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EXHIBIT 1.1
SELECTED DEALERS AGREEMENT
PUBLIC OFFERING OF
1,100,000 SHARES
OFFERING PRICE: $ PER SHARE
LEISURE TIME CASINOS & RESORTS, INC..
, 1999
Xxxxxxxxx Securities, Inc., on behalf of itself and other underwriters
(the "Underwriters") for which it is the representative (the "Representative"),
has severally agreed with Leisure Time Casinos & Resorts, Inc., a Colorado
corporation (the "Company"), to purchase 1,100,000 Shares (the "Firm Shares")
and the Representative has been granted the right to purchase up to an
additional 165,000 Shares (the "Additional Shares") at its option for the sole
purpose of covering over-allotments in the sale of the Firm Shares (the Firm
Shares and Additional Shares being collectively referred to as the "Shares" or
a "Security"). The Underwriters are offering the Shares to the public at an
offering price of $ per Share. Certain other capitalized terms used herein are
defined in the Underwriting Agreement and are used herein as therein defined.
The Representative is offering the Shares to certain selected dealers
(the "Selected Dealers"), when, as and if accepted by the Representative and
subject to withdrawal, cancellation or modification of the offer without notice
and further subject to the terms of (i) the Company's current Prospectus, (ii)
the Underwriting Agreement, (iii) this Agreement, and (iv) the Representative's
instructions which may be forwarded to the Selected Dealer from time to time. A
copy of the Underwriting Agreement will be delivered to you forthwith for
inspection or copying or both, upon your request therefor. This invitation is
made by the Representative only if the Shares may be offered lawfully to
dealers in your state.
The further terms and conditions of this invitation are as follows:
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1. Acceptance of Orders. Orders received by the Representative from
the Selected Dealer will be accepted only at the price, in the amounts and on
the terms which are set forth in the Company's current Prospectus, subject to
allotment in the Representative's uncontrolled discretion. The Representative
reserves the right to reject any orders, in whole or in part.
2. Selling Concession. As a Selected Dealer, you will be allowed on
all Shares purchased by you, which the Underwriters have not repurchased or
contracted to repurchase prior to termination of this Agreement at or below the
public offering price, a concession of ___% of the full 8% Underwriting
discount, i.e., $___ per Security as shown in the Company's current Prospectus.
No selling concession will be allowed to any domestic broker-dealer who is not
a member of the National Association of Securities Dealers, Inc. (the
"Association"), or to any foreign broker-dealer eligible for membership in the
Association who is not a member of the Association. Payment of such selling
concession to you will be made only as provided in Section 4 hereof. After the
Shares are released for sale to the public, the Representative is authorized
to, and may, change the public offering price and the selling concession.
3. Reoffer of Shares. Shares purchased by you are to be bona fide
reoffered by you in conformity with this Agreement and the terms of offering
set forth in the Prospectus. You agree that you will not bid for, purchase,
attempt to induce others to purchase, or sell, directly or indirectly, any
Shares except as contemplated by this Agreement and except as a broker pursuant
to unsolicited orders. You confirm that you have complied and agree that you
will at all times comply with the provisions of Regulation M of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") applicable to this
offering. In respect of Shares sold by you and thereafter purchased by the
Representative at or below the public offering price prior to the termination
of this Agreement as described hereinafter (or such longer period as may be
necessary to cover any short position with respect to the offering), you agree
at the Representative's option either to repurchase the Shares at a price equal
to the cost thereof to the Representative, including commissions and transfer
taxes on redelivery, or to repay the Representative such part of your Selected
Dealers' concessions on such Shares as the Representative designates.
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4. Payment for Shares. Payment for the Shares purchased by you is to
be made at the net Selected Dealers' price of $_____ per Security, at the
offices of Xxxxxxxxx Securities, Inc., Xxxxx 000, 0000 Xxxxxxx Xxxxxx, Xxxxxx,
Xxxxxxxx 00000, Attention: Syndicate Department, at such time and on such date
as the Representative may designate, by certified or official bank check,
payable in clearing house funds to the order of the Representative, against
delivery of certificates for the Shares so purchased. If such payment is not
made at such time and on such date, you agree to pay the Representative
interest on such funds at the current interest rate. The Representative may in
its discretion deliver the Shares purchased by you through the facilities of
the Depository Trust Company or, if you are not a member, through your ordinary
correspondent who is a member unless you promptly give the Representative
written instructions otherwise.
5. Offering Representations. The Representative has been informed that
a Registration Statement in respect of the Shares is expected to become
effective under the Securities Act of 1933, as amended (the "Act"). You are not
authorized to give any information or to make any representations other than
those contained in the Prospectus or to act as agent for the Company or for the
undersigned when offering the Shares to the public or otherwise.
6. Blue Sky. Neither the Representative nor the Underwriters assume
any responsibility or obligations as to your right to sell the Shares in any
jurisdiction, notwithstanding any information furnished in that connection. The
Selected Dealer shall report in writing to the Representative the number of
Shares which have been sold by it in each state and the number of transactions
made in each such state. This state report shall be submitted to the
Representative as soon as possible after completion of billing, but in any
event not more than three days after the closing.
7. Dealer Undertakings. By accepting this Agreement, the Selected
Dealer in offering and selling the Shares in the Public Offering (i)
acknowledges its understanding of (a) the Conduct Rules (the "Rules") of the
Association and the interpretations of such Rules promulgated by the Board of
Governors of the Association (the "Interpretations") including, but not limited
to the Rule and Interpretation with respect to "Free-Riding and Withholding"
defined therein, (b) Rule 174 of
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the rules and regulations promulgated under the Act, (c) Regulation M
promulgated under the Exchange Act, (d) Release No. 3907 under the Act, (e)
Release No. 4150 under the Act, and (f) Sections 2730, 2740, 2420 and 2750 of
the Rules and Interpretations thereunder, and (ii) represents, warrants,
covenants and agrees that it shall comply with all applicable requirements of
the Act and the Exchange Act in addition to the specific provisions cited in
subparagraph (i) above and that it shall not violate, directly or indirectly,
any provision of applicable law in connection with its participation in the
Public Offering of the Shares.
8. Conditions of Public Offering. All sales shall be subject to
delivery by the Company of certificates evidencing the Shares against payment
therefor.
9. Failure of Order. If an order is rejected or if a payment is
received which proves insufficient or worthless, any compensation paid to the
Selected Dealer shall be returned by (i) restoration by the Representative to
the Selected Dealer of the latter's remittance or (ii) a charge against the
account of the Selected Dealer with the Representative, as the latter may elect
without notice being given of such election.
10. Additional Representations, Covenants and Warranties of Selected
Dealer. By accepting this Agreement, the Selected Dealer represents that it is
registered as a broker-dealer under the Exchange Act; is qualified to act as a
dealer in the states or the jurisdictions in which it shall offer the Shares;
is a member in good standing of the Association; and shall maintain such
registrations, qualifications and membership in full force and effect and in
good standing throughout the term of this Agreement. If the Selected Dealer is
not a member of the Association, it represents that it is a foreign dealer not
registered under the Exchange Act and agrees to make no sales within the United
States, its territories or its possessions or to persons who are citizens
thereof or residents therein, and in making any sales to comply with the
Association's Rules and Interpretations with respect to Free-Riding and
Withholding. Further, the Selected Dealer agrees to comply with all applicable
federal laws including, but not limited to, the Act and Exchange Act and the
rules and regulations of the Commission thereunder; the laws of the states or
other jurisdictions in which Shares may be offered or sold by it; and the
Constitution, Bylaws, and rules of the
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Association. Further, the Selected Dealer agrees that it will not offer or sell
the Shares in any state or jurisdiction except those in which the Shares have
been qualified or qualification is not required. The Selected Dealer
acknowledges its understanding that it shall not be entitled to any
compensation hereunder for any period during which it has been suspended or
expelled from membership in the Association.
11. Employees and other Agents of the Selected Dealer. By accepting
this Agreement, the Selected Dealer assumes full responsibility for thorough
and proper training of its employees and other agents and representatives
concerning the selling methods to be used in connection with the Public
Offering of the Shares, giving special emphasis to the principles of full and
fair disclosure to prospective investors and the prohibitions against
"Free-Riding and Withholding" as set forth in Section 2110 of the Rules and the
Interpretations thereunder.
12. Indemnification by the Company. The Company has agreed in Section
8 of the Underwriting Agreement to indemnify and hold harmless the
Underwriters, the Representative and each person if any, who controls the
Representative or any of the Underwriters within the meaning of Section 15 of
the Act or Section 20(a) of the Exchange Act against any and all loss,
liability, claim, damage, and expense whatsoever (which shall include, for all
purposes of Section 8 of the Underwriting Agreement, but not be limited to,
attorneys' fees and any and all expense whatsoever incurred in investigating,
preparing, or defending against any litigation, commenced or threatened, or any
claim whatsoever and any and all amounts paid in settlement of any claim or
litigation) as and when incurred arising out of, based upon, or in connection
with (i) any untrue statement or alleged untrue statement of a material fact
contained (A) in any Preliminary Prospectus, the Registration Statement, or the
Prospectus (as from time to time amended and supplemented), or any amendment or
supplement thereto, or (B) in any application or other document or
communication (in the Underwriting Agreement collectively called an
"application") in any jurisdiction in order to qualify the Shares under the
"blue sky" or securities laws thereof or filed with the Commission or any
securities exchange; or any omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading, or (ii) any breach of any
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representation, warranty, covenant, or agreement of the Company contained in
the Underwriting Agreement. The Representative has agreed to give the Company
an opportunity and the right to participate in the defense or preparation of
the defense of any action brought against the Representative, any Underwriter
or any controlling person thereof to enforce any such loss, claim, demand,
liability or expense. The agreement of the Company under this indemnity is
conditioned upon notice of any such action having been promptly given by the
indemnified party to the Company. Failure to notify the Company as provided in
the Underwriting Agreement shall not relieve the Company of its liability which
it may have to the Representative, the Underwriters, or any controlling person
thereof other than pursuant to Section 8(a) of the Underwriting Agreement. This
agreement is subject in all respects, especially insofar as the foregoing
description of the indemnification provisions set forth in the Underwriting
Agreement is concerned, to the terms and provisions of the Underwriting
Agreement, a copy of which will be made available for inspection or copying or
both to the Selected Dealer upon written request to the Representative
therefor. The Selected Dealer acknowledges and confirms that, by signing a
counterpart of this Agreement, it shall be deemed an agent of the Underwriters
or a "Representative" for all purposes of Section 8 of the Underwriting
Agreement, as expressly set forth therein.
13. Indemnification by the Selected Dealer. The Selected Dealer shall
indemnify and hold harmless the Company, each director of the Company, each
officer of the Company who shall have signed the Registration Statement, each
other person, if any, who controls the Company within the meaning of Section 15
of the Act or Section 20(a) of the Exchange Act, to the same extent as the
indemnity from the Company to the Underwriters in Section 8(a) of the
Underwriting Agreement, but only with respect to statements or omissions, if
any, made in any Preliminary Prospectus, the Registration Statement, or the
Prospectus (as from time to time amended and supplemented), or any amendment or
supplement thereto, or in any application, in reliance upon and in conformity
with information furnished to the Representative or the Company with respect to
the Selected Dealer by or on behalf of the Selected Dealer expressly for
inclusion in any Preliminary Prospectus, the Registration Statement, or the
Prospectus, or any amendment or
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supplement thereto, or in any application, as the case may be, or are based
upon alleged misrepresentations or omissions to state material facts in
connection with statements made by the Selected Dealer or the Selected Dealer's
employees or other agents to the Company or the Representative orally or by any
other means; provided, however, that the obligation of the Selected Dealer to
provide indemnity hereunder shall be limited to the amount which represents the
product of the number of Firm Shares and Additional Shares sold and the initial
public offering price per Security set forth on the cover page of the
Prospectus. If any action shall be brought against the Company or any other
person so indemnified in respect of which indemnity may be sought against the
Selected Dealer pursuant to this provision, the Selected Dealer shall have the
rights and duties given to the Company in the Underwriting Agreement, and the
Company and each other person so indemnified shall have the rights and duties
given to the indemnified parties, by the provisions of Section 8(a) of the
Underwriting Agreement; and the Selected Dealer shall reimburse the Company and
the Representative for any legal or other expenses reasonably incurred by them
in connection with the investigation of or the defense of any such action or
claim. The Representative shall, after receiving the first summons or other
legal process disclosing the nature of the action being brought against it or
the Company in any proceeding with respect to which indemnity may be sought by
the Company or the Representative hereunder, notify promptly the Selected
Dealer in writing of the commencement thereof; and the Selected Dealer shall be
entitled to participate in (and, to the extent the Selected Dealer shall wish,
to direct) the defense thereof at the expense of the Selected Dealer, but such
defense shall be conducted by counsel satisfactory to the Company and the
Representative. If the Selected Dealer shall fail to provide such defense, the
Company or the Representative may defend such action at the cost and expense of
the Selected Dealer. The Selected Dealer's obligation under this Section 13
shall survive any termination of this Agreement, the Underwriting Agreement and
the delivery of and payment for the Shares under the Underwriting Agreement,
and shall remain in full force and effect regardless of the investigation made
by or on behalf of any Representative within the meaning of Section 15 of the
Act.
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14. No Authority to Act as Partner or Agent. Nothing herein shall
constitute the Selected Dealers as an association or other separate entity or
partners with or agents of the Representative or with each other, but each
Selected Dealer shall be responsible for its pro rata share of any liability or
expense based upon any claims to the contrary. The Representative shall not be
under any liability for or in respect of the value, validity or form of the
Shares, or the delivery of certificates for the Shares or the performance by
any person of any agreement on its part, or the qualification of the Shares for
sale under the laws of any jurisdiction, or for or in respect of any matter in
connection with this Agreement, except for lack of good faith and for
obligations expressly assumed by the Representative in this Agreement.
15. Expenses. No expenses incurred in connection with offers and sales
of the Shares under the Public Offering will be chargeable to the Selected
Dealers. A single transfer tax, if any, on the sale of Shares by the Selected
Dealer to its customers will be paid when such Shares are delivered to the
Selected Dealer for delivery to its customers. Notwithstanding the foregoing,
the Selected Dealer shall pay its proportionate share of any transfer tax or
any other tax (other than the single transfer tax described above) if any such
tax shall at any time be assessed against the Representative and other Selected
Dealers.
16. Notices. All notices, demands or requests required or authorized
hereunder shall be deemed given sufficiently if in writing and sent by
registered or certified mail, return receipt requested and postage prepaid, or
by tested telex, telegram, cable or facsimile to, in the case of the
Representative, the address set forth above directed to the attention of the
President of the Representative, and in the case of the Selected Dealer, to the
address provided below by the Selected Dealer, directed to the attention of the
President.
17. Termination. This Agreement may be terminated by the
Representative with or without cause upon written notice to Selected Dealer to
such effect; and such notice having been given, this Agreement shall terminate
at the time specified therein. Additionally, this Agreement shall terminate
upon the earlier of the termination of the Underwriting Agreement, or at the
close of business thirty days after the Shares are released by the
Representative for sale to the public.
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18. General Provisions. This Agreement shall be construed and enforced
in accordance with and governed by the laws of the State of Colorado. This
Agreement embodies the entire agreement and understanding between the
Representative and the Selected Dealer and supersedes all prior agreements and
understandings related to the subject matter hereof, and this Agreement may not
be modified or amended or any term or provision hereof waived or discharged
except in writing signed by the party against whom such amendment,
modification, waiver or discharge is sought to be enforced. All the terms of
this Agreement, whether so expressed or not, shall be binding upon, and shall
inure to the benefit of, the respective successors, legal representatives and
assigns of the parties hereto; provided, however, that none of the parties
hereto can assign this Agreement or any of its rights hereunder without the
prior written consent of the other party hereto, and any such attempted
assignment or transfer without the other party's prior written consent shall be
void and without force or effect. The headings of this Agreement are for
purposes of reference only and shall not limit or otherwise affect the meaning
hereof. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.
If the foregoing correctly sets forth the terms and conditions of your
agreement to purchase the Shares allotted to you, please indicate your
acceptance thereof by signing and returning to Xxxxxxxxx Securities, Inc. the
duplicate copy of this Agreement, whereupon this letter and your acceptance
shall become and evidence a binding contract between you and the
Representative.
XXXXXXXXX SECURITIES, INC.
By:
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Title:
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Gentlemen:
The undersigned confirms its agreement to purchase __________ Shares
of Leisure Time Casinos & Resorts, Inc., upon the terms and subject to the
conditions of the foregoing Selected Dealers Agreement, and further agrees that
any agreement by it to purchase Additional Shares during the life of such
Agreement will be upon the same terms and subject to the same conditions. The
undersigned acknowledges receipt of the Prospectus relating to the public
offering of the Shares and confirms that in agreeing to purchase such Shares it
has relied on such Prospectus and not on any other statement whatsoever written
or oral.
Firm Name:
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(Print or Type name of Firm)
By:
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(Authorized Agent)
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(Print or Type Name and Title of
Authorized Agent)
Address:
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Telephone No.
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IRS Employer Identification No.:
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Dated: _____________________________, 1999
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