Document:

exh10_34.htm

 

Exhibit 10.34

 

 

STOCK PURCHASE AGREEMENT

 

             THIS STOCK PURCHASE AGREEMENT (the “Purchase Agreement”) is made and entered into as of June 14, 2011, by and between ZBB Energy Corporation, a Wisconsin corporation (“ZBB”), and [________]  (“Purchaser”).

 

ARTICLE 1 - SALE OF STOCK

 

Section 1.1 Sale of Stock.  Subject to the terms and conditions of this Purchase Agreement, on the date hereof ZBB agrees to issue and sell to Purchaser, and Purchaser agrees to purchase from ZBB, [________] shares of ZBB’s Common Stock (the “Stock”) at a purchase price of $0.92 per share for an aggregate purchase price of $[________].

 

Section 1.2 Closing.  Purchaser shall purchase the Stock at a closing that shall occur at a mutually agreed upon date following receipt of clearance from NYSE Amex for issuance of the Stock.  At the closing, Purchaser will pay the purchase price for the Stock to ZBB and ZBB will deliver to Purchaser a certificate representing the Stock being purchased by Purchaser hereunder.

 

ARTICLE 2 - REPRESENTATIONS AND WARRANTIES OF ZBB

 

ZBB hereby represents and warrants to Purchaser as follows:

 

Section 2.1 Organization  ZBB is a corporation duly organized, validly existing and in good standing under the laws of the State of Wisconsin.

 

Section 2.2 Valid Issuance of Common Stock. The Stock is duly authorized, validly issued, fully paid and non-assessable and is free and clear of all liens and encumbrances other than restrictions on transfer imposed by applicable securities laws.

 

Section 2.3 Authority.  ZBB has all requisite corporate power and authority to enter into this Purchase Agreement and to consummate the transactions contemplated hereby.  This Purchase Agreement has been duly executed and delivered by ZBB, and constitutes the valid and binding obligation of ZBB, enforceable in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 

 

ARTICLE 3 - REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser hereby represents and warrants to ZBB as follows:

 

Section 3.1 Authority.  Purchaser has all requisite power and authority to enter into this Purchase Agreement and to consummate the transactions contemplated hereby.  This Purchase Agreement has been duly executed and delivered by Purchaser, and constitutes the valid and binding obligation of Purchaser, enforceable in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

 

  

1

  

 

Section 3.2 Purchase Entirely for Own Account.  The Stock is being acquired by Purchaser for investment for Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same.  Purchaser further represents that he does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant any participation with respect to any of the Stock.

 

Section 3.3 Investment Experience.  Purchaser is an “accredited investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended (the “Securities Act”).  Purchaser is aware of ZBB’s business affairs and financial condition and has had access to and has acquired sufficient information about ZBB to reach an informed and knowledgeable decision to acquire the Stock.  Purchaser has such business and financial experience as is required to give him the ability to protect his own interests in connection with the purchase of the Stock.

 

Section 3.4 Ability to Bear Risk.  Purchaser is able to bear the economic risk of his investment in the Stock for an indefinite period of time and Purchaser understands that the Stock has not been registered under the Securities Act and cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available.  Purchaser acknowledges that he could bear a complete or significant loss of his investment in the Stock.

 

Section 3.5 Access to Information.  Purchaser has had an opportunity to ask questions and receive answers concerning the terms and conditions of the offering of Stock and has had full access to such other information concerning ZBB as Purchaser has requested.

 

Section 3.6 Restricted Securities.  Purchaser understands that the Stock is “restricted” under applicable U.S. federal and state securities laws inasmuch as it is being acquired from ZBB in a transaction not involving a public offering and that, pursuant to these laws and applicable regulations, Purchaser must hold the Stock indefinitely unless it is registered with the Securities and Exchange Commission (the “SEC”), and qualified by state authorities, or an exemption from such registration and qualification requirements is available.  Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including the timing and manner of sale, the holding period for the Stock, and on requirements relating to ZBB which are outside of Purchaser’s control, and which ZBB is under no obligation and may not be able to satisfy.  In this connection, Purchaser represents that he is familiar with Rule 144 promulgated under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

 

  

2

  

 

Section 3.7 Legends.  Purchaser understands that the Stock, and any securities issued in respect thereof or exchange therefor, may bear the following legends:

 

(a)         “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.”

 

(b)        Any legend required by the Blue Sky laws of any state to the extent such laws are applicable to the shares represented by the certificate so legended.

 

ARTICLE 4 - MISCELLANEOUS

 

Section 4.1 Transfers in Violation of Purchase Agreement.  Any transfer or attempted transfer of any Stock in violation of any provision of this Purchase Agreement shall be null and void, and ZBB shall not record such transfer on its books or treat any purported transferee of such Stock as the owner of such securities for any purpose.

 

Section 4.2 Governing Law.  This Purchase Agreement shall be governed in all respects by the laws of the State of Wisconsin (without reference to its conflicts of laws principles).

 

Section 4.3 Successors and Assigns.  Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto; provided, that the rights of Purchaser under this Purchase Agreement shall not be assignable except in connection with a transfer of Stock expressly permitted by the terms of this Purchase Agreement.

 

Section 4.4 Entire Agreement.  This Purchase Agreement constitutes the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof.

 

Section 4.5 Remedies.  Each of the parties to this Purchase Agreement will be entitled to enforce its rights under this Purchase Agreement specifically, to recover damages and costs (including reasonable attorneys’ fees) caused by any breach of any provision of this Purchase Agreement and to exercise all other rights existing in its favor.

 

Section 4.6 Counterparts.  This Purchase Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

 

  

3

  

 

IN WITNESS WHEREOF, the parties have executed this Purchase Agreement as of the day and year set forth in the first paragraph hereof.

 

 

 

	  	
ZBB ENERGY CORPORATION

	  	  
	  	
By:  ­­­­­­­­­­­­­­­­­­    ____________________________

Name: Eric Apfelbach

	  	
Title:   President and CEO

 

	  	  	  
	  	
Address:

 

N93 W14475 Whittaker Way

Menomonee Falls, WI 53051

	  	
Attn: Will Hogoboom

	  	
 

                                                                                

Purchaser

 

                                                                                

Signature of Purchaser

 

                                                                               

Title, if Purchaser is an entity

 

	  	
Address:

 

                                                                                

 

                                                                                

 

                                                                                

 

 

 

4Exhibit 10.2

 

EXECUTION VERSION

 

February 15, 2012

 

J. PATRICK O’SHAUGHNESSY

135 NORTH CHURCH STREET

SPARTANBURG, SC 29306

 

Re: Modification to Change of Control Agreement

 

Dear Patrick:

 

As you know, Eagle U.S. Sub, Inc., a Delaware corporation (“Eagle U.S. Sub”), Eagle U.S. Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Eagle U.S. Sub (“Merger Sub”), and Advance America, Cash Advance Centers, Inc., a Delaware corporation (the “Company”), have entered into an Agreement and Plan of Merger, dated as of February 15, 2012 (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into the Company, and the Company will become a wholly owned subsidiary of Eagle U.S. Sub (the “Merger”).  Each of Eagle U.S. Sub, the Company and you are referred to herein collectively as the “Parties.”

 

This Modification to Change of Control Agreement (“Agreement”) amends your Change of Control Agreement with the Company, dated and effective as of March 7, 2011 (the “Change of Control Agreement”), pursuant to Section 15(a) of the Change of Control Agreement, to become effective upon the consummation of the Merger.  Capitalized terms used in this Agreement and not otherwise defined shall have the respective meanings assigned to them in the Change of Control Agreement.  Absent this Agreement, the consummation of the transactions contemplated by the Merger Agreement would provide you Good Reason to terminate employment.  In order to provide you with appropriate incentives to remain with the combined company following the Merger, to provide the Company with certain covenants regarding your conduct during and following your employment and to otherwise meet the Company’s needs, the Parties have determined to enter into this Agreement.

 

Accordingly, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree and confirm as follows, subject to and effective upon the consummation of the Merger:

 

1.  Eagle U.S. Sub and the Company acknowledge that, upon the consummation of the transactions contemplated by the Merger Agreement, a Change of Control will occur during the Effective Period, and the Severance Provisions will become effective on the Change of Control Date.

 

2.  Eagle U.S. Sub shall cause the Company to, and the Company shall, honor the provisions (including the Severance Provisions and related protections) of the Change of Control Agreement, as modified hereby.  The Change of Control Period shall be increased so that it shall expire on the expiration of the 30-month period immediately following  the Change of Control Date.

 

3.  Immediately following the consummation of the Merger, your target annual cash bonus shall remain equal to 100% of your annual base salary.  Following consummation of the Merger, Eagle U.S. Sub intends to cause the Company to maintain the same general format of your annual cash bonus for

 

 

2012 (and subsequent years), but will substitute budgeted EBITDA (as adjusted for one-time effects associated with the Merger in 2012) for EPS; and in evaluating the discretionary component for 2012, to place the greatest consideration on your individual contribution to the Company’s performance, your results in maintaining continuity of the business, and your results in integrating the Company with Grupo Elektra S.A. de C.V.

 

4.             (a)  In lieu of severance payments or benefits under Sections 4(a)(ii) and (iii), 4(b) and 4(c) of the Change of Control Agreement and as part of the consideration for the Protective Covenant Agreement described in paragraph 7 below, the Company shall establish as of the Effective Time (as defined in the Merger Agreement) an account (the “Retention Account”) in an amount equal to the sum of (A) the product of (1) 2.5 multiplied by (2) the total of your base salary and Target Bonus immediately prior to the Effective Time plus (B) the Pro Rata Bonus that would have been payable under Section 4(a)(ii) of the Change of Control Agreement if you had experienced an Involuntary Termination immediately after the Effective Time.  The Retention Account shall be adjusted for interest from and after the Effective Time through the applicable payment date at the rate publicly announced by Citibank, N.A. as its prime rate, on the first Business Day (as defined in the Merger Agreement) following the date on which the Effective Time occurs (the “Prime Rate”).  The Retention Account, as adjusted for interest, shall be payable to you (subject to the provisions of Section 8 and Section 9 of the Change of Control Agreement) after the earlier of (i) the first anniversary of the Effective Time or (ii) your termination of employment with the Company for any reason, including due to your death or Disability; provided, however, that if (x) you voluntarily terminate your employment without Good Reason (as modified by paragraph 5 below) or (y) your employment is terminated by the Company for Cause, in either case prior to the first anniversary of the Effective Time, the Retention Account shall be forfeited.  Payment shall be made in a single cash payment within fifteen days after the first anniversary of the Effective Time or, if payable due to a termination of your employment before the first anniversary of the Effective Time as contemplated above, on the 60th day after such termination of employment, provided that, in all cases payment is expressly conditioned on you (or in the case of your death, the executor of your estate) providing the Company with a Waiver and Release that has become irrevocable in accordance with its terms prior to the designated payment date.  The form of such Waiver and Release shall be adjusted as set forth on Annex A attached hereto in the event it is being delivered at a time while you are still employed or in connection with your death, and shall in no event be effective to waive any claims that arise after the date the Waiver and Release is signed.  In case of death, payment of the Retention Account will be made to your surviving spouse, or if you do not have a surviving spouse, to your estate.

 

(b)  The provisions of Sections 4(a)(i), (iv) and (v) of the Change of Control Agreement, as modified by this Agreement, shall remain in effect and shall be payable upon an Involuntary Termination during the Change of Control Period.

 

5.             You acknowledge and agree that you shall not have Good Reason to terminate your employment as a result of (i) the consummation of the transactions contemplated by the Merger Agreement, (ii) the Company ceasing to be an independent publicly traded corporation and becoming a private company and subsidiary of Eagle U.S. Sub, (iii) the change in your duties and responsibilities arising solely from the foregoing and (iv) the treatment of your outstanding Company Options and Restricted Stock (each as defined in the Merger Agreement) as contemplated by the Merger Agreement and this Agreement.  For the sake of clarity, nothing in this Agreement shall affect your ability to claim Good Reason as a result of affirmative actions to modify your duties and responsibilities or reduce your compensation or benefits taken by Eagle U.S. Sub or the Company following the Merger.

 

6.             (a)  Notwithstanding Section 2.4 of the Merger Agreement, and notwithstanding the provisions of the Change of Control Agreement, you agree that (i) the vesting of 50% of any Company Options and 50% of any Restricted Stock in each case granted to you during 2012 shall accelerate as a

 

2

 

result of the consummation of the Merger, and the amounts otherwise payable to you in respect of such Company Options and Restricted Stock shall be payable at the same times and in the same manner as are payments in respect of Single Trigger Company Options and Single Trigger Restricted Stock (each as defined in the Merger Agreement) pursuant to Section 2.4 of the Merger Agreement, (ii) the vesting of the remaining 50% of such Company Options and 50% of such Restricted Stock shall not accelerate as a result of the consummation of the Merger, and (iii) the amounts otherwise payable to you in respect of such non-accelerated Company Options and Restricted Stock pursuant to Section 2.4 of the Merger Agreement (the “Non-Accelerated Equity Amount”) shall be paid (subject to the provisions of Section 8 and Section 9 of the Change of Control Agreement) on the first anniversary of the date on which the Effective Time occurs, adjusted for interest from the date on which the Effective Time occurs through such payment date at the Prime Rate; provided, however, that if (x) you voluntarily terminate your employment without Good Reason (as modified by paragraph 5) or (y) your employment is terminated by the Company for Cause, in either case prior to the first anniversary of the Effective Time, the Non-Accelerated Equity Amount under this clause (iii) shall be forfeited.  Payment of the Non-Accelerated Equity Amount shall be made in a single cash payment within fifteen days after the first anniversary of the Effective Time or such earlier termination of employment, as applicable.  In case of your death, payment of the Non-Accelerated Equity Amount will be made to your surviving spouse, or if you do not have a surviving spouse, to your estate.

 

(b)  You agree and confirm that effective upon the consummation of the Merger, all of your outstanding Company equity awards (both vested and un-vested) under the Advance America, Cash Advance Centers, Inc. 2004 Omnibus Stock Plan shall be cancelled in exchange for the right to receive the consideration described in Section 2.4 of the Merger Agreement as modified by this Agreement.

 

7.  Contemporaneous with this Agreement, the Company and you have also executed and delivered the Protective Covenant Agreement, dated as of the date hereof, attached hereto as Exhibit A.

 

8.  The Company currently intends to develop during 2012 and implement during 2013 (with the timing of initial awards consistent with the Company’s past practice for timing of equity-based award grants) a long term cash incentive plan in which you and other senior level executives of the Company shall be eligible to participate.

 

9.  In light of the importance to Eagle U.S. Sub of (a) obtaining clarity with respect to the application of the Change of Control Agreement and the treatment of outstanding Restricted Stock in connection with the consummation of the Merger, and (b) securing your entry into the Protective Covenant Agreement, you specifically acknowledge for such purposes that your agreement to enter into this Agreement and the Protective Covenant Agreement is a material inducement to the willingness of Eagle U.S. Sub to enter into the Merger Agreement, and that Eagle U.S. Sub would not otherwise enter into the Merger Agreement in the absence of your execution of this Agreement and the Protective Covenant Agreement.

 

Except as expressly amended or modified in this Agreement, the provisions of the Change of Control Agreement are and shall remain in full force and effect and are hereby ratified and confirmed.  To the extent that a provision of this Agreement conflicts with or differs from a provision of the Change of Control Agreement, such provision of this Agreement shall govern.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of Delaware.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

3

 

This Agreement will automatically terminate without any action on the part of any person or entity and be void ab initio if the Merger Agreement is terminated in accordance with its terms, and neither the Company, Eagle U.S. Sub nor any other person or entity shall have any liability to you under this Agreement if the Merger is not consummated.

 

[Remainder of Page Intentionally Left Blank]

 

4

 

IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the date first written above.

 

 

	
 
    	
EAGLE   U.S. SUB, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Rodrigo Pliego
    
	
 
    	
Name:   Rodrigo Pliego
    
	
 
    	
Title:   President
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gabriel Roqueñí
    
	
 
    	
Name:   Gabriel Roqueñí
    
	
 
    	
Title:  Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADVANCE   AMERICA, CASH ADVANCE CENTERS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William T. Newell
    
	
 
    	
Name:   William T. Newell
    
	
 
    	
Title:   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   J. Patrick O’Shaughnessy
    
	
 
    	
J.   PATRICK O’SHAUGHNESSY
    

 

Signature Page to Modification to Change of Control Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]