Document:

INSIDER
      WARRANT PURCHASE AGREEMENT

     

    This
      INSIDER WARRANT PURCHASE AGREEMENT (this “Agreement”)
      is
      made as of February 20, 2008 by and between Transformation Capital Corporation,
      a Delaware corporation (the “Company”),
      and
      Randall Yanker, Elliot Stein Jr. and Rodney Yanker (the “Founders”).

     

    WHEREAS,
      the Company is proposing to file a registration statement (the “Registration
      Statement”)
      on
      Form S-1 under the Securities Act of 1933, as amended (the “Securities
      Act”)
      with
      the Securities and Exchange Commission in connection with a proposed initial
      public offering (the “Initial
      Public Offering”)
      of
      15,000,000 units (“Units”),
      each
      consisting of one share of common stock of the Company, par value $0.0001 per
      share (“Common
      Stock”),
      and
      one warrant to purchase one additional share of Common Stock for $7.50, and,
      at
      the election of the underwriters for the Initial Public Offering (the
“Underwriters”),
      up to
      an additional 2,250,000 Units to cover over-allotments, in each case subject
      to
      the terms and conditions set forth in the Registration Statement;
      and

     

    WHEREAS,
      the Company desires to issue and sell, and the Founders desire to subscribe
      for,
      purchase and acquire an aggregate of 4,750,000 Warrants in a private placement
      to occur on or prior to the effectiveness of the Initial Public Offering on
      the
      terms and conditions hereinafter set forth;

     

    NOW,
      THEREFORE, for and in consideration of the promises and mutual covenants set
      forth herein, the parties hereto agree as follows:

     

    1.           Purchase
      and Sale of the Insider Warrants.  On
      or prior to the date of effectiveness of the initial public offering, the
      Company shall issue and sell to the Founders, and the Founders shall subscribe
      for and purchase from the Company, the number of warrants (the “Insider
      Warrants”)
      set
      forth opposite their respective names in Schedule I hereto at a purchase price
      of $1.00 per Insider Warrant for an aggregate purchase price of
      $4,750,000.  The terms of the Insider Warrants shall be set forth in a
      warrant agreement (the “Warrant
      Agreement”)
      to be
      entered into by and between the Company and Continental Stock Transfer &
Trust Company or such other warrant agent as may be selected by the Company
      (the
“Warrant
      Agent”),
      which
      Warrant Agreement shall contain such provisions with regard to the Insider
      Warrants as are contained in the Registration Statement and such other terms
      as
      are typical in warrant agreements of blank check companies.

    

    2.           Closing
      of Purchase and Sale.  The
      closing of the purchase and sale of the Insider Warrants hereunder, including
      payment for and delivery of the Insider Warrants, shall take place at the
      offices of the Company or the Company’s legal counsel on or prior to the
      effectiveness of the Initial Public Offering.  At the closing, the
      Company shall deliver to each Founder a certificate evidencing the Insider
      Warrants purchased by such Founder, registered in such Founder’s name, upon the
      payment of the aggregate purchase price therefor in immediately available funds
      by delivery of a cashiers check or by wire transfer to an account designated
      by
      the Company.

     

    3.           Registration
      Rights.  At
      the time of the closing of the Initial Public Offering, the Company and the
      Founders shall enter into a registration rights agreement pursuant to which
      the
      Company will grant certain registration rights to the Founders relating to
      the
      Insider Warrants and the Common Stock issuable upon exercise of the Insider
      Warrants.

     

    4.           Founder
      Representations and Warranties.  In
      connection with the purchase of the Insider Warrants, each of the Founders,
      severally and not jointly, represents and warrants to the Company the
      following:

     

    (a)           Investment
      Representations.

     

    (i)           Such
      Founder is familiar with the Company’s business plans and financial condition
      and has acquired sufficient information about the Company to reach an informed
      and knowledgeable decision to acquire the Insider Warrants.  Such
      Founder has been afforded the opportunity to ask questions of the executive
      officers and directors of the Company.  Such Founder understands that
      its investment in the Insider Warrants involves a high degree of
      risk.  Such Founder has sought such accounting, legal and
      tax

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    advice
      as
      it has considered necessary to make an informed investment decision with respect
      to such Founder’s acquisition of the Insider Warrants.  Such Founder
      has such knowledge and expertise in financial and business matters, knows of
      the
      high degree of risk associated with investments generally and particularly
      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
      Insider Warrants, and is able to bear the economic risk of an investment in
      the
      Insider Warrants in the amount contemplated hereunder.  Such Founder
      understands that there presently is no public market for the Insider Warrants
      and none is anticipated to develop in the foreseeable future.  Such
      Founder can afford a complete loss of its investment in the Insider
      Warrants.  Such Founder is purchasing the Insider Warrants for
      investment for such Founder’s own account only and not with a view to, or for
      resale in connection with, any “distribution” thereof within the meaning of the
      Securities Act; provided,
      however,
      that
      the Company acknowledges that certain of the Insider Warrants may ultimately
      be
      purchased by certain directors of the Company and certain other permitted
      transferees identified by the Founders to the Company; but further provided
      that
      such directors and/or such permitted transferees shall make the same
      representations and warranties as are contained in this Agreement and any
      agreement with the directors and/or such permitted transferees shall include
      the
      same terms and conditions as are contained in this Agreement.

     

    (ii)           Such
      Founder understands that the Insider Warrants have not been registered under
      the
      Securities Act or any state securities law by reason of a specific exemption
      therefrom, and that the Company is relying on the truth and accuracy of, and
      such Founder’s compliance with, the representations and warranties and
      agreements of such Founder set forth herein to determine the availability of
      such exemptions and the eligibility of such Founder to acquire such Insider
      Warrants, including, but not limited to, the bona fide nature of such Founder’s
      investment intent as expressed herein.

     

    (iii)           Such
      Founder further acknowledges and understands that the Insider Warrants must
      be
      held indefinitely unless the Insider Warrants are subsequently registered under
      the Securities Act or an exemption from such registration is
      available.  Such Founder understands that the certificates evidencing
      the Insider Warrants will be imprinted with a legend that prohibits the transfer
      of the Insider Warrants unless the Insider Warrants are registered or such
      registration is not required in the opinion of counsel for the
      Company.

     

    (iv)           Such
      Founder represents that it is an “accredited
      investor”
as
      that
      term is defined in Rule 501 of Regulation D promulgated under the Securities
      Act.

     

    (b)          
      Power; Authorization; No Breach.  
      Such Founder has all necessary power and authority to enter into this Agreement
      and to consummate the transactions contemplated hereby. This Agreement has
      been
      duly executed and delivered by such Founder.  This Agreement
      constitutes the valid, binding and enforceable obligation of such Founder,
      enforceable in accordance with its terms, except as enforceability may be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium,
      fraudulent transfer or similar laws of general application now or hereafter
      in
      effect affecting the rights and remedies of creditors and by general principles
      of equity (regardless of whether enforcement is sought in a proceeding at law
      or
      in equity).  The purchase by such Founder of the Insider Warrants does
      not conflict with any material contract by which such Founder or its property
      is
      bound, or any laws or regulations or decree, ruling or judgment of any court
      applicable to such Founder or its property.

    

    (c)           Such
      Founder 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) of the
      Securities Act.

    

    (d)           Such
      Founder understands that no U.S. federal or state agency or any other government
      or governmental agency has passed on or made any recommendation or endorsement
      of the Insider Warrants or the fairness or suitability of the investment in
      the
      Insider Warrants, nor have such authorities passed upon or endorsed the merits
      of the offering of the Insider Warrants.

     

    5.           Company
      Representations and Warranties.  In
      connection with the issuance and sale of the Insider Warrants, the Company
      hereby represents and warrants to the Founders the following:

    
      
        
        

      

      
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    (a)           Organization
      and Corporate Power.  The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Delaware and the Company has all
      necessary corporate power and authority to enter into this Agreement and to
      consummate the transactions contemplated hereby.

     

    (b)           Authorization;
      No Breach.  All
      corporate action necessary to be taken by the Company to authorize the
      execution, delivery and performance of this Agreement and all other agreements
      and instruments delivered by the Company in connection with the transactions
      contemplated hereby has been duly and validly taken and this Agreement has
      been
      duly executed and delivered by the Company.  This Agreement
      constitutes the valid, binding and enforceable obligation of the Company,
      enforceable in accordance with its terms, except as enforceability may be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium,
      fraudulent transfer or similar laws of general application now or hereafter
      in
      effect affecting the rights and remedies of creditors and by general principles
      of equity (regardless of whether enforcement is sought in a proceeding at law
      or
      in equity).  The issuance and sale by the Company of the Insider
      Warrants does not conflict with the certificate of incorporation or by-laws
      of
      the Company or any material contract by which the Company or its property is
      bound, or any federal or state laws or regulations or decree, ruling or judgment
      of any United States or state court applicable to the Company or its
      property.

     

    (c)           Title
      to Securities.  
      The Insider Warrants and the Common Stock issuable upon exercise of such Insider
      Warrants will be duly authorized prior to issuance of such Insider Warrants.
      Upon issuance and delivery in accordance with, and payment pursuant to, the
      terms hereof and the Warrant Agreement, the Founders will have good title to
      the
      Insider Warrants and the Common Stock issuable upon exercise of such Insider
      Warrants, free and clear of all liens, claims and encumbrances of any kind,
      other than transfer restrictions hereunder and under the other agreements
      contemplated hereby. Upon issuance of the Insider Warrants in accordance with,
      and payment pursuant to, the terms hereof and the Warrant Agreement, the Common
      Stock issuable upon exercise of the Insider Warrants will be duly and validly
      issued, fully paid and nonassessable and will be free and clear of all liens
      and
      claims.  

     

    6.           Survival
      of Representations and Warranties.  All
      of the representations and warranties contained herein shall survive the closing
      date of the purchase and sale of the Insider Warrants.

     

    7.           Transfer
      and Redemption Restrictions.

     

    (a)           Transfer
      Restrictions.  Each
      Founder hereby acknowledges and agrees to be bound by the transfer restrictions
      set forth in the Warrant Agreement.

     

    (b)           Redemption.  Each
      of the Company and each of the Founders hereby acknowledges and agrees that,
      notwithstanding any call for redemption of the Insider Warrants by the Company
      in accordance with the terms of the Warrant Agreement, no Insider Warrants
      held
      by any Founder or any of their Permitted Transferees (as defined in the Warrant
      Agreement) at the time of such call for redemption shall be redeemable by the
      Company.

     

    8.           Miscellaneous.

     

    (a)           Governing
      Law.  This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York without regard to the principles of conflicts of law
      thereof.

     

    (b)           Further
      Execution.  The
      parties agree to take all such further action as may reasonably be necessary
      to
      carry out and consummate this Agreement as soon as practicable, and to take
      whatever steps may be necessary to obtain any governmental approval in
      connection with or otherwise qualify the issuance of the Insider Warrants that
      are the subject of this Agreement.

     

    (c)           Amendment.  This
      Agreement may not be amended, modified or waived, in whole or in part, except
      by
      an agreement in writing signed by each of the parties hereto.

    
      
        
        

      

      
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          3 -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

     

    
      	
               

            	
              COMPANY:

            
	 	 
	
               

            	
              TRANSFORMATION
                CAPITAL CORPORATION

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

              By:

            	
               

              /s/
                Randall S. Yanker

            
	
               

            	
               

            	
              Name:

            	
              Randall
                S. Yanker

            
	
               

            	
               

            	
              Title:

            	
              President
                and Chief Executive Officer

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              PURCHASERS:

            
	
               

            	
               

            
	
               

            	
              Randall
                Yanker

            
	
               

            	
               

            
	
               

            	
              /s/
                Randall S. Yanker

            
	
               

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	
              Elliot
                Stein Jr.

            
	
               

            	
               

            
	
               

            	
              /s/
                Elliot Stein Jr.

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              Rodney
                Yanker

            
	
               

            	
               

            
	
               

            	
              /s/
                Rodney Yanker

            

    

    

     

    
      
        
        

      

      
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          4 -

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

    

    
      	
              Purchaser

            	
              Number
                of Insider 

              Warrants
                to be Purchased

            
	
              Randall
                Yanker

            	
              1,583,333

            
	
              Elliot
                Stein Jr.

            	
              1,583,333

            
	
              Rodney
                Yanker

            	
              1,583,334

            
	
              Total

            	
              4,750,000

            

    

    
 

    
      
        
        

      

      -
        5 -EX 10.3

    PROMISSORY
      NOTE

     

    
      	
              $200,000

            	
              As
                of February 20, 2008

            
	
              New
                York, New York

            	
               

            
	
               

            	
               

            

    

    Transformation
      Capital Corporation (“Maker”) promises to pay to the order of Randall Yanker,
      Elliot Stein Jr. and Rodney Yanker (“Payees”) the principal sum of two hundred
      thousand dollars and 00/100 ($200,000) in lawful money of the United States
      of
      America, such sum to be paid to such Payees on a pro rata
      basis as
      between such Payees, on the terms and conditions described below.

     

    1.           Principal.  The
      principal balance of this Note shall be repayable upon the earlier of (i) 60
      days following the closing date of Maker’s initial public offering or (ii)
      February 28, 2009.

     

    2.           Interest.  This
      Note shall not bear interest.

     

    3.           Application
      of Payments.  All
      payments shall be applied first to payment in full of any costs incurred in
      the
      collection of any sum due under this Note, including (without limitation)
      reasonable attorneys’ fees, then to the payment in full of any late charges,
      then to accrued interest and finally to the reduction of the unpaid principal
      balance of this Note.

     

    4.           Events
      of Default.  The
      following shall constitute Events of Default:

     

    (a)           Failure
      to Make Required Payments.
      Failure
      by Maker to pay the principal of or accrued interest on this Note within five
      (5) business days following the date when due.

     

    (b)           Voluntary
      Bankruptcy, etc.
      The
      commencement by Maker of a voluntary case under the U.S. federal Bankruptcy
      Code, as now constituted or hereafter amended, or any other applicable federal
      or state bankruptcy, insolvency, reorganization, rehabilitation or other similar
      law, or the consent by it to the appointment of or taking possession by a
      receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
      similar official) of Maker or for any substantial part of its property, or
      the
      making by it of any assignment for the benefit of creditors, or the failure
      of
      Maker generally to pay its debts as such debts become due, or the taking of
      corporate action by Maker in furtherance of any of the foregoing.

     

    (c)           Involuntary
      Bankruptcy, etc.
      The
      entry of a decree or order for relief by a court having jurisdiction in the
      premises in respect of Maker in an involuntary case under the Federal Bankruptcy
      Code, as now or hereafter constituted, or any other applicable federal or state
      bankruptcy, insolvency or other similar law, or appointing a receiver,
      liquidator, assignee, custodian, trustee, sequestrator (or similar official)
      of
      Maker or for any substantial part of its property, or ordering the winding-up
      or
      liquidation of the affairs of Maker, and the continuance of any such decree
      or
      order unstayed and in effect for a period of 60 consecutive days.

     

    5.           Remedies.

     

    (a)           Upon
      the occurrence of an Event of Default specified in Section 4(a), any Payee
      may,
      by written notice to Maker, declare this Note to be due and payable, whereupon
      the principal amount of this Note, and all other amounts payable thereunder,
      shall become immediately due and payable without presentment, demand, protest
      or
      other notice of any kind, all of which are hereby expressly waived, anything
      contained herein or in the documents evidencing the same to the contrary
      notwithstanding.

     

    (b)           Upon
      the occurrence of an Event of Default specified in Sections 4(b) or 4(c), the
      unpaid principal balance of, and all other sums payable with regard to, this
      Note shall automatically and immediately become due and payable, in all cases
      without any action on the part of any Payee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.           Waivers.  Maker
      and all endorsers and guarantors of, and sureties for, this Note waive
      presentment for payment, demand, notice of dishonor, protest, and notice of
      protest with regard to the Note, all errors, defects and imperfections in any
      proceedings instituted by any Payee under the terms of this Note, and all
      benefits that might accrue to Maker by virtue of any present or future laws
      exempting any property, real or personal, or any part of the proceeds arising
      from any sale of any such property, from attachment, levy or sale under
      execution, or providing for any stay of execution, exemption from civil process,
      or extension of time for payment; and Maker agrees that any real estate that
      may
      be levied upon pursuant to a judgment obtained by virtue hereof, on any writ
      of
      execution issued hereon, may be sold upon any such writ in whole or in part
      in
      any order desired by any Payee.

     

    7.           Unconditional
      Liability.  Maker
      hereby waives all notices in connection with the delivery, acceptance,
      performance, default, or enforcement of the payment of this Note, and agrees
      that its liability shall be unconditional, without regard to the liability
      of
      any other party, and shall not be affected in any manner by any indulgence,
      extension of time, renewal, waiver or modification granted or consented to
      by
      Payee, and consents to any and all extensions of time, renewals, waivers, or
      modifications that may be granted by Payee with respect to the payment or other
      provisions of this Note, and agrees that additional makers, endorsers,
      guarantors, or sureties may become parties hereto without notice to them or
      affecting their liability hereunder.

     

    8.           Notices.  Any
      notice called for hereunder shall be deemed properly given if (i) sent by
      certified mail, return receipt requested, (ii) personally delivered, (iii)
      dispatched by any form of private or governmental express mail or delivery
      service providing receipted delivery, (iv) sent by facsimile or (v) sent by
      e-mail, to the following addresses or to such other address as either party
      may
      designate by notice in accordance with this Section:

     

    If
      to
      Maker:

     

    Transformation
      Capital Corporation

    c/o
      Cleary Gottlieb Steen & Hamilton LLP

    One
      Liberty Plaza

    New
      York,
      New York 10006

    Attention:
      Raymond B. Check, Esq.

     

    If
      to
      Payees:

     

    Randall
      Yanker, Elliot Stein Jr. and Rodney Yanker

    c/o
      Cleary Gottlieb Steen & Hamilton LLP

    One
      Liberty Plaza

    New
      York,
      New York 10006

    Attention:
      Raymond B. Check, Esq.

     

    Notice
      shall be deemed given on the earlier of (i) actual receipt by the receiving
      party, (ii) the date shown on a facsimile transmission confirmation, (iii)
      the
      date on which an e-mail transmission was received by the receiving party’s
      on-line access provider, (iv) the date reflected on a signed delivery receipt
      or
      (vi) two (2) business days following tender of delivery or dispatch by express
      mail or delivery service.

     

    9.           Construction.
      This
      Note shall be construed and enforced in accordance with the domestic, internal
      law, but not the law of conflict of laws, of the State of New York.

     

    10.           Severability.
      Any
      provision contained in this Note prohibited or unenforceable in any jurisdiction
      shall, as to such jurisdiction, be ineffective to the extent of such prohibition
      or unenforceability without invalidating the remaining provisions hereof, and
      any such prohibition or unenforceability in any jurisdiction shall not
      invalidate or render unenforceable such provision in any other
      jurisdiction.

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
           

        

        
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    IN
      WITNESS WHEREOF,
      Maker,
      intending to be legally bound hereby, has caused this Note to be duly executed
      the day and year first above written.

     

    
      	
               

            	
              TRANSFORMATION
                CAPITAL CORPORATION

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              By:

            	
              /s/
                Randall S. Yanker
                
                

              

            
	
               

            	
               

            	
              Name:

            	
              Randall
                S. Yanker

            
	
               

            	
               

            	
              Title:

            	
              President
                and Chief Executive Officer

            
	
               

            	
               

            

    

     

    
      
         

      

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          3 -

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