BROADBAND CAPITAL MANAGEMENT LLC
000 XXXXX XXX., 00XX XXXXX
XXX XXXX, XXX XXXX 00000
SELECTED DEALERS AGREEMENT
Dear Sirs:
1. Registration under the Securities Act of 1933, as amended (the "ACT"),
of the 4,000,000 Units* of China Mineral Acquisition Corporation (the
"COMPANY"), as more fully described in the Preliminary Prospectus, dated
________ __, 2004 and in the final prospectus (the "PROSPECTUS") which will be
forwarded to you, will become effective in the near future. We, as the
Underwriters, are offering certain of the Units for purchase by a selected group
of dealers (the "SELECTED DEALERS") on the terms and conditions stated herein.
* Plus the over-allotment option available to the Underwriters to purchase
up to an additional 600,000 Units.
Authorized Public Offering Price: $6.00 per Unit.
Dealers' Selling Concession: Not to exceed $ per Unit payable upon
termination of this Agreement, except as
provided below. We reserve the right not
to pay such concession on any of the Units
purchased by any of the Selected Dealers
from us and repurchased by us at or below
the price stated above prior to such
termination.
Reallowance: You may reallow not in excess of $ per
Unit as a selling concession to dealers
who are members in good standing of the
National Association of Securities
Dealers, Inc. (the "NASD") or to foreign
dealers who are not eligible for
membership in the NASD and who have
agreed: (i) not to sell the Units within
the United States of America, its
territories or possessions or to persons
who are citizens thereof or residents
therein; and (ii) to abide by the
applicable Conduct Rules of the NASD.
Delivery and Payment: Delivery of the Units shall be made on or
about _______ __, 2004 or such later date
as we may advise on not less than one
day's notice to you, at the office of
Broadband Capital Management LLC, 000
Xxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx
Xxxx 00000 or at such other place as we
shall specify on not less than one day's
notice to you. Payment for the Units is to
be made, against delivery, at the
authorized public offering price stated
above, or, if we shall so advise you, at
the authorized public offering price less
the dealers' selling concession stated
above, by a certified or official bank
check in New York Clearing House Funds
payable to the order of Broadband Capital
Management LLC.
Termination: This Agreement shall terminate at the
close of business on the 45th day
following the effective date of the
Registration Statement (of which the
enclosed Prospectus forms a part), unless
extended at our discretion for a period or
periods not to exceed in the aggregate 30
additional days. We may terminate this
Agreement, whether or not extended, at any
time without notice.
2. Any of the Units purchased by you hereunder are to be offered by you to
the public at the public offering price, except as herein otherwise provided and
except that a reallowance from such public offering price not in excess of the
amount set forth on the first page of this Agreement may be allowed as
consideration for services rendered in distribution to dealers that: (a) are
actually engaged in the investment banking or securities business; (b) execute
the written agreement prescribed by Rule 2740 of the NASD Conduct Rules; and (c)
are either members in good standing of the NASD or foreign banks, dealers or
institutions not eligible for membership in the NASD that represent to you that
they will promptly reoffer such Units at the public offering price and will
abide by the conditions with respect to foreign banks, dealers and institutions
set forth in paragraph 9 below.
3. You, by becoming a member of the Selected Dealers, agree: (a) upon
effectiveness of the Registration Statement and your receipt of the Prospectus,
to take up and pay for the number of Units allotted and confirmed to you; (b)
not to use any of the Units to reduce or cover any short position you may have;
and (c) to make available a copy of the Prospectus to all persons who on your
behalf will solicit orders for the Units prior to the making of such
solicitations by such persons. You are not authorized to give any information or
to make any representations other than those contained in the Prospectus or any
supplements or amendments thereto.
4. As contemplated by Rule 15c2-8 under the Securities Exchange Act of
1934, as amended, we agree to mail a copy of the Prospectus to any person making
a written request therefor during the period referred to in the rules and
regulations adopted under such Act, the mailing to be made to the address given
in the request. You confirm that you have delivered all preliminary prospectuses
and revised preliminary prospectuses, if any, required to be delivered under the
provisions of Rule 15c2-8 and agree to deliver all copies of the Prospectus
required to be delivered thereunder. We have heretofore delivered to you such
preliminary prospectuses as have been required by you, receipt of which is
hereby acknowledged, and will deliver such further prospectuses as may be
requested by you.
5. You agree that until termination of this Agreement you will not make
purchases or sales of the Units except: (a) pursuant to this Agreement; (b)
pursuant to authorization received from us; or (c) in the ordinary course of
business as broker or agent for a customer pursuant to any unsolicited order.
6. Additional copies of the Prospectus and any supplements or amendments
thereto shall be supplied in reasonable quantity upon request.
7. The Units are offered by us for delivery when, as and if sold to, and
accepted by, us and subject to the terms herein and in the Prospectus or any
supplements or amendments
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thereto, to our right to vary the concessions and terms of offering after their
release for public sale, to approval of counsel as to legal matters and to
withdrawal, cancellation or modification of the offer without notice.
8. Upon written application to us, you shall be informed as to the
jurisdictions under the securities or blue sky laws of which we believe the
Units are eligible for sale, but we assume no responsibility as to such
eligibility or the right of any member of the Selected Dealers to sell any of
the Units in any jurisdiction. We have caused to be filed a Further State Notice
relating to such of the Units to be offered to the public in New York in the
form required by, and pursuant to, the provisions of Article 23A of the General
Business Law of the State of New York. Upon the completion of the public
offering contemplated herein, each member of the Selected Dealers agrees to
promptly furnish to us, upon our request, territorial distribution reports
setting forth each jurisdiction in which sales of the Units were made by such
member, the number of Units sold in such jurisdiction, and any further
information as we may request, in order to permit us to file on a timely basis
any report that we as the Underwriters of the offering or manager of the
Selected Dealers may be required to file pursuant to the securities or blue sky
laws of any jurisdiction.
9. You, by becoming a member of the Selected Dealers, represent that you
actually engaged in the investment banking or securities business and that you
are: (a) a member in good standing of the NASD and will comply with Rule 2740
NASD's Conduct Rules; or (b) a foreign dealer or institution that is not
eligible for membership in the NASD and that has agreed (i) not to sell Units
within the United States of America, its territories or possessions or to
persons who are citizens thereof or residents therein, (ii) that any and all
sales shall be in compliance with Rule 2110-01 of the NASD's Conduct Rules,
(iii) to comply, as though it were a member of the NASD, with Rules 2730, 2740
and 2750 of the NASD's Conduct Rules, and to comply with Rule 2420 thereof as
that Rule applies to a non-member broker or dealer in a foreign country.
10. Nothing herein shall constitute any members of the Selected Dealers'
partners with us or with each other, but you agree, notwithstanding any prior
settlement of accounts or termination of this Agreement, to bear your proper
proportion of any tax or other liability based upon the claim that the Selected
Dealers constitute a partnership, association, unincorporated business or other
separate entity and a like share of any expenses of resisting any such claim.
11. Broadband Capital Management LLC shall be the Managing Underwriter of
the offering and manager of the Selected Dealers and shall have full authority
to take such action as we may deem advisable in respect of all matters
pertaining to the offering or the Selected Dealers or any members of them.
Except as expressly stated herein, or as may arise under the Act, we shall be
under no liability to any member of the Selected Dealers as such for, or in
respect of: (i) the validity or value of the Units; (ii) the form of, or the
statements contained in, the Prospectus, the Registration Statement of which the
Prospectus forms a part, any supplements or amendments to the Prospectus or such
Registration Statement, any preliminary prospectus, any instruments executed by,
or obtained or any supplemental sales data or other letters from, the Company,
or others;
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(iii) the form or validity of the Underwriting Agreement or this Agreement; (iv)
the eligibility of any of the Units for sale under the laws of any jurisdiction;
(v) the delivery of the Units; (vi) the performance by the Company, or others of
any agreement on its or their part; or (vii) any matter in connection with any
of the foregoing, except our own want of good faith.
12. If for federal income tax purposes the Selected Dealers, among
themselves or with the Underwriters, should be deemed to constitute a
partnership, then we elect to be excluded from the application of Subchapter K,
Chapter 1, Subtitle A of the Internal Revenue Code of 1986, as amended, and we
agree not to take any position inconsistent with such selection. We authorize
you, in your discretion, to execute and file on our behalf such evidence of such
election as may be required by the Internal Revenue Service.
13. All communications from you shall be addressed to Broadband Capital
Management LLC at 000 Xxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Xxxxxxx Xxxx, Chairman. Any notice from us to you shall be deemed to
have been fully authorized by the Underwriters and to have been duly given if
mailed, telegraphed or sent by confirmed facsimile transmittal to you at the
address to which this letter is mailed. This Agreement shall be construed in
accordance with the laws of the State of New York without giving effect to
conflict of laws. Time is of the essence in this Agreement.
If you desire to become a member of the Selected Dealers, please advise us
to that effect immediately by facsimile transmission and sign and return to us
the enclosed counterpart of this letter.
Very truly yours,
BROADBAND CAPITAL MANAGEMENT LLC
By:
Xxxxxxx Xxxx
Chairman and Chief Executive Officer
We accept membership in the Selected Dealers on the terms specified above.
Dated: , 2004
(Selected Dealer)
By:
Name:
Title:
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