Exhibit 1.1
Sealy Corporation
[ ]
Shares of Common Stock
Underwriting
Agreement
[ ],
2006
Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004
J.P. Morgan Securities Inc.
277 Park Avenue
New York, New York 10172
Banc of America Securities LLC
9 West 57 th Street
New York, New York 10019
and
Lehman Brothers Inc.
745 Seventh Avenue
New York, New York 10019
As Representatives of the several
Underwriters
named in Schedule I
hereto,
Ladies and Gentlemen:
Sealy Corporation, a Delaware
corporation (the “Company”), proposes, subject to the
terms and conditions stated herein, to issue and sell to the
Underwriters named in Schedule I hereto (the
“Underwriters”) an aggregate of
[ ]
shares of common stock, par value $0.01 per share
(“Stock”) of the Company (the “Company
Shares”) and the stockholders of the Company named in
Schedule II hereto (the “Selling Stockholders”)
propose, subject to the terms and conditions stated herein, to sell
to the Underwriters an aggregate of
[ ]
shares of Stock (the “Firm Selling Stockholders
Shares”) and, at the election of the Underwriters, up to
[ ]
additional shares of Stock. The Company Shares and the Firm Selling
Stockholders Shares are herein collectively called the “Firm
Shares.” The aggregate of
[ ]
additional shares of Stock to be sold by the Selling Stockholders
upon election of the Underwriters pursuant to Section 2 hereof
are herein
1
collectively called the
“Optional Shares.” The Firm Shares and the
Optional Shares that the Underwriters may elect to purchase
pursuant to Section 2 hereof are herein collectively called
the “Shares.”
As part of the offering
contemplated by this Agreement, Citigroup Global Markets Inc. has
agreed to reserve, out of the Shares set forth opposite its name on
the Schedule I hereto, up to
[ ]
shares for sale to the Company’s employees, officers, and
directors and other parties associated with the Company
(collectively, the “Participants”), as set forth in the
Prospectus under the heading “Underwriting” (the
“Directed Share Program”). The Shares to be sold by
Citigroup Global Markets Inc. pursuant to the Directed Share
Program (the “Directed Shares”) will be sold by
Citigroup Global Markets Inc. pursuant to this Agreement at the
public offering price. Any Directed Shares not orally confirmed for
purchase by any Participants by 9:00 A.M. New York City time
on the business day following the date on which this Agreement is
executed will be offered to the public by Citigroup Global Markets
Inc. as set forth in the Prospectus.
1.
(a)
The Company represents and warrants
to, and agrees with, each of the Underwriters that:
(i)
A registration
statement on Form S-1 (File No. 333-126280) (the
“Initial Registration Statement”) in respect of the
Shares has been filed with the Securities and Exchange Commission
(the “Commission”); the Initial Registration Statement
and any amendment thereto, each in the form heretofore
delivered to you, and, excluding exhibits thereto, to you for each
of the other Underwriters, have been declared effective by the
Commission in such form; other than a registration statement, if
any, increasing the size of the offering (a
“Rule 462(b) Registration Statement”), filed
pursuant to Rule 462(b) under the Securities Act of 1933,
as amended (the “Act”), which became effective upon
filing, no other document with respect to the Initial Registration
Statement has heretofore been filed with the Commission; and no
stop order suspending the effectiveness of the Initial Registration
Statement, any post-effective amendment thereto or the
Rule 462(b) Registration Statement, if any, has been
issued and no proceeding for that purpose has been initiated or
threatened by the Commission (any preliminary prospectus included
in the Initial Registration Statement or filed with the Commission
pursuant to Rule 424(a) of the rules and regulations
of the Commission under the Act is hereinafter called a
“Preliminary Prospectus”); the various parts of
the Initial Registration Statement and the
Rule 462(b) Registration Statement, if any, including all
exhibits thereto and including the information contained in the
form of final prospectus filed with the Commission pursuant to
Rule 424(b) under the Act in accordance with
Section 5(a) hereof and deemed by virtue of
Rule 430A under the Act to be part of the Initial
Registration Statement at the time it was declared effective, each
as amended at the time such part of the Initial Registration
Statement became effective or such part of the
Rule 462(b) Registration Statement, if any, became or
hereafter becomes effective, are hereinafter collectively called
the “Registration Statement”; the Preliminary
Prospectus relating to the Shares that was included in the
Registration Statement immediately prior to the Applicable Time (as
defined in Section 1(a)(iii) hereof) is hereinafter
called the “Pricing Prospectus”; such final prospectus,
in the form first filed pursuant to
Rule 424(b) under the Act, is hereinafter called the
“Prospectus”; and any “issuer free writing
prospectus” as defined in Rule 433 under the Act
relating to the Shares is hereinafter called an “Issuer Free
Writing Prospectus”;
(ii)
No order
preventing or suspending the use of any Preliminary Prospectus or
any Issuer Free Writing Prospectus has been issued by the
Commission, and each Preliminary Prospectus, at the time of filing
thereof, conformed in all material respects to the
2
requirements of
the Act and the rules and regulations of the Commission
thereunder, and did not contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading;
provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance
upon and in conformity with information furnished in writing to the
Company by any Underwriter through the Representatives expressly
for use therein;
(iii)
For the purposes
of this Agreement, the “Applicable Time” is
:
m (New York City time) on the date of this
Agreement; the Pricing Prospectus as supplemented by the Issuer
Free Writing Prospectuses and other documents listed in
Schedule III(a) hereto, (collectively, the “Pricing
Disclosure Package”) taken together as of the Applicable
Time, did not include any untrue statement of a material fact or
omit 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; and each Issuer Free Writing
Prospectus listed on Schedule III(a) or
Schedule III(b) hereto does not conflict with the
information contained in the Registration Statement, the Pricing
Prospectus or the Prospectus and each such Issuer Free Writing
Prospectus, as supplemented by and taken together with the Pricing
Disclosure Package as of the Applicable Time, did not include any
untrue statement of a material fact or omit 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; if there occurs an event or development, as a result of
which the Pricing Disclosure Package would contain an untrue
statement of a material fact or would omit to state a material fact
necessary in order to make the statements therein not misleading,
in light of the circumstances in which they were made, the Company
will promptly notify the Representatives; provided, however
, that this representation and warranty shall not apply to
statements or omissions made in an Issuer Free Writing Prospectus
in reliance upon and in conformity with information furnished in
writing to the Company by any Underwriter through the
Representatives expressly for use therein;
(iv)
The Registration
Statement conforms and the Prospectus and any further amendments or
supplements to the Registration Statement or the Prospectus will
conform, in all material respects to the requirements of the Act
and the rules and regulations of the Commission thereunder and
do not and will not, as of the applicable effective date as to each
part of the Registration Statement and any amendment thereto
and as of the applicable filing date as to the Prospectus and any
amendment or supplement thereto, contain an untrue statement of a
material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading; provided, however, that this representation and
warranty shall not apply to any statements or omissions made in
reliance upon and in conformity with information furnished in
writing to the Company by any Underwriter through the
Representatives expressly for use therein;
(v)
Neither the
Company nor any of its subsidiaries has sustained since the date of
the latest audited financial statements included in the Pricing
Prospectus any material loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental
action, order or decree, otherwise than as set forth or
contemplated in each of the Pricing Prospectus and the Prospectus;
and, since the respective dates as of which information is given in
the Registration Statement and the Pricing Prospectus, there has
not been any change in the capital stock or long-term debt of the
Company or any of its subsidiaries or any material adverse change,
or
3
any development
involving a prospective material adverse change, in or affecting
the general affairs, management, financial position,
stockholders’ equity or results of operations of the Company
and its subsidiaries, otherwise than as set forth or contemplated
in Registration Statement and the Pricing Prospectus;
(vi)
The Company and
its subsidiaries have good and marketable title in fee simple to
all real property and good and marketable title to all personal
property owned by them, in each case free and clear of all liens,
encumbrances and defects except such as are described in each of
the Pricing Prospectus and the Prospectus or such as do not
materially affect the value of such property and do not interfere
with the use made and proposed to be made of such property by the
Company and its subsidiaries; and except as could not reasonably be
expected to have a material adverse effect upon the business,
properties, financial condition or earnings of the Company and its
subsidiaries taken as a whole (a “Material Adverse
Effect”), any real property and buildings held under lease by
the Company and its subsidiaries are held by them under valid,
subsisting and enforceable leases;
(vii)
The Company has
been duly incorporated and is validly existing as a corporation in
good standing under the laws of the State of Delaware, with power
and authority (corporate and other) to own its properties and
conduct its business as described in the Pricing Prospectus, and
has been duly qualified as a foreign corporation for the
transaction of business and is in good standing under the laws of
each other jurisdiction in which it owns or leases properties or
conducts any business so as to require such qualification, except
where the failure to so qualify or be in good standing could not
reasonably be expected to have a Material Adverse Effect; and each
subsidiary of the Company has been duly incorporated or organized
and is validly existing as a corporation, limited liability company
or limited partnership, as applicable, in good standing under the
laws of its jurisdiction of incorporation or
organization;
(viii)
The Company has
an authorized capitalization as set forth in each of the Pricing
Prospectus and the Prospectus, and all of the issued shares of
capital stock of the Company have been duly and validly authorized
and issued, are fully paid and non-assessable; and all of the
issued shares of capital stock of each subsidiary of the Company
have been duly and validly authorized and issued, are fully paid
and non-assessable and (except for directors’ qualifying
shares and except as otherwise set forth in each of the Pricing
Prospectus and the Prospectus) are owned directly or indirectly by
the Company, free and clear of all liens, encumbrances, equities or
claims;
(ix)
The Company
Shares have been duly and validly authorized and when issued and
delivered against payment therefor as provided herein, will be duly
and validly issued and fully paid and non-assessable;
(x)
The Selling
Stockholders Firm Shares and the Optional Shares have been duly and
validly authorized and issued and are fully paid and
non-assessable;
(xi)
This Agreement
has been duly authorized, executed and delivered by the
Company;
(xii)
Prior to the date
hereof, neither the Company nor any of its affiliates has taken any
action which is designed to or which has constituted or which might
have been expected to cause or result in stabilization or
manipulation of the price of any security of the Company in
connection with the offering of the Shares;
4
(xiii)
The issue and
sale of the Shares to be sold by the Company and the compliance by
the Company with all of the provisions of this Agreement and the
consummation of the transactions herein contemplated will not,
except as could not reasonably be expected to have a Material
Adverse Effect, conflict with or result in a breach or violation of
any of the terms or provisions of, or constitute a default under,
any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Company or any of its
subsidiaries is a party or by which the Company or any of its
subsidiaries is bound or to which any of the property or assets of
the Company or any of its subsidiaries is subject, nor will such
action result in any violation of the provisions of the Certificate
of Incorporation or By-laws of the Company or any of its
subsidiaries or, except as could not reasonably be expected to have
a Material Adverse Effect, any statute or any order, rule or
regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of
their properties; and no consent, approval, authorization, order,
registration or qualification of or with any such court or
governmental agency or body is required for the issue and
sale of the
Shares or the consummation by the Company of the transactions
contemplated by this Agreement, except for such consents,
approvals, authorizations, registrations or qualifications as
may be required under state securities or Blue Sky laws in
connection with the purchase and distribution of the Shares by the
Underwriters;
(xiv)
Neither the
Company nor any of its subsidiaries is in violation of its
Certificate of Incorporation or By-laws, or except as could not
reasonably be expected to have a Material Adverse Effect, in
default in the performance or observance of any material
obligation, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement
or instrument to which it is a party or by which it or any of its
properties may be bound;
(xv)
The statements
set forth in each of the Pricing Prospectus and the Prospectus
under the caption “Description of Capital Stock”,
insofar as they purport to constitute a summary of the terms of the
Stock, under the captions “Certain U.S. Federal Income and
Estate Tax Consequences to Non-U.S. Holders”,
“Underwriting”, “Certain Relationships and
Related Party Transactions” and under the caption
“Description of Indebtedness,” insofar as they purport
to describe the provisions of the laws and documents referred to
therein, are accurate, complete and fair in all material
respects;
(xvi)
Other than as set
forth in each of the Pricing Prospectus and the Prospectus, there
are no legal or governmental proceedings pending to which the
Company or any of its subsidiaries is a party or of which any
property of the Company or any of its subsidiaries is the subject
which, if determined adversely to the Company or any of its
subsidiaries, would individually or in the aggregate have a
material adverse effect on the current or future financial
position, stockholders’ equity or results of operations of
the Company and its subsidiaries; and, to the Company’s
knowledge, no such proceedings are threatened or contemplated by
governmental authorities or threatened by others;
(xvii)
Neither the
Company nor its subsidiaries is and, after giving effect to the
offering and sale of the Shares, none of them will be an
“investment company”, as such term is defined in the
Investment Company Act of 1940, as amended (the “Investment
Company Act”);
(xviii)
At the time of
filing the Initial Registration Statement the Company was not and
the Company is not an “ineligible issuer,” as defined
under Rule 405 under the Act;
5
(xix)
Deloitte & Touche
LLP, who have certified certain financial statements of the Company
and its subsidiaries, and PricewaterhouseCoopers LLP, who have also
certified certain financial statements of the Company and its
subsidiaries, are each independent public accountants as required
by the Act and the rules and regulations of the Commission
thereunder;
(xx)
The Company
maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”))
sufficient to provide reasonable assurances that
(A) transactions are executed in accordance with
management’s general or specific authorization,
(B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally
accepted accounting principles and to maintain accountability for
assets, (C) access to assets is permitted only in accordance
with management’s general or specific authorization and
(D) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences; except as disclosed in
each of the Pricing Prospectus and the Prospectus, the Company’s internal control over financial
reporting is effective and the Company is not aware of any material
weaknesses in its internal control over financial
reporting;
(xxi)
Since the date of
the latest audited financial statements included in the Pricing
Prospectus, there has been no change in the Company’s
internal control over financial reporting that has materially
affected, or is reasonably likely to materially affect, the
Company’s internal control over financial
reporting;
(xxii)
The Company
maintains disclosure controls and procedures (as such term is
defined in Rule 13a-15(e) of the Exchange Act) designed
to ensure that information required to be disclosed by the reports
that it files or submits under the Exchange Act are recorded,
processed, summarized and reported in accordance with the Exchange
Act and the rules and regulations thereunder; and the Company
has carried out evaluations, under the supervision and with the
participation of its management, of the effectiveness of the design
and operation of the Company’s disclosure controls and
procedures in accordance with Rule 13a-15 of the Exchange
Act;
(xxiii)
The Company and
each of its subsidiaries has complied in all respects with all
laws, regulations and orders applicable to it or its businesses,
the violation of which would have a Material Adverse
Effect;
(xxiv)
(A) No labor
disturbance by the employees of the Company or any of its
subsidiaries exist or, to the knowledge of the Company and its
subsidiaries, is imminent; and (B) there are no unfair labor
practice complaints pending against the Company or any of its
subsidiaries or, to the knowledge of the Company and its
subsidiaries, is threatened against any of them, which, in the case
of either (A) or (B), would result in a Material Adverse
Effect; and
(xxv)
The Company and
each of its subsidiaries owns or possesses or has the right to use
the patents, patent rights, licenses, inventions, copyrights,
know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or
procedures), trademarks, service marks and trade names
(collectively, the “Intellectual Property”) presently
employed by it in connection with, and material to, collectively or
in the aggregate, the operation of the businesses now operated by
it, and, except as described in the Prospectus, neither the Company
nor its subsidiaries has received any notice
6
of infringement
of or conflict with asserted rights of others with respect to the
foregoing which, individually or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, would result in a
Material Adverse Effect.
Furthermore, the Company represents
and warrants to Citigroup Global Markets Inc. that (i) the
Registration Statement, the Pricing Prospectus, the Prospectus and
any Issuer Free Writing Prospectus comply, and any further
amendments or supplements thereto will comply, with any applicable
laws or regulations of foreign jurisdictions in which the Pricing
Prospectus, the Prospectus or any Issuer Free Writing Prospectus,
as amended or supplemented, if applicable, are distributed in
connection with the Directed Share Program, and (ii) no
authorization, approval, consent, license, order, registration or
qualification of or with any government, governmental
instrumentality or court, other than such as have been obtained, is
necessary under the securities laws and regulations of foreign
jurisdictions in which the Directed Shares are offered outside the
United States. The Company has not offered, or caused the
Underwriters to offer, Shares to any person pursuant to the
Directed Share Program with the specific intent to unlawfully
influence (i) a customer or supplier of the Company to alter
the customer’s or supplier’s level or type of business
with the Company, or (ii) a trade journalist or publication to
write or publish favorable information about the Company or its
products.
(b)
Each of the
Selling Stockholders, severally and not jointly, represents and
warrants to, and agrees with, each of the Underwriters and the
Company that:
(i)
All consents,
approvals, authorizations and orders necessary for the execution
and delivery by such Selling Stockholder of this Agreement and the
Power of Attorney and the Custody Agreement hereinafter referred
to, and for the sale and delivery of the Shares to be sold by such
Selling Stockholder hereunder, have been obtained; and such Selling
Stockholder has full right, power and authority to enter into this
Agreement, the Power of Attorney and the Custody Agreement and to
sell, assign, transfer and deliver the Shares to be sold by such
Selling Stockholder hereunder;
(ii)
The sale of the
Shares to be sold by such Selling Stockholder hereunder and the
compliance by such Selling Stockholder with all of the provisions
of this Agreement, the Power of Attorney and the Custody Agreement
and the consummation of the transactions herein and therein
contemplated will not conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a
default under, any statute, indenture, mortgage, deed of trust,
loan agreement or other agreement or instrument to which such
Selling Stockholder is a party or by which such Selling Stockholder
is bound or to which any of the property or assets of such Selling
Stockholder is subject, nor will such action result in any
violation of the provisions of the Certificate of Incorporation or
By-laws of such Selling Stockholder if such Selling Stockholder is
a corporation, the Limited Liability
Company Agreement of such Selling Stockholder if such Selling
Stockholder is a limited liability company and the Partnership
Agreement of such Selling Stockholder if such Selling Stockholder
is a partnership or any statute or any order, rule or
regulation of any court or governmental agency or body having
jurisdiction over such Selling Stockholder or the property of such
Selling Stockholder;
(iii)
Such Selling
Stockholder has, and immediately prior to each Time of Delivery (as
defined in Section 4(a) hereof) such Selling Stockholder
will have, good and valid title to the Shares to be sold by such
Selling Stockholder hereunder, free and clear of all liens,
encumbrances, equities or claims; and, upon delivery of such Shares
and payment therefor
7
pursuant hereto,
good and valid title to such Shares, free and clear of all liens,
encumbrances, equities or claims, will pass to the several
Underwriters;
(iv)
Each of the
Selling Stockholders has executed and delivered to the
Representatives a lock-up agreement (the “Lock-Up
Agreement”), pursuant to which each Selling Stockholder has
agreed during the period beginning from the date hereof and
continuing to and including the date 180 days after the date of the
Prospectus (the initial “Lock-Up Period”), not to
offer, sell, hedge or otherwise dispose of, except as provided in
the Lock-Up Agreement, any securities of the Company that are
substantially similar to the Shares, including but not limited to
any securities that are convertible into or exchangeable for, or
that represent the right to receive, Stock or any such
substantially similar securities (other than pursuant to employee
stock option plans existing on, or upon the conversion or exchange
of convertible or exchangeable securities outstanding as of, the
date of this Agreement), without the prior written consent of
Citigroup Global Markets Inc.; provided, however, that if
(1) during the last 17 days of the initial Lock-Up Period, the
Company releases earnings results or announces material news or a
material event 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 following the last day of the
initial Lock-Up Period, then in each case the Lock-Up Period will
be automatically extended until the expiration of the 18-day period
beginning on the date of release of the earnings results or the
announcement of the material news or material event, as applicable,
unless Citigroup Global Markets Inc. waives, in writing, such
extension; such Selling Stockholder hereby acknowledges that the
Company has agreed herein to provide written notice of any event
that would result in an extension of the Lock-Up Period pursuant to
the previous sentence to such Selling Stockholder (in accordance
with Section 13 herein) and agrees that any such notice
properly delivered will be deemed to have been given to, and
received by, the Selling Stockholder; such Selling Stockholder
hereby further agrees that, prior to engaging in any transaction or
taking any other action that is subject to the terms of this
provision during the period from the date hereof to and including
the 34th day following the expiration of the initial Lock-Up
Period, it will give notice thereof to the Company and will not
consummate such transaction or take any such action unless it has
received written confirmation from the Company that the Lock-Up
Period (as such may have been extended pursuant to the
previous paragraph) has expired.
(v)
Such Selling
Stockholder has not taken and will not take, directly or
indirectly, any action which is designed to or which has
constituted or which might reasonably be expected to cause or
result in stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the
Shares;
(vi)
To the extent
that any statements or omissions made in the Registration
Statement, the Pricing Prospectus, the Prospectus, any Issuer Free
Writing Prospectus or any amendment or supplement thereto are made
in reliance upon and in conformity with written information
relating to the Selling Stockholder furnished to the Company by
such Selling Stockholder expressly for use therein, such
Registration Statement, Pricing Prospectus, Prospectus, Issuer Free
Writing Prospectus and any further amendments or supplements
thereto, as the case may be, did and will, conform in all
material respects to the requirements of the Act and the
rules and regulations of the Commission thereunder and will
not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary
to make the statements therein not misleading;
8
(vii)
In order to
document the Underwriters’ compliance with the reporting and
withholding provisions of the Tax Equity and Fiscal Responsibility
Act of 1982 with respect to the transactions herein contemplated,
such Selling Stockholder will deliver to you prior to or at the
First Time of Delivery (as hereinafter defined) a properly
completed and executed United States Treasury Department
Form W-9 (if such Selling Stockholder is a United States
person, as defined under Section 7701(a)(30) of the Internal
Revenue Code of 1986, as amended) or Form W-8 (if such Selling
Stockholder is not a United States person, as defined under
Section 7701(a)(30) under the Internal Revenue Code of 1986,
as amended) (or other applicable form or statement specified
by Treasury Department regulations in lieu thereof);
(viii)
Certificates in
negotiable form representing all of the Shares to be sold by
such Selling Stockholder hereunder have been placed in custody
under a Custody Agreement, in the form heretofore furnished to
you (the “Custody Agreement”), duly executed and
delivered by such Selling Stockholder to Kenneth L. Walker and
James B. Hirshorn, as custodian (the “Custodian”), and
such Selling Stockholder has duly executed and delivered a Power of
Attorney, in the form heretofore furnished to you (the
“Power of Attorney”), appointing the persons indicated
in Schedule II hereto, and each of them, as such Selling
Stockholder’s attorneys-in-fact (the
“Attorneys-in-Fact”) with authority to execute and
deliver this Agreement on behalf of such Selling Stockholder, to
determine the purchase price to be paid by the Underwriters to the
Selling Stockholders as provided in Section 2 hereof, to
authorize the delivery of the Shares to be sold by such Selling
Stockholder hereunder and otherwise to act on behalf of such
Selling Stockholder in connection with the transactions
contemplated by this Agreement and the Custody Agreement;
and
(ix)
The Shares
represented by the certificates held in custody for such Selling
Stockholder under the Custody Agreement are subject to the
interests of the Underwriters hereunder; the arrangements made by
such Selling Stockholder for such custody, and the appointment by
such Selling Stockholder of the Attorneys-in-Fact by the Power of
Attorney, are to that extent irrevocable; the obligations of the
Selling Stockholders hereunder shall not be terminated by operation
of law, whether by the death or incapacity of any individual
Selling Stockholder or, in the case of an estate or trust, by the
death or incapacity of any executor or trustee or the termination
of such estate or trust, or in the case of a partnership, limited
liability company or corporation, by the dissolution of such
partnership, limited liability company or corporation, or by the
occurrence of any other event; if any individual Selling
Stockholder or any such executor or trustee should die or become
incapacitated, or if any such estate or trust should be terminated,
or if any such partnership, limited liability company or
corporation should be dissolved, or if any other such event should
occur, before the delivery of the Shares hereunder, certificates
representing the Shares shall be delivered by or on behalf of the
Selling Stockholders in accordance with the terms and conditions of
this Agreement and of the Custody Agreements; and actions taken by
the Attorneys-in-Fact pursuant to the Powers of Attorney shall be
as valid as if such death, incapacity, termination, dissolution or
other event had not occurred, regardless of whether or not the
Custodian, the Attorneys-in-Fact, or any of them, shall have
received notice of such death, incapacity, termination, dissolution
or other event.
2.
Subject to the terms and conditions
herein set forth, (a) the Company and each of the Selling
Stockholders agree, severally and not jointly, to sell to each of
the Underwriters, and each of the Underwriters agrees, severally
and not jointly, to purchase from the Company and each of the
Selling Stockholders, at a purchase price per share of
$[ ],
the number of Firm Shares (to be
9
adjusted by you so as to eliminate
fractional shares) determined by multiplying the aggregate number
of Shares to be sold by the Company and each of the Selling
Stockholders as set forth opposite their respective names in
Schedule II hereto by a fraction, the numerator of which is
the aggregate number of Firm Shares to be purchased by such
Underwriter as set forth opposite the name of such Underwriter in
Schedule I hereto and the denominator of which is the
aggregate number of Firm Shares to be purchased by all of the
Underwriters from the Company and all of the Selling Stockholders
hereunder and (b) in the event and to the extent that the
Underwriters shall exercise the election to purchase Optional
Shares as provided below, each of the Selling Stockholders agree,
severally and not jointly, to sell to each of the Underwriters, and
each of the Underwriters agrees, severally and not jointly, to
purchase from each of the Selling Stockholders, at the purchase
price per share set forth in clause (a) of this
Section 2, that portion of the number of Optional Shares as to
which such election shall have been exercised (to be adjusted by
you so as to eliminate fractional shares) determined by multiplying
such number of Optional Shares by a fraction the numerator of which
is the maximum number of Optional Shares which such Underwriter is
entitled to purchase as set forth opposite the name of such
Underwriter in Schedule I hereto and the denominator of which
is the maximum number of Optional Shares that all of the
Underwriters are entitled to purchase hereunder.
The Selling Stockholders, as and to
the extent indicated in Schedule II hereto, hereby grant,
severally and not jointly, to the Underwriters the right to
purchase at their election up to
[ ]
Optional Shares, at the purchase price per share set forth in the
paragraph above, for the sole purpose of covering sales of shares
in excess of the number of Firm Shares, provided that the
purchase price per Optional Share shall be reduced by an amount per
share equal to any dividends or distributions declared by the
Company and payable on the Firm Shares but not payable on the
Optional Shares. Any such election to purchase Optional Shares
shall be made in proportion to the maximum number of Optional
Shares to be sold by each Selling Stockholder as set forth in
Schedule II hereto. Any such election to purchase Optional
Shares may be exercised only by written notice from you to the
Attorneys-in-Fact, given within a period of 30 calendar days after
the date of this Agreement and setting forth the aggregate number
of Optional Shares to be purchased and the date on which such
Optional Shares are to be delivered, as determined by you but in no
event earlier than the First Time of Delivery (as defined in
Section 4(a) hereof) or, unless you and the
Attorneys-in-Fact, otherwise agree in writing, earlier than two or
later than ten business days after the date of such
notice.
3.
Upon the
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