Exhibit 1.1
2,500,000 Shares
DG FASTCHANNEL,
INC.
Common Stock
UNDERWRITING
AGREEMENT
June 2, 2009
Oppenheimer & Co.
Inc.
300 Madison Avenue
New York, NY 10017
Roth Capital Partners,
LLC
24 Corporate Plaza
Newport Beach, CA
92660
Ladies and Gentlemen:
DG FastChannel, Inc., a
Delaware corporation (the “ Company ”),
proposes, subject to the terms and conditions stated herein, to
issue and sell to Oppenheimer & Co. Inc. (“
Oppenheimer ”) and Roth Capital Partners, LLC (“
Roth ” and together with Oppenheimer, the “
Underwriters ”) an aggregate of 2,500,000 authorized
but unissued shares (the “ Underwritten Shares
”) of Common Stock, par value $0.001 per share (the “
Common Stock ”), of the Company and to grant the
Underwriters the option to purchase an aggregate of up to 375,000
additional shares (the “ Additional Shares ”) as
may be necessary to cover over-allotments made in connection with
the offering of the Underwritten Shares. Oppenheimer and
Roth, respectively, shall purchase, on a joint and several basis,
the number of Underwritten Shares and Additional Shares (to the
extent applicable) set forth opposite their names on
Schedule I . The Underwritten Shares and
Additional Shares are collectively referred to as the “
Shares .”
The Company and the Underwriters
hereby confirm their agreement as follows:
1.
Registration Statement and
Prospectus . The Company has
prepared and filed with the Securities and Exchange Commission (the
“ Commission ”) a registration statement on
Form S-3 (File No. 333-146728) under the Securities Act
of 1933, as amended (the “ Securities Act ”) and
the rules and regulations (the “ Rules and
Regulations ”) of the Commission thereunder, and such
amendments to such registration statement (including post effective
amendments) as may have been required to the date of this
Agreement. Such registration statement, as amended (including
any post effective amendments) has been declared effective by the
Commission. Such registration statement, including amendments
thereto (including post effective amendments thereto) at such time,
the exhibits and any schedules thereto at such time, the documents
incorporated by reference therein pursuant to Item 12 of
Form S-3 under the Securities Act at such time and the
documents and information otherwise deemed to be a part thereof or
included therein by Rule 430B under the Securities Act or
otherwise pursuant to the Rules and
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Regulations at
such time, is herein called the “ Registration
Statement .” If the Company has filed or files an
abbreviated registration statement pursuant to
Rule 462(b) under the Securities Act (the “
Rule 462 Registration Statement ”), then any
reference herein to the term Registration Statement shall include
such Rule 462 Registration Statement.
The Company is filing with the
Commission pursuant to Rule 424 under the Securities Act a
final prospectus supplement relating to the Shares to a form of
prospectus included in the Registration Statement in the form
heretofore delivered to the Underwriters. Such prospectus in
the form in which it appears in the Registration Statement is
hereinafter called the “ Base Prospectus ,” and
such final prospectus supplement as filed, along with the Base
Prospectus, is hereinafter called the “ Final
Prospectus .” Such Final Prospectus and any
preliminary prospectus supplement or “red herring,” in
the form in which they shall be filed with the Commission pursuant
to Rule 424(b) under the Securities Act (including the
Base Prospectus as so supplemented) is hereinafter called a “
Prospectus .” Any reference herein to the Base
Prospectus, the Final Prospectus or a Prospectus shall be deemed to
include the documents incorporated by reference therein pursuant to
Item 12 of Form S-3 under the Securities Act as of the date of
such Prospectus.
For purposes of this Agreement, all
references to the Registration Statement, the Rule 462
Registration Statement, the Base Prospectus, the Final Prospectus,
the Prospectus or any amendment or supplement to any of the
foregoing shall be deemed to include the copy filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and
Retrieval System (“ EDGAR ”). All
references in this Agreement to financial statements and schedules
and other information which is “described,”
“contained,” “included” or
“stated” in the Registration Statement, the
Rule 462 Registration Statement, the Base Prospectus, the
Final Prospectus or the Prospectus (or other references of like
import) shall be deemed to mean and include all such financial
statements, pro forma financial information and schedules and other
information which is incorporated by reference in or otherwise
deemed by the Rules and Regulations to be a part of or
included in the Registration Statement, the Rule 462
Registration Statement, the Base Prospectus or the Prospectus, as
the case may be; and all references in this Agreement to amendments
or supplements to the Registration Statement, the Rule 462
Registration Statement, the Base Prospectus, the Final Prospectus
or the Prospectus shall be deemed to mean and include the
subsequent filing of any document under the Securities Exchange Act
of 1934, as amended (the “ Exchange Act ”), that
is deemed to be incorporated therein by reference therein or
otherwise deemed by the Rules and Regulations to be a part
thereof.
2.
Representations and Warranties
Regarding the Offering.
(a)
The Company
represents and warrants to, and agrees with, the Underwriters, as
of the date hereof and as of the Closing Date (as defined in
Section 4(c) below), except as otherwise indicated, as
follows:
(i)
At each time of
effectiveness, at the date hereof and at the Closing Date, the
Registration Statement and any post-effective amendment thereto
complied or will comply in all material respects with the
requirements of the Securities Act and the Rules and
Regulations and did not and will not contain any untrue statement
of a material fact or omit to state a material fact required to be
stated therein or necessary to make the
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statements
therein not misleading. The Time of Sale Disclosure Package
(as defined in Section 2(a)(iii) below) as of the date
hereof and at the Closing Date, and the Final Prospectus, as
amended or supplemented, at the time of filing pursuant to
Rule 424(b) under the Securities Act and at the Closing
Date, 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, 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 shall not apply to
statements in or omissions from the Registration Statement or any
Prospectus in reliance upon, and in conformity with, written
information furnished to the Company by the Underwriters
specifically for use in the preparation thereof. The
Registration Statement (including each document incorporated by
reference therein) contains all exhibits and schedules required to
be filed by the Securities Act or the Rules and
Regulations. No order preventing or suspending the
effectiveness or use of the Registration Statement or any
Prospectus is in effect and no proceedings for such purpose have
been instituted or are pending, or, to the knowledge of the
Company, are contemplated or threatened by the
Commission.
(ii)
The documents
incorporated by reference in the Registration Statement, the Time
of Sale Disclosure Package and any Prospectus, when they became
effective or were filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the
Securities Act or the Exchange Act, as applicable, were filed on a
timely basis with the Commission and none of such documents, when
they were filed (or, if amendments to such documents were filed,
when such amendments were filed), contained an untrue statement of
a material fact or omitted to state a material fact necessary to
make the statements therein, in the light of the circumstances
under which they were made, not misleading. Any further
documents so filed and incorporated by reference in the
Registration Statement, the Time of Sale Disclosure Package or the
Final Prospectus, when such documents are filed with the
Commission, will conform in all material respects to the
requirements of the Exchange Act, and will not contain an untrue
statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the
circumstances under which they were made, not
misleading.
(iii)
(A) The
Company has provided a copy to the Underwriters of each Issuer Free
Writing Prospectus (as defined below) used in the sale of
Shares. The Company has filed all Issuer Free Writing
Prospectuses required to be so filed with the Commission, and no
order preventing or suspending the effectiveness or use of any
Issuer Free Writing Prospectus is in effect and no proceedings for
such purpose have been instituted or are pending, or, to the
knowledge of the Company, are contemplated or threatened by the
Commission. When taken together with the rest of the Time of
Sale Disclosure Package or the Final Prospectus, since its
first use and at all relevant times since then, no Issuer Free
Writing Prospectus has, does or will include (1) any untrue
statement of a material fact or omission to state any material
fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not
misleading, or (2) information that conflicted, conflicts
or will conflict with the information contained in the Registration
Statement or the Final Prospectus. The representations and
warranties set forth in the immediately preceding sentence shall
not
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apply to
statements in or omissions from the Time of Sale Disclosure
Package, the Final Prospectus or any Issuer Free Writing Prospectus
in reliance upon, and in conformity with, written information
furnished to the Company by the Underwriters specifically for use
in the preparation thereof. As used in this paragraph
and elsewhere in this Agreement:
(1)
“ Time of Sale Disclosure
Package ” means the Base Prospectus, the
Prospectus most recently filed with the Commission before the
time of this Agreement, including any preliminary prospectus
supplement deemed to be a part thereof, each Issuer Free Writing
Prospectus, and any description of the transaction provided by
the Underwriters included on Schedule II .
(2)
“ Issuer Free Writing
Prospectus ” means any “issuer free writing
prospectus,” as defined in Rule 433 under the Securities
Act, relating to the Shares that (A) is required to be filed
with the Commission by the Company, or (B) is exempt from
filing pursuant to Rule 433(d)(5)(i) or (d)(8) under
the Securities Act, in each case in the form filed or required to
be filed with the Commission or, if not required to be filed, in
the form retained in the Company’s records pursuant to
Rule 433(g) under the Securities Act.
(B)
At the time of filing of the
Registration Statement and at the date hereof, the Company was not
and is not an “ineligible issuer,” as defined in
Rule 405 under the Securities Act or an “excluded
issuer” as defined in Rule 164 under the Securities
Act.
(C)
Each Issuer Free Writing Prospectus
satisfied, as of its issue date and at all subsequent times through
the Prospectus Delivery Period, all other conditions as may be
applicable to its use as set forth in Rules 164 and 433 under
the Securities Act, including any legend, record-keeping or other
requirements.
(iv)
The financial
statements of the Company, together with the related notes,
included or incorporated by reference in the Registration
Statement, the Time of Sale Disclosure Package and the Final
Prospectus comply in all material respects with the applicable
requirements of the Securities Act and the Exchange Act and fairly
present the financial condition of the Company as of the dates
indicated and the results of operations and changes in cash flows
for the periods therein specified in conformity with generally
accepted accounting principles consistently applied throughout the
periods involved; and the supporting schedules included in the
Registration Statement present fairly the information required to
be stated therein. No other financial statements, pro forma
financial information or schedules are required under the
Securities Act to be included or incorporated by reference in the
Registration Statement, the Time of Sale Disclosure Package or the
Final Prospectus. To the Company’s knowledge,
Ernst & Young LLP, which has expressed its opinion with
respect to the financial statements and schedules filed as a part
of the Registration Statement and included in the Registration
Statement, the Time of Sale Disclosure Package and the Final
Prospectus is, and KPMG LLP, the Company’s previous
independent public accounting firm was, an independent
public
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accounting firm
with respect to the Company within the meaning of the Securities
Act and the Rules and Regulations.
(v)
The Company had a
reasonable basis for, and made in good faith, each
“forward-looking statement” (within the meaning of
Section 27A of the Act or Section 21E of the Exchange
Act) contained or incorporated by reference in the Registration
Statement, the Time of Sale Disclosure Package or the Final
Prospectus.
(vi)
All statistical
or market-related data included or incorporated by reference in the
Registration Statement, the Time of Sale Disclosure Package or the
Final Prospectus are based on or derived from sources that the
Company reasonably believes to be reliable and accurate in all
material respects, and the Company has obtained the written consent
to the use of such data from such sources, to the extent
required.
(vii)
The Common Stock
is registered pursuant to Section 12(b) of the Exchange
Act and is included or approved for inclusion on the Nasdaq Global
Market. There is no action pending by the Company or, to the
Company’s knowledge, the Nasdaq Global Market to delist the
Common Shares from the Nasdaq Global Market on which the Common
Stock is listed, nor has the Company received any notification that
the Nasdaq Global Market is contemplating terminating such
listing. When issued, the Shares will be listed on the Nasdaq
Global Market.
(viii)
The Company has
not taken, directly or indirectly, any action that is designed to
or that has constituted or that would reasonably be expected to
cause or result in the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of
the Shares.
(ix)
The Company is
not and during the past three years neither the Company nor any
predecessor was: (A) a blank check company as defined in
Rule 419(a)(2) of the Securities Act, (B) a shell
company, other than a business combination shell company, each as
defined in Rule 405 of the Securities Act, or (C) an
issuer for an offering of penny stock as defined in
Rule 3a51-1 of the Exchange Act.
(x)
The Company is
not and, after giving effect to the offering and sale of the
Shares, will not be an “investment company,” as such
term is defined in the Investment Company Act of 1940, as
amended.
(xi)
The Company was
at the time of filing the Registration Statement, and at the date
hereof, remains eligible to use Form S-3 under the
Securities Act. In addition, at the time of filing of the
Registration Statement and at the date hereof, the Company had or
has (A) a non-affiliate public float of (1) $150 million,
or (2) $100 million and an annual trading volume of at least 3
million shares, (B) filed all the material required to be
filed by the Company pursuant to the Exchange Act for a period of
at least 36 calendar months, and (C) filed in a timely manner
all reports required to be filed during the past 12 calendar
months, and, in the case of (B) and (C), any portion of a
month immediately preceding such dates. For purposes of this
subsection (xi), “non-affiliate public float” shall
mean the number of shares held by non-affiliates of the
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Company multiplied by
the price at which the Common Stock was last sold before the filing
of the Registration Statement or the Closing Date, as applicable,
and “annual trading volume” shall mean the volume of
Company stock traded in any continuous 12 month period ended within
60 days prior to the filing of the Registration Statement or the
Closing Date, as applicable.
(b)
Any certificate
signed by any officer of the Company and delivered to the
Underwriters or to the Underwriters’ respective counsel shall
be deemed a representation and warranty by the Company to the
Underwriters as to the matters covered thereby.
3.
Representations and Warranties
Regarding the Company.
(a)
The Company
represents and warrants to and agrees with, the Underwriters,
except as set forth in the Registration Statement, the Time of Sale
Disclosure Package and the Prospectus, as follows:
(i)
Each of the
Company and its subsidiaries has been duly organized and is validly
existing as a corporation in good standing under the laws of its
jurisdiction of incorporation. Each of the Company and its
subsidiaries has the corporate power and authority to own its
properties and conduct its business as currently being carried on
and as described in the Registration Statement, the Time of Sale
Disclosure Package and the Prospectus, and is duly qualified to do
business as a foreign corporation in good standing in each
jurisdiction in which it owns or leases real property or in which
the conduct of its business makes such qualification necessary and
in which the failure to so qualify would have or is reasonably
likely to result in a material adverse effect upon the business,
prospects, properties, operations, condition (financial or
otherwise) or results of operations of the Company and its
subsidiaries, taken as a whole, or in its ability to perform its
obligations under this Agreement (“ Material Adverse
Effect ”).
(ii)
The Company has
the power and authority to enter into this Agreement and to
authorize, issue and sell the Shares as contemplated by this
Agreement. This Agreement has been duly authorized, executed
and delivered by the Company, and constitutes a valid, legal and
binding obligation of the Company, enforceable in accordance with
its terms, except as rights to indemnity hereunder may be limited
by federal or state securities laws and except as such
enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting the rights of creditors
generally and subject to general principles of equity.
(iii)
The execution,
delivery and performance of this Agreement and the consummation of
the transactions herein contemplated will not (A) result in a
breach or violation of any of the terms and provisions of, or
constitute a default under, any law, rule or regulation to
which the Company or any subsidiary is subject, or by which any
property or asset of the Company or any subsidiary is bound or
affected, (B) conflict with, result in any violation or breach
of, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, or give to others
any right of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement,
lease, credit facility, debt, note, bond, mortgage,
6
indenture or
other instrument (the “ Contracts ”) or
obligation or other understanding to which the Company or any
subsidiary is a party of by which any property or asset of the
Company or any subsidiary is bound or affected, except to the
extent that such conflict, default, termination, amendment,
acceleration or cancellation right is not reasonably likely to
result in a Material Adverse Effect, or (C) result in a breach
or violation of any of the terms and provisions of, or constitute a
default under, the Company’s charter or by-laws.
(iv)
Neither the
Company nor any of its subsidiaries is in violation, breach or
default under its certificate of incorporation, by-laws or other
equivalent organizational or governing documents, except where the
violation, breach or default in the case of a subsidiary of the
Company is not reasonably likely to result in a Material Adverse
Effect.
(v)
All consents,
approvals, orders, authorizations and filings required on the part
of the Company and its subsidiaries in connection with the
execution, delivery or performance of this Agreement have been
obtained or made, other than such consents, approvals, orders and
authorizations the failure of which to make or obtain is not
reasonably likely to result in a Material Adverse
Effect.
(vi)
All of the issued
and outstanding shares of capital stock of the Company are duly
authorized and validly issued, fully paid and nonassessable, and
have been issued in compliance with all applicable securities laws,
and conform in all material respects to the description thereof in
the Registration Statement, the Time of Sale Disclosure Package and
the Prospectus. Except for the issuances of options or
restricted stock in the ordinary course of business, since the
respective dates as of which information is provided in the
Registration Statement, the Time of Sale Disclosure Package or the
Prospectus, the Company has not entered into or granted any
convertible or exchangeable securities, options, warrants,
agreements, contracts or other rights in existence to purchase or
acquire from the Company any shares of the capital stock of the
Company. The Shares, when issued, will be duly authorized and
validly issued, fully paid and nonassessable, will be issued in
compliance with all applicable securities laws, and will be free of
preemptive, registration or similar rights.
(vii)
The Company and
its subsidiaries have timely filed all tax returns required to be
filed, which returns are true and correct in all material respects,
and the Company and its subsidiaries have paid all taxes (including
any assessments, fines or penalties) required to be paid by them,
except for any such taxes, assessments, fines or penalties
currently being contested in good faith and that are not reasonably
likely to result in a Material Adverse Effect.
(viii)
Since the
respective dates as of which information is given in the
Registration Statement, the Time of Sale Disclosure Package or the
Prospectus, (a) neither the Company nor any of its
subsidiaries has incurred any material liabilities or obligations,
direct or contingent, or entered into any material transactions
other than in the ordinary course of business, (b) the Company
has not declared or paid any dividends or made any distribution of
any kind with respect to its capital stock; (c) there has
not
7
been any change
in the capital stock of the Company or any of its subsidiaries
(other than a change in the number of outstanding shares of Common
Stock due to the issuance of shares upon the exercise of
outstanding options or warrants or the issuance of restricted stock
awards or restricted stock units under the Company’s existing
stock awards plan, or any new grants thereof in the ordinary course
of business), (d) there has not been any material change in
the Company’s long-term or short-term debt, and
(e) there has not been the occurrence of any Material Adverse
Effect.
(ix)
There is not
pending or, to the knowledge of the Company, threatened, any
action, suit or proceeding to which the Company or any of its
subsidiaries is a party or of which any property or assets of the
Company is the subject before or by any court or governmental
agency, authority or body, or any arbitrator or mediator, which is
reasonably likely to result in a Material Adverse
Effect.
(x)
The Company and
each of its subsidiaries holds, and is in compliance with, all
franchises, grants, authorizations, licenses, permits, easements,
consents, certificates and orders (“ Permits ”)
of any governmental or self-regulatory agency, authority or body
required for the conduct of its business, and all such Permits are
in full force and effect, in each case except where the failure to
hold, or comply with, any of them is not reasonably likely to
result in a Material Adverse Effect.
(xi)
The Company and
its subsidiaries have good and marketable title to all property
(whether real or personal) described in the Registration Statement,
the Time of Sale Disclosure Package and the Prospectus as being
owned by them that are material to the business of the Company, in
each case free and clear of all liens, claims, security interests,
other encumbrances or defects, except those that are not reasonably
likely to result in a Material Adverse Effect. The property
held under lease by the Company and its subsidiaries is held by
them under valid, subsisting and enforceable leases with only such
exceptions with respect to any particular lease as do not interfere
in any material respect with the conduct of the business of the
Company and its subsidiaries.
(xii)
The Company and
each of its subsidiaries owns or possesses or has valid right to
use all patents, patent applications, trademarks, service marks,
trade names, trademark registrations, service mark registrations,
copyrights, licenses, inventions, trade secrets and similar rights
(“ Intellectual Property ”) necessary for the
conduct of the business of the Company and its subsidiaries as
currently carried on and as described in the Registration
Statement, the Time of Sale Disclosure Package and the
Prospectus. To the knowledge of the Company, no action or use
by the Company or any of its subsidiaries will involve or give rise
to any infringement of, or license or similar fees for, any
Intellectual Property of others, except where such action, use,
license or fee is not reasonably likely to result in a Material
Adverse Effect. Neither the Company nor any of its
subsidiaries has received any notice alleging any such infringement
or fee.
(xiii)
The Company and
each of its subsidiaries has complied with, is not in violation of,
and has not received any notice of violation relating to any law,
rule or regulation relating to the conduct of its business, or
the ownership or operation of its property and assets, including,
without limitation, (A) the Currency and Foreign
8
Transactions
Reporting Act of 1970, as amended, or any money laundering laws,
rules or regulations, (B) any laws, rules or
regulations related to health, safety or the environment, including
those relating to the regulation of hazardous substances,
(C) the Sarbanes-Oxley Act and the rules and regulations
of the Commission thereunder, (D) the Foreign Corrupt
Practices Act of 1977 and the rules and regulations
thereunder, and (E) the Employment Retirement Income Security
Act of 1974 and the rules and regulations thereunder, in each
case except where the failure to be in compliance is not reasonably
likely to result in a Material Adverse Effect.
(xiv)
Neither the
Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, employee, representative, agent or
affiliate of the Company or any of its subsidiaries is currently
subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department (“ OFAC
”); and the Company will not directly or indirectly use the
proceeds of the offering of the Shares contemplated hereby, or
lend, contribute or otherwise make available such proceeds to any
person or entity, for the purpose of financing the activities of
any person currently subject to any U.S. sanctions administered by
OFAC.
(xv)
The Company
carries, or is covered by, insurance in such amounts and covering
such risks as is reasonable for the conduct of its business and the
value of its properties and as is customary for companies engaged
in similar businesses in similar industries.
(xvi)
No labor dispute
with the employees of the Company or any of its subsidiaries exists
or, to the knowledge of the Company, is imminent that is reasonably
likely to result in a Material Adverse Effect.
(xvii)
Neither the
Company nor, to its knowledge, any other party is in
violation, breach or default of any Contract that is reasonably
likely to result in a Material Adverse Effect.
(xviii)
No supplier,
customer, distributor or sales agent of the Company
has notified the Company that it intends
to discontinue or decrease the rate of business
done with the Company, except where such decrease is not
reasonably likely to result in a Material Adverse
Effect.
(xix)
Other than as
contemplated by this Agreement, the Company has not incurred any
liability for any finder’s or broker’s fee or
agent’s commission or the payment of any other fee to any
third party in connection with the execution and delivery of this
Agreement or the consummation of the transactions contemplated
hereby.
4.
Purchase, Sale and Delivery of
Shares.
(a)
On the basis of
the representations, warranties and agreements herein contained,
but subject to the terms and conditions herein set forth, the
Company agrees to issue and sell the Underwritten Shares to each of
the Underwriters, and each of the Underwriters agrees to purchase,
on a joint and several basis, the number of Underwritten Shares set
forth
9
opposite its name
on Schedule I
from the
Company. The purchase price for each Underwritten Share shall
be $18.525 per share (the “ Per Share Price
”).
(b)
The Company
hereby grants to the Underwriters the option to purchase some or
all of the Additional Shares and, upon the basis of the warranties
and representations and subject to the terms and conditions herein
set forth, each of the Underwriters shall have the right to
purchase the number or proportion of Additional Shares set forth
opposite its name on Schedule
I at the
Per Share Price as may be necessary to cover over-allotments made
in connection with the offering of the Underwritten Shares.
This option may be exercised by the Underwriters at any time (but
not more than once) on or before the thirtieth day following the
date hereof, by written notice to the Company (the “
Option Notice ”). The Option Notice shall set
forth the aggregate number of Additional Shares as to which the
option is being exercised, and the date and time when the
Additional Shares are to be delivered (such date and time being
herein referred to as the “ Option Closing Date
”); provided , however , that the Option
Closing Date shall not be earlier than the Closing Date (as defined
below) nor earlier than 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 on which the option shall have been
exercised unless the Company and the Underwriters otherwise
agree.
Payment of the purchase price for
and delivery of the Additional Shares shall be made at the Option
Closing Date in the same manner and at the same office as the
payment for the Underwritten Shares as set forth in subparagraph
(c) below. For the purpose of expediting the checking of
the certificate for the Additional Shares by you, the Company
agrees to make a form of such certificate available to you for such
purpose at least one full business day preceding the Option Closing
Date.
(c)
The Underwritten
Shares will be delivered by the Company to the Underwriters against
payment of the purchase price therefor by wire transfer of same day
funds payable to the order of the Company, as appropriate, at the
offices of Oppenheimer, 300 Madison Avenue, New York, NY
10017, or such other location as may be mutually acceptable, at
6:00 a.m. PDT, on the third (or if the Underwritten Shares are
priced, as contemplated by Rule 15c6-1(c) under the
Exchange Act, after 4:30 p.m. Eastern time, the fourth) full
business day following the date hereof, or at such other time and
date as the Underwriters and the Company determine pursuant to
Rule 15c6-1(a) under the Exchange Act, or, in the case of
the Additional Shares, at such date and time set forth in the
Option Notice. The time and date of delivery of the
Underwritten Shares or the Additional Shares, as applicable, is
referred to herein as the “ Closing Date
.” If the Underwriters so elect, delivery of the
Underwritten Shares may be made by credit through full fast
transfer to the account at The Depository Trust Company designated
by the Underwriters. Certificates representing the
Underwritten Shares, in definitive form and in such denominations
and registered in such names as the Underwriters may request upon
at least two business days’ prior notice to the Company, will
be made available for checking and packaging not later than
10:30 a.m. PDT on the business day next preceding the Closing
Date at the above addresses, or such other location as may be
mutually acceptable.
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5.
Covenants.
(a)
The Company
covenants and agrees with the Underwriters as follows:
(i)
During the period
beginning on the date hereof and ending on the later of the Closing
Date or such date as determined by the Underwriters the Prospectus
is no longer required by law to be delivered in connection with
sales by an underwriter or dealer (the “ Prospectus
Delivery Period ”), prior to amending or supplementing
the Registration Statement, including any Rule 462
Registration Statement, the Time of Sale Disclosure Package or the
Prospectus, the Company shall furnish to the Underwriters for
review and comment a copy of each such proposed amendment or
supplement, and the Company shall not file any such proposed
amendment or supplement to which the Underwriters reasonably
object.
(ii)
From the date of
this Agreement until the end of the Prospectus Delivery Period, the
Company shall promptly advise the Underwriters in writing
(A) of the receipt of any comments of, or requests for
additional or supplemental information from, the Commission,
(B) of the time and date of any filing of any post-effective
amendment to the Registration Statement or any amendment or
supplement to the Time of Sale Disclosure Package, the Prospectus
or any Issuer Free Writing Prospectus, (C) of the time and
date that any post-effective amendment to the Registration
Statement becomes effective and (D) of the issuance by the
Commission of any stop order suspending the effectiveness of the
Registration Statement or of any order preventing or suspending its
use or the use of the Time of Sale Disclosure Package, the
Prospectus or any Issuer Free Writing 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. If the Commission shall enter any such stop
order at any time during the Prospectus Delivery Period, the
Company will use its reasonable efforts to obtain the lifting of
such order at the earliest possible moment. Additionally, the
Company agrees that it shall comply with the provisions of
Rules 424(b), 430A and 430B, as applicable, under the
Securities Act and will use its reasonable efforts to
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