STOCK PURCHASE AGREEMENT
Exhibit 10.7
EXECUTION
COPY
STOCK PURCHASE AGREEMENT, dated as of June 4, 2008 (this “Agreement”), by and between
THE XXXXXX X. AND XXXXX X. XXXXXXXXX 1992 CHARITABLE TRUST (the “Seller”) and Xxxxxxxxx
Group, Inc. (the “Purchaser”).
W
I T N E S S E T H :
WHEREAS, the Seller is the owner of an aggregate of Two Hundred Fifty Thousand (250,000)
common shares (the “Shares”), $1.00 par value, of Leucadia National Corporation, a New
York corporation (the “Issuer”); and
WHEREAS, the Seller has agreed to sell to the Purchaser, and the Purchaser has agreed to
purchase from the Seller, all of the Seller’s right, title and interest in and pertaining to the
Shares for an aggregate purchase price of $12,237,500 (the “Purchase Price”), all upon the
terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained, it
is agreed as follows:
1. PURCHASE AND SALE
1.1 Purchase and Sale . Subject to the terms and conditions set forth in this
Agreement, the Purchaser agrees to purchase from the Seller, and the Seller agrees to sell,
transfer and assign to the Purchaser, on the Closing Date (as defined below), all of the Seller’s
right, interest and title in the Shares for the Purchase Price. On the Closing Date, the Purchaser
shall pay the Purchase Price to the Seller by a wire transfer of immediately available funds into
an account designated by such Seller.
1.2 The Closing.
(a) The closing of the purchase and sale of the Shares and the other transactions contemplated
hereby (the “Closing”) shall take place on June 4, 2008, or such date and time as shall be
mutually agreed to by the parties hereto, subject to the satisfaction or waiver of the conditions
set forth in Section 4 hereof (the “Closing Date”).
(b) At the Closing:
(i) the Seller shall deliver, or cause to be delivered, to the Purchaser (A) one or more stock
certificates representing the Shares, duly registered in the name of the Purchaser and (B) all such
other documents and instruments, if any, that are mutually determined by the Seller and the
Purchaser to be necessary to effectuate the transactions contemplated by this Agreement; and
(ii) the Purchaser shall deliver, or cause to be delivered, to the Seller (A) a wire transfer
of immediately available funds into an account designated by the Seller in the amount of the
Purchase Price and (B) all such other documents and
instruments, if any, that are mutually determined by such Seller and the Purchaser to be
necessary to effectuate the transactions contemplated by this Agreement.
2. PURCHASER’S REPRESENTATIONS AND WARRANTIES
The Purchaser makes the following representations and warranties to the Seller, each and all
of which shall survive the execution and delivery of this Agreement and the Closing hereunder:
2.1 Authority; Binding Effect. The Purchaser has the requisite corporate power and
authority to execute and deliver this Agreement and to perform its obligations hereunder. This
Agreement has been duly and validly executed and delivered by the Purchaser and (assuming the due
execution and delivery thereof by the Seller) constitutes the legal, valid and binding obligation
of the Purchaser, enforceable against the Purchaser in accordance with its terms.
2.2 No Conflicts. The execution and delivery by the Purchaser of this Agreement and
the performance by the Purchaser of its obligations hereunder will not conflict with, constitute a
default under or violate (1) any of the terms, conditions or provisions of the certificate of
incorporation or by-laws of the Purchaser, (2) any of the terms, conditions or provisions of any
document, agreement or other instrument to which the Purchaser is a party or by which it is bound,
(3) any law or regulation applicable to the Purchaser, including but not limited to, the Securities
Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (4) any
judgment, writ, injunction, decree, order or ruling of any court or governmental authority binding
on the Purchaser.
2.3 No Consents. No consent, approval, waiver, license or authorization or other
action by or filing with any governmental authority is required in connection with the execution
and delivery by the Purchaser of this Agreement, the consummation by the Purchaser of the
transactions contemplated hereby or the performance by the Purchaser of its obligations hereunder.
2.4 Investment Intention; Accredited Investor. The Purchaser is an “accredited
investor” (as that term is defined in Rule 501 of Regulation D under the Securities Act) and by
reason of its business and financial experience, it has such knowledge, sophistication and
experience in business and financial matters as to be capable of evaluating the merits and risks of
the prospective investment, is able to bear the economic risk of such investment and is able to
afford a complete loss of such investment. The Purchaser is purchasing the Shares for its own
account, for investment purposes and not with a view to the distribution thereof other than
pursuant to an offering registered pursuant to the Securities Act or pursuant to an exemption
therefrom.
2.5 No Reliance or Solicitation. Except as are set forth in this Agreement, the
Purchaser has not received any representations or warranties from the Seller or his representatives
or agents concerning the Issuer, the Shares or the transaction contemplated hereby. The Purchaser
is not purchasing the Shares as a result of (1) any
advertisement, article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio or (2) any seminar or meeting whose attendees,
including the Purchaser, had been invited as a result of any of the foregoing.
2.6 No Securities Act Registration. The Purchaser understands that the Seller may be
deemed to be an “affiliate” of the Issuer (as such term is defined in Rule 144 under the Securities
Act). The Purchaser understands that the Shares to be acquired by it have not been registered
under the Securities Act and may not be sold or otherwise transferred without registration under
the Securities Act or pursuant to an exemption from such registration requirements.
3. SELLER’S REPRESENTATIONS AND WARRANTIES
The Seller makes the following representations and warranties to the Purchaser, each and all
of which shall survive the execution and delivery of this Agreement and the Closing hereunder:
3.1 Authority; Binding Effect. The Seller has the legal capacity to execute and
deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly and
validly executed and delivered by the Seller and (assuming the due execution and delivery thereof
by the Purchaser) constitutes the legal, valid and binding obligation of the Seller, enforceable
against the Seller in accordance with its terms.
3.2 No Conflicts. The execution and delivery by the Seller of this Agreement and the
performance by the Seller of the Seller’s obligations hereunder will not conflict with, constitute
a default under or violate (1) any of the terms, conditions or provisions of any document,
agreement or other instrument to which the Seller is a party or by which the Seller is bound, (2)
any law or regulation applicable to the Seller, including but not limited to, the Securities Act
and the Exchange Act, or (3) any judgment, writ, injunction, decree, order or ruling of any court
or governmental authority binding on the Seller.
3.3 No Consents. No consent, approval, waiver, license or authorization or other
action by or filing with any governmental authority is required in connection with the execution
and delivery by the Seller of this Agreement, the consummation by the Seller of the transactions
contemplated hereby or the performance by the Seller of the Seller’s obligations hereunder, other
than filings by the Seller under Section 13 and Section 16 of the Securities Exchange Act of 1934,
as amended. No consent, approval, waiver, authorization or other action by the Issuer is required
in connection with the execution and delivery by the Seller of this Agreement, the consummation by
the Seller of the transactions contemplated hereby or the performance by the Seller of the Seller’s
obligations hereunder, other than such which have been obtained by the Seller or will be obtained
by the Seller on or prior to the Closing Date.
3.4 Ownership and Transfer. The Seller is the beneficial owner of the Shares and the
record owner of 150,000 of the Shares; at Closing the Seller will be the record owner of all of the
Shares, free and clear of any and all liens, charges, security interests, options, claims,
equitable interests, pledges, proxies, voting trusts or agreements, encumbrances, restrictions or
adverse interests of any kind and of any nature whatsoever (collectively, “Liens”), except
for such restrictions on transfer imposed by applicable federal or state securities laws or the
certificate of incorporation of the Issuer. Upon transfer, assignment and delivery of the Shares
and payment therefor in accordance with the terms of this Agreement, the Purchaser will acquire
good and marketable title to such shares, free and clear of any and all Liens, except for such
restrictions on transfer imposed by applicable federal or state securities laws or the certificate
of incorporation of the Issuer.
4. CONDITIONS PRECEDENT
4.1 The obligations of the Purchaser and the Seller under Section 1 hereof are subject to the
following conditions:
(a) All of the representations and warranties of the Purchaser and the Seller contained in
this Agreement shall be true and correct on and as of the date hereof and on the Closing Date.
(b) The Seller shall have received the Purchase Price and the Purchaser shall have received
certificates for the Shares, duly registered in the name of the Purchaser.
5. MISCELLANEOUS
5.1 Further Assurances. The Seller and the Purchaser agree to execute and deliver
such other documents or agreements and to take such other action as may be necessary or desirable
for the implementation of this Agreement and the consummation of the transactions contemplated
hereby.
5.2 Complete Agreement; Amendments; Waivers. This Agreement constitutes the complete
agreement between the parties with respect to the subject matter hereof, supercedes any previous
agreement or understanding between them relating hereto and may not be modified, altered or amended
except as provided herein. This Agreement can be amended, supplemented or changed, and any
provision hereof can be waived, only by written instrument making specific reference to this
Agreement signed by the party against whom enforcement of any such amendment, supplement,
modification or waiver is sought. No action taken pursuant to this Agreement shall be deemed to
constitute a waiver by the party taking such action or compliance with any representation,
warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a further or continuing waiver
of such breach or as a waiver of any other or subsequent breach. No failure on the part of any
party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof, nor
shall any single or partial exercise of such right, power or remedy by such party preclude any
other or further exercise thereof or the exercise of any other right, power or remedy. All
remedies hereunder are cumulative and are not exclusive of any other remedies provided by law.
5.3 Expenses. Each party hereto shall bear its own expenses incurred in connection
with the negotiation and execution of this Agreement and each other document and instrument
contemplated by this Agreement and the consummation of the transactions contemplated hereby and
thereby.
5.4 Waiver Of Jury Trial. The parties hereto waive all right to trial by jury in any
action or proceeding to enforce or defend any rights under the transaction documents.
5.5 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic and legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as closely as possible in
a mutually acceptable manner in order that the transactions be consummated as originally
contemplated to the fullest extent possible.
5.6 Binding Effect; Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective heirs, successors and permitted assigns. Nothing in
this Agreement shall create or be deemed to create any third party beneficiary rights in any person
or entity not a party to this Agreement. No assignment of this Agreement or of any rights or
obligations hereunder may be made by the Seller or the Purchaser (by operation of law or otherwise)
without the prior written consent of the other party hereto and any attempted assignment without
the required consent shall be void.
5.7 Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws thereof.
5.8 Submission to Jurisdiction; Consent to Service of Process. The Purchaser and the
Seller each agrees to submit to personal jurisdiction and to waive any objection as to venue in the
federal or New York State courts located in the County of New York, State of New York. Service of
process on the Purchaser or the Seller in any action arising out of or relating to any of this
Agreement shall be effective if mailed to such party in accordance with the provisions of Section
5.9 hereof. Nothing herein shall preclude the Purchaser or the Seller from bringing suit or taking
other legal action in any other jurisdiction.
5.9 Notices. All notices and other communications under this Agreement shall be in
writing and shall be deemed given when delivered personally or mailed by certified mail, return
receipt required, to the parties at the following addresses (or to such other address as a party
may have specified by notice given to the other party pursuant to this provision):
If to the Seller, to:
THE XXXXXX X. AND XXXXX X. XXXXXXXXX 1992 CHARITABLE TRUST
c/o Xxxxxx X. Xxxxxxxxx, Trustee
00 Xxxxxx Xxxxxx
Xxxxxxxx, Xxx Xxxx 00000
THE XXXXXX X. AND XXXXX X. XXXXXXXXX 1992 CHARITABLE TRUST
c/o Xxxxxx X. Xxxxxxxxx, Trustee
00 Xxxxxx Xxxxxx
Xxxxxxxx, Xxx Xxxx 00000
If to the Purchaser, to:
Xxxxxxxxx Group, Inc
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: General Counsel
000 Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: General Counsel
5.10 Survival. All of the representations, warranties, covenants and agreements of
the parties in this Agreement shall survive the Closing.
5.11 Section and Other Headings. The section and other headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or interpretation of
this Agreement.
5.12 Counterparts. This Agreement may be executed and delivered (including by
facsimile transmission) in one or more counterparts, all of which when executed and delivered shall
be considered one and the same agreement.
[signature page follows]
IN WITNESS WHEREOF, each Seller and the Purchaser have executed this Agreement as of the day
and year first above written.
| PURCHASER: | ||||||
| XXXXXXXXX GROUP, INC. | ||||||
| By: Name: |
/s/ Xxxxxx X. Xxxxx
|
|||||
| Title: | Assistant Secretary | |||||
| SELLER: | ||||||
| THE XXXXXX X. AND XXXXX X. XXXXXXXXX 1992 CHARITABLE TRUST | ||||||
| By: XXXXXX X. XXXXXXXXX. Trustee | ||||||||
| By: | /s/ Xxxxxx X. Xxxxxxxxx
|
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