Re: Initial Public Offering
EXHIBIT 10.25
November 30, 2006
Citigroup Global Markets Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
| Re: | Initial Public Offering |
Ladies and Gentlemen:
This
Amended Letter Agreement amends and supersedes the Letter Agreement, dated July 20, 2006, by and
among the above referenced parties and the undersigned.
Citigroup Global Markets Inc. (“Citigroup”) is acting as sole bookrunning manager of
the initial public offering (the “IPO”) of Units consisting of one share of Common Stock of
Freedom Acquisition Holdings, Inc. (the “Company”), and one warrant to purchase one share
of Common Stock of the Company and representative (the “Representative”) of Ladenburg
Xxxxxxxx & Co. Inc. and any other underwriters named in the final prospectus (the
“Prospectus”) relating to the IPO (Citigroup, Ladenburg, Xxxxxxxx & Co. Inc. and any other
underwriters, collectively, the “Underwriters”). The undersigned stockholder, officer
and/or director of the Company, in consideration of the Underwriters underwriting the Company’s
IPO, hereby agrees as set forth below. Certain capitalized terms used herein are defined in
Section 1 hereof.
1. As used herein, (i) a “Business Combination” shall mean an acquisition by merger,
capital stock exchange, asset or stock acquisition, reorganization or otherwise, of an operating
business selected by the Company; (ii) “Founders” shall mean all stockholders, officers and
directors who are stockholders of the Company immediately prior to the IPO; (iii) “Common
Stock” shall mean the Company’s common stock, par value $0.0001 per share, (iv) “Founders’
Shares” shall mean all of the shares of Common Stock of the Company owned by a Founder prior to
the IPO, (v) “IPO Shares” shall mean the shares of Common Stock issued in the Company’s
IPO, (vi) “Founders’ Warrants” shall mean all warrants to purchase shares of Common Stock
of the Company owned by a Founder prior to the IPO, other than the Sponsors’ Warrants; (vii)
“Founders’ Units” shall mean the 7,500,000 units issued by the Company to the Founders
prior to the IPO, of which the Founders’ Shares and the Founders’ Warrants are a part; (viii)
“Sponsors’ Warrants” shall mean the 4,500,000 warrants to purchase shares of Common Stock
to be issued to the Sponsors in a private placement immediately prior to the IPO; (ix)
“Co-Investment Units” shall mean the 5,000,000 units of the Company to be issued to the
Sponsors in a private placement that will occur immediately prior to the consummation of a
Business Combination by the Company; (x) “Co-Investment Shares” shall mean the Common Stock
underlying the Co-Investment Units; (xi) “Co-Investment Warrants” shall mean the warrants
to
purchase shares of Common Stock underlying the Co-Investment Units; and (xii) “Locked-Up
Securities” shall mean all issued and outstanding Founders’ Units, Founders’ Shares and
Founders’ Warrants (including the shares of Common Stock to be issued upon exercise of the
Founders’ Warrants) and all Sponsors’ Warrants (including the shares of Common Stock to be issued
upon exercise of the Sponsors’ Warrants), Co-Investment Units, Co-Investment Shares and
Co-Investment Warrants (including the shares of Common Stock to be issued upon exercise of the
Co-Investment Warrants) to be issued after the date hereof in accordance with the terms and
conditions set forth in the Prospectus.
2. If the Company solicits approval of its stockholders of a Business Combination, the
undersigned will vote (i) all Founders’ Shares owned by him or it in accordance with the majority
of the votes cast by the holders of the IPO Shares and (ii) all other shares of the Company’s
Common Stock that may be acquired by him or it in any private placement, the IPO or in the
aftermarket for such Business Combination.
3. In the event that the Company fails to consummate a Business Combination by the later of
(i) 18 months after the consummation of the IPO (the “Consummation Date”) or (ii) 24 months
after the Consummation Date in the event that either a letter of intent, an agreement in principle
or a definitive agreement to consummate a Business Combination was executed but no Business
Combination was consummated within such 18 month period (such later date being referred to herein
as the “Termination Date”), the undersigned shall, to the fullest extent permitted by the
Delaware General Corporation Law (the “DGCL”), (i) take all action necessary to dissolve
the Corporation and liquidate the trust account established under the Investment Management Trust
Agreement to be entered into between the Company and Continental Stock Transfer & Trust Company
(the “Trust Account”) to holders of IPO Shares as promptly as practicable after approval by
the Company’s stockholders (subject to the requirements of the DGCL) and (ii) vote all Founders’
Shares and all of the shares of the Company’s Common Stock that may be acquired by him or it in any
private placement, the IPO or in the aftermarket in favor of any dissolution and plan of
distribution recommended by the Company’s Board of Directors, and promptly cause the Company to
prepare and file a proxy statement with the Securities and Exchange Commission setting out the plan
of dissolution and distribution. If no proxy statement seeking the approval of the stockholders
for a Business Combination has been filed within 60 days prior to the Termination Date, and the
Board of Directors convenes, adopts and recommends to the stockholders the liquidation and
dissolution of the Company, and the Company files a proxy statement with the Securities and
Exchange Commission seeking stockholder approval for such plan, the undersigned agrees to vote all
Founders’ Shares and all of the shares that may be acquired by him or it in any private placement,
the IPO or in the aftermarket in favor of any such dissolution and plan of distribution recommended
by the Company’s Board of Directors. The undersigned hereby waives any and all right, title,
interest or claim of any kind (“Claim”) to participate in any liquidating distribution of
the Trust Account as part of the Company’s plan of distribution with respect to the Founders’
Shares if the Company fails to consummate a Business Combination and the Trust Account is
consequently liquidated and hereby waives any Claim the undersigned may have in the future as a
result of, or arising out of, any contracts or agreements with the Company and will not seek
recourse against
the Trust Account for any reason whatsoever. The undersigned acknowledges and agrees that
there will be no distribution from the Trust Account with respect to any warrants, all rights of
which will terminate on the Company’s liquidation.
4. The undersigned acknowledges and agrees that the Company will not consummate any Business
Combination which involves a company which is affiliated with any of the Founders, directors and/or
officers of the Company or with any Company that the undersigned has had any discussions, formal or
otherwise, with respect to a Business Combination with another company, prior to the consummation
of the IPO.
5. Neither the undersigned, any member of the family of the undersigned, nor any affiliate of
the undersigned will be entitled to receive and will not accept any compensation for services
rendered to the Company prior to the consummation of the Business Combination; provided, however,
that commencing upon the Consummation Date, Berggruen Holdings, Inc. shall be allowed to charge the
Company an allocable share of its overhead, $10,000 per month, to compensate it for office space,
administrative services and secretarial support until the earlier of the Company’s consummation of
a Business Combination or its liquidation. Berggruen Holdings North America Ltd. (“Berggruen
Holdings”), Xxxxxx Equities II, LLC, the undersigned and the officers and directors of the
Company shall also be entitled to reimbursement from the Company for their out-of-pocket expenses
incurred in connection with seeking and consummating a Business Combination.
6. Neither the undersigned, any member of the family of the undersigned, or any affiliate of
the undersigned will be entitled to receive or accept a finder’s fee or any other compensation in
the event the undersigned, any member of the family of the undersigned or any affiliate of the
undersigned originates a Business Combination. In addition, the undersigned will not take
retaining his positions with the Company into consideration in determining which acquisition to
pursue.
7. In order to induce you and the other Underwriters to enter into the Underwriting Agreement,
the undersigned will not, without the prior written consent of Citigroup, offer, sell, contract to
sell, pledge or otherwise dispose of (or enter into any transaction which is designed to, or might
reasonably be expected to, result in the disposition (whether by actual disposition or effective
economic disposition due to cash settlement or otherwise) by the undersigned or any affiliate of
the undersigned or any person in privity with the undersigned or any affiliate of the undersigned),
directly or indirectly, including the filing (or participation in the filing) of a registration
statement with the Securities and Exchange Commission in respect of, or establish or increase a put
equivalent position or liquidate or decrease a call equivalent position within the meaning of
Section 16 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) and the
rules and regulations of the Securities and Exchange Commission promulgated thereunder with respect
to, any shares of capital stock (including the Locked Up Securities) of the Company or any
securities convertible into, or exercisable or exchangeable for such capital stock, or publicly
announce an intention to effect any such transaction during the Restricted Period; provided,
however, that the foregoing sentence shall not apply to (A) shares of Common Stock disposed of as
bona fide gifts approved in writing by Citigroup, (B) any transfer for estate
planning purposes of shares of Common Stock to persons immediately related to such transferor
by blood, marriage or adoption, (C) any trust solely for the benefit of such transferor and/or the
persons described in the preceding clause, or (D) the transfer by Berggruen Holdings or Xxxxxx
Equities II, LLC to the Company’s officers, directors and employees and other persons or entities
associated with Xxxxxxx Xxxxxxxxx or Xxxxxx X. Xxxxxxxx; provided, however, that with respect to
each of the transfers described in clauses (A), (B), (C) and (D) of this sentence, (i) prior to
such transfer, the transferee of such transfer, or the trustee or legal guardian on behalf of any
transferee, agrees in writing to be bound by the terms of this letter and (ii) no filing by any
party under the Exchange Act shall be required or shall be voluntarily made in connection with such
disposition or transfer. The term “Restricted Period” means the period commencing on the
date hereof and ending one year from the consummation of a Business Combination, except that if (a)
during the last 17 days of the Restricted Period the Company issues an earnings release or material
news or a material event relating to the Company occurs or (b) prior to the expiration of the
Restricted Period the Company announces that it will release earnings results during the 16 day
period beginning on the last day of the Restricted Period, then the Restricted Period shall end on
and include the 18th day following the date of the issuance of the earnings release or
the occurrence of the material news or material event.
8. The undersigned agrees to be a Director of the Company until the earlier of the
consummation by the Company of a Business Combination or the dissolution and liquidation of the
Company. The undersigned’s biographical information furnished to the Company and the Representative
and attached hereto as Exhibit A is true and accurate in all respects, does not omit any
material information with respect to the undersigned’s background and contains all of the
information required to be disclosed pursuant to Section 401 of Regulation S-K, promulgated under
the Securities Act of 1933, as amended. The undersigned’s Questionnaire furnished to the Company
and the Representative and annexed as Exhibit B hereto is true and accurate in all
respects. The undersigned represents and warrants that:
(a) he is not subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any act or practice
relating to the offering of securities in any jurisdiction;
(b) he has never been convicted of or pleaded guilty to any crime (i) involving any
fraud or (ii) relating to any financial transaction or handling of funds of another person,
or (iii) pertaining to any dealings in any securities and he is not currently a defendant in
any such criminal proceeding; and
(c) he has never been suspended or expelled from membership in any securities or
commodities exchange or association or had a securities or commodities license or
registration denied, suspended or revoked.
9. The undersigned has full right and power, without violating any agreement by which he is
bound, to enter into this Agreement and to serve as a Director of the Company.
10. The undersigned authorizes any employer, financial institution, or consumer credit
reporting agency to release to the Representative and its legal representatives or agents
(including any investigative search firm retained by the Representative) any information they may
have about the undersigned’s background and finances (“Information”), purely for the
purposes of the Company’s IPO (and shall thereafter hold such information confidential). Neither
the Representative nor its agents shall be violating the undersigned’s right of privacy in any
manner in requesting and obtaining the Information and the undersigned hereby releases them from
liability for any damage whatsoever in that connection.
11. The undersigned hereby waives his or its right to exercise redemption rights with respect
to any Founders’ Shares owned by the undersigned, directly or indirectly, and agrees that he will
not seek redemption for cash with respect to such Founders’ Shares in connection with any vote to
approve a Business Combination (as is more fully defined in the Prospectus).
[Signature Page to Follow]
12. The undersigned hereby agrees that any action, proceeding or claim against the undersigned
arising out of or relating in any way to this Agreement shall be brought and enforced in the courts
of the State of New York or the United States District Court for the Southern District of New York,
and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The
undersigned hereby waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenience forum.
| By: | /s/ XXXXXXX X. XXXXXX | |||
| Xxxxxxx X. Xxxxxx | ||||
EXHIBIT A
Xxxxxxx X. Xxxxxx has been a member of our board of directors since July 2006. Xx. Xxxxxx has
been the President and Chief Executive Officer of The Xxxxx Xxxxxx Companies Inc. since July 1,
2004. Xx. Xxxxxx has also served as Chief Operating Officer of The Xxxxx Xxxxxx Companies Inc.
from January 2003 through June 2004, and Group President of The Xxxxx Xxxxxx Companies Inc. from
July 2001 through 2002, where he was responsible for the worldwide business of Clinique and Origins
and the company’s retail store and online operations. From 1998 to 2001, Xx. Xxxxxx was President
of Clinique Laboratories. Prior to then, he was President of Origins Natural Resources Inc.; he
had been the senior officer of the Origins brand since its creation in 1990. He joined The Xxxxx
Xxxxxx Companies in 1986 as Regional Marketing Director of Clinique U.S.A. in the New York Metro
area. Xx. Xxxxxx then spent two years at Prescriptives as Field Sales Manager. Prior to joining
The Xxxxx Xxxxxx Companies, he completed Macy’s executive training program in New York City and
became Associate Merchandising Manager of the New York Division/Dallas store at the time of its
opening in September 1985. Xx. Xxxxxx graduated from the Xxxxxxx School of the University of
Pennsylvania in 1983 with a Bachelor of Science degree in Economics. He is a member of the Board
of Trustees of The University of Pennsylvania and the Boards of Directors of the Fresh Air Fund,
the 00xx Xxxxxx Y and the Partnership for New York City. He is also a member of the Boards of The
Xxxxx Xxxxxx Companies Inc. and True Temper Corporation.
EXHIBIT B
See attached D&O Questionnaire
