LANK ACQUISITION CORP. Greenwich, CT 06831
00
Xxxxxxxxx Xxxxxx
Xxxxxxxxx,
XX 00000
November
15, 2007
Xx.
Xxxxxx Xxxxxx
000
Xxxx
00xx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
To
whom
it may concern:
We
are
pleased to accept the offer you (the “Subscriber”) have made to purchase 15,625
shares (the “Shares”) of common stock, $0.0001 par value per share (the “Common
Stock”) of Lank Acquisition Corp., a Delaware corporation (the “Company”). The
terms on which the Company is willing to sell the Shares to the Subscriber,
and
the Company and the Subscriber’s agreements regarding such Shares, are as
follows:
1.
Purchase
of Shares.
For the
aggregate sum of $125.00 (the “Purchase Price”), which the Company acknowledges
receiving in cash, the Company hereby sells and issues the Shares to the
Subscriber, and the Subscriber hereby purchases the Shares from the Company,
on
the terms and subject to the conditions set forth in this Agreement.
Concurrently with the Subscriber’s execution of this Agreement, the Company is
delivering to the Subscriber a certificate registered in the Subscriber’s name
representing the Shares, receipt of which the Subscriber hereby
acknowledges.
2. The
Subscriber’s Representations, Warranties and Agreements.
To
induce the Company to issue the Shares to the Subscriber, the Subscriber hereby
represents and warrants to the Company on behalf of itself and on behalf of
each
of its members (if applicable), and agrees with the Company as
follows:
2.1. No
Government Recommendation or Approval.
The
Subscriber understands that no United States federal or state agency or similar
agency of any other country, has passed upon or made any recommendation or
endorsement of the offering of the Shares.
2.2. Experience,
Financial Capability and Suitability.
The
Subscriber is sufficiently experienced in financial and business matters to
be
capable of evaluating the merits and risks of this investment and to make an
informed decision relating thereto. The Subscriber is aware its investment
in
the Company is a speculative investment that has limited liquidity, because
there may never be an established market for the Company’s securities. The
Subscriber has the financial capability for making the investment and the
investment is a suitable one for the Subscriber. The Subscriber can, without
impairing its financial condition, hold the Shares for an indefinite period
of
time and can afford a complete loss of the investment. The Subscriber
acknowledges that the Company has urged the Subscriber to seek independent
advice from professional advisors relating to the suitability of an investment
in the Company and in connection with this Agreement, and that the Subscriber
has sought and received such independent professional advice with respect to
such investment and this Agreement or, after careful consideration, the
Subscriber has determined to waive its right to seek and/or receive such
independent professional advice.
2.3. Access
to Information.
Prior
to the execution of this Agreement, the Subscriber has had the opportunity
to
ask questions of and receive answers from representatives of the Company
concerning an investment in the Company, as well as the finances, operations,
business and prospects of the Company, and the opportunity to obtain additional
information to verify the accuracy of all information so obtained.
2.4. Regulation
D Offering.
Subscriber represents that it is an “accredited investor” as such term is
defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as
amended (the “Securities Act”) and acknowledges the sale contemplated hereby is
being made in reliance on a private placement exemption to “accredited
investors” within the meaning of Section 501(a) of Regulation D under the
Securities Act or similar exemptions under state law; and, accordingly, such
securities will be “restricted securities” within the meaning of Rule 144(a)(3)
under the Securities Act, and therefore may not be offered, pledged or sold
by
him, directly or indirectly, in the United States without registration under
United States federal and state securities laws and Subscriber understands
the
certificates representing such securities will contain a legend in respect
of
such restrictions.
2.5. Restrictions
on Transfer.
Subscriber acknowledges and understands the Shares
are being offered in a transaction not involving a public offering within the
meaning of the Securities Act. The Shares have not been registered under the
Securities Act, and, if in the future the Subscriber decides to offer, resell,
pledge or otherwise transfer the Shares, such Shares may be offered, resold,
pledged or otherwise transferred only (A) pursuant to an effective registration
statement filed under the Securities Act, (B) pursuant to an exemption from
registration under Rule 144 promulgated under the Securities Act, if available,
or (C) pursuant to any available other exemption from the registration
requirements of the Securities Act, and in each case in accordance with any
applicable securities laws of any state or any other jurisdiction. Subscriber
agrees that if any transfer of its Shares or any interest therein is proposed
to
be made, as a condition precedent to any such transfer, Subscriber may be
required to deliver to the Company an opinion of counsel satisfactory to the
Company. Absent registration or an available exemption from registration, the
Subscriber agrees that it will not resell the Shares. Subscriber explicitly
understands and acknowledges that the Securities and Exchange Commission (the
“SEC”) has taken the position the Subscriber would be considered a promoter
under the Securities Act and that promoters or affiliates of a blank check
company and their transferees, both before and after a business combination,
would act as “underwriters” under the Securities Act when reselling the
securities of that blank check company. Accordingly, Rule 144 promulgated under
the Securities Act will not be available to the Subscriber for the resale of
the
Shares despite technical compliance with the requirements of Rule 144, in which
event the resale transactions would need to be made through a registered
offering.
2
3. Escrow
of Shares.
Upon
consummation of the Company’s initial public offering (the “IPO”) of its
securities pursuant to the Company’s registration statement on Form S-1 under
the Securities Act (the “Registration Statement”), the Subscriber, and its
designees, shall enter into a securities escrow agreement (the “Escrow
Agreement”) with American Stock Transfer & Trust Company (the “Escrow
Agent”), whereby the Shares (and any shares of Common Stock which may be issued
as a dividend as a result of any stock split) shall be held in escrow and will
not be released until one year after the consummation of the Company’s initial
business combination, unless the Company were to engage in a transaction
subsequent to such business combination that results in all of the Company’s
stockholders of the combined entity having the right to exchange their shares
of
Common Stock for cash, securities or other property. As used herein, “Business
Combination” shall mean an acquisition by the Company by merger, capital stock
exchange, asset acquisition, stock purchase, reorganization or similar business
combination of one or more operating businesses.
4.
Waiver
of Liquidation Distributions; Conversion Rights.
In
connection with the Shares purchased pursuant to this Agreement and any other
Company securities purchased on a private placement basis prior to or concurrent
with the IPO, the Subscriber hereby waives any and all right, title, interest
or
claim of any kind in or to any distributions by the Company from the trust
account established by the Company in connection with the IPO (the “Trust
Account”), in the event of a liquidation of the Company upon the Company’s
failure to timely complete a Business Combination. For purposes of clarity,
in
the event the Subscriber purchases shares of Common Stock in the IPO or in
the
aftermarket, any additional shares so purchased shall be eligible to receive
any
liquidating distributions by the Company. However, in no event will Subscriber
have the right to redeem any Shares into funds held in the trust account with
the Escrow Agent upon the successful completion of a Business
Combination.
5. Restrictions
on Transfer.
5.1 Securities
Law Restrictions.
In
addition to the restrictions contained in the Escrow Agreement, Subscriber
agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all
or
any part of the Shares unless, prior thereto (a) a registration statement on
the
appropriate form under the Securities Act and applicable state securities laws
with respect to the Shares proposed to be transferred shall then be effective
or
(b) the Company shall have received an opinion from counsel reasonably
satisfactory to the Company, that such registration is not required because
such
transaction complies with the Securities Act and the rules promulgated by the
Securities and Exchange Commission thereunder and with all applicable state
securities laws.
5.2 Restrictive
Legends.
All
certificates representing the Shares shall have endorsed thereon legends
substantially as follows:
“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND
NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH LAWS OR AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH LAWS WHICH, IN THE OPINION
OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”
3
“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
CONDITIONS CONTAINED IN A STOCK ESCROW AGREEMENT (THE “AGREEMENT”) AND MAY NOT
BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM
OF
THE ESCROW PERIOD (AS DEFINED IN THE AGREEMENT).”
5.3. Additional
Shares or Substituted Securities.
In the
event of the declaration of a stock dividend, the declaration of an
extraordinary dividend payable in a form other than stock, a spin-off, a stock
split, an adjustment in conversion ratio, a recapitalization or a similar
transaction affecting the Company’s outstanding capital stock without receipt of
consideration, any new, substituted or additional securities or other property
which are by reason of such transaction distributed with respect to any Shares
subject to this Section 5 or into which such Shares thereby become convertible
shall immediately be subject to this Section 5 and Section 3.3. Appropriate
adjustments to reflect the distribution of such securities or property shall
be
made to the number and/or class of Shares subject to this Section 5 and Section
3.3.
6. Other
Agreements.
6.1. Further
Assurances.
Subscriber agrees to execute such further instruments and to take such further
action as may reasonably be necessary to carry out the intent of this
Agreement.
6.2 Notices.
All
notices, requests, consents and other communications hereunder shall be in
writing, shall be addressed to the receiving party’s address set forth on the
first page of this Agreement or to such other address as a party may designate
by notice hereunder, and shall be either (a) delivered by hand, (b) sent by
overnight courier, or (c) sent by certified mail, return receipt requested,
postage prepaid. All notices, requests, consents and other communications
hereunder shall be deemed to have been given either (i) if by hand, at the
time
of the delivery thereof to the receiving party at the address of such party
set
forth above, (ii) if sent by overnight courier, on the next business day
following the day such notice is delivered to the courier service, or (iii)
if
sent by certified mail, on the fifth (5th)
business day following the day such mailing is made.
6.3. Entire
Agreement.
This
Agreement, along with that certain letter agreement by and between the
Subscriber and the Company, substantially in the form filed as an exhibit to
the
Registration Statement, embodies the entire agreement and understanding between
the Subscriber and the Company with respect to the subject matter hereof and
supersedes all prior oral or written agreements and understandings relating
to
the subject matter hereof. No statement, representation, warranty, covenant
or
agreement of any kind not expressly set forth in this Agreement shall affect,
or
be used to interpret, change or restrict, the express terms and provisions
of
this Agreement.
4
6.4. Modifications
and Amendments.
The
terms and provisions of this Agreement may be modified or amended only by
written agreement executed by all parties hereto.
6.5. Waivers
and Consents.
The
terms and provisions of this Agreement may be waived, or consent for the
departure therefrom granted, only by written document executed by the party
entitled to the benefits of such terms or provisions. No such waiver or consent
shall be deemed to be or shall constitute a waiver or consent with respect
to
any other terms or provisions of this Agreement, whether or not similar. Each
such waiver or consent shall be effective only in the specific instance and
for
the purpose for which it was given, and shall not constitute a continuing waiver
or consent.
6.6. Assignment.
The
rights and obligations under this Agreement may not be assigned by either party
hereto without the prior written consent of the other party.
6.7. Benefit.
All
statements, representations, warranties, covenants and agreements in this
Agreement shall be binding on the parties hereto and shall inure to the benefit
of the respective successors and permitted assigns of each party hereto. Nothing
in this Agreement shall be construed to create any rights or obligations except
among the parties hereto, and no person or entity shall be regarded as a
third-party beneficiary of this Agreement.
6.8. Governing
Law.
This
Agreement and the rights and obligations of the parties hereunder shall be
construed in accordance with and governed by the law of State of New York,
without giving effect to the conflict of law principles thereof.
6.9. Severability.
In the
event that any court of competent jurisdiction shall determine that any
provision, or any portion thereof, contained in this Agreement shall be
unreasonable or unenforceable in any respect, then such provision shall be
deemed limited to the extent that such court deems it reasonable and
enforceable, and as so limited shall remain in full force and effect. In the
event that such court shall deem any such provision, or portion thereof, wholly
unenforceable, the remaining provisions of this Agreement shall nevertheless
remain in full force and effect.
6.10. No
Waiver of Rights, Powers and Remedies.
No
failure or delay by a party hereto in exercising any right, power or remedy
under this Agreement, and no course of dealing between the parties hereto,
shall
operate as a waiver of any such right, power or remedy of such party. No single
or partial exercise of any right, power or remedy under this Agreement by a
party hereto, nor any abandonment or discontinuance of steps to enforce any
such
right, power or remedy, shall preclude such party from any other or further
exercise thereof or the exercise of any other right, power or remedy hereunder.
The election of any remedy by a party hereto shall not constitute a waiver
of
the right of such party to pursue other available remedies. No notice to or
demand on a party not expressly required under this Agreement shall entitle
the
party receiving such notice or demand to any other or further notice or demand
in similar or other circumstances or constitute a waiver of the rights of the
party giving such notice or demand to any other or further action in any
circumstances without such notice or demand.
6.11. Survival
of Representations and Warranties.
All
representations and warranties made by the parties hereto in this Agreement
or
in any other agreement, certificate or instrument provided for or contemplated
hereby, shall survive the execution and delivery hereof and any investigations
made by or on behalf of the parties.
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6.12. No
Broker or Finder.
Each of
the parties hereto represents and warrants to the other that no broker, finder
or other financial consultant has acted on their behalf in connection with
this
Agreement or the transactions contemplated hereby in such a way as to create
any
liability on the other. Each of the parties hereto agrees to indemnify and
save
the other harmless from any claim or demand for commission or other compensation
by any broker, finder, financial consultant or similar agent claiming to have
been employed by or on behalf of such party and to bear the cost of legal
expenses incurred in defending against any such claim.
6.13. Headings
and Captions.
The
headings and captions of the various subdivisions of this Agreement are for
convenience of reference only and shall in no way modify or affect the meaning
or construction of any of the terms or provisions hereof.
6.14. Counterparts.
This
Agreement may be executed in one or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to
the
other party, it being understood that both parties need not sign the same
counterpart. In the event that any signature is delivered by facsimile
transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such
facsimile or “.pdf” signature page were an original thereof.
[SIGNATURE
PAGE FOLLOWS]
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If
any
foregoing accurately sets forth our understanding and agreement, please sign
the
enclosed copy of this agreement and return it to us.
Very
truly yours,
By:
____/s/
Xxxx Davis________________
Name:
Xxxx Xxxxx
Title:
Co-Chairman, Co-President and
Co-
Chief
Financial Officer
Accepted
and agreed this
15th
day
of November, 2007
/s/
Xxxxxx
Xxxxxx
Xxxxxx
Xxxxxx
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