LOCK-UP AGREEMENT
Exhibit 10.4
May 5, 0000
00xx Xxxxxx General Acquisition Corp.
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Crumbs Holdings LLC
000 Xxxx 00xx Xxxxxx, Xxxxx 0000
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx 00xx Xxxxxx, Xxxxx 0000
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
This letter agreement (this “Agreement”) relates to a Business Combination Agreement
entered into as of January 9, 2011, as amended by that certain Amendment to Business Combination
Agreement, dated as of February 18, 2011, Amendment No. 2 to Business Combination Agreement, dated
as of March 17, 2011 and Amendment No. 3 to Business Combination Agreement, dated as of April 7,
2011 (collectively, and as amended, the “Business Combination Agreement”) by and among
00xx Xxxxxx General Acquisition Corp., a Delaware corporation (“Parent”),
57th Street Merger Sub LLC, a Delaware limited liability company and wholly-owned
subsidiary of Parent, Crumbs Holdings LLC, a Delaware limited liability company (the
“Company”), the members of the Company as set forth on the signature page thereof, and the
representatives of the Company and the Members. Capitalized terms used and not otherwise defined
herein are defined in the Business Combination Agreement and shall have the meanings given to such
terms in the Business Combination Agreement.
1. In order to induce all Parties to enter into the Business Combination Agreement, the
undersigned hereby agrees that, without the prior written consent of Parent and the Company, the
undersigned: (i) will not, directly or indirectly, offer, sell, agree to offer or sell, solicit
offers to purchase, grant any call option or purchase any put option with respect to, assign,
transfer, pledge, borrow or otherwise dispose of, any Equity Consideration received pursuant to the
Business Combination Agreement including, without limitation, any New Crumbs Class B Exchangeable
Units or Parent Series A Voting Preferred Stock received pursuant to the Business Combination
Agreement at the Effective Time (excluding any Liquidity Shares, Substitute Units, Substitute
Preferred Stock, Substituted Stock, or Common Stock or other equity securities issuable upon the
exchange thereof (collectively the “Excluded Shares”)) or Common Stock issuable upon the
exchange thereof (“Closing Equity Consideration”) or securities convertible into or
exercisable or exchangeable for such Closing Equity Consideration (collectively “Locked Up
Equity Consideration” (including, without limitation, Locked Up Equity Consideration, which may
be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations
promulgated under the Securities Exchange Act of 1934, as the same may be amended or supplemented
from time to time (such shares or securities, collectively, the “Lock-up Shares”)); (ii)
will not establish or increase any “put equivalent position” or liquidate or
decrease any “call equivalent position” (in each case within the meaning of Section 16 of the
Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder)
with respect to any Lock-up Shares, or otherwise enter into any swap, derivative or other
transaction or arrangement that transfers to another, in whole or in part, any economic consequence
of ownership of any Lock-up Shares, whether or not such transaction is to be settled by delivery of
Lock-up Shares, other securities, cash or other consideration; or (iii) will not engage in any
short selling of any Lock-up Shares for a period commencing on the Closing Date and ending with
respect to such shares or securities so indicated, as follows: (A) six (6) months following the
Closing Date for one-third (1/3) of the Lock-up Shares, (B) nine (9) months following the Closing
Date for one-half (1/2) of the Lock-up Shares, and (C) one (1) month after the audited financial
statements of Parent for fiscal year 2011 shall have been completed for the remainder of the
Lock-up Shares (all such periods together being the “Lock-up Periods”). For the avoidance
of doubt, the Lock-Up Periods shall apply to the Lock-Up Shares as set forth on Schedule I
to this Agreement. Notwithstanding anything in this Agreement to the contrary, this Agreement
shall not apply and shall not create any restrictions with respect to Excluded Shares (or
securities convertible into or exercisable pr exchangeable for such Excluded Shares).
Notwithstanding anything in this paragraph 1 to the contrary, the undersigned may exercise any
rights under the Registration Rights Agreement, provided, however, that no sale of Lock-up Shares
by the undersigned shall be permitted during the Lock-up Period. Nothing in this Agreement shall
prevent the undersigned from making any exchange permitted by the Exchange and Support Agreement,
of even date herewith, by and among Parent, the Company and the members of the Company.
2. The undersigned hereby authorizes Parent and/or the Company during the Lock-Up Periods to
cause any transfer agent for the Lock-up Shares to decline to transfer, and to note stop transfer
restrictions on the stock register and other records relating to, Lock-up Shares for which the
undersigned is the record holder and, in the case of Lock-up Shares for which the undersigned is
the beneficial but not the record holder, agrees during the Lock-Up Periods to cause the record
holder to cause the relevant transfer agent to decline to transfer, and to note stop transfer
restrictions on the stock register and other records relating to, such Lock-up Shares, if such
transfer would constitute a violation or breach of this Agreement.
3. Notwithstanding the foregoing, the undersigned may sell or otherwise transfer Lock-up
Shares during the undersigned’s lifetime or on death (i) if the undersigned is not a natural
person, to its equity holders, (ii) to the immediate family members (including spouses, significant
others, lineal descendants, brothers and sisters) of the undersigned or its equity holders, (iii) a
family trust, foundation or partnership established for the exclusive benefit of the undersigned,
its equity holders or any of their respective immediate family members, (iv) a charitable
foundation controlled by the undersigned, its equityholders or any of their respective immediate
family members or (v), by will or intestacy to the undersigned’s immediate family or to a trust,
the beneficiaries of which are exclusively the undersigned and a member or members of the
undersigned’s immediate family or a charitable foundation controlled by any such persons, provided
in each such case that the transferee thereof agrees to be bound by the restrictions set forth
herein.
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4. Notwithstanding the provisions of this Agreement, the undersigned hereby acknowledges and
agrees that such Member’s allocable portion of the Claim Shares set forth on the Member Allocation
are subject to the terms and conditions of the Business Combination Agreement including, without
limitation, the application of such Claim Shares to satisfy indemnification obligations as provided
therein..
5. The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this Agreement and that this Agreement constitutes the legal, valid and
binding obligation of the undersigned, enforceable in accordance with its terms. Upon request, the
undersigned will execute any additional documents necessary in connection with enforcement hereof.
Any obligations of the undersigned shall be binding upon the successors and assigns of the
undersigned from the date first above written.
6. This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware, without regard to the conflicts of laws principles thereof. Delivery of a signed copy
of this letter by facsimile or other electronic transmission shall be effective as delivery of the
original hereof.
[Signatures on the following page]
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Very truly yours, |
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EHL HOLDINGS, LLC |
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By: | /s/ Xxxxx Xxxxx | |||
Name: | Xxxxx Xxxxx | |||
Title: | Chairman | |||
[Signature Page to Lock-Up Agreement]
SCHEDULE I
1 Month after | ||||||||||||
completion of FY | ||||||||||||
6 Months following | 9 Months following | 2011 audited | ||||||||||
Shares | the Closing Date | the Closing Date | financials | |||||||||
New Crumbs Class B
Exchangeable Units |
633,749 | 950,625 | 316,875 | |||||||||
Parent Series A
Voting Preferred
Stock |
63,374.9 | 95,062.5 | 31,687.5 |