Directed Share Program Disclosure

Summary

This clause comprises disclosure regarding a directed share program (DSP) to be included in the underwriting section of the prospectus prospectus included in the registration statement filed under the Securities Act of 1933, as amended (Securities Act), for a company's initial public offering (IPO). This clause includes practical guidance and drafting notes. In a directed share program (DSP) (often referred to as “friends and family”), the managing or lead underwriter of a company's IPO will, at the company's request, allocate a small portion of the securities being offered to persons designated by the company. Designees may include officers, directors, other employees, and persons with significant business ties to the company (e.g., key customers or suppliers or joint venture partners). For more information about directed share programs, see Directed Share Programs For information about IPOs generally, see Initial Public Offerings Resource Kit.