IAR Securities Corp.
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
CONOLOG CORPORATION
700,000 Units
SELECTED DEALER AGREEMENT
Dear Sirs: ____________, 1997
We, as the Underwriter named in the below referred to Prospectus (the
"Underwriter") have agreed, subject to the terms and conditions of the
Underwriting Agreement dated this date (the "Underwriting Agreement") to
purchase from IAR Securities Corp. (the "Company") at the price set forth on the
cover of such Prospectus, the above referred to 700,000 Units, each consisting
of one (1) share of Common Stock, $1.00 par per share ("Common Stock") and four
(4) Class A Redeemable Common Stock Purchase Warrants ("Warrants"), and up to
an additional 105,000 Units, offered pursuant to an over-allotment option
(collectively being called the "Units"). Each Warrant is exercisable to purchase
(1) share of Common Stock. The Units and certain of the terms on which they are
being purchased and offered are more fully described in the enclosed Prospectus
(the "Prospectus"). Additional copies of the Prospectus will be supplied to you,
in reasonable quantities upon request.
We, as the Underwriter, are offering to certain dealers ("Selected
Dealers"), among whom we are pleased to include you, part of the Units, at the
public offering price less a concession of $___ per Unit. The offering to
Selected Dealers is made subject to the issuance and delivery of the Units to us
and their acceptance by us, to the approval of legal matters by our counsel, and
to the terms and conditions hereof, and may be made by us on the basis of the
reservation of Units or an allotment against subscription, or otherwise in our
discretion.
The initial public offering price of the Units is set forth in the
Prospectus. With our consent, Selected Dealers may allow a discount of not in
excess of $___ per Unit in selling the Units to other dealers meeting the
requirements of the specifications set forth in the affirmation of dealers
contained in the attached Acceptance and Order. Upon our request, you will
notify us of the identity of any dealer to whom you allow such a discount and
any Selected Dealer from whom you receive such a discount.
All orders will be strictly subject to confirmation and we reserve the
right in our uncontrolled discretion to reject any order in whole or in part, to
accept or reject orders in the order of their receipt or otherwise, and to
allot. You are not authorized to give any information or make any representation
other than as set forth in the Prospectus in connection with the sale of any of
the Units. No dealer is authorized to act as agent for
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the Underwriter, or for the Company or the Selling Security Holder, when
offering any of the Units. Nothing contained herein shall constitute the
Selected Dealers partners with us or with one another.
Upon release by us, you may offer the Units at the public offering price,
subject to the terms and conditions hereof. We may, and the Selected Dealers
may, with our consent, purchase Units from and sell Units to each other at the
public offering price less a concession not in excess of the concession to
Selected Dealers.
Payment for Units purchased by you is to be made at our office (or at such
other place as instructed) at the public offering price, on such date as we may
advise, on one day's notice to you, by certified or official bank check in New
York Clearing House funds payable to our order. Delivery to you of certificates
for the Common Stock and Warrants included in the Units will be made as soon as
is practicable thereafter. Unless specifically authorized by us, payment by you
may not be deferred until delivery of certificates to you. The concession
payable to you will be paid as soon as practicable after the closing.
This Agreement shall terminate at the close of business on the 45th day
after the effective date of the Registration Statement. We may terminate this
Agreement at any time prior thereto by notice to you. Notwithstanding the
termination of this Agreement, you shall remain liable for your proportionate
share of any transfer tax or any liability which may be asserted or assessed
against us or Selected Dealers based upon the claim that the Underwriter and the
Selected Dealers, or any of them, constitute a partnership, association,
unincorporated business or other entity, including in each case your
proportionate share of expenses incurred in defending against any such claim or
liability.
In the event that, prior to the termination of this Agreement we purchase
in the open market or otherwise any Units delivered to you, you agree to repay
to us for the account of the Underwriter the amount of the above concession to
Selected Dealers plus brokerage commissions and any transfer taxes paid in
connection with such purchase; which amounts can be withheld from the concession
otherwise payable to you hereunder. Certificates for the Common Stock and
Warrants included in the Units delivered on any such purchase need not be the
identical certificates originally issued to you.
At any time prior to the termination of this Agreement, you will, upon our
request, report to us the number of Units purchased by you under this Agreement
which then remain unsold and will, upon our request, sell to us for the account
of the Underwriter the number of such unsold Units that we may designate, at the
public offering price less an amount to be determined by us not in excess of the
concession allowed you.
We shall have full authority to take such action as we may deem advisable
in respect of all matters pertaining to the offering, including, without
limitation, stabilization and over-allotment. We shall be under no liability to
you except for our lack of good faith and for obligations assumed by us in this
Agreement, except that you do not waive any rights that you may have under the
Securities Act of 1933, as amended, (the "1933 Act") or the rules and
regulations thereunder.
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Upon application to us, we will inform you of the states and other
jurisdictions of the United States in which it is believed that the Units are
qualified for sale under, or are exempt from the requirements of, their
respective securities laws, but we assume no responsibility with respect to your
right to sell Units in any jurisdiction. We have filed a Further State Notice
with respect to the Units with the Department of State of the State of New York.
You confirm that you are familiar with Rule 15c2-8 under the Securities
Exchange Act of 1934 (the "1934 Act"), relating to the distribution of
preliminary and final prospectuses, and confirm that you have complied and will
comply therewith (whether or not the Company is subject to the reporting
requirements of Section 13 or 15(d) of the 1934 Act). We will make available to
you, to the extent made available to us by the Company such number of copies of
the Prospectus as you may reasonably request for purposes contemplated by the
1933 Act, the 1934 Act, and the rules and regulations thereunder.
Your attention is directed to Rule 10b-6 under the 1934 Act, which contains
certain prohibitions against trading by a person interested in a distribution
until such person has completed its participation in the distribution. You
confirm that you will at all times comply with the provisions of such Rule in
connection with this offering.
Any notice from us shall be deemed to have been duly given if telephoned,
and subsequently mailed or transmitted by any standard form of written
tele-communication to you at the address to which this Agreement is mailed, or
if so mailed or transmitted in the first instance.
Please advise us promptly by telephone or any standard form of written
telecommunication of the principal amount of Units ordered by you and confirm
your agreement hereto by signing the Acceptance and Order on the enclosed
duplicate hereof and returning promptly such signed duplicate copy to IAR
Securities Corp.., 00 Xxxx Xxxxxx, Xxx Xxxx, XX 00000. Upon receipt thereof,
this instrument and such signed duplicate copy will evidence the agreement
between us.
Very truly yours,
IAR SECURITIES CORP.
By:_________________________________
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ACCEPTANCE AND ORDER
IAR Securities Corp.
00 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Dear Sirs:
We hereby enter our order for ______ Units of Conolog Corporation under the
terms and conditions of the foregoing Agreement.
We agree to all the terms and conditions stated in the foregoing Agreement.
We acknowledge receipt of the Prospectus relating to the above Units and we
further state that in entering this order we have relied upon said Prospectus
and no other statements whatsoever, written or oral. We affirm that we are
either (i) a member in good standing of the National Association of Securities
Dealers, Inc. (the "NASD") or (ii) a dealer with its principal place of business
located outside the United States, its territories, or possessions and not
registered under the Securities Exchange Act of 1934 and not eligible for
membership in the NASD, who hereby agrees to make no sales within the United
States, its territories or its possessions or to persons who are nationals
thereof or residents therein, and in making any sales, to comply with the NASD's
interpretation with respect to free-riding and withholding, as well as all other
pertinent interpretations of the NASD that may be applicable to us. We also
affirm and agree that we will promptly re-offer any Units purchased by us in
conformity with the terms of the offering and in conformity with the NASD
Conduct Rules of the NASD, (including, without limitation, Rules 2730, 2740,
2420 and 2750) and all applicable Rules and Regulations promulgated under the
Securities Exchange Act of 1934.
Date: , 1997 __________________________________
(Name of Selected Dealer)
By:_______________________________
(Authorized Signature)
Address:__________________________
__________________________________
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