American Public Education, Inc. [ ] Shares of Common Stock1 Underwriting Agreement
Exhibit 1.1
American Public Education, Inc.
[ ] Shares of Common Stock1
[ ] Shares of Common Stock1
[ ], 2008
Xxxxxxx Xxxxx & Company, L.L.C.
As Representative of the Several
Underwriters Named in Schedule A
c/o Xxxxxxx Xxxxx & Company, L.L.C.
000 Xxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
As Representative of the Several
Underwriters Named in Schedule A
c/o Xxxxxxx Xxxxx & Company, L.L.C.
000 Xxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Ladies and Gentlemen:
Section 1. Introductory. American Public Education, Inc. (the “Company”), a Delaware
corporation, has an authorized capital stock consisting of 10,000,000 shares, $0.01 par value, of
Preferred Stock, of which no shares will be outstanding as of the First Closing Date hereinafter
defined, and 100,000,000 shares, $0.01 par value, of Common Stock (“Common Stock”), of which
[___] shares will be outstanding as of the First Closing Date hereinafter defined, excluding
shares of Common Stock issued upon the exercise after the date of this Agreement of stock options
outstanding as of the date of this Agreement. The Company proposes to issue and sell [ ] shares
of its authorized but unissued Common Stock, and certain stockholders of the Company (as named in
Schedule B, the “Selling Stockholders”) propose to sell in the aggregate [ ] shares of the
Company’s issued and outstanding Common Stock to the several underwriters named in Schedule A as it
may be amended by the Pricing Agreement hereinafter defined (“Underwriters”), who are acting
severally and not jointly. Collectively, such total of [ ] shares of Common Stock proposed
to be sold by the Company and the Selling Stockholders is hereinafter referred to as the “Firm
Shares.” In addition, certain of the Selling Stockholders propose to grant to the Underwriters
options to purchase up to an aggregate of [ ] additional shares of Common Stock (“Option
Shares”) as provided in Section 5 hereof. The Firm Shares and, to the extent such options are
exercised, the Option Shares, are hereinafter collectively referred to as the “Shares.”
You have advised the Company and the Selling Stockholders that the Underwriters propose to
make a public offering of their respective portions of the Shares as soon as you deem advisable
after the registration statement hereinafter referred to becomes effective, if it has not yet
become effective, and the Pricing Agreement hereinafter defined has been executed and delivered.
Prior to the purchase and public offering of the Shares by the several Underwriters, the
Company, the Selling Stockholders and the Representative, acting on behalf of the several
Underwriters, shall enter into an agreement substantially in the form of Exhibit A hereto (the
“Pricing Agreement”). The Pricing Agreement may take the form of an exchange of any standard form
of written telecommunication among the Company, the Selling Stockholders and the Representative and
shall
| 1 | Plus options to acquire up to an aggregate of [ ] additional shares to cover overallotments. |
specify such applicable information as is indicated in Exhibit A hereto. The offering of the
Shares will be governed by this Agreement, as supplemented by the Pricing Agreement. From and
after the date of the execution and delivery of the Pricing Agreement, this Agreement shall be
deemed to incorporate the Pricing Agreement.
The Company and the Selling Stockholders hereby confirm their agreement with the Underwriters
as follows:
Section 2. Representations and Warranties of the Company. The Company represents and
warrants to the several Underwriters that:
(a) A registration statement on Form S-1 (File No. 333-148851) and a related
preliminary prospectus with respect to the Shares have been prepared and filed with the
Securities and Exchange Commission (“Commission”) by the Company in conformity with the
requirements of the Securities Act of 1933, as amended, and the rules and regulations of the
Commission thereunder (collectively, the “1933 Act;” unless otherwise indicated all
references herein to specific rules are rules promulgated under the 0000 Xxx); and the
Company has so prepared and has filed such amendments thereto, if any, and such amended
preliminary prospectuses as may have been required to the date hereof and will file such
additional amendments thereto and such amended prospectuses as may hereafter be required.
The Company will prepare and file a prospectus pursuant to Rule 424(b) that discloses the
information previously omitted from the preliminary prospectus in reliance upon Rule 430A.
To the extent that the Representative requests, there have been or will promptly be
delivered to you one signed copy of such registration statement and amendments, one copy of
each exhibit filed therewith, and conformed copies of such registration statement and
amendments (but without exhibits) and of the related preliminary prospectus or prospectuses
and final forms of prospectus for each of the Underwriters.
Such registration statement (as amended, if applicable) at the time it becomes
effective and the prospectus constituting a part thereof (including the information, if any,
deemed to be part thereof pursuant to Rule 430A(b)), as from time to time amended or
supplemented, are hereinafter referred to as the “Registration Statement” and the
“Prospectus,” respectively, except that if any revised prospectus shall be provided to the
Underwriters by the Company for use in connection with the offering of the Shares which
differs from the Prospectus on file at the Commission at the time the Registration Statement
became or becomes effective (whether or not such revised prospectus is required to be filed
by the Company pursuant to Rule 424(b)), the term Prospectus shall refer to such revised
prospectus from and after the time it was provided to the Underwriters for such use. Any
registration statement (including any amendment or supplement thereto or information which
is deemed part thereof) filed by the Company under Rule 462(b) (“Rule 462(b) Registration
Statement”) shall be deemed to be part of the “Registration Statement” as defined herein,
and any prospectus (including any amendment or supplement thereto or information which is
deemed part thereof) included in such registration statement shall be deemed to be part of
the “Prospectus” as defined herein, as appropriate. The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission thereunder are hereinafter
collectively referred to as the “Exchange Act.” Any document filed by the Company under the
Exchange Act prior to the date hereof or during the offering period, when such document was
or is filed with the Commission, conformed or will conform in all material respects to the
requirements of the Exchange Act, and none of such documents contained or will contain, as
of the date such document was or is filed with the Commission, any untrue statement of a
material fact or omitted or will omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading.
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(b) The Commission has not issued any order preventing or suspending the use of any
preliminary prospectus, and each preliminary prospectus has conformed in all material
respects with the requirements of the 1933 Act and, as of its date, has not included any
untrue statement of a material fact or omitted to state a material fact necessary to make
the statements therein, in light of the circumstances in which they were made, not
misleading; and when the Registration Statement became or becomes effective, and at all
times subsequent thereto, up to the First Closing Date or the Second Closing Date
hereinafter defined, as the case may be, the Registration Statement, including the
information deemed to be part of the Registration Statement at the time of effectiveness
pursuant to Rule 430A(b), if applicable, and the Prospectus and any amendments or
supplements thereto, in all material respects conformed or will in all material respects
conform to the requirements of the 1933 Act, and neither the Registration Statement nor the
Prospectus, nor any amendment or supplement thereto, included or will include any untrue
statement of a material fact or omitted or will omit to state a material fact, in the case
of the Registration Statement or any amendment or supplement thereto, required to be stated
therein or necessary to make the statements therein not misleading and, in the case of the
Prospectus, or any amendment or supplement thereto, necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading.
As of the Applicable Time hereinafter defined, neither (x) the Issuer General Use Free
Writing Prospectus(es) hereinafter defined issued at or prior to the Applicable Time, the
Statutory Prospectus hereinafter defined as of the Applicable Time and the information in
Schedule A to the Pricing Agreement, all being considered together (collectively, the
“Disclosure Package”) nor (y) any individual Issuer Limited Use Free Writing Prospectus
hereinafter defined issued at or prior to the Applicable Time, when considered together with
the Disclosure Package, included any untrue statement of a material fact or omitted to state
a material fact necessary to make the statements therein not misleading.
As used in this Section 2(b) and elsewhere in this Agreement:
“Applicable Time” means [___] [A/P].M., Chicago Time, on [INSERT DATE OF THIS
AGREEMENT] or such other time as agreed by the Company, the Selling Stockholders and the
Representative.
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined
in Rule 433, relating to the Shares that (i) is required to be filed with the Commission by
the Company, (ii) is a “road show for an offering that is a written communication” within
the meaning of Rule 433(d)(8)(i) or (iii) is exempt from filing pursuant to Rule
433(d)(5)(i) because it contains a description of the Shares or of the offering thereof that
does not reflect the final terms, in each case in the form filed or required to be filed
with the Commission or, if not required to be filed, in the form required to be retained in
the Company’s records pursuant to Rule 433(g).
“Issuer General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus
specified in Schedule B hereto.
“Issuer Limited Use Free Writing Prospectus” means any Issuer Free Writing Prospectus
that is not an Issuer General Use Free Writing Prospectus.
“Statutory Prospectus” as of any time means the prospectus relating to the Shares that
is included in the Registration Statement immediately prior to that time.
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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
that the Company notified or notifies the Representative as described in Section 6(d), did
not, does not and will not include any information that conflicted, conflicts or will
conflict with the information contained in the Registration Statement or the Prospectus, and
any preliminary or other prospectus deemed to be a part thereof that has not been superseded
or modified.
Notwithstanding the foregoing, the representations and warranties of the Company set
forth in this Section 2(b) shall not apply to information contained in or omitted from any
preliminary prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing
Prospectus or any amendment or supplement thereto in reliance upon and in conformity with
written information furnished to the Company by or on behalf of any Underwriter through the
Representative specifically for use in the preparation thereof.
At the time of filing the Registration Statement, any 462(b) Registration Statement and
any post-effective amendments thereto and at the date of this Agreement, the Company was not
and is not an “ineligible issuer” as defined in Rule 405.
(c) The Company and its subsidiaries have been duly incorporated and are validly
existing as corporations in good standing under the laws of their respective places of
incorporation, with corporate power and authority to own their properties and conduct their
business as described in the Prospectus; the Company and each of its subsidiaries are duly
qualified to do business as foreign corporations under the corporation law of, and are in
good standing as such in, each jurisdiction in which they own or lease substantial
properties, have an office, or in which substantial business is conducted and such
qualification is required except in any such case where the failure to so qualify or be in
good standing would not reasonably be expected to have a material adverse effect upon the
Company and its subsidiaries taken as a whole; and no proceeding of which the Company has
knowledge has been instituted in any such jurisdiction, revoking, limiting or curtailing, or
seeking to revoke, limit or curtail, such power and authority or qualification. The State
of West Virginia and the Commonwealth of Virginia are the only jurisdictions in which the
Company or any of its subsidiaries maintains an office or leases property.
(d) Except as disclosed in the Registration Statement, the Company owns directly or
indirectly 100 percent of the issued and outstanding capital stock of each of its
subsidiaries, free and clear of any claims, liens, encumbrances or security interests and
all of such capital stock has been duly authorized and validly issued and is fully paid and
nonassessable.
(e) The issued and outstanding shares of capital stock of the Company as set forth in
the Prospectus, including the outstanding Shares to be sold by the Selling Stockholders,
have been duly authorized and validly issued, are fully paid and nonassessable, and conform
to the description thereof contained in the Prospectus. The Shares to be sold by the
Selling Stockholders designated in Schedule B as being subject to unexercised options held
by Selling Stockholders have been duly authorized and, upon exercise of such options, with
respect to which valid and irrevocable exercise notices from the applicable Selling
Stockholders have been received by the Company, will be validly issued, fully paid and
nonassessable and conform to the description thereof contained in the Prospectus.
(f) The Shares to be sold by the Company have been duly authorized and when issued,
delivered and paid for pursuant to this Agreement, will be validly issued, fully paid and
nonassessable, and will conform to the description thereof contained in the Prospectus.
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(g) The making and performance by the Company of this Agreement and the Pricing
Agreement have been duly authorized by all necessary corporate action and will not (i)
violate the Company’s charter or bylaws, (ii) result, except as would not reasonably be
expected to have a material adverse effect on the Company and its subsidiaries taken as a
whole, in a breach or violation of any of the terms and provisions of, or constitute a
default or change of control under (A) any agreement, franchise, license, indenture,
mortgage, deed of trust, or other instrument to which the Company or any subsidiary is a
party or by which the Company, any subsidiary or the property of any of them may be bound or
affected, or (B) any statute, rule, regulation or order applicable to the Company or any of
its subsidiaries of any court, regulatory body, accrediting agency, administrative agency or
other governmental body having jurisdiction over the Company or any subsidiary or any of
their respective properties, including, without limitation, the Higher Education Act of
1965, as amended (the “HEA”), or any order of any court, regulatory body, accrediting
agency, administrative agency or other governmental body entered in any proceeding to which
the Company or any subsidiary was or is now a party or by which it is bound. No consent,
approval, authorization or other order of any court, regulatory body, accrediting agency,
administrative agency or other governmental body is required for the execution and delivery
of this Agreement or the Pricing Agreement or the consummation of the transactions
contemplated herein or therein, except for compliance with the 1933 Act and blue sky laws
applicable to the public offering of the Shares by the several Underwriters and clearance of
such offering with the Financial Industry Regulatory Authority (“FINRA”). This Agreement
has been duly executed and delivered by the Company.
(h) The accountants who have expressed their opinions with respect to certain of the
financial statements and schedules included in the Registration Statement are an independent
registered public accounting firm as required by the 1933 Act and such accountants are not
in violation of the auditor independence requirements of the Xxxxxxxx-Xxxxx Act of 2002 (the
“Xxxxxxxx-Xxxxx Act”).
(i) The consolidated financial statements of the Company included in the Registration
Statement, the Disclosure Package and the Prospectus present fairly in all material respects
the consolidated financial position of the Company as of the respective dates of such
financial statements, and the consolidated statements of operations and cash flows of the
Company for the respective periods covered thereby, all in conformity with generally
accepted accounting principles consistently applied throughout the periods involved, except
as disclosed therein.
The financial information set forth in the Prospectus under “Summary Consolidated
Financial and Operating Data” and “Selected Consolidated Financial and Operating Data”
presents fairly in all material respects on the basis stated in the Prospectus, the
information set forth therein.
The pro forma financial statements and other pro forma information included in the
Registration Statement, the Disclosure Package and the Prospectus present fairly the
information shown therein, have been prepared in accordance with generally accepted
accounting principles and the Commission’s rules and guidelines with respect to pro forma
financial statements and other pro forma information, have been properly compiled on the pro
forma basis described therein, and, in the opinion of the Company, the assumptions used in
the preparation thereof are reasonable and the adjustments used therein are appropriate
under the circumstances.
All disclosures contained in the Registration Statement, the Disclosure Package and the
Prospectus regarding “non-GAAP financial measures” (as such term is defined by the
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Commission’s rules and regulations) comply with Regulation G of the Exchange Act and
Item 10 of Regulation S-K under the 1933 Act, to the extent applicable.
(j) Neither the Company nor any subsidiary is in violation of its charter or in default
under any consent decree, or in default with respect to any material provision of any lease,
loan agreement, franchise, license, permit or other contract obligation to which it is a
party; and, to the Company’s knowledge, there does not exist any state of facts which
constitutes an event of default as defined in such documents or which, with notice or lapse
of time or both, would constitute such an event of default, in each case, except for
defaults that neither singly nor in the aggregate are material to the Company and its
subsidiaries taken as a whole.
(k) There are no material legal, governmental or accrediting agency proceedings
pending, or to the Company’s knowledge, threatened to which the Company or any subsidiary is
or may be a party or of which material property owned or leased by the Company or any
subsidiary is or may be the subject, or related to environmental or discrimination matters
that are not disclosed in the Prospectus, or that question the validity of this Agreement or
the Pricing Agreement or any action taken or to be taken pursuant hereto or thereto.
(l) There are no holders of securities of the Company having rights to registration
thereof or preemptive rights to purchase Common Stock except as disclosed in the Prospectus.
Except for the Selling Stockholders (to the extent such Selling Stockholders hold Shares to
be registered pursuant to the Registration Statement), all holders of registration rights
have waived such rights with respect to the offering being made by the Prospectus.
(m) The Company and each of its subsidiaries have good and marketable title to all the
properties and assets reflected as owned in the financial statements hereinabove described
(or elsewhere in the Prospectus), except to the extent that such properties and assets were
disposed of in the ordinary course of business after the date of such financial statements,
subject to no lien, mortgage, pledge, charge or encumbrance of any kind except those, if
any, reflected in such financial statements (or elsewhere in the Prospectus) or that are not
material to the Company and its subsidiaries taken as a whole. The Company and each of its
subsidiaries hold their respective leased properties that are material to the Company and
its subsidiaries taken as a whole under valid and binding leases.
(n) The Company has not taken and will not take, directly or indirectly, any action
designed to or which has constituted or which might reasonably be expected to cause or
result, under the Exchange Act or otherwise, in stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Shares.
(o) Subsequent to the respective dates as of which information is given in the
Registration Statement, the Disclosure Package and the Prospectus, and except as
contemplated by the Prospectus, the Company and its subsidiaries, taken as a whole, have not
incurred any material liabilities or obligations, direct or contingent, or entered into any
material transactions not in the ordinary course of business and there has not been any
material adverse change in their condition (financial or otherwise) or results of operations
nor any material change in their capital stock, short-term debt or long-term debt.
(p) There is no material document of a character required to be described in the
Registration Statement, the Disclosure Package or the Prospectus or to be filed as an
exhibit to the Registration Statement which is not described or filed as required.
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(q) Except as disclosed in the Prospectus, the Company together with its subsidiaries
owns and possesses all right, title and interest in and to, or has duly licensed from third
parties, all patents, patent rights, trade secrets, inventions, know-how, trademarks, trade
names, copyrights, service marks and other proprietary rights (“Trade Rights”) material to
the business of the Company and each of its subsidiaries taken as a whole. Neither the
Company nor any of its subsidiaries has received any notice of infringement,
misappropriation or conflict from any third party as to such material Trade Rights which has
not been resolved or disposed of and neither the Company nor any of its subsidiaries has
infringed, misappropriated or otherwise conflicted with material Trade Rights of any third
parties, which infringement, misappropriation or conflict would reasonably be expected to
have a material adverse effect upon the condition (financial or otherwise) or results of
operations of the Company and its subsidiaries taken as a whole.
(r) The conduct of the business of the Company and each of its subsidiaries is in
compliance in all respects with applicable federal, state, local and foreign laws and
regulations and with applicable accrediting agency rules, except where the failure to be in
compliance would not reasonably be expected to have a material adverse effect upon the
condition (financial or otherwise) or results of operations of the Company and its
subsidiaries taken as a whole.
(s) The Company and its subsidiaries possess certificates, authorizations,
accreditations or permits issued by appropriate governmental agencies or bodies or
accrediting agencies necessary to conduct the business now operated by them (except where
the failure to do so, individually or in the aggregate, would not reasonably be expected to
have a material adverse effect on the Company and its subsidiaries, taken as a whole),
including, without limitation, all authorizations required to participate in federal
financial aid programs under Title IV of the HEA, and have not received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization, accreditation or permit that, if determined adversely to the Company or its
subsidiaries, would, individually or in the aggregate, reasonably be expected to have a
material adverse effect on the Company and its subsidiaries, taken as a whole.
(t) All offers and sales of the Company’s capital stock prior to the date hereof were
either (i) made pursuant to a registration statement filed by the Company with the
Commission under the 1933 Act or (ii) at all relevant times exempt from the registration
requirements of the 1933 Act and, in each case, all such offers and sales during the twelve
months prior to the date hereof were duly registered with or the subject of an available
exemption from the registration requirements of the applicable state and local securities or
blue sky laws.
(u) The Company has filed all necessary federal, state and local income and franchise
tax returns that were required to be filed prior to the date hereof, after taking into
account all applicable extensions obtained, except where the failure to file would not
reasonably be expected to have a material adverse effect upon the condition (financial or
otherwise) or results of operations of the Company and its subsidiaries taken as a whole,
and has paid all taxes shown as due thereon, and there is no tax deficiency that has been,
or to the knowledge of the Company might be, asserted against the Company or any of its
properties or assets that would reasonably be expected to have a material adverse effect
upon the condition (financial or otherwise) or results of operations of the Company and its
subsidiaries taken as a whole.
(v) A registration statement pursuant to Section 12(b) of the Exchange Act to register
the Common Stock thereunder has been declared effective by the Commission pursuant to the
Exchange Act, and the Common Stock is duly registered thereunder. The Shares are listed on
The NASDAQ Global Market.
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(w) The Company has established and maintains disclosure controls and procedures (as
defined in Rules 13a-15 and 15d-15 under the Exchange Act) and such controls and procedures
are effective in ensuring that material information relating to the Company, including its
subsidiaries, is made known to the principal executive officer and the principal financial
officer. The Company has utilized such controls and procedures to the extent applicable in
preparing and evaluating the disclosures relating to the Company included in the
Registration Statement, the Disclosure Package and the Prospectus.
(x) The Company maintains 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 accountability for assets; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv)
amounts reflected on the Company’s consolidated balance sheet for assets are compared with
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.
(y) The Company is not, and does not intend to conduct its business in a manner in
which it would become, an “investment company” as defined in Section 3(a) of the Investment
Company Act of 1940, as amended (“Investment Company Act”).
(z) No transaction has occurred between or among the Company and any of its officers or
directors, stockholders or any affiliate or affiliates of any such officer or director or
stockholder that is required to be described in and is not described in the Registration
Statement and the Prospectus.
(aa) The Company’s board of directors has validly appointed an audit committee whose
composition satisfies the requirements of Rule 4350(d)(2) of the Rules of NASD (the “NASD
Rules”), and the board of directors or the audit committee has adopted a charter that
satisfies the requirements of Rule 4350(d)(1) of the NASD Rules.
(bb) The Company and its subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are customary in the
businesses in which they are engaged or propose to engage after giving effect to the
transactions described in the Prospectus. To the knowledge of the Company, all policies of
insurance and fidelity or surety bonds insuring the Company, its subsidiaries and their
respective businesses, assets, employees, officers and directors are in full force and
effect; and the Company and its subsidiaries are in compliance with the terms of such
policies and instruments in all material respects.
(cc) The Company is in compliance in all material respects with all applicable
provisions of the Xxxxxxxx-Xxxxx Act and all rules and regulations promulgated thereunder,
and is actively taking steps to ensure that it will be in compliance in all material
respects with other provisions of the Xxxxxxxx-Xxxxx Act that will become applicable to the
Company.
(dd) None of the Company and its subsidiaries is involved in any labor dispute nor, to
the knowledge of the Company, is any such dispute threatened. The Company is not aware of
any threatened or pending litigation between the Company and any of its executive officers
and, except as disclosed in the Prospectus, has not received notice from any of its
executive officers that such officer does not intend to remain in the employment of the
Company.
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Section 3. Representations, Warranties and Covenants of the Selling Stockholders.
(a) Each of the Selling Stockholders, severally and not jointly, represents and
warrants to, and agrees with, the Company and the Underwriters that:
(i) Such Selling Stockholder (1) has (or, if the Shares to be sold by such
Selling Stockholder are designated in Schedule B as being subject to unexercised
options, will have prior to the time for delivery of Shares hereunder upon the
exercise of valid options held by such Selling Stockholder with respect to which an
irrevocable exercise notice has been delivered to the Company) valid and marketable
title to the Shares proposed to be sold by such Selling Stockholder hereunder, (2)
on the First Closing Date or the Second Closing Date hereinafter defined, as the
case may be, will have good and valid title to the Shares proposed to be sold by
such Selling Stockholder hereunder on such date and (3) has full right, power and
authority to enter into this Agreement and the Pricing Agreement and to sell,
assign, transfer and deliver such Shares hereunder, free and clear of all voting
trust arrangements, liens, encumbrances, equities, claims and community property
rights; and upon delivery of and payment for such Shares hereunder, the Underwriters
will acquire valid marketable title thereto, free and clear of all voting trust
arrangements, liens, encumbrances, equities, claims and community property rights.
(ii) Such Selling Stockholder has not taken and will not take, directly or
indirectly, any action designed to or which might be reasonably expected to cause or
result, under the Exchange Act or otherwise, in stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Shares.
(iii) Such Selling Stockholder has duly executed and delivered a Power of
Attorney (“Power of Attorney”) between the Selling Stockholder and the person or
persons indicated as an Agent opposite such Selling Stockholder’s name on Schedule B
hereto (each, an “Agent”), naming the Agent as such Selling Stockholder’s
attorney-in-fact for the purpose of entering into and carrying out this Agreement
and the Pricing Agreement, and an executed copy of the Power of Attorney has been
delivered to you.
(iv) Such Selling Stockholder has deposited (or, if the Shares to be sold by
such Selling Stockholder are designated in Schedule B as being subject to
unexercised options, will deposit or cause to be deposited prior to the time for
delivery of Shares hereunder upon the exercise of valid options held by such Selling
Stockholder with respect to which an irrevocable exercise notice has been delivered
to the Company) in custody, under a Custody Agreement (“Custody Agreement”) with
American Stock Transfer & Trust Company, as custodian (“Custodian”), certificates in
negotiable form or share transfer deeds, as applicable, for the Shares to be sold
hereunder by such Selling Stockholder, for the purpose of further delivery pursuant
to this Agreement. Such Selling Stockholder agrees that the Shares to be sold by
such Selling Stockholder on deposit (or to be on deposit) with the Custodian are
subject to the interests of the Company, the Underwriters and the other Selling
Stockholders, that the arrangements made for such custody, and the appointment of
the Agent pursuant to the Power of Attorney, are to that extent irrevocable, and
that the obligations of such Selling Stockholder hereunder and under the Power of
Attorney and the Custody Agreement shall not be terminated except as provided in
this Agreement, the Power of Attorney or the Custody Agreement by any act of such
Selling Stockholder, by operation of law, whether, in the case of an individual
Selling Stockholder, by the death or incapacity of such Selling Stockholder or, in
the case of a trust or estate, by the death of the trustee or trustees or the
executor or executors or
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the termination of such trust or estate, or, in the case of a partnership or
corporation, by the dissolution, winding-up or other event affecting the legal life
of such entity, or by the occurrence of any other event. If any individual Selling
Stockholder, trustee or executor should die or become incapacitated, or any such
trust, estate, partnership or corporation should be terminated, or if any other
event should occur before the delivery of the Shares hereunder, the documents
evidencing Shares then on deposit with the Custodian shall be delivered by the
Custodian in accordance with the terms and conditions of this Agreement as if such
death, incapacity, termination or other event had not occurred, regardless of
whether or not the Custodian shall have received notice thereof. The applicable
Agent has been authorized by such Selling Stockholder to execute and deliver this
Agreement and the Pricing Agreement and the Custodian has been authorized to receive
and acknowledge receipt of the proceeds of sale of the Shares to be sold by such
Selling Stockholder against delivery thereof and otherwise act on behalf of such
Selling Stockholder. The Custody Agreement has been duly executed by or on behalf
of such Selling Stockholder, and a copy thereof has been delivered to you.
(v) To the extent that any statements or omissions made in a preliminary
prospectus are made in reliance upon and in conformity with written information
relating to such Selling Stockholder furnished to the Company by such Selling
Stockholder expressly for use therein, each preliminary prospectus, as of its date,
has not included any untrue statement of a material fact or omitted to state a
material fact necessary to make the statements therein not misleading; and, to the
extent that any statements or omissions made in the Registration Statement or the
Prospectus or any amendment or supplement thereto are made in reliance upon and in
conformity with written information relating to such Selling Stockholder furnished
to the Company by such Selling Stockholder expressly for use therein, neither the
Registration Statement nor the Prospectus, nor any amendment or supplement thereto,
as it relates to such Selling Stockholder included or will include any untrue
statement of a material fact or omitted or will omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading. The parties hereto agree that the information relating to such Selling
Stockholder set forth under the caption “Beneficial Ownership of Common Stock and
Selling Stockholders” and the footnotes thereunder (excluding any percentages set
forth therein) is the only information made in reliance upon and in conformity with
written information relating to such Selling Stockholder furnished to the Company by
such Selling Stockholder expressly for use in any preliminary prospectus, the
Registration Statement and Prospectus and any amendment or supplement thereto.
In order to document the Underwriters’ compliance with the reporting and withholding
provisions of the Internal Revenue Code of 1986, as amended, with respect to the transactions
herein contemplated, each of the Selling Stockholders agrees to deliver to you prior to or on the
First Closing Date, as hereinafter defined, a properly completed and executed United States
Treasury Department Form W-8 or W-9 (or other applicable form of statement specified by Treasury
Department regulations in lieu thereof).
Section 4. Representations and Warranties of the Underwriters. The Representative,
on behalf of the several Underwriters, represents and warrants to the Company and the Selling
Stockholders that the information set forth (a) on the cover page of the Prospectus with respect to
price, underwriting discount and terms of the offering and (b) in paragraphs 3, 12, 13 and 14 under
“Underwriting” in the Prospectus was furnished to the Company by and on behalf of the Underwriters
for use in connection with the preparation of the Registration Statement and is correct and
complete in all material respects.
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Section 5. Purchase, Sale and Delivery of Shares. On the basis of the
representations, warranties and agreements herein contained, but subject to the terms and
conditions herein set forth, the Company and each of the Selling Stockholders, severally and not
jointly, agrees to sell to the Underwriters named in Schedule A hereto, and the Underwriters agree,
severally and not jointly, to purchase from the Company and the Selling Stockholders, respectively,
25,000 Firm Shares in the case of the Company and the number of Firm Shares set forth opposite the
name of each Selling Stockholder in Schedule B hereto in the case of the Selling Stockholders at
the price per share set forth in the Pricing Agreement. The obligation of each Underwriter to the
Company shall be to purchase from the Company that number of Firm Shares which (as nearly as
practicable, as determined by you) bears to 25,000, the same proportion as the number of Firm
Shares set forth opposite the name of such Underwriter in Schedule A hereto bears to the total
number of Firm Shares to be purchased by all Underwriters under this Agreement. The obligation of
each Underwriter to each of the Selling Stockholders shall be to purchase from such Selling
Stockholder that number of full shares which (as nearly as practicable, as determined by you) bears
to the number of Firm Shares set forth opposite the name of such Selling Stockholder in Schedule B
hereto, the same proportion as the number of Firm Shares set forth opposite the name of such
Underwriter in Schedule A hereto bears to the total number of Firm Shares to be purchased by all
Underwriters under this Agreement. The public offering price and the purchase price shall be set
forth in the Pricing Agreement.
At 9:00 A.M., Chicago Time, on the fourth business day, if permitted under Rule 15c6-1 under
the Exchange Act, (or the third business day if required under Rule 15c6-1 under the Exchange Act
or unless postponed in accordance with the provisions of Section 12) following the date the
Registration Statement becomes effective (or, if the Company has elected to rely upon Rule 430A,
the fourth business day, if permitted under Rule 15c6-1 under the Exchange Act, (or the third
business day if required under Rule 15c6-1 under the Exchange Act) after execution of the Pricing
Agreement), or such other time not later than ten business days after such date as shall be agreed
upon by the Representative and the Company, the Company and the Custodian will deliver to you at
the offices of counsel for the Underwriters or through the facilities of The Depository Trust
Company for the accounts of the several Underwriters, certificates representing the Firm Shares to
be sold by them, against payment of the purchase price therefor by delivery of federal or other
immediately available funds, by wire transfer or otherwise, to the Company and the Custodian. Such
time of delivery and payment is herein referred to as the “First Closing Date.” The certificates
for the Firm Shares to be so delivered will be in such denominations and registered in such names
as you request by notice to the Company and the Custodian prior to 10:00 A.M., Chicago Time, on the
second business day preceding the First Closing Date, and will be made available at the Company’s
expense for checking and packaging by the Representative at 10:00 A.M., Chicago Time, on the
business day preceding the First Closing Date. Payment for the Firm Shares so to be delivered
shall be made at the time and in the manner described above at the offices of counsel for the
Underwriters.
In addition, on the basis of the representations, warranties and agreements herein contained,
but subject to the terms and conditions herein set forth, the Selling Stockholders designated on
Exhibit B hereby grant, severally and not jointly, options to the several Underwriters to purchase,
severally and not jointly, up to an aggregate of
[ ] Option Shares, at the same purchase price
per share to be paid for the Firm Shares, for use solely in covering any overallotments made by the
Underwriters in the sale and distribution of the Firm Shares. The options granted hereunder may be
exercised at any time (but not more than once) within 30 days after the date of the Prospectus
first filed by the Company pursuant to Rule 424(b) under the 1933 Act (the “Rule 424 Prospectus”)
upon notice by you to the Company and the Agent setting forth the aggregate number of Option Shares
as to which the Underwriters are exercising the option, the names and denominations in which the
certificates for such shares are to be registered and the time and place at which such certificates
will be delivered. Such time of delivery (which may not be earlier than the First Closing Date),
being herein referred to as the “Second
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Closing Date,” shall be determined by you, but if at any time other than the First Closing
Date, shall not be earlier than three nor later than 10 full business days after delivery of such
notice of exercise. If all of the Option Shares are purchased, the number of Option Shares to be
purchased from each Selling Stockholder is set forth in Schedule B hereto. If less than all of the
Option Shares are purchased, the number of Option Shares to be purchased from each of the Selling
Stockholders shall be reduced from such maximum number on a pro rata basis (as nearly as
practicable, as determined by you). The number of Option Shares to be purchased by each
Underwriter shall be determined by multiplying the number of Option Shares to be sold by the
Selling Stockholders by a fraction, the numerator of which is the number of Firm Shares to be
purchased by such Underwriter as set forth opposite its name in Schedule A and the denominator of
which is the total number of Firm Shares (subject to such adjustments to eliminate any fractional
share purchases as you in your absolute discretion may make). Certificates for the Option Shares
will be made available at the Company’s expense for checking and packaging at 10:00 A.M., Chicago
Time, on the first full business day preceding the Second Closing Date. The manner of payment for
and delivery of the Option Shares shall be the same as for the Firm Shares as specified in the
preceding paragraph.
You have advised the Company and the Selling Stockholders that each Underwriter has authorized
you to accept delivery of its Shares, to make payment and to acknowledge receipt therefor. You,
individually and not as the Representative of the Underwriters, may make payment for any Shares to
be purchased by any Underwriter whose funds shall not have been received by you by the First
Closing Date or the Second Closing Date, as the case may be, for the account of such Underwriter,
but any such payment shall not relieve such Underwriter from any obligation hereunder.
You hereby waive the applicability of Section 5(o) of the Underwriting Agreement dated
November 8, 2007 between you and the Company and the lockup letters executed by each of the Selling
Stockholders in connection with the offering thereunder (collectively, the “Lockup Restrictions”)
to the execution, delivery and performance of this Agreement and all actions taken in furtherance
thereof (it being understood and agreed that the Lockup Restrictions shall remain in effect for all
other purposes).
Section 6. Covenants of the Company. The Company, and in the case of Section 6(h),
each of the Selling Stockholders, covenants and agrees that:
(a) The Company will advise you and each of the Selling Stockholders promptly of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of the institution of any proceedings for that purpose, or of any
notification of the suspension of qualification of the Shares for sale in any jurisdiction
or the initiation or threatening of any proceedings for that purpose or of any examination
pursuant to Section 8(e) of the 1933 Act concerning the Registration Statement and if the
Company becomes the subject of a proceeding under Section 8A of the 1933 Act in connection
with the offering of the Shares, and will also advise you and each of the Selling
Stockholders promptly of any request of the Commission for amendment or supplement of the
Registration Statement, of any preliminary prospectus or of the Prospectus, or for
additional information.
(b) The Company will give you and each of the Selling Stockholders notice of its
intention to file or prepare any amendment to the Registration Statement (including any
post-effective amendment) or any Rule 462(b) Registration Statement or any amendment or
supplement to the Prospectus (including any revised prospectus which the Company proposes
for use by the Underwriters in connection with the offering of the Shares which differs from
the prospectus on file at the Commission at the time the Registration Statement became or
becomes effective, whether or not such revised prospectus is required to be filed pursuant
to Rule 424(b)) and will furnish you and each of the Selling Stockholders with copies of any
such amendment or
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supplement a reasonable amount of time prior to such proposed filing or use, as the
case may be, and will not file any such amendment or supplement or use any such prospectus
to which you or counsel for the Underwriters shall reasonably object.
(c) If at any time when a prospectus relating to the Shares is required to be delivered
under the 1933 Act any event occurs as a result of which the Prospectus, including any
amendments or supplements, would include an untrue statement of a material fact, or omit to
state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, or if it
is necessary at any time to amend the Prospectus, including any amendments or supplements
thereto and including any revised prospectus which the Company proposes for use by the
Underwriters in connection with the offering of the Shares which differs from the prospectus
on file with the Commission at the time of effectiveness of the Registration Statement,
whether or not such revised prospectus is required to be filed pursuant to Rule 424(b) to
comply with the 1933 Act, the Company promptly will advise you thereof and will promptly
prepare and file with the Commission an amendment or supplement which will correct such
statement or omission or an amendment which will effect such compliance; and, in case any
Underwriter is required to deliver a prospectus nine months or more after the effective date
of the Registration Statement, the Company upon request, but at the expense of such
Underwriter, will prepare promptly such prospectus or prospectuses as may be necessary to
permit compliance with the requirements of Section 10(a)(3) of the 1933 Act.
(d) If at any time following the 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 contained in the Registration
Statement or included or would include an untrue statement of a material fact or omitted or
would omit to state a material fact necessary to make the statements therein, in light of
the circumstances prevailing at that subsequent time, not misleading, the Company will
promptly notify the Representative and will promptly amend or supplement, at its own
expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue
statement or omission.
(e) Neither the Company nor any of its subsidiaries will acquire any capital stock of
the Company prior to the earlier of the Second Closing Date or termination or expiration of
the related options nor will the Company declare or pay any dividend or make any other
distribution upon the Common Stock payable to stockholders of record on a date prior to the
earlier of the Second Closing Date or termination or expiration of the related option,
except in either case as contemplated by the Prospectus.
(f) As soon as practicable, but not later than March 16, 2010 the Company will make
generally available to its security holders an earnings statement (which need not be
audited) covering a period of at least 12 months beginning after the effective date of the
Registration Statement, which will satisfy the provisions of the last paragraph of Section
11(a) of the 1933 Act.
(g) During such period as a prospectus is required by law to be delivered in connection
with offers and sales of the Shares by an Underwriter or dealer, upon your request, the
Company will furnish to you at its expense, subject to the provisions of subsection (d)
hereof, copies of the Registration Statement, the Prospectus, any Permitted Free Writing
Prospectus hereinafter defined, each preliminary prospectus and all amendments and
supplements to any such documents in each case as soon as available and in such quantities
as you may reasonably request, for the purposes contemplated by the 1933 Act.
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(h) The Company and the Selling Stockholders will cooperate with the Underwriters in
qualifying or registering the Shares for sale under the blue sky laws of such jurisdictions
as you designate, and will continue such qualifications in effect so long as reasonably
required for the distribution of the Shares. The Company shall not be required to qualify
as a foreign corporation or to file a general consent to service of process in any such
jurisdiction where it is not currently qualified or where it would be subject to taxation as
a foreign corporation.
(i) Upon the request of the Representative and to the extent not publicly available on
the Commission’s XXXXX database, during the period of five years hereafter, the Company will
furnish you and each of the other Underwriters with a copy (i) as soon as practicable after
the filing thereof, of each report filed by the Company with the Commission, any securities
exchange or FINRA; (ii) as soon as practicable after the release thereof, of each material
press release in respect of the Company that is not disseminated via the Company’s website
or a national news service; and (iii) as soon as available, of each report of the Company
mailed to stockholders.
(j) The Company will use the proceeds received by it from the sale of the Shares being
sold by it in the manner specified in the Prospectus.
(k) If, at the time of effectiveness of the Registration Statement, any information
shall have been omitted therefrom in reliance upon Rule 430A, then promptly following the
execution of the Pricing Agreement, the Company will prepare, and file or transmit for
filing with the Commission in accordance with such Rule 430A and Rule 424(b), copies of an
amended Prospectus, or, if required by such Rule 430A, a post-effective amendment to the
Registration Statement (including an amended Prospectus), containing all information so
omitted. If required, the Company will prepare and file, or transmit for filing, a Rule
462(b) Registration Statement not later than the date of the execution of the Pricing
Agreement. If a Rule 462(b) Registration Statement is filed, the Company shall make payment
of, or arrange for payment of, the additional registration fee owing to the Commission
required by Rule 111.
(l) For so long as the Company is subject to the Exchange Act, the Company will comply
with all registration, filing and reporting requirements of the Exchange Act and The NASDAQ
Global Market; and the Company will comply in all material respects with all applicable
provisions of the Xxxxxxxx-Xxxxx Act.
(m) For so long as the Company is subject to the Exchange Act, the Company will
maintain such controls and other procedures, including without limitation those required by
the Xxxxxxxx-Xxxxx Act and the applicable regulations thereunder, that are designed to
ensure that 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, including without limitation,
controls and procedures designed to ensure that 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 officer and its
principal financial officer, or persons performing similar functions, as appropriate to
allow timely decisions regarding required disclosure.
(n) For so long as the Company is subject to the Exchange Act, the Company will
maintain a system of internal accounting controls designed 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 accountability for
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assets; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) amounts reflected on the Company’s consolidated
balance sheet for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.
Section 7. Covenants of the Company and the Underwriters. The Company represents and
agrees that, unless it obtains the prior consent of the Representative, and each Underwriter,
severally and not jointly, represents and agrees that, unless it obtains the prior consent of the
Company and the Representative, it has not made and will not make any offer relating to the Shares
that would constitute an “issuer free writing prospectus,” as defined in Rule 433, or that would
otherwise constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with
the Commission. Any such free writing prospectus consented to by the Representative or by the
Company and the Representative, as the case may be, is hereinafter referred to as a “Permitted Free
Writing Prospectus.” The Company represents that it has treated and agrees that it will treat each
Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433,
and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free
Writing Prospectus, including timely filing with the Commission where required, legending and
record-keeping.
Section 8. Payment of Expenses. Whether or not the transactions contemplated
hereunder are consummated or this Agreement becomes effective as to all of its provisions or is
terminated, the Company agrees to pay (i) all costs, fees and expenses (other than legal fees and
disbursements of counsel for the Underwriters and the expenses incurred by the Underwriters)
incurred in connection with the performance of the obligations of the Company and the Selling
Stockholders hereunder, including without limiting the generality of the foregoing, all fees and
expenses of legal counsel for the Company and the Selling Stockholders and of the Company’s
independent accountants, all costs and expenses incurred in connection with the preparation,
printing, filing and distribution (including electronic delivery) of the Registration Statement,
each preliminary prospectus, any Permitted Free Writing Prospectus and the Prospectus (including
all exhibits and financial statements) and all amendments and supplements provided for herein, this
Agreement, the Pricing Agreement and a blue sky memorandum, (ii) all reasonable third-party costs,
fees and expenses (including reasonable legal fees and disbursements of outside counsel for the
Underwriters) incurred by the Underwriters in connection with qualifying or registering all or any
part of the Shares for offer and sale under blue sky laws, including clearance of such offering
with FINRA; (iii) all fees and expenses of the Company’s transfer agent, printing of the
certificates for the Shares and all transfer taxes, if any, with respect to the sale and delivery
of the Shares to the several Underwriters; and (iv) all third-party costs, fees and expenses
(including without limitation any damages or other amounts payable in connection with legal or
contractual liability) associated with the reforming of any contracts for sale of the Shares made
by the Underwriters caused by a breach of the representation contained in the second paragraph of
Section 2(b); provided, however, that, except as provided in this Section 8, Section 10, Section 12
and Section 15 hereof, the Underwriters will pay all of their own costs and expenses, including the
fees of their counsel (except as set forth above), stock transfer taxes on the resale of any Shares
by them and any expenses relating to the publishing of “tombstone” advertisements.
Section 9. Conditions of the Obligations of the Underwriters. The obligations of the
several Underwriters to purchase and pay for the Firm Shares on the First Closing Date and the
Option Shares on the Second Closing Date shall be subject to the accuracy of the representations
and warranties on the part of the Company and each of the Selling Stockholders herein set forth as
of the date hereof and as of the First Closing Date or the Second Closing Date, as the case may be,
to the accuracy of the statements of officers of the Company made pursuant to the provisions
hereof, to the performance by the Company and each of the Selling Stockholders of their respective
obligations hereunder, and to the following additional conditions:
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(a) The Registration Statement shall have become effective either prior to the
execution of this Agreement or not later than 1:00 P.M., Chicago Time, on the first full
business day after the date of this Agreement, or such later time as shall have been
consented to by you but in no event later than 1:00 P.M., Chicago Time, on the third full
business day following the date hereof; and prior to the First Closing Date or the Second
Closing Date, as the case may be, no stop order suspending the effectiveness of the
Registration Statement shall have been issued and no proceedings for that purpose shall have
been instituted or shall be pending or, to the knowledge of the Company, the Selling
Stockholders or you, shall be contemplated by the Commission. If the Company has elected to
rely upon Rule 430A, the information concerning the public offering price of the Shares and
price-related information shall have been transmitted to the Commission for filing pursuant
to Rule 424(b) in the manner and within the prescribed time period (without reliance on Rule
424(b)(8)) and the Company will provide evidence satisfactory to the Representative of such
timely filing (or a post-effective amendment providing such information shall have been
filed and declared effective in accordance with the requirements of Rules 430A and 424(b)).
If a Rule 462(b) Registration Statement is required, such Registration Statement shall have
been transmitted to the Commission for filing and become effective within the prescribed
time period and, prior to the First Closing Date, the Company shall have provided evidence
of such filing and effectiveness in accordance with Rule 462(b).
(b) The Shares shall have been qualified for sale under the blue sky laws of such
states as shall have been specified by the Representative.
(c) The legality and sufficiency of the authorization, issuance and sale or transfer
and sale of the Shares hereunder, the validity and form of the certificates representing the
Shares, the execution and delivery of this Agreement and the Pricing Agreement, and all
corporate proceedings and other legal matters incident thereto, and the form of the
Registration Statement, the Disclosure Package, any Issuer Limited Use Free Writing
Prospectus and the Prospectus (except financial statements) shall have been approved by
counsel for the Underwriters exercising reasonable judgment.
(d) You shall not have advised the Company that the Registration Statement, the
Disclosure Package, any Issuer Limited Use Free Writing Prospectus, when considered together
with the Disclosure Package, or the Prospectus or any amendment or supplement thereto,
contains an untrue statement of fact, which, in the opinion of counsel for the Underwriters,
is material or omits to state a fact which, in the opinion of such counsel, is material and
is required to be stated therein or necessary to make the statements therein not misleading.
(e) Subsequent to the execution and delivery of this Agreement, there shall not have
occurred any material adverse change, or any development involving a prospective material
adverse change, in or affecting particularly the business or properties of the Company or
its subsidiaries, taken as a whole, whether or not arising in the ordinary course of
business, which, in the judgment of the Representative, makes it impractical or inadvisable
to proceed with the public offering of the Shares as contemplated hereby.
(f) There shall have been furnished to you, as Representative of the Underwriters, on
the First Closing Date or the Second Closing Date, as the case may be, except as otherwise
expressly provided below:
(i) An opinion of Xxxxx & Xxxxxxx L.L.P., counsel for the Company, addressed to
the Underwriters and dated the First Closing Date or the Second Closing
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Date, as the case may be, in form and substance reasonably satisfactory to the
Underwriters.
(ii) A letter from Xxxxx & Xxxxxxx L.L.P., counsel for the Company, addressed
to the Underwriters and dated the First Closing Date or the Second Closing Date, as
the case may be, in form and substance reasonably satisfactory to the Underwriters.
(iii) Opinions of counsel for each of the Selling Stockholders, in each case
addressed to the Underwriters and dated the First Closing Date or the Second Closing
Date, as the case may be, in form and substance reasonably satisfactory to the
Underwriters.
(iv) Such opinion or opinions of Sidley Austin LLP, counsel for the
Underwriters, dated the First Closing Date or the Second Closing Date, as the case
may be, with respect to the existence of the Company, the validity of the Shares,
the Registration Statement, the Disclosure Package and the Prospectus and other
related matters as you may reasonably require, and the Company shall have furnished
to such counsel such documents and shall have exhibited to them such papers and
records as they reasonably request for the purpose of enabling them to pass upon
such matters.
(v) A certificate of the chief executive officer and the principal financial
officer of the Company, dated the First Closing Date or the Second Closing Date, as
the case may be, to the effect that:
(1) the representations and warranties of the Company set forth in
Section 2 of this Agreement are true and correct as of the date of this
Agreement and as of the First Closing Date or the Second Closing Date, as
the case may be, and the Company has complied with all the agreements and
satisfied all the conditions on its part to be performed or satisfied at or
prior to such Closing Date;
(2) the Commission has not issued an order preventing or suspending the
use of the Prospectus or any preliminary prospectus filed as a part of the
Registration Statement or any amendment thereto; no stop order suspending
the effectiveness of the Registration Statement has been issued; and to the
best knowledge of the respective signers, no proceedings for that purpose
have been instituted or are pending or contemplated under the 1933 Act; and
(3) subsequent to the date of the most recent financial statements
included in the Registration Statement and Prospectuses, and except as set
forth or contemplated in the Prospectuses, (A) none of the Company and its
consolidated subsidiaries has incurred any material liabilities or
obligations, direct or contingent, or entered into any material transactions
not in the ordinary course of business, and (B) there has not been any
change that has had or would reasonably be expected to have a material
adverse effect upon the Company and its subsidiaries taken as a whole or any
material change in their short-term debt or long-term debt.
-17-
The delivery of the certificate provided for in this subparagraph shall be and
constitute a representation and warranty of the Company as to the facts required in
the immediately foregoing clauses (1), (2) and (3) to be set forth in said
certificate.
(vi) A certificate of each of the Selling Stockholders dated the First Closing
Date or the Second Closing Date, as the case may be, to the effect that the
representations and warranties of such Selling Stockholder set forth in Section 3
and Section 6(h) are true and correct as of such date and such Selling Stockholder
has complied with all the agreements and satisfied all the conditions on the part of
such Selling Stockholder to be performed or satisfied at or prior to such date.
(vii) At the time the Pricing Agreement is executed and also on the First
Closing Date or the Second Closing Date, as the case may be, there shall be
delivered to you a letter addressed to you, as Representative of the Underwriters,
from McGladrey & Xxxxxx, LLP, an independent registered public accountant firm, the
first one to be dated the date of the Pricing Agreement, the second one to be dated
the First Closing Date and the third one (in the event of a second closing) to be
dated the Second Closing Date, in form and substance reasonably satisfactory to the
Underwriters. There shall not have been any change or decrease specified in the
letters referred to in this subparagraph which makes it impractical or inadvisable
in the judgment of the Representative to proceed with the public offering or
purchase of the Shares as contemplated hereby.
(viii) A certificate of the chief executive officer and the principal financial
officer of the Company, dated the First Closing Date or the Second Closing Date, as
the case may be, regarding certain statistical or financial figures included in the
Prospectus which you may reasonably request and which have not been otherwise
verified by the letters referred to in clause (vii) above, such verification to
include the provision of documentary evidence supporting any such statistical or
financial figure.
(ix) Such further certificates and documents as you may reasonably request.
All such opinions, certificates, letters and documents shall be in compliance with the
provisions hereof only if they are satisfactory to you and to Sidley Austin LLP, counsel for the
Underwriters, which approval shall not be unreasonably withheld. The Company shall furnish you
with such manually signed or conformed copies of such opinions, certificates, letters and documents
as you request.
If any condition to the Underwriters’ obligations hereunder to be satisfied prior to or at the
First Closing Date is not so satisfied, this Agreement at your election will terminate upon
notification to the Company and the Selling Stockholders without liability on the part of any
Underwriter or the Company or the Selling Stockholders, except for the expenses to be paid or
reimbursed by the Company pursuant to Sections 8 and 10 hereof and except to the extent provided in
Section 12 hereof.
Section 10. Reimbursement of Underwriters’ Expenses. If the sale to the Underwriters
of the Firm Shares on the First Closing Date is not consummated because any condition of the
Underwriters’ obligations hereunder is not satisfied or because of any refusal, inability or
failure on the part of the Company or any of the Selling Stockholders to perform any agreement
herein or to comply with any provision hereof, unless such failure to satisfy such condition or to
comply with any provision hereof is due to the default or omission of any Underwriter, the Company
agrees to reimburse you and the other Underwriters upon demand for all out-of-pocket expenses
(including reasonable fees and disbursements of counsel) that shall have been reasonably incurred
by you and them in connection with
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the proposed purchase and the sale of the Shares. Any such termination shall be without
liability of any party to any other party except that the provisions of this Section 10, Section 8
and Section 12 shall at all times be effective and shall apply.
Section 11. Effectiveness of Registration Statement. You and the Company will use
your and its best efforts to cause the Registration Statement to become effective, if it has not
yet become effective, and to prevent the issuance of any stop order suspending the effectiveness of
the Registration Statement and, if such stop order be issued, to obtain as soon as possible the
lifting thereof.
Section 12. Indemnification. (a) The Company agrees to indemnify and hold harmless
each Underwriter and each person, if any, who controls any Underwriter within the meaning of the
1933 Act or the Exchange Act against any losses, claims, damages or liabilities, joint or several,
to which such Underwriter or such controlling person may become subject under the 1933 Act, the
Exchange Act or other federal or state statutory law or regulation, at common law or otherwise
(including in settlement of any litigation if such settlement is effected with the written consent
of the Company), insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the Registration Statement, including the information deemed to be part
of the Registration Statement at the time of effectiveness pursuant to Rule 430A, any preliminary
prospectus, any Issuer Free Writing Prospectus, the Prospectus, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to state therein a
material fact, in the case of the Registration Statement or any amendment or supplement thereto,
required to be stated therein or necessary to make the statements therein not misleading and, in
the case of any preliminary prospectus, any Issuer Free Writing Prospectus, the Prospectus, or any
amendment or supplement thereto, necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; and will reimburse each Underwriter and
each such controlling person for any legal or other expenses reasonably incurred by such
Underwriter or such controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company will not be liable in any
such case to the extent that any such loss, claim, damage or liability arises out of or is based
upon an untrue statement or alleged untrue statement or omission or alleged omission made in the
Registration Statement, any preliminary prospectus, any Issuer Free Writing Prospectus, the
Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Underwriter through the Representative,
specifically for use therein. In addition to its other obligations under this Section 12(a), the
Company agrees that, as an interim measure during the pendency of any claim, action, investigation,
inquiry or other proceeding arising out of or based upon any statement or omission, or any alleged
statement or omission, described in this Section 12(a), it will reimburse the Underwriters on a
monthly basis for all reasonable legal and other expenses incurred in connection with investigating
or defending any such claim, action, investigation, inquiry or other proceeding, notwithstanding
the absence of a judicial determination as to the propriety and enforceability of the Company’s
obligation to reimburse the Underwriters for such expenses and the possibility that such payments
might later be held to have been improper by a court of competent jurisdiction. This indemnity
agreement will be in addition to any liability which the Company may otherwise have.
(b) Each of the Selling Stockholders agrees severally and not jointly in proportion to the
number of Shares to be sold by such Selling Stockholder hereunder to indemnify and hold harmless
each Underwriter and each person, if any, who controls any Underwriter within the meaning of the
1933 Act or the Exchange Act against any losses, claims, damages or liabilities, joint or several,
to which such Underwriter or such controlling person may become subject under the 1933 Act, the
Exchange Act or other federal or state statutory law or regulation, at common law or otherwise
(including in settlement of any litigation if such settlement is effected with the written consent
of such Selling Stockholder), insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon
-19-
any untrue statement or alleged untrue statement of any material fact contained in the
Registration Statement, including the information deemed to be part of the Registration Statement
at the time of effectiveness pursuant to Rule 430A, any preliminary prospectus, any Issuer Free
Writing Prospectus, the Prospectus, or any amendment or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state therein a material fact about the Selling
Stockholder required to be stated therein or necessary to make the statements therein about the
Selling Stockholder not misleading; and will reimburse each Underwriter and each such controlling
person for any legal or other expenses reasonably incurred by such Underwriter or such controlling
person in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the obligations under this Section 12(b) shall only apply to untrue
statements or omissions, or alleged untrue statements or omissions, made in the Registration
Statement, any preliminary prospectus, any Issuer Free Writing Prospectus, the Prospectus, or any
amendment or supplement thereto in reliance upon and in conformity with written information
relating to such Selling Stockholder furnished to the Company by such Selling Stockholder expressly
for use therein (and the parties hereto agree that the only information included in the foregoing
documents in reliance upon and in conformity with written information relating to such Selling
Stockholder furnished to the Company by such Selling Stockholder expressly for use therein is the
information relating to such Selling Stockholder set forth under the caption “Beneficial Ownership
of Common Stock and Selling Stockholders” and the footnotes thereunder (excluding any percentages
set forth therein); provided, further, that such Selling Stockholder will not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission made in the
Registration Statement, any preliminary prospectus, any Issuer Free Writing Prospectus, the
Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Underwriter through the Representative,
specifically for use therein. In addition to its other obligations under this Section 12(b), each
of the Selling Stockholders agrees that, as an interim measure during the pendency of any claim,
action, investigation, inquiry or other proceeding arising out of or based upon any statement or
omission, or any alleged statement or omission, described in this Section 12(b), it will reimburse
the Underwriters on a monthly basis for all reasonable legal and other expenses incurred in
connection with investigating or defending any such claim, action, investigation, inquiry or other
proceeding, notwithstanding the absence of a judicial determination as to the propriety and
enforceability of such Selling Stockholder’s obligation to reimburse the Underwriters for such
expenses and the possibility that such payments might later be held to have been improper by a
court of competent jurisdiction. Notwithstanding anything to the contrary in this Section 12(b),
in no event shall the liability of a Selling Stockholder exceed the net proceeds actually received
by such Selling Stockholder from the sale of Shares in the Offering. This indemnity agreement will
be in addition to any liability which such Selling Stockholder may otherwise have.
(c) Each Underwriter will severally indemnify and hold harmless the Company, each of its
directors, each of its officers who signed the Registration Statement, the Selling Stockholders and
each person, if any, who controls the Company within the meaning of the 1933 Act or the Exchange
Act, against any losses, claims, damages or liabilities to which the Company, or any such director,
officer, Selling Stockholder or controlling person may become subject under the 1933 Act, the
Exchange Act or other federal or state statutory law or regulation, at common law or otherwise
(including in settlement of any litigation, if such settlement is effected with the written consent
of such Underwriter), insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue or alleged untrue statement of any material fact
contained in the Registration Statement, any preliminary prospectus, any Issuer Free Writing
Prospectus, the Prospectus, or any amendment or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact , in the case of the
Registration Statement or any amendment or supplement thereto, required to be stated therein or
necessary to make the statements therein not misleading and, in the case of any preliminary
prospectus, any Issuer Free Writing Prospectus, the Prospectus, or any amendment or
-20-
supplement thereto, necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in
the Registration Statement, any preliminary prospectus, any Issuer Free Writing Prospectus, the
Prospectus, or any amendment or supplement thereto in reliance upon and in conformity with Section
4 of this Agreement or any other written information furnished to the Company by such Underwriter
through the Representative specifically for use in the preparation thereof; and will reimburse any
legal or other expenses reasonably incurred by the Company, or any such director, officer, Selling
Stockholder or controlling person in connection with investigating or defending any such loss,
claim, damage, liability or action. In addition to their other obligations under this Section
12(c), the Underwriters agree that, as an interim measure during the pendency of any claim, action,
investigation, inquiry or other proceeding arising out of or based upon any statement or omission,
or any alleged statement or omission, described in this Section 12(c), they will reimburse the
Company and the Selling Stockholders on a monthly basis for all reasonable legal and other expenses
incurred in connection with investigating or defending any such claim, action, investigation,
inquiry or other proceeding, notwithstanding the absence of a judicial determination as to the
propriety and enforceability of the Underwriters’ obligation to reimburse the Company and the
Selling Stockholders for such expenses and the possibility that such payments might later be held
to have been improper by a court of competent jurisdiction. This indemnity agreement will be in
addition to any liability which such Underwriter may otherwise have.
(d) Promptly after receipt by an indemnified party under this Section 12 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party under this Section 12, notify the indemnifying party of the
commencement thereof; but the omission so to notify the indemnifying party will not relieve it from
any liability which it may have to any indemnified party except to the extent that the indemnifying
party was prejudiced by such failure to notify. In case any such action is brought against any
indemnified party, and it notifies an indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate in, and, to the extent that it may wish, jointly
with all other indemnifying parties similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such
action include both the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded based on the advice of outside counsel that there may be legal
defenses available to it and/or other indemnified parties which are different from or additional to
those available to the indemnifying party, or the indemnified and indemnifying parties may have
conflicting interests which would make it inappropriate for the same counsel to represent both of
them, the indemnified party or parties shall have the right to select separate counsel to assume
such legal defense and otherwise to participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying party to such
indemnified party of its election so to assume the defense of such action and approval by the
indemnified party of counsel, the indemnifying party will not be liable to such indemnified party
under this Section 12 for any legal or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof unless (i) the indemnified party shall have employed
such counsel in connection with the assumption of legal defense in accordance with the proviso to
the next preceding sentence (it being understood, however, that the indemnifying party shall not be
liable for the expenses of more than one separate counsel, approved by the Representative in the
case of paragraph (a) representing all indemnified parties not having different or additional
defenses or potential conflicting interest among themselves who are parties to such action), (ii)
the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified
party to represent the indemnified party within a reasonable time after notice of commencement of
the action or (iii) the indemnifying party has authorized the employment of counsel for the
indemnified party at the expense of the indemnifying party. 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
-21-
indemnity could have been sought hereunder by such indemnified party, unless such settlement
includes an unconditional release of such indemnified party from all liability arising out of such
proceeding.
(e) If the indemnification provided for in this Section 12 is unavailable to an indemnified
party under paragraphs (a), (b) or (c) hereof in respect of any losses, claims, damages or
liabilities referred to therein, then each applicable indemnifying party, in lieu of indemnifying
such indemnified party, 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 Company, the Selling Stockholders and the
Underwriters from the offering of the Shares or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the Company, the
Selling Stockholders and the Underwriters in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The respective relative benefits received by the Company, the Selling Stockholders
and the Underwriters shall be deemed to be in the same proportion, in the case of the Company and
the Selling Stockholders, as the total price paid to the Company and the Selling Stockholders for
the Shares by the Underwriters (net of underwriting discount but before deducting expenses) bears
to, and in the case of the Underwriters, as the underwriting discount received by them bears to,
the total of such amounts paid to the Company and the Selling Stockholders and received by the
Underwriters as underwriting discount, in each case as contemplated by the Prospectus. The
relative fault of the Company, the Selling Stockholders and the Underwriters shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the Company, the
Selling Stockholders or the Underwriters and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses, claims, damages and liabilities referred to above
shall be deemed to include any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim.
The Company, each of the Selling Stockholders and the Underwriters agree that it would not be
just and equitable if contribution pursuant to this Section 12(e) were determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions
of this Section 12(e), no Underwriter shall be required to contribute any amount in excess of the
amount by which the total price at which the Shares underwritten by it and distributed to the
public were offered to the public exceeds the amount of any damages which 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 0000 Xxx) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section
12(e) are several in proportion to their respective underwriting commitments and not joint.
(f) The provisions of this Section 12 shall survive any termination of this Agreement.
Section 13. Default of Underwriters. It shall be a condition to the agreement and obligation
of the Company and each of the Selling Stockholders to sell and deliver the Shares hereunder, and
of each Underwriter to purchase the Shares hereunder, that, except as hereinafter in this paragraph
provided, each of the Underwriters shall purchase and pay for all Shares agreed to be purchased by
such Underwriter hereunder upon tender to the Representative of all such Shares in accordance with
the terms hereof. If any Underwriter or Underwriters default in their obligations to purchase
Shares hereunder on
-22-
the First Closing Date and the aggregate number of Shares which such defaulting Underwriter or
Underwriters agreed but failed to purchase does not exceed 10 percent of the total number of Shares
which the Underwriters are obligated to purchase on the First Closing Date, the Representative may
make arrangements satisfactory to the Company and the Selling Stockholders for the purchase of such
Shares by other persons, including any of the Underwriters, but if no such arrangements are made by
such date the nondefaulting Underwriters shall be obligated severally, in proportion to their
respective commitments hereunder, to purchase the Shares which such defaulting Underwriters agreed
but failed to purchase on such date. If any Underwriter or Underwriters so default and the
aggregate number of Shares with respect to which such default or defaults occur is more than the
above percentage and arrangements satisfactory to the Representative, the Company and the Selling
Stockholders for the purchase of such Shares by other persons are not made within 36 hours after
such default, this Agreement will terminate without liability on the part of any nondefaulting
Underwriter or the Company or the Selling Stockholders, except for the expenses to be paid by the
Company pursuant to Section 8 hereof and except to the extent provided in Section 12 hereof.
In the event that Shares to which a default relates are to be purchased by the nondefaulting
Underwriters or by another party or parties, the Representative or the Company shall have the right
to postpone the First Closing Date for not more than seven business days in order that the
necessary changes in the Registration Statement, Prospectus and any other documents, as well as any
other arrangements, may be effected. As used in this Agreement, the term “Underwriter” includes
any person substituted for an Underwriter under this Section 13. Nothing herein will relieve a
defaulting Underwriter from liability for its default.
Section 14. Effective Date. This Agreement shall become effective immediately as to
Sections 8, 10, 12 and 15 and as to all other provisions at 10:00 A.M., Chicago Time, on the day
following the date upon which the Pricing Agreement is executed and delivered, unless such a day is
a Saturday, Sunday or holiday (and in that event this Agreement shall become effective at such hour
on the business day next succeeding such Saturday, Sunday or holiday); but this Agreement shall
nevertheless become effective at such earlier time after the Pricing Agreement is executed and
delivered as you may determine on and by notice to the Company or by release of any Shares for sale
to the public. For the purposes of this Section 14, the Shares shall be deemed to have been so
released upon the release for publication of any newspaper advertisement relating to the Shares or
upon the release by you of written communications (i) advising Underwriters that the Shares are
released for public offering, or (ii) offering the Shares for sale to securities dealers, whichever
may occur first.
Section 15. Termination. Without limiting the right to terminate this Agreement
pursuant to any other provision hereof:
(a) This Agreement may be terminated by the Company by notice to you and the Selling
Stockholders or by you by notice to the Company and the Selling Stockholders at any time
prior to the time this Agreement shall become effective as to all its provisions, and any
such termination shall be without liability on the part of the Company or the Selling
Stockholders to any Underwriter (except for the expenses to be paid or reimbursed pursuant
to Section 8 hereof and except to the extent provided in Section 12 hereof) or of any
Underwriter to the Company or the Selling Stockholders.
(b) This Agreement may also be terminated by you prior to the First Closing Date, and
the options referred to in Section 5, if exercised, may be cancelled at any time prior to
the Second Closing Date, if (i) trading in securities on the New York Stock Exchange or The
Nasdaq Stock Market shall have been suspended or minimum prices shall have been established
on such exchange or market, or (ii) a banking moratorium shall have been declared by
Illinois, Xxx Xxxx,
-00-
xx Xxxxxx Xxxxxx authorities, or (iii) there shall have been any material adverse
change in financial markets or any material adverse change in political, economic or
financial conditions which, in the opinion of the Representative, either renders it
impracticable or inadvisable to proceed with the offering and sale of the Shares on the
terms set forth in the Prospectus or materially and adversely affects the market for the
Shares, or (iv) there shall have been an outbreak of major armed hostilities between the
United States and any foreign power or terrorist organization which in the opinion of the
Representative makes it impractical or inadvisable to offer or sell the Shares. Any
termination pursuant to this paragraph (b) shall be without liability on the part of any
Underwriter to the Company or the Selling Stockholders or on the part of the Company or the
Selling Stockholders to any Underwriter (except for expenses to be paid or reimbursed
pursuant to Section 8 hereof and except to the extent provided in Section 12 hereof).
Section 16. Representations and Indemnities to Survive Delivery. The respective
indemnities, agreements, representations, warranties and other statements of the Company, of its
officers, of the Selling Stockholders and of the several Underwriters set forth in or made pursuant
to this Agreement will remain in full force and effect, regardless of any investigation made by or
on behalf of any Underwriter, Selling Stockholder or the Company or any of its or their partners,
principals, members, officers or directors or any controlling person, and will survive delivery of
and payment for the Shares sold hereunder.
Section 17. Notices. All communications hereunder will be in writing and, if sent to
the Underwriters will be mailed, delivered or telegraphed and confirmed to you c/o Xxxxxxx Xxxxx &
Company, L.L.C., 000 Xxxx Xxxxx Xxxxxx, Xxxxxxx, Xxxxxxxx 00000, with a copy to Xxxxxx X. Xxxxxxx,
c/o Xxxxxx Xxxxxx LLP, Xxx Xxxxx Xxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxx 00000; if sent to the Company
will be mailed, delivered or telegraphed and confirmed to the Company at its corporate headquarters
with a copy to Xxxxxxx X. Silver, c/o Hogan & Xxxxxxx L.L.P., 000 Xxxxx Xxxxxxx Xxxxxx, Xxxxx 0000,
Xxxxxxxxx, XX 00000; if sent to one of the Selling Stockholders, will be mailed, delivered or
telegraphed and confirmed to the Agent and the Custodian at such address as they have previously
furnished to the Company and the Representative.
Section 18. No Advisory or Fiduciary Relationship. The Company and each of the
Selling Stockholders acknowledges and agrees that (a) the purchase and sale of the Shares pursuant
to this Agreement, including the determination of the public offering price of the Shares and any
related discounts and commissions, is an arm’s-length commercial transaction between the Company
and the Selling Stockholders, on the one hand, and the several Underwriters, on the other hand, (b)
in connection with the offering of the Shares contemplated by this Agreement and the process
leading to such transaction each Underwriter is and has been acting solely as a principal and is
not the agent or fiduciary of the Company, the Selling Stockholders, or its or their stockholders,
creditors, employees or any other party, (c) no Underwriter has assumed or will assume an advisory
or fiduciary responsibility in favor of the Company or the Selling Stockholders with respect to the
offering of the Shares contemplated by this Agreement or the process leading thereto (irrespective
of whether such Underwriter has advised or is currently advising the Company on other matters) and
no Underwriter has any obligation to the Company or the Selling Stockholders with respect to the
offering of the Shares contemplated by this Agreement except the obligations expressly set forth in
this Agreement, (d) the Underwriters and their respective affiliates may be engaged in a broad
range of transactions that involve interests that differ from those of the Company and the Selling
Stockholders and (e) the Underwriters have not provided any legal, accounting, regulatory or tax
advice with respect to the offering of the Shares contemplated by this Agreement and the Company
and the Selling Stockholders have consulted its and their own legal, accounting, regulatory and tax
advisors to the extent it and they deemed appropriate.
-24-
Section 19. Successors. This Agreement and the Pricing Agreement will inure to the
benefit of and be binding upon the parties hereto and their respective successors, personal
representatives and assigns, and to the benefit of the officers and directors and controlling
persons referred to in Section 12, 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.
Section 20. Representation of Underwriters. You will act as Representative for the
several Underwriters in connection with this financing, and any action under or in respect of this
Agreement taken by you will be binding upon all the Underwriters.
Section 21. Partial Unenforceability. If any section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, such determination shall not
affect the validity or enforceability of any other section, paragraph or provision hereof.
Section 22. Applicable Law. This Agreement and the Pricing Agreement shall be
governed by and construed in accordance with the laws of the State of Illinois.
-25-
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to us the enclosed duplicates hereof, whereupon it will become a binding agreement among the
Company, the Selling Stockholders and the several Underwriters including you, all in accordance
with its terms.
| Very truly yours, | ||||
| American Public Education, Inc. | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| Xxxxx X. Xxxxxxx | ||||
| Acting as Agent and attorney-in-fact of the several Selling Stockholders named in Schedule B opposite his name | ||||
| By: | ||||
| Name: | ||||
| Title: | Attorney-in-Fact | |||
| Acting as Agent and attorney-in-fact of the several Selling Stockholders named in Schedule B opposite his name | ||||
| By: | ||||
| Name: | ||||
| Title: | Attorney-in-Fact | |||
| Acting as Agent and attorney-in-fact of the several Selling Stockholders named in Schedule B | ||||
| By: | ||||
| Name: | ||||
| Title: | Attorney-in-Fact | |||
Company’s signature page to the Underwriting Agreement
| The foregoing Agreement is hereby confirmed and accepted as of the date first above written. | ||||
| Xxxxxxx Xxxxx & Company, L.L.C. | ||||
| Acting as Representative of the several Underwriters named in Schedule A. | ||||
By:
|
Xxxxxxx Xxxxx & Company, L.L.C. | |||
By: |
||||
Name: |
||||
Title: |
||||
Representative’s signature page to the Underwriting Agreement
Schedule A
| Number of | ||
| Firm Shares | ||
| Underwriter | to be Purchased | |
Xxxxxxx Xxxxx & Company, L.L.C.
|
||
Xxxxx Xxxxxxx & Co. |
||
Xxxxxx, Xxxxxxxx & Company |
||
ThinkEquity Partners LLC |
||
BMO Capital Markets Corp. |
||
Signal Hill Capital Group LLC |
||
Total |
A-1
Schedule B
| Number of Firm | Number of Option | |||||
| Selling Stockholders | Shares to be Sold | Shares to be Sold | Agent | |||
Total |
B-1
Schedule C
Issuer General Use Free Writing Prospectuses
Issuer General Use Free Writing Prospectuses
[
]
C-1
Exhibit A
American Public Education, Inc.
[ ] Shares of Common Stock2
Pricing Agreement
, 2008
Xxxxxxx Xxxxx & Company, L.L.C.
As Representative of the Several
Underwriters
c/o Xxxxxxx Xxxxx & Company, L.L.C.
000 Xxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
As Representative of the Several
Underwriters
c/o Xxxxxxx Xxxxx & Company, L.L.C.
000 Xxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Ladies and Gentlemen:
Reference is made to the Underwriting Agreement dated ___, 2008 (the “Underwriting
Agreement”) relating to the sale by the Company and the Selling Stockholders, and the purchase by
the several Underwriters for whom Xxxxxxx Xxxxx & Company, L.L.C. is acting as representative (the
“Representative”), of the above Shares. All terms herein shall have the definitions contained in
the Underwriting Agreement except as otherwise defined herein.
Pursuant to Section 5 of the Underwriting Agreement, the Company and each of the Selling
Stockholders agrees with the Representative as follows:
1. The public offering price per share for the Shares shall be $ .
2. The purchase price per share for the Shares to be paid by the several Underwriters shall be
$ , being an amount equal to the public offering price set forth above less
$ per share.
| 2 | Plus options to acquire up to an aggregate of [ ] additional shares to cover overallotments. |
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to us the enclosed duplicates hereof, whereupon it will become a binding agreement among the
Company, the Selling Stockholders and the several Underwriters, including you, all in accordance
with its terms.
| Very truly yours, | ||||
| American Public Education, Inc. | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| Acting as Agent and attorney-in-fact of the several Selling Stockholders named in Schedule B opposite his name | ||||
| By: | ||||
| Name: | ||||
| Title: | Attorney-in-Fact | |||
| Acting as Agent and attorney-in-fact of the several Selling Stockholders named in Schedule B opposite his name | ||||
| By: | ||||
| Name: | ||||
| Title: | Attorney-in-Fact | |||
| Acting as Agent and attorney-in-fact of the several Selling Stockholders named in Schedule B opposite his name | ||||
| By: | ||||
| Name: | ||||
| Title: | Attorney-in-Fact | |||
Company’s and the Selling Stockholders’ signature page to the Pricing Agreement
| The foregoing Agreement is hereby confirmed and accepted as of the date first above written. | ||||
| Xxxxxxx Xxxxx & Company, L.L.C. | ||||
| Acting as Representative of the several Underwriters named in Schedule A to the Underwriting Agreement. | ||||
By:
|
Xxxxxxx Xxxxx & Company, L.L.C. | |||
By: |
||||
Name: |
||||
Title: |
||||
Representative’s signature page to the Pricing Agreement
Schedule A to Pricing Agreement
Pricing Information
Pricing Information
| • | Total Shares Offered: [ ] (with overallotment option: [ ]) | |
| • | Price to Public: $ | |
| • | Underwriting Discount: $ | |
| • | Expected Settlement Date: |
