SPONSOR WARRANTS PURCHASE AGREEMENT
Exhibit 10.8
THIS SPONSOR WARRANTS PURCHASE AGREEMENT, dated as of June 23, 2010 (as it may from time to
time be amended and including all exhibits referenced herein, this “Agreement”), is entered into by
and between HH-HACII, L.P., a Delaware limited partnership (the “Sponsor”) and Xxxxx Acquisition
Company II, Inc. (the “Company”).
The Company intends to consummate a public offering of the Company’s units (the “Public
Offering”), each unit consisting of one share of the Company’s common stock, par value $0.0001 per
share (a “Share”), and one warrant to purchase one Share at an exercise price of $12.00 per Share.
The Sponsor has agreed to purchase an aggregate of 6,666,667 warrants (the “Sponsor Warrants”),
each Sponsor Warrant entitling the holder to purchase one Share at an exercise price of $12.00 per
Share.
NOW THEREFORE, in consideration of the mutual promises contained in this Agreement and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties to this Agreement hereby, intending legally to be bound, agree as follows:
AGREEMENT
Section 1. Authorization, Purchase and Sale; Terms of the Sponsor Warrants.
A. Authorization of the Sponsor Warrants. The Company has duly authorized the
issuance and sale of the Sponsor Warrants to the Sponsor.
B. Purchase and Sale of the Sponsor Warrants. Immediately prior to the consummation
of the Public Offering or on such earlier time and date as may be mutually agreed by the Sponsor
and the Company (the “Closing Date”), the Company shall issue and sell to the Sponsor, and the
Sponsor shall purchase from the Company, the Sponsor Warrants at a price of $0.75 per warrant for
an aggregate purchase price of $5,000,000 (the “Purchase Price”), which shall be paid by wire
transfer of immediately available funds to the Company in accordance with the Company’s wiring
instructions. On the Closing Date, upon the payment by the Sponsor of the Purchase Price by wire
transfer of immediately available funds to the Company, the Company shall deliver a certificate
evidencing the Sponsor Warrants duly registered in the Sponsor’s name to the Sponsor.
C. Terms of the Sponsor Warrants.
(i) Each Sponsor Warrant shall have the terms set forth in a Warrant Agreement to be entered
into by the Company and a warrant agent, in connection with the Public Offering (a “Warrant
Agreement”).
(ii) Registration Rights: At the time of the closing of the Public Offering, the Company and
the Sponsor shall enter into a registration rights agreement (the “Registration
Rights Agreement”) pursuant to which the Company will grant certain registration rights to the
Sponsor relating to the Sponsor Warrants and the Shares underlying the Sponsor Warrants.
Section 2. Representations and Warranties of the Company.
As a material inducement to the Sponsor to enter into this Agreement and purchase the Sponsor
Warrants, the Company hereby represents and warrants to the Sponsor (which representations and
warranties shall survive the Closing Date) that:
A. Organization and Corporate Power. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware and is qualified to
do business in every jurisdiction in which the failure to so qualify would reasonably be expected
to have a material adverse effect on the financial condition, operating results or assets of the
Company. The Company possesses all requisite corporate power and authority necessary to carry out
the transactions contemplated by this Agreement and the Warrant Agreement.
B. Authorization; No Breach.
(i) The execution, delivery and performance of this Agreement and the Sponsor Warrants have
been duly authorized by the Company as of the Closing Date. This Agreement constitutes the valid
and binding obligation of the Company, enforceable in accordance with its terms. Upon issuance in
accordance with, and payment pursuant to, the terms of the Warrant Agreement and this Agreement,
the Sponsor Warrants will constitute valid and binding obligations of the Company, enforceable in
accordance with their terms as of the Closing Date.
(ii) The execution and delivery by the Company of this Agreement and the Sponsor Warrants, the
issuance and sale of the Sponsor Warrants, the issuance of the Shares of common stock upon exercise
of the Sponsor Warrants and the fulfillment of and compliance with the respective terms hereof and
thereof by the Company, do not and will not as of the Closing Date (a) conflict with or result in a
breach of the terms, conditions or provisions of, (b) constitute a default under, (c) result in the
creation of any lien, security interest, charge or encumbrance upon the Company’s capital stock or
assets under, (d) result in a violation of, or (e) require any authorization, consent, approval,
exemption or other action by or notice or declaration to, or filing with, any court or
administrative or governmental body or agency pursuant to the Certificate of Incorporation of the
Company or the By Laws of the Company, or any material law, statute, rule or regulation to which
the Company is subject, or any agreement, order, judgment or decree to which the Company is
subject, except for any filings required after the date hereof under federal or state securities
laws.
C. Title to Securities. Upon issuance in accordance with, and payment pursuant to,
the terms hereof and the Warrant Agreement, the Shares issuable upon exercise of the Sponsor
Warrants will be duly and validly issued, fully paid and nonassessable. Upon issuance in
accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Sponsor
will have good title to the Sponsor Warrants and the Shares issuable upon exercise of
such Sponsor Warrants, free and clear of all liens, claims and encumbrances of any kind, other
than (i) transfer restrictions hereunder and under the other agreements contemplated hereby, (ii)
transfer restrictions under federal and state securities laws, and (iii) liens, claims or
encumbrances imposed due to the actions of the Sponsor.
-2-
D. Governmental Consents. No permit, consent, approval or authorization of, or
declaration to or filing with, any governmental authority is required in connection with the
execution, delivery and performance by the Company of this Agreement or the consummation by the
Company of any other transactions contemplated hereby.
Section 3. Representations and Warranties of the Sponsor.
As a material inducement to the Company to enter into this Agreement and issue and sell the
Sponsor Warrants to the Sponsor, the Sponsor hereby represents and warrants to the Company (which
representations and warranties shall survive the Closing Date) that:
A. Organization and Requisite Authority. The Sponsor is a limited partnership duly
organized, validly existing and in good standing under the laws of the State of Delaware. The
Sponsor possesses all requisite power and authority necessary to carry out the transactions
contemplated by this Agreement.
B. Authorization; No Breach.
(i) This Agreement constitutes a valid and binding obligation of the Sponsor, enforceable in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other laws of general applicability relating to or affecting
creditors’ rights and to general equitable principles (whether considered in a proceeding in equity
or law).
(ii) The execution and delivery by the Sponsor of this Agreement and the fulfillment of and
compliance with the terms hereof by the Sponsor does not and shall not as of the Closing Date
conflict with or result in a breach of the terms, conditions or provisions of the organizational
documents of the Sponsor or any other agreement, instrument, order, judgment or decree to which the
Sponsor is subject.
C. Investment Representations.
(i) The Sponsor is acquiring the Sponsor Warrants and, upon exercise of the Sponsor Warrants,
the Shares issuable upon such exercise (collectively, the “Securities”) for its own account, for
investment purposes only and not with a view towards, or for resale in connection with, any public
sale or distribution thereof.
(ii) The Sponsor is an “accredited investor” as such term is defined in Rule 501(a)(3) of
Regulation D.
(iii) The Sponsor understands that the Securities are being offered and will be sold to it in
reliance on specific exemptions from the registration requirements of the United States federal and
state securities laws and that the Company is relying upon the truth and accuracy of, and the
Sponsor’s compliance with, the representations and warranties of the Sponsor set forth herein in
order to determine the availability of such exemptions and the eligibility of the Sponsor to
acquire such Securities.
-3-
(iv) The Sponsor did not decide to enter into this Agreement as a result of any general
solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act of
1933, as amended (the “Securities Act”).
(v) The Sponsor has been furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale of the Securities which have
been requested by the Sponsor. The Sponsor has been afforded the opportunity to ask
questions of the executive officers and directors of the Company. The Sponsor understands that its
investment in the Securities involves a high degree of risk and it has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with
respect to the acquisition of the Securities.
(vi) The Sponsor understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or endorsement of the
Securities or the fairness or suitability of the investment in the Securities by the Sponsor nor
have such authorities passed upon or endorsed the merits of the offering of the Securities.
(vii) The Sponsor understands that: (a) the Securities have not been and are not being
registered under the Securities Act or any state securities laws, and may not be offered for sale,
sold, assigned or transferred unless (1) subsequently registered thereunder or (2) sold in reliance
on an exemption therefrom; and (b) except as specifically set forth in the Registration Rights
Agreement, neither the Company nor any other person is under any obligation to register the
Securities under the Securities Act or any state securities laws or to comply with the terms and
conditions of any exemption thereunder. In this regard, the Sponsor understands that the Securities
and Exchange Commission has taken the position that promoters or affiliates of a blank check
company and their transferees, both before and after a Business Combination, are deemed to be
“underwriters” under the Securities Act when reselling the securities of a blank check company.
Based on that position, Rule 144 adopted pursuant to the Securities Act would not be available for
resale transactions of the Securities despite technical compliance with the requirements of such
Rule, and the Securities can be resold only through a registered offering or in reliance upon
another exemption from the registration requirements of the Securities Act.
(viii) The Sponsor has such knowledge and experience in financial and business matters, knows
of the high degree of risk associated with investments in the securities of companies in the
development stage such as the Company, is capable of evaluating the merits and risks of an
investment in the Securities and is able to bear the economic risk of an investment in the
Securities in the amount contemplated hereunder for an indefinite period of time. The Sponsor has
adequate means of providing for it or his/her current financial needs and
contingencies and will have no current or anticipated future needs for liquidity which would
be jeopardized by the investment in the Securities. The Sponsor can afford a complete loss of its
or his investment in the Securities.
Section 4. Conditions of the Sponsor’s Obligations.
The obligation of the Sponsor to purchase and pay for the Sponsor Warrants is subject to the
fulfillment, on or before the Closing Date, of each of the following conditions:
-4-
A. Representations and Warranties. The representations and warranties of the Company
contained in Section 2 shall be true and correct at and as of the Closing Date as though then made.
B. Performance. The Company shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or
complied with by it on or before the Closing Date.
C. No Injunction. No litigation, statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court
or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby, which prohibits the consummation of any of the
transactions contemplated by this Agreement or the Warrant Agreement.
D. Warrant Agreement. The Company shall have entered into a Warrant Agreement with a
warrant agent on terms satisfactory to the Company and the Sponsor.
Section 5. Conditions of the Company’s Obligations.
The obligations of the Company to the Sponsor under this Agreement are subject to the
fulfillment, on or before the Closing Date, of each of the following conditions:
A. Representations and Warranties. The representations and warranties of the Sponsor
contained in Section 3 shall be true and correct at and as of the Closing Date as though then made.
B. Performance. The Sponsor shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or
complied with by the Sponsor on or before the Closing Date.
C. Corporate Consents. The Company shall have obtained the consent of its Board of
Directors authorizing the execution, delivery and performance of this Agreement and the Warrant
Agreement and the issuance and sale of the Sponsor Warrants hereunder.
D. No Injunction. No litigation, statute, rule, regulation, executive order, decree,
ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court
or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby, which prohibits the consummation of any of the
transactions contemplated by this Agreement or the Warrant Agreement.
E. Warrant Agreement. The Company shall have entered into a Warrant Agreement with a
warrant agent on terms satisfactory to the Company.
Section 6. Termination.
This Agreement may be terminated at any time after December 31, 2010 upon the election by
either the Company and the Sponsor upon written notice to the other party if the closing of the
Public Offering does not occur prior to such date.
-5-
Section 7. Survival of Representations and Warranties.
All of the representations and warranties contained herein shall survive the Closing Date.
Section 8. Definitions.
Terms used but not otherwise defined in this Agreement shall have the meaning assigned to such
terms in the Registration Statement.
Section 9. Miscellaneous.
A. Successors and Assigns. Except as otherwise expressly provided herein, all
covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto
shall bind and inure to the benefit of the respective successors of the parties hereto whether so
expressed or not. Notwithstanding the foregoing or anything to the contrary herein, the parties may
not assign this Agreement, other than assignments by the Sponsor to affiliates thereof.
B. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.
C. Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, none of which need contain the signatures of more than one party, but all such
counterparts taken together shall constitute one and the same agreement.
D. Descriptive Headings; Interpretation. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a substantive part of this Agreement. The
use of the word “including” in this Agreement shall be by way of example rather than by limitation.
E. Governing Law. This Agreement shall be deemed to be a contract made under the laws
of the State of Delaware and for all purposes shall be construed in accordance with the internal
laws of the State of Delaware.
F. Amendments. This letter agreement may not be amended, modified or waived as to any
particular provision, except by a written instrument executed by all parties hereto.
[SIGNATURE PAGES FOLLOW]
-6-
IN WITNESS WHEREOF, the parties hereto have executed this Agreement.
| COMPANY: Xxxxx Acquisition Company II, Inc. |
||||
| By: | /s/ Xxxxxx X. Xxxxxx | |||
| Xxxxxx X. Xxxxxx | ||||
| President and Chief Executive Officer | ||||
| SPONSOR: HH-HACII, L.P., By: HH-HACII GP, LLC, its general partner |
||||
| By: | /s/ Xxxxxx X. Xxxxx | |||
| Xxxxxx X. Xxxxx | ||||
| Manager | ||||
Sponsor Warrants Purchase Agreement Signature Page
