4,025,000 Shares OCULUS INNOVATIVE SCIENCES, INC. Common Stock UNDERWRITING AGREEMENT
Exhibit 1.1
4,025,000 Shares
Common Stock
__________,
2007
▇▇▇▇ Capital Partners, LLC
As Representative of the Several Underwriters named in Schedule I hereto
▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
As Representative of the Several Underwriters named in Schedule I hereto
▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Ladies and Gentlemen:
Oculus Innovative Sciences, Inc., a Delaware corporation (“Company”), proposes to issue and
sell to the several Underwriters (as defined below) an aggregate of
4,025,000 shares of its common
stock, $0.0001 par value per share (the “Common Stock”).
It is understood that,
subject to the conditions hereinafter stated, an aggregate of
3,500,000
shares of the Common Stock (the “Firm Securities”) will be sold to the several Underwriters named
in Schedule I hereto (the “Underwriters”) in connection with the offering (the “Offering”) and sale
of such Firm Securities. ▇▇▇▇ Capital Partners, LLC shall act as the representative (the
“Representative”) of the several Underwriters. In addition, as set forth below the Company
proposes to issue and sell to the Underwriters, upon the terms and conditions set forth in Section
2(b), an aggregate of up to 525,000 additional shares of the Common Stock (“Optional Securities”).
The Firm Securities and the Optional Securities are hereinafter called the “Securities.”
This is to confirm the agreement concerning the purchase of the Securities from the Company by
the Underwriters.
1. Representations and Warranties. The Company represents and warrants to, and agrees with,
each Underwriter that:
(a) The Company has prepared and filed with the Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-1 (File No. 333-135584), which contains a form of
prospectus to be used in connection with the public offering and sale of the Securities. Such
registration statement, as amended, including the financial statements, exhibits and schedules
thereto, in the form in which it was declared effective by the Commission under the Securities Act
of 1933, as amended (the “Securities Act”), and the rules and regulations promulgated thereunder
(the “Rules and Regulations”), including any required information deemed to be a part thereof at
the time of effectiveness pursuant to Rule 430A under the Securities Act, is called the
“Registration Statement.” Any registration statement filed by the Company pursuant to Rule 462(b)
under the Securities Act is called the “Rule 462(b) Registration Statement”, and from and after the
date and time of filing of the Rule 462(b) Registration Statement the term “Registration
Statement” shall include the Rule 462(b) Registration Statement. Any preliminary prospectus
included in the Registration Statement is hereinafter called a “preliminary prospectus.” The term
“Prospectus” shall mean the final prospectus relating to the Securities that is first filed
pursuant to Rule 424(b) after the date and time that this Agreement is executed and delivered by
the parties hereto (the “Execution Time”) or, if no filing pursuant to Rule 424(b) is required,
shall mean the form of final prospectus relating to the Securities included in the Registration
Statement at the time it became effective. All references in this Agreement to the Registration
Statement, the Rule 462(b) Registration Statement, a preliminary prospectus, the Prospectus, or any
amendments or supplements to any of the foregoing, shall include any copy thereof filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System (“▇▇▇▇▇”).
(b) The Registration Statement and any Rule 462(b) Registration Statement have been declared
effective by the Commission under the Securities Act. No stop order suspending the effectiveness
of the Registration Statement or any Rule 462(b) Registration Statement is in effect and no
proceedings for such purpose have been instituted or are pending or, to the best knowledge of the
Company, are contemplated or threatened by the Commission.
The preliminary prospectus included in the Disclosure Package (as defined below) and the
Prospectus when filed complied in all material respects with the Securities Act and the Rules and
Regulations and, if filed by electronic transmission pursuant to ▇▇▇▇▇ (except as may be permitted
by Regulation S-T under the Securities Act), was identical to the copy thereof delivered to the
Underwriters for use in connection with the offer and sale of the Securities. Each of the
Registration Statement, any Rule 462(b) Registration Statement and any post-effective amendment
thereto, at the time it became effective and at the date hereof, the First Closing Date and any
Option Closing Date, complied and will comply in all material respects with 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 a material fact required to be stated therein or necessary to make the statements
therein not misleading. The Prospectus (including any Prospectus wrapper), as amended or
supplemented, as of its date and at the date hereof, the First Closing Date and any Option Closing
Date, did not and will not contain any untrue statement of a material fact or 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. The representations and warranties set forth in the
two immediately preceding sentences do not apply to statements in or omissions from the
Registration Statement, any Rule 462(b) Registration Statement, or any post-effective amendment
thereto, or the Prospectus, or any amendments or supplements thereto, made in reliance upon and in
conformity with information relating to any Underwriter furnished to the Company in writing by the
Representative expressly for use therein, it being understood and agreed that the only such
information furnished by the Representative consists of the information described as such in
Section 11 hereof. There are no contracts or other documents required to be described in the
Prospectus or to be filed as exhibits to the Registration Statement which have not been described
or filed as required.
(c) The term “Disclosure Package” shall mean, collectively, (i) the preliminary prospectus
that is included in the Registration Statement immediately prior to the Initial Sale Time (as
defined below), if any, as amended or supplemented, (ii) the issuer free writing prospectuses as
defined in Rule 433 of the Securities Act (each, an “Issuer Free Writing Prospectus”) identified in
Schedule II hereto, and (iii) any other free writing prospectus that the parties hereto shall
hereafter expressly agree in writing to treat as part of the Disclosure Package. As of
___(Eastern time) on the date of this Agreement (the “Initial Sale Time”), the Disclosure
Package did not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make
2
the statements therein, in the light of the circumstances under which they were made, not
misleading. The preceding sentence does not apply to statements in or omissions from the
Disclosure Package based upon and in conformity with written information furnished to the Company
by the Representative specifically for use therein, it being understood and agreed that the only
such information furnished by or on behalf of any Underwriter consists of the information described
as such in Section 11 hereof.
(d) Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times
through the completion of the Offering or until any earlier date that the Company notified or
notifies the Representative as described in the next sentence, did not, does not and will not
include any information that conflicted, conflicts or will conflict with the information contained
in the Registration Statement. The foregoing sentence does not apply to statements in or omissions
from any Issuer Free Writing Prospectus based upon and in conformity with written information
furnished to the Company by the Representative specifically for use therein, it being understood
and agreed that the only such information furnished by any Underwriter consists of the information
described as such in Section 11 hereof.
(e) The Company has delivered to the Representative one complete manually signed copy of the
Registration Statement, and conformed copies of the Registration Statement (without exhibits) and
preliminary prospectuses and the Prospectus, as amended or supplemented, in such quantities and at
such places as the Representative has reasonably requested for each of the Underwriters.
(f) The Company has not distributed and will not distribute, prior to the later of the Option
Closing Date (as defined in Section 3 below) and the completion of the Underwriters’ distribution
of the Securities, any offering material in connection with the offering and sale of the Securities
other than any preliminary prospectus, the Prospectus, any Issuer Free Writing Prospectus reviewed
and consented to by the Representative or included in Schedule II hereto or the Registration
Statement.
(g) ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP, whose report appears in the Registration Statement, and is included
in the Disclosure Package and the Prospectus, are independent certified public accountants as
required by the Securities Act and the Rules and Regulations. The financial statements and
schedules (including the related notes) included in the Registration Statement, and included in the
Disclosure Package and the Prospectus, present fairly the financial condition, the results of the
operations and changes in financial condition of the entities purported to be shown thereby at the
dates or for the periods indicated and have been prepared in accordance with generally accepted
accounting principles in the United States applied on a consistent basis throughout the periods
indicated. All adjustments necessary for a fair presentation of results for such periods have been
made. The selected financial, operating and statistical data set forth in any preliminary
prospectus included in the Disclosure Package and the Prospectus, including such data under the
captions “Prospectus Summary,” “Selected Consolidated Financial Data” and “Management’s Discussion
and Analysis of Financial Condition and Results of Operations,” fairly present, when read in
conjunction with the Company’s financial statements and the related notes and schedules and on the
basis stated in the Registration Statement, the information set forth therein.
(h) Each of the Company and its Subsidiaries (as defined in Section 13 hereof) has been duly
organized and is validly existing as a corporation in good standing under the laws of the
jurisdiction of its organization, with full power and authority (corporate and other) to own or
3
lease its properties and conduct its business as described in the Disclosure Package and
Prospectus, and is duly qualified to do business and is in good standing as a foreign corporation
in each jurisdiction in which the character of the business conducted by it or the location of the
properties owned or leased by it makes such qualification necessary; each of the Company and its
Subsidiaries is in possession of and operating in compliance with all franchises, grants,
authorizations, licenses, permits, easements, consents, certificates and orders required for the
conduct of its business, all of which are valid and in full force and effect (except where any
failure to do so would not result in a material adverse change in the condition (financial or
otherwise), business, prospects, properties or results of operations of the Company and its
Subsidiaries considered as a whole) (“Material Adverse Effect”); and neither the Company nor any of
its Subsidiaries has received any notice of proceedings relating to the revocation or modification
of any such franchise, grant, authorization, license, permit, easement, consent, certificate or
order which, individually or in the aggregate, if the subject of an unfavorable decision, would
result, individually or in the aggregate, in having a Material Adverse Effect.
(i) The capitalization of the Company is as set forth under the caption “Capitalization” in
the Disclosure Package and Prospectus, and the Common Stock conforms to the description thereof
contained under the caption “Description of Common Stock” in the Disclosure Package and Prospectus;
the outstanding shares of capital stock have been duly authorized, validly issued, fully paid and
nonassessable. Except to the extent that any non-compliance would not have a Material Adverse
Effect, individually or in the aggregate (whether because of the magnitude of the violation,
because any claims thereof would be barred by the statute of limitations, or otherwise), all the
outstanding securities of the Company have been issued in compliance with federal and state
securities laws. There are no preemptive rights or other rights to subscribe for or to purchase,
or any restriction upon the voting or transfer of, any shares of capital stock pursuant to the
Company’s certificate of incorporation, by-laws or other governing documents or any agreement or
other instrument to which the Company or any of its Subsidiaries is a party or by which any of them
may be bound. None of the outstanding shares of capital stock were issued in violation of any
preemptive rights, rights of first refusal or other similar rights to subscript for or purchase
securities of the Company. There are 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 other than
those accurately described in the Disclosure Package and the Prospectus. The description of the
Company’s stock option, stock bonus and other stock plans or arrangements, and the options or other
rights granted thereunder, set forth in the Disclosure Package and the Prospectus accurately and
fairly presents the information required to be shown with respect to such plans, arrangements,
options and rights. Neither the filing of the Registration Statement nor the offering or sale of
the Securities and the issuance of the Underwriters Warrants as contemplated by this Agreement
gives rise to any rights, other than those which have been waived or satisfied, for or relating to
the registration of any shares of capital stock of the Company. All of 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 are owned directly or indirectly by the Company, free and clear of
any claim, lien, encumbrance or security interest. There are 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 any
Subsidiary.
(j) Subsequent to the respective dates as of which information is given in the Disclosure
Package and the Prospectus, and except as described or contemplated in the Disclosure Package and
Prospectus: neither the Company nor any of its Subsidiaries has incurred any liabilities
4
or obligations, direct or contingent, nor entered into any transactions not in the ordinary
course of business, which in either case are material to the Company or such Subsidiary, as the
case may be; there has not been any Material Adverse Effect; and there has been no dividend or
distribution of any kind declared, paid or made by the Company on any class of its capital stock.
(k) Neither the Company nor any of its Subsidiaries is, or with the giving of notice or lapse
of time or both would be, in violation of or in default under, nor will the execution or delivery
hereof or consummation of the transactions contemplated hereby result in a violation of, or
constitute a default under, the certificate of incorporation, bylaws or other governing documents
of the Company or any of its Subsidiaries, or any agreement, contract, mortgage, deed of trust,
loan agreement, note, lease, indenture or other instrument, to which the Company or any of its
Subsidiaries is a party or by which any of them is bound, or to which any of their properties is
subject, nor will the performance by the Company of its obligations hereunder violate any law,
rule, administrative regulation or decree of any court, or any governmental agency or body having
jurisdiction over the Company, its Subsidiaries or any of their properties, or result in the
creation or imposition of any lien, charge, claim or encumbrance upon any property or asset of the
Company or any of its Subsidiaries. There are no contracts or documents which are required to be
described in the Registration Statement, the Disclosure Package and the Prospectus or to be filed
as exhibits thereto which have not been so described and filed as required. Except for permits and
similar authorizations required under the Securities Act and the securities or “Blue Sky” laws of
certain jurisdictions and for such permits and authorizations which have been obtained, no consent,
approval, authorization or order of any court, governmental agency or body or financial institution
is required in connection with the consummation of the transactions contemplated by this Agreement,
including, without limitation, the issuance and sale of the Securities and the issuance of the
Underwriter Warrants (as hereinafter defined).
(l) This Agreement has been duly authorized, executed and delivered by the Company and
constitutes a legal, valid and binding obligation of the Company and is enforceable against the
Company in accordance with its terms.
(m) The Securities to be purchased by the Underwriters from the Company have been duly
authorized for issuance and sale pursuant to this Agreement and, when issued and delivered by the
Company pursuant to this Agreement, will be validly issued, fully paid and nonassessable. The
issuance of the Securities pursuant to this Agreement will not be subject to any preemptive rights,
rights of first refusal or other similar rights to subscript for or purchase securities of the
Company. There are no restrictions upon the voting or transfer of the Securities under the
Company’s certificate of incorporation or by laws or any agreement or other instrument to which the
Company is a party or by which it is bound or otherwise filed as an exhibit to the Registration
Statement.
(n) The warrants to purchase Common Stock to be issued to the Underwriters (the “Underwriter
Warrants”) pursuant to Section 4(n) have been duly authorized for issuance. The Company has
reserved 281,750 shares of its Common Stock for issuance upon exercise of the Underwriter Warrants
and when issued and paid for in accordance with the terms of the Underwriter Warrants, such Common
Stock will be validly issued, fully paid and nonassessable. The issuance of the Common Stock
pursuant to the Underwriter Warrants will not be subject to any preemptive rights, rights of first
refusal or other similar rights to subscribe for or purchase securities of the Company. Except as
set forth in the Underwriter Warrants, there will be no restrictions upon the voting or transfer of
the Common Stock issuable pursuant to the Underwriter Warrants under the
5
Company’s certificate of incorporation or bylaws or any agreement or other instrument to which
the Company is a party or by which it is bound or otherwise filed as an exhibit to the Registration
Statement.
(o) The Company and its Subsidiaries have good and marketable title in fee simple to all items
of real property and good and marketable title to all personal property owned by them, in each case
clear of all liens, encumbrances and defects except such as are described or referred to in the
Disclosure Package and Prospectus or such as do not materially affect the value of such property
and do not interfere with the use made or proposed to be made of such property by the Company or
such Subsidiaries; and any real property and buildings held under lease by the Company and its
Subsidiaries are held by them under valid, existing and enforceable leases with such exceptions as
are not material and do not interfere with the use made or proposed to be made of such property and
buildings by the Company or such Subsidiaries.
(p) Except as described in the Disclosure Package and Prospectus, there is no litigation or
governmental proceeding to which the Company or any of its Subsidiaries is a party or to which any
property of the Company or any of its Subsidiaries is subject or which is pending or, to the
knowledge of the Company, threatened against the Company or any of its Subsidiaries which
individually or in the aggregate might result in any Material Adverse Effect, which would
materially and adversely affect the consummation of this Agreement or the transactions contemplated
hereby or which is required to be disclosed in the Disclosure Package and Prospectus.
(q) Neither the Company nor any Subsidiary is in violation of any law, ordinance, governmental
rule or regulation or court decree to which it may be subject which violation might have a Material
Adverse Effect.
(r) The Company has not taken and may not take, directly or indirectly, any action designed to
cause or result in, or which has constituted or which might reasonably be expected to constitute,
the stabilization or manipulation of the price of the shares of Common Stock to facilitate the sale
or resale of the Securities.
(s) The Company and its Subsidiaries have filed all necessary federal, state and foreign
income and franchise tax returns, and all such tax returns are complete and correct in all material
respects, and the Company and its Subsidiaries have not failed to pay any taxes which were payable
pursuant to said returns or any assessments with respect thereto. The Company has no knowledge of
any tax deficiency which has been or is likely to be threatened or asserted against the Company or
its Subsidiaries.
(t) The Company maintains a system of internal accounting controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with management’s general or
specific authorization; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles in the United
States 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.
(u) The Company and its Subsidiaries maintain insurance of the types and in the amounts
generally deemed adequate for its business, including, but not limited to, directors’ and
6
officers’ insurance, insurance covering real and personal property owned or leased by the
Company and its Subsidiaries against theft, damage, destruction, acts of vandalism and all other
risks customarily insured against, all of which insurance is in full force and effect. The Company
has not been refused any insurance coverage sought or applied for, and the Company has no reason to
believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not have a Material Adverse Effect.
(v) Neither the Company nor any of its Subsidiaries nor, to the best of the Company’s
knowledge, any of its employees or agents has at any time during the last five years (i) made any
unlawful contribution to any candidate for foreign office, or failed to disclose fully any
contribution in violation of law, or (ii) made any payment to any foreign, federal or state
governmental officer or official or other person charged with similar public or quasi-public
duties, other than payments required or permitted by the laws of the United States or any
jurisdiction thereof.
(w) The Company is not and, after giving effect to the offering and sale of the Securities and
the application of the proceeds thereof as described under the caption “Use of Proceeds” in the
Disclosure Package or the Prospectus, will not be an “investment company” as defined in the
Investment Company Act of 1940, as amended.
(x) Except as disclosed in the Disclosure Package and the Prospectus, there are no contracts,
agreements or understandings between the Company and any person that would give rise to a valid
claim against the Company or any Underwriter for a brokerage commission, finder’s fee or other like
payment in connection with the Offering.
(y) Except as disclosed in the Disclosure Package and the Prospectus, there are no contracts,
agreements or understandings between the Company and any person granting such person the right to
require the Company to file a registration statement under the Securities Act with respect to any
securities of the Company owned or to be owned by such person or to require the Company to include
such securities in the securities registered pursuant to the Registration Statement or in any
securities being registered pursuant to any other registration statement filed by the Company under
the Securities Act.
(z) The Securities have been approved for listing on The Nasdaq Global Market subject only to
official notice of issuance and payment of customary fees. The Common Stock of the Company has
been registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”).
(aa) The Company is in material compliance with all applicable provisions of the
▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of 2002 that are currently effective and the rules and regulations promulgated
in connection therewith.
(bb) No consent, approval, authorization, or order of, or filing with, any governmental agency
or body or any court is required for the consummation of the transactions contemplated by this
Agreement in connection with the issuance and sale of the Securities and the issuance of the
Underwriter Warrants by the Company, except such as have been obtained and made under the
Securities Act and such as may be required by the National Association of Securities Dealers, Inc.
(the “NASD”) or under state securities laws or the laws of any foreign jurisdiction.
7
(cc) The execution, delivery and performance of this Agreement, and the issuance and sale of
the Securities will not result in a breach or violation of any of the terms and provisions of, or
constitute a default under, (i) any statute, any rule, regulation or order of any governmental
agency or body or any court, domestic or foreign, having jurisdiction over the Company, (ii) any
agreement or instrument to which the Company is a party or by which the Company is bound or (iii)
the by-laws of the Company.
(dd) The Company is not presently doing business with the government of Cuba or with any
person or affiliate located in Cuba.
(ee) No labor dispute with the employees of the Company or any subsidiary exists or, to the
knowledge of the Company, is imminent that might have a Material Adverse Effect.
(ff) The Company and its Subsidiaries own or possess the right to use sufficient trademarks,
trade names, patent rights, copyrights, domain names, licenses, approvals, trade secrets,
inventions, technology, know-how and other similar rights (collectively, “Intellectual Property
Rights”) as are (i) necessary or material to conduct its business as now conducted and as described
in the Disclosure Package and the Prospectus and as are (ii) necessary or material for the
commercialization of the products described in the Disclosure Package and the Prospectus as being
under development or for sale. Except as set forth in the Disclosure Package and the Prospectus,
(a) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding, or
claim by others challenging the rights of the Company or any of its Subsidiaries in or to any such
Intellectual Property Rights that, if decided adversely to the Company would, individually or in
the aggregate, have a Material Adverse Effect, and the Company is unaware of any facts which would
form a reasonable basis for any such claim; (b) there is no pending, or to the Company’s knowledge,
threatened action, suit, proceeding, or claim by others that the Company or any of its Subsidiaries
infringes, misappropriates, or otherwise violates any Intellectual Property Rights, of others that,
if decided adversely to the Company would, individually or in the aggregate, have a Material
Adverse Effect, and the Company is unaware of any facts which would form a reasonable basis for any
such claim; (c) there is no pending or, to the Company’s knowledge, threatened action, suit,
proceeding, or claim by others challenging the validity, scope, or enforceability of any such
Intellectual Property Rights owned or licensed by the Company or its Subsidiaries, and the Company
is unaware of any facts which would form a reasonable basis for any such claim; (d) to the
Company’s knowledge, the operation of the business of the Company and its Subsidiaries as now
conducted, and as described in the Disclosure Package and the Prospectus, and in connection with
the development and commercialization of the products described in the Disclosure Package and the
Prospectus does not infringe any claim of any patent or published patent application or other
Intellectual Property Rights of others; (e) there is no prior art of which the Company is aware
that may render any patent owned or licensed by the Company or its Subsidiaries invalid or any
patent application owned or licensed by the Company unpatentable which has not been disclosed to
the applicable government patent office; and (f) the Company’s granted or issued patents,
registered trademarks, and registered copyrights have been duly maintained and are in full force
and in effect, and none of the patents, trademarks and copyrights have been adjudged invalid or
unenforceable in whole or in part. Neither the Company nor any of its Subsidiaries is a party to
or bound by any options, licenses or agreements with respect to the Intellectual Property Rights of
any other person or entity that are required to be set forth in the Disclosure Package and the
Prospectus and are not described therein in all material respects. None of the technology or
intellectual property used by the Company and its Subsidiaries in its business has been obtained or
is being used by the Company or its Subsidiaries in violation of any contractual obligation binding
on the Company or its Subsidiaries, or, to the Company’s knowledge, any of its
8
officers, directors, or employees or otherwise in violation of the rights of any persons. No
third party has been granted by the Company or its Subsidiaries rights to the Intellectual Property
Rights of the Company or its Subsidiaries that, if exercised, could enable such party to develop
products competitive to those products of the Company being developed for sale or commercialized as
described in the Disclosure Package and the Prospectus.
(gg) The Company has duly and properly filed or caused to be filed with the U.S. Patent and
Trademark Office (the “PTO”) and applicable foreign and international patent authorities all patent
applications owned by the Company and its Subsidiaries (the “Company Patent Applications”). To the
knowledge of the Company, the Company has complied with the PTO’s (and any other applicable
governmental patent office’s) duty of candor and disclosure for the Company Patent Applications and
has made no material misrepresentation or omission in the Company Patent Applications. To the
Company’s knowledge, the Company Patent Applications disclose patentable subject matters. Except
as disclosed in the Disclosure Package and the Prospectus, the Company has not been notified of any
inventorship challenges nor has the Company been notified that any interference has been declared
or provoked that would preclude the issuance of patents with respect to the Company Patent
Applications or would render such patents, if issued, invalid or unenforceable.
(hh) Neither the Company nor any of its Subsidiaries has breached and is currently in breach
of any provision of any license, contract or other agreement governing the use by the Company or
its Subsidiaries of Intellectual Property Rights owned or held by third parties (collectively, the
“Licenses”) and, except as described in the Disclosure Package and the Prospectus, no third party
has alleged any such breach and the Company is unaware of any facts that would form a reasonable
basis for such a claim. To the Company’s knowledge, no other party to the Licenses has breached or
is currently in breach of any provision of the Licenses. Each of the Licenses is in full force and
effect and constitutes a valid and binding agreement between the parties thereto, enforceable in
accordance with its terms, and there has not occurred any breach or default under any such Licenses
or any event that with the giving of notice or lapse of time would constitute a breach or default
thereunder. Except as disclosed in the Disclosure Package and the Prospectus, neither the Company
nor any of its Subsidiaries has been and is currently involved in any disputes regarding the
Licenses. To the Company’s knowledge, all patents licensed to the Company pursuant to the Licenses
are valid, enforceable and being duly maintained. To the Company’s knowledge, all patent
applications licensed to the Company pursuant to the Licenses are being duly prosecuted.
(ii) The studies that are referred to in the Disclosure Package and the Prospectus and their
protocols were, to the Company’s knowledge, independently analyzed and reported by the persons or
entities conducting the clinical studies. The clinical studies and trials that are referred to in
the Disclosure Package and the Prospectus were, to the Company’s knowledge, conducted in all
material respects in accordance with experimental protocols, procedures and controls consistent
with the standards applied in other studies in the industry. The descriptions of such clinical
studies and trials contained in the Disclosure Package and the Prospectus are accurate in all
material respects. The Company has not received any notices or correspondence from the U.S. Food
and Drug Administration (the “FDA”) or any foreign, state or local governmental or self-regulatory
body exercising comparable authority requiring the termination, suspension or material modification
of any such clinical studies, except as disclosed in the Disclosure Package and the Prospectus.
(jj) The Company and its Subsidiaries are in compliance in all material respects with all
applicable rules and regulations of the FDA, or any foreign, state or local governmental or
self-regulatory body exercising comparable authority, and all related applicable laws, statutes,
9
ordinances, rules or regulations (including, without limitation, the Federal Food, Drug and
Cosmetic Act, as amended, the Good Manufacturing Practice regulations and similar foreign laws and
regulations), the enforcement of which, individually or in the aggregate, would be expected to
result in a Material Adverse Effect.
(kk) To the Company’s knowledge, there are no rulemaking or similar proceedings before the
FDA, PTO, or any foreign, state or local governmental or self-regulatory body exercising comparable
authority, which affect or involve the Company, its Subsidiaries, or any of the products that the
Company has developed, is developing or proposes to develop or uses or proposes to use which, if
the subject of an action unfavorable to the Company, would result in a Material Adverse Effect.
(ll) The Company and each Subsidiary possess such valid and current certificates,
authorizations, approvals or permits issued by the appropriate state, federal, foreign regulatory
agencies or bodies necessary to conduct their respective businesses, including the marketing and
sale of the Company’s products as described in the Disclosure Package and the Prospectus and ,
other than as disclosed in the Disclosure Package and the Prospectus, neither the Company nor any
Subsidiary has received any notice of proceedings relating to the revocation or modification of, or
non-compliance with, any such certificate, authorization or permit.
(mm) There are no business relationships or related-party transactions involving the Company
or any Subsidiary or any other person required to be described in the Disclosure Package and the
Prospectus that have not been described as required.
(nn) Except as would not, individually or in the aggregate, result in a Material Adverse
Effect (i) neither the Company nor any of its Subsidiaries is in violation of any federal, state,
local or foreign law or regulation relating to pollution or protection of human health or the
environment (including, without limitation, ambient air, surface water, groundwater, land surface
or subsurface strata) or wildlife, including without limitation, laws and regulations relating to
emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants,
wastes, toxic substances, hazardous substances, petroleum and petroleum products (collectively,
“Materials of Environmental Concern”), or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Materials of
Environmental Concern (collectively, “Environmental Laws”), which violation includes, but is not
limited to, noncompliance with any permits or other governmental authorizations required for the
operation of the business of the Company under applicable Environmental Laws, or noncompliance with
the terms and conditions thereof, or has received any written communication, whether from a
governmental authority, citizens group, employee or otherwise, that alleges that the Company or any
of its Subsidiaries is in violation of any Environmental Law; (ii) there is no claim, action or
cause of action filed with a court or governmental authority, no investigation with respect to
which the Company or any of its Subsidiaries has received written notice, and no written notice by
any person or entity alleging potential liability for investigatory costs, cleanup costs,
governmental responses costs, natural resources damages, property damages, personal injuries,
attorneys’ fees or penalties arising out of, based on or resulting from the presence, or release
into the environment, of any Material of Environmental Concern at any location owned, leased or
operated by the Company or any of its Subsidiaries, now or in the past (collectively,
“Environmental Claims”), pending or, to the Company’s knowledge, threatened against the Company,
any of its Subsidiaries, or any person or entity whose liability for any Environmental Claim the
Company or any of its Subsidiaries has retained or assumed either contractually or by operation of
law; and (iii) to the Company’s
10
knowledge, there are no past or present actions, activities, circumstances, conditions, events
or incidents, including, without limitation, the release, emission, discharge, presence or disposal
of any Material of Environmental Concern, that reasonably could result in a violation of any
Environmental Law or form the basis of a potential Environmental Claim against the Company, any of
its Subsidiaries, or against any person or entity whose liability for any Environmental Claim the
Company or any of its Subsidiaries has retained or assumed either contractually or by operation of
law.
(oo) The Company and any “employee benefit plan” (as defined under the Employee Retirement
Income Security Act of 1974, as amended, and the regulations and published interpretations
thereunder (collectively, “ERISA”)) established or maintained by the Company, or its “ERISA
Affiliates” (as defined below) are in compliance in all material respects with ERISA. “ERISA
Affiliates” means, with respect to the Company, any member of any group of organizations described
in Sections 414(b),(c),(m) or (o) of the Internal Revenue Code of 1986, as amended, and the
regulations and published interpretations thereunder (the “Code”) of which the Company is a member.
No “reportable event” (as defined under ERISA) has occurred or is reasonably expected to occur
with respect to any “employee benefit plan” established or maintained by the Company, or any of its
ERISA Affiliates. No “employee benefit plan” established or maintained by the Company or any of
its ERISA Affiliates, if such “employee benefit plan” were terminated, would have any “amount of
unfunded benefit liabilities” (as defined under ERISA). Neither the Company, nor any of its ERISA
Affiliates has incurred or reasonably expects to incur any liability under (i) Title IV of ERISA
with respect to termination of, or withdrawal from, any “employee benefit plan” or (ii) Sections
412, 4971, 4975 or 4980B of the Code. Each “employee benefit plan” established or maintained by
the Company or any of its ERISA Affiliates that is intended to be qualified under Section 401(a) of
the Code is so qualified and nothing has occurred, whether by action or failure to act, which would
cause the loss of such qualification.
(pp) There are no outstanding loans, advances (except normal advances for business expenses in
the ordinary course of business) or guarantees or indebtedness by the Company to or for the benefit
of any of the officers or directors of the Company or any of the members of any of them, except as
disclosed in the Disclosure Package and the Prospectus.
(qq) The market data and industry forecasts included in the Registration Statement and the
Disclosure Package and the Prospectus were obtained or derived from industry publications that are
and were not at any time under the Company’s control which the Company reasonably and in good faith
believes are reliable and accurate, and such data agree with the sources from which they are
derived.
(rr) Except as disclosed in the Disclosure Package or the Prospectus, since the date of the
latest audited financial statements included in the Disclosure Package or the Prospectus there has
been no Material Adverse Effect, nor any development or event involving a prospective Material
Adverse Effect, in the condition (financial or other), business, properties or results of
operations of the Company and its Subsidiaries taken as a whole.
(ss) The Company acknowledges and agrees that (i) the purchase and sale of the Securities
pursuant to this Agreement, including the determination of the public offering price of the
Securities and any related discounts and commissions, is an arm’s-length commercial transaction
between the Company, on the one hand, and the Underwriters, on the other hand, (ii) in connection
with the offering contemplated hereby and the process leading to such transaction each Underwriter
11
is and has been acting solely as a principal and is not the agent or fiduciary of the Company
or its stockholders, creditors, employees or any other party, (iii) no Underwriter has assumed or
will assume an advisory or fiduciary responsibility in favor of the Company with respect to the
offering contemplated hereby or the process leading thereto (irrespective of whether such
Underwriter has advised or is currently advising the Company on other matters) and no Underwriter
has any obligation to the Company with respect to the offering contemplated hereby except the
obligations expressly set forth in this Agreement, (iv) the Underwriters and their respective
affiliates may be engaged in a broad range of transactions that involve interests that differ from
those of the Company and (v) the Underwriters have not provided any legal, accounting, regulatory
or tax advice with respect to the offering contemplated hereby and the Company has consulted its
own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate.
Any certificate signed by an officer of the Company and delivered to the Representative or to
counsel for the Underwriters shall be deemed to be a representation and warranty by the Company to
each Underwriter as to the matters set forth therein.
The Company acknowledges that the Underwriters and, for purposes of the opinions to be
delivered pursuant to Section 5 hereof, counsels to the Company and counsel to the Underwriters,
will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents
to such reliance.
2. Purchase of the Securities by the Underwriters.
(a) Subject to the terms and conditions and upon the basis of the representations, warranties
and agreements herein set forth, the Company agrees to issue and sell to the Underwriters, and each
of the Underwriters agrees, severally and not jointly, to purchase at a price of $ per
share, the number of Firm Securities set forth opposite such Underwriter’s name in Schedule I
hereto, subject to adjustment in accordance with Section 7 hereof. The Underwriters agree to offer
the Firm Securities to the public as set forth in the Prospectus.
(b) The Company hereby grants to the Underwriters an option to purchase from the Company,
solely for the purpose of covering over-allotments in connection with the distribution and sale of
the Firm Securities, all or any portion of the Optional Securities for a period of thirty (30) days
from the date hereof at the purchase price per share set forth above. Optional Securities shall be
purchased from the Company, severally and not jointly, for the accounts of the several Underwriters
in proportion to the number of Firm Securities set forth opposite such Underwriter’s name in
Schedule I hereto, except that the respective purchase obligations of each Underwriter shall be
adjusted by the Representative so that no Underwriter shall be obligated to purchase fractional
Optional Securities. No Optional Securities shall be sold and delivered unless the Firm Securities
previously have been, or simultaneously are, sold and delivered.
3. Delivery of and Payment for Securities. Delivery of certificates for the Firm Securities
to be purchased by the Underwriters from the Company and payments therefor shall be made at the
offices of ▇▇▇▇ Capital Partners, LLC (or such other place as mutually may be agreed upon), on the
third full Business Day following the date hereof or, if the pricing of the Firm Securities occurs
after 4:30 p.m., New York City time, on the fourth full Business Day thereafter, or at such other
date as shall be determined by the Representative and the Company (the “First Closing Date”).
12
The option to purchase Optional Securities granted in Section 2 hereof may be exercised during
the term thereof by written notice to the Company from the Representative. Such notice shall set
forth the aggregate number of Optional Securities as to which the option is being exercised and the
time and date, not earlier than either the First Closing Date or the second Business Day after the
date on which the option shall have been exercised nor later than the fifth Business Day after the
date of such exercise, as determined by the Representative, when the Optional Securities are to be
delivered (the “Option Closing Date”). Delivery and payment for such Optional Securities is to be
at the offices set forth above for delivery and payment of the Firm Securities. (The First Closing
Date and the Option Closing Date are herein individually referred to as the “Closing Date” and
collectively referred to as the “Closing Dates”.)
Delivery of certificates for the Securities shall be made by or on behalf of the Company to
the Representative, for the respective accounts of the Underwriters, against payment by the
Representative, for the several accounts of the Underwriters, of the purchase price therefor by (i)
Federal funds wire transfer or (ii) certified or official bank check payable in next day funds to
the order of the Company. The certificates for the Securities shall be registered in such names
and denominations as the Representative shall have requested at least two full Business Days prior
to the applicable Closing Date, and shall be made available for checking and packaging at a
location in New York, New York as may be designated by the Representative at least one full
Business Day prior to such Closing Date. Time shall be of the essence and delivery at the time and
place specified in this Agreement is a further condition to the obligations of each Underwriter.
4. Covenants. The Company covenants and agrees with each Underwriter that:
(a) During such period beginning on the Initial Sale Time and ending on the later of the
Closing Date or such date, as in the opinion of counsel for the Underwriters, the Prospectus is no
longer required by law to be delivered in connection with sales as contemplated by this Agreement
by an Underwriter or dealer, including in circumstances where such requirement may be satisfied
pursuant to Rule 172 (the “Prospectus Delivery Period”), prior to amending or supplementing the
Registration Statement (including any registration statement filed under Rule 462(b) under the
Securities Act), the Disclosure Package or the Prospectus, the Company shall furnish to the
Representative for review a copy of each such proposed amendment or supplement, and the Company
shall not file any such proposed amendment or supplement to which the Representative reasonably
objects.
(b) After the date of this Agreement, the Company shall promptly advise the Representative in
writing (i) when the Registration Statement, if not effective at the Execution Time, shall have
become effective, (ii) of the receipt of any comments of, or requests for additional or
supplemental information from, the Commission, (iii) of the time and date of any filing of any
post-effective amendment to the Registration Statement or any amendment or supplement to any
preliminary prospectus or the Prospectus, (iv) of the time and date that any post-effective
amendment to the Registration Statement becomes effective and (v) of the issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement or any post-effective
amendment thereto or of any order or notice preventing or suspending the use of the Registration
Statement, any preliminary prospectus or the Prospectus, or of any proceedings to remove, suspend
or terminate from listing or quotation the Common Stock from any securities exchange upon which it
is listed for trading or included or designated for quotation, or of the threatening or initiation
of any proceedings for any of such purposes. The Company shall use its best efforts to prevent the
issuance of any such stop order or prevention or suspension of such use. If the Commission shall
enter any
13
such stop order or order or notice of prevention or suspension at any time, the Company will
use its best efforts to obtain the lifting of such order at the earliest possible time, or will
file a new registration statement and use its best efforts to have such new registration statement
declared effective as soon as practicable. Additionally, the Company agrees that it shall comply
with the provisions of Rules 424(b) and 434, as applicable, under the Securities Act, including
with respect to the timely filing of documents thereunder, and will use its reasonable efforts to
confirm that any filings made by the Company under such Rule 424(b) were made in a timely manner.
(c) (i) If the preliminary prospectus included in the Disclosure Package is being used to
solicit offers to buy the Securities and any event or development shall occur or condition exist as
a result of which it is necessary to amend or supplement the Disclosure Package in order to make
the statements therein, in the light of the circumstances under which they were made or then
prevailing, as the case may be, not misleading (in which case the Company agrees to notify the
Representative of any such event or condition), or if in the reasonable opinion of the
Representative it is otherwise necessary to amend or supplement the Disclosure Package to comply
with law, the Company agrees to promptly prepare, file with the Commission and furnish to the
Underwriters and to dealers, at its own expense, amendments or supplements to the Disclosure
Package so that the statements in the Disclosure Package as so amended or supplemented will not be,
in the light of the circumstances under which they were made or then prevailing, as the case may
be, misleading or so that the Disclosure Package, as amended or supplemented, will comply with law;
(ii) if, during the Prospectus Delivery Period, any event or development shall occur or condition
exist as a result of which it is necessary to amend or supplement the Registration Statement or the
Prospectus in order to make the statements therein, in the light of the circumstances under which
they were made or then prevailing, as the case may be, not misleading (in which case the Company
agrees to notify the Representative of any such event or condition), or if in the reasonable
opinion of the Representative it is otherwise necessary to amend or supplement the Registration
Statement or the Prospectus to comply with law, including in connection with the delivery of the
Prospectus, the Company agrees to promptly prepare, file with the Commission (and use its best
efforts to have any amendment to the Registration Statement or any new registration statement to be
declared effective) and furnish to the Underwriters and to dealers, amendments or supplements to
the Registration Statement or the Prospectus, or any new registration statement so that the
statements in the Registration Statement or the Prospectus as so amended or supplemented will not
be, in the light of the circumstances under which they were made or then prevailing, as the case
may be, misleading or so that the Registration Statement or the Prospectus, as amended or
supplemented, will comply with law.
(d) The Company agrees that, unless it obtains the prior written consent of the
Representative, it will not make any offer relating to the Common Stock that would constitute an
Issuer Free Writing Prospectus or that would otherwise constitute a “free writing prospectus” (as
defined in Rule 405 of the Securities Act) required to be filed by the Company with the Commission
or retained by the Company under Rule 433 of the Securities Act; provided that the prior written
consent of the Representative hereto shall be deemed to have been given in respect of the Free
Writing Prospectuses included in Schedule III hereto. Any such free writing prospectus consented
to by the Representative is hereinafter referred to as a “Permitted Free Writing Prospectus”. The
Company agrees that (i) it has treated and will treat, as the case may be, each Permitted Free
Writing Prospectus as an Issuer Free Writing Prospectus, and (ii) has complied and will comply, as
the case may be, with the requirements of Rules 164 and 433 of the Securities Act applicable to any
Permitted Free Writing Prospectus, including in respect of timely filing with the Commission,
legending and record keeping.
14
(e) The Company shall furnish to the Underwriters, from time to time and without charge,
copies of the Registration Statement of which are signed and shall include exhibits and all
amendments and supplements to any of such Registration Statement, in each case as soon as available
and in such quantities as the Representative may from time to time reasonably request.
(f) The Company shall take or cause to be taken all necessary action and furnish to whomever
the Representative may direct such information as may be required in qualifying the Securities for
sale under the laws of such jurisdictions which the Representative shall designate and to continue
such qualifications in effect for as long as may be necessary for the distribution of the
Securities; except that in no event shall the Company be obligated in connection therewith to
qualify as a foreign corporation, or to execute a general consent for service of process.
(g) The Company shall make generally available to its securityholders, in the manner
contemplated by Rule 158(b) under the Securities Act, as soon as practicable but in any event not
later than 60 days after the end of its fiscal quarter in which the first anniversary date of the
effective date of the Registration Statement occurs, an earning statement which will comply with
Section 11(a) of the Securities Act covering a period of at least 12 consecutive months beginning
after the effective date of the Registration Statement.
(h) The Company will not, without the prior written consent of the Representative (which
consent may be withheld in the Representative’s sole discretion), directly or indirectly, issue,
sell, offer, agree to sell, contract or grant any option to sell (including, without limitation,
pursuant to any short sale), pledge, make any short sale of, maintain any short position with
respect to, transfer, establish or maintain an open “put equivalent position” within the meaning of
Rule 16a-1(h) under the Exchange Act, enter into any swap, derivative transaction or other
arrangement (whether such transaction is to be settled by delivery of common stock, other
securities, cash or other consideration) that transfers to another, in whole or in part, any of the
economic consequences of ownership, or otherwise dispose of any shares of Common Stock, options or
warrants to acquire shares of Common Stock, or securities exchangeable or exercisable for or
convertible into shares of Common Stock, or publicly announce an intention to do any of the
foregoing, for a period commencing on the date hereof and continuing through the close of trading
on the date 180 days after the date of the Prospectus (the “Lock-Up Period”).
Notwithstanding the foregoing, for the purpose of allowing the Underwriters to comply with
NASD Rule 2711(f)(4), if (1) during the last 17 days of the initial Lock-Up Period, the Company
releases earnings results or material news or a material event relating to us occurs or (2) prior
to the expiration of the initial Lock-Up Period, the Company announces that it will release
earnings results during the 16-day period beginning on the last day of the initial 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 material news, as applicable, unless
the Representative waives, in writing, such extension.
The foregoing paragraphs shall not apply to (i) the Securities, the Underwriter Warrants or
the Common Stock to be issued thereunder, (ii) any shares of Common Stock issued by the Company
upon exercise of an option or warrant or convertible security outstanding as of the date hereof and
referred to in the Disclosure Package and the Prospectus, and (iii) any shares of Common Stock
issued or options to purchase Common Stock granted pursuant to existing employee benefit plans of
the Company as of the date hereof and described in the Disclosure Package and Prospectus.
15
(i) The Company shall cause each officer and director of the Company and each holder of shares
of Common Stock or any securities convertible into, or exercisable or exchangeable for, shares of
Common Stock, of which such officers, directors and shareholders shall constitute holders of at
least 90% of the outstanding Common Stock on an aggregate and fully diluted basis, to agree, on or
prior to the date of this Agreement and in form and substance satisfactory to counsel for the
Underwriters, not to offer for sale, contract to sell, sell, distribute, grant any option, right or
warrant to purchase, pledge, hypothecate or otherwise dispose of, directly or indirectly, any
shares of Common Stock or any securities convertible into, or exercisable or exchangeable for,
shares of Common Stock during the 180 days (subject to an additional extension to accommodate for
earnings or material news releases) after the date of the Prospectus, except with the
Representative’s prior written consent.
(j) The Company shall engage and maintain, at its expense, a registrar and transfer agent for
the Common Stock.
(k) The Company shall apply the net proceeds of the sale of the Securities in the manner
specified in the Prospectus under the heading “Use of Proceeds” and shall file such reports with
the Commission with respect to the sale of the Securities and the application of the proceeds
therefrom as may be required in accordance with Rule 463 under the Securities Act.
(l) The Company will furnish to its securityholders annual reports containing financial
statements audited by independent public accountants and quarterly reports containing financial
statements and financial information which may be unaudited. During the period of five years from
the date hereof, the Company will deliver to the Representative and, upon request, to each of the
other Underwriters, copies of each annual report of the Company and each other report furnished by
the Company to its securityholders and will deliver to the Representative, as soon as they are
available, copies of any other reports (financial or otherwise) which the Company shall publish or
otherwise make available to any of its securityholders as such, and as soon as they are available,
copies of any reports and financial statements furnished to or filed with the Commission or the
Nasdaq Global Market.
(m) The Company will use its best efforts to have the Common Stock reserved for issuance under
the Underwriter Warrants listed on the Nasdaq Global Market. The Company will use its reasonable
best efforts to maintain the listing on the Nasdaq Global Market of the Securities and, once
listed, the Common Stock reserved for issuance under the Underwriter Warrants.
(n) On the First Closing Date, the Company shall issue to the Underwriters the Underwriter
Warrants to purchase that number of shares of Common Stock equal to seven percent of the Firm
Securities (adjusted downward to the nearest whole share). On the Option Closing Date, the Company
shall issue to the Underwriters additional Underwriter Warrants to purchase that number of shares
of Common Stock equal to seven percent of the Optional Securities (adjusted downward to the nearest
whole share) elected to be purchased by the Underwriters pursuant to Section 2(b). The Underwriter
Warrants shall be in the form of Exhibit A attached hereto. The Underwriter Warrants shall have an
exercise price per share equal to 165% of the initial public offering price per share of the Common
Stock in the Offering and shall expire upon the fifth anniversary of the respective Underwriter
Warrants date of issuance. The Underwriter Warrants shall be issued by the Company, severally and
not jointly, for the accounts of the several Underwriters in proportion to the number of Firm
Securities set forth opposite such Underwriter’s name in Schedule I hereto, or in proportion to the
number of Optional Securities elected to be purchased by such Underwriter, as applicable, except
16
that the respective Underwriter Warrants of each Underwriter shall be adjusted by the
Representative so that no Underwriter Warrants to be issued to an Underwriter shall represent the
right to purchase a fractional share of Common Stock.
(o) Whether or not this Agreement becomes effective or is terminated or the sale of the
Securities to the Underwriters is consummated, the Company shall pay or cause to be paid (A) all
expenses (including stock transfer taxes) incurred in connection with the delivery to the several
Underwriters of the Securities, (B) all fees and expenses (including, without limitation, fees and
expenses of the Company’s accountants and counsel, but excluding fees and expenses of counsel for
the Underwriters) in connection with the preparation, printing, filing, delivery and shipping of
the Registration Statement (including the financial statements therein and all amendments and
exhibits thereto), each preliminary prospectus, the Disclosure Package and the Prospectus as
amended or supplemented and the printing, delivery and shipping of this Agreement and other
underwriting documents, including Underwriters’ Questionnaires, Underwriters’ Powers of Attorney,
Blue Sky Memoranda, the Agreement Among Underwriters and Selected Dealer Agreements, (C) all filing
fees incurred in connection with the qualification of the Securities for sale under state and
foreign securities laws as provided in Section 4(f) hereof (including preparation of any applicable
survey thereof), (D) the filing fee of the NASD, (E) any applicable listing fees, (F) the cost of
printing certificates representing the Securities, and the issuance and delivery thereof, including
any stock or other transfer taxes and any stamp or other duties payable upon sale issuance or
delivery of the Securities to the Underwriters, (G) the cost and charges of any transfer agent or
registrar and (H) all other costs and expenses incident to the performance of its
obligations hereunder which are not otherwise provided for in this
Section. In the event that this Agreement becomes effective and the
sale of the Securities to the Underwriters is consummated, the
Company shall pay or cause to be paid, in addition to the payments
set forth in the foregoing sentence, a non-accountable expense
allowance equal to one percent (1%) of the gross proceeds received by
the Company from the sale of the Securities of which such
non-accountable expense allowance shall be allocated 67% and 33% to
▇▇▇▇ Capital Partners, LLC and Brookstreet Securities Corporation,
respectively. It is understood,
however, that, except as provided in this Section, Section 6 and Section 8 hereof, the Underwriters
shall pay all of their own costs and expenses, including the fees of their counsel, stock transfer
taxes on resale of any of the Securities by them and any advertising expenses connected with any
offers they may make. If the sale of the Securities provided for herein is not consummated by
reason of any failure, refusal or inability on the part of the Company to perform any agreement on
its part to be performed or because any other condition of the Underwriters’ obligations hereunder
is not fulfilled, unless the failure to perform the agreement or fulfill the condition is due to
the default or omission of any Underwriter, the Company shall reimburse the several Underwriters
for all reasonable out-of-pocket disbursements (including fees and disbursements of counsel)
incurred by the Underwriters in connection with their investigation, preparing to market and
marketing the Securities or in contemplation of performing their obligations hereunder. The
Company shall not in any event be liable to any of the Underwriters for loss of anticipated profits
from the transactions covered by this Agreement.
(p) Unless otherwise consented to in writing by the Representative, the Company agrees that,
pursuant to Section 9 of that certain Amended and Restated Investors Rights Agreement dated
September 14, 2006 among the Company and the investors named therein, it will enforce the lock-up
provisions of such Section for and on behalf of the Representative (and will not amend such
Section) for a period of 180 days after the time of effectiveness of the Registration Statement
including, without limitation, instructing its transfer agent to place stop transfer notations in
its records with respect to the subject securities.
17
(q) On the First Closing Date, the Company shall file with the Secretary of State of the State
of Delaware the Restated Certificate of Incorporation in the form of Exhibit 3.5 to Amendment No. 1
of the Registration Statement filed with the Commission on September 18, 2006.
5. Conditions of Underwriters’ Obligations. The respective obligations of the several
Underwriters hereunder are subject to the accuracy, at and as of the date hereof and the First
Closing Date (as if made at the First Closing Date) and, with respect to the Optional Securities,
the Option Closing Date (as if made at the Option Closing Date), of the representations and
warranties of the Company contained herein or in certificates of any officer of the Company
delivered pursuant to the provisions hereof, to the performance by the Company of its covenants and
other obligations hereunder and to the following additional conditions:
(a) The Registration Statement shall have become effective not later than ___p.m., Eastern
time, on the date of this Agreement, or such later time and date as the Representative shall
approve and all filings required by Rules 424, 430A, 430B, 430C and 433 under the Securities Act
shall have been timely made; no stop order suspending the effectiveness of the Registration
Statement or any amendment thereof shall have been issued; no proceedings for the issuance of such
an order shall have been initiated or threatened; and any request of the Commission for additional
information (to be included in the Registration Statement, the Disclosure Package, the Prospectus,
any Issuer Free Writing Prospectus or otherwise) shall have been complied with to the
Representative’s satisfaction.
(b) No Underwriter shall have advised the Company that the Registration Statement, the
Disclosure Package or the Prospectus, or any amendment thereof or supplement thereto, contains an
untrue statement of fact which, in the Representative’s opinion, is material, or omits to state a
fact which, in the Representative’s opinion, is material and is required to be stated therein or is
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading.
(c) On each Closing Date, the Representative shall have received the opinion of Pillsbury
▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ LLP, counsel for the Company, dated as of such Closing Date, in form and
substance satisfactory to the Representative.
(d) On each Closing Date, the Representative shall have received the opinion of Leydig, ▇▇▇▇ &
▇▇▇▇▇, Ltd, special intellectual property counsel for the Company, dated as of such Closing Date,
in form and substance satisfactory to the Representative.
(e) On each Closing Date the Representative shall have received the opinion of King &
Spalding, special regulatory counsel for the Company, dated as of such Closing Date, in form and
substance satisfactory to the Representative.
(f) On each Closing Date the Representative shall have received the favorable opinion of
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇, a Professional Corporation, counsel for the Underwriters, dated as
of such Closing Date, in form and substance satisfactory to the Representative.
(g) There shall have been furnished to the Representative a certificate of the Company, dated
as of each Closing Date and addressed to the Representative, signed by the Chief Executive Officer
and by the Chief Financial Officer of the Company to the effect that:
18
(i) The representations and warranties of the Company in this Agreement are true and correct,
as if made at and as of such Closing Date, and the Company has complied with all the agreements and
satisfied all the conditions on its part to be performed or satisfied at or prior to such Closing
Date;
(ii) No stop order suspending the effectiveness of the Registration Statement or any notice
that would prevent its use has been issued, and no proceedings for that purpose have been initiated
or are pending or, to their knowledge, contemplated;
(iii) Any and all filings required by Rules 424, 430A, 430B and 430C under the Securities Act
have been timely made;
(iv) The signers of said certificate have carefully examined the Registration Statement and
the Disclosure Package and the Prospectus, and any amendments or supplements thereto, and such
documents contain all statements and information required to be included therein; the Registration
Statement or any amendment thereto does not include 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 Disclosure Package and the Prospectus or any supplements thereto do
not include 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, in the light of the circumstances
under which they were made, not misleading;
(v) Since the effective date of the Registration Statement, there has occurred no event
required to be set forth in an amendment or supplement to the Registration Statement or the
Disclosure Package and the Prospectus which has not been so set forth; and
(vi) Since the effective date of the Registration Statement, neither the Company nor any of
its Subsidiaries shall have sustained any loss by strike, fire, flood, accident or other calamity
(whether or not insured), or shall have become a party to or the subject of any litigation, which
is material to the Company or its Subsidiaries taken as a whole, nor shall there have been a
material adverse change in the general affairs, business, key personnel, capitalization, financial
position, earnings or net worth of the Company and its Subsidiaries, whether or not arising in the
ordinary course of business, which loss, litigation or change, in the Representative’s judgment,
shall render it inadvisable to proceed with the delivery of the Securities.
(h) On the date hereof, and on each Closing Date, the Representative shall have received from
▇▇▇▇▇▇ & Kliegman, LLP, independent public or certified public accountants for the Company, a
letter dated the date hereof addressed to the Representative, on behalf of the several
Underwriters, in form and substance satisfactory to the Representative, containing statements and
information of the type ordinarily included in accountant’s “comfort letters” to underwriters,
delivered according to Statement of Auditing Standards No. 72 (or any successor bulletin), with
respect to the audited and unaudited financial statements and certain financial information
contained in the Registration Statement and the Prospectus (and the Representative shall have
received additional conformed copies of such accountants’ letter for each of the several
Underwriters).
(i) The Securities and the Common Stock reserved for issuance under the Underwriter Warrants
shall have been duly authorized for listing on the Nasdaq Global Market.
19
(j) The stockholders, officers and directors of the Company (of which such officers, directors
and stockholders shall constitute holders of at least 90% of the outstanding Common Stock on an
aggregate and fully diluted basis) shall have agreed to the lock-up described in Section 4(i)
hereof and such lock-ups shall be in full force and effect on each Closing Date.
(k) The NASD shall have confirmed that it will not raise any objection with respect to the
fairness and reasonableness of the underwriting terms and arrangements.
(l) On or before each Closing Date, the Representative and counsel for the Underwriters shall
have received such information, certificates, agreements, opinions and other documents as they may
reasonably require.
All such opinions, certificates, letters and documents shall be in compliance with the
provisions hereof only if they are satisfactory in form and substance to the Representative and to
counsel for the Underwriters. The Company shall furnish the Representative with such conformed
copies of such opinions, certificates, letters and other documents as the Representative shall
reasonably request. If any of the conditions specified in this Section 5 shall not have been
fulfilled when and as required by this Agreement, this Agreement and all obligations of the
Underwriters hereunder may be canceled at, or at any time prior to, the First Closing Date or, with
respect to the Optional Securities, the Option Closing Date, as the case may be, by the
Representative. Any such cancellation shall be without liability of the Underwriters to the
Company. Notice of such cancellation shall be given to the Company in writing, or by telegraph or
telephone and confirmed in writing.
6. Indemnification and Contribution.
(a) The Company shall indemnify and hold harmless each Underwriter, its directors, officers,
employees and agents and each person, if any, who controls any Underwriter within the meaning of
the Securities Act and the Exchange Act against any loss, claim, damage or liability, joint or
several, as incurred, to which such Underwriter or such other person may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage or liability (or action in respect
thereof) arises out of or is based (i) 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, Rule 430B or Rule 430C 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; (ii) upon any untrue
statement or alleged untrue statement of a material fact contained in any Issuer Free Writing
Prospectus, any preliminary prospectus, the Prospectus (or any amendment or supplement thereto) or
any “issuer information” filed or required to be filed pursuant to Rule 433 under the Securities
Act 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;
or (iii) upon any untrue statement or alleged untrue statement of a material fact included in any
materials or information provided to investors by or with the approval of the Company in connection
with the Offering and sale of the Securities, including any road show or investor presentations
made to investors by the Company (whether in person or electronically), or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading; and shall reimburse each
Underwriter, its officers, directors, employees, agents and each such controlling person for any
and all expenses (including the fees and disbursements of one counsel chosen by the Representative)
as
20
such expenses are reasonably incurred by such Underwriter, its officers, directors, employees
and agents or such controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, arising out of 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 the Representative expressly for use in the
Registration Statement, any Issuer Free Writing Prospectus, any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto); and provided further, however, that the
foregoing indemnity agreement shall not inure to the benefit of any Underwriter from whom the
person asserting any loss, claim, damage or liability purchased Securities, or any person
controlling such Underwriter, if copies of the Disclosure Package were timely delivered to the
Underwriter pursuant to Section 4 and a copy of the Disclosure Package (as then amended or
supplemented if the Company shall have furnished any amendments or supplements thereto) was not
sent or given by or on behalf of such
Underwriter to such person, if required by law so to have
been delivered, at or prior to the written confirmation of the sale of the Securities to such
person, and if the Disclosure Package (as so amended or supplemented) would have cured the defect
giving rise to such loss, claim, damage, liability or expense.
(b) Each Underwriter severally,
but not jointly, shall indemnify and hold harmless the Company, its directors, officers, employees and each person, if any who controls the Company within
the meaning of the Securities Act or the Exchange Act against any loss, claim, damage or liability,
joint or several, as incurred, to which the Company may become subject, under the Securities Act or
otherwise, insofar as such loss, claim, damage or liability (or action in respect thereof) arises
out of or is based upon (i) any untrue 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, Rule 430B or Rule 430C 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; or (ii) upon any untrue statement or alleged untrue
statement of a material fact contained in any Issuer Free Writing Prospectus, any preliminary
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 light
of the circumstances under which they were made, not misleading; in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Registration Statement (or any amendment thereto), any Issuer Free Writing
Prospectus, any preliminary prospectus or the Prospectus (or any amendment or supplement thereto),
in reliance upon and in conformity with written information furnished to the Company by the
Representative expressly for use therein; and to reimburse the Company, or any such director,
officer, employee or controlling person for any legal and other expense reasonably incurred by the
Company, or any such director, officer, employee or controlling person in connection with
investigating, defending, settling, compromising or paying any such loss, claim, damage, liability,
expense or action.
(c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice
of any claim or the commencement of any action, the indemnified party shall, if a claim in respect
thereof is to be made against the indemnifying party under such subsection, notify the indemnifying
party in writing of the claim or the commencement of that action; the failure to notify the
indemnifying party shall not relieve it from any liability which it may have to an indemnified
party otherwise than under such subsection. If any such claim or action shall be brought against
an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying
21
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 thereof with counsel
reasonably satisfactory to the indemnified party. After notice from the indemnifying party to the
indemnified party of its election to assume the defense of such claim or action, the indemnifying
party shall not be liable to the indemnified party under such subsection for any legal or other
expenses subsequently incurred by the indemnified party in connection with the defense thereof
other than reasonable costs of investigation; except that the Representative shall have the right
to employ counsel to represent it and those other Underwriters who may be subject to liability
arising out of any claim in respect of which indemnity may be sought by the Underwriters against
the Company under such subsection if, in the Representative’s reasonable judgment, based upon the
advice of counsel, it is advisable for the Representative and those Underwriters to be represented
by separate counsel, and in that event the fees and expenses of such separate counsel shall be paid
by the Company. No indemnifying party shall, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or contribution could be
sought under this Section 6 hereof (whether or not the indemnified parties are actual or potential
parties thereto), unless such settlement, compromise or consent (i) includes an unconditional
release of each indemnified party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.
(d) If the indemnification provided for in this Section 6 is unavailable or insufficient to
hold harmless an indemnified party under subsection (a) or (b) above, then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsection (a) or (b) above (i) in such proportion as
is appropriate to reflect the relative benefits received by the Company on the one hand and the
Underwriters on the other from the offering of the Securities 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 Underwriters on the other in connection with the statements
or omissions that resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative benefits received by the Company on the one hand
and the Underwriters on the other shall be deemed to be in the same proportion as the total net
proceeds from the offering of the Securities (before deducting expenses) received by the Company
bear to the total underwriting discounts and commissions received by the Underwriters, in each case
as set forth in the table on the cover page of the Prospectus. Relative fault 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 or the Underwriters and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or omission. The Company
and the Underwriters agree that it would not be just and equitable if contributions pursuant to
this subsection (d) were to be determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation which does not take
into account the equitable considerations referred to in the first sentence of this subsection (d).
The amount paid or payable by an indemnified party as a result of the losses, claims, damages or
liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending against any action or claim which is the subject of this subsection (d).
Notwithstanding the provisions of this subsection (d), no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which the
22
Securities underwritten by it and distributed to the public were offered to the public exceeds
the amount of any damages that such Underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
The Underwriters’ obligations in this subsection (d) to contribute are several in proportion to
their respective underwriting obligations and not joint. Each party entitled to contribution
agrees that upon the service of a summons or other initial legal process upon it in any action
instituted against it in respect of which contribution may be sought, it shall promptly give
written notice of such service to the party or parties from whom contribution may be sought, but
the omission so to notify such party or parties of any such service shall not relieve the party
from whom contribution may be sought from any obligation it may have hereunder or otherwise (except
as specifically provided in subsection (c) hereof).
(e) The obligations of the Company under this Section 6 shall be in addition to any liability
which the Company may otherwise have; and the obligations of the Underwriters under this Section 6
shall be in addition to any liability that the respective Underwriters may otherwise have, and
shall extend, upon the same terms and conditions, to each director of the Company (including any
person who, with his consent, is named in the Registration Statement as about to become a director
of the Company), to each officer of the Company who has signed the Registration Statement and to
each person, if any, who controls the Company within the meaning of the Securities Act, in either
case, whether or not such person is a party to any action or proceeding.
7. Substitution of Underwriters. If any Underwriter defaults in its obligation to purchase
the number of Securities which it has agreed to purchase under this Agreement, the non-defaulting
Underwriters shall be obligated to purchase (in the respective proportions which the number of
Securities set forth opposite the name of each non-defaulting Underwriter in Schedule I hereto
bears to the total number of Securities set forth opposite the names of all the non- defaulting
Underwriters in Schedule I hereto) the Securities which the defaulting Underwriter agreed but
failed to purchase; except that the non-defaulting Underwriters shall not be obligated to purchase
any of the Securities if the total number of Securities which the defaulting Underwriter or
Underwriters agreed but failed to purchase exceeds 10% of the total number of Securities to be
purchased on such date, and any non-defaulting Underwriter shall not be obligated to purchase more
than 110% of the number of Securities set forth opposite its name in Schedule I hereto purchasable
by it pursuant to the terms of Section 2. If the foregoing maximums are exceeded, the
non-defaulting Underwriters, and any other underwriters satisfactory to the Representative who so
agree, shall have the right, but shall not be obligated, to purchase (in such proportions as may be
agreed upon among them) all the Securities. If the non- defaulting Underwriters or the other
underwriters satisfactory to the Representative do not elect to purchase the Securities which the
defaulting Underwriter or Underwriters agreed but failed to purchase, this Agreement shall
terminate without liability on the part of any non-defaulting Underwriters or the Company except
for the payment of expenses to be borne by the Company and the Underwriters as provided in Section
(4)(o) and the indemnity and contribution agreements of the Company and the Underwriters contained
in Section 6 hereof and Section 9 hereof.
Nothing contained herein shall relieve a defaulting Underwriter of any liability it may have
for damages caused by its default. If the other underwriters satisfactory to the Representative
are obligated or agree to purchase the Securities of a defaulting Underwriter, either the
Representative or the Company may postpone the Closing Date for up to five full Business Days in
order to effect any
23
changes that may be necessary in the Registration Statement, the Disclosure Package or the
Prospectus or in any other document or agreement, and to file promptly any amendments or any
supplements to the Registration Statement or the Disclosure Package or the Prospectus which in the
Representative’s opinion may thereby be made necessary.
8. Termination.
(a) Until the First Closing Date, this Agreement may be terminated by the Representative by
giving notice as hereinafter provided to the Company, if (i) the Company shall have failed, refused
or been unable, at or prior to the First Closing Date, to perform any agreement on its part to be
performed hereunder unless the failure to perform any agreement is due to the default or omission
by any Underwriter, (ii) any other condition of the obligations of the Underwriters hereunder is
not fulfilled; (iii) trading in securities generally on the New York Stock Exchange or the Nasdaq
Global Market shall have been suspended or minimum or maximum prices shall have been established on
either of such exchanges or such market by the Commission or by such exchange or other regulatory
body or governmental authority having jurisdiction; (iv) trading or quotation in any of the
Company’s securities shall have been suspended or limited by the Commission or by the Nasdaq Global
Market or other regulatory body of governmental authority having jurisdiction; (v) a general
banking moratorium shall have been declared by Federal or state authorities; (vi) a material
disruption in securities settlement, payment or clearance services in the United States shall have
occurred; (vii) there shall have been any material adverse change in general economic, political or
financial conditions or if the effect of international conditions on the financial markets in the
United States shall be such as, in the Representative’s judgment, makes it inadvisable to proceed
with the delivery of the Securities; or (viii) any attack on, outbreak or escalation of
hostilities, declaration of war or act of terrorism involving the United States or any other
national or international calamity or emergency if, in the Representative’s judgment, the effect of
any such attack, outbreak, escalation, declaration, act, calamity or emergency makes it impractical
or inadvisable to proceed with the completion of the public offering or the delivery of the
Securities. Any termination of this Agreement pursuant to this Section 8 shall be without
liability on the part of the Company or any Underwriter, except as otherwise provided in Sections
1, 4(o) 6 and 9 hereof.
Any notice referred to above may be given at the address specified in Section 10 hereof in
writing or by telegraph or telephone, and if by telegraph or telephone, shall be immediately
confirmed in writing.
(b) This Agreement may also be terminated as provided in Section 7 hereof.
9. Survival of Indemnities, Contribution, Warranties and Representations. All
representations, warranties, and agreements of the Company herein or in certificates delivered
pursuant hereto, and the agreements of the several Underwriters and the Company contained in
Section 6 hereof, shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any Underwriter or any officers, directors, agent or
controlling person thereof, or the Company or any of its officers, directors, or controlling
persons, and shall survive delivery of, and payment for, the Securities to and by the Underwriters
hereunder.
10. Notices. All communications hereunder shall be in writing and shall be mailed, hand
delivered or telecopied and confirmed to the parties hereto as follows:
24
If to the Representative:
|
▇▇▇▇ Capital Partners, LLC | |
| ▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ | ||
| ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ | ||
| Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇ | ||
| Attention: ▇▇▇▇▇▇▇ ▇▇▇, MD FRCP | ||
with a copy to:
|
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇ | |
| ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇ | ||
| ▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ | ||
| Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇ | ||
| Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq. | ||
If to the Company:
|
Oculus Innovative Sciences, Inc. | |
| ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ | ||
| ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ | ||
| Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇ | ||
| Attention: ▇▇▇▇▇▇ ▇▇▇▇▇ | ||
with a copy to:
|
Pillsbury ▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ LLP | |
| ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ | ||
| ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ | ||
| Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇ | ||
| Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Esq. |
11. Information Furnished by Underwriters. The statements set forth under the caption
“Underwriting” in the table in the first paragraph concerning the number of shares each Underwriter
has agreed to purchase, and in the paragraphs concerning sales by Underwriters to the public at the
offering price and to dealers at such price less a concession and sales by Underwriters to
discretionary accounts, in any preliminary prospectus and the Prospectus, constitute the only
written information furnished by or on behalf of any Underwriter referred to in paragraphs (b) and
(c) of Section 1 hereof and in paragraphs (a) and (b) of Section 6 hereof.
12. Parties. This Agreement is made solely for the benefit of the several Underwriters, the
Company, any officer, director, employee, agent or controlling person referred to in Section 6
hereof, and their respective successors and assigns, and no other person shall acquire or have any
right by virtue of this Agreement. The term “successors and assigns,” as used in this Agreement,
shall not include any purchaser of any of the Securities from any of the Underwriters merely by
reason of such purchase.
13. Definition of “Business Day” and “Subsidiary”. 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” has the meaning set forth in Rule 405 under the Securities Act.
14. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of California, without giving effect to the choice of law or conflict of laws
principles thereof.
15. Partial Unenforceability. The invalidity or unenforceability of any Section, paragraph or
provision of this Agreement shall not affect the validity or enforceability of any other
25
Section, paragraph or provision hereof. If any Section, paragraph or provision of this
Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be
made such minor changes (and only such minor changes) as are necessary to make it valid and
enforceable.
16. General Provisions. 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. This Agreement may be
executed in two or more counterparts, each one of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. This Agreement may not be
amended or modified unless in writing by all of the parties hereto, and no condition herein
(express or implied) may be waived unless waived in writing by each party whom the condition is
meant to benefit. The Section headings herein are for the convenience of the parties only and
shall not affect the construction or interpretation of this Agreement.
26
Please confirm, by signing and returning to us two (2) counterparts of this Agreement, that
the Representative is acting on behalf of itself and the several Underwriters and that the
foregoing correctly sets forth the agreement among the Company and the several Underwriters.
| Very truly yours, Oculus Innovative Sciences, Inc. |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
Confirmed and accepted as of the date first above mentioned:
▇▇▇▇ Capital Partners, LLC,
As Representative of the Several Underwriters named in Schedule I hereto
| By: | ||||
| Name: | ||||
| Title: | ||||
27
SCHEDULE I
Underwriting
Agreement dated ___, 2007
| Number of Firm Securities | ||
| Underwriter | to be Purchased | |
▇▇▇▇ Capital Partners, LLC |
||
Brookstreet Securities Corporation |
||
Maxim Group LLC |
||
Schedule I
SCHEDULE II
Issuer Free Writing Prospectus
Schedule II
EXHIBIT A
Form of Underwriter Warrant
D-1