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Exhibit 99.1
▇▇▇▇▇▇▇ RIVER ASSOCIATES INCORPORATED
INDEMNITY AGREEMENT
This Indemnity Agreement is made as of ____________, 1999 by and among
▇▇▇▇▇▇▇ River Associates Incorporated, a Massachusetts corporation (the
"Company"), and the stockholders of the Company named in EXHIBIT A hereto (the
"Selling Stockholders").
WHEREAS, the Company and the Selling Stockholders propose to sell an
aggregate of up to 2,300,000 shares of the common stock, without par value (the
"Common Stock"), of the Company to the several underwriters (the "Underwriters")
named in that certain underwriting agreement (the "Underwriting Agreement") of
even date herewith by and among the Company, the Selling Stockholders, Banc of
America Securities LLC, ▇▇▇▇▇▇▇ ▇▇▇▇▇ & Company, L.L.C. and ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney
Inc., as representatives of the Underwriters, upon the terms described in the
Underwriting Agreement; and
WHEREAS, pursuant to Section 8 of the Underwriting Agreement, the
Selling Stockholders have agreed to indemnify the Underwriters in certain
respects and contribute to the payment of certain amounts and the Selling
Stockholders desire that the Company agree to indemnify them in certain respects
and contribute to the payment of certain amounts as hereinafter provided;
NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and
the Selling Stockholders hereby agree as follows:
1. INDEMNIFICATION OF THE SELLING STOCKHOLDERS. The Company shall
indemnify and hold harmless each Selling Stockholder, and each person, if any,
who controls any Selling Stockholder within the meaning of Section 15 of the
Securities Act of 1933, as amended (the "Securities Act"), or Section 20 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), from and
against any loss, claim, damage, liability or expense, as incurred, to which
such Selling Stockholder or such controlling person may become subject, under
the Securities Act, the Exchange Act or other federal or state statutory law or
regulation, at common law, under Section 8 or Section 9 of the Underwriting
Agreement, or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of such Selling Stockholder or
such controlling person, as the case may be), insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated
below) arises out of or is based (i) upon any failure, omission or alleged
failure or omission on the part of the Company, in connection with the
Registration Statement, any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) or the offering contemplated thereby, to comply
with any provision of the Securities Act and the then applicable rules and
regulations of the Securities and Exchange Commission or other federal agency at
the time charged with administration of the Securities Act; (ii) upon any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement, or any amendment thereto, including any information
deemed to be a part thereof pursuant to Rule 430A or Rule 434 under the
Securities Act, or the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein not
misleading; (iii) upon any untrue statement or alleged untrue statement of a
material fact contained in any preliminary
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prospectus or the Prospectus (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; (iv) in whole or in part upon any inaccuracy in the
representations and warranties of the Company contained in the Underwriting
Agreement; (v) in whole or in part upon any failure of the Company to perform
its obligations under the Underwriting Agreement or under law; (vi) upon any act
or failure to act or any alleged act or failure to act by any Underwriter in
connection with, or relating in any manner to, the offering contemplated by the
Underwriting Agreement, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon any matter
covered by clause (ii) or (iii) above; and shall reimburse each Selling
Stockholder and each such controlling person for any and all expenses (including
the reasonable fees and disbursements of not more than one separate counsel
(together with local counsel) for the Selling Stockholders) as such expenses are
reasonably incurred by such Selling Stockholder or such controlling person in
connection with investigating, defending, settling, compromising or paying any
such loss, claim, damage, liability, expense or action. Notwithstanding the
foregoing, the indemnity and reimbursement agreements in the preceding sentence
shall not apply to any loss, claim, damage, liability or expense to the extent,
but only to the extent, that it arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in
reliance upon and in conformity with written information furnished to the
Company by such Selling Stockholder expressly for use in the Registration
Statement, any preliminary prospectus or the Prospectus (or any amendment or
supplement thereto). The indemnity and reimbursement agreements set forth in
this Section 1 shall be in addition to any liabilities that the Company may
otherwise have.
2. NOTIFICATION AND OTHER INDEMNIFICATION PROCEDURES. Promptly after
receipt by an indemnified party under Section 1 of notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be
made against the Company under Section 1, notify the Company in writing of the
commencement thereof, but the omission so to notify the Company will not relieve
the Company from any liability which the Company may have to any indemnified
party for contribution or otherwise than under the indemnity agreement contained
in Section 1 or to the extent the Company is not prejudiced as a proximate
result of such failure. In case any such action is brought against any
indemnified party and such indemnified party seeks or intends to seek indemnity
from the Company, the Company will be entitled to participate in, and, to the
extent that it shall elect by written notice delivered to the indemnified party
promptly after receiving the aforesaid notice from such indemnified party, to
assume the defense thereof with counsel selected by the Company; provided,
however, that if the defendants in any such action include both the indemnified
party and the Company and the indemnified party shall have reasonably concluded
that a conflict may arise between the positions of the Company and the
indemnified party in conducting the defense of any such action or that there may
be legal defenses available to such indemnified party and/or other indemnified
parties that are different from or additional to those available to the Company,
the indemnified party or parties shall have the right to select separate
counsel, satisfactory to the Company, to assume such legal defenses and
otherwise to participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the Company to such
indemnified party of the Company's election so to assume the defense of such
action, the Company will not be liable to such indemnified party under Section 1
for any legal or other expenses subsequently incurred by such indemnified party
in connection with the defense thereof unless (i) the indemnified party shall
have employed separate counsel in accordance with the proviso to the
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next preceding sentence (it being understood, however, that the Company shall
not be liable for the fees and expenses of more than one separate counsel
(together with local counsel), satisfactory to the Company, representing the
indemnified parties who are parties to such action) or (ii) the Company shall
not have employed counsel to represent the indemnified party within a reasonable
time after notice of commencement of the action, in each of which cases the
reasonable fees and expenses of counsel shall be at the expense of the Company.
As a condition to indemnification hereunder, each indemnified party shall
cooperate fully with the Company in the defense of any action with respect to
which indemnification is to be sought, and, at the Company's expense, shall
provide all such documents and take all such actions which the Company may
reasonably request in connection with such defense.
3. SETTLEMENTS. The Company shall not be liable for any settlement
of any proceeding effected without its written consent, but if settled with such
consent or if there be a final judgment for the plaintiff, the Company shall
indemnify the indemnified party against any loss, claim, damage, liability or
expense by reason of such settlement or judgment. The Company shall not, without
the prior written consent of the indemnified party, effect any settlement,
compromise or consent to the entry of judgment in any pending or threatened
action, suit or proceeding in respect of which any indemnified party is or could
have been a party and indemnity was or could have been sought hereunder by such
indemnified party, unless such settlement, compromise or consent includes an
unconditional release of such indemnified party from all liability on claims
that are the subject matter of such action, suit or proceeding.
4. CONTRIBUTION.
(a) If the indemnification provided for in Section 1 is for any
reason held to be unavailable to or otherwise insufficient to hold
harmless an indemnified party in respect of any losses, claims,
damages, liabilities or expenses referred to therein, then the Company
shall contribute to the aggregate amount paid or payable by such
indemnified party, as incurred, as a result of any losses, claims,
damages, liabilities or expenses referred to therein (i) in such
proportion as is appropriate to reflect the relative benefits received
by the Company, on the one hand, and the indemnified party, on the
other hand, from the offering of the Common Shares pursuant to the
Underwriting Agreement or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the Company, on the one
hand, and the indemnified party, on the other hand, in connection with
the statements in or omissions from any preliminary prospectus, the
Prospectus or the Registration Statement (or any amendment or
supplement to any of the foregoing) or inaccuracies in the
representations and warranties of the Company in the Underwriting
Agreement that resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The
relative benefits received by the Company, on the one hand, and the
indemnified party, on the other hand, in connection with the offering
of the Common Shares pursuant to the Underwriting Agreement shall be
deemed to be in the same proportion as the total net proceeds from the
offering (before deducting expenses) received by the Company bears to
the total net proceeds from the offering received by the indemnified
party. The relative fault of the Company, on the one hand, and the
indemnified party, on the other hand, shall be determined by reference
to,
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among other things, whether any such untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material
fact or any such inaccurate or alleged inaccurate representation or
warranty relates to information supplied by the Company, on the one
hand, or the indemnified party, on the other hand, and the parties'
relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.
(b) The amount paid or payable by a party as a result of the
losses, claims, damages, liabilities and expenses referred to above
shall be deemed to include, subject to the limitations set forth in
Section 1 and Section 2, any legal or other fees or expenses reasonably
incurred by such party in connection with investigating, defending,
settling or compromising any action or claim. The provisions set forth
in Section 2 with respect to notice of commencement of any action shall
apply if a claim for contribution is to be made under this Section 4;
provided, however, that no additional notice shall be required with
respect to any action for which notice has been given under Section 2
for purposes of indemnification.
(c) The Company and the Selling Stockholders agree that it would
not be just and equitable if contribution pursuant to this Section 4
were determined by pro rata allocation (even if the Selling
Stockholders were treated as one entity for such purpose) or by any
other method of allocation which does not take account of the equitable
considerations referred to in this Section 4.
(d) 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. For purposes of this Section 4, each person, if any,
who controls a Selling Stockholder within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act shall have the
same rights to contribution as such Selling Stockholder.
5. CAPITALIZED TERMS. Except as otherwise specified, capitalized
terms used herein which are not otherwise specifically defined herein shall have
the meanings given them in the Underwriting Agreement. Notices required or
permitted hereunder shall be given in the manner prescribed in Section 13 of the
Underwriting Agreement.
6. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon, and
inure to the benefit of, the Company, the Selling Stockholders, and their
respective controlling persons, officers, directors, successors, heirs,
executors, administrators and assigns.
7. GOVERNING LAW. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the Commonwealth of Massachusetts,
without regard to its principles of conflicts of laws.
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IN WITNESS WHEREOF, the parties hereto have executed this Indemnity
Agreement as an agreement under seal as of the date and year first written
above.
▇▇▇▇▇▇▇ RIVER ASSOCIATES INCORPORATED
By: ______________________________________
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President
THE SELLING STOCKHOLDERS
By: ______________________________________
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, attorney-in-fact
By: ______________________________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, attorney-in-fact
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