4,750,000 Shares MINDSPEED TECHNOLOGIES, INC. Common Stock UNDERWRITING AGREEMENT
Exhibit 1.1
EXECUTION COPY
4,750,000 Shares
Common Stock
August 13, 2009
▇▇▇▇▇ and Company, LLC
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Dear Sirs:
1. Introductory. Mindspeed Technologies, Inc., a Delaware corporation (the
“Company”), proposes to issue and sell to ▇▇▇▇▇ and Company, LLC (the
“Underwriter”), 4,750,000 shares (the “Stock”) of common stock, $0.01 par value
(the “Common Stock”), of the Company in accordance with the terms and conditions of this
Underwriting Agreement (this “Agreement”).
2. Offering by the Underwriter. It is understood that the Underwriter is to make a
public offering of the Stock (the “Offering”) as soon as the Underwriter deems it advisable
to do so after this Agreement has been executed and delivered. The Stock is to be initially
offered to the public at the initial public offering price set forth in the Prospectus (as defined
herein). The Underwriter may from time to time thereafter change the public offering price and
other selling terms.
3. Representations and Warranties of the Company. The Company represents and warrants
to the Underwriter, as of the date hereof, and agrees with the Underwriter, that:
(a) A registration statement of the Company on Form S-3 (File No. 333-160322) (including all
pre-effective amendments thereto, the “Initial Registration Statement”) in respect of the
Stock has been filed with the Securities and Exchange Commission (the “Commission”)
pursuant to Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”).
The Company meets the requirements for use of Form S-3 under the Securities Act, and the rules and
regulations of the Commission thereunder (the “Rules and Regulations”). The Initial
Registration Statement and any post-effective amendment thereto, each in the form heretofore
delivered to the Underwriter, and, excluding exhibits thereto, have been declared effective by the
Commission in such form and meet the requirements of the Securities Act and the Rules and
Regulations. Other than (i) a registration statement, if any, increasing the size of the Offering
filed pursuant to Rule 462(b) under the Securities Act and the Rules and Regulations (a “Rule
462(b) Registration Statement”) and (ii) the Prospectus (as defined below) contemplated by this
Agreement to be filed pursuant to Rule 424(b) of the Rules and Regulations in accordance with
Section 5 hereof and (iii) any Issuer Free Writing Prospectus (as defined below), no other
document with respect to the offer and sale of the Stock has heretofore been filed with the
Commission. The aggregate market value of securities sold by or on behalf of the Company under the
Initial Registration Statement during the 12 month period immediately prior to, and including, the
sale of Stock pursuant to this Agreement is no more than one-third of the aggregate market value of
the voting and non-voting common equity held by non-affiliates of the Company, as determined
pursuant to General Instruction I.B(6) of Form S-3. No stop order suspending the effectiveness of
the Initial Registration Statement, any post-effective
amendment thereto or the Rule 462(b) Registration Statement, if any, has been issued and no
proceeding for that purpose or pursuant to Section 8A of the Securities Act has been initiated or,
to the knowledge of the Company, threatened by the Commission. The base prospectus included in the
Initial Registration Statement at the time of effectiveness thereof is hereinafter called the
“Base Prospectus” and any prospectus subject to completion included in the Registration
Statement or any preliminary prospectus (including any preliminary prospectus supplement) relating
to the Stock filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations is
hereinafter called a “Preliminary Prospectus.” The various parts of the Initial
Registration Statement and the Rule 462(b) Registration Statement, if any, in each case including
all exhibits thereto and including (i) the information contained in the Prospectus filed with the
Commission pursuant to Rule 424(b) of the Rules and Regulations and deemed by virtue of Rules 430B
and 430C under the Securities Act to be part of the Initial Registration Statement at the time it
became effective and (ii) the documents incorporated by reference in the Rule 462(b) Registration
Statement at the time the Rule 462(b) Registration Statement became effective, are hereinafter
collectively called the “Registration Statements.” The Base Prospectus, as supplemented by
the final prospectus supplement dated as of a date no later than two (2) business days from the
date hereof relating to the offer and sale of the Stock, in the form filed pursuant to and within
the time limits described in Rule 424(b) under the Rules and Regulations, is hereinafter called the
“Prospectus.”
Any reference herein to any Registration Statement, Preliminary Prospectus or the Prospectus
shall be deemed to refer to and include the documents incorporated by reference therein. Any
reference to any amendment or supplement to any Preliminary Prospectus or the Prospectus shall be
deemed to refer to and include any documents filed after the date of such Preliminary Prospectus or
the Prospectus under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and incorporated by reference in such Preliminary Prospectus or Prospectus, as the case may be. Any
reference to any amendment to the Registration Statements shall be deemed to refer to and include
any annual report of the Company filed pursuant to Section 13(a) or 15(d) of the Exchange Act after
the date of this Agreement that is incorporated by reference in the Registration Statements.
(b) As of the Applicable Time (as defined below) and as of the Closing Date, as the case may
be, neither (i) any General Use Free Writing Prospectus(es) (as defined below) issued at or prior
to the Applicable Time and the Pricing Prospectus (as defined below), considered together with the
pricing and other information set forth on Schedule I hereto (collectively, the
“General Disclosure Package”), (ii) any individual Limited Use Free Writing Prospectus (as
defined below), nor (iii) the bona fide electronic road show (as defined in Rule 433(h)(5) of the
Rules and Regulations that has been made available without restriction to any person), when
considered together with the General Disclosure Package, included or will include any untrue
statement of a material fact or omitted or will omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that the Company makes no representations or warranties as to
information contained in or omitted from any Issuer Free Writing Prospectus or the Pricing
Prospectus, in reliance upon, and in conformity with, written information furnished to the Company
by the Underwriter specifically for inclusion therein, which information the parties hereto agree
is limited to the Underwriter’s Information as defined in Section 17 (“Underwriter’s
Information”). As used in this paragraph (b) and elsewhere in this Agreement:
“Applicable Time” means 5:00 P.M., New York time, on the date of this Agreement or
such other time as agreed to by the Company and the Underwriter.
“Pricing Prospectus” means the Preliminary Prospectus, if any, and the Base
Prospectus, each as amended and supplemented immediately prior to the Applicable Time, including
any document incorporated by reference therein and any prospectus supplement deemed to be a part
thereof.
2
“Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as
defined in Rule 433 of the Rules and Regulations relating to the Stock in the form filed or
required to be filed with the Commission or, if not required to be filed, in the form retained in
the Company’s records pursuant to Rule 433(g) of the Rules and Regulations.
“General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is
identified on Schedule II to this Agreement.
“Limited Use Free Writing Prospectuses” means any Issuer Free Writing Prospectus that
is not a General Use Free Writing Prospectus.
(c) No order preventing or suspending the use of any Preliminary Prospectus, any Issuer Free
Writing Prospectus or the Prospectus relating to the Offering has been issued by the Commission,
and no proceeding for that purpose or pursuant to Section 8A of the Securities Act has been
instituted or, to the knowledge of the Company, threatened by the Commission, and any Preliminary
Prospectus, at the time of filing thereof, conformed in all material respects to the requirements
of the Securities Act and the Rules and Regulations, and did not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that the Company makes no representations or warranties as to
information contained in or omitted from any Preliminary Prospectus, in reliance upon, and in
conformity with, written information furnished to the Company by the Underwriter specifically for
inclusion therein, which information the parties hereto agree is limited to the Underwriter’s
Information.
(d) At the respective times the Registration Statements and any amendments thereto became or
become effective, at the date of this Agreement and at the Closing Date, each Registration
Statement and any amendments thereto conformed and will conform in all material respects to the
requirements of the Securities Act and the Rules and Regulations and did not and will not contain
any 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, not misleading; and the Prospectus and any
amendments or supplements thereto, at the time the Prospectus or any amendment or supplement
thereto was issued and at the Closing Date, conformed and will conform in all material respects to
the requirements of the Securities Act and the Rules and Regulations and did not and will not
contain an untrue statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in light of the circumstances under which they were made, not
misleading; provided, however, that the foregoing representations and warranties in this paragraph
(d) shall not apply to information contained in or omitted from the Registration Statements or the
Prospectus, or any amendment or supplement thereto, in reliance upon, and in conformity with,
written information furnished to the Company by the Underwriter specifically for inclusion therein,
which information the parties hereto agree is limited to the Underwriter’s Information. The
Prospectus contains all required information under the Securities Act with respect to the Stock and
the distribution of the Stock.
(e) Each Issuer Free Writing Prospectus, if any, as of its issue date and at all subsequent
times through the completion of the offer and sale of the Stock or until any earlier date that the
Company notified or notifies the Underwriter as described in Section 5, did not, does not
and will not include any information that conflicted, conflicts or will conflict with the
information contained in the Registration Statement, Pricing Prospectus or the Prospectus,
including any document incorporated by reference therein and any prospectus supplement deemed to be
a part thereof that has not been superseded or modified, or included or would include an untrue
statement of a material fact or omitted or would omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The foregoing sentence does
3
not apply to statements in or omissions from any Issuer Free Writing Prospectus in reliance
upon, and in conformity with, written information furnished to the Company by the Underwriter
specifically for inclusion therein, which information the parties hereto agree is limited to the
Underwriter’s Information.
(f) The documents incorporated by reference in the Prospectus, when they were filed with the
Commission, complied in all material respects with the requirements of the Securities Act or the
Exchange Act, as applicable, and the rules and regulations of the Commission thereunder and none of
such documents contained any untrue statement of a material fact or omitted to state any material
fact required to be stated therein or necessary to make the statements therein not misleading, in
the light of the circumstances under which they were made; and any further documents so filed and
incorporated by reference in the Prospectus, when such documents are filed with the Commission,
will conform in all material respects to the requirements of the Securities Act or the Exchange
Act, as applicable, and the rules and regulations of the Commission thereunder and will not contain
any 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 not misleading, in the light of the
circumstances under which they are made.
(g) The Company has not, directly or indirectly, distributed and will not distribute any
offering material in connection with the Offering and sale of the Stock other than any Preliminary
Prospectus, the Prospectus and other materials, if any, permitted under the Securities Act and
consistent with Section 5 below. The Company will file with the Commission all Issuer Free
Writing Prospectuses (other than a “road show,” as described in Rule 433(d)(8) of the Rules and
Regulations) in the time and manner required under Rules 163(b)(2) and 433(d) of the Rules and
Regulations, to the extent that the Underwriter and the Company agree that such filing is required
to be made.
(h) At the time of filing the Initial Registration Statement, any 462(b) Registration
Statement and any post-effective amendments thereto, and at the date hereof, the Company was not,
and the Company currently is not, an “ineligible issuer,” as defined in Rule 405 of the Rules and
Regulations.
(i) The Company and each of its subsidiaries (as defined in Section 15) have been duly
incorporated and are validly existing as corporations in good standing under the laws of their
respective jurisdictions of incorporation, are duly qualified to do business and are in good
standing as foreign corporations in each jurisdiction in which their respective ownership or lease
of property or the conduct of their respective businesses requires such qualification, and have all
power and authority necessary to own or hold their respective properties and to conduct the
businesses in which they are engaged, except where the failure to so qualify or have such power or
authority would not have, singularly or in the aggregate, a material adverse effect on the
condition (financial or otherwise), results of operations, business or prospects of the Company and
its subsidiaries taken as a whole (a “Material Adverse Effect”). The Company’s subsidiaries
are: Maker Communications, Inc. and Mindspeed Development Sub, Inc.
(j) The Company has the full right, power and authority to enter into this Agreement and to
perform and discharge its obligations hereunder; and this Agreement has been duly authorized,
executed and delivered by the Company, and constitutes a valid, legal and binding obligation of the
Company, enforceable against the Company in accordance with its terms, except as rights to
indemnity hereunder may be limited by federal or state securities laws and except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws, now or hereafter in effect, affecting the rights of creditors generally and subject
to general principles of equity.
(k) The Stock to be issued and sold by the Company to the Underwriter hereunder has been duly
and validly authorized and, when issued and delivered against payment therefor as provided herein,
will be duly and validly issued, fully paid and nonassessable and free of any preemptive or similar
rights
4
and will conform to the description thereof contained in the General Disclosure Package and
the Prospectus.
(l) The Company has an authorized capitalization as of July 3, 2009, as set forth in the
Company’s Quarterly Report on Form 10-Q for the three months ended July 3, 2009. All of the issued
shares of capital stock of the Company have been duly and validly authorized and issued, are fully
paid and non-assessable, have been issued in compliance with federal and state securities laws, and
conform to the description thereof contained in the General Disclosure Package and the Prospectus.
None of the outstanding shares of Common Stock was issued in violation of any preemptive rights,
rights of first refusal or other similar rights to subscribe for or purchase securities of the
Company. Except as disclosed in, or incorporated by reference into, the Prospectus, there were no
authorized or outstanding options, warrants, preemptive rights, rights of first refusal or other
rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable
for, any capital stock of the Company or any of its subsidiaries other than those accurately
described in the Prospectus. Since such date, the Company has not issued any securities other than
Common Stock issued pursuant to the exercise of warrants or upon the exercise of stock options or
other equity awards previously outstanding under the Company’s equity compensation plans.
(m) All the outstanding shares of capital stock of each subsidiary of the Company have been
duly authorized and validly issued, are fully paid and nonassessable and, except to the extent set
forth in the General Disclosure Package and the Prospectus, are owned by the Company directly or
indirectly through one or more wholly-owned subsidiaries, free and clear of any claim, lien,
encumbrance, security interest, restriction upon voting or transfer or any other claim of any third
party.
(n) The execution, delivery and performance of this Agreement by the Company, the issue and
sale of the Stock by the Company and the consummation of the transactions contemplated hereby will
not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Company or any of its subsidiaries is a party or by which the
Company or any of its subsidiaries is bound or to which any of the property or assets of the
Company or any of its subsidiaries is subject, (ii) result in any violation of the provisions of
the charter or by-laws of the Company or any of its subsidiaries or (iii) result in any violation
of any statute or any order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their properties or assets;
except in all such cases in clauses (i) and (iii) of this paragraph (n) for such conflicts,
breaches, violations and defaults that would not result in a Material Adverse Effect.
(o) Except for the registration of the Stock under the Securities Act and such consents,
approvals, authorizations, registrations or qualifications as may be required under the Exchange
Act, and applicable state or foreign securities laws, the Financial Industry Regulatory Authority,
Inc. (“FINRA”) and the Nasdaq Stock Market LLC in connection with the sale of the Stock by
the Company, no consent, approval, authorization or order of, or filing or registration with, any
court or governmental agency or body is required for the execution, delivery and performance of
this Agreement by the Company and the consummation of the transactions contemplated hereby.
(p) Deloitte & Touche LLP, who have certified certain financial statements included or
incorporated by reference in the Registration Statements, the General Disclosure Package and the
Prospectus, and have audited the Company’s internal control over financial reporting and
management’s assessment thereof, is an independent registered public accounting firm within the
meaning of Article 2-01 of Regulation S-X and the Public Company Accounting Oversight Board (United
States) (the “PCAOB”).
5
(q) The financial statements, together with the related notes, included or incorporated by
reference in the General Disclosure Package, the Prospectus and in each Registration Statement
fairly present in all material respects the financial position and the results of operations and
changes in financial position of the Company and its consolidated subsidiaries at the respective
dates or for the respective periods therein specified. Such statements and related notes have been
prepared in accordance with generally accepted accounting principles in the United States applied
on a consistent basis except as may be set forth in the Prospectus. The financial statements,
together with the related notes, included or incorporated by reference in the General Disclosure
Package and the Prospectus comply in all material respects with the Securities Act and the Rules
and Regulations thereunder. No other financial statements or supporting schedules or exhibits are
required by the Securities Act or the Rules and Regulations thereunder to be included or
incorporated by reference in the General Disclosure Package, the Prospectus or the Registration
Statements.
(r) Neither the Company nor any of its subsidiaries has sustained, since the date of the
latest audited financial statements included or incorporated by reference in the General Disclosure
Package and the Prospectus, any material loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute
or court or governmental action, order or decree, otherwise than as set forth or contemplated in
the General Disclosure Package and the Prospectus; and, since such date until, and including, the
Closing Date, there has not been any change in the capital stock (other than Common Stock of the
Company issued pursuant to the exercise of warrants or upon the exercise of stock options or other
equity awards previously outstanding under the Company’s equity compensation plans) or long-term
debt of the Company or any of its subsidiaries or any Material Adverse Effect, otherwise than as
set forth or contemplated in the General Disclosure Package and the Prospectus.
(s) Except as set forth in the General Disclosure Package or the Prospectus, there is no legal
or governmental proceeding pending to which the Company or any of its subsidiaries is a party or of
which any property or assets of the Company or any of its subsidiaries is the subject that is
required to be described in the Registration Statements or the General Disclosure Package and is
not described therein, or that, singularly or in the aggregate, if determined adversely to the
Company or any of its subsidiaries, might have a Material Adverse Effect or would prevent or
adversely affect the ability of the Company to perform its obligations under this Agreement; and to
the Company’s knowledge, no such proceedings are threatened or contemplated by governmental
authorities or threatened by others.
(t) Neither the Company nor any of its subsidiaries (i) is in violation of its charter or
by-laws, (ii) is in default in any respect, and no event has occurred which, with notice or lapse
of time or both, would constitute such a default, in the due performance or observance of any term,
covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which it is a party or by which it is bound or to which any of its
property or assets is subject or (iii) is in violation in any respect of any law, ordinance,
governmental rule, regulation or court decree to which it or its property or assets may be subject
except any violations or defaults that, in the cases of clauses (ii) and (iii) of this paragraph
(t), singularly or in the aggregate, would not have a Material Adverse Effect.
(u) The Company and each of its subsidiaries possess all licenses, certificates,
authorizations and permits issued by, and have made all declarations and filings with, the
appropriate state, federal or foreign regulatory agencies or bodies (collectively, the
“Permits”) that are necessary or desirable for the ownership of their respective properties
or the conduct of their respective businesses as described in the General Disclosure Package and
the Prospectus except where the lack of such Permits, singularly or in the aggregate, would not
have a Material Adverse Effect, and the Company has not received notification of
6
any revocation or modification of any such Permit and has no reason to believe that any such
Permit will not be renewed.
(v) Neither the Company nor any of its subsidiaries is or, after giving effect to the Offering
of the Stock and the application of the proceeds thereof as described in the General Disclosure
Package and the Prospectus, will become an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, and the rules and regulations of the Commission
thereunder.
(w) Neither the Company nor, to the knowledge of the Company, any of its officers, directors
or affiliates has taken or will take, directly or indirectly, any action designed or intended to
stabilize or manipulate the price of any security of the Company, or which caused or resulted in,
or which might in the future reasonably be expected to cause or result in, stabilization or
manipulation of the price of any security of the Company.
(x) The Company and its subsidiaries own or possess the right to use all patents, trademarks,
trademark registrations, service marks, service ▇▇▇▇ registrations, trade names, copyrights,
licenses, inventions, trade secrets and rights described in the General Disclosure Package and the
Prospectus as being owned by them for the conduct of their respective businesses as now conducted
and the Company is not aware of any claim to the contrary or any challenge by any other person to
the rights of the Company and its subsidiaries with respect to the foregoing required to be
disclosed in the Company’s periodic reports under the Exchange Act. To the Company’s knowledge, the
Company’s business as now conducted does not infringe or conflict with any patents, trademarks,
service marks, trade names, copyrights, trade secrets, licenses or other intellectual property or
franchise right of any person except as would not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect. Except as described in the General Disclosure
Package and the Prospectus, no claim has been made against the Company alleging the infringement by
the Company of any patent, trademark, service ▇▇▇▇, trade name, copyright, trade secret, license in
or other intellectual property right or franchise right of any person, except as would not,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
(y) Except as set forth in the General Disclosure Package or the Prospectus, the Company and
each of its subsidiaries have good and marketable title in fee simple to, or have valid rights to
lease or otherwise use, all items of real or personal property that are material to the business of
the Company and its subsidiaries taken as a whole, in each case free and clear of all liens,
encumbrances, claims and defects, except as would not result in a Material Adverse Effect.
(z) No labor disturbance by the employees of the Company or any of its subsidiaries exists or,
to the best of the Company’s knowledge, is imminent that might be expected to have a Material
Adverse Effect. Except as set forth in the General Disclosure Package or the Prospectus, the
Company is not aware that any key employee or significant group of employees of the Company or any
subsidiary voluntarily plans to terminate employment with the Company or any such subsidiary.
(aa) No non-exempt “prohibited transaction” (as defined in Section 406 of the Employee
Retirement Income Security Act of 1974, as amended, including the regulations and published
interpretations thereunder (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986,
as amended from time to time (the “Code”)) or “accumulated funding deficiency” (as defined
in Section 302 of ERISA) or any of the events set forth in Section 4043(b) of ERISA (other than
events with respect to which the 30-day notice requirement under Section 4043 of ERISA has been
waived) has occurred with respect to any employee benefit plan of the Company or any of its
subsidiaries that could reasonably be expected have a Material Adverse Effect; each such employee
benefit plan is in compliance in all material respects with applicable law, including ERISA and the
Code; the Company has not incurred and does not
7
expect to incur liability under Title IV of ERISA with respect to the termination of, or
withdrawal from, any “pension plan”; and each “pension plan” (as defined in ERISA) for which the
Company would have any liability that is intended to be qualified under Section 401(a) of the Code
has received and is entitled to rely upon a favorable determination or opinion letter issued by the
IRS and, to the Company’s knowledge, nothing has occurred, whether by action or by failure to act,
which could reasonably be expected to adversely affect the continuing qualification of any such
pension plan.
(bb) There has been no storage, generation, transportation, handling, treatment, disposal,
discharge, emission, or other release of any kind of toxic or other wastes or other hazardous
substances by, due to, or caused by the Company or any of its subsidiaries (or, to the best of the
Company’s knowledge, any other entity for whose acts or omissions the Company or any of its
subsidiaries is or may be liable) upon any of the property now or previously owned or leased by the
Company or any of its subsidiaries, or upon any other property, in violation of any statute or any
ordinance, rule, regulation, order, judgment, decree or permit or which would, under any statute or
any ordinance, rule (including rule of common law), regulation, order, judgment, decree or permit,
give rise to any liability, except for any violation or liability that would not have, singularly
or in the aggregate with all such violations and liabilities, a Material Adverse Effect; there has
been no disposal, discharge, emission or other release of any kind onto such property or into the
environment surrounding such property of any toxic or other wastes or other hazardous substances
with respect to which the Company or any of its subsidiaries have knowledge, except for any such
disposal, discharge, emission, or other release of any kind that would not have, singularly or in
the aggregate with all such discharges and other releases, a Material Adverse Effect.
(cc) The Company and its subsidiaries each (i) has filed all necessary federal, state and
foreign income and franchise tax returns, (ii) has paid all federal state, local and foreign taxes
due and payable for which it is liable, and (iii) does not have any tax deficiency or claims
outstanding or assessed or, to the best of the Company’s knowledge, proposed against it that could
reasonably be expected to have a Material Adverse Effect.
(dd) The Company and each of its subsidiaries carry, or are covered by, insurance in such
amounts and covering such risks as is adequate for the conduct of their respective businesses and
the value of their respective properties and as is customary for companies engaged in similar
businesses in similar industries.
(ee) The Company and each of its subsidiaries maintains a system of internal control over
financial reporting (as such term is defined in Rule 13a-15 of the General Rules and Regulations
under the Exchange Act (the “Exchange Act Rules”)) that complies with the requirements of
the Exchange Act and has been designed to provide reasonable assurances 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 GAAP and to
maintain accountability for assets; (iii) access to assets is permitted only in accordance with
management’s general or specific authorization; and (iv) the recorded accountability for assets is
compared with existing assets at reasonable intervals and appropriate action is taken with respect
to any differences. The Company maintains effective internal control over financial reporting (as
such term is defined in Rule 13a-15 of the Exchange Act Rules). Except as described in the General
Disclosure Package, since the end of the Company’s most recent audited fiscal year, there has been
(A) no material weakness in the Company’s internal control over financial reporting (whether or not
remediated) and (B) no change in the Company’s internal control over financial reporting that has
materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting. The Company maintains disclosure controls and procedures (as such is
defined in Rule 13a-15 of the Exchange Act Rules) that comply with the requirements of the Exchange
Act; such disclosure controls and procedures have been designed to ensure that information required
to be disclosed by the Company and its subsidiaries is accumulated and communicated to the
8
Company’s management, including the Company’s principal executive officer and principal
financial officer by others within those entities, such disclosure controls and procedures are
effective in all material respects to perform the functions for which they were established.
(ff) The minute books of the Company and each of its subsidiaries have been made available
upon request to the Underwriter and counsel for the Underwriter, and such books (i) contain a
complete summary of all meetings and actions of the board of directors (including each board
committee) and stockholders of the Company and each of such subsidiaries since the time of its
respective incorporation or organization through the date of the latest meeting and action, and
(ii) accurately in all material respects reflect all transactions authorized in such minutes or
written consents.
(gg) There is no franchise, lease, agreement or document required by the Securities Act or by
the Rules and Regulations to be described in the General Disclosure Package, the Prospectus or any
document incorporated therein, or to be filed as an exhibit to the Registration Statements that is
not described or filed therein as required; and all descriptions of any such franchise agreements,
leases, or other agreements or documents contained in the General Disclosure Package, the
Prospectus or any document incorporated therein are accurate and complete descriptions of such
documents in all material respects. Other than as described in the General Disclosure Package and
the Prospectus, no such franchise agreement, lease, or other agreement or document has been
suspended or terminated for convenience or default by the Company or any of the other parties
thereto, and the Company has not received notice or any other knowledge of any such pending or
threatened suspension or termination, except for such pending or threatened suspensions or
terminations that would not reasonably be expected to, singularly or in the aggregate, have a
Material Adverse Effect.
(hh) No relationship, direct or indirect, exists between or among the Company on the one hand,
and the directors, officers, stockholders, customers or suppliers of the Company on the other hand,
that is required to be described in the General Disclosure Package and the Prospectus and that is
not so described.
(ii) No person or entity has the right to require registration of shares of Common Stock or
other securities of the Company or any of its subsidiaries because of the filing or effectiveness
of the Registration Statements or otherwise, except for persons and entities who have expressly
waived such right in writing or who have been given timely and proper written notice and have
failed to exercise such right within the time or times required under the terms and conditions of
such right.
(jj) Neither the Company nor any of its subsidiaries own any “margin securities” as that term
is defined in Regulation U of the Board of Governors of the Federal Reserve System (the
“Federal Reserve Board”), and none of the proceeds of the sale of the Stock will be used,
directly or indirectly, for the purpose of purchasing or carrying any margin security, for the
purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry
any margin security or for any other purpose which might cause any of the Stock to be considered a
“purpose credit” within the meanings of Regulation T, U or X of the Federal Reserve Board.
(kk) Other than any agreements between the Company and the Underwriter, neither the Company
nor any of its subsidiaries is a party to any agreement or understanding with any person that would
give rise to a valid claim against the Company or the Underwriter for a brokerage commission,
finder’s fee or like payment in connection with the offering and sale of the Stock or any
transaction contemplated by this Agreement.
(ll) No forward-looking statement (within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act) contained in either the General Disclosure Package or the
9
Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other
than in good faith.
(nn) The Company is in compliance in all material respects with all applicable provisions of
the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of 2002 and all rules and regulations promulgated thereunder or implementing
the provisions thereof (the “▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act”).
(oo) The Company is in compliance in all material respects with all applicable corporate
governance requirements set forth in the rules and regulations of the Nasdaq Stock Market LLC.
(pp) Neither the Company nor any of its subsidiaries nor, to the Company’s knowledge, any
employee or agent of the Company or any subsidiary, has (i) used any corporate funds for unlawful
contributions, gifts, entertainment or other unlawful expenses relating to political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to foreign or
domestic political parties or campaigns from corporate funds, (iii) violated, in any material
respect, any provision of the Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any
other unlawful payment.
(qq) There are no transactions, arrangements or other relationships between and/or among the
Company, any of its affiliates (as such term is defined in Rule 405 of the Securities Act) and any
unconsolidated entity, including, but not limited to, any structured finance, special purpose or
limited purpose entity, that could reasonably be expected to materially affect the Company’s
liquidity or the availability of or requirements for its capital resources, which transaction,
arrangement or other relationship is required to be described in the General Disclosure Package,
the Prospectus or any document incorporated therein and that has not been described as required.
(rr) There are no outstanding loans, advances (except normal advances for business expenses in
the ordinary course of business) or guarantees of indebtedness by the Company to or for the benefit
of any of the officers or directors of the Company, except as disclosed in the General Disclosure
Package and the Prospectus.
(ss) The operations of the Company and its subsidiaries are and have been conducted at all
times in material compliance with applicable financial recordkeeping and reporting requirements of
the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money
laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with
respect to the Money Laundering Laws is pending, or to the Company’s knowledge, threatened.
(tt) Neither the Company nor any of its subsidiaries nor, to the Company’s knowledge, any
director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is
currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department (“OFAC”); and, to the Company’s knowledge, the Company will not
directly or indirectly use the proceeds of the Offering, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.
(uu) Except as has otherwise been disclosed to the Underwriter, there are no affiliations or
associations between (i) any member of the FINRA and (ii) the Company or any of the Company’s
officers, directors or, to the Company’s knowledge, any 5% or greater securityholders of the
Company, except as set forth in the Registration Statement, the General Disclosure Package and the
Prospectus.
10
4. Purchase, Sale and Delivery of the Stock. On the basis of the
representations, warranties and covenants herein contained, and subject to the conditions herein
set forth, the Company agrees to sell to the Underwriter and the Underwriter agrees to purchase, at
a price of $1.927 per share, all of the Stock. Payment for the Stock to be sold hereunder is to be
made in Federal (same day) funds against delivery of certificates therefor, or in uncertificated
form, to the Underwriter for its account. Such payment and delivery are to be at 10:00 a.m., New
York time, on the fourth business day after the date of this Agreement or at such other time and
date not later than five business days thereafter as the Underwriter and the Company shall agree
upon, such time and date being herein referred to as the “Closing Date.” The closing and
delivery of the documents required to be delivered to the Underwriter pursuant to Sections
5 and 7 hereunder shall take place on the Closing Date at the office of ▇▇▇▇▇▇▇▇ &
▇▇▇▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇. Certificates evidencing the
Stock, if any, shall be in definitive form and shall be registered in such names and in such
denominations as the Underwriter shall request. Payment shall be made to the Company by wire
transfer of immediately available funds to a bank account designated by the Company against
delivery to the Underwriter of the Stock. Delivery of the Stock is to be made through the
facilities of The Depositary Trust Company, New York, New York.
5. Further Agreements Of The Company. The Company agrees with the
Underwriter:
(a) To prepare the Rule 462(b) Registration Statement, if necessary, in a form approved by the
Underwriter and file such Rule 462(b) Registration Statement with the Commission by 10:00 P.M., New
York time, on the date hereof, and the Company shall at the time of filing either pay to the
Commission the filing fee for the Rule 462(b) Registration Statement or give irrevocable
instructions for the payment of such fee pursuant to Rule 111(b) under the Rules and Regulations;
to prepare the Prospectus in a form approved by the Underwriter containing information previously
omitted at the time of effectiveness of the Registration Statement in reliance on Rules 430A, 430B
or 430C of the Rules and Regulations and to file such Prospectus pursuant to Rule 424(b) of the
Rules and Regulations not later than the second business day following the execution and delivery
of this Agreement or, if applicable, such earlier time as may be required by Rule 430A of the Rules
and Regulations; to notify the Underwriter immediately of the Company’s intention to file or
prepare any supplement or amendment to any Registration Statement or to the Prospectus and to make
no amendment or supplement to the Registration Statements, the General Disclosure Package or to the
Prospectus to which the Underwriter shall reasonably object by notice to the Company after a
reasonable period to review; to advise the Underwriter, promptly after it receives notice thereof,
of the time when any amendment to any Registration Statement has been filed or becomes effective or
any supplement to the General Disclosure Package or the Prospectus or any amended Prospectus has
been filed and to furnish the Underwriter with copies thereof; to file promptly all material
required to be filed by the Company with the Commission pursuant to Rules 433(d) or 163(b)(2) of
the Rules and Regulations, as the case may be; to file promptly all reports and any definitive
proxy or information statements required to be filed by the Company with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and
for so long as the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule
173(a) of the Rules and Regulations) is required in connection with the offering or sale of the
Stock; to advise the Underwriter, promptly after it receives notice thereof, of the issuance by the
Commission of any stop order or of any order preventing or suspending the use of any Preliminary
Prospectus, any Issuer Free Writing Prospectus or the Prospectus, of the suspension of the
qualification of any of the Stock for offering or sale in any jurisdiction, of the initiation or
threatening of any proceeding for any such purpose, or of any request by the Commission for the
amending or supplementing of the Registration Statements, the General Disclosure Package or the
Prospectus or for additional information; and, in the event of the issuance of any stop order or of
any order preventing or suspending the use of any Preliminary Prospectus, any Issuer Free Writing
Prospectus or the Prospectus or suspending any such qualification, and promptly to use its best
efforts to obtain the withdrawal of such order.
11
(b) The Company represents and agrees that, unless it obtains the prior consent of the
Underwriter, it has not made and will not, hereof, make any offer relating to the Stock that would
constitute a “free writing prospectus” as defined in Rule 405 of the Rules and Regulations unless
the prior written consent of the Underwriter has been received (each, a “Permitted Free Writing
Prospectus”); provided that the prior written consent of the Underwriter hereto shall be deemed
to have been given in respect of the General Use Free Writing Prospectuses, if any. The Company
represents that it has treated and agrees that it will treat each Permitted Free Writing Prospectus
as an Issuer Free Writing Prospectus, comply with the requirements of Rules 164 and 433 of the
Rules and Regulations applicable to any Issuer Free Writing Prospectus, including the requirements
relating to timely filing with the Commission, legending and record keeping and will not take any
action that would result in the Underwriter or the Company being required to file with the
Commission pursuant to Rule 433(d) of the Rules and Regulations a free writing prospectus prepared
by or on behalf of the Underwriter that the Underwriter otherwise would not have been required to
file thereunder.
(c) If at any time prior to the expiration of nine months after the date of the Prospectus,
solely when a prospectus relating to the Stock is required to be delivered (or in lieu thereof, the
notice referred to in Rule 173(a) of the Rules and Regulations), any event occurs or condition
exists as a result of which the Prospectus as then amended or supplemented would include any untrue
statement of a material fact, or omit to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made when the Prospectus is delivered
(or in lieu thereof, the notice referred to in Rule 173(a) of the Rules and Regulations), not
misleading, or if it is necessary at any time to amend or supplement any Registration Statement or
the Prospectus or to file under the Exchange Act any document incorporated by reference in the
Prospectus to comply with the Securities Act or the Exchange Act, that the Company will promptly
notify the Underwriter thereof and upon their request will prepare an appropriate amendment or
supplement or upon their request make an appropriate filing pursuant to Section 13 or 14 of the
Exchange Act in form and substance reasonably satisfactory to the Underwriter which will correct
such statement or omission or effect such compliance and will use its best efforts to have any
amendment to any Registration Statement promptly declared effective. The Company will furnish
without charge to the Underwriter and to any dealer in securities as many copies as the Underwriter
may from time to time reasonably request of such amendment or supplement. In case the Underwriter
is required to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) of
the Rules and Regulations) relating to the Stock nine months or more after the date of the
Prospectus, the Company upon the request of the Underwriter will prepare promptly an amended or
supplemented Prospectus as may be necessary to permit compliance with the requirements of Section
10(a)(3) of the Securities Act and deliver to the Underwriter as many copies as the Underwriter may
request of such amended or supplemented Prospectus complying with Section 10(a)(3) of the
Securities Act.
(d) If the General Disclosure Package is being used to solicit offers to buy the Stock at a
time when the Prospectus is not yet available to prospective purchasers and any event shall occur
as a result of which, in the judgment of the Company or in the reasonable opinion of the
Underwriter, it becomes necessary to amend or supplement the General Disclosure Package in order to
make the statements therein, in the light of the circumstances then prevailing, not misleading, or
to make the statements therein not conflict with the information contained or incorporated by
reference in the Registration Statement then on file and not superseded or modified, or if it is
necessary at any time to amend or supplement the General Disclosure Package to comply with any law,
the Company promptly will either (i) prepare, file with the Commission (if required) and furnish to
the Underwriter and any dealers an appropriate amendment or supplement to the General Disclosure
Package or (ii) prepare and file with the Commission an appropriate filing under the Exchange Act
which shall be incorporated by reference in the General Disclosure Package so that the General
Disclosure Package as so amended or supplemented will not, in the light of the circumstances then
prevailing, be misleading or conflict with the Registration Statement then on file, or so that the
General Disclosure Package will comply with law.
12
(e) If at any time following issuance of an Issuer Free Writing Prospectus in connection with
the Offering there occurred or occurs an event or development as a result of which such Issuer Free
Writing Prospectus conflicted or will conflict with the information contained in the Registration
Statement, Pricing Prospectus or Prospectus, including any document incorporated by reference
therein and any prospectus supplement deemed to be a part thereof and not superseded or modified or
included or would include an untrue statement of a material fact or omitted or would omit to state
a material fact required to be stated therein or necessary in order to make the statements therein,
in the light of the circumstances prevailing at the subsequent time, not misleading, the Company
has promptly notified or will promptly notify the Underwriter so that any use of the Issuer Free
Writing Prospectus may cease until it is amended or supplemented and has promptly amended or will
promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate
or correct such conflict, untrue statement or omission. The foregoing sentence does not apply to
statements in or omissions from any Issuer Free Writing Prospectus in reliance upon, and in
conformity with, any Underwriter’s Information.
(f) To furnish promptly to the Underwriter and to counsel for the Underwriter, upon request, a
signed copy of each of the Registration Statements as originally filed with the Commission, and of
each amendment thereto filed with the Commission, including all consents and exhibits filed
therewith. To deliver promptly to the Underwriter such number of the following documents as the
Underwriter shall reasonably request: (i) conformed copies of the Registration Statements as
originally filed with the Commission (in each case excluding exhibits), (ii) any Preliminary
Prospectus, (iii) any Issuer Free Writing Prospectus, (iv) the Prospectus (the delivery of the
documents referred to in clauses (i), (ii), (iii) and (iv) of this paragraph (f) to be made not
later than 10:00 A.M., New York time, on the second business day following the execution and
delivery of this Agreement), (v) conformed copies of any amendment to the Registration Statement
(excluding exhibits), (vi) any amendment or supplement to the General Disclosure Package or the
Prospectus (the delivery of the documents referred to in clauses (v) and (vi) of this paragraph (f)
to be made not later than 10:00 A.M., New York time, on the business day following the date of such
amendment or supplement) and (vii) any document incorporated by reference in the General Disclosure
Package or the Prospectus (excluding exhibits thereto) (the delivery of the documents referred to
in clause (vii) of this paragraph (f) to be made not later than 10:00 A.M., New York time, on the
business day following the date of such document).
(g) To make generally available to its stockholders as soon as practicable, but in any event
not later than 16 months after the effective date of the Registration Statement (as defined in Rule
158(c) under the Securities Act), an earnings statement of the Company and its subsidiaries (which
need not be audited) complying with Section 11(a) of the Securities Act and the Rules and
Regulations (including, at the option of the Company, Rule 158).
(h) The Company will promptly take from time to time such actions as the Underwriter may
reasonably request to qualify the Stock for Offering and sale under the securities or Blue Sky laws
of such jurisdictions as the Underwriter may designate and to continue such qualifications in
effect for so long as required for the distribution of the Stock in such jurisdictions; provided
that the Company and its subsidiaries shall not be obligated to qualify as foreign corporations in
any jurisdiction in which they are not so qualified or to file a general consent to service of
process in any jurisdiction.
(i) Upon request, during the period of five years from the date hereof, the Company will
deliver to the Underwriter, (i) as soon as they are available, copies of all reports or other
communications furnished to stockholders and (ii) as soon as they are available, copies of any
reports and financial statements furnished or filed with the Commission pursuant to the Exchange
Act or any national securities exchange or automatic quotation system on which the Stock is listed
or quoted. However, so long as the Company is subject to the reporting requirements of either
Section 13 or Section 15(d) of the Exchange Act and is timely filing reports with the Commission on
its Electronic Data Gathering, Analysis
13
and Retrieval system (“▇▇▇▇▇”), it is not required to furnish such reports or
statements to the Underwriter.
(j) The Company will not directly or indirectly offer, sell, assign, transfer, pledge,
contract to sell, or otherwise dispose of any shares of Common Stock or securities convertible into
or exercisable or exchangeable for Common Stock for a period of 90 days from the date of this
Agreement (the “Lock Up Period”) without the prior written consent of the Underwriter other
than the Company’s sale of the Stock hereunder and the issuance of shares pursuant to (i) employee
benefit plans, stock option plans or other compensation plans as in existence on the date hereof
and as described in the General Disclosure Package or (ii) currently outstanding options, warrants
or rights; provided, however, that to the extent the Underwriter is at such time providing research
coverage to the Company and subject to the restrictions set forth in FINRA Rule 2711(f)(4), if (1)
during the last 17 days of the Lock-Up Period, the Company releases earnings results or material
news or a material event relating to the Company occurs or (2) prior to the expiration of the
Lock-Up Period, the Company announces that it will release earnings results during the 16-day
period beginning on the last day of the Lock-Up Period, then in each case the Lock-Up Period will
be extended until the expiration of the 18-day period beginning on the date of release of the
earnings results or the occurrence of the material news or material event, as applicable, unless
the Underwriter waives, in writing, such extension. The Company will cause each officer and
director listed in Schedule III to this Agreement to furnish to the Underwriter, prior to
the Closing Date, a lock-up agreement, in form and substance reasonably satisfactory to counsel for
the Underwriter.
(k) To make available to the Underwriter copies of all correspondence to and from, and all
documents issued to and by, the Commission in connection with the registration of the Stock under
the Securities Act.
(l) Prior to the Closing Date, to furnish to the Underwriter, promptly after they have been
prepared, copies of any unaudited interim consolidated financial statements of the Company for any
periods subsequent to the periods covered by the financial statements appearing in the Registration
Statements and the Prospectus.
(m) Prior to 9:30 A.M. New York time on the business day immediately subsequent to the date
hereof, to issue a press release reasonably acceptable to the Underwriter disclosing the execution
of this Agreement and the transaction contemplated hereby. Prior to the Closing Date, not to issue
any press release or other communication directly or indirectly or hold any press conference with
respect to the Company, its condition, financial or otherwise, or earnings, business affairs or
business prospects (except for routine oral marketing communications in the ordinary course of
business and consistent with the past practices of the Company and of which the Underwriter is
notified in advance), without the prior written consent of the Underwriter, unless in the judgment
of the Company and its counsel, and after notification to the Underwriter, such press release or
communication is required by law.
(n) Until the Underwriter shall have notified the Company of the completion of the Offering,
the Company will not, and will cause its affiliated purchasers (as defined in Regulation M under
the Exchange Act) not to, either alone or with one or more other persons, bid for or purchase, for
any account in which it or any of its affiliated purchasers has a beneficial interest, any Common
Stock, or attempt to induce any person to purchase any Common Stock; and not to, and to cause its
affiliated purchasers not to, make bids or purchase for the purpose of creating actual, or
apparent, active trading in or of raising the price of the Common Stock.
(o) Not to take any action prior to the Closing Date that would require the Prospectus to be
amended or supplemented pursuant to Section 5(c).
14
(p) To at all times comply with all applicable provisions of the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act in effect
from time to time.
(q) To apply the net proceeds from the sale of the Stock as set forth in the Prospectus under
the heading “Use of Proceeds.”
6. Payment of Expenses. The Company agrees to pay, or reimburse if paid by the
Underwriter, whether or not the transactions contemplated hereby are consummated or this Agreement
is terminated: (a) the costs incident to the authorization, issuance, sale, preparation and
delivery of the Stock to the Underwriter and any taxes payable in that connection; (b) the costs
incident to the registration of the Stock under the Securities Act; (c) the costs incident to the
preparation, printing and distribution of the Registration Statements, the Base Prospectus, any
Preliminary Prospectus, any Issuer Free Writing Prospectus, the General Disclosure Package, the
Prospectus, any amendments, supplements and exhibits thereto or any document incorporated by
reference therein and the costs of printing, reproducing and distributing this Agreement and any
closing documents by mail, telex or other means of communications; (d) the fees and expenses
(including related fees and expenses of counsel for the Underwriter) incurred in connection with
securing any required review by FINRA of the terms of the sale of the Stock and any filings made
with FINRA, if applicable; (e) any applicable listing or other fees; (f) fifty percent (50%) of
the fees and expenses (including related fees and expenses of counsel to the Underwriter) of
qualifying the Stock under the securities laws of the several jurisdictions as provided in
Section 5(h) and of preparing, printing and distributing wrappers, blue sky memoranda and
legal investment surveys; (g) the cost of preparing and printing stock certificates; (h) all fees
and expenses of the registrar and transfer agent of the Stock; (i) fifty percent (50%) of the fees,
disbursements and expenses of counsel to the Underwriter; (j) the costs and expenses of the Company
(excluding any fees, costs or expenses of the Underwriter) relating to investor presentations on
any “road show” undertaken in connection with the marketing of the offering of the Stock,
including, without limitation, expenses associated with the preparation or dissemination of any
electronic road show and expenses associated with the production of road show slides and graphics,
and (k) all other costs and expenses incident to the offering of the Stock or the performance of
the obligations of the Company under this Agreement (including, without limitation, the fees and
expenses of the Company’s counsel and the Company’s independent accountants); provided, however,
that notwithstanding anything in this Agreement to the contrary, the Company shall not be liable
for and shall not be obligated to pay any such fees, costs, expenses or disbursements to the
Underwriter for out-of-pocket expenses (including fees, costs, expenses or disbursements for the
Underwriter’s counsel) in excess of $50,000 in the aggregate (the “Company Maximum Fee”);
provided further that, except to the extent otherwise provided in this Section 6 and in
Section 10, the Underwriter shall pay its own costs and expenses, including the fees and
expenses of its counsel and the expenses of advertising any offering of the Stock made by the
Underwriter.
7. Conditions to the obligations of the Underwriter and the Sale of the Stock. The
respective obligations of the Underwriter hereunder to acquire the Stock are subject to the
accuracy, when made and as of the Applicable Time and on the Closing Date, of the representations
and warranties of the Company contained herein, to the accuracy of the statements of the Company
made in any certificates pursuant to the provisions hereof, to the performance by the Company of
its obligations hereunder, and to each of the following additional terms and conditions:
(a) The Registration Statement is effective under the Securities Act, and no stop order
suspending the effectiveness of any Registration Statement or any part thereof, preventing or
suspending the use of any Base Prospectus, any Preliminary Prospectus, the Prospectus or any
Permitted Free Writing Prospectus or any part thereof shall have been issued and no proceedings for
that purpose or pursuant to Section 8A under the Securities Act shall have been initiated or
threatened by the Commission, and all requests for additional information on the part of the
Commission (to be included or incorporated by
15
reference in the Registration Statements or the Prospectus or otherwise) shall have been
complied with to the reasonable satisfaction of the Underwriter; and the Rule 462(b) Registration
Statement, if any, any Issuer Free Writing Prospectus (except for a “road show”) and the Prospectus
shall have been filed with, the Commission within the applicable time period prescribed for such
filing by, and in compliance with, the Rules and Regulations and in accordance with Section
5(a), and the Rule 462(b) Registration Statement, if any, shall have become effective
immediately upon its filing with the Commission; and, if applicable, FINRA shall have raised no
objection to the fairness and reasonableness of the terms of this Agreement or the transactions
contemplated hereby.
(b) The Underwriter shall not have discovered and disclosed to the Company on or prior to the
Closing Date that any Registration Statement or any amendment or supplement thereto contains an
untrue statement of a fact that, in the opinion of counsel for the Underwriter, is material or
omits to state any fact that, in the opinion of such counsel, is material and is required to be
stated therein or is necessary to make the statements therein not misleading, or that the General
Disclosure Package, any Issuer Free Writing Prospectus or the Prospectus or any amendment or
supplement thereto contains an untrue statement of fact which, in the opinion of such counsel, is
material or omits to state any fact that, in the opinion of such counsel, is material and is
necessary in order to make the statements, in the light of the circumstances in which they were
made, not misleading.
(c) All corporate proceedings and other legal matters incident to the authorization, form and
validity of each of this Agreement, the Stock, the Registration Statements, the General Disclosure
Package, each Issuer Free Writing Prospectus and the Prospectus and all other legal matters
relating to this Agreement and the transactions contemplated hereby shall be reasonably
satisfactory in all material respects to counsel for the Underwriter, and the Company shall have
furnished to such counsel all documents and information that they may reasonably request to enable
them to pass upon such matters.
(d) ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP, as counsel to the Company, shall have furnished to the
Underwriter such counsel’s written opinion and negative assurance statement, addressed to the
Underwriter and dated the Closing Date, in form and substance reasonably satisfactory to counsel
for the Underwriter.
(e) The Underwriter shall have received from ▇▇▇▇▇▇▇ Procter LLP, counsel for the Underwriter,
such opinion or opinions, dated the Closing Date, with respect to such matters as the Underwriter
may reasonably require, and the Company shall have furnished to such counsel such documents as they
reasonably request for enabling them to pass upon such matters.
(f) At the time of the execution of this Agreement, the Underwriter shall have received from
Deloitte & Touche LLP a letter, addressed to the Underwriter, executed and dated such date, in form
and substance satisfactory to the Underwriter (i) confirming that they are an independent
registered accounting firm with respect to the Company and its subsidiaries within the meaning of
the Securities Act and the Rules and Regulations and the PCAOB and (ii) stating the conclusions and
findings of such firm, of the type ordinarily included in accountants’ “comfort letters” to
underwriters, with respect to the financial statements and certain financial information contained
or incorporated by reference in the Registration Statements, the General Disclosure Package and the
Prospectus.
(g) On the effective date of any post-effective amendment to any Registration Statement and on
the Closing Date, the Underwriter shall have received a letter (the “bring-down letter”)
from Deloitte & Touche LLP addressed to the Underwriter and dated the Closing Date confirming, as
of the date of the bring-down letter (or, with respect to matters involving changes or developments
since the respective dates as of which specified financial information is given in the General
Disclosure Package and the Prospectus, as the case may be, as of a date not more than three (3)
business days prior to the date of the
16
bring-down letter), the conclusions and findings of such firm, of the type ordinarily included
in accountants’ “comfort letters” to underwriters, with respect to the financial information and
other matters covered by its letter delivered to the Underwriter concurrently with the execution of
this Agreement pursuant to paragraph (f) of this Section 7.
(h) The Company shall have furnished to the Underwriter a certificate, dated the Closing Date,
of its Chief Executive Officer or President and its Chief Financial Officer stating in their
capacities as officers of the Company that (i) such officers have carefully examined the
Registration Statement, the General Disclosure Package, any Permitted Free Writing Prospectus and
the Prospectus and, in their opinion, (A) the Registration Statement and each amendment thereto, at
the Applicable Time and as of the date of this Agreement, did not include any untrue statement of a
material fact and did not omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading, and (B) the General Disclosure Package, as of the
Applicable Time, and the Prospectus and each amendment or supplement thereto, as of the respective
date thereof and as of the Closing Date, did not include any untrue statement of a material fact
and did not omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances in which they were made, not misleading, (ii) since the effective date
of the Initial Registration Statement, no event has occurred that should have been set forth in a
supplement or amendment to the Registration Statement, the General Disclosure Package or the
Prospectus, that was not so set forth, (iii) to the best of their knowledge, as of the Closing
Date, the representations and warranties of the Company in this Agreement are true and correct and
the Company has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied hereunder at or prior to the Closing Date, and (iv) the Company has not
suffered, subsequent to the date of the most recent audited financial statements included or
incorporated by reference in the General Disclosure Package, any Material Adverse Effect.
(i) Since the date of the latest audited financial statements included in the General
Disclosure Package or incorporated by reference in the General Disclosure Package as of the date
hereof, (i) neither the Company nor any of its subsidiaries shall have sustained any loss or
interference with its business from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor dispute or court or governmental action, order or decree,
otherwise than as set forth in the General Disclosure Package, and (ii) there shall not have been
any change in the capital stock (other than issuance of options in the ordinary course of business
and pursuant to the Company’s equity compensation plans described in the General Disclosure Package
and the Prospectus or Common Stock issued pursuant to the exercise of warrants, upon the exercise
of stock options or other equity awards previously outstanding under the Company’s equity
compensation plans) or long-term debt of the Company or any of its subsidiaries, or any change, or
any development involving a prospective change, in or affecting the business, general affairs,
management, financial position, stockholders’ equity or results of operations of the Company and
its subsidiaries, otherwise than as set forth in the General Disclosure Package, the effect of
which, in any such case described in clause (i) or (ii) of this paragraph (i), is, in the judgment
of the Underwriter, so material and adverse as to make it impracticable or inadvisable to proceed
with the sale or delivery of the Stock on the terms and in the manner contemplated in the General
Disclosure Package.
(j) No action shall have been taken and no law, statute, rule, regulation or order shall have
been enacted, adopted or issued by any governmental agency or body that would prevent the issuance
or sale of the Stock or that would materially and adversely affect the business or operations of
the Company; and no injunction, restraining order or order of any other nature by any federal or
state court of competent jurisdiction shall have been issued which would prevent the issuance or
sale of the Stock or materially and adversely affect or potentially materially and adversely affect
the business or operations of the Company.
17
(k) Subsequent to the execution and delivery of this Agreement there shall not have occurred
any of the following: (i) trading in securities generally on the New York Stock Exchange, Nasdaq
Global Market or the NYSE Amex LLC or in the over-the-counter market, or trading in any securities
of the Company on any exchange or in the over-the-counter market, shall have been suspended or
materially limited, or minimum or maximum prices or maximum range for prices shall have been
established on any such exchange or such market by the Commission, by such exchange or market or by
any other regulatory body or governmental authority having jurisdiction, (ii) a banking moratorium
shall have been declared by Federal or state authorities or a material disruption has occurred in
commercial banking or securities settlement or clearance services in the United States, (iii) the
United States shall have become engaged in hostilities, or the subject of an act of terrorism, or
there shall have been an outbreak of or escalation in hostilities involving the United States, or
there shall have been a declaration of a national emergency or war by the United States or (iv)
there shall have occurred such a material adverse change in general economic, political or
financial conditions (or the effect of international conditions on the financial markets in the
United States shall be such) as to make it, in the judgment of the Underwriter, impracticable or
inadvisable to proceed with the sale or delivery of the Stock on the terms and in the manner
contemplated in the General Disclosure Package and the Prospectus.
(l) The Stock shall have been approved for listing, subject to official notice of issuance, on
the Nasdaq Global Market.
(m) The Underwriter shall have received the written lock-up agreements, in form and substance
reasonably satisfactory to counsel for the Underwriter, of the officers and directors of the
Company listed in Schedule III to this Agreement.
(n) The Company shall have prepared and filed with the Commission a Current Report on Form 8-K
with respect to the Offering, which shall include as an exhibit thereto this Agreement.
(o) The Company shall have furnished to the Underwriter a Secretary’s Certificate of the
Company, in form and substance reasonably satisfactory to counsel for the Underwriter.
(p) On or prior to the Closing Date, the Company shall have furnished to the Underwriter such
further certificates and documents as the Underwriter may reasonably request.
All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriter.
8. Indemnification and Contribution.
(a) The Company shall indemnify and hold harmless the Underwriter, its directors, officers,
managers, members, employees, representatives and agents and each person, if any, who controls the
Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act (collectively the “Underwriter Indemnified Parties,” and each a “Underwriter
Indemnified Party”) against any loss, claim, damage, expense or liability whatsoever (or any
action, investigation or proceeding in respect thereof), joint or several, to which such
Underwriter Indemnified Party may become subject, under the Securities Act or otherwise, insofar as
such loss, claim, damage, expense, liability, action, investigation or proceeding arises out of or
is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in
any Preliminary Prospectus, any Issuer Free Writing Prospectus, any “issuer information” filed or
required to be filed pursuant to Rule 433(d) of the Rules and Regulations, any Registration
Statement or the Prospectus, or in any amendment or supplement thereto or document incorporated by
reference therein, or (B) the omission or alleged omission to state in any
18
Preliminary Prospectus, any Issuer Free Writing Prospectus, any “issuer information” filed or
required to be filed pursuant to Rule 433(d) of the Rules and Regulations, any Registration
Statement or the Prospectus, or in any amendment or supplement thereto or document incorporated by
reference therein, a material fact required to be stated therein or necessary to make the
statements therein in light of (other than in the case of any Registration Statement) the
circumstances under which they are made not misleading, or (C) any breach of the representations
and warranties of the Company contained herein or the failure of the Company to perform its
obligations hereunder or pursuant to any law, or (D) any act or failure to act, or any alleged act
or failure to act, by the Underwriter in connection with, or relating in any manner to, the Stock
or the offering contemplated hereby, and that is included as part of or referred to in any loss,
claim, damage, expense, liability, action, investigation or proceeding arising out of or based upon
matters covered by subclause (A), (B) or (C) above of this Section 8(a) (provided that the
Company shall not be liable in the case of any matter covered hereunder to the extent that it is
finally judicially determined that such loss, claim, damage, expense or liability resulted
primarily from the gross negligence or willful misconduct of the Underwriter), and shall reimburse
each Underwriter Indemnified Party promptly upon demand for any reasonable legal fees or other
expenses reasonably incurred by that Underwriter Indemnified Party in connection with
investigating, or preparing to defend, or defending against, or appearing as a third party witness
in respect of, or otherwise incurred in connection with, any such loss, claim, damage, expense,
liability, action, investigation or proceeding, as such fees and expenses are incurred; provided,
however, that the Company shall not be liable in any such case to the extent that any such loss,
claim, damage, expense or liability arises out of or is based upon an untrue statement or alleged
untrue statement in, or omission or alleged omission from any Preliminary Prospectus, any
Registration Statement or the Prospectus, or any such amendment or supplement thereto, or any
Issuer Free Writing Prospectus made in reliance upon and in conformity with written information
furnished to the Company by the Underwriter specifically for use therein, which information the
parties hereto agree is limited to the Underwriter’s Information; provided further that any
reimbursement payments made by the Company to any Underwriter Indemnified Party shall be returned
by such Underwriter Indemnified Party to the Company to the extent that any such action, claim,
proceeding or investigation is finally judicially determined to have resulted primarily from such
Underwriter Indemnified Party’s gross negligence or willful misconduct. This indemnity agreement in
this Section 8(a) is not exclusive and is in addition to any liability that the Company
might otherwise have, and shall not limit any rights or remedies that may otherwise be available
under this Agreement at law or in equity to any Underwriter Indemnified Party.
(b) The Underwriter shall indemnify and hold harmless the Company and its directors, its
officers who signed the Registration Statement and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
(collectively the “Company Indemnified Parties” and each a “Company Indemnified
Party”) against any loss, claim, damage, expense or liability whatsoever (or any action,
investigation or proceeding in respect thereof), joint or several, to which such Company
Indemnified Party may become subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, expense, liability, action, investigation or proceeding arises out of or is based
upon (i) any untrue statement or alleged untrue statement of a material fact contained in any
Preliminary Prospectus, any Issuer Free Writing Prospectus, any “issuer information” filed or
required to be filed pursuant to Rule 433(d) of the Rules and Regulations, any Registration
Statement or the Prospectus, or in any amendment or supplement thereto, or (ii) the omission or
alleged omission to state in any Preliminary Prospectus, any Issuer Free Writing Prospectus, any
“issuer information” filed or required to be filed pursuant to Rule 433(d) of the Rules and
Regulations, any Registration Statement or the Prospectus, or in any amendment or supplement
thereto, a material fact required to be stated therein or necessary to make the statements therein
in light of (other than in the case of any Registration Statement) the circumstances under which
they are made not misleading, but in each case only to the extent that the untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by the Underwriter specifically for
use therein, which information the parties hereto agree is
19
limited to the Underwriter’s Information, and shall reimburse the Company Indemnified Parties
for any legal or other expenses reasonably incurred by such party in connection with investigating
or preparing to defend or defending against or appearing as third party witness in connection with
any such loss, claim, damage, liability, action, investigation or proceeding, as such fees and
expenses are incurred. This indemnity agreement is not exclusive and will be in addition to any
liability which the Underwriter might otherwise have and shall not limit any rights or remedies
which may otherwise be available under this Agreement, at law or in equity to the Company
Indemnified Parties.
(c) Promptly after receipt by an indemnified party under this Section 8 of notice of
the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party under this Section 8, notify such indemnifying party in
writing of the commencement of that action; provided, however, that the failure to notify the
indemnifying party shall not relieve it from any liability which it may have under this Section
8 except to the extent it has been materially prejudiced by such failure; and, provided,
further, that the failure to notify an indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 8. If any such
action shall be brought against an indemnified party, and it shall notify the indemnifying party
thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume the defense of such
action with counsel reasonably satisfactory to the indemnified party (which counsel shall not,
except with the written consent of the indemnified party, be counsel to the indemnifying party).
After notice from the indemnifying party to the indemnified party of its election to assume the
defense of such action, except as provided herein, the indemnifying party shall not be liable to
the indemnified party under Section 8 for any legal or other expenses subsequently incurred
by the indemnified party in connection with the defense of such action other than reasonable costs
of investigation; provided, however, that any indemnified party shall have the right to employ
separate counsel in any such action and to participate in the defense of such action but the fees
and expenses of such counsel shall be at the expense of such indemnified party unless (i) the
employment thereof has been specifically authorized in writing by the Company in the case of a
claim for indemnification under Section 8(a) or the Underwriter in the case of a claim for
indemnification under Section 8(b), (ii) the indemnifying party has failed to assume the
defense of such action and employ counsel reasonably satisfactory to the indemnified party within a
reasonable period of time after notice of the commencement of the action or the indemnifying party
does not diligently defend the action after assumption of the defense or (iii) the named parties to
any such action (including any impleaded parties) include both (A) the indemnified parties and (B)
the indemnifying party, and the indemnified parties shall have reasonably determined that the
defenses available to them are not available to the indemnifying party and/or may not be consistent
with the best interests of the indemnifying party or the indemnified parties, in which case, if
such indemnified party notifies the indemnifying party in writing that it elects to employ separate
counsel at the expense of the indemnifying party, the indemnifying party shall not have the right
to assume the defense of (or, in the case of a failure to diligently defend the action after
assumption of the defense, to continue to defend) such action on behalf of such indemnified party
and the indemnifying party shall be responsible for legal or other expenses subsequently incurred
by such indemnified party in connection with the defense of such action; provided, however, that
the indemnifying party shall not, in connection with any one such action or separate but
substantially similar or related actions in the same jurisdiction arising out of the same general
allegations or circumstances, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys at any time for all such indemnified parties (in addition to local
counsel), which firm shall be designated in writing by the Underwriter if the indemnified parties
under this Section 8 consist of any Underwriter Indemnified Party or by the Company if the
indemnified parties under this Section 8 consist of any Company Indemnified Parties.
Subject to this Section 8, the amount payable by an indemnifying party under Section
8 shall include, but not be limited to, (x) reasonable legal fees and expenses of counsel to
the indemnified party and any other reasonable expenses in investigating, or preparing to defend or
defending against, or appearing as a third party witness in respect of, or otherwise
20
incurred in connection with, any action, investigation, proceeding or claim, and (y) all
amounts paid in settlement of any of the foregoing. No indemnifying party shall, without the prior
written consent of the indemnified parties, settle or compromise or consent to the entry of
judgment with respect to any pending or threatened action or any claim whatsoever, in respect of
which indemnification or contribution could be sought under this Section 8 (whether or not
the indemnified parties are actual or potential parties thereto). Subject to the provisions of the
following sentence, no indemnifying party shall be liable for settlement of any pending or
threatened action or any claim whatsoever that is effected without its written consent (which
consent shall not be unreasonably withheld or delayed), but (x) if settled with its written
consent, (y) if its consent has been unreasonably withheld or delayed or (z) if there be a judgment
for the plaintiff in any such matter, the indemnifying party agrees to indemnify and hold harmless
any indemnified party from and against any loss or liability by reason of such settlement or
judgment.
(d) If the indemnification provided for in this Section 8 is unavailable or
insufficient to hold harmless an indemnified party under Section 8(a) or 8(b)
(except by reason of the gross negligence or willful misconduct of the indemnified party), then
each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid, payable or otherwise incurred by such indemnified party as a result of such loss,
claim, damage, expense or liability (or any action, investigation or proceeding in respect
thereof), as incurred, (i) in such proportion as shall be appropriate to reflect the relative
benefits received by the Company on the one hand and the Underwriter on the other hand from the
offering of the Stock, or (ii) if the allocation provided by clause (i) of this Section
8(d) is not permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative benefits referred to in clause (i) of this Section 8(d) but also the
relative fault of the Company on the one hand and the Underwriter on the other with respect to the
statements, omissions, acts or failures to act which resulted in such loss, claim, damage, expense
or liability (or any action, investigation or proceeding in respect thereof) as well as any other
relevant equitable considerations. The relative benefits received by the Company on the one hand
and the Underwriter on the other with respect to the Offering shall be deemed to be in the same
proportion as the total net proceeds from the Offering of the Stock purchased by the Underwriter
(before deducting expenses) received by the Company bear to the total fees received by the
Underwriter with respect to the Stock purchased pursuant to this Agreement, in each case as set
forth in the table on the cover page of the Prospectus. The relative fault of the Company on the
one hand and the Underwriter on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company on the one hand or
the Underwriter on the other, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement, omission, act or failure
to act; provided that the parties hereto agree that the written information furnished to the
Company by the Underwriter for use in any Preliminary Prospectus, any Registration Statement or the
Prospectus, or in any amendment or supplement thereto, consists solely of the Underwriter’s
Information.
(e) The Company and the Underwriter agree that it would not be just and equitable if
contributions pursuant to Section 8(d) above were to be determined by pro rata allocation
or by any other method of allocation which does not take into account the equitable considerations
referred to Section 8(d) above. The amount paid or payable by an indemnified party as a
result of the loss, claim, damage, expense, liability, action, investigation or proceeding referred
to in Section 8(d) above shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party in connection with
investigating, preparing to defend or defending against or appearing as a third party witness in
respect of, or otherwise incurred in connection with, any such loss, claim, damage, expense,
liability, action, investigation or proceeding. Notwithstanding the provisions of this Section
8(e), the Underwriter shall not be required to contribute any amount in excess of the total
underwriting discounts and commissions applicable to the Stock purchased by the Underwriter less
the amount of any damages which the Underwriter has otherwise paid or become liable to pay by
reason of
21
any untrue or alleged untrue statement, omission or alleged omission, act or alleged act or
failure to act or alleged failure to act. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.
9. Termination. The obligations of the Underwriter hereunder to purchase the Stock
may be terminated by the Underwriter, in its absolute discretion by notice given to the Company
prior to delivery of and payment for the Stock if, prior to that time, any of the events described
in Sections 7(i) or 7(k) have occurred or if the Underwriter shall decline to
purchase the Stock for any reason permitted under this Agreement.
10. Reimbursement of Underwriter’s Expenses. Notwithstanding anything to the
contrary in this Agreement, if (a) this Agreement shall have been terminated pursuant to
Section 9, (b) the Company shall fail to tender the Stock for delivery to the Underwriter
for any reason not permitted under this Agreement (other than in connection with the circumstances
set forth in clauses (a), (c), or (d)(i) of this Section 10), (c) the Underwriter shall
decline to purchase the Stock for any reason permitted under this Agreement or (d) the sale of the
Stock is not consummated (i) because any condition to the obligations of the Underwriter set forth
herein is not satisfied or (ii) because of the refusal, inability or failure on the part of the
Company to perform any agreement herein or to satisfy any condition or to comply with the
provisions hereof (other than in connection with the circumstances set forth in clauses (a), (c),
or (d)(i) of this Section 10), then in addition to the payment of amounts in accordance
with Section 6, the Company shall reimburse the Underwriter for the fees and expenses of
Underwriter’s counsel and for such out-of-pocket expenses as shall have been reasonably incurred by
it in connection with this Agreement and the proposed purchase of the Stock, including, without
limitation, travel and lodging expenses of the Underwriter, and upon demand the Company shall pay
the full amount thereof to the Underwriter; provided that any such reimbursement shall, together
with any other costs, fees, expenses or disbursements under this Agreement, not exceed the Company
Maximum Amount in the event of the circumstances set forth in clauses (a), (c), or (d)(i) above.
11. Absence of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) the Underwriter’s responsibility to the Company is solely contractual in nature, the
Underwriter has been retained solely to act as underwriter in connection with the sale of the Stock
and no fiduciary, advisory or agency relationship between the Company and the Underwriter has been
created in respect of any of the transactions contemplated by this Agreement, irrespective of
whether the Underwriter has advised or is advising the Company on other matters;
(b) the price of the Stock set forth in this Agreement was established by the Company
following discussions with the Underwriter, and the Company is capable of evaluating and
understanding, and understands and accepts, the terms, risks and conditions of the transactions
contemplated by this Agreement;
(c) it has been advised that the Underwriter and its affiliates are engaged in a broad range
of transactions which may involve interests that differ from those of the Company and that the
Underwriter has no obligation to disclose such interests and transactions to the Company by virtue
of any fiduciary, advisory or agency relationship; and
(d) it waives, to the fullest extent permitted by law, any claims it may have against the
Underwriter for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the
Underwriter shall have no liability (whether direct or indirect) to the Company in respect of such
a
22
fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in
right of the Company, including stockholders, employees or creditors of the Company.
12. Successors; Persons Entitled to Benefit of Agreement. This Agreement
shall inure to the benefit of and be binding upon the Underwriter, the Company and their respective
successors and assigns. Nothing expressed or mentioned in this Agreement is intended or shall be
construed to give any person, other than those persons mentioned in the preceding sentence or
otherwise explicitly mentioned in this Agreement, any legal or equitable right, remedy or claim
under or in respect of this Agreement, or any provisions herein contained, this Agreement and all
conditions and provisions hereof being intended to be and being for the sole and exclusive benefit
of such persons and for the benefit of no other person; except that (i) the representations,
warranties, covenants, agreements and indemnities of the Company contained in this Agreement shall
also be for the benefit of the Underwriter Indemnified Parties, and (ii) the indemnities of the
Underwriter shall be for the benefit of the Company Indemnified Parties. It is understood that
Underwriter’s responsibility to the Company is solely contractual in nature and the Underwriter
does not owe the Company, or any other party, any fiduciary duty as a result of this Agreement.
13. Survival of Indemnities, Representations, Warranties, etc. The
respective indemnities, covenants, agreements, representations, warranties and other statements of
the Company and the Underwriter, as set forth in this Agreement or made by them respectively,
pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation
made by or on behalf of the Underwriter, the Company, or any person controlling either of them and
shall survive delivery of and payment for the Stock. Notwithstanding any termination of this
Agreement, including without limitation any termination pursuant to Section 9, the
indemnities, contribution, covenants, agreements, representations, warranties and other statements
forth in Sections 3, 6, 8, and 10 and Sections 11 through
20, inclusive, of this Agreement shall not terminate and shall remain in full force and
effect at all times.
14. Notices. All statements, requests, notices and agreements hereunder shall be in
writing, and:
(a) if to the Underwriter, shall be delivered or sent by mail, telex, facsimile transmission
or email to ▇▇▇▇▇ and Company, LLC, ▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention:
▇▇▇▇▇ ▇▇▇▇▇▇, Managing Director — Capital Markets, Fax: ▇▇▇-▇▇▇-▇▇▇▇, with a copy to the General
Counsel, Fax: ▇▇▇-▇▇▇-▇▇▇▇, and with a copy (which shall not constitute notice hereunder) to
▇▇▇▇▇▇▇ Procter LLP, The New York Times Building, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention:
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq., Fax: ▇▇▇-▇▇▇-▇▇▇▇; and
(b) if to the Company, shall be delivered or sent by mail, telex, facsimile transmission or
email to Mindspeed Technologies, Inc., ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇
▇▇▇▇▇-▇▇▇▇, Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Vice President, Legal, Fax: ▇▇▇-▇▇▇-▇▇▇▇, with a copy
(which shall not constitute notice hereunder) to ▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq., Fax: ▇▇▇-▇▇▇-▇▇▇▇.
Any such statements, requests, notices or agreements shall take effect at the time of receipt
thereof.
15. Definition of Certain Terms. For purposes of this Agreement, (a) “business
day” means any day on which the New York Stock Exchange, Inc. is open for trading and (b)
“subsidiary” means “significant subsidiary” as that term is defined in Rule 1-02(w) of
Regulation S-X.
16. Governing Law, Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, including without limitation Section 5-1401 of
23
the New York General Obligations. The Company irrevocably (a) submits to the non-exclusive
jurisdiction of the Federal and state courts in the Borough of Manhattan in The City of New York
for the purpose of any suit, action or other proceeding arising out of this Agreement or the
transactions contemplated by this Agreement, the Registration Statements and any Preliminary
Prospectus or the Prospectus, (b) agrees that all claims in respect of any such suit, action or
proceeding may be heard and determined by any such court, (c) waives to the fullest extent
permitted by applicable law, any immunity from the jurisdiction of any such court or from any legal
process, (d) agrees not to commence any such suit, action or proceeding other than in such courts,
and (e) waives, to the fullest extent permitted by applicable law, any claim that any such suit,
action or proceeding is brought in an inconvenient forum
17. Underwriter’s Information. The parties hereto acknowledge and agree that, for
all purposes of this Agreement, the Underwriter’s Information consists solely of the information
under the headings “Underwriting — Discounts and Commissions,” “Underwriting — Stabilization,”
“Underwriting — Passive Market Making,” “Underwriting — Electronic Offer, Sale and Distribution
of Shares,” and “Underwriting — Other Relationships” in the Prospectus.
18. Partial Unenforceability. The invalidity or unenforceability of any section,
paragraph, clause or provision of this Agreement shall not affect the validity or enforceability of
any other section, paragraph, clause or provision hereof. If any section, paragraph, clause or
provision of this Agreement is for any reason determined to be invalid or unenforceable, there
shall be deemed to be made such minor changes (and only such minor changes) as are necessary to
make it valid and enforceable.
19. General. This Agreement constitutes the entire agreement of the parties to this
Agreement and supersedes all prior written or oral and all contemporaneous oral agreements,
understandings and negotiations with respect to the subject matter hereof. In this Agreement, the
masculine, feminine and neuter genders and the singular and the plural include one another. The
section headings in this Agreement are for the convenience of the parties only and will not affect
the construction or interpretation of this Agreement. This Agreement may be amended or modified,
and the observance of any term of this Agreement may be waived, only by a writing signed by the
Company and the Underwriter.
20. Counterparts. This Agreement may be signed in counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument and such signatures may be delivered by facsimile or by e-mail delivery of a “.pdf”
format data file.
24
If the foregoing is in accordance with your understanding of the agreement between the Company
and the Underwriter, kindly indicate your acceptance in the space provided for that purpose below.
| Very truly yours, Mindspeed Technologies, Inc. |
||||
| By | /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇ | |||
| Title: Chief Executive Officer | ||||
Accepted as of the date first
above written:
above written:
| ▇▇▇▇▇ and Company, LLC |
||||
| By | /s/ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ | |||
| Title: Managing Director | ||||
SCHEDULE I
Pricing Information
Stock to be Sold: 4,750,000 shares
Terms of the Company Management’s participation in the offering, if any
Offering Price: $2.05 per share of Stock
Underwriting Discounts and Commissions: 6.0%
Estimated Net Proceeds to the Company (after underwriting discounts and commissions, but before transaction expenses): $9,153,250
SCHEDULE II
General Use Free Writing Prospectuses
None.
SCHEDULE III
List of Company officers and directors subject to lock-up
▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇