EX-1.1
Published on May 8, 2008
Exhibit 1.1
Form of Underwriting Agreement
$[]
TTM Technologies, Inc.
[]% Convertible Senior Notes due 201[]
Underwriting Agreement
May [], 2008
J.P. Morgan Securities Inc.
277 Park Avenue
New York, New York 10017
277 Park Avenue
New York, New York 10017
UBS Securities LLC
299 Park Avenue
New York, New York 10171
299 Park Avenue
New York, New York 10171
As Representatives of the
several Underwriters listed
in Schedule 1 hereto
several Underwriters listed
in Schedule 1 hereto
Ladies and Gentlemen:
TTM Technologies, Inc., a Delaware corporation (the Company), proposes to issue and sell to
the several Underwriters listed in Schedule 1 hereto (the Underwriters), for whom you are acting
as Representatives (the Representatives), an aggregate of $[] principal amount of its []%
Convertible Senior Notes due 201[] (the Firm Securities), and, at the option of the
Underwriters, up to an additional aggregate of $[] principal amount of its []% Convertible Senior
Notes due 201[] (the Additional Securities). The Firm Securities and the Additional Securities
are herein referred to as the Securities. The Securities will be issued pursuant to a
Supplemental Indenture to be dated as of May [], 2008 (the Indenture) between the Company and
[] (the Trustee). The Securities will be convertible into shares (the Underlying Securities)
of common stock of the Company, par value $0.001 per share (the Common Stock), in accordance with
the terms of the Indenture. The Company hereby confirms its agreement with the several
Underwriters concerning the purchase and sale of the Securities, as follows:
1. Registration Statement. The Company has prepared and filed with the Securities and
Exchange Commission (the Commission) under the Securities Act of 1933, as amended,
and the rules and regulations of the Commission thereunder (collectively, the Securities Act),
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a
registration statement (File No. 333-148687) including a prospectus, relating to certain debt and
equity securities to be issued by the Company from time to time. Such registration statement, as
amended at the time it becomes effective, including the information, if any, deemed pursuant to
Rule 430A, 430B or 430C under the Securities Act to be part of the registration statement at the
time of its effectiveness (Rule 430 Information), is referred to herein as the Registration
Statement; and as used herein, the term Preliminary Prospectus means each prospectus included in
such registration statement (and any amendments thereto) before it becomes effective, any
prospectus filed with the Commission pursuant to Rule 424(a) under the Securities Act and the
prospectus included in the Registration Statement at the time of its effectiveness that omits Rule
430 Information, and the term Prospectus means the prospectus in the form first used (or made
available upon request of purchasers pursuant to Rule 173 under the Securities Act) in connection
with confirmation of sales of the Securities. If the Company has filed 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 be deemed to include such Rule
462 Registration Statement. Any reference in this Agreement to the Registration Statement, any
Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act, as of
the effective date of the Registration Statement or the date of such Preliminary Prospectus or the
Prospectus, as the case may be and any reference to amend, amendment or supplement with
respect to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed
to refer to and include any documents filed after such date under the Securities Exchange Act of
1934, as amended, and the rules and regulations of the Commission thereunder (collectively, the
Exchange Act) that are deemed to be incorporated by reference therein. Capitalized terms used
but not defined herein shall have the meanings given to such terms in the Registration Statement
and the Prospectus.
At or prior to the time when sales of the Securities are first made (the Time of Sale), the
Company had prepared the following information (collectively, the Time of Sale Information): a
Preliminary Prospectus dated May [], 2008, and each free-writing prospectus (as defined pursuant
to Rule 405 under the Securities Act) listed on Annex B hereto.
2. Purchase of the Securities by the Underwriters. (a) The Company agrees to issue
and sell the Securities to the several Underwriters as provided in this Agreement, and each
Underwriter, on the basis of the representations, warranties and agreements set forth herein and
subject to the conditions set forth herein, agrees, severally and not jointly, to purchase from the
Company the respective principal amount of Securities set forth opposite such Underwriters name in
Schedule 1 hereto at a price (the Purchase Price) equal to []% of the principal amount thereof
plus accrued interest, if any, from May [], 2008 to the date of payment and delivery.
On the basis of the representations and warranties contained in this Agreement, and subject to
its terms and conditions, the Company agrees to sell to the several Underwriters the Additional
Securities, and the Underwriters shall have the right to purchase in whole, or from time to time in
part, the Additional Securities from the Company at the Purchase Price plus
accrued interest, if any, from the Closing Date (as defined below) to the date of payment and
delivery, solely to cover over-allotments.
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If any Additional Securities are to be purchased, the principal amount of Additional
Securities to be purchased by each Underwriter shall be the principal amount of Additional
Securities which bears the same ratio to the aggregate principal amount of Additional Securities
being purchased as the principal amount of Firm Securities set forth opposite the name of such
Underwriter in Schedule 1 hereto (or such principal amount increased as set forth in Section 10
hereof) bears to the aggregate principal amount of Firm Securities being purchased from the Company
by the several Underwriters, subject, however, to such adjustments as the Representatives in their
sole discretion may make in order to ensure that the principal amount of Additional Securities
purchased by each Underwriter is a multiple of $1,000.
The Underwriters may exercise the option to purchase the Additional Securities at any time in
whole, or from time to time in part, on or before the thirtieth day following the date of this
Agreement, by written notice from the Representatives to the Company. Such notice shall set forth
the aggregate principal amount of Additional Securities as to which the option is being exercised
and the date and time when the Additional Securities are to be delivered and paid for (an
Additional Closing Date), which shall be on or after the date and time of the Closing Date (as
hereinafter defined) but shall not be earlier than two business days after the date such notice is
given nor later than the tenth full Business Day (as hereinafter defined) after the date of such
notice (unless such time and date are postponed in accordance with the provisions of Section 10
hereof), except as otherwise may be agreed between the parties.
(b) The Company understands that the Underwriters intend to make a public offering
of the Securities as soon after the effectiveness of this Agreement as in the judgment of the
Representatives is advisable, and initially to offer the Securities on the terms set forth in the
Prospectus. The Company acknowledges and agrees that the Underwriters may offer and sell
Securities to or through any affiliate of an Underwriter and that any such affiliate may offer and
sell Securities purchased by it to or through any Underwriter.
(c) Payment for the Securities shall be made by wire transfer in immediately available funds
to the account specified by the Company to the Representatives at 10:00 A.M. New York City time on
May [], 2008, or at such other time or place on the same or such other date, not later than the
fifth Business Day thereafter, as the Representatives and the Company may agree upon in writing.
The time and date of such payment is referred to herein as the Closing Date.
As used herein, the term Business Day means any day other than a day on which banks are permitted
or required to be closed in New York City.
Payment for the Securities shall be made against delivery to the nominee of The Depository
Trust Company for the respective accounts of the several Underwriters of the Securities of one or
more global notes (collectively, the Global Notes) representing the Securities, with any transfer
taxes payable in connection with the transfer to the Underwriters of the Securities duly paid by
the Company. The Global Notes will be made available for inspection by the Representatives at the
office of J.P. Morgan Securities Inc. at the address set
forth above not later than 1:00 P.M., New York City time, on the Business Day immediately
prior to the Closing Date.
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(d) The Company acknowledges and agrees that the Underwriters are acting solely in the
capacity of an arms length contractual counterparty to the Company with respect to the offering of
Securities contemplated hereby (including in connection with determining the terms of the offering)
and not as financial advisors or fiduciaries to, or agents of, the Company or any other person.
Additionally, neither the Representatives nor any other Underwriter are advising the Company or any
other person as to any legal, tax, investment, accounting or regulatory matters in any
jurisdiction. The Company shall consult with its own advisors concerning such matters and shall be
responsible for making its own independent investigation and appraisal of the transactions
contemplated hereby, and the Underwriters shall have no responsibility or liability to the Company
with respect thereto. Any review by the Underwriters of the Company, the transactions contemplated
hereby or other matters relating to such transactions will be performed solely for the benefit of
the Underwriters and shall not be on behalf of the Company.
3. Representations and Warranties of the Company. The Company represents and warrants
to each Underwriter that:
(a) Preliminary Prospectus. No order preventing or suspending the use of any Preliminary
Prospectus has been issued by the Commission, and each Preliminary Prospectus, at the time of
filing thereof, complied in all material respects with the Securities Act and did 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;
provided that the Company makes no representation or warranty with respect to any
statements or omissions made in reliance upon and in conformity with information relating to any
Underwriter furnished to the Company in writing by such Underwriter expressly for use in any
Preliminary Prospectus, it being understood and agreed that the only such information furnished by
any Underwriter consists of the information described as such in Section 7(b) hereof.
(b) Time of Sale Information. The Time of Sale Information, at the Time of Sale did not, and
at the Closing Date 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; provided that the Company makes no
representation or warranty with respect to any statements or omissions made in reliance upon and in
conformity with information relating to any Underwriter furnished to the Company in writing by such
Underwriter through the Representatives expressly for use in such Time of Sale Information, it
being understood and agreed that the only such information furnished by any Underwriter consists of
the information described as such in Section 7(b) hereof. No statement of material fact included
in the Prospectus has been omitted from the Time of Sale Information and no statement of material
fact included in the Time of Sale Information that is required to be included in the Prospectus has
been omitted therefrom.
(c) Issuer Free Writing Prospectus. Other than the Registration Statement, the Preliminary
Prospectus and the Prospectus, the Company (including its agents and representatives, other than
the Underwriters in their capacity as such) has not made, used, prepared, authorized, approved or
referred to and will not make, use, prepare, authorize, approve or refer to any written
communication (as defined in Rule 405 under the Securities Act) that
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constitutes an offer to sell
or solicitation of an offer to buy the Securities (each such communication by the Company or its
agents and representatives (other than a communication referred to in clause (i) below) an Issuer
Free Writing Prospectus) other than (i) any document not constituting a prospectus pursuant to
Section 2(a)(10)(a) of the Securities Act or Rule 134 under the Securities Act or (ii) the
documents listed on Annex B hereto and other written communications approved in writing in advance
by the Representatives. Each such Issuer Free Writing Prospectus complied in all material respects
with the Securities Act, has been filed in accordance with the Securities Act (to the extent
required thereby) and, when taken together with the Preliminary Prospectus accompanying, or
delivered prior to delivery of, or filed prior to the first use of such Issuer Free Writing
Prospectus, did not, and at the Closing Date 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; provided that the
Company makes no representation or warranty with respect to any statements or omissions made in
each such Issuer Free Writing Prospectus in reliance upon and in conformity with information
relating to any Underwriter furnished to the Company in writing by such Underwriter through the
Representatives expressly for use in any Issuer Free Writing Prospectus, it being understood and
agreed that the only such information furnished by any Underwriter consists of the information
described as such in Section 7(b) hereof.
(d) Registration Statement and Prospectus. The Registration Statement has been declared
effective by the Commission. No order suspending the effectiveness of the Registration Statement
has been issued by the Commission and no proceeding for that purpose or pursuant to Section 8A of
the Securities Act against the Company or related to the offering has been initiated or threatened
by the Commission; as of the applicable effective date of the Registration Statement and any
amendment thereto, the Registration Statement complied and will comply in all material respects
with the Securities Act and the Trust Indenture Act of 1939, as amended, and the rules and
regulations of the Commission thereunder (collectively, the Trust Indenture Act), 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 in order to make the statements therein not misleading; and as of
the date of the Prospectus and any amendment or supplement thereto and as of the Closing Date, the
Prospectus 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; provided that the Company makes no representation and
warranty with respect to (i) that part of the Registration Statement that constitutes the Statement
of Eligibility and Qualification (Form T-1) of the Trustee under the Trust Indenture Act or (ii)
any statements or omissions made in reliance upon and in conformity with information relating to
any Underwriter furnished to the Company in writing by such Underwriter through the Representatives
expressly for use in the Registration Statement and the Prospectus and any amendment or supplement
thereto, it being understood and agreed that the
only such information furnished by any Underwriter consists of the information described as such in
Section 7(b) hereof.
(e) Incorporated Documents. The documents incorporated by reference in the Registration
Statement, the Prospectus and the Time of Sale Information, when they became effective or were
filed with the Commission , as the case may be, conformed in all material
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respects to the
requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents
contained any untrue statement of a material fact or omitted to state a material fact or necessary
to make the statements therein, in the light of the circumstances under which they were made, not
misleading; and any further documents so filed and incorporated by reference in the Registration
Statement, the Prospectus or the Time of Sale Information, when such documents become effective or
are filed with the Commission, as the case may be, will conform in all material respects to the
requirements of the Securities Act or the Exchange Act, as applicable, 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.
(f) Financial Statements. The financial statements and the related notes thereto included or
incorporated by reference in the Registration Statement, the Time of Sale Information and the
Prospectus comply in all material respects with the applicable requirements of the Securities Act
and the Exchange Act, as applicable, and present fairly, in all material respects, the consolidated
financial position of the Company and its subsidiaries as of the dates indicated and the
consolidated results of their operations and the consolidated changes in their cash flows for the
periods specified; such consolidated financial statements have been prepared in conformity with
generally accepted accounting principles (GAAP) applied on a consistent basis throughout the
periods covered thereby, and the supporting schedules included or incorporated by reference in the
Registration Statement present fairly, in all material respects, the information required to be
stated therein; the other financial information included or incorporated by reference in the
Registration Statement, the Time of Sale Information and the Prospectus has been derived from the
accounting records of the Company and its subsidiaries and presents fairly, in all material
respects, the information shown thereby; and there are no financial statements (historical or pro
forma) that are required to be included or incorporated by reference in the Registration Statement,
the Time of Sale Information or the Prospectus (or any document incorporated by reference) that are
not included or incorporated by reference as required; the Company and its subsidiaries do not have
any material liabilities or obligations, direct or contingent (including any off-balance sheet
obligations) that would be required to be described in the Registration Statement, the Time of Sale
Information or the Prospectus; and all disclosures contained or incorporated by reference in the
Registration Statement, the Time of Sale Information and the Prospectus regarding non-GAAP
financial measures (as such term is defined by the rules and regulations of the Commission) comply
with Regulation G under the Exchange Act and Item 10 of Regulation S-K under the Securities Act, in
all material respects as applicable.
(g) No Material Adverse Change. Since the date of the most recent financial statements of the
Company included or incorporated by reference in the Registration Statement,
the Time of Sale Information and the Prospectus, (i) there has not been any change in the capital
stock (other than the issuance of shares of Common Stock and options to purchase shares of Common
Stock granted under, or contracts or commitments pursuant to, the Companys previous or currently
existing stock option and other similar officer, director or employee benefit plans or the issuance
of Common Stock upon the exercise of outstanding options and warrants) or long-term debt of the
Company or any of its subsidiaries, or any dividend or distribution of any kind declared, set aside
for payment, paid or made by the Company on any class of capital stock, or
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any material adverse
change, or any development that could reasonably be expected to result in a material adverse
change, in or affecting the business, properties, management, financial position, stockholders
equity or results of operations of the Company and its subsidiaries taken as a whole; (ii) neither
the Company nor any of its subsidiaries has entered into any transaction or agreement that is
material to the Company and its subsidiaries taken as a whole or incurred any liability or
obligation, direct or contingent, that is material to the Company and its subsidiaries taken as a
whole; and (iii) neither the Company nor any of its subsidiaries has sustained 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 disturbance or dispute or any action, order or decree of
any court or arbitrator or governmental or regulatory authority, except in each case of clauses
(i), (ii) and (iii) as otherwise disclosed in each of the Registration Statement, the Time of Sale
Information and the Prospectus.
(h) Organization and Good Standing. The Company and each of its subsidiaries have been duly
organized and are validly existing and in good standing under the laws of their respective
jurisdictions of organization, are duly qualified to do business and are in good standing in each
jurisdiction in which their respective ownership or lease of property or the conduct of their
respective businesses requires such qualification, and have all power and authority necessary to
own or hold their respective properties and to conduct the businesses in which they are engaged,
except where the failure to be so qualified, in good standing or have such power or authority would
not have or would not be reasonably expected to have, individually or in the aggregate, a material
adverse effect on the business, properties, management, financial position, stockholders equity or
results of operations of the Company and its subsidiaries taken as a whole or on the performance by
the Company of its obligations under the Transaction Documents (as defined below) (a Material
Adverse Effect). The Company does not own or control, directly or indirectly, any corporation,
association or other entity other than the subsidiaries listed in Exhibit 21.1 to the Companys
Annual Report on Form 10-K for the year ended December 31, 2007.
(i) Stock Options. Except as described in each of the Time of Sale Information and the
Prospectus, with respect to the stock options (the Stock Options) granted pursuant to the
stock-based compensation plans of the Company and its subsidiaries (the Company Stock Plans), (i)
each Stock Option designated by the Company at the time of grant as an incentive stock option
under Section 422 of the Internal Revenue Code of 1986, as amended (the Code) so qualifies, (ii)
each grant of a Stock Option was duly authorized no later than the date on which the grant of such
Stock Option was by its terms to be effective (the Grant Date) by all necessary corporate action,
including, as applicable, approval by the board of directors of the Company (or a duly constituted
and authorized committee thereof) and any required stockholder approval by the necessary number of
votes or written consents, and the award agreement
governing such grant (if any) was duly executed and delivered by each party thereto, (iii) each
such grant was made in accordance with the terms of the Company Stock Plans, the Exchange Act and
all other applicable laws and regulatory rules or requirements, including the rules of The Nasdaq
Global Select Market (the Nasdaq) and any other exchange on which Company securities are traded,
(iv) the per share exercise price of each Stock Option was equal to or greater than the fair market
value of a share of Common Stock on the applicable Grant Date and (v) each such grant was properly
accounted for in accordance with GAAP in the financial statements (including the related notes) of
the Company and disclosed in the Companys filings
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with the Commission in accordance with the
Exchange Act and all other applicable laws. The Company has not knowingly granted, and there is no
and has been no policy or practice of the Company of granting, Stock Options immediately prior to
the release or other public announcement of material information regarding the Company or its
subsidiaries or their results of operations or prospects.
(j) Capitalization. The Company has an authorized capitalization as set forth in the
Registration Statement, the Time of Sale Information and the Prospectus under the heading
Capitalization; all the outstanding shares of capital stock of the Company have been duly and
validly authorized and issued and are fully paid and non-assessable and are not subject to any
pre-emptive or similar rights; except as described in or expressly contemplated by each of the Time
of Sale Information and the Prospectus, there are no outstanding rights (including, without
limitation, pre-emptive rights), warrants or options to acquire, or instruments convertible into or
exchangeable for, any shares of capital stock or other equity interest in the Company or any of its
subsidiaries, or any contract, commitment, agreement, understanding or arrangement of any kind
relating to the issuance of any capital stock of the Company or any such subsidiary, any such
convertible or exchangeable securities or any such rights, warrants or options; the capital stock
of the Company conforms in all material respects to the description thereof contained in the
Registration Statement, the Time of Sale Information and the Prospectus; and all the outstanding
shares of capital stock or other equity interests of each subsidiary of the Company have been duly
and validly authorized and issued, are fully paid and non-assessable (except, in the case of any
foreign subsidiary, for directors qualifying shares and except as otherwise described in each of
the Registration Statement, the Time of Sale Information and the Prospectus) and are owned directly
or indirectly by the Company, free and clear of any lien, charge, encumbrance, security interest,
restriction on voting or transfer or any other claim of any third party except as set forth in each
of the Registration Statement, the Time of Sale Information and the Prospectus.
(k) Due Authorization. The Company has full right, power and authority to execute and deliver
this Agreement, the Securities and the Indenture (collectively, the Transaction Documents) and to
perform its obligations hereunder and thereunder; each of the Transaction Documents has been duly
and properly authorized by the Company and all action required to be taken by the Company for such
due and proper authorization and for the execution and delivery by the Company of each of the
Transaction Documents and the consummation by it of the transactions contemplated thereby has been
duly and validly taken.
(l) Underwriting Agreement. This Agreement has been executed and delivered by the Company.
(m) Indenture. Upon effectiveness of the Registration Statement, the Indenture was or will
have been duly qualified under and will conform in all material respects to the requirements of the
Trust Indenture Act and, when duly executed and delivered in accordance with its terms by each of
the parties thereto, will constitute a valid and legally binding agreement of the Company
enforceable against the Company in accordance with its terms, except as enforceability may be
limited by (i) applicable bankruptcy, insolvency or similar laws affecting the enforcement of
creditors rights generally or (ii) by equitable principles relating to enforceability (clauses (i)
and (ii) collectively, the Enforceability Exceptions).
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(n) The Securities. The Securities have been duly authorized by the Company and, when duly
executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided
herein, will be duly and validly issued and outstanding and will constitute valid and legally
binding obligations of the Company enforceable against the Company in accordance with their terms,
subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture.
(o) The Underlying Securities. Upon issuance and delivery of the Securities in accordance
with this Agreement and the Indenture, the Securities will be convertible at the option of the
holder thereof into shares of the Underlying Securities in accordance with the terms of the
Securities and the Indenture; the Underlying Securities reserved for issuance upon conversion of
the Securities have been duly authorized and reserved and, when issued upon conversion of the
Securities in accordance with the terms of the Securities, will be validly issued, fully paid and
non-assessable, and the issuance of the Underlying Securities will not be subject to any preemptive
or similar rights.
(p) Descriptions of the Transaction Documents. Each Transaction Document conforms in all
material respects to the description thereof contained in each of the Registration Statement, the
Time of Sale Information and the Prospectus.
(q) No Violation or Default. Neither the Company nor any of its subsidiaries is (i) in
violation of its charter or by-laws or similar organizational documents; (ii) in default, and no
event has occurred that, with notice or lapse of time or both, would constitute such a default, in
the due performance or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to which 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; or
(iii) in violation of any law or statute or any judgment, order, rule or regulation of any court or
arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii)
above, for any such default or violation that would not, individually or in the aggregate, have a
Material Adverse Effect.
(r) No Conflicts. Except as set forth in each of the Registration Statement, the Time of Sale
Information and the Prospectus, the execution, delivery and performance by the Company of each of
the Transaction Documents to which it is a party, the issuance and sale of the Securities
(including the issuance of the Underlying Securities upon conversion thereof) and compliance by the
Company with the terms thereof and the consummation of the transactions contemplated by the
Transaction Documents will not (i) conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, or result in the creation or imposition of
any lien, charge or encumbrance upon any property or assets of the Company or any of its
subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which the Company or any of its subsidiaries is a party or by which the Company or
any of its subsidiaries is bound or to which any of the property or assets of the Company or any of
its subsidiaries is subject, (ii) result in any violation of the provisions of the charter or
by-laws or similar organizational documents of the Company or any of its subsidiaries or (iii)
result in the violation of any law or statute or any judgment, order, rule or regulation of any
court or arbitrator or governmental or regulatory authority, except, in the case of clauses (i)
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and
(iii) above, for any such conflict, breach, violation or default that would not, individually or in
the aggregate, have a Material Adverse Effect.
(s) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory authority is
required for the execution, delivery and performance by the Company of each of the Transaction
Documents to which it is a party, the issuance and sale of the Securities (including the issuance
of the Underlying Securities upon conversion thereof) and compliance by the Company with the terms
thereof and the consummation of the transactions contemplated by the Transaction Documents, except
for the registration of the Securities under the Securities Act and such consents, approvals,
authorizations, orders and registrations or qualifications as may be required under applicable
state securities laws in connection with the purchase and distribution of the Securities by the
Underwriters.
(t) Legal Proceedings. Except as described in each of the Registration Statement, the Time of
Sale Information and the Prospectus, there are no legal, governmental or regulatory investigations,
actions, suits or proceedings pending to which the Company or any of its subsidiaries is or may be
a party or to which any property of the Company or any of its subsidiaries is or may be the subject
that, individually or in the aggregate, if determined adversely to the Company or any of its
subsidiaries, could reasonably be expected to have a Material Adverse Effect or materially and
adversely affect the ability of the Company to perform its obligations under the Transaction
Documents; no such investigations, actions, suits or proceedings are threatened or, to the
knowledge of the Company, contemplated by any governmental or regulatory authority or threatened by
others; and (i) there are no current or pending legal, governmental or regulatory actions, suits or
proceedings that are required under the Securities Act to be described in the Registration
Statement or the Prospectus that are not so described in each of the Registration Statement, the
Time of Sale Information and the Prospectus and (ii) there are no statutes, regulations or
contracts or other documents that are required under the Securities Act to be filed as exhibits to
the Registration Statement or described in the Registration Statement or the Prospectus that are
not so filed as exhibits to the Registration Statement or described in each of the Registration
Statement, the Time of Sale Information and the Prospectus.
(u) Independent Accountants. KPMG LLP, who has certified certain financial statements of the
Company and its subsidiaries, is an independent registered public accounting firm with respect to
the Company and its subsidiaries within the applicable rules and regulations adopted by the
Commission and the Public Company Accounting Oversight Board (United States) and as required by the
Securities Act.
(v) Title to Real and Personal Property. The Company and its subsidiaries have good and
marketable title in fee simple to, or have valid rights to lease or otherwise use, all items of
real and personal property that are material to the respective businesses of the Company and its
subsidiaries, in each case free and clear of all liens, encumbrances, claims and defects and
imperfections of title except those that (i) do not materially interfere with the use made and
proposed to be made of such property by the Company and its subsidiaries or (ii) could not
reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
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(w) Intellectual Property.
(i) The Company and its subsidiaries own or possess the rights to use all patents,
patent applications, inventions, trademarks, service marks, trade names, trademark
registrations, service mark registrations, domain names, copyrights, licenses, know-how
(including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures) and other intellectual property necessary
for the conduct of their respective businesses (Intellectual Property); and, to the
Companys knowledge, the conduct of their respective businesses will not conflict in any
material respect with any such rights of others, and the Company and its subsidiaries have
not received any notice of any claim of infringement or conflict with any such rights of
others. To the Companys knowledge, there are no valid and enforceable rights of third
parties to the Intellectual Property that are or would be infringed by the business
currently conducted by the Company and its subsidiaries. None of the patents owned or
licensed by the Company that are material to the Companys and its subsidiaries respective
businesses is invalid or unenforceable; and the Company is not aware of any basis for a
finding that any of the Intellectual Property is invalid or unenforceable. All Intellectual
Property owned by the Company or its subsidiaries is free and clear of all liens,
encumbrances, defects or other restrictions, except as would not, singly or in the
aggregate, have a Material Adverse Effect on the Company. The Company and its subsidiaries
have taken all actions reasonably necessary to maintain and protect all registered
Intellectual Property owned by the Company or its subsidiaries, including payment of
applicable maintenance fees, filing of applicable statements of use, timely response to
office actions, and disclosure of any required information.
(ii) The Company and its subsidiaries are in compliance with all applicable federal,
state, local and foreign laws, rules, regulations, requirements, decisions and orders
relating to intellectual property except as would not, individually or in the aggregate,
have a Material Adverse Effect.
(iii) Neither the Company nor any of its subsidiaries is subject to any judgment,
order, writ, injunction or decree of any court or any federal, state, local, foreign or
other governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, or any arbitrator, nor has it entered into or is it a party to any
contract, in each case which materially restricts or impairs their use of any Intellectual
Property.
(iv) The Company and its subsidiaries have taken all actions reasonably necessary to
protect their rights in confidential information and trade secrets, protect any confidential
information provided to them by any other person, and obtain ownership of all works of
authorship and inventions made by its employees, consultants and contractors and which
relate to the Company business. All founders, key employees and any other employees
involved in the development of software for the Company have signed confidentiality and
invention assignment agreements with the Company.
12
(x) No Undisclosed Relationships. No relationship, direct or indirect, exists between or
among the Company or any of its subsidiaries, on the one hand, and the directors, officers,
stockholders, customers, suppliers or other affiliates of the Company or any of its subsidiaries,
on the other, that is required by the Securities Act to be described in the Registration Statement
and the Prospectus and that is not so described in each of such documents and in the Time of Sale
Information.
(y) Investment Company Act. Neither the Company nor any of its subsidiaries is, and after
giving effect to the offering and sale of the Securities and the application of the proceeds
thereof as described in the Registration Statement, the Time of Sale Information and the Prospectus
none of them will be, an investment company or an entity controlled by an investment company
within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations
of the Commission thereunder.
(z) Taxes. The Company and its subsidiaries have paid all federal, state, local and foreign
taxes and filed all tax returns required to be paid or filed through the date hereof; and except as
otherwise disclosed in each of the Registration Statement, the Time of Sale Information and the
Prospectus, there is no tax deficiency that has been, or could reasonably be expected to be,
asserted against the Company or any of its subsidiaries or any of their respective properties or
assets.
(aa) Licenses and Permits. The Company and its subsidiaries possess all licenses,
certificates, permits and other authorizations issued by, and have made all declarations and
filings with, the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or the
conduct of their respective businesses as described in each of the Registration Statement, the Time
of Sale Information and the Prospectus, except where the failure to possess or make the same would
not, individually or in the aggregate, have a Material Adverse Effect; and except as described in
each of the Registration Statement, the Time of Sale Information and the Prospectus, neither the
Company nor any of its subsidiaries has received notice of any revocation or modification of any
such license, certificate,
permit or authorization or has any reason to believe that any such license, certificate, permit or
authorization will not be renewed in the ordinary course.
(bb) No Labor Disputes. No labor disturbance by or dispute with employees of the Company or
any of its subsidiaries exists or, to the knowledge of the Company, is contemplated or threatened
and the Company is not aware of any existing or imminent labor disturbance by, or dispute with, the
employees of any of its or its subsidiaries principal suppliers, contractors or customers, except
as would not have a Material Adverse Effect.
(cc) Compliance With Environmental Laws. (i) The Company and its subsidiaries (A) are, and at
all prior times were, in compliance with any and all applicable federal, state, local and foreign
laws, rules, regulations, requirements, decisions and orders relating to the protection of human
health and safety, the environment, natural resources or hazardous or toxic substances or wastes,
pollutants or contaminants (collectively, Environmental Laws); (B) have received and are in
compliance with all permits, licenses, certificates or other authorizations or approvals required
of them under applicable Environmental Laws to conduct their respective businesses;
13
and (C) have
not received notice of any actual or potential liability under or relating to any Environmental
Laws, including for the investigation or remediation of any disposal or release of hazardous or
toxic substances or wastes, pollutants or contaminants, and have no knowledge of any event or
condition that would reasonably be expected to result in any such notice, (ii) there are no costs
or liabilities associated with Environmental Laws of or relating to the Company or its
subsidiaries, except in the case of each of (cc)(A) and (cc)(B) above, for any such failure to
comply, or failure to receive required permits, licenses or approvals, or cost or liability, as
would not, individually or in the aggregate, have a Material Adverse Effect; and (iii) except as
described in each of the Time of Sale Information and the Prospectus, (A) there are no proceedings
that are pending, or that are known to be contemplated, against the Company or any of its
subsidiaries under any Environmental Laws in which a governmental entity is also a party, other
than such proceedings regarding which it is reasonably believed no monetary sanctions of $100,000
or more will be imposed, (B) the Company and its subsidiaries are not aware of any issues regarding
compliance with Environmental Laws, or liabilities or other obligations under Environmental Laws or
concerning hazardous or toxic substances or wastes, pollutants or contaminants, that could
reasonably be expected to have a material effect on the capital expenditures, earnings or
competitive position of the Company and its subsidiaries, and (C) none of the Company and its
subsidiaries anticipates material capital expenditures relating to any Environmental Laws.
(dd) Compliance With ERISA. (i) Each employee benefit plan, within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended (ERISA), for which the
Company or any member of its Controlled Group (defined as any organization which is a member of a
controlled group of corporations within the meaning of Section 414 of the Code) would have any
liability (each, a Plan) has been maintained in compliance with its terms and the requirements of
any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the
Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of
the Code, has occurred with respect to any Plan excluding transactions effected pursuant to a
statutory or administrative exemption; (iii) for each Plan that is subject to the funding rules of
Section 412 of the Code or Section 302 of ERISA, no
accumulated funding deficiency as defined in Section 412 of the Code, whether or not waived, has
occurred or is reasonably expected to occur; (iv) the fair market value of the assets of each Plan
exceeds the present value of all benefits accrued under such Plan (determined based on those
assumptions used to fund such Plan); (v) no reportable event (within the meaning of Section
4043(c) of ERISA) has occurred or is reasonably expected to occur; and (vi) neither the Company nor
any member of its Controlled Group has incurred, nor reasonably expects to incur, any liability
under Title IV of ERISA (other than contributions to a Plan or premiums to the Pension Benefit
Guaranty Corporation, in the ordinary course and without default) in respect of a Plan (including a
multiemployer plan, within the meaning of Section 4001(a)(3) of ERISA).
(ee) Disclosure Controls. The Company maintains an effective system of disclosure controls
and procedures (as defined in Rule 13a-15(e) of the Exchange Act) that is designed to ensure that
information required to be disclosed by the Company in reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the Commissions rules and forms, including controls and procedures designed to ensure that such
information is accumulated and communicated to the Companys
14
management as appropriate to allow
timely decisions regarding required disclosure. The Company has carried out evaluations of the
effectiveness of its disclosure controls and procedures as required by Rule 13a-15 of the Exchange
Act.
(ff) Accounting Controls. The Company maintains a system of internal control over financial
reporting (as defined in Rule 13a-15(f) of the Exchange Act) that complies with the requirements
of the Exchange Act and has been designed by, or under the supervision of, its principal executive
and principal financial officers, or persons performing similar functions, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP, including, but not limited to internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with managements general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
asset accountability; (iii) access to assets is permitted only in accordance with managements
general or specific authorization; and (iv) 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 Registration Statement, the Time of Sale
Information and the Prospectus, there are no material weaknesses or significant deficiencies in the
Companys internal controls over financial reporting.
(gg) No Unlawful Payments. Neither the Company nor any of its subsidiaries nor, to the
knowledge of the Company, any director, officer, agent, employee or other person associated with or
acting on behalf of the Company or any of its subsidiaries has (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (iii) violated or is in violation of any provision of
the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment.
(hh) Insurance. The Company and its subsidiaries have insurance covering their respective
properties, operations, personnel and businesses, including business interruption insurance, which
insurance is in amounts and insures against such losses and risks as the Company believes are
adequate to protect the Company and its subsidiaries and their respective businesses; and neither
the Company nor any of its subsidiaries has (i) received notice from any insurer or agent of such
insurer that capital improvements or other expenditures are required or necessary to be made in
order to continue such insurance or (ii) any 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 at
reasonable cost from similar insurers as may be necessary to continue its business.
(ii) Compliance with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or
enforced by any governmental agency (collectively, the Money Laundering Laws) and no action, suit
or proceeding by or before any court or governmental agency,
15
authority or body or any arbitrator
involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is
pending or, to the knowledge of the Company, threatened.
(jj) Compliance with OFAC. None of the Company, any of its subsidiaries or, to the knowledge
of the Company, any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Department of the Treasury (OFAC); and the Company will not directly
or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner or other person or
entity, for the purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.
(kk) No Restrictions on Subsidiaries. Except as set forth in each of the Registration
Statement, the Time of Sale Information and the Prospectus, no subsidiary of the Company is
currently prohibited, directly or indirectly, under any agreement or other instrument to which it
is a party or is subject, from paying any dividends to the Company, from making any other
distribution on such subsidiarys capital stock, from repaying to the Company any loans or advances
to such subsidiary from the Company or from transferring any of such subsidiarys properties or
assets to the Company or any other subsidiary of the Company.
(ll) No Brokers Fees. Neither the Company nor any of its subsidiaries is a party to any
contract, agreement or understanding with any person (other than the Transaction Documents) that
would give rise to a valid claim against the Company or any of its subsidiaries or any Underwriter
for a brokerage commission, finders fee or like payment in connection with the offering and sale
of the Securities.
(nn) No Registration Rights. No person has the right to require the Company or any of its
subsidiaries to register any securities for sale under the Securities Act by reason of the filing
of the Registration Statement with the Commission or the issuance and sale of the Securities.
(oo) No Stabilization. The Company has not taken, directly or indirectly, any action designed
to or that could reasonably be expected to cause or result in any stabilization or manipulation of
the price of the Securities.
(pp) Margin Rules. Neither the issuance, sale and delivery of the Securities nor the
application of the proceeds thereof by the Company as described in the Registration Statement, the
Time of Sale Information and the Prospectus will violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System or any other regulation of such Board of Governors.
(qq) Forward-Looking Statements. No forward-looking statement (within the meaning of Section
27A of the Securities Act and Section 21E of the Exchange Act) contained in any of the Registration
Statement, the Time of Sale Information and the Prospectus has been made or reaffirmed without a
reasonable basis or has been disclosed other than in good faith.
(rr) Statistical and Market Data. Nothing has come to the attention of the Company that has
caused the Company to believe that the statistical and market-related data included or
16
incorporated
by reference in the Registration Statement, the Time of Sale Information and the Prospectus is not
based on or derived from sources that are reliable and accurate in all material respects.
(ss) Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or any
of the Companys directors or officers, in their capacities as such, to comply in all material
respects with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated in connection therewith, including Section 402 related to loans and Sections 302 and
906 related to certifications.
(tt) Status under the Securities Act. The Company is not an ineligible issuer as defined
under the Securities Act, in each case at the times specified in the Securities Act in connection
with the offering of the Securities. The Company has paid the registration fee for this offering
pursuant to Rule 457 under the Securities Act.
4. Further Agreements of the Company. The Company covenants and agrees with each
Underwriter that:
(a) Required Filings. The Company will file the final Prospectus with the Commission within
the time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the Securities Act,
will file any Issuer Free Writing Prospectus (including the term sheet in the form of Annex C
hereto) to the extent required by Rule 433 under the Securities Act; and will file promptly all
reports and any definitive proxy or information statements required to be filed by the Company with
the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the
date of the Prospectus and for so long as the delivery of a
prospectus is required in connection with the offering or sale of the Securities; and the Company
will furnish copies of the Prospectus and each Issuer Free Writing Prospectus (to the extent not
previously delivered) to the Underwriters in New York City prior to 10:00 A.M., New York City time,
on the Business Day next succeeding the date of this Agreement in such quantities as the
Representatives may reasonably request.
(b) Delivery of Copies. The Company will deliver, without charge, (i) to the Representatives,
two signed copies of the Registration Statement as originally filed and each amendment thereto, in
each case including all exhibits and consents filed therewith and documents incorporated by
reference therein; and (ii) to each Underwriter (A) a conformed copy of the Registration Statement
as originally filed and each amendment thereto, in each case including all exhibits and consents
filed therewith and (B) during the Prospectus Delivery Period (as defined below), as many copies of
the Prospectus (including all amendments and supplements thereto and documents incorporated by
reference therein) and each Issuer Free Writing Prospectus as the Representatives may reasonably
request. As used herein, the term Prospectus Delivery Period means such period of time after the
first date of the public offering of the Securities as in the opinion of counsel for the
Underwriters a prospectus relating to the Securities is required by law to be delivered (or
required to be delivered but for Rule 172 under the Securities Act) in connection with sales of the
Securities by any Underwriter or dealer.
17
(c) Amendments or Supplements, Issuer Free Writing Prospectuses. Before preparing, using,
authorizing, approving, referring to or filing any Issuer Free Writing Prospectus, and before
filing any amendment or supplement to the Registration Statement or the Prospectus, whether before
or after the time that the Registration Statement becomes effective, the Company will furnish to
the Representatives and counsel for the Underwriters a copy of the proposed Issuer Free Writing
Prospectus, amendment or supplement for review and will not prepare, use, authorize, approve, refer
to or file any such Issuer Free Writing Prospectus or file any such proposed amendment or
supplement to which the Representatives reasonably object.
(d) Notice to the Representatives. The Company will advise the Representatives promptly, and
confirm such advice in writing, (i) when the Registration Statement has become effective; (ii) when
any amendment to the Registration Statement has been filed or becomes effective; (iii) when any
supplement to the Prospectus or any Issuer Free Writing Prospectus or any amendment to the
Prospectus has been filed; (iv) of any request by the Commission for any amendment to the
Registration Statement or any amendment or supplement to the Prospectus or the receipt of any
comments from the Commission relating to the Registration Statement or any other request by the
Commission for any additional information; (v) of the issuance by the Commission of any order
suspending the effectiveness of the Registration Statement or preventing or suspending the use of
any Preliminary Prospectus or the Prospectus or the initiation or threatening of any proceeding for
that purpose or pursuant to Section 8A of the Securities Act; (vi) of the occurrence of any event
within the Prospectus Delivery Period as a result of which the Prospectus, the Time of Sale
Information or any Issuer Free Writing Prospectus as then amended or supplemented would include 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 existing when the Prospectus, the Time of
Sale Information or any such Issuer Free Writing Prospectus is
delivered to a purchaser, not misleading; and (vii) of the receipt by the Company of any notice
with respect to any suspension of the qualification of the Securities for offer and sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose; and the Company
will use its reasonable efforts to prevent the issuance of any such order suspending the
effectiveness of the Registration Statement, preventing or suspending the use of any Preliminary
Prospectus or the Prospectus or suspending any such qualification of the Securities and, if any
such order is issued, will use its reasonable efforts to obtain as soon as possible the withdrawal
thereof.
(e) Ongoing Compliance. (1) If during the Prospectus Delivery Period (i) any event shall occur
or condition shall exist as a result of which the Prospectus as then amended or supplemented would
include any untrue statement of a material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the
circumstances existing when the Prospectus is delivered to a purchaser, not misleading or (ii) it
is necessary to amend or supplement the Prospectus to comply with law, the Company will immediately
notify the Underwriters thereof and forthwith prepare and, subject to paragraph (c) above, file
with the Commission and furnish to the Underwriters and to such dealers as the Representatives may
designate, such amendments or supplements to the Prospectus as may be necessary so that the
statements in the Prospectus as so amended or supplemented will not, in the light of the
circumstances existing when the Prospectus is delivered to a purchaser, be misleading or so that
the Prospectus will comply with law and (2) if at any time prior to the
18
Closing Date (i) any event
shall occur or condition shall exist as a result of which the Time of Sale Information as then
amended or supplemented would 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,
not misleading or (ii) it is necessary to amend or supplement the Time of Sale Information to
comply with law, the Company will immediately notify the Underwriters thereof and forthwith prepare
and, subject to paragraph (c) above, file with the Commission (to the extent required) and furnish
to the Underwriters and to such dealers as the Representatives may designate, such amendments or
supplements to the Time of Sale Information as may be necessary so that the statements in the Time
of Sale Information as so amended or supplemented will not, in the light of the circumstances, be
misleading or so that the Time of Sale Information will comply with law.
(f) Blue Sky Compliance. The Company will qualify the Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions as the Representatives shall reasonably request
and will continue such qualifications in effect so long as required for distribution of the
Securities; provided that the Company shall not be required to (i) qualify as a foreign
corporation or other entity or as a dealer in securities in any such jurisdiction where it would
not otherwise be required to so qualify, (ii) file any general consent to service of process in any
such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not
otherwise so subject.
(g) Earning Statement. The Company will make generally available to its security holders and
the Representatives as soon as practicable an earning statement that satisfies the provisions of
Section 11(a) of the Securities Act and Rule 158 of the Commission promulgated thereunder covering
a period of at least twelve months beginning with the first fiscal quarter of
the Company occurring after the effective date (as defined in Rule 158) of the Registration
Statement.
(h) Clear Market. Without the prior written consent of the Representatives, the Company will
not, during the period ending 90 days after the date of the Prospectus, (i) offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly
or indirectly, any shares of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock, (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of the Common Stock,
(iii) file with the Commission a registration statement under the Securities Act relating to any
additional shares of its Common Stock or securities convertible into, or exchangeable for, any
shares of its Common Stock, or publicly disclose the intention to effect any transaction described
in clause (i), (ii) or (iii), whether any such transaction described in clause (i) or (ii) above is
to be settled by delivery of Common Stock or such other securities, in cash or otherwise; provided
that the foregoing shall not apply to (A) the sale of the Securities under this Agreement or the
issuance of the Underlying Securities, (B) the grant by the Company of employee or director stock
options in the ordinary course of business, the issuance by the Company of any shares of Common
Stock upon the exercise of an option or warrant or the conversion of a security outstanding on the
date hereof or (C) the filing of any registration statement in respect of the Securities and the
Underlying Securities. Notwithstanding the
19
foregoing, if (1) during the last 17 days of the 90-day
restricted period, the Company issues an earnings release or material news or a material event
relating to the Company occurs; or (2) prior to the expiration of the 90-day restricted period, the
Company announces that it will release earnings results during the 16-day period beginning on the
last day of the 90-day period, the restrictions imposed by this Agreement shall continue to apply
until the expiration of the 18-day period beginning on the issuance of the earnings release or the
occurrence of the material news or material event.
(i) Use of Proceeds. The Company will apply the net proceeds from the sale of the Securities
as described in the Registration Statement, the Time of Sale Information and the Prospectus under
the heading Use of proceeds. In addition and not in limitation of the foregoing, the Company
shall, immediately upon receipt of the net proceeds from the sale of the Securities, pay off all
principal of and interest on each loan outstanding under the Credit Agreement dated as of October
27, 2006 among the Company, the Guarantors and the Lenders (as such terms are defined therein), UBS
Securities LLC, Bank of America, N.A., Comerica Bank, Silicon Valley Bank, JPMorgan Chase Bank,
N.A., UBS Loan Finance LLC and UBS AG, Stamford Branch (the Credit Agreement), pay in full all
other expenses or amounts payable under the Credit Agreement and terminate all commitments and
letters of credit under the Credit Agreement.
(j) The Company shall maintain a program under which its executive officers and directors may
sell shares of Common Stock pursuant to the exemption under clause (c) of the second paragraph of
the lock-up letters described in Section 6(l) hereof pursuant to any contract, instruction or plan
complying with Rule 10b5-1 under the Exchange Act. Such program shall be
reasonably designed and enforced by the Company to ensure that such officers and directors sell no
more than an aggregate of 400,000 shares of Common Stock during the period that such lock-up
letters are in effect. If at any time the Company has knowledge that greater than 400,000 shares of
Common Stock have been sold by such officers and directors in violation of such lock-up agreements
or this Agreement, the Company shall immediately notify the Representatives and take all reasonably
necessary actions to prevent any such further sales.
(k) Underlying Securities. The Company will reserve and keep available at all times, free of
pre-emptive rights, shares of Common Stock for the purpose of enabling the Company to satisfy all
obligations to issue the Underlying Securities upon conversion of the Securities. The Company will
use its best efforts to cause the Underlying Securities to be listed on the Nasdaq.
(l) No Stabilization. The Company will not take, directly or indirectly, any action designed
to or that could reasonably be expected to cause or result in any stabilization or manipulation of
the price of the Securities, and will not take any action prohibited by Regulation M under the
Exchange Act, in connection with the distribution of the Securities contemplated hereby.
(m) Record Retention. The Company will, pursuant to reasonable procedures developed in good
faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the Commission
in accordance with Rule 433 under the Securities Act.
20
5. Certain Agreements of the Underwriters. Each Underwriter hereby represents and
agrees that:
(a) It has not and will not use, authorize use of, refer to, or participate in the planning
for use of, any free writing prospectus, as defined in Rule 405 under the Securities Act (which
term includes use of any written information furnished to the Commission by the Company and not
incorporated by reference into the Registration Statement and any press release issued by the
Company) other than (i) a free writing prospectus that, solely as a result of use by such
Underwriter, would not trigger an obligation to file such free writing prospectus with the
Commission pursuant to Rule 433, (ii) any Issuer Free Writing Prospectus listed on Annex B or
prepared pursuant to Section 3(c) or Section 4(c) above (including any electronic road show), or
(iii) any free writing prospectus prepared by such Underwriter and approved by the Company in
advance in writing (each such free writing prospectus referred to in clauses (i) or (iii), an
Underwriter Free Writing Prospectus). Notwithstanding the foregoing, the Underwriters may use a
term sheet substantially in the form of Annex C hereto without the consent of the Company.
(b) It is not subject to any pending proceeding under Section 8A of the Securities Act with
respect to the offering (and will promptly notify the Company if any such proceeding against it is
initiated during the Prospectus Delivery Period).
6. Conditions of Underwriters Obligations. The obligation of each Underwriter to
purchase the Firm Securities on the Closing Date or Additional Securities on an Additional Closing
Date, as the case may be as provided herein is subject to the performance by the
Company of its covenants and other obligations hereunder and to the following additional
conditions:
(a) Registration Compliance; No Stop Order. No order suspending the effectiveness of the
Registration Statement shall be in effect, and no proceeding for such purpose or pursuant to
Section 8A under the Securities Act shall be pending before or threatened by the Commission; the
Prospectus and each Issuer Free Writing Prospectus shall have been timely filed with the Commission
under the Securities Act (in the case of an Issuer Free Writing Prospectus, to the extent required
by Rule 433 under the Securities Act) and in accordance with Section 4(a) hereof; and all requests
by the Commission for additional information shall have been complied with to the reasonable
satisfaction of the Representatives.
(b) Representations and Warranties. The representations and warranties of the Company
contained herein shall be true and correct on the date hereof and on and as of the Closing Date or
any Additional Closing Date, as the case may be; and the statements of the Company and its officers
made in any certificates delivered pursuant to this Agreement shall be true and correct on and as
of the Closing Date or any Additional Closing Date, as the case may be.
(c) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the execution and
delivery of this Agreement, (i) no downgrading shall have occurred in the rating accorded the
Securities or any other debt securities or preferred stock issued or guaranteed by the
21
Company or
any of its subsidiaries by any nationally recognized statistical rating organization, as such
term is defined by the Commission for purposes of Rule 436(g)(2) under the Securities Act, and (ii)
no such organization shall have publicly announced that it has under surveillance or review, or has
changed its outlook with respect to, its rating of the Securities or of any other debt securities
or preferred stock issued or guaranteed by the Company or any of its subsidiaries (other than an
announcement with positive implications of a possible upgrading).
(d) No Material Adverse Change. No material change in the capital stock or long term debt of
the Company and no event or condition of a type described in Section 3(g) hereof shall have
occurred or shall exist, which change, event or condition is not described in each of the Time of
Sale Information (excluding any amendment or supplement thereto) and the Prospectus (excluding any
amendment or supplement thereto) and the effect of which in the judgment of the Representatives
makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the
Securities on the Closing Date or the Additional Closing Date, as the case may be, on the terms and
in the manner contemplated by this Agreement, the Time of Sale Information and the Prospectus.
(e) Officers Certificate. The Representatives shall have received on and as of the Closing
Date a certificate of the chief financial officer or chief accounting officer of the Company who
has specific knowledge of the Companys financial matters and is satisfactory to the Underwriters
(i) confirming that such officer has carefully reviewed the Registration Statement, the Time of
Sale Information and the Prospectus and, to the knowledge of such officer, the representations set
forth in Sections 3(b) and 3(d) hereof are true and correct, (ii)
confirming that the other representations and warranties of the Company in this Agreement are true
and correct and that the Company has complied with all agreements and satisfied all conditions on
its part to be performed or satisfied hereunder at or prior to the Closing Date and (iii) to the
effect set forth in paragraphs (c) and (d) above.
(f) Comfort Letters. On the date of this Agreement and on the Closing Date, KPMG LLP shall
have furnished to the Representatives, at the request of the Company, letters, dated the respective
dates of delivery thereof and addressed to the Underwriters, in form and substance reasonably
satisfactory to the Representatives, containing statements and information of the type customarily
included in accountants comfort letters to underwriters with respect to the financial statements
and certain financial information contained or incorporated by reference in the Registration
Statement, the Time of Sale Information and the Prospectus; provided, that the letter delivered on
the Closing Date shall use a cut-off date no more than three Business Days prior to the Closing
Date.
(g) Opinion and 10b-5 Statement of Counsel for the Company. Greenberg Traurig, LLP, counsel
for the Company, shall have furnished to the Representatives, at the request of the Company, their
written opinion and 10b-5 statement, dated the Closing Date or the Additional Closing Date, as the
case may be, and addressed to the Underwriters, in form and substance reasonably satisfactory to
the Representatives, to the effect set forth in Annex A-1 hereto. [], Chinese counsel for the
Company, shall have furnished to the Representatives, at the request of the Company, their written
opinion, dated the Closing Date or the Additional Closing Date, as
22
the case may be, and addressed
to the Underwriters, in form and substance reasonably satisfactory to the Representatives, to the
effect set forth in Annex A-2 hereto.
(h) Opinion and 10b-5 Statement of Counsel for the Underwriters. The Representatives shall
have received on and as of the Closing Date or the Additional Closing Date, as the case may be, an
opinion and 10b-5 statement of Davis Polk & Wardwell, counsel for the Underwriters, with respect to
such matters as the Representatives may reasonably request, and such counsel shall have received
such documents and information as they may reasonably request to enable them to pass upon such
matters.
(i) No Legal Impediment to Issuance. No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, adopted or issued by any federal, state or foreign
governmental or regulatory authority that would, as of the Closing Date or the Additional Closing
Date, as the case may be, prevent the issuance or sale of the Securities; and no injunction or
order of any federal, state or foreign court shall have been issued that would, as of the Closing
Date or the Additional Closing Date, as the case may be, prevent the issuance or sale of the
Securities.
(j) Good Standing. The Representatives shall have received on and as of the Closing Date
satisfactory evidence of the good standing of the Company and its subsidiaries in their respective
jurisdictions of organization and their good standing as foreign entities in such other
jurisdictions as the Representatives may reasonably request, in each case in writing or any
standard form of telecommunication from the appropriate governmental authorities of such
jurisdictions.
(l) Lock-up Agreements. The lock-up agreements, each substantially in the form of Exhibit A
hereto, between you and the officers and directors of the Company relating to sales and certain
other dispositions of shares of Stock or certain other securities, delivered to you on or before
the date hereof, shall be full force and effect on the Closing Date or Additional Closing Date, as
the case may be.
(m) Listing. An application for the listing of the Underlying Securities shall have been
submitted to the Nasdaq.
(n) Additional Documents. On or prior to the Closing Date or the Additional Closing Date, as
the case may be, the Company shall have furnished to the Representatives such further certificates
and documents as the Representatives may reasonably request.
All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form
and substance reasonably satisfactory to counsel for the Underwriters.
7. Indemnification and Contribution.
(a) Indemnification of the Underwriters. The Company agrees to indemnify and hold harmless
each Underwriter, its affiliates, directors and officers and each person, if any, who controls such
Underwriter within the meaning of Section 15 of the Securities Act or Section 20
23
of the Exchange
Act, from and against any and all losses, claims, damages and liabilities (including, without
limitation, legal fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that
arise out of, or are based upon, (i) any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or caused by any omission or alleged omission to state
therein a material fact required to be stated therein or necessary in order to make the statements
therein, not misleading, (ii) or any untrue statement or alleged untrue statement of a material
fact contained in the Prospectus (or any amendment or supplement thereto), any Issuer Free Writing
Prospectus or any Time of Sale Information (including any Time of Sale Information that has
subsequently been amended), or caused by any omission or alleged omission to state therein 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 except insofar as such losses, claims,
damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any information relating
to any Underwriter furnished to the Company in writing by such Underwriter expressly 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 subsection (b) below.
(b) Indemnification of the Company. Each Underwriter agrees, severally and not jointly, to
indemnify and hold harmless the Company, its directors, its officers who signed the Registration
Statement and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the
indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or
liabilities that arise out of, or are based upon, any untrue statement or omission or alleged
untrue statement or omission made in reliance upon and in conformity with any information relating
to such Underwriter furnished to the Company in writing by such Underwriter expressly for use in
the Registration Statement, the Prospectus (or any amendment or supplement thereto), any Issuer
Free Writing Prospectus or any Time of Sale Information, it being understood and agreed that the
only such information furnished by any Underwriter consists of the following information in the
Prospectus furnished on behalf of each Underwriter: [(i) the names of the Underwriters which appear
on the front cover and back cover of the Prospectus; (ii) the names of the Underwriters which
appear under the caption Plan of distribution in the Prospectus; (iii) the information contained
in the ninth paragraph under the caption Plan of distribution in the Prospectus (for the
avoidance of doubt, such paragraph begins with the words We have been advised that the
underwriters...); and (v) the paragraph concerning over-allotment, stabilizing transactions and
syndicate covering transactions under the caption Plan of distribution.] [update as necessary]
(c) Notice and Procedures. If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against any person in
respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such
person (the Indemnified Person) shall promptly notify the person against whom such
indemnification may be sought (the Indemnifying Person) in writing; provided that the
failure to notify the Indemnifying Person shall not relieve it from any liability that it may have
under this Section 7 except to the extent that it has been materially prejudiced (through the
forfeiture
24
of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have to an Indemnified Person otherwise than under this Section 7. If any
such proceeding shall be brought or asserted against an Indemnified Person and it shall have
notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably
satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified
Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and any others
entitled to indemnification pursuant to Section 7 that the Indemnifying Person may designate in
such proceeding and shall pay the reasonable fees and expenses of such proceeding and shall pay the
reasonable fees and expenses of counsel related to such proceeding, as incurred. In any such
proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there
may be legal defenses available to it that are different from or in addition to those available to
the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interest
between them. It is understood and agreed that the Indemnifying Person shall not, in connection
with any proceeding or related proceeding in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local counsel) for all
Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are incurred.
Any such separate firm for any Underwriter, its affiliates, directors and officers and any control
persons of such Underwriter shall be designated in writing by such Underwriter and any such
separate firm for the Company, its directors, its officers who signed the Registration Statement
and any control persons of the Company shall be designated in writing by the Company. The
Indemnifying Person shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final judgment for the
plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any
loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing
sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for reasonable fees and expenses of counsel as contemplated by
this paragraph, the Indemnifying Person shall be liable for any settlement of any proceeding
effected without its written consent if (i) such settlement is entered into more than 30 days after
receipt by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the date of such
settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person,
effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (x) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from
all liability on claims that are the subject matter of such proceeding and (y) does not include any
statement as to or any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person.
25
(d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of
indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by
such Indemnified Person as a result of such losses, claims, damages or liabilities (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) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) 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
respective proportions as the net proceeds (before deducting expenses) received by the Company from
the sale of the Securities and the total underwriting discounts and commissions received by the
Underwriters in connection therewith, in each case as set forth in the table on the cover of the
Prospectus, bear to the aggregate offering price of the Securities. The relative fault of the
Company, on the one hand, and the Underwriters, on the other, shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company or by the Underwriters and the parties relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.
(e) Limitation on Liability. The Company and the Underwriters agree that it would not be just
and equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation or by any other method of allocation that does not take account of the
equitable considerations referred to in paragraph (d) above. The amount paid or payable by an
Indemnified Person as a result of the losses, claims, damages and liabilities referred to in
paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses incurred by such Indemnified Person in connection with any such action or
claim. Notwithstanding the provisions of this Section 7, in no event shall an Underwriter be
required to contribute any amount in excess of the amount by which the total underwriting discounts
and commissions received by such Underwriter with respect to the offering of the Securities 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 to contribute pursuant to this Section 7 are several in proportion to
their respective purchase obligations hereunder and not joint.
(f) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any Indemnified Person
at law or in equity.
26
8. Effectiveness of Agreement. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.
9. Termination. This Agreement may be terminated in the absolute discretion of the
Representatives, by notice to the Company, if after the execution and delivery of this Agreement
and prior to the Closing Date or, in the case of the Additional Securities, prior to the Additional
Closing Date (i) trading generally shall have been suspended or materially limited on or by the
Nasdaq Stock Market; (ii) trading of any securities issued or guaranteed by the Company shall have
been suspended on any exchange or in any over-the-counter market; (iii) a general moratorium on
commercial banking activities shall have been declared by federal or New York State authorities; or
(iv) there shall have occurred any outbreak or escalation of hostilities or any change in financial
markets or any calamity or crisis, either within or outside the United States, that, in the
judgment of the Representatives, is material and adverse and makes it impracticable or inadvisable
to proceed with the offering, sale or delivery of the Securities on the Closing Date or the
Additional Closing Date, as the case may be, on the terms and in the manner contemplated by this
Agreement, the Time of Sale Information and the Prospectus.
10. Defaulting Underwriter. (a) If, on the Closing Date or the Additional Closing
Date, as the case may be, either Underwriter defaults on its obligation to purchase the Securities
that it has agreed to purchase hereunder on such date, the non-defaulting Underwriter may in its
discretion arrange for the purchase of such Securities by other persons reasonably satisfactory to
the
Company on the terms contained in this Agreement. If, within 36 hours after any such default by
either Underwriter, the non-defaulting Underwriter does not arrange for the purchase of such
Securities, then the Company shall be entitled to a further period of 36 hours within which to
procure other persons reasonably satisfactory to the non-defaulting Underwriter to purchase such
Securities on such terms. If other persons become obligated or agree to purchase the Securities of
a defaulting Underwriter, either the non-defaulting Underwriter or the Company may postpone the
Closing Date or the Additional Closing Date, as the case may be, for up to five full Business Days
in order to effect any changes that in the opinion of counsel for the Company or counsel for the
Underwriter may be necessary in the Registration Statement and the Prospectus or in any other
document or arrangement, and the Company agrees to promptly prepare any amendment or supplement to
the Registration Statement and the Prospectus that effects any such changes. As used in this
Agreement, the term Underwriter includes, for all purposes of this Agreement unless the context
otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this Section 10,
purchases Securities that a defaulting Underwriter agreed but failed to purchase.
(b) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter by the non-defaulting Underwriter and the Company as provided in paragraph
(a) above, the aggregate principal amount of such Securities that remains unpurchased on the
Closing Date or the Additional Closing Date, as the case may be does not exceed one-eleventh of the
aggregate principal amount of all the Securities to be purchased on such date, then the Company
shall have the right to require each non-defaulting Underwriter to purchase the principal amount of
Securities that such Underwriter agreed to purchase hereunder plus the Securities of the defaulting
Underwriter for which such arrangements have not been made.
27
(c) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Underwriter by the non-defaulting Underwriter and the Company as provided in paragraph
(a) above, the aggregate principal amount of such Securities that remain unpurchased on the Closing
Date or the Additional Closing Date, as the case may be, exceeds one-eleventh of the aggregate
principal amount of all the Securities to be purchased on such date, or if the Company shall not
exercise the right described in paragraph (b) above, then this Agreement or, with respect to any
Additional Closing Date, the obligation of the Underwriter to purchase Securities on the Additional
Closing Date, as the case may be, shall terminate without liability on the part of the
non-defaulting Underwriter. Any termination of this Agreement pursuant to this Section 10 shall be
without liability on the part of the Company, except that the Company will continue to be liable
for the payment of expenses as set forth in Section 11 hereof and except that the provisions of
Section 7 hereof shall not terminate and shall remain in effect.
(d) Nothing contained herein shall relieve a defaulting Underwriter of any liability it may
have to the Company or any non-defaulting Underwriter for damages caused by its default.
11. Payment of Expenses. (a) Whether or not the transactions contemplated by this
Agreement are consummated or this Agreement is terminated, the Company will pay or cause to be paid
all costs and expenses incident to the performance of its obligations hereunder, including without
limitation, (i) the costs incident to the authorization, issuance, sale, preparation and delivery
of the Securities and any taxes payable in that connection; (ii) the costs incident to the
preparation, printing and filing under the Securities Act of the Registration Statement, the
Preliminary Prospectus, any Issuer Free Writing Prospectus, any Time of Sale Information and the
Prospectus (including all exhibits, amendments and supplements thereto) and the distribution
thereof; (iii) the costs of reproducing and distributing each of the Transaction Documents; (iv)
the fees and expenses of the Companys counsel and independent accountants; (v) the fees and
expenses incurred in connection with the registration or qualification and determination of
eligibility for investment of the Securities under the laws of such jurisdictions as the
Representatives may designate and the preparation, printing and distribution of a Blue Sky
Memorandum (including the related fees and expenses of counsel for the Underwriters not to exceed
$10,000); (vi) any fees charged by rating agencies for rating the Securities; (vii) the fees and
expenses of the Trustee and any paying agent (including related fees and expenses of any counsel to
such parties); (viii) all expenses and application fees incurred in connection with any filing
with, and clearance of the offering by, the Financial Industry Regulatory Authority, Inc.; (ix) any
fees or costs incident to listing the Underlying Securities on the Nasdaq; and (x) all expenses
incurred by the Company in connection with any road show presentation to potential investors.
(b) If (i) this Agreement is terminated pursuant to Section 9, (ii) the Company for any reason
fails to tender the Securities for delivery to the Underwriters or (iii) the Underwriters decline
to purchase the Securities for any reason permitted under this Agreement, the Company agrees to
reimburse the Underwriters for all out-of-pocket costs and expenses (including the fees and
expenses of their counsel) reasonably incurred by the Underwriters in connection with this
Agreement and the offering contemplated hereby.
12. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and the officers
28
and directors and any controlling persons referred to herein, and the affiliates referred to in
Section 7 hereof. Nothing in this Agreement is intended or shall be construed to give any other
person any legal or equitable right, remedy or claim under or in respect of this Agreement or any
provision contained herein. No purchaser of Securities from any Underwriter shall be deemed to be
a successor merely by reason of such purchase.
13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company and the Underwriters contained in this Agreement or made
by or on behalf of the Company or the Underwriters pursuant to this Agreement or any certificate
delivered pursuant hereto shall survive the delivery of and payment for the Securities and shall
remain in full force and effect, regardless of any termination of this Agreement or any
investigation made by or on behalf of the Company or the Underwriters.
14. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term affiliate has the meaning set forth in Rule 405 under the Securities
Act; and (b) the term subsidiary has the meaning set forth in Rule 405 under the Securities Act.
15. Miscellaneous. (a) Authority of the Representatives. Any action by the
Underwriters hereunder may be taken by Representatives on behalf of the Underwriters, and any such
action taken by the Representatives shall be binding upon the Underwriters.
(b) Notices. All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted and confirmed by any standard form of
telecommunication. Notices to the Underwriters shall be given to the Representatives c/o J.P.
Morgan Securities Inc., 277 Park Avenue, New York, New York 10172 (fax: (212) 622-8358); Attention:
Equity Syndicate Desk. Notices to the Company shall be given to it at TTM Technologies, Inc., 2630
South Harbor Boulevard, Santa Ana, California 92704 (fax: (714) 784-3712); Attention: Chief
Financial Officer.
(c) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.
(d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be an
original and all of which together shall constitute one and the same instrument.
(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any
consent or approval to any departure therefrom, shall in any event be effective unless the same
shall be in writing and signed by the parties hereto.
(f) Headings. The headings herein are included for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement.
29
If the foregoing is in accordance with your understanding, please indicate your acceptance of
this Agreement by signing in the space provided below.
Very truly yours, | ||||||
TTM TECHNOLOGIES, INC. | ||||||
By | ||||||
Title: |
Accepted: May [], 2008
For itself and on behalf of the
several Underwriters listed
in Schedule 1 hereto.
several Underwriters listed
in Schedule 1 hereto.
J.P. MORGAN SECURITIES INC. | ||||
By |
||||
Authorized Signatory | ||||
UBS SECURITIES LLC | ||||
By |
||||
Authorized Signatory |