Document:

exv10w2

 

EXECUTION COPY

Exhibit 10.2

LEUCADIA NATIONAL CORPORATION

315 Park Avenue South

New York, New York 10010

April 20, 2008

Jefferies Group, Inc.

520 Madison Avenue, 12th Floor

New York, New York 10021

Ladies and Gentlemen:

We have discussed with you our intention to acquire shares of common stock, $0.0001 par value per
share (the “Common Stock”), of Jefferies Group, Inc., a Delaware corporation (the “Company”), and
the possibility that the Company may enact certain shareholder protection measures. In
consideration of your forbearing the enactment of such measures at the present time, and without
prejudice to the Company’s enactment of such measures in the future, intending to be legally bound,
we agree as follows:

1. We agree that, until April 21, 2010, without the prior approval of a majority of the members of
the Board of Directors of the Company (the “Board”) who are not Associates or Affiliates of ours
and who have not been nominated to serve on the Board by us or any of our Affiliates or Associates
(the “Disinterested Directors”), we and our subsidiaries, Associates, Affiliates and any persons
with whom we have formed a “group” (within the meaning of Section 13(d)(3) of the Exchange Act)
(together, the “Restricted Persons”) will not: (a) enter into or agree, offer, seek or propose to
enter into, directly or indirectly, any merger, acquisition transaction or other business
combination, or recapitalization, restructuring, liquidation or other extraordinary transaction
involving the Company or any of its subsidiaries or any of their respective assets or properties;
(b) make, or in any way participate in, directly or indirectly, any “solicitation” of “proxies” (as
such terms are used in the proxy rules of the Securities and Exchange Commission promulgated under
the Exchange Act) or consents to vote or refrain from voting, or seek to advise or influence any
person with respect to the voting of, any voting securities of the Company or any of its
subsidiaries in connection with seeking the removal of any directors on the Board or a change in
the size or composition of the Board, or call a special shareholder’s meeting for any such purpose
(provided, however, that such restriction shall not apply in the event that the
Company or the Board schedules the Company’s annual meeting of shareholders to be held in 2010 (the
“2010 Annual Meeting”) for a date prior to May 5, 2010); or (c) directly or indirectly enter into
any discussions, negotiations, arrangements or understandings with any other person (including any
individual, firm, corporation, partnership or other entity or any “person” as such term is used in
Section 13(d) or Section 14(d)(2) of the Exchange Act) (“person”) with respect to any of the
foregoing activities or propose any of such activities. The “Exchange Act” means the Securities
Exchange Act of 1934, as amended, or any successor statute. The terms “Affiliate” and “Associate”
shall have the meanings set forth in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act.

 

 

2. We acknowledge that the Restricted Persons have acquired approximately 3.2% of the outstanding
Common Stock and, until the second anniverary of the date hereof, without the prior approval of a
majority of the Disinterested Directors, we agree that the Restricted Persons will not acquire any
additional shares of Common Stock (or rights in respect thereof) or the right or rights to vote
additional voting securities of the Company, if as a result of thereof, the Restricted Persons
would have beneficial ownership (within the meaning of Section 13(d) of the Exchange Act) of in
excess of 30% of the voting power of the Common Stock; provided, however, the
Company agrees that if any other person, or group of which such other person is a part, that is
unaffiliated with the Restricted Persons shall acquire more than 30% of the voting power of the
Common Stock, then we shall be permitted to acquire such number of additional shares of Common
Stock that would permit the Restricted Persons to beneficially own an aggregate amount of the
Common Stock having voting power equal to the voting power of such other unaffiliated person,
entity or group plus one percent (1%), such that the Restricted Persons are able to remain the
largest holder of Common Stock by one percent (1%).

3. We agree that, until April 21, 2010, without the prior approval of a majority of the
Disinterested Directors, the Restricted Persons will not sell or dispose of, in a single
transaction or series of transactions, Common Stock (or rights in respect thereof) to any other
person or “group”, unless: (a) such sale is part of a tender offer or exchange offer made to all
stockholders of the Company by a person other than us or who is not a subsidiary or an Affiliate or
Associate of ours and is not a part of a “group” of which we are a part; or (b) such disposition is
pursuant to a dividend or distribution made by us on a pro rata basis to our shareholders.

4. The restrictions set forth in Paragraph 2 hereof are expressly agreed to preclude us from
engaging in any hedging or other transaction which is or would result in the acquisition of
“beneficial ownership” (as defined in Rule 13d-3 of the Exchange Act) of Common Stock in
contravention of the provisions of this letter agreement. Such prohibited hedging or other
transactions would include, without limitation, any purchase, sale or grant of any right
(including, without limitation, any put or call option) with respect to Common Stock or with
respect to any security that includes, relates to, or derives any significant part of its value
from such Common Stock, including, without limitation, any such purchase, sale or grant settled in
cash.

5. We agree that, until April 21, 2010, at any meeting of the shareholders of the Company, however
called, or in any other circumstance in which the vote, consent or approval of the shareholders of
the Company, in their capacity as shareholders, is sought, with respect to the election of
directors of the Company, that we shall vote or give our consent with respect thereto, or cause to
be voted or consent to be given with respect thereto, all shares of Common Stock held by the
Restricted Persons, or over which we exercise voting control, in favor of those nominees approved
by the Disinterested Directors; provided, if we have become and remain entitled to
designate individuals for election to the Board in accordance with Paragraph 6 hereof, that our
nominees shall have been nominated to serve on the Board upon the expiration of their terms of
office, if any such terms are expiring, to the extent required under Paragraph 6; and provided
further, that the obligations set forth in this paragraph shall not apply to the 2010 Annual
Meeting in the event that the Company or the Board schedules the 2010 Annual Meeting on a date
prior to May 5, 2010. We agree that we will not grant any proxy, power-of-attorney or

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other authorization in or with respect to any shares of Common Stock that are held by the Reporting
Persons, or over which we exercise voting control, or take any other action, in our capacity as a
shareholder of the Company, that would in any way restrict, limit or interfere with the performance
of our obligations hereunder.

6. Promptly following execution of this Agreement, the Company shall increase the size of the Board
by two (2) directorships, and the vacancies on the Board created thereby shall be filled by the
Disinterested Directors with two of our designees to be selected by us in our sole discretion, who
initially shall be Ian M. Cumming and Joseph S. Steinberg. In each subsequent election of
directors of the Company, the Company shall use its best efforts to nominate a slate such that the
Board will include two directors designated by us. If any of our director designees resigns or
becomes ineligible to serve on the Board, we shall have the right to designate a replacement for
such director designee, provided such replacement is eligible to serve on the Board and is
reasonably acceptable to the Company. Upon our request, at least one of our director designees
shall be appointed to serve on each committee of the Board, with the exception of the audit
committee, provided that such designee is qualified to serve on such committee under applicable
regulations and listing standards. The Company shall not increase the size of the Board beyond
nine (9) directorships without the approval of both a majority of the members of the Board and our
director designees. If, we (including our subsidiaries, Associates and Affiliates) subsequently
sell or otherwise dispose of shares of Common Stock and, as a result, we (including our
subsidiaries, Associates and Affiliates) shall beneficially own less than 15% of the Common Stock,
we shall cause the individuals designated by us then serving on the Board to resign from the Board
if requested by the Disinterested Directors and, subject to the proviso below, we shall no longer
be entitled to representation on the Board; provided, however, that if we purchase
additional shares of Common Stock such that we again own 15% or more of the Common Stock within
sixty (60) days of such request by the Disinterested Directors, the individuals designated by us
then serving on the Board shall not be required to resign and we shall continue to be entitled to
representation on the Board pursuant to this letter agreement.

7. The Company shall furnish us with such financial information concerning the Company that we
request to enable us to timely comply with our reporting obligations under applicable securities
laws.

8. As soon as reasonably practicable, the Company and we shall enter into a mutually acceptable
registration rights agreement having the principal terms set forth on Annex A hereto affording us
the right to require the Company, at the Company’s expense, to file with the Securities and
Exchange Commission, upon our demand, a registration statement on Form S-3 registering the resale
of the shares of Common Stock owned by us.

9. We agree that all shares of Common Stock that we beneficially own as of the date of this letter
agreement, and any shares of Common Stock that we purchase or with respect to which we otherwise
acquire beneficial ownership or voting rights, directly or indirectly, after the date of this
letter agreement, including, without limitation, shares issued upon the conversion, exercise or
exchange, as the case may be, of securities held by us that are convertible into, or exercisable or
exchangeable for, shares of Common Stock, shall be subject to the terms and conditions of this
letter agreement.

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10. Except as otherwise provided herein, the restrictions and agreements made by us contained in
Paragraphs 1, 2, 4, 5 and 6 shall terminate upon the earliest to occur of: (a) such time as the
Restricted Persons own less than 5% of the Common Stock; (b) the Company’s breach of any material
provision of this Agreement, which breach shall continue uncured for more than 30 days after
written notice of such breach shall have been delivered by us to the Disinterested Directors (but
any such breach hereof by the Company shall not relieve the Company of the restrictions and
agreements made by it herein); (c) the acquisition by any person or “group” that is not affiliated
or associated with us of a majority of the Common Stock; (d) the date on which the Company shall
have entered into any merger, acquisition transaction or other business combination involving the
merger or acquisition of the Company or all or substantially all of its assets or properties; or
(e) April 21, 2010. The restrictions and agreements made by us contained in Paragraph 3 shall
terminate upon the earliest to occur of: (a) the Company’s breach of any material provision of
this Agreement, which breach shall continue uncured for more than 30 days after written notice of
such breach shall have been delivered by us to the Disinterested Directors (but any such breach
hereof by the Company shall not relieve the Company of the restrictions and agreements made by it
herein); or (b) April 21, 2010. The restrictions and obligations of the Company contained in
Paragraphs 6 hereof shall terminate upon the earliest to occur (x) if we breach any material
provision of this letter agreement, which breach shall continue uncured for more than 30 days after
written notice of such breach shall have been delivered by the Company to us, but any such breach
hereof by us shall not relieve us of the restrictions and agreements made by us herein or (y) April
21, 2010. Notwithstanding the foregoing, the provisions of Paragraph 7 hereof shall continue for
so long as (but only to the extent that) we are required to include financial information
concerning the Company in our public reporting).

11. The parties hereto acknowledge and agree that money damages would not be a sufficient remedy
for any breach or threatened breach of any provision of this letter agreement, and that in addition
to all other remedies which we or the Company may have, each of the parties hereto will be entitled
to seek specific performance and injunctive or other equitable relief as a remedy for any such
breach, without the necessity of posting any bond.

12. It is understood and agreed that no failure or delay by a party hereto in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any right, power
or privilege hereunder.

13. The invalidity or unenforceability of any provision of this letter agreement shall not affect
the validity or enforceability of any other provisions of this letter agreement, which shall remain
in full force and effect.

14. This letter agreement may not be amended, modified or waived, in whole or in part, except by a
separate writing signed by the Company and us expressly so amending, modifying or waiving such
agreement or any part thereof.

15. This letter agreement may be executed in two or more counterparts (including by means of
facsimile), each of which shall be deemed to be an original but all of which together shall
constitute one and the same instrument. Receipt of an executed signature page to this letter

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agreement by facsimile or other electronic transmission shall constitute effective delivery
thereof. Electronic records of this executed letter agreement shall be deemed to be originals
thereof.

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16. This letter agreement shall not prohibit or limit, among other things, any action taken by any
of our designees in his or her capacity as, or in the performance of his or her duties as, a member
of the Board (including, without limitation, discussing any proposal concerning the Company with
other Board members and officers and other representatives of the Company and its and the Board’s
respective advisors).

17. Each party agrees and consents to personal jurisdiction and service of process and exclusive
venue in the federal or state courts in the County of New York in the State of New York for the
purposes of any action, suit or proceeding arising out of or relating to this letter agreement.
This letter agreement shall be governed by, and construed in accordance with, the laws of the State
of New York, without regards to its conflicts of law principles.

	 	 	 	 	 
	 	Very truly yours,

LEUCADIA NATIONAL CORPORATION

 	 
	 	By:  	/s/ Barbara L. Lowenthal
 	 
	 	 	Name:  	Barbara L. Lowenthal 	 
	 	 	Title:  	Vice President 	 
	 

Confirmed and agreed to as of the date first written above:

	 	 	 	 	 
	 	JEFFERIES GROUP, INC.

 	 
	 	By:  	/s/ Richard B. Handler
 	 
	 	 	Name:  	Richard B. Handler 	 
	 	 	Title:  	Chief Executive Officer 	 

SIGNATURE
PAGE TO STANDSTILL AGREEMENT

 

	 	 	 	 	 

 

Annex A

TERMS OF REGISTRATIONS RIGHTS AGREEMENTS

	•	 	Shelf registration statement of shares to be continuously in effect.
	 
	•	 	Three demand registrations, subject to a minimum threshold of (i) at least 20% of the
aggregate number of shares held by the party, or (ii) reasonably expected to generate
aggregate gross proceeds of at least $25 million, even if less than 20%).
	 
	•	 	No more than one demand registration in any six-month period.
	 
	•	 	We shall use our best efforts to cause a registration statement or a prospectus supplement
to an existing shelf registration statement to be filed as promptly as practicable after the
Closing. If available on Form S-3, we must file and maintain a shelf registration for the
registrable shares (which include all currently owned and after acquired shares); shelf to
remain effective so long as the Company owns any shares; shelf to permit underwritten
offerings and to the extent available will be filed as a so-called “WKSI” shelf; securities to
remain registrable unless they have been sold under a registration statement or Rule 144.
	 
	•	 	The Company shall use its best efforts to cause a registration statement or a prospectus
supplement to an existing shelf registration statement to be filed not later than April 21,
2010. If available on Form S-3, Company must file and maintain a shelf registration for the
registrable shares (which include all currently owned and after acquired shares); shelf to
remain effective so long as we own any shares; shelf to permit underwritten offerings and to
the extent available will be filed as a so-called “WKSI” shelf; securities to remain
registrable unless they have been sold under a registration statement or Rule 144.
	 
	•	 	Blackout period: not more than once in any six-month period for not more than 60 days and
not more than, in the aggregate, 90 days during any twelve-month period.
	 
	•	 	The Company will pay all expenses in connection with any request for registration pursuant
to the registration rights agreement, including road shows.
	 
	•	 	Piggyback rights.
	 
	•	 	Most Favored Nations provision.

SIGNATURE PAGE TO STANDSTILL AGREEMENTexv4w1

 

EXHIBIT 4.1

	 	 	 	 	 
	 

	 	 	 	UNITS
	 
	 	 	 	 
	NUMBER
	 	 	 	 
	U-                    
	 	 	 	 
	 
	 	 	 	 
	SEE REVERSE FOR 

CERTAIN DEFINITIONS

	 	GF ACQUISITION CORP.	 	 

CUSIP

UNITS CONSISTING OF ONE SHARE OF COMMON STOCK AND ONE WARRANT EACH TO PURCHASE ONE SHARE OF COMMON STOCK

	THIS CERTIFIES THAT  	 	 is the

	owner of 	 	 Units.

Each Unit (“Unit”) consists of one (1) share of common stock, par value $.0001 per share (“Common
Stock”), of GF Acquisition Corp., a Delaware corporation (the “Company”), and one warrant (the
“Warrant”). Each Warrant entitles the holder to purchase one (1) share of Common Stock for $7.50
per share (subject to adjustment). Each Warrant will become exercisable on the later of (i) the
Company’s completion of a merger, capital stock exchange, asset acquisition or other similar
business combination and (ii)                     , 2009, and will expire unless
exercised before 5:00 p.m., Los Angeles Time, on                     , 2012, or earlier
upon redemption (the “Expiration Date”). The Common Stock and Warrants comprising the Units
represented by this certificate are not transferable separately prior to                     ,
2008, subject to earlier separation in the discretion of                                         . The terms
of the Warrants are governed by a Warrant Agreement, dated as of                     ,
2008, between the Company and Continental Stock Transfer & Trust Company, as Warrant Agent, and are
subject to the terms and provisions contained therein, all of which terms and provisions the holder
of this certificate consents to by acceptance hereof. Copies of the Warrant Agreement are on file
at the office of the Warrant Agent at 17 Battery Place, New York, New York 10004, and are available
to any Warrant holder on written request and without cost.

This certificate is not valid unless countersigned by the Transfer Agent and Registrar of the
Company.

Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized
officers.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Chairman of the Board
	 	Corporate Seal
	 	 Secretary

 

 

GF ACQUISITION CORP.

     The Company will furnish without charge to each stockholder who so requests, a statement of
the powers, designations, preferences and relative, participating, optional or other special rights
of each class of stock or series thereof of the Company and the qualifications, limitations, or
restrictions of such preferences and/or rights.

     The following abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 	 	 	 	 
	TEN COM —

	 	as tenants in common
	 	UNIF GIFT MIN ACT —
	 	 	 Custodian 	 
	 
	 	 	 	 	 	 	 	 
	TEN ENT —

	 	as tenants by the entireties
	 	 	 	(Cust)
	 	(Minor)
	 
	 	 	 	 	 	 	 	 
	JT TEN —	 	as joint tenants with right of survivorship	 	under Uniform Gifts to Minors

	 
	 	 	 	 	 	 	 	 
	 	 	and not as tenants in common	 	Act
 

	 	 	 	 	 	 	(State)

Additional Abbreviations may also be used though not in the above list.

     For value received,                                          hereby sell, assign and transfer unto

	 	 	 
	 
	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER

	 	 
	IDENTIFYING NUMBER OF ASSIGNEE

	 	 
	 	 	 
	 
	 	 
	 	 	 

 
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

        
            
            
            
                 
                        Units
represented by the within Certificate, and do hereby irrevocably constitute and appoint

            
                            
                                                 Attorney
to transfer the said Units on the books of the within named Company
with full power of
substitution in the premises.

	 	 	 	 	 	 
	Dated: 
	 	 	 	 	 
	 

	 	 	Notice:   
	 	 The signature to this assignment must correspond with
the name as written upon the face of the certificate
in every particular, without alteration or enlargement
or any change whatever.

Signature(s) Guaranteed:

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO
S.E.C. RULE 17Ad-15).

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