| name | atm-equity-distribution-agreement |
| title | ATM Equity Distribution Agreement |
| description | Drafts a market-standard At-The-Market (ATM) Equity Distribution Agreement for public issuers conducting continuous shelf offerings under Rule 415(a)(4). Use when establishing or renewing an ATM program under an effective Form S-3, drafting a sales agent agreement, or structuring a continuous equity offering program. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/atm-equity-distribution-agreement |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | capital-markets |
| language | en |
| tags | ["agreement","corporate","drafting"] |
ATM Equity Distribution Agreement
Generates an Equity Distribution Agreement for an ATM offering program compliant with Rule 415(a)(4), Regulation M, and applicable exchange listing rules.
Prerequisites
Collect before drafting:
- Issuer — legal name, state of incorporation, principal office
- Registration statement — Form S-3 file number, effective date, maximum aggregate offering amount
- Securities — class, par value, proposed ATM program maximum (must not exceed shelf availability)
- Agent(s) — legal name(s), FINRA registration status, commission rate (market: 2–3%)
- Exchange — principal listing market (NYSE/Nasdaq); 20%-cap shareholder approval status
- Existing arrangements — prior ATM agreements, lock-ups, co-manager arrangements
Document Structure
| Section | Key Contents |
|---|
| Parties & Recitals | Party names; shelf registration citation; Rule 415(a)(4) characterization |
| Definitions | Shares, Placement Notice, Floor Price, Commission, Applicable Time, VWAP, Issuance Cap, Suspension Notice |
| Agency Appointment | Non-exclusive; commercially reasonable efforts; not an underwriter; sub-agent consent |
| Sale Mechanics | Placement notice process; volume caps; daily confirmations; T+2 settlement; DTC delivery |
| Compensation | Commission % of gross proceeds; expense allocation; wire instructions |
| Reps & Warranties | Corporate, registration/disclosure, capitalization, financial, compliance, litigation |
| Issuer Covenants | Registration maintenance, reporting, notification, blackouts, due diligence access, ongoing deliverables |
| Indemnification | Mutual indemnification; defense procedures; contribution (cap = commissions received) |
| Conditions Precedent | Initial closing deliverables; per-placement conditions |
| Termination | Mutual notice; immediate triggers; automatic events; post-termination obligations |
| General Provisions | NY/DE governing law; jury waiver; notices; integration; severability; confidentiality |
Sale Mechanics
Placement Notice — Issuer delivers written notice specifying max shares, floor price, and sales period. Agent sells on commercially reasonable efforts basis and provides daily confirmations (shares sold, gross/net proceeds, VWAP).
