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EXHIBIT 1.3
A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION BUT HAS NOT YET BECOME EFFECTIVE. NO
OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE
CAN BE RECEIVED UNTIL THE REGISTRATION STATEMENT HAS BECOME EFFECTIVE, AND ANY
SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY
KIND, AT ANY TIME PRIOR TO NOTICE OF ITS ACCEPTANCE GIVEN AFTER THE EFFECTIVE
DATE. YOUR EXECUTION HEREOF WILL INVOLVE NO OBLIGATION OR COMMITMENT OF ANY KIND
UNTIL THE REGISTRATION STATEMENT HAS BECOME EFFECTIVE.
AMERICAN EAGLE MOTORCYCLE COMPANY
SELECTED DEALERS AGREEMENT
,
Dear Sirs:
1. Mercer Partners, Inc. named as the Underwriter ("Underwriter") in the
enclosed preliminary Prospectus, proposes to offer, along with several
underwriters, on a firm commitment basis, subject to the terms and conditions
and execution of the Underwriting Agreement, 800,000 shares of common stock at
$00.00 ("Securities") of the above Company. The Securities are more particularly
described in the enclosed preliminary Prospectus, additional copies of which
will be supplied in reasonable quantities upon request. Copies of the definitive
Prospectus will be supplied after the effective date of the Registration
Statement.
2. The Underwriter is soliciting offers to buy, upon the terms and
conditions hereof, a part of the Securities from Selected Dealers, including you
who are to act as principal and who are (i) registered with the Securities and
Exchange Commission ("Commission") as broker-dealers under the Securities
Exchange Act of 1934, as amended ("1934 Act"), and members in good standing with
the National Association of Securities Dealers, Inc. ("NASD"), or (ii) dealers
or institutions with their principal place of business located outside the
United States, its territories and possessions who are not eligible for
membership in the NASD and who agree to make no sales within the United States,
its territories or possessions or to persons who are nationals thereof or
residents therein and, in making sales, to comply with the NASD's Interpretation
with Respect to Free Riding and Withholding and with Sections 2730, 2740,2420,
to the extent applicable to foreign nonmember brokers or dealers, and Section
2750 of the NASD's Rules of Fair Practice. The Securities are to be offered at a
public price of $00.00 per share. Selected Dealers will be allowed a concession
of $____ per share, except as provided below. You will be notified of the
precise amount of such concession prior to the effective date of the
Registration Statement. You may reallow not in excess of $___ per share to
dealers who meet the requirements set forth in this Section 2. This offer is
solicited subject to the issuance and delivery of the Securities and their
acceptance by the Underwriter, to the approval of legal matters by counsel and
to the terms and conditions as herein set forth.
3. Your offer to purchase may be revoked in whole or in part without
obligation or commitment of any kind by you and any time prior to acceptance and
no offer may be accepted by us and no sale can be made until after the
registration statement covering the Securities has become effective with the
Commission. Subject to the foregoing, upon execution by you of the Offer to
Purchase below and the return of same to us, you shall be deemed to have offered
to purchase the number of Securities set forth in your offer on the basis set
forth in paragraph 2 above. Any oral notice by us of acceptance of your offer
shall be immediately followed by written or telegraphic confirmation preceded or
accompanied by a copy of the Prospectus. If a contractual commitment arises
hereunder, all the terms of this Selected Dealers Agreement shall be applicable.
We may also make available to you an allotment to purchase Securities, but such
allotment shall be subject to modification or termination upon notice from us
any time prior to an
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exchange of confirmations reflecting completed transactions. All references
hereafter in this Agreement to the purchase and sale of Securities assume and
are applicable only if contractual commitments to purchase are completed in
accordance with the foregoing.
If prior to termination of this Agreement, we purchase or contract to purchase
any Securities ( or any Securities which we believe have been substituted
therefor) purchase by you from us, you hereby agree that we (i)reserve the
right not to pay such concession on any of such securities; (ii) may sell for
your account any such securities so purchased and debit or credit your account
with the loss or profit resulting from such sale; or (iii) may require you to
purchase any such Securities at a price equal to the total cost of such purchase
including commissions and transfer taxes (if any) on redelivery.
4. You agree that in reoffering said Securities, if your offer is accepted
after the effective date, you will make a bona fide public distribution of same.
You will advise us upon request of Securities purchased by you remaining unsold
and we shall have the right to repurchase such Securities upon demand at the
public offering price without paying the concession with respect to any
Securities so repurchased. Any of the Securities purchased by you pursuant to
this Agreement are to be subject to the terms hereof. Securities shall not be
offered or sold by you below the public offering price before the termination of
this Agreement.
5. Payment for Securities which you purchase is to be made, against
delivery, at the full authorized public offering price stated above, or if we
shall so advise you, at the public offering price less the dealers' selling
concession stated above, by a certified or official bank check payable to the
order of Westport resources Investment Services, Inc. in New York Clearing House
Funds. Certificate for the Securities shall be delivered as soon as practicable
after delivery instructions are received by the Underwriter.
You, by becoming a member of the Selected Dealers, agree (a) to take up
and pay for the number of Units allotted and confirmed to you, (b) not to use
any of the Securities to reduce or cover any short position you may have, (c)
upon our request, to advise us of the number of Securities purchased from us as
manager of the Selected Dealers remaining unsold by you and to resell to us any
or all of such unsold Securities at the public offering price stated above, and
(d) to make available a copy of the Prospectus to all persons who on your behalf
will solicit orders for the Securities prior to the making of such solicitations
by such persons.
6. A registration statement covering the offering has been filed with the
Securities and Exchange Commission in respect to the Securities. You will be
promptly advised when the registration statement becomes effective. Each
Selected Dealer in selling Securities pursuant hereto agrees (which agreement
shall also be for the benefit of the Company) that it will comply with the
applicable requirements of the Securities Act of 1933 and of the Securities
Exchange Act of 1934 and any applicable rules and regulations issued under said
Acts. No person is authorized by the Company or by the Underwriter to give any
information or to make any representations other than those contained in the
Prospectus in connection with the sale of the Securities. Nothing contained
herein shall render the Selected Dealers a member of the Underwriting Group or
partners with the Underwriter or with one another.
7. You will be informed by us as to the states in which we have been advised
by counsel the Securities have been qualified for sale or are exempt under the
respective securities or blue sky laws of such states, but we have not assumed
and will not assume any obligation or responsibility as to the right of any
Selected Dealer to sell Securities in any state. You agree not to sell
Securities in any other state or jurisdiction and to not sell Securities in any
state or jurisdiction unless you are qualified or licensed to sell securities in
such state or jurisdiction.
8. The Underwriter shall have full authority to take such action as it may
deem advisable in respect of all matters pertaining to the offering or arising
thereunder. The Underwriter shall not be under any liability to you, except such
as may be incurred under the Securities Act of 1933 and the rules and
regulations thereunder, except for lack of good faith and except for obligations
assumed by us in this Agreement, and no obligation on our part shall be implied
or inferred herefrom.
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9. Selected Dealers will be governed by the conditions herein set forth
until this Agreement is terminated. This Agreement will terminate when the
offering is completed. Nothing herein contained shall be deemed a commitment on
our part to sell you any Securities; such contractual commitment can only be
made in accordance with the provisions of paragraph 3 hereof.
10. You represent that you are a member in good standing of the NASD and
registered as a broker-dealer with the Commission, or that you are a foreign
broker-dealer not eligible for membership under Section 1 of the Bylaws of the
NASD who agrees to make no sales within the United States, its territories or
possessions or to persons who are nationals thereof or residents therein and, in
making sales, to comply with the NASD's interpretation with Respect to
FreeRiding and Withholding and with Sections 2730, 2740, 2420 to the extent
applicable to foreign nonmember brokers and dealers, and Section 2750 of the
NASD's Rules of Fair Practice. Your attention is called to and you agree to
comply with the following: (a) Article III, Section 1 of the Rules of Fair
Practice of the NASD and the interpretations of said Section promulgated by the
Board of Governors of the NASD including Section 2740 and the interpretation
with respect to "Free-Riding and Withholding;" (b) Section 10(b) of the 1934 Act
and Regulation M, 10b-10 of the general rules and regulations promulgated under
the 1934 Act; and (c) Rule 15c2-8 of the general rules and regulations
promulgated under the 1934 Act requiring the distribution of a preliminary
Prospectus to all persons reasonably expected to be purchasers of the Securities
from you at least 48 hours prior to the time you expect to mail confirmations.
You, as a member of the NASD, by signing this Agreement, acknowledge that you
are familiar with the cited laws and rules and agree that you will not directly
and/or indirectly violate any provisions of applicable law in connection with
your participation in the distribution of the Securities.
You, by becoming a member of the Selected Dealers represent that (a) neither you
nor any of your directors, officers, partners or "persons associated with" you
(as defined in the By-Laws of the NASD), nor to your knowledge, any "related
person" (defined by the NASD to include counsel, financial consultants and
advisors, finders, members of the selling group or distribution group, and any
other persons associated with or related to any of the foregoing) or any other
broker-dealer, (i) within the last 18 months have purchased in private
transactions, or intends before, at or within 6 months after the commencement of
the public offering of the Securities, to purchase in private transactions, any
securities of the Company or any parent, predecessor, or subsidiary thereof,
(ii) within the last 12 months had any dealings with any of the Company or the
parent, predecessor, subsidiary or controlling shareholder thereof, or (iii)
have, except as contemplated by this Agreement, any agreement, arrangement or
understanding to receive compensation in connection with (as defined by the
NASD) the distribution of the Securities.
11. In addition to compliance with the provisions of paragraph 10
hereof, you will not, until advised by us in writing or by wire that the
entire offering has been distributed and closed, bid for or purchase
Securities in the open market or otherwise make a market in the
Securities or otherwise attempt to induce others to purchase the
Securities in the open market. Nothing contained in this paragraph 11
shall, however, preclude you from acting as agent in the execution of
unsolicited orders of customers in transactions effectuated for them
through a market maker.
12. You understand that the Underwriter may in connection with the offering
engage in stabilizing transactions. If the Underwriter contracts for or
purchases in the open market in connection with such stabilization any
Securities sold to you hereunder and not effectively placed by you, the
Underwriter may charge you the Selected Dealer's concession originally allowed
you on the Securities so purchased and you agree to pay such amount to us on
demand.
13. We agree that without your consent we will not sell to any account over
which we exercise discretionary authority any of the Securities that we purchase
and which are subject to the terms of this Agreement.
14. By submitting an Offer to Purchase you confirm that you may, in
accordance with Rule 15c3-1 adopted under the 1934 Act, agree to purchase the
number of Securities you may become obligated to purchase under the provisions
of this Agreement.
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15. All communications from you should be directed to us at 2425 Post Road,
Southport, Ct. 06490 Attn: John D. Lane, Senior Vice President, (203-254-3216)
and fax (203-254-9310) (All communications from us to you shall be directed to
the address to which this letter is mailed. Any notice from us to you shall be
deemed to have been fully authorized by the Underwriter and to have been duly
given if mailed, telegraphed or telexed to you at the address to which this
letter is mailed).
Very truly yours,
Mercer Partners, Inc.
By
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(Authorized Officer)
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OFFER TO PURCHASE
The undersigned does hereby offer to purchase (subject to the right to
revoke as set forth in paragraph 3) * Securities in
accordance with the terms and conditions set forth above. We hereby acknowledge
receipt of the Prospectus referred to in the first paragraph thereof relating to
such Securities. We further state that in purchasing such Securities we have
relied upon such Prospectus and upon no other statement whatsoever, written or
oral.
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By
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(Authorized Officer)
*If a number appears here which does not correspond with what you wish to offer
to purchase, you may change the number by crossing out the number, inserting a
different number and initializing the change.
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