Document:

Exhibit 10.3

 

FIRST AMENDMENT TO STOCK
PLEDGE AGREEMENT

DATED JUNE 20, 2005

 

This First Amendment to
Stock Pledge Agreement (the “First Amendment”) is made as of this 20th
day of June 2005 by and between CRA International, Inc., formerly
known as Charles River Associates Incorporated (“Borrower”), a Massachusetts
corporation with its principal executive office at the John Hancock Tower, 200
Clarendon Street, T-33, Boston, Massachusetts 02116-5092 and Citizens Bank of
Massachusetts, a bank with offices at 28 State Street, Boston, Massachusetts
(the “Lender”) in consideration of the mutual covenants contained herein and
the benefits to be derived herefrom. 
Unless otherwise specified, all capitalized terms shall have the same
meaning herein as set forth in the Pledge Agreement (as defined below).

 

W I T N E S S E T H:

 

WHEREAS,
on January 14, 2004, the Borrower and the Lender entered into a loan
arrangement (the “Loan Arrangement”) as evidenced by, amongst other documents
and instruments, a certain Loan Agreement dated as of January 14, 2004 as
amended by a First Amendment to Loan Agreement dated as of March 29, 2005
(as may be amended from time to time, the “Agreement”) by and between the
Borrower and the Lender pursuant to which the Lender agreed to provide certain
financial accommodations to or for the benefit of the Borrower; and

 

WHEREAS,
as part of the Loan Arrangement the Borrower executed a certain Stock Pledge
Agreement dated as of January 14, 2004 (the “Pledge Agreement”) and
pledged its interests in and to the Pledged Stock as described in Exhibit A
of the Pledge Agreement; and

 

WHEREAS,
the Borrower has requested that the Lender amend certain terms and conditions
of the Agreement, and

 

WHEREAS,
as part of the amendment the Borrower shall be pledging its interests in
additional subsidiaries; and

 

WHEREAS,
the Lender has agreed to so amend the Loan Arrangement provided the Borrower
and the Lender enter into this First Amendment; and

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

 

1.               Exhibit A of
the Pledge Agreement is hereby deleted and replaced with Exhibit A annexed
hereto.

 

2.               The Stock
Collateral as amended by the addition of the additional Pledged Stock
referenced on the amended Exhibit A annexed hereto, continues to secure
the Obligations as amended by the amendment referenced herein.

 

1

 

3.               The Borrower hereby
acknowledges and agrees that the Borrower has no claims, offsets, defenses or
counterclaims against the Lender with respect to the Loan Arrangement or
otherwise and to the extent the Borrower may have any such claims the Borrower
hereby WAIVES and RENOUNCES such claims, offsets, defenses and counterclaims.

 

4.               This First
Amendment and all other documents executed in connection herewith incorporate
all discussions and negotiations between the Borrower and the Lender either
expressed or implied, concerning the matters contained herein and in such other
instruments, any statute, custom or use to the contrary notwithstanding.  No such discussions or negotiations shall
limit, modify or otherwise effect the provisions hereof.  The modification amendment, or waiver of any
provision of this First Amendment, the Pledge Agreement or any provision under
any other agreement or document entered into between the Borrower and the
Lender shall not be effective unless executed in writing by the party to be
charged with such modification, amendment or waiver, and if such party be the
Lender, then by a duly authorized officer thereof.

 

5.               Except as
specifically modified herein, the Pledge Agreement shall remain in full force
and effect as originally written, and the Borrower hereby ratifies and confirms
all terms and conditions contained in the Pledge Agreement.

 

6.               This First
Amendment shall be construed in accordance with and governed by the laws of the
Commonwealth of Massachusetts and shall take effect as a sealed instrument.

 

IN
WITNESS WHEREOF, the parties hereof have set their hands and seals as of the
date first written above.

 

	
   

  	
  CRA INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Phillip
  Cooper

  	
   

  
	
   

  	
  Name:

  	
  J. Phillip
  Cooper

  	
   

  
	
   

  	
  Title:

  	
  Vice Chairman,
  Executive Vice

  	
   

  
	
   

  	
   

  	
  President, and
  Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIZENS BANK OF
  MASSACHUSETTS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael G.
  McAuliffe

  	
   

  
	
   

  	
  Name:

  	
  Michael G.
  McAuliffe

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  	
   

  
										

 

2

 

EXHIBIT A

 

	
  Name of Subsidiary

  	
   

  	
  Jurisdiction 

  of Incorporation

  	
   

  	
  Class of Stock

  	
   

  	
  No. of Shares

  Outstanding

  	
   

  	
  No. of Shares

  Pledged

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRA Security Corporation

  	
   

  	
  Massachusetts

  	
   

  	
  Common

  	
   

  	
  100

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRA International Canada Ltd. (formerly known as
  Charles River Associates Canada Ltd.)

  	
   

  	
  Canada

  	
   

  	
  Common

  	
   

  	
  20

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRA International (UK) Limited (formerly known
  as Charles River Associates Limited)

  	
   

  	
  United
  Kingdom

  	
   

  	
  Ordinary

  	
   

  	
  20

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRA International de Mexico, S.A. de C.V.
  (formerly known as Charles River de Mexico, S.A. de C.V.)

  	
   

  	
  Mexico

  	
   

  	
  Class I

  

  Class II

  	
   

  	
  5,000 

  

  17,908,582

  	
  (1)

  

  

  	
  3,249

  

  11,640,578

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRA International Limited (formerly known as
  Charles River Associates (Asia Pacific) Limited)

  	
   

  	
  New
  Zealand

  	
   

  	
  Ordinary

  	
   

  	
  100

  	
   

  	
  65

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRA International PTY LTD (formerly known as
  Charles River Associates Asia Pacific PTY LTD)

  	
   

  	
  Australia

  	
   

  	
  Ordinary

  	
   

  	
  20

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  InteCap, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Common

  	
   

  	
  100

  	
   

  	
  100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lee & Allen Consulting Limited

  	
   

  	
  United
  Kingdom

  	
   

  	
  Ordinary

  	
   

  	
  50,000

  	
   

  	
  32,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Network Economics Consulting Group PTY Limited

  	
   

  	
  Australia

  	
   

  	
  Ordinary

  	
   

  	
  2

  	
   

  	
  (65

  	
  )%(2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Economics of Competition & Litigation
  Limited

  	
   

  	
  England

  	
   

  	
  Ordinary

  Deferred

  	
   

  	
  81,632

  Ordinary

  43,368

  Deferred

  	
   

  	
  53,060

  Ordinary

  28,189

  Deferred

  	
   

  

 

(1) Includes
1 share held by James C. Burrows.

 

(2) The table
sets forth the number of shares outstanding of this Foreign Subsidiary as of
the date of this Stock Pledge Agreement. 
In order to grant a security interest in, and deliver stock certificates
for, 65% of the outstanding voting stock of this Foreign Subsidiary within 60
days, this Foreign Subsidiary shall, within 60 days, take such steps as
necessary to increase its outstanding capital stock to an amount that enables
it to issue a stock certificate representing 65% of the total combined voting
power of all classes of capital stock entitled to vote.  An updated version of this Exhibit A
shall also be provided at that time.

 

3Exhibit 10.4

 

CRA INTERNATIONAL, INC.

1,899,227 Shares Common Stock (1)

 

UNDERWRITING AGREEMENT

 

	
   

  	
  June 23, 2005

  

 

 

J.P. Morgan
Securities Inc.

William Blair
& Company, L.L.C.

Piper Jaffray
& Co.

Adams Harkness, Inc.

As Representatives of the Several

Underwriters Named in Schedule A

c/o J.P. Morgan Securities Inc.

277 Park Avenue

New York, New York  10172

 

Ladies and
Gentlemen:

 

SECTION 1.          Introductory.  CRA
International, Inc. (the “Company”), a
Massachusetts corporation, has an authorized capital stock consisting of
1,000,000 shares of Preferred Stock, without par value, of which no shares are
outstanding and 25,000,000 shares of Common Stock, without par value (“Common Stock”), of which 10,172,188 shares were outstanding
as of May 25, 2005.  The Company proposes
to issue and sell 710,000 shares of its authorized but unissued Common Stock,
and certain stockholders and optionholders of the Company (collectively
referred to as the “Selling Stockholders”
and named in Schedule B) propose to sell 1,189,227 shares of the Company’s
issued and outstanding Common Stock, to the several underwriters named in
Schedule A as it may be amended by the Pricing Agreement hereinafter defined (“Underwriters”), who are acting severally and not
jointly.  Collectively, such total of
1,899,227 shares of Common Stock proposed to be sold by the Company and the
Selling Stockholders is hereinafter referred to as the “Firm
Shares.”  In addition, the
Company and the Selling Stockholders propose to grant to the Underwriters an
option to purchase up to 284,884 additional shares of Common Stock (“Option Shares”) as provided in Section 4 hereof.  The Firm Shares and, to the extent such
option is exercised, the Option Shares, are hereinafter collectively referred
to as the “Shares.”

 

(1) Plus an option to acquire up to 284,884 additional shares to cover
overallotments.

 

 

You have advised
the Company and the Selling Stockholders that the Underwriters propose to make
a public offering of their respective portions of the Shares as soon as you deem
advisable after the Pricing Agreement hereinafter defined has been executed and
delivered.

 

Prior to the
purchase and public offering of the Shares by the several Underwriters, the
Company, the Selling Stockholders and the Representatives, acting on behalf of
the several Underwriters, shall enter into an agreement substantially in the
form of Exhibit A hereto (the “Pricing Agreement”).  The Pricing Agreement may take the form of an
exchange of any standard form of written telecommunication between the Company,
the Selling Stockholders and the Representatives and shall specify such
applicable information as is indicated in Exhibit A hereto.  The offering of the Shares will be governed
by this Agreement, as supplemented by the Pricing Agreement.  From and after the date of the execution and
delivery of the Pricing Agreement, this Agreement shall be deemed to
incorporate the Pricing Agreement.

 

The Company and
each of the Selling Stockholders hereby confirm their respective agreements
with the Underwriters as follows:

 

SECTION 2.          Representations
and Warranties of the Company.  The
Company hereby represents, warrants and covenants to each Underwriter as
follows:

 

(a)           Registration Statement;
Prospectus.  A
registration statement on Form S-3 (File No. 333-123903), including a related
preliminary prospectus, with respect to the Shares has been prepared and filed
with the Securities and Exchange Commission (the “Commission”)
by the Company in conformity with the requirements of the Securities Act of
1933, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Securities Act;”
unless indicated to the contrary, all references herein to specific rules are
rules promulgated under the Securities Act); and the Company has so prepared
and has filed such amendments thereto, if any, and such amended preliminary
prospectuses as may have been required to the date hereof and will file such
additional amendments thereto and such amended prospectuses as may hereafter be
required.

 

Such registration statement (as amended, if
applicable) at the time it became effective and the prospectus constituting a
part thereof (including the information, if any, deemed to be part thereof
pursuant to Rule 430A(b) and/or Rule 434), as from time to time amended or
supplemented, are hereinafter referred to as the “Registration
Statement,” and the “Prospectus,”
respectively, except that if any revised prospectus shall be provided to the
Underwriters by the Company for use in connection with the offering of the
Shares which differs from the Prospectus on file at the Commission at the time
the Registration Statement became effective (whether or not such revised
prospectus is required to be filed by the Company pursuant to Rule 424(b)), the
term Prospectus shall refer to such revised prospectus from and after the time
it was provided to 

 

2

 

the Underwriters for such use. 
If the Company elects to rely on Rule 434 of the Securities Act, all
references to “Prospectus” shall be deemed to include, without limitation, the
form of prospectus and the term sheet, taken together, provided to the
Underwriters by the Company in accordance with Rule 434 of the Securities Act (“Rule 434 Prospectus”). 
Any registration statement (including any amendment or supplement
thereto or information which is deemed part thereof) filed by the Company under
Rule 462(b) (“Rule 462(b) Registration Statement”)
shall be deemed to be part of the “Registration Statement” as defined herein,
and any prospectus (including any amendment or supplement thereto or
information which is deemed part thereof) included in such registration
statement shall be deemed to be part of the “Prospectus,” as defined herein, as
appropriate.  The Securities Exchange Act
of 1934, as amended, and the rules and regulations of the Commission thereunder
are hereinafter collectively referred to as the “Exchange
Act.”   Any
reference herein to any preliminary prospectus or the Prospectus shall be
deemed to refer to and include the documents incorporated by reference therein
pursuant to Form S-3 under the Securities Act (“Incorporated
Documents”), as of the date of such preliminary prospectus or
Prospectus, as the case may be.  Any
document filed by the Company under the Exchange Act after the effective date
of the Registration Statement or the date of the Prospectus and incorporated by
reference in the Prospectus shall be deemed to be included in the Registration
Statement and the Prospectus as of the date of such filing.

 

(b)           Compliance with Registration
Requirements.  The Registration Statement and any Rule 462(b)
Registration Statement have been declared effective by the Commission under the
Securities Act.  The Company has complied
to the Commission’s satisfaction with all requests of the Commission for
additional or supplemental information. 
No stop order suspending the effectiveness of the Registration Statement
or any Rule 462(b) Registration Statement is in effect and no proceedings for
such purpose have been instituted or are pending or, to the best knowledge of
the Company, are contemplated or threatened by the Commission.

 

Each preliminary prospectus and the
Prospectus when filed complied in all material respects with the Securities Act
and, if filed by electronic transmission pursuant to the Commission’s
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) (except as may
be permitted by Regulation S-T under the Securities Act), was identical to the
copy thereof delivered to the Underwriters for use in connection with the offer
and sale of the Shares.  Each of the
Registration Statement, any Rule 462(b) Registration Statement and any post-effective
amendment thereto, at the time it became effective and at all subsequent times,
complied and will comply in all material respects with the Securities 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 to make the
statements therein not misleading.  The
Prospectus, as amended or supplemented, as of its date and at all subsequent
times, did not 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.

 

3

 

The representations and warranties
set forth in the two immediately preceding sentences do not apply to statements
in or omissions from the Registration Statement, any Rule 462(b) Registration
Statement, or any post-effective amendment thereto, or the Prospectus, or any
amendments or supplements thereto, made in reliance upon and in conformity with
information relating to any Underwriter furnished to the Company in writing by
the Underwriters expressly for use therein. 
There are no contracts or other documents required to be described in
the Prospectus or to be filed as exhibits to the Registration Statement which
have not been described or filed as required.

 

(c)           Offering Materials Furnished to Underwriters.  The Company has delivered to each
Representative and their counsel one complete manually signed copy of the
Registration Statement and of each consent and certificate of experts filed as
a part thereof, and to each Underwriter conformed copies of the Registration
Statement (without exhibits) and preliminary prospectuses and the Prospectus,
as amended or supplemented, in such quantities and at such places as the
Underwriters have reasonably requested.

 

(d)           Distribution of Offering Material By the Company.  The Company has not distributed
and will not distribute, prior to the later of the Second Closing Date (as
defined below) and the completion of the Underwriters’ distribution of the
Shares, any offering material in connection with the offering and sale of the
Shares other than a preliminary prospectus, the Prospectus or the Registration
Statement.

 

(e)           The Underwriting Agreement and the Pricing Agreement.  This Agreement and the Pricing
Agreement have been duly authorized, executed and delivered by, and are valid
and binding agreements of, the Company, enforceable in accordance with their
terms, except as rights to indemnification or contribution hereunder may be
limited by applicable law and except as the enforcement hereof may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general
equitable principles.

 

(f)            Authorization of the Shares.  The
Shares to be purchased by the Underwriters from the Company have been duly
authorized for issuance and sale pursuant to this Agreement and, when issued
and delivered by the Company pursuant to this Agreement, will be validly
issued, fully paid and nonassessable.

 

(g)           No Applicable Registration or Other Similar Rights.  There are no persons with
registration or other similar rights to have any equity or debt securities
registered for sale under the Registration Statement or included in the
offering contemplated by this Agreement, except for such rights as have been
duly waived or complied with.

 

4

 

(h)           No Material Adverse Change.  Except
as otherwise disclosed in the Prospectus, subsequent to the respective dates as
of which information is given in the Prospectus:  (i) there has been no material adverse
change, or any development that could reasonably be expected to result in a
material adverse change, in the condition, financial or otherwise, or in the
earnings, business, operations or prospects, whether or not arising from
transactions in the ordinary course of business, of the Company and its
subsidiaries (the “Subsidiaries”), considered as
one entity (any such change is called a “Material Adverse Change”);
(ii) the Company and the Subsidiaries, considered as one entity, have not
incurred any material liability or obligation, indirect, direct or contingent,
not in the ordinary course of business nor entered into any material
transaction or agreement not in the ordinary course of business; and (iii)
there has been no dividend or distribution of any kind declared, paid or made
by the Company or, except for dividends paid to the Company, by a Subsidiary on
any class of capital stock or repurchase or redemption by the Company or any Subsidiary
of any class of capital stock.

 

(i)            Independent Accountants.  Ernst
& Young LLP, who have expressed their opinion with respect to the financial
statements (which term as used in this Agreement includes the related notes
thereto) and supporting schedules filed with the Commission as a part of the
Registration Statement and included in the Prospectus, is an independent
registered public accountanting firm as required by the Securities Act and the
Exchange Act.

 

(j)            Preparation of the Financial Statements.  The financial statements filed
with the Commission as a part of the Registration Statement and included in the
Prospectus present fairly the consolidated financial position of the Company
and the Subsidiaries as of and at the dates indicated and the results of their
operations and cash flows for the periods specified.  The supporting schedules, if any, included in
the Registration Statement present fairly the information required to be stated
therein.  Such financial statements and
supporting schedules have been prepared in conformity with generally accepted
accounting principles applied on a consistent basis throughout the periods
involved, except as may be expressly stated in the related notes thereto.  No other financial statements or supporting
schedules are required to be included in the Registration Statement.  The financial data set forth in the
Prospectus under the captions “Prospectus Supplement Summary - Summary
Consolidated Financial Data,” “Selected Consolidated Financial Data” and “Capitalization”
fairly present the information set forth therein on a basis consistent with
that of the audited financial statements contained in the Registration
Statement.

 

(k)           Incorporation and Good Standing of the Company and the
Subsidiaries.  The Company has
been duly incorporated and is validly existing as a corporation in good
standing under the laws of the Commonwealth of Massachusetts and has corporate
power and authority to own, lease and operate its properties and to conduct its
business as described in the Prospectus and to enter into and perform its
obligations under this Agreement.  Each
Subsidiary has been

 

5

 

duly organized and is validly existing as a corporation or limited
liability company in good standing under the laws of the jurisdiction of its
organization and has power and authority to own, lease and operate its
properties and to conduct its business as described in the Prospectus.  Each of the Company and the Subsidiaries is
duly qualified to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except for such
jurisdictions where the failure to so qualify or to be in good standing would
not, individually or in the aggregate, result in a Material Adverse
Change.  The Company is the legal and
beneficial owner of the capital stock or membership interest in each
Subsidiary, as described in the Registration Statement.  The Company owns its capital stock or
membership interest in each Subsidiary free and clear of any security interest,
mortgage, pledge, lien, encumbrance or claim. 
Except as described in the Prospectus, the Company has no obligation to
contribute capital to any Subsidiary pursuant to the organizational documents,
operating agreement or certificate of formation of such Subsidiary or any
contractual arrangement with any third party. 
The Company does not own or control, directly or indirectly, any
corporation, association or other entity other than the Subsidiaries.

 

(l)            Compliance with Laws.  The
conduct of the business of the Company and each of the Subsidiaries is in
compliance in all respects with applicable federal, state, local and foreign
laws and regulations, except where the failure to be in compliance would not
result in a Material Adverse Change.

 

(m)          Capitalization and Other Capital Stock Matters.  The authorized, issued and
outstanding capital stock of the Company as of May 13, 2005 was as set forth in
the Prospectus under the caption “Capitalization.”  The Common Stock (including the Shares)
conforms in all material respects to the description thereof contained in the
Prospectus.  All of the issued and
outstanding shares of Common Stock (including the shares of Common Stock owned
by Selling Stockholders) have been duly authorized and validly issued, are
(except, in the case of shares purchased by officers of the Company under
agreements which provide for the purchase price to be paid in installments, to
the extent of the installments which are not yet due and payable) fully paid
and nonassessable and have been issued in compliance with federal and state
securities laws.  None of the outstanding
shares of Common Stock were issued in violation of any preemptive rights,
rights of first refusal or other similar rights to subscribe for or purchase
securities of the Company.  There are no
authorized or outstanding options, warrants, preemptive rights, rights of first
refusal or other rights to purchase, or equity or debt securities convertible
into or exchangeable or exercisable for, any capital stock of the Company or
any Subsidiary other than those accurately described in the Prospectus and
those relating to NeuCo, Inc.  The
description of the Company’s stock option, stock bonus and other stock plans or
arrangements, and the options or other rights granted thereunder, set forth in
the Prospectus is an accurate and fair description in all material respects of
such plans, arrangements, options and rights.

 

6

 

(n)           Exchange Act and Nasdaq National Market Listing.  The Common Stock (including the
Shares) is registered pursuant to Section 12(g) of the Exchange Act and is
listed on the Nasdaq National Market, and the Company has taken no action
designed to, or likely to have the effect of, terminating the registration of
the Common Stock under the Exchange Act or delisting the Common Stock from the
Nasdaq National Market, nor has the Company received any notification that the
Commission or the National Association of Securities Dealers, Inc. (the “NASD”) is contemplating terminating such registration or
listing.

 

(o)           Non-Contravention of Existing Instruments; No Further Authorizations or
Approvals Required.  Neither the
Company nor any Subsidiary is in violation of its charter or by-laws or other
applicable organizational documents or is in default (or, with the giving of
notice or lapse of time, would be in default) (“Default”)
under any indenture, mortgage, loan or credit agreement, note, contract,
franchise, lease or other instrument to which the Company or such Subsidiary is
a party or by which it or any of them may be bound or to which any of the
property or assets of the Company or such Subsidiary is subject (each, an “Existing Instrument”), except for such Defaults as would
not, individually or in the aggregate, result in a Material Adverse
Change.  The Company’s execution,
delivery and performance of this Agreement and the Pricing Agreement and
consummation of the transactions contemplated hereby and by the Prospectus (i)
have been duly authorized by all necessary corporate action and will not result
in any violation of the provisions of the charter or by-laws or other
applicable organizational documents of the Company or any Subsidiary, (ii) will
not conflict with or constitute a breach of, or 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 Subsidiary pursuant to, or require the consent of
any other party to, any Existing Instrument, except for such conflicts,
breaches, Defaults, liens, charges or encumbrances (A) as to which the Company
has obtained prior to the date hereof a valid waiver or consent, a copy of
which has been delivered to counsel for the Underwriters, or (B) as would not,
individually or in the aggregate, result in a Material Adverse Change, and
(iii) will not result in any violation of any law, administrative regulation or
administrative or court decree applicable to the Company or any
Subsidiary.  No consent, approval,
authorization or other order of, or registration or filing with, any court or
other governmental or regulatory authority or agency, is required for the
Company’s execution, delivery and performance of this Agreement and the Pricing
Agreement and consummation of the transactions contemplated hereby and thereby
and by the Prospectus, except such as have been obtained or made by the Company
and are in full force and effect under the Securities Act or applicable state
securities or blue sky laws and from the NASD.

 

(p)           No Material Actions or Proceedings. 
There are no legal or governmental actions, suits or
proceedings pending or, to the best of the Company’s knowledge, threatened (i)
against the Company or any Subsidiary, (ii) which has as the subject thereof
any officer or director of, or property owned or leased by, the Company or any
Subsidiary or (iii) relating to

 

7

 

environmental or discrimination matters, where in any such case (A)
there is a reasonable possibility that such action, suit or proceeding might be
determined adversely to the Company or any Subsidiary and (B) any such action,
suit or proceeding, if so determined adversely, would reasonably be expected to
result in a Material Adverse Change or adversely affect the consummation of the
transactions contemplated by this Agreement. 
No material labor dispute with the employees of the Company or any Subsidiary
exists or, to the best of the Company’s knowledge, is threatened or imminent.

 

(q)           Intellectual Property Rights.  The
Company and each Subsidiary own or possess sufficient trademarks, trade names,
patent rights, copyrights, licenses, approvals, trade secrets and other similar
rights (collectively, “Intellectual Property
Rights”) reasonably necessary to conduct their businesses as now
conducted; and the expected expiration of any of such Intellectual Property
Rights would not result in a Material Adverse Change.  Neither the Company nor any Subsidiary has
received any notice of infringement or conflict with asserted Intellectual
Property Rights of others, which infringement or conflict, if the subject of an
unfavorable decision, would result in a Material Adverse Change.

 

(r)            All Necessary Permits, etc.  The
Company and each Subsidiary possess such valid and current licenses,
certificates, authorizations or permits issued by the appropriate state,
federal or foreign regulatory agencies or bodies necessary to conduct their
respective businesses, except where any failure to possess the same,
individually or in the aggregate, would not result in a Material Adverse
Change, and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of, or non-compliance
with, any such certificate, authorization or permit which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, could
result in a Material Adverse Change.

 

(s)           Title to Properties.  The
Company and each Subsidiary have good and marketable title to all the
properties and assets reflected as owned in the financial statements referred
to in Section 2(j) above (or elsewhere in the Prospectus), in each case free
and clear of any security interests, mortgages, liens, encumbrances, equities,
claims and other defects, except such as are disclosed in the Prospectus or as
do not materially and adversely affect the value of such property and do not
materially interfere with the use made or proposed to be made of such property
by the Company or such Subsidiary.  The
real property, improvements, equipment and personal property held under lease
by the Company or any Subsidiary are held under valid and enforceable leases,
with such exceptions as are not material and do not materially interfere with
the use made or proposed to be made of such real property, improvements,
equipment or personal property by the Company or such Subsidiary.

 

(t)            Tax Law Compliance.  The
Company and each Subsidiary have filed all necessary federal, state, local and
foreign income and franchise tax returns and have paid all

 

8

 

taxes due and payable by any of them and, if due and payable, any
related or similar assessment, fine or penalty levied against any of them,
except as may be being contested in good faith and by appropriate
proceedings.  The Company has made
adequate charges, accruals and reserves in the applicable financial statements
referred to in Section 2(j) above in respect of all federal, state, local and
foreign income and franchise taxes for all periods as to which the tax
liability of the Company or any Subsidiary has not been finally determined.

 

(u)           Company Not an “Investment Company”. 
The Company has been advised of the rules and requirements
under the Investment Company Act of 1940, as amended (the “Investment
Company Act”).  The Company is
not, and after receipt of payment for the Shares will not be, an “investment
company” within the meaning of the Investment Company Act and will conduct its
business in a manner so that it will not become subject to the Investment
Company Act.

 

(v)           Insurance.  The
Company and each Subsidiary are insured by recognized, financially sound and
reputable institutions with policies in such amounts and with such deductibles
and covering such risks as are generally deemed adequate and customary for
their businesses including, but not limited to, policies covering real and
personal property owned or leased by the Company and any Subsidiary against theft,
damage, destruction, acts of vandalism and earthquakes.  The Company has no reason to believe that it
or the Subsidiaries will not be able (i) to renew its existing insurance
coverage as and when such policies expire or (ii) to obtain comparable coverage
from similar institutions as may be necessary or appropriate to conduct its
business as now conducted and at a cost that would not result in a Material
Adverse Change.  Since April 23, 1998,
neither the Company nor any Subsidiary has been denied any insurance coverage
which it has sought or for which it has applied.

 

(w)          No Price Stabilization or Manipulation. 
The Company has not taken and will not take, directly or
indirectly, any action designed to or that might be reasonably expected to
cause or result in stabilization or manipulation of the price of the Common
Stock to facilitate the sale or resale of the Shares.

 

(x)            Related Party Transactions.  There
are no business relationships or related-party transactions involving the
Company or any Subsidiary or any other person required to be described in the
Prospectus which have not been described as required.

 

(y)           No Unlawful Contributions or Other Payments.  Neither the Company nor any
Subsidiary nor, to the best of the Company’s knowledge, any employee or agent
of the Company or any Subsidiary, has made any contribution or other payment to
any official of, or candidate for, any federal, state or foreign office in
violation of any law or of the character required to be disclosed in the
Prospectus.

 

9

 

(z)            ERISA Compliance.  The
Company and each Subsidiary and any “employee benefit plan” (as defined under
the Employee Retirement Income Security Act of 1974, as amended, and the
regulations and published interpretations thereunder (collectively, “ERISA”)) established or maintained by the Company, any
Subsidiary or their “ERISA Affiliates”
(as defined below) are in compliance in all material respects with ERISA.  “ERISA Affiliate” means, with respect to the
Company or any Subsidiary, any member of any group of organizations described
in Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as
amended, and the regulations and published interpretations thereunder (the “Code”) of which the Company or any Subsidiary is a
member.  No “reportable event” (as
defined under ERISA) has occurred or is reasonably expected to occur with
respect to any “employee benefit plan” established or maintained by the
Company, any Subsidiary or any of their ERISA Affiliates.  No “employee benefit plan” established or
maintained by the Company, any Subsidiary or any of their ERISA Affiliates, if
such “employee benefit plan” were terminated, would have any “amount of
unfunded benefit liabilities” (as defined under ERISA).  Neither the Company, any Subsidiary nor any
of their ERISA Affiliates has incurred or reasonably expects to incur any
liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any “employee benefit plan” or (ii) Sections 412, 4971, 4975
or 4980B of the Code.  Each “employee
benefit plan” established or maintained by the Company, any Subsidiary or any
of their ERISA Affiliates that is intended to be qualified under Section 401(a)
of the Code is so qualified and nothing has occurred, whether by action or
failure to act, which would cause the loss of such qualification.

 

(aa)         Exchange Act Compliance.  The
Company has filed on a timely basis all reports and other documents required to
be filed by it under the Exchange Act. 
All such reports and documents, as well as any such reports and
documents filed by the Company from the date of this Agreement through the
Second Closing Date, at the time they were or hereafter are filed with the
Commission, complied and will comply in all material respects with the
requirements of the Exchange Act, and when filed, did not or will not contain
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

 

(bb)         Accounting Controls and Methodology.  Each of the Company and the Subsidiaries has
established and maintains disclosure controls and procedures (as such term is
defined in Rule 13a-14 under the Exchange Act); such disclosure controls and
procedures are designed to ensure that information required to be disclosed in
the reports filed or submitted under the Exchange Act is accumulated and
communicated to the Company’s and the Subsidiaries’ management, including their
respective principal executive officers and principal financial officers, as
appropriate, to allow timely decisions regarding required disclosure; and such
disclosure controls and procedures are effective in all material respects to
perform the functions for which they were established.  Since the date of the most recent balance
sheet reviewed or audited by the Company’s auditors, there have been no
significant changes in

 

10

 

internal controls or in other factors that could significantly affect
internal controls, including any corrective actions with regard to significant
deficiencies and material weaknesses. 
Since the date of the most recent balance sheet reviewed or audited by
the Company’s and the Subsidiaries’ auditors, the audit committee of the board
of directors of the Company has not been advised of (i) any significant
deficiencies in the design or operation of internal controls which could
adversely affect the Company’s and the Subsidiaries’ ability to record,
process, summarize and report financial data nor any material weaknesses in
internal controls; and (ii) any fraud, whether or not material, that involves
management or other employees who have a significant role in the Company’s and
the Subsidiaries’ internal controls.

 

(cc)         Doing Business with Cuba.  The
Company confirms as of the date hereof that it is in compliance with all
provisions of Section 517.075 of the Florida Statutes, and the Company further
agrees that if it commences engaging in business with the government of Cuba or
with any person or affiliate located in Cuba after the date the Registration
Statement has become effective with the Commission or with the Florida
Department of Financial Services (the “Department”), whichever date is later,
or if the information reported in the Prospectus, if any, concerning the
Company’s business with Cuba or with any person or affiliate located in Cuba
changes in any material way, the Company will provide the Department notice of
such business or change, as appropriate, in a form acceptable to the
Department.

 

Any certificate signed by
an officer of the Company and delivered to the Underwriters or to counsel for
the Underwriters on the First Closing Date or the Second Closing Date shall be
deemed to be a representation and warranty by the Company to each Underwriter
as to the matters set forth therein.

 

SECTION 3.          Representations,
Warranties and Covenants of the Selling Stockholders.  Each Selling Stockholder, severally and not
jointly, hereby represents, warrants and covenants to each Underwriter as
follows:

 

(a)           The Underwriting Agreement and the Pricing Agreement.  This Agreement and the Pricing
Agreement have been duly executed and delivered by or on behalf of such Selling
Stockholder (and in the case of each Selling Stockholder that is a trust,
corporation or other legal entity, have been duly authorized by or on behalf of
such Selling Stockholder), and are valid and binding agreements of such Selling
Stockholder, enforceable in accordance with their terms, except as rights to
indemnification or contribution hereunder may be limited by applicable law and
except as the enforcement hereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles.

 

(b)           The Custody Agreement and Power of Attorney.  Each of the (i) Custody Agreement
signed by or on behalf of such Selling Stockholder and the Company, as
custodian

 

11

 

(the “Custodian”), relating to the
deposit of the Shares to be sold by such Selling Stockholder (the “Custody Agreement”) and (ii) Power of Attorney appointing
certain individuals named therein as such Selling Stockholder’s attorneys-in-fact
(each, an “Agent”) to the extent set forth therein
relating to the transactions contemplated hereby and by the Prospectus (the “Power of Attorney”), has been duly executed and delivered
by or on behalf of such Selling Stockholder (and in the case of each Selling
Stockholder that is a trust, corporation or other legal entity, have been duly
authorized by or on behalf of such Selling Stockholder), and is a valid and
binding agreement of such Selling Stockholder, enforceable in accordance with
its terms, except as rights to indemnification or contribution thereunder may
be limited by applicable law and except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by
general equitable principles.

 

(c)           Title to Shares to be Sold; All Authorizations Obtained.  Such Selling Stockholder has, and
on the First Closing Date and the Second Closing Date (as defined below) will
have, good and valid title to all of the Shares which may be sold by such
Selling Stockholder pursuant to this Agreement on such date or, in the case of
Shares to be acquired by such Selling Stockholder upon the exercise of stock
options, the vested right to acquire such Shares upon such exercise, and the
legal right and power, and all authorizations and approvals required by law to
enter into this Agreement, the Custody Agreement and its Power of Attorney, to
sell, transfer and deliver all of the Shares which may be sold by such Selling
Stockholder pursuant to this Agreement and to comply with its other obligations
hereunder and thereunder.

 

(d)           Delivery of the Shares to be Sold. 
Delivery of the Shares which are sold by such Selling
Stockholder pursuant to this Agreement will pass good and valid title to such
Shares, free and clear of any security interest, mortgage, pledge, lien,
encumbrance or other claim (other than any arising out of an action taken by an
Underwriter).

 

(e)           Non-Contravention; No Further Authorizations or Approvals
Required.  The execution and
delivery by such Selling Stockholder of, and the performance by such Selling
Stockholder of its obligations under, this Agreement, the Pricing Agreement,
the Custody Agreement and its Power of Attorney, the sale of the Shares to be
sold by such Selling Stockholder and the consummation by such Selling
Stockholder of the transactions herein and therein contemplated, will not
contravene or conflict with, result in a breach of, or constitute a Default
under, or require the consent of any other party to, any agreement or
instrument to which such Selling Stockholder is a party or by which it is bound
or under which it is entitled to any right or benefit, any provision of applicable
law or any judgment, order, decree or regulation applicable to such Selling
Stockholder of any court, regulatory body, administrative agency, governmental
body or arbitrator having jurisdiction over such Selling Stockholder, except
for any such contravention, conflict, breach or Default as to which the Company
has obtained prior to the

 

12

 

date hereof a valid waiver (a copy of which has been delivered to
counsel for the Underwriters) and any such consent as has been obtained by the
Company prior to the date hereof (a copy of which has been delivered to counsel
for the Underwriters).  No consent,
approval, authorization or other order of, or registration or filing with, any
court or other governmental authority or agency, is required for the
consummation by such Selling Stockholder of the transactions contemplated in
this Agreement, except such as have been obtained or made and are in full force
and effect under the Securities Act or applicable state securities or blue sky
laws and from the NASD.

 

(f)            No Registration or Other Similar Rights.  Such Selling Stockholder does not
have any registration or other similar rights to have any equity or debt
securities registered for sale by the Company under the Registration Statement
or included in the offering contemplated by this Agreement, except for such
rights as have been duly waived or complied with.

 

(g)           No Further Consents, etc.  No
consent, approval or waiver is required under any instrument or agreement to
which such Selling Stockholder is a party or by which it is bound or under
which it is entitled to any right or benefit, in connection with the offering,
sale or purchase by the Underwriters of any of the Shares which may be sold by
such Selling Stockholder under this Agreement or the consummation by such
Selling Stockholder of any of the other transactions contemplated hereby,
except any such consent, approval or waiver as has been obtained by such
Selling Stockholder prior to the date hereof, a copy of which has been
delivered to counsel for the Underwriters.

 

(h)           Disclosure Made by Such Selling Stockholder in the Prospectus.  All information furnished by or on
behalf of such Selling Stockholder in writing expressly for use in the
Registration Statement and Prospectus is, and on the First Closing Date and the
Second Closing Date will be, true, correct, and complete in all material
respects, and does not, and on the First Closing Date and the Second Closing
Date will not, contain any untrue statement of a material fact or omit to state
any material fact necessary to make such information not misleading.  Such Selling Stockholder confirms as accurate
the number of shares of Common Stock set forth opposite such Selling Stockholder’s
name in the Prospectus under the caption “Principal and Selling Stockholders”
(both prior to and after giving effect to the sale of the Shares).

 

(i)            No Price Stabilization or Manipulation. 
Such Selling Stockholder has not taken and will not take,
directly or indirectly, any action designed to or that might be reasonably
expected to cause or result in stabilization or manipulation of the price of
the Common Stock to facilitate the sale or resale of the Shares.

 

(j)            Registration Statement and Prospectus. 
Such Selling Stockholder has reviewed the Registration
Statement and the Prospectus and, to the knowledge of such Selling Stockholder,

 

13

 

neither the Registration Statement nor the Prospectus contains any
untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading.  Such Selling Stockholder has
no knowledge of any material fact, condition or information not disclosed in
the Registration Statement or the Prospectus which has had or may have a
Material Adverse Change and is not prompted to sell shares of Common Stock by
any information concerning the Company which is not set forth in the
Registration Statement and the Prospectus.

 

Any certificate signed by
or on behalf of any Selling Stockholder and delivered to the Underwriters or to
counsel for the Underwriters on the First Closing Date or the Second Closing
Date shall be deemed to be a representation and warranty by such Selling Stockholder
to each Underwriter as to the matters covered thereby.

 

Such Selling
Stockholder will not, without the prior written consent of J.P. Morgan
Securities Inc. and William Blair & Company, L.L.C. (together, the “Joint Bookrunners”) (which consent may be withheld at the
sole discretion of the Joint Bookrunners), directly or indirectly, sell, offer,
contract or grant any option to sell (including without limitation any short
sale), pledge, transfer, establish an open “put equivalent position” within the
meaning of Rule 16a-1(h) under the Exchange Act, or otherwise dispose of any
shares of Common Stock, options or warrants to acquire shares of Common Stock,
or securities exchangeable or exercisable for or convertible into shares of
Common Stock currently or hereafter owned either of record or beneficially (as
defined in Rule 13d-3 under the Exchange Act, except that a 90-day period shall
be used rather than the 60-day period set forth therein) by the undersigned, or
publicly announce the undersigned’s intention to do any of the foregoing, for a
period commencing on the date hereof and continuing through the close of
trading on the date 90 days after the date hereof; provided,
however, that such Selling Stockholder
may sell or otherwise transfer any such shares or securities (i) to the Company
and (ii) to immediate family members of such Selling Stockholder as a bona fide
gift, or to equity holders of such Selling Stockholder, provided such persons
agree in writing with the Joint Bookrunners not to sell, offer, dispose of or
otherwise transfer any such shares or securities during such 90-day period
without the prior written consent of the Joint Bookrunners (which consent may
be withheld at the sole discretion of the Joint Bookrunners).  Notwithstanding the 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.

 

In order to
document the Underwriter’s compliance with the reporting and withholding
provisions of the Internal Revenue Code of 1986, as amended, with respect to
the transactions herein contemplated, each of the Selling Stockholders agrees
to deliver to you prior to or on the First Closing

 

14

 

Date, as hereinafter defined, a properly completed and executed United
States Treasury Department Form W-8 or W-9 (or other applicable form of
statement specified by Treasury Department regulations in lieu thereof).

 

SECTION 4.          Purchase,
Sale and Delivery of Shares.  On the
basis of the representations, warranties and agreements herein contained, but
subject to the terms and conditions herein set forth, the Company and the
Selling Stockholders, severally and not jointly, agree to sell to the
Underwriters named in Schedule A hereto, and the Underwriters agree, severally
and not jointly, to purchase from the Company and the Selling Stockholders,
respectively, 710,000 Firm Shares from the Company and the respective number of
Firm Shares set forth opposite the names of the Selling Stockholders in
Schedule B hereto on the pricing terms as set forth in the Pricing
Agreement.  The obligation of each
Underwriter to the Company shall be to purchase from the Company that number of
full shares which (as nearly as practicable, as determined by you) bears to
710,000, the same proportion as the number of Shares set forth opposite the
name of such Underwriter in Schedule A hereto bears to the total number of Firm
Shares to be purchased by all Underwriters under this Agreement.  The obligation of each Underwriter to each
Selling Stockholder shall be to purchase from such Selling Stockholder the
number of full shares which (as nearly as practicable, as determined by you)
bears to that number of Firm Shares set forth opposite the name of such Selling
Stockholder in Schedule B hereto, the same proportion as the number of Shares
set forth opposite the name of such Underwriter in Schedule A hereto bears to
the total number of Firm Shares to be purchased by all Underwriters under this
Agreement.  The initial public offering
price and other pricing terms shall be set forth in the Pricing Agreement.

 

At
10:00 A.M., New York City Time, on June 29, 2005, or such other time not
later than ten business days after such date as shall be agreed upon by the
Representatives and the Company, the Company and the Custodian will deliver to
you at the offices of counsel for the Company or through the facilities of The
Depository Trust Company for the accounts of the several Underwriters,
certificates representing the Firm Shares to be sold by them, respectively,
against payment of the purchase price therefor by delivery of federal or other
immediately available funds, by wire transfer or otherwise, to the Company and
the Custodian.  Such time of delivery and
payment is herein referred to as the “First Closing Date.”
The certificates for the Firm Shares so to be delivered will be in such
denominations and registered in such names as you request by notice to the
Company and the Custodian prior to 10:00 A.M., New York City Time, on the
second business day preceding the First Closing Date, and will be made
available at the Company’s expense for checking and packaging by the
Representatives at 10:00 A.M., New York City Time, on the business day
preceding the First Closing Date. 
Payment for the Firm Shares so to be delivered shall be made at the time
and in the manner described above at the offices of counsel for the Company.

 

In addition, on
the basis of the representations, warranties and agreements herein contained,
but subject to the terms and conditions herein set forth, the Company and the
Selling Stockholders hereby grant an option to the several Underwriters to
purchase, severally and not jointly, up to an aggregate of

 

15

 

284,884 Option Shares, on the same pricing terms as the Firm Shares, for
use solely in covering any overallotments made by the Underwriters in the sale
and distribution of the Firm Shares.  The
option granted hereunder may be exercised at any time (but not more than once)
within 30 days after the date of this Agreement upon notice by you to the
Company and the Agents setting forth the aggregate number of Option Shares as
to which the Underwriters are exercising the option, the names and
denominations in which the certificates for such shares are to be registered
and the time and place at which such certificates will be delivered.  Such time of delivery (which may not be
earlier than the First Closing Date), being herein referred to as the “Second Closing Date,” shall be determined by you, but if at
any time other than the First Closing Date, shall not be earlier than three nor
later than 10 full business days after delivery of such notice of
exercise.  The number of Option Shares to
be purchased from the Company and the Selling Stockholders shall be the
respective number of Option Shares set forth opposite the names of the Company
and the Selling Stockholders in Schedule B hereto.  The number of Option Shares to be purchased
by each Underwriter shall be determined by multiplying the number of Option
Shares to be sold by the Company and the Selling Stockholders pursuant to such
notice of exercise by a fraction, the numerator of which is the number of Firm
Shares to be purchased by such Underwriter as set forth opposite its name in
Schedule A and the denominator of which is the total number of Firm Shares
(subject to such adjustments to eliminate any fractional share purchases as you
in your absolute discretion may make). 
Certificates for the Option Shares will be made available at the Company’s
expense for checking and packaging at 10:00 A.M., New York City Time, on
the business day preceding the Second Closing Date.  The manner of payment for and delivery of the
Option Shares shall be the same as for the Firm Shares as specified in the preceding
paragraph.

 

You have advised
the Company and the Selling Stockholders that each Underwriter has authorized
you to accept delivery of its Shares, to make payment and to give receipt
therefor.  You, individually and not as
the Representatives of the Underwriters, may make payment for any Shares to be
purchased by any Underwriter whose funds shall not have been received by you by
the First Closing Date or the Second Closing Date, as the case may be, for the
account of such Underwriter, but any such payment shall not relieve such
Underwriter from any obligation hereunder.

 

SECTION 5.          Covenants
of the Company.  The Company
covenants and agrees that:

 

(a)           The
Company will notify you and the Selling Stockholders promptly of the issuance
by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of the institution of any proceedings for that
purpose, or of any notification of the suspension of qualification of the
Shares for sale in any jurisdiction or the initiation or threatening of any
proceedings for that purpose, and will also notify you and the Selling
Stockholders promptly of any request of the Commission for amendment or
supplement of the Registration Statement, of any preliminary prospectus or of
the Prospectus, or for additional information.

 

16

 

(b)           The
Company will give you and the Selling Stockholders notice of its intention to
file or prepare any amendment to the Registration Statement (including any
post-effective amendment) or any Rule 462(b) Registration Statement or any
amendment or supplement to the Prospectus (including any revised prospectus
which the Company proposes for use by the Underwriters in connection with the
offering of the Shares which differs from the prospectus on file at the
Commission at the time the Registration Statement became effective, whether or
not such revised prospectus is required to be filed pursuant to Rule 424(b),
and any term sheet as contemplated by Rule 434) and will furnish you and the
Selling Stockholders with copies of any such amendment or supplement a
reasonable amount of time prior to such proposed filing or use, as the case may
be, and will not file any such amendment or supplement or use any such
prospectus to which you or counsel for the Underwriters shall reasonably
object.

 

(c)           If the
Company elects to rely on Rule 434 of the Securities Act, the Company will
prepare a term sheet that complies with the requirements of Rule 434.  If the Company elects not to rely on
Rule 434, the Company will provide the Underwriters with copies of the
form of prospectus, in such numbers as the Underwriters may reasonably request,
and file with the Commission such prospectus in accordance with Rule 424(b) of
the Securities Act by the close of business in New York City on the second
business day immediately succeeding the date of the Pricing Agreement.  If the Company elects to rely on Rule 434,
the Company will provide the Underwriters with copies of the form of Rule 434
Prospectus, in such numbers as the Underwriters may reasonably request, by the
close of business in New York City on the business day immediately succeeding
the date of the Pricing Agreement.

 

(d)           If at any
time when a prospectus relating to the Shares is required to be delivered under
the Securities Act any event occurs as a result of which the Prospectus,
including any amendments or supplements, would include an untrue statement of a
material fact, or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or if it is necessary at any time
to amend the Prospectus, including any amendments or supplements thereto and
including any revised prospectus which the Company proposes for use by the Underwriters
in connection with the offering of the Shares which differs from the prospectus
on file with the Commission at the time of effectiveness of the Registration
Statement, whether or not such revised prospectus is required to be filed
pursuant to Rule 424(b) to comply with the Securities Act, the Company promptly
will advise you thereof and will promptly prepare and file with the Commission
an amendment or supplement which will correct such statement or omission or an
amendment which will effect such compliance; and, in case any Underwriter is
required to deliver a prospectus nine months or more after the effective date
of the Registration Statement, the Company upon request, but at the expense of
such Underwriter, will prepare promptly such prospectus or prospectuses as may
be necessary to permit compliance with the requirements of Section 10(a)(3) of
the Securities Act.

 

17

 

(e)           Neither
the Company nor any of the Subsidiaries will, prior to the earlier of the
Second Closing Date or termination or expiration of the related option, incur
any liability or obligation, direct or contingent, or enter into any material
transaction, other than in the ordinary course of business, except as
contemplated by the Prospectus.

 

(f)            Neither
the Company nor any of the Subsidiaries will acquire any capital stock of the
Company prior to the earlier of the Second Closing Date or termination or
expiration of the related option nor will the Company declare or pay any
dividend or make any other distribution upon the Common Stock payable to
stockholders of record on a date prior to the earlier of the Second Closing
Date or termination or expiration of the related option, except in either case
as contemplated by the Prospectus.

 

(g)           Not later
than October 11, 2006 the Company will make generally available to its security
holders an earnings statement (which need not be audited) covering a period of
at least 12 months beginning after the effective date of the Registration
Statement, which will satisfy the provisions of the last paragraph of Section
11(a) of the Securities Act.

 

(h)           During
such period as a prospectus is required by law to be delivered in connection
with offers and sales of the Shares by an Underwriter or dealer, the Company
will furnish to you at its expense, subject to the provisions of subsection (d)
hereof, copies of the Registration Statement, the Prospectus, each preliminary
prospectus, the Incorporated Documents and all amendments and supplements to
any such documents in each case as soon as available and in such quantities as
you may reasonably request, for the purposes contemplated by the Securities
Act.

 

(i)            The
Company will cooperate with the Underwriters in qualifying or registering the
Shares for sale under the blue sky laws of such jurisdictions as you designate,
and will continue such qualifications in effect so long as reasonably required
for the distribution of the Shares.  The
Company shall not be required to qualify as a foreign corporation or to file a
general consent to service of process in any such jurisdiction where it is not
currently qualified or where it would be subject to taxation as a foreign
corporation.

 

(j)            During
the period of five years hereafter, the Company will furnish you and each of
the other Underwriters with a copy (i) as soon as practicable after the
filing thereof, of each report filed by the Company with the Commission, any
securities exchange or the NASD; (ii) as soon as practicable after the release
thereof, of each material press release in respect of the Company; and
(iii) as soon as available, of each report of the Company mailed to
stockholders.  Any report or release
accessible to the public in electronic format on the website of the Commission
or the Company shall be deemed furnished hereunder.

 

18

 

(k)           The
Company will use the net proceeds received by it from the sale of the Shares
being sold by it in the manner specified in the Prospectus.

 

(l)            If, at
the time of effectiveness of the Registration Statement, any information shall
have been omitted therefrom in reliance upon Rule 430A and/or Rule 434, then
immediately following the execution of the Pricing Agreement, the Company will
prepare, and file or transmit for filing with the Commission in accordance with
such Rule 430A, Rule 424(b) and/or Rule 434, copies of an amended Prospectus,
or, if required by such Rule 430A and/or Rule 434, a post-effective amendment
to the Registration Statement (including an amended Prospectus), containing all
information so omitted.  If required, the
Company will prepare and file, or transmit for filing, a Rule 462(b)
Registration Statement not later than the date of the execution of the Pricing
Agreement.  If a Rule 462(b) Registration
Statement is filed, the Company shall make payment of, or arrange for payment
of, the additional registration fee owing to the Commission required by Rule
111.

 

(m)          During such
period as a prospectus is required by law to be delivered in connection with
offers and sales of the Shares by an Underwriter or dealer, the Company will
comply with all registration, filing and reporting requirements of the Exchange
Act and the Nasdaq National Market.

 

(n)           During the
period of 90 days following the date of the Prospectus, the Company will not,
without the prior written consent of the Joint Bookrunners (which consent may
be withheld at the sole discretion of the Joint Bookrunners), directly or
indirectly, sell, offer, contract or grant any option to sell, pledge, transfer
or establish an open “put equivalent position” within the meaning of Rule 16a-1(h)
under the Exchange Act, or otherwise dispose of or transfer, or announce the
offering of, or file any registration statement under the Securities Act in
respect of, any shares of Common Stock, options or warrants to acquire shares
of the Common Stock or securities exchangeable or exercisable for or
convertible into shares of Common Stock (other than as contemplated by this
Agreement with respect to the Shares); provided, however, that the Company may do any or all of the
following:  (i) issue shares of its
Common Stock or options to purchase its Common Stock, or Common Stock upon
exercise of options, pursuant to any stock option, stock bonus or other stock
plan or arrangement described in the Prospectus; (ii) file one or more
registration statements on Form S-8 covering shares of Common Stock issuable
pursuant to any stock option or stock purchase plan described in the
Prospectus; or (iii) issue shares of Common Stock, or securities exchangeable
or exercisable for or convertible into shares of Common Stock, constituting “restricted
securities” as defined in the rules and regulations of the Securities Act, (x)
as payment for all or part of the purchase price of an acquisition by the
Company of another company or business, provided the total number of shares of
Common Stock issuable in connection with such acquisition or acquisitions
(including shares issuable upon exchange, exercise or conversion of any other
securities of the Company issued in connection

 

19

 

therewith) does not exceed 500,000 shares in the aggregate (subject to
appropriate adjustment in the event of any stock split, stock dividend,
combination of shares or the like) or (y) in exchange for the GBP 2.1 million
in loan notes issued by the Company as partial consideration in connection with
its June 16, 2005 acquisition of Economics of Competition and Litigation
Limited.  Notwithstanding the 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.

 

SECTION 6.          Payment
of Expenses.  Whether or not the
transactions contemplated hereunder are consummated or this Agreement becomes
effective as to all of its provisions or is terminated, the Company agrees to
pay (i) all costs, fees and expenses (other than legal fees and
disbursements of counsel for the Underwriters and the expenses incurred by the
Underwriters) incurred in connection with the performance of the Company’s
obligations hereunder, including without limiting the generality of the
foregoing, all fees and expenses of legal counsel for the Company and of the
Company’s independent accountants, all costs and expenses incurred in
connection with the preparation, printing, filing and distribution of the
Registration Statement, each preliminary prospectus and the Prospectus
(including all Incorporated Documents, exhibits and financial statements) and
all amendments and supplements provided for herein, this Agreement, the Pricing
Agreement and a blue sky memorandum relating to the Shares, (ii) all
costs, fees and expenses (including legal fees not to exceed $3,000 and
disbursements of counsel for the Underwriters) incurred by the Underwriters in
connection with qualifying or registering all or any part of the Shares for
offer and sale under blue sky laws, including the preparation of a blue sky
memorandum relating to the Shares and clearance of such offering with the NASD,
(iii) all fees and expenses of the Company’s transfer agent, printing of
the certificates for the Shares and all transfer taxes, if any, with respect to
the sale and delivery of the Shares to the several Underwriters, and (iv) all
costs and expenses incurred by the Company in connection with any “road show”
presentation to potential investors.

 

The provisions of
this Section shall not affect any agreement which the Company and the Selling
Stockholders may make for the allocation or sharing of such expenses and costs.

 

SECTION 7.          Conditions
of the Obligations of the Underwriters. 
The obligations of the several Underwriters to purchase and pay for the
Firm Shares on the First Closing Date and the Option Shares on the Second
Closing Date shall be subject to the accuracy of the representations and
warranties on the part of the Company and the Selling Stockholders herein set
forth as of the date hereof and as of the First Closing Date or the Second
Closing Date, as the case may be, to the accuracy of the statements of officers
of the Company made pursuant to the provisions hereof, to the performance by
the Company

 

20

 

and the Selling Stockholders of their respective obligations hereunder,
and to the following additional conditions:

 

(a)           The
Registration Statement (or if a post-effective amendment thereto is required to
be filed under the Securities Act, such post-effective amendment) has become
effective under the Securities Act, the Prospectus was filed with the
Commission in the manner specified in and within the time period required by
Rule 424(b), no stop order suspending the effectiveness of the Registration
Statement or any part thereof has been issued and no proceedings for that
purpose have been instituted or are pending or, to the knowledge of the
Company, the Selling Stockholders or you, are contemplated by the
Commission.  If the Company has elected
to rely upon Rule 430A and/or Rule 434, the information concerning the initial
public offering price of the Shares and price-related information shall have
been transmitted to the Commission for filing pursuant to Rule 424(b) within
the prescribed period and the Company will provide evidence satisfactory to the
Representatives of such timely filing (or a post-effective amendment providing
such information shall have been filed and declared effective in accordance
with the requirements of Rules 430A and 424(b)).  If a Rule 462(b) Registration Statement is
required, such Registration Statement shall have been transmitted to the
Commission for filing and become effective within the prescribed time period
and, prior to the First Closing Date, the Company shall have provided evidence
of such filing and effectiveness in accordance with Rule 462(b).

 

(b)           The Shares
shall have been qualified for sale under the blue sky laws of such states as
shall have been specified by the Representatives.

 

(c)           The
legality and sufficiency of the authorization, issuance and sale or transfer
and sale of the Shares hereunder, the validity and form of the certificates
representing the Shares, the execution and delivery of this Agreement and the
Pricing Agreement, and all corporate proceedings and other legal matters
incident thereto, and the form of the Registration Statement and the Prospectus
(except financial statements) shall have been approved by counsel for the Underwriters
exercising reasonable judgment.

 

(d)           You shall
not have advised the Company that the Registration Statement or the Prospectus
or any amendment or supplement thereto, contains an untrue statement of fact,
which, in the opinion of counsel for the Underwriters, is material or omits to
state a fact which, in the opinion of such counsel, is material and is required
to be stated therein or necessary to make the statements therein not
misleading.

 

(e)           Subsequent
to the execution and delivery of this Agreement, there shall not have occurred
any change, or any development involving a prospective change, in or affecting
particularly the business or properties of the Company or the Subsidiaries,
whether or not arising in the ordinary course of business, which, in the
judgment of the Representatives, makes it

 

21

 

impractical or inadvisable to proceed with the public offering or
purchase of the Shares as contemplated hereby.

 

(f)            The
Shares to be delivered on the First Closing Date or the Second Closing Date, as
the case may be, shall have been approved for listing on the Nasdaq National
Market, or, if such approval is not required, the Nasdaq National Market shall
have received notice of the issuance of such Shares in accordance with the
rules thereof.

 

(g)           The “lock-up”
agreements, each substantially in the form of Exhibit B hereto, between you and
certain shareholders, officers and directors of the Company relating to sales
and certain other dispositions of shares of Common Stock or certain other
securities, delivered to you on or before the date hereof, shall be in full
force and effect on the First Closing Date or the Second Closing Date, as the
case may be.

 

(h)           Subsequent
to the execution and delivery of this Agreement, (i) no downgrading shall have
occurred in the rating accorded any securities or preferred stock of or
guaranteed by the 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 any
securities or preferred stock of or guaranteed by the Company or any of its
subsidiaries (other than an announcement with positive implications of a
possible upgrading).

 

(i)            There
shall have been furnished to you, as Representatives of the Underwriters, on
the First Closing Date or the Second Closing Date, as the case may be, except
as otherwise expressly provided below:

 

(i)            An
opinion of Foley Hoag LLP, counsel for the Company and for the Selling
Stockholders, addressed to you and dated the First Closing Date or the Second
Closing Date, as the case may be, to the effect that:

 

(1)           The
Company has been duly incorporated and is validly existing as a corporation in
good standing under the laws of The Commonwealth of Massachusetts;

 

(2)           The
Company has corporate power and authority to own, lease and operate its
properties and to conduct its business as described in the Prospectus and to
enter into and perform its obligations under this Agreement;

 

22

 

(3)           The
Company is duly qualified as a foreign corporation to transact business and is
in good standing in the States of Illinois, New York, Texas, California,
Pennsylvania, and Utah;

 

(4)           Each of
CRA Security Corporation and NeuCo, Inc. has been duly organized and is validly
existing as a corporation in good standing under the laws of the jurisdiction
of its organization, has the power and authority to own, lease and operate its
properties and to conduct its business as described in the Prospectus and, to
the best knowledge of such counsel, is duly qualified to transact business and
is in good standing in the Commonwealth of Massachusetts;

 

(5)           The
Company is the record owner of all of the outstanding capital stock of CRA
Security Corporation, and to the best knowledge of such counsel, such stock is
owned free and clear of any perfected encumbrances or security interests; all
of the issued and outstanding capital stock of CRA Security Corporation has
been duly authorized, validly issued and is fully paid and nonassessable;

 

(6)           Immediately
prior to the issuance and sale of the Shares pursuant to this Agreement on the
date hereof, the authorized capital stock of the Company was comprised of
25,000,000 shares of Common Stock, without par value, and 1,000,000 shares of
Preferred Stock, without par value, none of which were outstanding of
record.  The capital stock of the Company
(including the Common Stock) conforms to the descriptions thereof set forth in
the Prospectus under the heading “Description of Capital Stock.”  The form of certificate used to evidence the
Common Stock is in due and proper form and complies with all applicable
requirements of the charter and by-laws of the Company and the Business
Corporation Law of The Commonwealth of Massachusetts.  The description of the Company’s stock option
and stock purchase plans set forth in the Prospectus is an accurate and fair
description in all material respects of such plans;

 

(7)           No
stockholder of the Company or any other person has any preemptive right, right
of first refusal or other similar right to subscribe for or purchase securities
of the Company arising (i) by operation of the charter or by-laws of the
Company or the Business Corporation Law of The Commonwealth of Massachusetts or
(ii) to the best knowledge of such counsel, otherwise;

 

23

 

(8)           The
execution and delivery of this Agreement and the Pricing Agreement by the
Company and the performance by the Company of its obligations hereunder and
thereunder have been duly authorized by all necessary corporate action, and
this Agreement and the Pricing Agreement have been duly executed and delivered
by and on behalf of the Company, and are legal, valid and binding agreements of
the Company, enforceable against the Company in accordance with their
respective terms, except as rights to indemnification or contribution
thereunder may be limited by applicable law and except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws relating to or affecting creditors’ rights generally or by
general equitable principles;

 

(9)           The Shares
to be purchased by the Underwriters from the Company have been duly authorized
for issuance and sale pursuant to this Agreement and, when issued and delivered
by the Company pursuant to this Agreement against payment of the consideration
set forth therein, will be validly issued, fully paid and nonassessable;

 

(10)         Based solely
on the oral advice of the staff of the Commission, the Registration Statement
has been declared effective by the Commission under the Securities Act.  To the best knowledge of such counsel, no
stop order suspending the effectiveness of either the Registration Statement or
the Rule 462(b) Registration Statement, if any, has been issued under the
Securities Act and, to the best knowledge of such counsel, no proceedings for
such purpose have been instituted or are pending or are contemplated or
threatened by the Commission.  Any
required filing of the Prospectus under Rule 424(b) under the Securities Act
has been made in the manner and within the time period required by such Rule
424(b);

 

(11)         The
Registration Statement, the Prospectus and each amendment or supplement to the
Registration Statement and the Prospectus (including any document incorporated
by reference therein), as of their respective effective or issue dates (other
than the financial statements and supporting schedules included or incorporated
by reference therein, as to which no opinion need be rendered), comply as to
form in all material respects with the applicable requirements of the
Securities Act and the Exchange Act. 
Such counsel may state that it is rendering no opinion as to the
accuracy of any financial or accounting data contained therein;

 

24

 

(12)         The
statements (i) in the Prospectus under the captions “Description of Capital
Stock,” “Management’s Discussion and Analysis of Financial Condition and
Results of Operations—Liquidity and Capital Resources,” and “Business—Legal
Proceedings,” and (ii) in Item 15 of the Registration Statement, insofar as
such statements constitute matters of law, summaries of legal matters, the
Company’s charter or by-law provisions, documents or legal proceedings, or
legal conclusions, have been reviewed by such counsel and fairly present and
summarize, in all material respects, the matters referred to therein;

 

(13)         To the best
knowledge of such counsel, there are no legal or governmental actions, suits or
proceedings pending or threatened which are required to be disclosed in the
Registration Statement, other than those disclosed therein;

 

(14)         To the best
knowledge of such counsel, there are no Existing Instruments required to be
described or referred to in the Registration Statement or to be filed as
exhibits thereto other than those described or referred to therein or filed or
incorporated by reference as exhibits thereto; and the descriptions thereof and
references thereto are correct in all material respects;

 

(15)         No consent,
approval, authorization or other order of, or registration or filing with, any
court or other governmental authority or agency, is required for the execution,
delivery and performance by the Company of the Underwriting Agreement and the
Pricing Agreement, the issuance and sale of the Shares to be sold by the
Company, and consummation by the Company of the transactions contemplated by
the Underwriting Agreement and by the Prospectus, except as required under the
Securities Act or applicable state securities or blue sky laws and from the
NASD;

 

(16)         The
execution and delivery of this Agreement by the Company and the performance by
the Company of its obligations thereunder (other than performance by the
Company of its obligations under the indemnification and contribution sections
of this Agreement, as to which no opinion need be rendered) (i) will not result
in any violation of the provisions of the charter, bylaws or other
organizational documents of the Company; (ii) will not constitute a breach of,
or Default under, or result in the creation or imposition of any lien, charge
or encumbrance upon any property or assets of the Company pursuant to, any
agreement filed as an exhibit to any annual, quarterly or current report
incorporated by reference in the Prospectus; or (iii) to the best knowledge

 

25

 

of such counsel, will not result in any violation of any law,
administrative regulation or administrative or court decree applicable to the
Company;

 

(17)         The Company
is not, and after receipt of payment for the Shares sold by it will not be, an “investment
company” within the meaning of the Investment Company Act;

 

(18)         To the best
knowledge of such counsel, there are no persons with registration or other
similar rights to have any equity or debt securities registered for sale under
the Registration Statement or included in the offering contemplated by the
Underwriting Agreement, except for such rights as have been duly waived or
complied with;

 

(19)         This
Agreement and the Pricing Agreement have been duly executed and delivered by or
on behalf of, and are valid and binding agreements of, each Selling
Stockholder, enforceable against each Selling Stockholder in accordance with
their respective terms, except as rights to indemnification or contribution thereunder
may be limited by applicable law and except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting creditors’ rights generally or by general
equitable principles;

 

(20)         The
execution and delivery by each Selling Stockholder of, and the performance by
such Selling Stockholder of his or her obligations under, this Agreement, the
Pricing Agreement and the Custody Agreement and his or her Power of Attorney
will not, to the best knowledge of such counsel, violate or contravene any
provision of applicable law or regulation;

 

(21)         Each Selling
Stockholder is the sole record owner of all of the Shares which may be sold by
such Selling Stockholder under this Agreement and, to the best knowledge of
such counsel, has the legal right and power to enter into this Agreement and
the Custody Agreement and his or her Power of Attorney, to sell, transfer and
deliver all of the Shares which may sold by such Selling Stockholder under this
Agreement and to comply with his or her other obligations under this Agreement,
the Custody Agreement and his or her Power of Attorney;

 

(22)         Each of the
Custody Agreement and the Power of Attorney of each Selling Stockholder has
been duly executed and delivered by or on behalf of such Selling Stockholder
and is a valid and binding agreement of such Selling

 

26

 

Stockholder, enforceable against such Selling Stockholder in accordance
with its terms, except as rights to indemnification or contribution thereunder
may be limited by applicable law and except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting creditors’ rights generally or by general
equitable principles;

 

(23)         Assuming
that the Underwriters purchase the Shares which are sold by such Selling
Stockholder pursuant to this Agreement for value and without notice of any
adverse claim (within the meaning of Section 8-303 of Chapter 106 of the
Massachusetts General Laws) to the Shares, the delivery of such Shares pursuant
to this Agreement will pass good and valid title to such Shares, free and clear
of any such adverse claim; and

 

(24)         To the best
knowledge of such counsel, no consent, approval, authorization or other order
of, or registration or filing with, any court or governmental authority or
agency, is required for the consummation by such Selling Stockholder of the
transactions contemplated in this Agreement, except as required under the
Securities Act or applicable state securities or blue sky laws, and from the
NASD.

 

Certain of the opinions as set forth above may be
limited by such counsel as follows:  In
basing the opinions and other matters set forth herein on the “knowledge of
such counsel,” the words “to the best knowledge of such counsel” signify that,
in the course of such counsel’s representation of the Company and the Selling
Stockholders as aforesaid, no information has come to such counsel’s attention
that has given counsel actual knowledge or actual notice that any such opinions
or other matters are not accurate or that any of the foregoing documents,
certificates and information on which counsel has relied are not true and
complete in all material respects. 
Except as stated herein, the words “to the best knowledge of such
counsel” and similar language used in certain of the opinions set forth above
(i) are limited to the knowledge of the lawyers currently within such counsel’s
firm who have worked on the transactions contemplated by this Agreement, (ii)
in the case of the opinion expressed in numbered paragraph 13 above, the
knowledge of lawyers currently within such counsel’s firm who have given
substantive attention to transactions or litigation involving the Company, and
(iii) in the case of the opinion expressed in numbered paragraph 10 above, the
knowledge of lawyers currently within such counsel’s firm who have given
substantive attention to transactions involving the Company during the two year
period prior to the date hereof.

 

In addition, such counsel shall state that they have
participated in conferences with officers and other representatives of the
Company, representatives of the independent public or

 

27

 

certified public accountants for the Company and with representatives
of the Underwriters at which the contents of the Registration Statement and the
Prospectus, and any supplements or amendments thereto, and related matters were
discussed and, although such counsel is not passing upon and does not assume
any responsibility for the accuracy, completeness or fairness of the statements
contained in the Registration Statement or the Prospectus (other than as
specified above), and any supplements or amendments thereto, and (except as
specifically set forth in this opinion) have not made any independent
confirmation or verification thereof, on the basis of the foregoing, nothing
has come to their attention which would lead them to believe either that the
Registration Statement or any amendments thereto, at the time the Registration
Statement or such amendments became effective, contained an untrue statement of
a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading or that the
Prospectus, as of its date or at the First Closing Date or the Second Closing
Date, as the case may be, contained an untrue statement of a material fact or
omitted 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 (it being understood that such counsel need express no belief as to
the financial statements or schedules or other financial data or other data
derived therefrom, included in the Registration Statement or the Prospectus or
any amendments or supplements thereto).

 

In rendering such
opinion, such counsel may rely (A) as to matters involving the application of
laws of any jurisdiction other than those of The Commonwealth of Massachusetts,
the General Corporation Law of the State of Delaware and the federal law of the
United States, to the extent they deem proper and specified in such opinion,
upon the opinion (which shall be dated the First Closing Date or the Second
Closing Date, as the case may be, shall be satisfactory in form and substance
to the Representatives, shall expressly state that the Underwriters may rely on
such opinion as if it were addressed to them and shall be furnished to the
Representatives) of other counsel of good standing whom they believe to be
reliable and who are satisfactory to counsel for the Underwriters; provided, however, that
such counsel shall further state that they believe that they and the Underwriters
are justified in relying upon such opinion of other counsel, and (B) as to
matters of fact, to the extent they deem proper, on certificates of responsible
officers of the Company and public officials.

 

(ii)           Such
opinion or opinions of Winston & Strawn LLP, counsel for the Underwriters,
dated the First Closing Date or the Second Closing Date, as the case may be,
with respect to such matters as may be reasonably requested by the
Underwriters, and the Company shall have furnished to such counsel such documents
and shall have exhibited to them such papers and records as they reasonably
request for the purpose of enabling them to pass upon such matters.

 

28

 

(iii)          A
certificate of the chief executive officer and the principal financial officer
of the Company, dated the First Closing Date or the Second Closing Date, as the
case may be, to the effect that:

 

(1)           the
representations and warranties of the Company set forth in Section 2 of this
Agreement are true and correct as of the date of this Agreement and as of the
First Closing Date or the Second Closing Date, as the case may be, and the
Company has complied with all the agreements and satisfied all the conditions
on its part to be performed or satisfied at or prior to such Closing Date; and

 

(2)           the
Commission has not issued an order preventing or suspending the use of the
Prospectus or any preliminary prospectus filed as a part of the Registration
Statement or any amendment thereto; no stop order suspending the effectiveness
of the Registration Statement has been issued; and to the best knowledge of the
respective signers, no proceedings for that purpose have been instituted or are
pending or contemplated under the Securities Act.

 

The delivery of the certificate provided for in this subparagraph shall
be and constitute a representation and warranty of the Company as to the facts
required in the immediately foregoing clauses (1) and (2) of this subparagraph
to be set forth in said certificate.

 

(iv)          A
certificate of each Selling Stockholder dated the First Closing Date or the
Second Closing Date, as the case may be, to the effect that the
representations, warranties and covenants of such Selling Stockholder set forth
in Section 3 of this Agreement are true and correct as of such date and
the Selling Stockholder has complied with all the agreements and satisfied all
the conditions on the part of such Selling Stockholder to be performed or
satisfied at or prior to such date.

 

(v)           At the
time the Pricing Agreement is executed and also on the First Closing Date or
the Second Closing Date, as the case may be, there shall be delivered to you a
letter addressed to you, as Representatives of the Underwriters, from Ernst
& Young LLP, independent accountants, the first one to be dated the date of
the Pricing Agreement, the second one to be dated the First Closing Date and
the third one (in the event of a second closing) to be dated the Second Closing
Date, to the effect set forth in Schedule C. 
There shall not have been any change or decrease specified in the
letters referred to in this subparagraph which makes it impractical or
inadvisable in the judgment of the Representatives to proceed with the public
offering or purchase of the Shares as contemplated hereby.

 

29

 

(vi)          Such
further certificates and documents as you may reasonably request.

 

All such opinions,
certificates, letters and documents shall be in compliance with the provisions
hereof only if they are satisfactory to you and to Winston & Strawn LLP,
counsel for the Underwriters, which approval shall not be unreasonably
withheld.  The Company shall furnish you
with such manually signed or conformed copies of such opinions, certificates,
letters and documents as you reasonably request.

 

If any condition
to the Underwriters’ obligations hereunder to be satisfied prior to or at the
First Closing Date is not so satisfied, this Agreement at your election will
terminate upon notification to the Company and the Selling Stockholders without
liability on the part of any Underwriter or the Company or any Selling
Stockholder, except for the expenses to be paid or reimbursed by the Company
pursuant to Sections 6 and 8 hereof and except to the extent provided in
Section 10 hereof.

 

SECTION 8.          Reimbursement
of Underwriters’ Expenses.  If the
sale to the Underwriters of the Shares on the First Closing Date is not
consummated because any condition of the Underwriters’ obligations hereunder is
not satisfied or because of any refusal, inability or failure on the part of
the Company or the Selling Stockholders to perform any agreement herein or to
comply with any provision hereof, unless such failure to satisfy such condition
or to comply with any provision hereof is due to the default or omission of any
Underwriter, the Company agrees to reimburse you upon demand for all
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
that shall have been reasonably incurred by you in connection with the proposed
purchase and the sale of the Shares.  Any
such termination shall be without liability of any party to any other party
except that the provisions of this Section, Section 6 and Section 10 shall at
all times be effective and shall apply.

 

SECTION 9.          Effectiveness
of Registration Statement.  You, the
Company and the Selling Stockholders will use your, its and their reasonable
best efforts to prevent the issuance of any stop order suspending the
effectiveness of the Registration Statement and, if such stop order be issued,
to obtain as soon as possible the lifting thereof.

 

SECTION 10.        Indemnification.  (a) The Company and each Selling Stockholder,
jointly and severally, agree to indemnify and hold harmless each Underwriter,
its affiliates, officers, directors and employees, and each person, if any, who
controls any Underwriter within the meaning of the Securities Act or the
Exchange Act against any losses, claims, damages or liabilities, joint or
several, to which such Underwriter, affiliate, officer, director or employee or
such controlling person may become subject under the Securities Act, the
Exchange Act or other federal or state statutory law or regulation, at common
law or otherwise (including in settlement of any litigation if such settlement
is effected with the written consent of the Company and/or such Selling
Stockholders, as the case may be), insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the Registration Statement,

 

30

 

including the information deemed to be part of the Registration
Statement at the time of effectiveness pursuant to Rule 430A and/or Rule 434,
if applicable, any preliminary prospectus, the Prospectus, or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading; and will reimburse
each Underwriter and each such controlling person for any legal or other
expenses reasonably incurred by such Underwriter or such controlling person in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however,
that neither the Company nor any Selling Stockholder will be liable in any such
case to the extent that (i) any such loss, claim, damage or liability (or
action in respect thereof) arises out of or is based upon an untrue statement
or alleged untrue statement or omission or alleged omission made in the
Registration Statement, any preliminary prospectus, the Prospectus or any
amendment or supplement thereto in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Underwriter through
the Representatives, specifically 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; or (ii) if such
statement or omission was contained or made in any preliminary prospectus and
corrected in the Prospectus and (1) any such loss, claim, damage or
liability suffered or incurred by any Underwriter (or any person who controls
any Underwriter) resulted from an action, claim or suit by any person who
purchased Shares which are the subject thereof from such Underwriter in the
offering and (2) such Underwriter failed to deliver or provide a copy of
the Prospectus to such person at or prior to the confirmation of the sale of
such Shares in any case where such delivery is required by the Securities
Act.  In addition to their other
obligations under this Section 10(a), the Company and the Selling
Stockholders agree that, as an interim measure during the pendency of any
claim, action, investigation, inquiry or other proceeding arising out of or
based upon any statement or omission, or any alleged statement or omission,
described in this Section 10(a), they will reimburse the Underwriters on a
monthly basis for all reasonable legal and other expenses incurred in
connection with investigating or defending any such claim, action,
investigation, inquiry or other proceeding, notwithstanding the absence of a
judicial determination as to the propriety and enforceability of the Company’s
and the Selling Stockholders’ obligation to reimburse the Underwriters for such
expenses and the possibility that such payments might later be held to have
been improper by a court of competent jurisdiction.  This indemnity agreement will be in addition
to any liability which the Company and the Selling Stockholders may otherwise
have.

 

Without limiting
the full extent of the Company’s agreement to indemnify each Underwriter, as
herein provided, the liability of each Selling Stockholder under the indemnity
and reimbursement agreements in this Section, or otherwise for a breach of such
Selling Stockholder’s representations or warranties set forth in this
Agreement, shall be limited to an amount equal to the public offering price of
the Shares sold by such Selling Stockholder, less the underwriting discount, as
set forth on the front cover page of the Prospectus.  The Company and the Selling Stockholders may
agree, among themselves and without limiting the rights of the Underwriters
under this Agreement, as to the respective amounts of such liability for which
they each shall be responsible.

 

31

 

(b)           Each
Underwriter will severally (but not jointly) indemnify and hold harmless the
Company, each of its directors, each of its officers who signed the
Registration Statement, each Selling Stockholder and each person, if any, who
controls the Company or any Selling Stockholder within the meaning of the
Securities Act or the Exchange Act, against any losses, claims, damages or
liabilities to which the Company, or any such director, officer, Selling
Stockholder or controlling person may become subject under the Securities Act,
the Exchange Act or other federal or state statutory law or regulation, at
common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of such Underwriter), insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue or alleged untrue statement of any
material fact contained in the Registration Statement, any preliminary
prospectus, the Prospectus, or any amendment or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged
omission was made in the Registration Statement, any preliminary prospectus,
the Prospectus, or any amendment or supplement thereto in reliance upon and in
conformity with written information furnished to the Company by such
Underwriter through the Representatives specifically for use in the preparation
thereof, it being understood and agreed upon that the only such information
furnished by any Underwriter consists of the information in the Prospectus set
forth in the 3rd, 8th, 14th and 15th paragraphs, and the last sentence of the
16th paragraph, of the section entitled “Underwriting”; and will reimburse any
legal or other expenses reasonably incurred by the Company, or any such
director, officer, Selling Stockholder or controlling person in connection with
investigating or defending any such loss, claim, damage, liability or
action.  In addition to their other
obligations under this Section 10(b), the Underwriters agree that, as an
interim measure during the pendency of any claim, action, investigation,
inquiry or other proceeding arising out of or based upon any statement or
omission, or any alleged statement or omission, described in this
Section 10(b), they will reimburse the Company and the Selling Stockholders
on a monthly basis for all reasonable legal and other expenses incurred in
connection with investigating or defending any such claim, action,
investigation, inquiry or other proceeding, notwithstanding the absence of a
judicial determination as to the propriety and enforceability of the
Underwriters’ obligation to reimburse the Company and the Selling Stockholders
for such expenses and the possibility that such payments might later be held to
have been improper by a court of competent jurisdiction.  This indemnity agreement will be in addition
to any liability which such Underwriter may otherwise have.

 

(c)           Promptly
after receipt by an indemnified party under this Section of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against an indemnifying party under this Section 10,
notify the indemnifying party of the commencement thereof; but the omission so
to notify the indemnifying party will not relieve it from any liability which
it may have to any indemnified party under this Section 10 except to the extent
that the indemnifying party was materially prejudiced by such failure to
notify, nor shall any such failure to notify relieve the indemnifying party
from any liability that it may have to an indemnified party otherwise than
under this

 

32

 

Section 10.  In case any such
action is brought against any indemnified party, and it notifies an
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate in, and, to the extent that it may wish, jointly with
all other indemnifying parties similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action
include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party, or the
indemnified and indemnifying parties may have conflicting interests which would
make it inappropriate for the same counsel to represent both of them, the
indemnified party or parties shall have the right to select separate counsel to
assume such legal defense and otherwise to participate in the defense of such
action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying
party to such indemnified party of its election so to assume the defense of
such action and approval by the indemnified party of counsel, the indemnifying
party will not be liable to such indemnified party under this Section for any
legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof unless (i) the indemnified party shall have
employed such counsel in connection with the assumption of legal defense in
accordance with the proviso to the next preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of
more than one separate counsel, approved by the Representatives in the case of
paragraph (a) representing all indemnified parties who are parties to such
action (in addition to any single local counsel)), (ii) the indemnifying party
shall not have employed counsel reasonably satisfactory to the indemnified
party to represent the indemnified party within a reasonable time after notice
of commencement of the action or (iii) the indemnifying party shall have
authorized the employment of counsel for the indemnified party at the expense
of the indemnifying party.  No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect
of which any indemnified party is or could have been a party and indemnity
could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all
liability arising out of such proceeding and 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.

 

(d)           If the
indemnification provided for in this Section 10 is unavailable to an
indemnified party under paragraphs (a) or (b) hereof in respect of any losses,
claims, damages or liabilities referred to therein, then each applicable
indemnifying party, in lieu of indemnifying such indemnified party, shall contribute
to the amount paid or payable by such indemnified party 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, the
Selling Stockholders and the Underwriters from the offering of the Shares or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault
of the Company, the Selling Stockholders and the Underwriters in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities, as well as any other relevant

 

33

 

equitable considerations.  The
respective relative benefits received by the Company, the Selling Stockholders
and the Underwriters shall be deemed to be in the same proportion, in the case
of the Company and the Selling Stockholders, as the total price paid to the
Company and the Selling Stockholders for the Shares by the Underwriters (net of
underwriting discount but before deducting expenses), and, in the case of the
Underwriters, as the underwriting discount received by them bears to the total
of such amounts paid to the Company and the Selling Stockholders and received
by the Underwriters as underwriting discount, in each case as contemplated by
the Prospectus.  The relative fault of
the Company, the Selling Stockholders and the Underwriters 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, by the Selling
Stockholders or by the Underwriters and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.  The amount paid
or payable by a party as a result of the losses, claims, damages and liabilities
referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such party in connection with investigating or
defending any action or claim.

 

The Company, the
Selling Stockholders and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section 10(d) were determined by pro
rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately preceding
paragraph.  Notwithstanding the
provisions of this Section 10(d), no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which
the Shares underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such Underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission, nor shall any Selling Stockholder be required to
contribute any amount in excess of the public offering price of the Shares sold
by such Selling Stockholder, less the underwriting discount, as set forth on
the front cover page of the Prospectus. 
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 10(d) are several in proportion to their respective
underwriting commitments and not joint.

 

(e)           The
provisions of this Section 10 shall survive any termination of this Agreement.

 

SECTION 11.        Default
of Underwriters.  It shall be a
condition to the agreement and obligation of the Company and the Selling
Stockholders to sell and deliver the Shares hereunder, and of each Underwriter
to purchase the Shares hereunder, that, except as hereinafter in this paragraph
provided, each of the Underwriters shall purchase and pay for all Shares agreed
to be purchased by such Underwriter hereunder upon tender to the
Representatives of all such Shares in accordance with the terms hereof.  If any Underwriter or Underwriters default in
their obligations to purchase Shares hereunder on the First Closing Date and the
aggregate number of Shares which such defaulting

 

34

 

Underwriter or Underwriters agreed but failed to purchase does not
exceed 10 percent of the total number of Shares which the Underwriters are
obligated to purchase on the First Closing Date, the Representatives may make
arrangements satisfactory to the Company and the Selling Stockholders for the
purchase of such Shares by other persons, including any of the Underwriters,
but if no such arrangements are made by such date the nondefaulting
Underwriters shall be obligated severally, in proportion to their respective
commitments hereunder, to purchase the Shares which such defaulting
Underwriters agreed but failed to purchase on such date.  If any Underwriter or Underwriters so default
and the aggregate number of Shares with respect to which such default or
defaults occur is more than the above percentage and arrangements satisfactory
to the Representatives and the Company and the Selling Stockholders for the
purchase of such Shares by other persons are not made within 36 hours after
such default, this Agreement will terminate without liability on the part of
any nondefaulting Underwriter or the Company or the Selling Stockholders,
except for the expenses to be paid by the Company pursuant to Section 6
hereof and except to the extent provided in Section 10 hereof.

 

In the event that
Shares to which a default relates are to be purchased by the nondefaulting
Underwriters or by another party or parties, the Representatives or the Company
shall have the right to postpone the First Closing Date for not more than seven
business days in order that the necessary changes in the Registration
Statement, Prospectus and any other documents, as well as any other arrangements,
may be effected.  As used in this
Agreement, the term “Underwriter”
includes any person substituted for an Underwriter under this Section.  Nothing herein will relieve a defaulting
Underwriter from liability for its default.

 

SECTION 12.        Effective
Date.  This Agreement shall become
effective immediately as to Sections 6, 8, 10 and 13 and as to all other
provisions at 10:00 A.M., New York City Time, on the day following the
date upon which the Pricing Agreement is executed and delivered, unless such a
day is a Saturday, Sunday or holiday (and in that event this Agreement shall
become effective at such hour on the business day next succeeding such
Saturday, Sunday or holiday); but this Agreement shall nevertheless become
effective at such earlier time after the Pricing Agreement is executed and
delivered as you may determine on and by notice to the Company and the Selling
Stockholders or by release of any Shares for sale to the public.  For the purposes of this Section, the Shares
shall be deemed to have been so released upon the release for publication of
any newspaper advertisement relating to the Shares or upon the release by you
of telegrams (i) advising the Underwriters that the Shares are released
for public offering, or (ii) offering the Shares for sale to securities
dealers, whichever may occur first.

 

SECTION 13.        Termination.  Without limiting the right to terminate this
Agreement pursuant to any other provision hereof:

 

(a)           This
Agreement may be terminated by the Company by notice to you and the Selling
Stockholders, or by you by notice to the Company and the Selling Stockholders,
at any time prior to the time this Agreement shall become effective as to all
its provisions, and any such

 

35

 

termination shall be without liability on the part of the Company or
the Selling Stockholders to any Underwriter (except for the expenses to be paid
or reimbursed pursuant to Section 6 hereof and except to the extent
provided in Section 10 hereof) or of any Underwriter to the Company or the
Selling Stockholders (except to the extent provided in Section 10 hereof).

 

(b)           This
Agreement may also be terminated by you prior to the First Closing Date, and
the option referred to in Section 4, if exercised, may be cancelled at any
time prior to the Second Closing Date, if (i) trading in securities on or
by the NASD or the New York Stock Exchange shall have been suspended or
materially limited or minimum prices shall have been established on such
exchange, or (ii) a banking moratorium shall have been declared by New
York or United States authorities, or (iii) there shall have been any
change in financial markets or in political, economic or financial conditions
which, in the opinion of the Representatives, either renders it impracticable
or inadvisable to proceed with the offering and sale of the Shares on the terms
set forth in the Prospectus or materially and adversely affects the market for
the Shares, or (iv) there shall have been an outbreak of major armed
hostilities between the United States and any foreign power which in the
opinion of the Representatives makes it impractical or inadvisable to offer or
sell the Shares.  Any termination
pursuant to this paragraph (b) shall be without liability on the part of any
Underwriter to the Company or the Selling Stockholders (except to the extent
provided in Section 10 hereof) or on the part of the Company or the Selling
Stockholders to any Underwriter or the Selling Stockholders (except for
expenses to be paid or reimbursed pursuant to Section 6 hereof and except
to the extent provided in Section 10 hereof).

 

SECTION 14.        Representations
and Indemnities to Survive Delivery. 
The respective indemnities, rights of contribution, agreements,
representations, warranties and other statements of the Company, of its
officers, of the Selling Stockholders and of the several Underwriters set forth
in or made pursuant to this Agreement will remain in full force and effect,
regardless of any investigation made by or on behalf of any Underwriter or the
Company or any of its or their partners, principals, members, officers or
directors or any controlling person, or the Selling Stockholders, as the case
may be, and will survive delivery of and payment for the Shares sold hereunder.

 

SECTION 15.        Notices.  All communications hereunder will be in
writing and, if sent to the Underwriters will be mailed, delivered or
telegraphed and confirmed to you c/o J.P. Morgan Securities Inc., 277 Park
Avenue, 9th Floor, New York, New York 10172, Attention: Syndicate Desk, with a
copy to Winston & Strawn LLP, 35 West Wacker Drive, Chicago, Illinois
60601, Attention: R. Cabell Morris, Esq.; if sent to the Company will be
mailed, delivered or telegraphed and confirmed to the Company at its corporate
headquarters with a copy to Foley Hoag LLP, 155 Seaport Boulevard, Boston,
Massachusetts 02210, Attention: Peter M. Rosenblum, Esq.; and if sent to the
Selling Stockholders will be mailed, delivered or telegraphed and confirmed to
the Agents and the Custodian at such address as they have previously furnished
to the Company and the Representatives, with a copy to Foley Hoag LLP, 155
Seaport Boulevard, Boston, Massachusetts 02210, Attention: Peter M. Rosenblum,
Esq.

 

36

 

SECTION 16.        Successors.  This Agreement and the Pricing Agreement will
inure to the benefit of and be binding upon the parties hereto and their
respective successors, personal representatives and assigns, and to the benefit
of the officers and directors and controlling persons referred to in
Section 10, and no other person will have any right or obligation
hereunder.  The term “successors”
shall not include any purchaser of the Shares as such from any of the
Underwriters merely by reason of such purchase.

 

SECTION 17.        Representation
of Underwriters.  You will act as
Representatives for the several Underwriters in connection with this financing,
and any action under or in respect of this Agreement taken by you will be
binding upon all the Underwriters.

 

SECTION 18.        Partial
Unenforceability.  If any section,
paragraph or provision of this Agreement is for any reason determined to be
invalid or unenforceable, such determination shall not affect the validity or
enforceability of any other section, paragraph or provision hereof.

 

SECTION 19.        Applicable
Law.  This Agreement and the Pricing
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.

 

37

 

If the foregoing is in
accordance with your understanding of our agreement, kindly sign and return to
us the enclosed duplicates hereof, whereupon it will become a binding agreement
among the Company, the Selling Stockholders and the several Underwriters
including you, all in accordance with its terms.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  CRA
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James C
  Burrows

  	
   

  
	
   

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EACH OF THE
  SELLING STOCKHOLDERS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James C
  Burrows

  	
   

  
	
   

  	
   

  	
    Agent
  and Attorney-in-Fact

  

 

The foregoing Agreement is hereby

confirmed and accepted as of

the date first above written.

 

J.P. MORGAN SECURITIES INC.

WILLIAM BLAIR & COMPANY, L.L.C.

PIPER JAFFRAY & CO.

ADAMS HARKNESS, INC.

 

Acting as Representatives of the

Several Underwriters named in

Schedule A

 

By: J.P. Morgan Securities Inc.

 

 

	
  By: 

  	
  /s/ Edward Allegaert

  	
   

  	
   

  
	
  Vice President

  	
   

  

 

38

 

SCHEDULE A

 

	
  Underwriter

  	
   

  	
  Number
  of

  Firm Shares

  to be Purchased

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  J.P. Morgan
  Securities Inc.

  	
   

  	
  712,211

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  William Blair
  & Company, L.L.C.

  	
   

  	
  712,210

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Piper Jaffray
  & Co.

  	
   

  	
  284,884

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Adams Harkness,
  Inc.

  	
   

  	
  189,922

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  1,899,227

  	
   

  

 

 

SCHEDULE B

 

	
   

  	
   

  	
  Number
  of

  Firm Shares

  to be Sold

  	
   

  	
  Number
  of

  Option Shares

  to be Sold

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  710,000

  	
   

  	
  200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Selling
  Stockholders:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  James C. Burrows

  	
   

  	
  46,557

  	
   

  	
  3,443

  	
   

  
	
  Franklin M.
  Fisher

  	
   

  	
  93,114

  	
   

  	
  6,886

  	
   

  
	
  Steven C. Salop

  	
   

  	
  69,425

  	
   

  	
  5,135

  	
   

  
	
  Rowland T.
  Moriarty

  	
   

  	
  58,847

  	
   

  	
  4,352

  	
   

  
	
  Carl Shapiro

  	
   

  	
  18,971

  	
   

  	
  1,403

  	
   

  
	
  Robert J. Larner

  	
   

  	
  21,826

  	
   

  	
  1,614

  	
   

  
	
  Christopher
  Maxwell

  	
   

  	
  24,023

  	
   

  	
  1,777

  	
   

  
	
  William F.
  Concannon

  	
   

  	
  23,278

  	
   

  	
  1,722

  	
   

  
	
  Michael A. Kemp

  	
   

  	
  23,278

  	
   

  	
  1,722

  	
   

  
	
  Richard S.
  Ruback

  	
   

  	
  48,419

  	
   

  	
  3,581

  	
   

  
	
  Arnold J.
  Lowenstein

  	
   

  	
  28,135

  	
   

  	
  2,081

  	
   

  
	
  Firoze E. Katrak

  	
   

  	
  57,377

  	
   

  	
  4,243

  	
   

  
	
  William G.
  Burnett

  	
   

  	
  34,824

  	
   

  	
  2,576

  	
   

  
	
  Gregory K. Bell

  	
   

  	
  25,953

  	
   

  	
  1,919

  	
   

  
	
  Bridger M.
  Mitchell

  	
   

  	
  45,361

  	
   

  	
  3,355

  	
   

  
	
  Jagdish C.
  Agarwal

  	
   

  	
  38,735

  	
   

  	
  2,865

  	
   

  
	
  Thomas R.
  Overstreet

  	
   

  	
  38,735

  	
   

  	
  2,865

  	
   

  
	
  Stanley M. Besen

  	
   

  	
  24,208

  	
   

  	
  1,792

  	
   

  
	
  Stephen H. Kalos

  	
   

  	
  12,570

  	
   

  	
  930

  	
   

  
	
  Bradford Cornell

  	
   

  	
  12,105

  	
   

  	
  895

  	
   

  
	
  Monica G.
  Noether

  	
   

  	
  22,999

  	
   

  	
  1,701

  	
   

  
	
  John R. Woodbury

  	
   

  	
  21,206

  	
   

  	
  1,568

  	
   

  
	
  Kenneth L.
  Grinnell as Trustee for The James C. Burrows Irrevocable Trust 1998, Art.
  Second

  	
   

  	
  24,210

  	
   

  	
  1,790

  	
   

  
	
  Raju Patel

  	
   

  	
  24,209

  	
   

  	
  1,791

  	
   

  
	
  W. David
  Montgomery

  	
   

  	
  24,856

  	
   

  	
  1,838

  	
   

  
	
  Daniel Brand

  	
   

  	
  22,273

  	
   

  	
  1,647

  	
   

  
	
  Steven R.
  Brenner

  	
   

  	
  19,554

  	
   

  	
  1,446

  	
   

  
	
  Eads Family LLC

  	
   

  	
  22,273

  	
   

  	
  1,647

  	
   

  

 

 

	
  John E. Parsons

  	
   

  	
  24,585

  	
   

  	
  1,818

  	
   

  
	
  Robert M. Spann

  	
   

  	
  19,368

  	
   

  	
  1,432

  	
   

  
	
  Jenny Fitz
  Moriarty as Trustee of the Rowland T. Moriarty Irrevocable Trust 1998

  	
   

  	
  18,574

  	
   

  	
  1,374

  	
   

  
	
  Gary L. Roberts

  	
   

  	
  18,594

  	
   

  	
  1,375

  	
   

  
	
  Salop
  Irrevocable GST-Taxable Trust 1998

  	
   

  	
  17,431

  	
   

  	
  1,289

  	
   

  
	
  Salop
  Irrevocable GST-Exempt Trust 1998

  	
   

  	
  17,431

  	
   

  	
  1,289

  	
   

  
	
  Joen E.
  Greenwood

  	
   

  	
  13,967

  	
   

  	
  1,033

  	
   

  
	
  Abraham S.
  Fisher

  	
   

  	
  9,311

  	
   

  	
  689

  	
   

  
	
  The J. Phillip
  Cooper Irrevocable Trust, 2000

  	
   

  	
  20,951

  	
   

  	
  1,549

  	
   

  
	
  Naomi L.
  Zikmund-Fisher

  	
   

  	
  6,858

  	
   

  	
  507

  	
   

  
	
  Abigail S.
  Fisher

  	
   

  	
  7,883

  	
   

  	
  583

  	
   

  
	
  Michael Mayer

  	
   

  	
  6,147

  	
   

  	
  —

  	
   

  
	
  Besen Family
  Trust

  	
   

  	
  9,684

  	
   

  	
  716

  	
   

  
	
  Paul R. Milgrom

  	
   

  	
  9,684

  	
   

  	
  716

  	
   

  
	
  Elaine M. Ruback
  as Trustee of the Ruback Children’s Family Trust

  	
   

  	
  9,684

  	
   

  	
  716

  	
   

  
	
  Daniel McGavock

  	
   

  	
  5,559

  	
   

  	
  —

  	
   

  
	
  Douglas R. Bohi

  	
   

  	
  5,200

  	
   

  	
  —

  	
   

  
	
  John E. Parsons
  Charitable Foundation, Inc.

  	
   

  	
  4,842

  	
   

  	
  358

  	
   

  
	
  Abraham S.
  Fisher GST Trust

  	
   

  	
  4,819

  	
   

  	
  356

  	
   

  
	
  Gail Roberts

  	
   

  	
  5,657

  	
   

  	
  —

  	
   

  
	
  Michael Tate

  	
   

  	
  3,609

  	
   

  	
  —

  	
   

  
	
  John Bone

  	
   

  	
  3,249

  	
   

  	
  —

  	
   

  
	
  The Abigail S.
  Fisher GST Trust

  	
   

  	
  3,380

  	
   

  	
  250

  	
   

  
	
  Naomi L. Fisher
  GST Trust

  	
   

  	
  3,380

  	
   

  	
  250

  	
   

  
	
  Christopher
  Bokhart

  	
   

  	
  2,782

  	
   

  	
  —

  	
   

  
	
  Brian Cody

  	
   

  	
  2,259

  	
   

  	
  —

  	
   

  
	
  Shirley Webster

  	
   

  	
  2,259

  	
   

  	
  —

  	
   

  
	
  Patrick McLane

  	
   

  	
  2,259

  	
   

  	
  —

  	
   

  
	
  Girls
  Incorporated

  	
   

  	
  1,000

  	
   

  	
  —

  	
   

  
	
  National Outdoor
  Leadership School

  	
   

  	
  1,000

  	
   

  	
  —

  	
   

  
	
  President and
  Fellows of Harvard College

  	
   

  	
  500

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  1,899,227

  	
   

  	
  284,884

  	
   

  

 

2

 

SCHEDULE C

 

Comfort Letter of Ernst
& Young LLP

 

(1)           They are
independent auditors with respect to the Company and the Subsidiaries within
the meaning of the Securities Act.

 

(2)           In their
opinion the consolidated financial statements of the Company and the
Subsidiaries audited by them and included or incorporated by reference in the
Registration Statement comply as to form in all material respects with the
applicable accounting requirements of the Securities Act and the Exchange Act
and the related rules and regulations adopted by the SEC.

 

(3)           On the
basis of specified procedures (but not an examination in accordance with
generally accepted auditing standards), including inquiries of certain officers
of the Company responsible for financial and accounting matters as to
transactions and events subsequent to November 27, 2004, a reading of minutes
of meetings of the stockholders and directors of the Company and the
Subsidiaries since November 27, 2004, a reading of the latest available interim
unaudited consolidated financial statements of the Company and the Subsidiaries
(with an indication of the date thereof) and other procedures as specified in
such letter, nothing came to their attention which caused them to believe that
(i) the unaudited condensed consolidated financial statements of the
Company and the Subsidiaries included or incorporated by reference in the
Registration Statement do not comply as to form in all material respects with
the applicable accounting requirements of the Exchange Act as it applies to
Form 10-Q and the related rules and regulations adopted by the SEC or that any
material modification should be made to such unaudited financial statements for
them to be in conformity with generally accepted accounting principles, and
(ii) at a specified date not more than five days prior to the date thereof in
the case of the first letter and not more than two business days prior to the
date thereof in the case of the second and third letters, there was any change
in the capital stock or increase in long-term debt of the Company and the
Subsidiaries on a consolidated basis or any decrease in consolidated net
current assets or consolidated stockholders’ equity as compared with amounts
shown on the latest unaudited balance sheet of the Company included in the
Registration Statement or for the period from the date of such balance sheet to
a date not more than five days prior to the date thereof in the case of the
first letter and not more than two business days prior to the date thereof in
the case of the second and third letters, there were any decreases, as compared
with the corresponding period of the preceding year, in consolidated net sales
or in the total or per share amounts of consolidated net income before
extraordinary items or of consolidated net income except, in all instances, for
changes or decreases which the Prospectus discloses have occurred or may occur
or which are set forth in such letter.

 

(4)           They have
carried out specified procedures, which have been agreed to by the
Representatives, with respect to certain information in the Prospectus
specified by the Representatives, and on the basis of such procedures, they
have found such information to be in agreement with the

 

 

accounting records of the Company and the Subsidiaries or amounts in
analyses prepared by the Company and the Subsidiaries from their accounting
records.

 

2

 

EXHIBIT A

 

CRA
INTERNATIONAL, INC.

 

1,899,227
SHARES COMMON STOCK (2)

 

PRICING AGREEMENT

 

	
   

  	
  June 23, 2005

  

 

J.P. Morgan
Securities Inc.

William Blair
& Company, L.L.C.

Piper Jaffray
& Co.

Adams Harkness, Inc.

As Representatives of the Several

Underwriters

c/o J.P. Morgan Securities Inc.

277 Park Avenue

New York, New York  10172

 

Ladies and
Gentlemen:

 

Reference is made
to the Underwriting Agreement dated June 23, 2005 (the “Underwriting
Agreement”) relating to the sale by the Company and the Selling
Stockholders and the purchase by the several Underwriters, for whom J.P. Morgan
Securities Inc., William Blair & Company, L.L.C., Piper Jaffray & Co.,
and Adams Harkness, Inc., are acting as representatives (the “Representatives”), of the above Shares.  All terms herein shall have the definitions
contained in the Underwriting Agreement except as otherwise defined herein.

 

Pursuant to
Section 4 of the Underwriting Agreement, the Company and each of the
Selling Stockholders agree with the Representatives as follows:

 

1.             The
initial public offering price per share for the Shares shall be $53.750.

 

2.             The
purchase price per share for the Shares to be paid by the Underwriters shall be
$51.197, being an amount equal to the initial public offering price set forth
above less $2.553

 

(2) Plus an option to acquire up to 284,884 additional shares to cover
overallotments.

 

 

 

per share; provided, however, that with respect to Shares that are
currently represented by options that will be exercised concurrent with the
closing of the offering, the purchase price per share for such Shares to be
paid by the Underwriters shall be the initial public offering price set forth
above.

 

If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to us the enclosed duplicates hereof,
whereupon it will become a binding agreement among the Company, the Selling
Stockholders and the several Underwriters including you, all in accordance with
its terms.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  CRA
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James C
  Burrows

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
    President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EACH OF THE
  SELLING STOCKHOLDERS

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James C
  Burrows

  	
   

  
	
   

  	
  Agent and
  Attorney-in-Fact

  
					

 

The foregoing
Agreement is hereby

confirmed and accepted as of the

date first above written.

 

J.P. MORGAN
SECURITIES INC.

WILLIAM BLAIR
& COMPANY, L.L.C.

PIPER JAFFRAY
& CO.

ADAMS HARKNESS,
INC.

 

Acting as
Representatives of the

Several
Underwriters

 

By: J.P. Morgan
Securities Inc.

 

	
  By: 

  	
  /s/ Edward Allegaert

  	
   

  
	
  Vice President

  

 

2

 

EXHIBIT B

 

FORM OF LOCK-UP AGREEMENT

 

	
   

  	
  June     , 2005

  

 

 

J.P. Morgan Securities Inc.

William Blair & Company, L.L.C.

Piper Jaffray & Co.

Adams Harkness, Inc.

As Representatives of the
Several Underwriters

c/o J.P. Morgan Securities Inc.

277 Park Avenue

New York, New York  10172

 

Ladies and Gentlemen:

 

This letter is being delivered to you in connection with the proposed
Underwriting Agreement (the “Underwriting Agreement”) among CRA International,
Inc., a Massachusetts corporation (the “Company”), each of the Selling
Stockholders named therein and each of you as representatives of a group of
Underwriters named therein relating to an underwritten public offering of
Common Stock, no par value, of the Company (the “Common Stock”).

 

In order to induce you and the other Underwriters to enter into the
Underwriting Agreement, the undersigned agrees not to directly or indirectly,
sell, offer, contract or grant any option to sell (including without limitation
any short sale), pledge, transfer, establish an open “put equivalent position”
within the meaning of Rule 16a-1(h) under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), or otherwise dispose of any shares of Common
Stock, options or warrants to acquire shares of Common Stock, or securities
exchangeable or exercisable for or convertible into shares of Common Stock
currently or hereafter owned either of record or beneficially (as defined in
Rule 13d-3 under the Exchange Act, except that a 90-day period shall be used
rather than the 60-day period set forth therein) by the undersigned, or
publicly announce the undersigned’s intention to do any of the foregoing, for
the period commencing on the date hereof through the close of trading on the
date 90 days after the date of the Underwriting Agreement without the prior
written consent of J.P. Morgan Securities Inc. and William Blair & Company,
L.L.C. (together, the “Joint Bookrunners”) (which consent may be withheld at
the sole discretion of the Joint Bookrunners); provided,
however, that the undersigned may sell
or otherwise transfer any such shares or securities (i) to the Company and (ii)
to immediate family members of the undersigned as a bona fide gift, or to
equity holders of the undersigned, provided such persons agree in writing with
the Joint Bookrunners not to sell, offer, dispose of or otherwise transfer any
such shares or securities during such specified period without the prior
written consent of the Joint Bookrunners (which

 

 

consent may be withheld at the sole discretion of the Joint
Bookrunners).  Notwithstanding the
foregoing, if (1) during the last 17 days of the specified 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 specified
restricted period, the Company announces that it will release earnings results
during the 16-day period beginning on the last day of such specified 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.

 

The provisions of this agreement are in addition to any restrictions
imposed by that certain Stock Restriction Agreement dated as of April 17, 1998,
as amended, of which the undersigned may be a party.  If for any reason the offering of Common
Stock shall not have occurred by September 30, 2005, or the Company decides to
terminate the proposed offering of Common Stock, the agreement set forth above
shall be terminated.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name and address of Selling Stockholder]

  

 

2

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