed by such Selling Stockholder (the “Stock
Power”) will not contravene any provision of applicable law, or the certificate of incorporation or
bylaws of such Selling Stockholder or any equivalent constituent documents (if such Selling
Stockholder is a corporation, company, partnership or other entity), or any agreement or other
instrument binding upon such Selling Stockholder or any judgment, order or decree of any
governmental body, agency or court having jurisdiction over such Selling Stockholder, and no
consent, approval, authorization or order of, or qualification with, any governmental body or
agency is required for the performance by such Selling Stockholder of its obligations under this
Agreement or the Custody Agreement or Power of Attorney of such Selling Stockholder, except such as
may be required by the securities or Blue Sky laws of the various states in connection with the
offer and sale of the Shares.
2.4 [Intentionally Omitted.]
2.5 Good Title to Shares. Such Selling Stockholder has, and on the Option
Closing Date will have, valid title to the Shares to be sold by such Selling Stockholder and the
legal right and power, and all authorization and approval required by law, to enter into this
Agreement, the Custody Agreement, the Power of Attorney and the Stock Power and to sell, transfer
and deliver the Shares to be sold by such Selling Stockholder.
12
2.6 Delivery of Common Shares. Delivery of the Shares to be sold by such Selling
Stockholder pursuant to this Agreement will pass title to such Shares free and clear of any
security interests, claims, liens, equities and other
encumbrances.
2.7 No Registration Rights. Such Selling Stockholder does not have any
registration or other similar rights to have any equity or debt securities registered for sale by
the Company under the Registration Statement or included in the offering contemplated by this
Agreement, other than as described in the Registration Statement, Statutory Prospectus and the
Prospectus and as have been waived in writing in connection with the offering contemplated hereby.
2.8 No Price Stabilization or Manipulation. Such Selling Stockholder has not
taken and will not take, directly or indirectly, any action designed to or that might be reasonably
expected to cause or result in stabilization or manipulation of the price of the Common Stock to
facilitate the sale or resale of the Shares.
2.9 No Free Writing Prospectuses. Such Selling Stockholder has not prepared or had
prepared on its behalf or used or referred to, and will not prepare or have prepared on its behalf
or use or refer to, any free writing prospectus defined in Rule 405 of the Securities Act and
required to be filed by the Company with the Commission or retained by the Company under Rule 433
of the Securities Act (the “Selling Stockholder Free Writing Prospectus”), and has not distributed
and will not distribute any written materials in connection with the offer or sale of the Shares.
2.10 Disclosure Made by Selling Stockholders. All information furnished by or on
behalf of such Selling Stockholder in writing expressly for use in the Registration Statement, the
Disclosure Package, the Prospectus or any Selling Stockholder Free Writing Prospectus or any
amendment or supplement thereto used by the Company or any Underwriter, as the case may be, was as
of the Initial Sale Time, will be on the Closing Date and Option Closing Date, true, correct and
complete in all material respects, and did not as of the Initial Sale Time, and will not on the
Closing Date and the Option Closing Date, contain any untrue statement of a material fact or omit
to state any material fact required to be made or necessary to make such information not
misleading.
3. Purchase and Sale Agreements
3.1 Firm Shares. Each of the Company and the Firm Share Selling Stockholders,
severally and not jointly, hereby agrees to sell to the several Underwriters, and each Underwriter,
upon the basis of the representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees, severally and not jointly, to purchase from such Seller at
$ per Share (the “Purchase Price”) the number of Firm Shares (subject to such adjustments to
eliminate fractional shares as you may determine) that bears the same proportion to the number of
Firm Shares to be sold by such Seller as the number of Firm Shares set forth in Schedule A
hereto opposite the name of such Underwriter bears to the total number of Firm Shares.
3.2 Additional Shares. On the basis of the representations and warranties contained
in this Agreement, and subject to its terms and conditions, the Additional Share Selling
Stockholders agree to sell to the Underwriters the Additional Shares, and the Underwriters shall
have a one-time right to purchase, severally and not jointly, up to ___Additional Shares at the
Purchase Price. If you, on behalf of the Underwriters, elect to exercise such option, you shall so
notify the Company, and Xxxxxxx Xxxxxx and/or Xxxxxxx Xxxxx, each as the Attorney-In-Fact for the
Additional Share Selling Stockholders, in writing not later than thirty (30) days after the date of
this Agreement, which notice shall specify the number of Additional Shares to be purchased by the Underwriters and the date on which such Shares are to
be purchased. Such date
13
may be the same as the Closing Date (as defined below) but not earlier
than the Closing Date nor later than ten (10) business days after the date of such notice.
Additional Shares may be purchased as provided in Section 4 hereof solely for the purpose of
covering over- allotments made in connection with the offering of the Firm Shares. If any
Additional Shares are to be purchased, each Underwriter agrees, severally and not jointly, to
purchase the number of Additional Shares (subject to such adjustments to eliminate fractional
shares as you may determine) that bears the same proportion to the total number of Additional
Shares to be purchased as the number of Firm Shares set forth in Schedule A hereto opposite
the name of such Underwriter bears to the total number of Firm Shares.
3.3 Market Standoff Provision. The Company hereby agrees that, without the prior
written consent of Xxxxxx Xxxxxx Partners LLC, it will not, during the period ending 90 days after
the date of the Prospectus (the “Restricted Period”), (i) offer, pledge, sell, contract to sell,
sell any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly,
any shares of Common Stock or any securities convertible into or exercisable or exchangeable for
Common Stock or (ii) enter into any swap or other arrangement that transfers to another, in whole
or in part, any of the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or
such other securities, in cash or otherwise. The foregoing sentence shall not apply to (A) the
Shares to be sold hereunder, (B) the issuance by the Company of shares of Common Stock upon the
exercise of options or warrants or the conversion of a security outstanding on the date hereof and
which is described in the Registration Statement and Prospectus, (C) transactions by any person
other than the Company relating to shares of Common Stock or other securities acquired in open
market transactions after the completion of the offering of the Shares, (D) the grant of options or
the issuance of shares of Common Stock under the Company’s stock option plans, (E) the filing of
any registration statement on Form S-8 in respect of any employee benefit plan described in the
Registration Statement, the Statutory Prospectus and Prospectus, and (F) the issuance by the
Company of shares of Common Stock having a value of up to $10,000,000 pursuant to an acquisition or
merger transaction. In addition, each Selling Stockholder agrees that, without the prior written
consent of Xxxxxx Xxxxxx Partners LLC, it will not, during the Restricted Period, make any demand
for, or exercise any right with respect to, the registration of any shares of Common Stock or any
security convertible into or exercisable or exchangeable for Common Stock. Notwithstanding the
foregoing, if (1) during the last seventeen (17) days of the Restricted Period, the Company
releases earnings results or announces material news or a material event relating to the Company
occurs; or (2) prior to the expiration of the Restricted Period, the Company announces that it will
release earnings results during the 15-day period beginning on the last day of the Restricted
Period, then in either case the restrictions set forth herein shall continue to apply until
eighteen (18) days after the date of release of the earnings results or the announcement of the
material news or material event, as applicable, unless Xxxxxx Xxxxxx Partners LLC waives, in
writing, such extension.
Notwithstanding the foregoing, each Seller may transfer shares of Common Stock (i) as a
bona fide gift or gifts, provided that the donee or donees thereof agree to be bound by the
restrictions set forth herein, (ii) to any trust for the direct or indirect benefit of the undersigned or the
immediate family of the undersigned, provided that the trustee of the trust agrees to be bound by
the restrictions set forth herein, and provided further that any such transfer shall not involve a
disposition for value, (iii) to the Underwriters pursuant to this Agreement, or (iv) in
transactions relating to shares of Common Stock acquired by the Sellers in open market transactions
after the closing of the sale of the Shares. For purposes of this Agreement, “immediate family”
shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In
addition, notwithstanding the foregoing, (a) if the Seller is a corporation, partnership, limited
liability company or other form of business entity, the Seller may transfer the capital stock of
the Company to
14
any wholly-owned subsidiary, partner or member of the Seller or to an affiliate of
the Seller; provided, however, that in any such case, it shall be a condition to the transfer that
the transferee execute an agreement stating that the transferee is receiving and holding such
capital stock subject to the provisions of this Agreement and there shall be no further transfer of
such capital stock except in accordance with this Agreement, and provided further that any such
transfer shall not involve a disposition for value, and (b) the Seller may, during the Restricted
Period, establish a trading plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934,
as amended (and/or modify an existing trading plan), provided that no sales or other transfers
occur under such plan during the Restricted Period.
3.4 Terms of Public Offering. The Sellers are advised by you that the Underwriters
propose to make a public offering of their respective portions of the Shares as soon after the
Registration Statement and this Agreement have become effective as in your judgment is advisable.
The Sellers are further advised by you that the Shares are to be offered to the public initially at
a price of $ per Share (the “Public Offering Price”) and to certain dealers selected by you at
a price that represents a selling concession of not more than $ per Share below the Public
Offering Price, and that any Underwriter may allow, and such dealers may re-allow, a selling
concession, not in excess of $ per Share, to any Underwriter or to certain other dealers.
4. Payment and Delivery
4.1 Firm Shares. Payment for the Firm Shares to be sold by the Company and the Firm
Share Selling Stockholders shall be made to such Seller in immediately available funds against
delivery of such Firm Shares for the respective accounts of the several Underwriters at 10:00 a.m.,
Eastern Standard Time, on April ___, 2007, or at such other time on the same or such other date
as shall be designated in writing by you. The time and date of such payment are hereinafter
referred to as the “Closing Date”.
4.2 Additional Shares. Payment for any Additional Shares shall be made to each
Additional Share Selling Stockholder in immediately available funds in New York City against
delivery of such Additional Shares for the respective accounts of the several Underwriters at 10:00
a.m., Eastern Standard Time, on the date specified in the notice described in Section 3.2 or at
such other time on the same or on such other date, in any event not later than May ___, 2007, as
shall be designated in writing by you. The time and date of such payment are hereinafter referred
to as the “Option Closing Date”.
4.3 Delivery of Certificates. Certificates for the Firm Shares and Additional Shares
shall be in definitive form and registered in such names and in such denominations as you shall
request in writing not later than one (1) full business day prior to the Closing Date or the Option
Closing Date, as the case may be. The certificates evidencing the Firm Shares and Additional
Shares shall be delivered to you on the Closing Date or the Option Closing Date, as the case may
be, for the respective accounts of the several Underwriters, with any transfer taxes payable in connection with the transfer of the Shares to the
Underwriters duly paid, against payment of the Purchase Price therefor.
5. Covenants of the Company. In further consideration of the agreements of the
Underwriters herein contained, the Company covenants with each Underwriter as follows:
5.1 Furnish Copies of Registration Statement and Prospectus. To furnish to you,
without charge, three signed copies of the Registration Statement (including exhibits thereto) and
for delivery to each other Underwriter a conformed copy of the Registration Statement (without
exhibits thereto) and to furnish to you in New York City, without charge, prior to 10:00 a.m. New
York City time on the business day next
15
succeeding the date of this Agreement and during the period
mentioned in Section 5.3 below, as many copies of each of the Preliminary Prospectus, the
Disclosure Package, the Prospectus and any supplements and amendments thereto or to the
Registration Statement as you may reasonably request.
5.2 Notification of Amendments or Supplements. Before amending or supplementing the
Registration Statement, the Disclosure Package or the Prospectus, to furnish to you a copy of each
such proposed amendment or supplement and not to file any such proposed amendment or supplement to
which you reasonably object, and to file with the Commission within the applicable period specified
in Rule 424(b) under the Securities Act any prospectus required to be filed pursuant to such rule.
In addition, during the Prospectus Delivery Period (as defined in Section 5.3), the Company will
promptly advise the Representatives (i) of any communications (written or oral) with the Commission
with regard to the Registration Statement, the Disclosure Package, the Prospectus, any amendments
or supplements of the Registration Statement or the Disclosure Package, the Prospectus or any other
matters in connection with the offering of the Shares; (ii) of any filings made by the Company with
the Commission in connection with the offering of the Shares; (iii) when any amendment to the
Registration Statement relating to the Shares shall have become effective, (iv) of the issuance by
the Commission of any stop order suspending the effectiveness of the Registration Statement or the
institution or threatening of any proceeding for that purpose and (v) of the receipt by the Company
of any notification with respect to the suspension of the approval of the Shares for quotation in
the Nasdaq Global Market or qualification of the Shares for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose. The Company will use its
commercially reasonable best efforts to prevent the issuance or invocation of any such stop order
or suspension and, if any such stop order or suspension is so issued or invoked, to obtain as soon
as possible the withdrawal or removal thereof.
5.3 Filings of Amendments or Supplements. If, during such period after the first date
of the public offering of the Shares when in the opinion of counsel for the Underwriters, the
Disclosure Package or Prospectus is required by law to be delivered in connection with sales by an
Underwriter or dealer (the “Prospectus Delivery Period”), any event or development shall occur or
condition exist as a result of which it is necessary to amend or supplement the Disclosure Package
or Prospectus in order to make the statements therein, in the light of the circumstances when the
Prospectus is delivered to a purchaser, not misleading, or if, in the opinion of counsel for the
Underwriters, it is necessary to amend or supplement the Disclosure Package or Prospectus to comply
with applicable law, forthwith to prepare, file with the Commission and furnish, at its own
expense, to the Underwriters and to the dealers (whose names and addresses you will furnish to the
Company) to which Shares may have been sold by you on behalf of the Underwriters and to any other
dealers upon request, either amendments or supplements to the Disclosure Package or the Prospectus
so that the statements in the Disclosure Package or the Prospectus as so amended or supplemented
will not, in the light of the circumstances when the Disclosure Package or Prospectus is
delivered to a purchaser, be misleading or so that the Prospectus, as amended or supplemented, will
comply with law.
5.4 Blue Sky Laws. To endeavor to qualify the Shares for offer and sale under the
securities or Blue Sky laws of such jurisdictions as you shall reasonably request; provided,
however, that the Company will not be required to qualify as a foreign corporation or to file a
general consent to service of process in any jurisdiction where it is not now so qualified or
required to file such consent.
5.5 Use of Proceeds. The Company shall apply the net proceeds from the sale of the
Shares sold by it in the manner described under the caption “Use of Proceeds” in the Registration
Statement, the Disclosure Package and the Prospectus.
16
5.6 Transfer Agent. The Company shall engage and maintain, at its expense, a
registrar and transfer agent for the Common Stock.
5.7 Reporting Obligations; Exchange Act Compliance. The Company shall file, on a
timely basis, with the Commission and the Nasdaq Global Market all reports and documents required
to be filed under the Exchange Act. Additionally, the Company shall file with the Commission such
information on Form 10-Q or Form 10-K as may be required by Rule 463 under the Securities Act.
5.8 Public Communications. Prior to the Closing Date, the Company will issue no press
release or other communications directly or indirectly and hold no press conference with respect to
the Company or its subsidiaries, the condition, financial or otherwise, or the earnings, business,
operations or prospects of any of them, or the offering of the Shares without the prior written
consent of Xxxxxx Xxxxxx Partners LLC unless in the judgment of the Company and its counsel, and
after notification to Xxxxxx Xxxxxx Partners LLC, such press release or communication is required
by law.
6. Conditions to the Underwriters’ Obligations. The obligations of the Sellers to
sell the Shares to the several Underwriters and the several obligations of the Underwriters to
purchase and pay for the Shares on the Closing Date or Option Closing Date, as the case may be, are
subject to the following conditions:
6.1 Effective Registration Statement. The Registration Statement shall have become
effective not later than April ___, 2007 (Eastern Standard Time) on the date hereof.
6.2 Rule 462(b) Registration Statement. If the Company elects to rely upon Rule
462(b), the Company shall file a Rule 462(b) Registration Statement with the Commission in
compliance with Rule 462(b) by 10:00 P.M., Washington, D.C. time, on the date of this Agreement,
and the Company shall at the time of filing either pay to the Commission the filing fee for the
Rule 462(b) Registration Statement or give irrevocable instructions for the payment of such fee
pursuant to Rule 111(b) under the Securities Act.
6.3 Representations and Warranties. The representations and warranties of the Company
and each of the Selling Stockholders contained in this Agreement and in the certificate delivered
pursuant to Section 6.9 and Section 6.15 shall be true and correct when made and on and as of each
of the Closing Date and Option Closing Date as if made on such date (except that those
representations and warranties that address matters only as of a particular date shall remain true
and correct as of such date). The Company and each of the Selling Stockholders shall have
performed all covenants and agreements and satisfied all the conditions contained in this Agreement
required to be performed or satisfied by the Company or any Selling Stockholder at or before such
Closing Date or Option Closing Date, as the case may be.
6.4 Prospectus Filed with Commission. The Company shall have filed the Prospectus
with the Commission (including the information required by Rule 430A under the Securities Act) in
the manner and within the time period required by Rule 424(b) under the Securities Act; or the
Company shall have filed a post-effective amendment to the Registration Statement containing the
information required by such Rule 430A, and such post-effective amendment shall have become
effective. The Company shall have filed any material required to be filed by the Company with the
Commission in the manner and within the time period required by Rule 433 of the Securities Act,
including the Issuer Free Writing Prospectus, the Selling Stockholder Free Writing Prospectus and
the Other Free Writing Prospectus.
6.5 No Stop Order. No stop order suspending the effectiveness of the Registration
Statement, any Rule 462(b) Registration Statement, or any post-effective amendment to the
Registration
17
Statement, shall be in effect and no proceedings for such purpose shall have been
instituted or threatened by the Commission.
6.6 Nasdaq. The Shares have been listed for quotation on the Nasdaq Global Market
System.
6.7 No NASD Objection. The NASD shall have raised no objection to the fairness and
reasonableness of the underwriting terms and arrangements.
6.8 No Material Adverse Effect. There shall not have occurred any Material Adverse
Effect, or any development involving a prospective Material Adverse Effect, from that set forth in
each of the Disclosure Package and Prospectus (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement) that, in your judgment, is material and adverse and that
makes it, in your judgment, impracticable to market the Shares on the terms and in the manner
contemplated in the Statutory Prospectus and Prospectus.
6.9 Officer’s Certificate. The Underwriters shall have received on the Closing Date
or Option Closing Date, as the case may be, a certificate, dated such Closing Date or Option
Closing Date, and signed by the Chief Executive Officer or President of the Company, to the effect
that (i) Sections 6.3 (with respect to the Company), 6.4, 6.5 and 6.8 (to the knowledge of such
person) above are true and correct as of such Closing Date or Option Closing Date, as applicable
(except that those representations and warranties that address matters only as of a particular date
shall remain true and correct as of such date), (ii) they have carefully examined the Registration
Statement, the Disclosure Package, the Prospectus and, in their opinion, since the Effective Date
no event has occurred which should have been set forth in a supplement or otherwise required an
amendment to the Registration Statement, the Disclosure Package or the Prospectus and (iii) the
Company has complied with all of the covenants and agreements and satisfied all of the conditions
on its part to be performed or satisfied hereunder on the Closing Date or Option Closing Date, as
the case may be.
6.10 Opinion of Company Counsel. The Underwriters shall have received on the Closing
Date an opinion of Xxxxxxxxx Traurig, LLP, counsel for the Company, dated the Closing Date, the
form of which is attached hereto as Exhibit A. The opinion shall be rendered to the
Underwriters at the request of the Company and shall so state therein.
6.11 Opinion of Selling Stockholders Counsel. The Underwriters shall have received on
the Closing Date and Option Closing Date, as the case may be, (i) an opinion of Xxxxxxxxx Xxxxxxx,
LLP, counsel for the Executive Selling Stockholders and the other Selling Stockholders (excluding
those Selling Stockholders that are covered under paragraphs (ii), (iii) and (iv)) (the “Employee Selling
Stockholders”), (ii) an opinion of Xxxxxx & Xxxxxx LLP, counsel for Lazard Alternative Investments
LLC as nominee of Lazard Technology Partners II LP, and (iii) an opinion of Proskauer Rose LLP,
counsel for Sterling Venture Partners, L.P., and (iv) an opinion of Xxxxxxx Xxxxxx Xxxxxx & Dodge
LLP, counsel for Edison Venture Fund IV, L.P., each dated the Closing Date or the Option Closing
Date, as the case may be, the forms of which are attached hereto as Exhibits X-0, X-0, X-0 and
B-4, respectively. The opinion shall be rendered to the Underwriters at the request of the
Selling Stockholders and shall so state therein.
6.12 Opinion of Underwriters Counsel. The Underwriters shall have received on the
Closing Date an opinion of Xxxxxxx Xxxxx LLP, counsel for the Underwriters, dated the Closing Date,
in form and substance reasonably satisfactory to the Underwriters.
18
6.13 Accountant’s Comfort Letter. The Underwriters shall have received, on each of
the date hereof and the Closing Date, a letter dated as of the date hereof and the Closing Date, as
the case may be, in form and substance satisfactory to the Underwriters, from Ernst & Young LLP,
independent public auditors, containing statements and information of the type ordinarily included
in accountants’ “comfort letters” to Underwriters with respect to the financial statements, the pro
forma financial statements and certain financial information contained or incorporated by reference
in the Registration Statement, Disclosure Package and the Prospectus; provided that the letter
delivered on the Closing Date shall use a “cut-off date” not earlier than the date hereof.
6.14 Lock-Up Agreements. The “lock-up” agreements, each substantially in the
form of Exhibit C hereto, between you and each of the Selling Stockholders and each of the
officers and directors of the Company, delivered to you on or before the date hereof, shall be in
full force and effect on the Closing Date.
6.15 Selling Stockholders Certificate. The Underwriters shall have received, on
the Closing Date and Option Closing Date, as the case may be, a certificate dated the Closing Date
or the Option Closing Date, as the case may be, and signed by Xxxxxxx Xxxxxx or Xxxxxxx Xxxxx, as
the Attorney-in-Fact of each Selling Stockholder, to the effect that the representations and
warranties of the Selling Stockholders contained in this Agreement are true and correct as of the
Closing Date or the Option Closing Date, as the case may be, and that the Selling Stockholders have
complied with all of the agreements and satisfied all of the conditions on their part to be
performed or satisfied hereunder on or before the Closing Date or the Option Closing Date, as the
case may be.
6.16 Selling Stockholder Documents. On the date hereof, the Company and the
Selling Stockholders shall have furnished for review by the Underwriters copies of the Powers of
Attorney, Custody Agreements and Stock Powers executed by each of the Selling Stockholders and such
further information, certificates and documents as the Underwriters may reasonably request.
6.17 Additional Documents. On the Closing Date and Option Closing Date, the
Representatives and counsel for the Underwriters shall have received such information, documents
and opinions as they may reasonably require for the purposes of enabling them to pass upon the
issuance and sale of the Shares as contemplated herein, or in order to evidence the accuracy of any
of the representations and warranties, or the satisfaction of any of the conditions or agreements,
herein contained.
The several obligations of the Underwriters to purchase Additional Shares hereunder are subject to
the satisfaction of each of the above conditions on or prior to the Option Closing Date and to the
delivery to you on the Option Closing Date of such documents as you may reasonably request with
respect to the good standing of the Company, the due authorization and issuance and good title of
the Additional Shares and other matters related to the issuance of the Additional Shares.
6.18 Legal Matters. All corporate proceedings and other legal matters incident
to negotiation and execution of this Agreement and the issuance and sale of the Shares, as
contemplated herein shall be reasonably satisfactory to counsel for the Underwriters, and the
Company shall have furnished to such counsel all documents and information that they may reasonably
request to enable them to pass upon such matters.
7. Expenses. Whether or not the transactions contemplated in this Agreement are
consummated or this Agreement is terminated, the Company agrees to pay or cause to be paid all
expenses incident to the
19
performance of its obligations under this Agreement, including: (i) the
fees, disbursements and expenses of the Company’s counsel, the Company’s accountants and counsel
for the Selling Stockholders in connection with the preparation and negotiation of this Agreement
and the registration and delivery of the Shares under the Securities Act and all other fees or
expenses in connection with the preparation and filing of the Registration Statement, any
Preliminary Prospectus, the Disclosure Package, the Prospectus and amendments and supplements to
any of the foregoing, including all printing costs associated therewith, and the mailing and
delivering of copies thereof to the Underwriters and dealers, in the quantities hereinabove
specified, (ii) all costs and expenses related to the transfer and delivery of the Shares to the
Underwriters, including any transfer or other taxes payable thereon, (iii) the cost of printing or
producing any Blue Sky or legal investment memorandum in connection with the offer and sale of the
Shares under state securities laws and all expenses in connection with the qualification of the
Shares for offer and sale under state securities laws as contemplated by Section 5.4 hereof,
including filing fees and the reasonable fees and disbursements of counsel for the Underwriters in
connection with such qualification and in connection with the Blue Sky or legal investment
memorandum, provided that all such fees and disbursements under this sub-clause (iii) shall not
exceed $5,000, (iv) all filing fees and the reasonable fees and disbursements of counsel to the
Underwriters incurred in connection with the review and qualification of the offering of the Shares
by the NASD, provided that all such fees and disbursements under this sub-clause (iv) shall not
exceed $20,000, (v) all fees and expenses in connection with the preparation and filing of the
registration statement on Form 8-A relating to the Common Stock and all costs and expenses incident
to listing the Shares on the Nasdaq Global Market, (vi) the cost of printing certificates
representing the Shares, (vii) the costs and charges of any transfer agent, registrar or
depositary, (viii) the costs and charges of any custodian of the Shares to be sold by the Selling
Stockholders, (ix) 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
representatives and officers of the Company and any such consultants, and one-half of the cost of
any aircraft chartered in connection with the road show (it being understood that the Underwriters
shall be responsible for paying travel and lodging expenses of the representatives of the
Underwriters, any ground transportation used by representatives of the Company or the Underwriters
in connection with the road show, and one-half of the cost of any aircraft chartered in connection
with the road show), (x) all expenses in connection with any offer and sale of the Shares outside
of the United States, including filing fees, and (xi) all other costs and expenses incident to the
performance of the obligations of the Company hereunder for which provision is not otherwise made
in this Section. It is understood, however, that except as provided in this Section, Section 8
entitled “Indemnity and Contribution”, and the last paragraph of Section 11 below, the Underwriters
will pay all of their costs and expenses, including fees and disbursements of their counsel and any
advertising expenses connected with any offers they may make. In the event
that the offering of the
Shares is terminated, the Underwriters shall not receive any compensation from the Company other
than the accountable out-of-pocket expenses actually incurred by the Underwriters in connection
with the offering of the Shares.
The provisions of this Section shall not supersede or otherwise affect any agreement that the
Sellers may otherwise have for the allocation of such expenses among themselves.
8. Indemnity and Contribution.
8.1 Indemnification of the Underwriters. The Company and the Executive Selling
Stockholders jointly and severally agree to indemnify and hold harmless each Underwriter and each
person, if any, who controls any Underwriter within the meaning of either Section 15 of the
Securities Act or Section 20
20
of the Exchange Act, from and against any and all losses, claims,
damages and liabilities (including, without limitation, any legal or other expenses reasonably
incurred in connection with defending or investigating any such action or claim) arising out of,
based upon, or caused by any untrue statement or alleged untrue statement of a material fact
contained or incorporated by reference in the Registration Statement or any amendment thereof, any
Preliminary Prospectus, the Disclosure Package or the Prospectus (as amended or supplemented if the
Company shall have furnished any amendments or supplements thereto), or in any Blue Sky application
or other information or other documents executed by the Company filed in any state or other
jurisdiction to qualify any or all of the Shares under the securities laws thereof or arising out
of, based upon, or caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, except
insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or
omission or alleged untrue statement or omission based upon information relating to any Underwriter
furnished to the Company in writing by such Underwriter through you expressly for use therein.
8.2 Indemnification of Company by the Selling Stockholders . Each Selling
Stockholder agrees, severally and not jointly, to indemnify and hold harmless the Company, its
directors, its officers who sign the Registration Statement and each person, if any, who controls
the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) arising out of, based upon or caused by any untrue
statement or alleged untrue statement of a material fact contained or incorporated by reference in
the Registration Statement or any amendment thereof, any Preliminary Prospectus, the Disclosure
Package, the Selling Stockholder Free Writing Prospectus or the Prospectus (as amended or
supplemented if the Company shall have furnished any amendments or supplements thereto), or arising
out of, based upon or caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, but only,
in each case, with respect to information relating to such Selling Stockholder furnished in writing
by or on behalf of such Selling Stockholder expressly for use in the Registration Statement, any
Preliminary Prospectus, the Disclosure Package, the Prospectus or any amendments or supplements
thereto.
8.3 Indemnification of Underwriters by Selling Stockholders. Each Selling
Stockholder agrees, severally and not jointly, to indemnify and hold harmless each Underwriter and
each person, if any, who controls any Underwriter within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims,
damages and liabilities (including, without limitation, any legal or other expenses reasonably
incurred in connection with defending or investigating any such action or claim) arising out of,
based upon or caused by any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement or any amendment thereof, any Preliminary Prospectus, the
Disclosure Package, the Selling Stockholder Free Writing Prospectus, or the Prospectus (as amended
or supplemented if the Company shall have furnished any amendments or supplements thereto), or
arising out of, based upon or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading, but only, in each case, with respect to information relating to such Selling
Stockholder furnished in writing by or on behalf of such Selling Stockholder expressly for use in
the Registration Statement, any Preliminary Prospectus, the Disclosure Package, the Prospectus or
any amendments or supplements thereto.
8.4 Indemnification by the Underwriters. Subject to the last sentence in Section
1.2 above, each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Selling Stockholders, the directors of the Company, the officers of the Company who
sign the Registration Statement
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and each person, if any, who controls the Company or any Selling
Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act from and against any and all losses, claims, damages and liabilities (including,
without limitation, any legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) arising out of, based upon or caused by any untrue
statement or alleged untrue statement of a material fact contained in the Registration Statement or
any amendment thereof, any Preliminary Prospectus, the Statutory Prospectus or the Prospectus (as
amended or supplemented if the Company shall have furnished any amendments or supplements thereto),
or arising out of, based upon or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading, but only, in each case, with reference to information relating to such Underwriter
furnished to the Company in writing by such Underwriter through you expressly for use in the
Registration Statement, any Preliminary Prospectus, the Statutory Prospectus, the Prospectus or any
amendments or supplements thereto.
8.5 Indemnification Procedures. In case any proceeding (including any
governmental investigation) shall be instituted involving any person in respect of which indemnity
may be sought pursuant to this Section 7, such person (the “indemnified party”) shall promptly
notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing
and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably
satisfactory to the indemnified party to represent the indemnified party and any others the
indemnifying party may designate in such proceeding and shall pay the fees and disbursements of
such counsel related to such proceeding. In any such proceeding, any indemnified party shall have
the right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of such indemnified party unless (a) the indemnifying party and the indemnified party shall
have mutually agreed to the retention of such counsel or (b) the named parties to any such
proceeding (including any impleaded parties) include both the indemnifying party and the
indemnified party and representation of both parties by the same counsel would be inappropriate due
to actual or potential differing interests between them. It is understood that the indemnifying
party shall not, in respect of the legal expenses of any indemnified party in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for (i) the fees and expenses
of more than one separate firm (in addition to any local counsel) for all Underwriters and all
persons, if any, who control any Underwriter within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, (ii) the fees and expenses of more than one
separate firm (in addition to any local counsel) for the Company, its directors, its officers who
sign the Registration Statement and each person, if any, who controls the Company within the
meaning of either such Section and (iii) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all Selling Stockholders and all persons, if any, who control
any Selling Stockholder within the meaning of either such Section, and that all such fees and
expenses shall be reimbursed as they are incurred. In the case of any such separate firm for the
Underwriters and such control persons of any Underwriters, such firm shall be designated in writing
by Xxxxxx Xxxxxx Partners LLC. In the case of any such separate firm for the Company, and such
directors, officers and control persons of the Company, such firm shall be designated in writing by
the Company. In the case of any such separate firm for the Selling Stockholders and such control
persons of any Selling Stockholders, such firm shall be designated in writing by the persons named
as attorneys-in-fact for the Selling Stockholders under the Powers of Attorney. The indemnifying
party shall not be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party from and against any loss or liability
by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time
an indemnified party shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by the second and third sentences of this
paragraph, the indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (x) such settlement is entered into more
22
than 30 days after receipt by such indemnifying party of the aforesaid request and (y) such
indemnifying party shall not have reimbursed the indemnified party in accordance with such request
prior to the date of such settlement. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or threatened proceeding in
respect of which any indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter of such
proceeding.
8.6 Limitation of Selling Stockholder Liability. The aggregate liability of each
Selling Stockholder for all claims under the indemnity and contribution provisions of this Section
8 shall be limited to an amount equal to the Public Offering Price of the Shares sold by such
Selling Stockholder, less the underwriting discounts and commissions, as set forth on the front
cover page of the Prospectus. The Company and each Selling Stockholder (as to itself only) may
agree, as among themselves and without limiting the rights of the Underwriters (or any other
Selling Stockholder not party to such agreement) under this Agreement, as to the respective amounts
of such liability for which the Company and any such Selling Stockholder each shall be responsible.
8.7 Contribution Agreement. To the extent the indemnification provided for in
this Section 8 is unavailable to an indemnified party or insufficient in respect of any losses,
claims, damages or liabilities referred to therein, then each indemnifying party under such
paragraph, in lieu of indemnifying such indemnified party thereunder, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by
the indemnifying party or parties on the one hand and the indemnified party or parties on the other
hand from the offering of the Shares or (ii) if the allocation provided by Section 8.8 below is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in Section 8.8 below but also the relative fault of the indemnifying party or
parties on the one hand and of the indemnified party or parties on the other hand in connection
with the statements or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations. The relative benefits received by the Sellers
on the one hand and the Underwriters on the other hand in connection with the offering of the
Shares shall be deemed to be in the same respective proportions as the net proceeds from the
offering of the Shares (net of underwriting discounts and commissions but before deducting
expenses) received by each Seller and the total underwriting discounts and commissions received by
the Underwriters, in each case as set forth in the table on the cover of the Prospectus, bear to
the aggregate Public Offering Price of the Shares. The relative fault of the Sellers on the one
hand and the Underwriters on the other hand shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Sellers or by the
Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The Underwriters’ respective obligations to
contribute pursuant to this Section 8 are several in proportion to the respective number of Shares
they have purchased hereunder, and not joint.
8.8 Contribution Amounts. The Sellers and the Underwriters agree that it would
not be just or equitable if contribution pursuant to this Section 8 were determined by pro rata
allocation (even if the Underwriters were treated as one entity for such purpose) or by any other
method of allocation that does not take account of the equitable considerations referred to in
Section 8.7. The amount paid or payable by an indemnified party as a result of the losses, claims,
damages and liabilities referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any
23
such action or
claim. Notwithstanding the provisions of this Section 8, 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 were offered to the public exceeds the amount of
any damages that such Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The remedies
provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which
may otherwise be available to any indemnified party at law or in equity.
8.9 Survival of Provisions. The indemnity and contribution provisions contained
in this Section 8 and the representations, warranties and other statements of the Company and the
Selling Stockholders contained in this Agreement shall remain operative and in full force and
effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on
behalf of any Underwriter or any person controlling any Underwriter, any Selling Stockholders or
any person controlling any Selling Stockholder, or the Company, its officers or directors or any
person controlling the Company and (iii) acceptance of and payment for any of the Shares.
9. Effectiveness. This Agreement shall become effective upon the execution and
delivery hereof by the parties hereto.
10. Termination. This Agreement shall be subject to termination by notice given
by you to the Company, if (a) after the execution and delivery of this Agreement and prior to the
Closing Date (i) trading generally shall have been suspended or materially limited on or by, as the
case may be, any of the New York Stock Exchange, the American Stock Exchange or the Nasdaq Global
Market, (ii) trading of any securities of the Company shall have been suspended on any exchange or
in any over the counter market, (iii) a general moratorium on commercial banking activities in New
York, Delaware or California shall have been declared by either federal or New York, Delaware or
California state authorities or (iv) there shall have occurred any outbreak or escalation of
hostilities or any change in financial markets or any calamity or crisis that, in your judgment, is
material and adverse, or (v) in the reasonable judgment of the Representatives, there shall have
occurred any Material Adverse Effect, or any development that could reasonably be expected to
result in a Material Adverse Effect, whether or not arising from transactions in the ordinary
course of business, of the Company and its subsidiaries, taken as a whole, and (b) in the case of
any of the events specified in clauses 10(a)(i) through 10(a)(v), such event, individually or
together with any other such event, makes it, in your judgment, impracticable to market the Shares
on the terms and in the manner contemplated in the Prospectus.
11. Defaulting Underwriters. If, on the Closing Date or the Option Closing Date,
as the case may be, any one or more of the Underwriters shall fail or refuse to purchase Shares
that it has or they have agreed to purchase hereunder on such date, and the aggregate number of
Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase
is not more than one-tenth of the aggregate number of the Shares to be purchased on such date, the
other Underwriters shall be obligated severally in the proportions that the number of Firm Shares
set forth opposite their respective names in Schedule A bears to the aggregate number of
Firm Shares set forth opposite the names of all such non-defaulting Underwriters, or in such other
proportions as you may specify, to purchase the Shares which such defaulting Underwriter or
Underwriters agreed but failed or refused to purchase on such date; provided that in no event shall
the number of Shares that any Underwriter has agreed to purchase pursuant to this Agreement be
increased pursuant to this Section 11 by an amount in excess of one-ninth of such number of Shares
without the written consent of such Underwriter. If, on the Closing Date, any Underwriter or
Underwriters shall fail or refuse to purchase Firm Shares and the aggregate number of Firm Shares
with respect to which such default occurs is more than
24
one-tenth of the aggregate number of Firm
Shares to be purchased, and if arrangements satisfactory to you, the Company and the Firm Share
Selling Stockholders for the purchase of such Firm Shares are not made within 36 hours after such
default, this Agreement shall terminate (other than with respect to (i) expenses to be borne by the
Company and the Underwriters as provided in Section 7 hereof and (ii) the indemnification and
contribution obligations of the Sellers and the Underwriters as provided in Section 8 hereof)
without liability on the part of any non-defaulting Underwriter, the Company or the Firm Share
Selling Stockholders. In any such case either you or the Company shall have the right to postpone
the Closing Date, but in no event for longer than seven (7) days, in order that the required
changes, if any, in the Registration Statement and in the Prospectus or in any other documents or
arrangements may be effected. If, on the Option Closing Date, any Underwriter or Underwriters
shall fail or refuse to purchase Additional Shares and the aggregate number of Additional Shares
with respect to which such default occurs is more than one-tenth of the aggregate number of Additional Shares to be purchased, the non-defaulting
Underwriters shall have the option to (i) terminate their obligation hereunder to purchase
Additional Shares or (ii) purchase not less than the number of Additional Shares that such
non-defaulting Underwriters would have been obligated to purchase in the absence of such default.
Any action taken under this paragraph shall not relieve any defaulting Underwriter from liability
to the Company and/or the non-defaulting Underwriters, as the case may be, arising out of or
related to any default of such Underwriter under this Agreement.
If this Agreement shall be terminated by the Underwriters, or any of them, because of any failure
or refusal on the part of any Seller to comply with the terms or to fulfill any of the conditions
of this Agreement, or if for any reason any Seller shall be unable to perform its obligations under
this Agreement, the Sellers will reimburse the Underwriters or such Underwriters as have so
terminated this Agreement with respect to themselves, severally, for all out of pocket expenses
(including the reasonable fees and disbursements of their counsel) reasonably incurred by such
Underwriters in connection with this Agreement or the offering contemplated hereunder.
12. Counterparts. This Agreement may be signed in counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.
13. Headings; Table of Contents. The headings of the sections of this Agreement
and the table of contents have been inserted for convenience of reference only and shall not be
deemed a part of this Agreement.
14. Notices. All communications hereunder shall be in writing and shall be
mailed, hand delivered or telecopied and confirmed to the parties hereto as follows:
If to the Representatives:
Xxxxxx Xxxxxx Partners LLC
Xxx Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxx Xxxxxxxxx
Xxx Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxx Xxxxxxxxx
with a copy to:
Xxxxxx Xxxxxx Partners LLC
Xxx Xxxxxxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxxxxx Xxxxxx, Xxxxx 0000
00
Xxx Xxxxxxxxx, Xxxxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxx Xxxxxxx, Esq.
Facsimile: (000) 000-0000
Attention: Xxxx Xxxxxxx, Esq.
If to the Company:
Vocus, Inc.
0000 Xxxxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxxxx Xxxxxx
0000 Xxxxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxxxx Xxxxxx
with a copy to:
Xxxxxxxxx Xxxxxxx, LLP
000 Xxxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxx, X.X. 00000
Facsimile: (000) 000-0000
Attention: Xxxxxxx X. Xxxxxxx, Esq.
000 Xxxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxx, X.X. 00000
Facsimile: (000) 000-0000
Attention: Xxxxxxx X. Xxxxxxx, Esq.
If to the Selling Stockholders:
American Stock Transfer & Trust Company
00 Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxx Xxxxxx
00 Xxxxxx Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxx Xxxxxx
Any party hereto may change the address for receipt of communications by giving written notice to
the others.
15. Successors. This Agreement will inure to the benefit of and be binding upon
the parties hereto, including any substitute Underwriters pursuant to Section 11 hereof, and to the
benefit of the officers and directors and controlling persons referred to in Section 8, and in each
case their respective successors, and no other person will have any right or obligation hereunder.
The term “successors” shall not include any purchaser of the Shares as such from any of the
Underwriters merely by reason of such purchase.
16. Partial Unenforceability. The invalidity or unenforceability of any Section,
paragraph or provision of this Agreement shall not affect the validity or enforceability of any
other Section, paragraph or provision hereof. If any Section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.
17. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED IN SUCH STATE.
18. Consent to Jurisdiction. Any legal suit, action or proceeding arising out of
or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”) must
be instituted in the federal
26
courts of the United States of America or the courts of the State of
New York in each case located in the City and County of New York (collectively, the “Specified
Courts”), and each party 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.
Service of any process, summons, notice or document by certified mail to such party’s address set
forth above shall be effective service of process for any suit, action or other proceeding brought
in any such court. The parties irrevocably and unconditionally waive any objection to the laying
of venue of any suit,
action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and
agree not to plead or claim in any such court that any such suit, action or other proceeding
brought in any such court has been brought in an inconvenient forum.
19. Failure of the Selling Stockholders to Sell and Deliver Shares . If one or
more of the Selling Stockholders shall fail to sell and deliver to the Underwriters the Shares to
be sold and delivered by such Selling Stockholders on the Closing Date or the Option Closing Date,
as the case may be, pursuant to this Agreement, then the Underwriters may at their option, by
written notice from the Representatives to the Company and the Selling Stockholders, either (i)
terminate the obligations hereunder to purchase the Shares, or (ii) purchase the Shares which the
other Selling Stockholders have agreed to sell and deliver in accordance with the terms hereof. In
any such case you shall have the right to postpone the Closing Date or the Option Closing Date, as
the case may be, but in no event for longer than seven (7) days in order that the required changes,
if any, to the Registration Statement and the Prospectus or any other documents or arrangements may
be effected.
20. Entire Agreement. This Agreement constitutes the entire agreement of the
parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof.
21. Amendments. This Agreement may only be amended or modified in writing,
signed by all of the parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit.
22. Sophisticated Parties. Each of the parties hereto acknowledges that it is a
sophisticated business person who was adequately represented by counsel during negotiations
regarding the provisions hereof, including, without limitation, the indemnification and
contribution provisions of Section 8, and is fully informed regarding said provisions. Each of the
parties hereto further acknowledges that the provisions of Section 8 hereto fairly allocate the
risks in light of the ability of the parties to investigate the Company, its affairs and its
business in order to assure that adequate disclosure has been made in the Registration Statement,
any preliminary prospectus and the Prospectus (and any amendments and supplements thereto), as
required by the Securities Act and the Exchange Act.
[Remainder of page intentionally left blank]
27
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.
Very truly yours, | ||||||||||
VOCUS, INC. | ||||||||||
By: | ||||||||||
Name: | Xxxxxxx Xxxxxx | |||||||||
Title: | Chief Executive Officer and President | |||||||||
The Selling Stockholders named in Schedule B hereto, acting severally | ||||||||||
By: | ||||||||||
Attorney-in-Fact | ||||||||||
The Selling Stockholders named in Schedule C hereto, acting severally | ||||||||||
By: | ||||||||||
Attorney-in-Fact | ||||||||||
Accepted as of the date hereof Xxxxxx Xxxxxx Partners LLC RBC Capital Markets Corporation Wachovia Capital Markets, LLC Xxxxxxx Xxxxx & Company, L.L.C. Canaccord Xxxxx Inc. Pacific Crest Securities Inc. Acting severally on behalf of themselves and the several Underwriters named in Schedule A hereto. |
||||||||||
By: | Xxxxxx Xxxxxx Partners LLC | |||||||||
By: | ||||||||||
Name: | ||||||||||
Title: |
28
SCHEDULE A
Number of Firm Shares | ||||
Underwriter | To Be Purchased | |||
Xxxxxx Xxxxxx Partners LLC |
||||
RBC Capital Markets Corporation |
||||
Wachovia Capital Markets, LLC |
||||
Xxxxxxx Xxxxx & Company, L.L.C. |
||||
Canaccord Xxxxx Inc. |
||||
Pacific Crest Securities Inc. |
||||
Total |
Schedule A-1
SCHEDULE B
Number of Firm Shares | ||||
Firm Share Selling Stockholder | To Be Purchased | |||
Xxxxxxx Xxxxxx |
||||
Xxxxxxx Xxxxx |
||||
Xxxxxx Xxxxx |
||||
Xxxxxxx Xxxxxx |
||||
Xxxxxx Xxxxxxxxx |
||||
Xxxxxxx Xxxxxxxx |
||||
Xxxxxxx Xxxxxxxx |
||||
Edison Venture Fund IV, X.X. |
||||
Xxxxxx Alternative Investments LLC as nominee for
Lazard Technology Partners II LP |
||||
Sterling Venture Partners, LP |
||||
Xxxxxxx Xxxxxx |
||||
Bas Brukx |
||||
Xxxxxx Xxxx |
||||
Xxxxxxx Xxxxx |
||||
Xxxxxxx Xxxxxx |
||||
Xxxxxx Xxxxxxx |
||||
Total: |
Schedule B-1
SCHEDULE C
Number of Additional Shares | ||||
Additional Share Selling Stockholder | To Be Purchased | |||
Xxxxxxx Xxxxxx |
||||
Xxxxxx Xxxxx |
||||
Edison Venture Fund IV, X.X. |
||||
Xxxxxx Alternative Investments LLC as nominee
for Lazard Technology Partners II LP |
||||
Sterling Venture Partners, LP |
||||
Total: |
Schedule C-1
SCHEDULE D
LIST OF ISSUER FREE WRITING PROSPECTUS
LIST OF ISSUER FREE WRITING PROSPECTUS
The Company issued a press release on March 26, 2007 announcing the Company’s filing of an
amendment to the Registration Statement filed with the SEC on March 2, 2007 for a follow-on public
offering and the reaffirmation of the guidance for the first quarter and full year 2007 initially
included in the Company’s press release dated February 5, 2007.
Schedule D-1
SCHEDULE E
Executive Selling Stockholders
Xxxxxxx Xxxxxx
Xxxxxxx Xxxxx
Xxxxxx Xxxxx
Xxxxxxx Xxxxxx
Xxxxxx Xxxxxxxxx
Schedule E-1