Document:

Exhibit 10.8

   

  March [●], 2021

   

  Ross Acquisition Corp II

      1 Pelican Lane

      Palm Beach, Florida 33480

   

  Re:     Initial Public Offering

   

  Ladies and Gentlemen:

   

  This letter (this “Letter Agreement”) is being delivered to you in accordance
      with the Underwriting Agreement (the “Underwriting Agreement”) entered into by and among Ross Acquisition Corp II, a Cayman Islands exempted company (the “Company”), BofA Securities Inc. and Credit Suisse Securities (USA)
      LLC, as representatives (the “Representatives”) of the several underwriters (the “Underwriters”), relating to an underwritten initial public offering (the “Public Offering”) of 30,000,000 of the Company’s
      units (including 4,500,000 units that may be purchased pursuant to the Underwriters’ option to purchase additional units, the “Units”), each comprising of one of the Company’s Class A ordinary shares, par value $0.0001 per share (the “Ordinary

          Shares”), and one-third of one redeemable warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Ordinary Share at a price of $11.50 per share, subject to adjustment. The Units
      will be sold in the Public Offering pursuant to a registration statement on Form S-1 and a prospectus (the “Prospectus”) filed by the Company with the U.S. Securities and Exchange Commission (the “Commission”). Certain
      capitalized terms used herein are defined in paragraph 1 hereof.

   

  In order to induce the Company and the Underwriters to enter into the Underwriting Agreement
      and to proceed with the Public Offering and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [Ross Holding Company, LLC (the “Insider” or “Sponsor”)] [the
      undersigned, who is a member of the Company’s Board of directors and/or management team (the “Insider”), hereby agrees with the Company as follows:

   

  1.             Definitions. As used herein, (i) “Business Combination”
      shall mean a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities; (ii) “Founder Shares” shall mean the 8,625,000 Class B ordinary shares of
      the Company, par value $0.0001 per share, outstanding prior to the consummation of the Public Offering; (iii) “Private Placement Warrants” shall mean the warrants to purchase Ordinary Shares of the Company that will be acquired by the
      Sponsor for an aggregate purchase price of $8,000,000 (or up to $8,900,000 if the Underwriters’ exercise their option to purchase additional units), or $1.50 per Warrant, in a private placement that shall close simultaneously with the consummation of
      the Public Offering (including Ordinary Shares issuable upon conversion thereof); (iv) “Public Shareholders” shall mean the holders of Ordinary Shares included in the Units issued in the Public Offering; (v) “Public Shares”
      shall mean the Ordinary Shares included in the Units issued in the Public Offering; (vi) “Trust Account” shall mean the trust account into which a portion of the net proceeds of the Public Offering and the sale of the Private Placement
      Warrants shall be deposited; (vii) “Transfer” shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly or
      indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and
      regulations of the Commission promulgated thereunder with respect to, any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any security, whether
      any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public announcement of any intention to effect any transaction specified in clause (a) or (b); and (ix) “Charter” shall mean the
      Company’s Amended and Restated Memorandum and Articles of Association, as the same may be amended from time to time. 

  
     

    
      
 

  

  
  

  

  2.             Representations and Warranties.

   

  (a)       The Insider represents and warrants to the Company that it, she or he has the full
      right and power, without violating any agreement to which it, she or he is bound (including, without limitation, any non-competition or non-solicitation agreement with any employer or former employer), to enter into this Letter Agreement, as
      applicable, and to serve as an officer of the Company and/or a director on the Company’s Board of Director (the “Board”), as applicable, and each Insider hereby consents to being named in the Prospectus, road show and any other
      materials as an officer and/or director of the Company, as applicable.

   

  (b)       The Insider represents and warrants that the Insider’s biographical information
      furnished to the Company (including any such information included in the Prospectus) is true and accurate in all material respects and does not omit any material information with respect to the Insider’s background. The Insider’s questionnaire
      furnished to the Company is true and accurate in all material respects. Each Insider represents and warrants that such Insider is not subject to or a respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation
      to desist or refrain from any act or practice relating to the offering of securities in any jurisdiction; the Insider has never been convicted of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any financial transaction or
      handling of funds of another person, or (iii) pertaining to any dealings in any securities and such Insider is not currently a defendant in any such criminal proceeding; and such Insider has never been suspended or expelled from membership in any
      securities or commodities exchange or association or had a securities or commodities license or registration denied, suspended or revoked.

   

  3.             Business Combination Vote. It is acknowledged and agreed that the
      Company shall not enter into a definitive agreement regarding a proposed Business Combination without the prior consent of the Sponsor. The Insider agrees that if the Company seeks shareholder approval of a proposed initial Business Combination, then
      in connection with such proposed initial Business Combination, it, she or he, as applicable, shall vote all Founder Shares and any Public Shares held by it, her or him, as applicable, in favor of such proposed initial Business Combination (including
      any proposals recommended by the Board in connection with such Business Combination) and not redeem any Public Shares held by it, her or him, as applicable, in connection with such shareholder approval.

  

  
     

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  4.             Failure to Consummate a Business Combination; Trust Account Waiver.

   

  (a)       The Insider hereby agrees that in the event that the Company fails to consummate its
      initial Business Combination within the time period set forth in the Charter, the Sponsor and each Insider shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose of winding up; (ii) as promptly as
      reasonably possible but not more than 10 business days thereafter, redeem 100% of the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds
      held in the Trust Account and not previously release to the Company to pay income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely
      extinguish Public Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s
      remaining shareholders and the Board, liquidate and dissolve, subject in the case of clauses (ii) and (iii) to the Company’s obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of
      applicable law. The Insider agrees not to propose any amendment to the Charter (i) that would modify the substance or timing of the Company’s obligation to provide holders of the Public Shares the right to have their shares redeemed in connection
      with an initial Business Combination or to redeem 100% of the Public Shares if the Company does not complete an initial Business Combination within the required time period set forth in the Charter or (ii) with respect to any provision relating to
      the rights of holders of Public Shares unless the Company provides its Public Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount
      then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay taxes, if any, divided by the number of then-outstanding Public Shares.

   

  (b)       The Insider acknowledges that it, she or he has no right, title, interest or claim of
      any kind in or to any monies held in the Trust Account or any other asset of the Company as a result of any liquidation of the Company with respect to the Founder Shares held by it, her or him, if any. The Insider hereby further waives, with respect
      to any Founder Shares and Public Shares held by it, her or him, as applicable, any redemption rights it, she or he may have in connection with the consummation of a Business Combination, including, without limitation, any such rights available in the
      context of a shareholder vote to approve such Business Combination or a shareholder vote to approve an amendment to the Charter (i) that would modify the substance or timing of the Company’s obligation to provide holders of the Public Shares the
      right to have their shares redeemed in connection with an initial Business Combination or to redeem 100% of the Public Shares if the Company has not consummated an initial Business Combination within the time period set forth in the Charter or (ii)
      with respect to any provision relating to the rights of holders of Public Shares (although the Insider shall be entitled to liquidation rights with respect to any Public Shares they hold if the Company fails to consummate a Business Combination
      within the required time period set forth in the Charter). 

  
     

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  5.             Lock-up; Transfer Restrictions.

   

  (a)       The Insider agrees that they shall not Transfer any Founder Shares (the “Founder

          Shares Lock-up”) until the earliest of (A) one year after the completion of an initial Business Combination and (B) the date following the completion of an initial Business Combination on which the Company completes a liquidation, merger,
      share exchange or other similar transaction that results in all of the Company’s shareholders having the right to exchange their Ordinary Shares for cash, securities or other property (the “Founder Shares Lock-up Period”).
      Notwithstanding the foregoing, if, subsequent to a Business Combination, the closing price of the Ordinary Shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, share consolidations, reorganizations,
      recapitalizations and the like) for any 20 trading days within a 30-trading day period commencing at least 150 days after the Company’s initial Business Combination, the Founder Shares shall be released from the Founder Shares Lock-up.

   

  (b)       The Insider agrees that the Insider shall not effectuate any Transfer of Private
      Placement Warrants or Ordinary Shares underlying such warrants until 30 days after the completion of an initial Business Combination.

   

  (c)       Notwithstanding the provisions set forth in paragraphs 5(a) and (b),
      Transfers of the Founder Shares, Private Placement Warrants and Ordinary Shares underlying the Private Placement Warrants are permitted (a) to the Company’s officers or directors, any affiliate or family member of any of the Company’s officers or
      directors, any members or partners of the Sponsor or their affiliates, any affiliates of the Sponsor, or any employees of such affiliates; (b) in the case of an individual, by gift to a member of one of the individual’s immediate family or to a
      trust, the beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or to a charitable organization; (c) in the case of an individual, by virtue of laws of descent and distribution upon death of the
      individual; (d) in the case of an individual, pursuant to a qualified domestic relations order; (e) by private sales or transfers made in connection with the consummation of a Business Combination at prices no greater than the price at which the
      Founder Shares, Private Placement Warrants or Ordinary Shares, as applicable, were originally purchased; (f) by virtue of the Sponsor’s organizational documents upon liquidation or dissolution of the Sponsor; (g) to the Company for no value for
      cancellation in connection with the consummation of an initial Business Combination, (h) in the event of the Company’s liquidation prior to the completion of a Business Combination; or (i) in the event of completion of a liquidation, merger, share
      exchange or other similar transaction which results in all of the Company’s Public Shareholders having the right to exchange their Ordinary Shares for cash, securities or other property subsequent to the completion of an initial Business Combination;
      provided, however, that in the case of clauses (a) through (i) these permitted transferees must enter into a written agreement agreeing to be bound by these transfer restrictions.

   

  (d)       During the period commencing on the effective date of the Underwriting Agreement and
      ending 180 days after such date, the Insider shall not, without the prior written consent of the Representative, Transfer any Units, Ordinary Shares, Warrants or any other securities convertible into, or exercisable or exchangeable for, Ordinary
      Shares held by it, her or him, as applicable, subject to certain exceptions enumerated in Section 6(h) of the Underwriting Agreement. 

  
     

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  6.             Remedies. The Insider hereby agrees and acknowledges that (i) each of
      the Underwriters and the Company would be irreparably injured in the event of a breach by the Sponsor or the Insider of its, her or his obligations, as applicable under paragraphs 3, 4, 5, 7, 10 and 11, (ii)
      monetary damages may not be an adequate remedy for such breach and (iii) the non-breaching party shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in the event of such breach.

   

  7.             Payments by the Company. Except as disclosed in the Prospectus, neither the
      Sponsor nor any affiliate of the Sponsor nor any director or officer of the Company nor any affiliate of the officers shall receive from the Company any finder’s fee, reimbursement, consulting fee, monies in respect of any payment of a loan or other
      compensation prior to, or in connection with any services rendered in order to effectuate the consummation of the Company’s initial Business Combination (regardless of the type of transaction that it is).

   

  8.             Director and Officer Liability Insurance. The Company will maintain an
      insurance policy or policies providing directors’ and officers’ liability insurance, and the Insiders shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any of the
      Company’s directors or officers.

   

  9.             Termination. This Letter Agreement shall terminate on the earlier of (i) the
      expiration of the Founder Shares Lock-up Period and (ii) the liquidation of the Company.

   

  10.           Indemnification. In the event of the liquidation of the Trust Account, upon the
      failure of the Company to consummate its initial Business Combination within the time period set forth in the Charter, the Sponsor (the “Indemnitor”) agrees to indemnify and hold harmless the Company against any and all loss, liability,
      claim, damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, whether pending or threatened) to which the Company may
      become subject as a result of any claim by (i) any third party for services rendered or products sold to the Company (except for the Company’s independent auditors) or (ii) any prospective target business with which the Company has discussed entering
      into a transaction agreement (a “Target”); provided, however, that such indemnification of the Company by the Indemnitor (x) shall apply only to the extent necessary to ensure that such claims by a third party for
      services rendered or products sold to the Company or a Target do not reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the
      date of the liquidation of the Trust Account if less than $10.00 per Public Share due to reductions in the value of the trust assets, in each case net of interest that may be withdrawn to pay the Company’s tax obligations, (y) shall not apply to any
      claims by a third party or Target who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) and (z) shall not apply to any claims under the Company’s indemnity of the Underwriters
      against certain liabilities, including liabilities under the Securities Act of 1933, as amended. The Indemnitor shall have the right to defend against any such claim with counsel of its choice reasonably satisfactory to the Company if, within 15 days
      following written receipt of notice of the claim to the Indemnitor, the Indemnitor notifies the Company in writing that it shall undertake such defense. 

  
     

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  11.             Forfeiture of Founder Shares . To the extent that the Underwriters do
      not exercise their option to purchase additional Units within 45 days from, the date of the Prospectus in full (as further described in the Prospectus), the Sponsor agrees to automatically surrender to the Company for no consideration, for
      cancellation at no cost, an aggregate number of Founder Shares so that the number of Founder Shares will equal 20% of the sum of the total number of Ordinary Shares and Founder Shares outstanding at such time. The Sponsor and Insider further agree
      that to the extent that the size of the Public Offering is increased or decreased, the Company will effect a share capitalization or a share repurchase, as applicable, with respect to the Founder Shares immediately prior to the consummation of the
      Public Offering in such amount as to maintain the number of Founder Shares at 20% of the sum of the total number of Ordinary Shares and Founder Shares outstanding at such time.

   

  12.             Entire Agreement. This Letter Agreement constitutes the entire agreement and
      understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject
      matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except by a written instrument executed by all
      parties hereto.

   

  13.             Assignment. No party hereto may assign either this Letter Agreement or any of
      its rights, interests, or obligations hereunder without the prior written consent of the other parties. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer or assign any interest or
      title to the purported assignee. This Letter Agreement shall be binding on the Insider and each of the Insider’s respective successors, heirs, personal representatives and assigns and permitted transferees. Nothing in this Letter Agreement shall be
      construed to confer upon, or give to, any person or entity other than the parties hereto and the Underwriters any right, remedy or claim under or by reason of this Letter Agreement or of any covenant, condition, stipulation, promise or agreement
      hereof. All covenants, conditions, stipulations, promises and agreements contained in the Letter Agreement shall be for the sole and exclusive benefit of the Underwriters, the parties hereto and their successors, heirs, personal representatives and
      assigns and permitted transferrees.

   

  14.             Counterparts. This Letter Agreement may be executed in any number of original
      or facsimile counterparts, and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

   

  15.             Effect of Headings. The paragraph headings herein are for convenience only
      and are not part of this Letter Agreement and shall not affect the interpretation thereof.

   

  16.             Severability. This Letter Agreement shall be deemed severable, and the
      invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Letter Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or
      provision, the parties hereto intend that there shall be added as a part of this Letter Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable. 

  
     

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  17.             Governing Law. This Letter Agreement shall be governed by and construed and
      enforced in accordance with the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereto (i) all agree that any
      action, proceeding, claim or dispute arising out of, or relating in any way to, this Letter Agreement shall be brought and enforced in the courts of New York City, in the State of New York, and irrevocably submit to such jurisdiction and venue, which
      jurisdiction and venue shall be exclusive, and (ii) waive any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient forum.

   

  18.             Notices. Any notice, consent or request to be given in connection with any of
      the terms or provisions of this Letter Agreement shall be in writing and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery or facsimile transmission.

   

  [Signature Page Follows] 

  
     

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  	 	Sincerely,	 
	 	 	 	 	 
	 	ROSS HOLDING COMPANY, LLC	 
	 	 	 	 	 
	 	By:	 	 	 
	 	 	Name:	

        	 
	 	 	Title:	

        	 

  

   

  
     

    
      
 

  

  
  

       

  

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  	 	[●]	 

  

  

   

  
     

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  	Acknowledged and Agreed:
	 	 	 
	ROSS ACQUISITION CORP II
	 	 	 
	By:	 	 
	 	Name: 

          	 
	 	Title: 

          	 

  

  

  

  

  

  11hbp-ex43_10.htm

EXHIBIT 4.3

 

HUTTIG BUILDING PRODUCTS, INC.

DESCRIPTION OF SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

As of December 31, 2020, Huttig Building Products, Inc. (“Huttig” “we” or “our”) has two classes of securities, our common stock, par value $0.01 per share (“Common Stock”), of which 80,000,000 are authorized, and our preferred stock, par value $0.01 per share (“Preferred Stock”), of which 5,000,000 shares are authorized. In respect of our Preferred Stock, 400,000 shares have been designated as Series A Junior Participating Preferred Stock, although no such shares are outstanding.

 

The following description of our capital stock is a summary and is subject to, and is qualified in its entirety by reference to the provisions of our Second Amended and Restated Certificate of Incorporation (the “Charter”) and our by-laws, as amended and restated (the “Bylaws”), copies of which are incorporated by reference as Exhibits 3.1 and 3.2 to our Annual Report on Form 10-K for the year ended December 31, 2020 of which Exhibit 4.3 is a part.

 

COMMON STOCK

 

Listing

Our Common Stock is listed and principally traded on The NASDAQ Stock Market LLC under the symbol “HBP.”

 

Dividend Rights

Subject to any preferential dividend rights granted to the holders of any shares of our Preferred Stock that may at the time be outstanding and any restrictions contained in agreements to which we are a party, holders of our Common Stock are entitled to receive ratably any dividends as may be declared from time to time by our Board out of funds legally available therefor.

 

Rights Upon Liquidation

Subject to any preferential rights of outstanding shares of Preferred Stock that may at the time be outstanding, holders of our Common Stock are entitled to share ratably, upon any liquidation, dissolution, or winding up of Huttig, in all remaining assets legally available for distribution to stockholders.

 

Other Rights and Preferences

Our Common Stock has no sinking fund, redemption provisions, or preemptive, conversion, or exchange rights.

 

Voting

All holders of Common Stock are entitled to one vote per share on all matters to be voted on by our stockholders. Directors shall be elected by a plurality of the votes cast at an election. Stockholders do not have cumulative voting rights in election of directors.  All other actions (unless required by law) shall be authorized by a majority of the votes cast by the holders of shares entitled to vote thereon, present in person or represented by proxy, and where a separate vote by class is required, by a majority of the votes cast by stockholders of such class, present in person or represented by proxy, except that (i) amendments to the Bylaws by the stockholders require a vote of two-thirds of the shares entitled to vote thereon, and (ii) removal of a director by the stockholders may only be for cause and requires a vote of two-thirds of the voting power of the shares entitled to vote at an election of directors.

 

Certain Anti-Takeover Effects

Certain provisions of Delaware law, our Charter and our Bylaws provide for the following, which may have the effect of deterring hostile takeovers or delaying changes in control or management:

	
 
	
▪
	
Section 203. We are generally subject to Section 203 of the Delaware General Corporation Law, which, subject to certain exceptions, prohibits a Delaware corporation from engaging in any business combination with any “interested stockholder” for a period of three years following the date that such stockholder became an interested stockholder. An interested stockholder is generally defined to mean any entity or person 

 

 

	
 
		
beneficially owning 15% or more of the outstanding voting stock of the corporation, together with its affiliates.

	
 
	
▪
	
Undesignated Preferred Stock. Our Board has the ability to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of us. 

	
 
	
▪
	
Stockholder Meetings. Our Charter provides that our stockholders may not act by written consent, which may lengthen the amount of time required to take stockholder actions.  As a result, a holder controlling a majority of our capital stock would not be able to amend our Bylaws or remove directors without holding a meeting of our stockholders called in accordance with our Bylaws.  In addition, our Bylaws provide that special meetings of the stockholders may be called only by the Chairperson of the Board or our Board.  Stockholders may not call a special meeting.

	
 
	
▪
	
Board Classification. Our Board is divided into three classes, one class of which is elected each year by our stockholders. The directors in each class will serve for a three-year term. 

	
 
	
▪
	
No Cumulative Voting. Our Charter and Bylaws do not permit cumulative voting in the election of directors. 

	
 
	
▪
	
Blank check preferred stock. As noted above, our Charter allows the Board to issue shares of Preferred Stock without the further approval of our stockholders. This is sometimes referred to as “blank check” preferred stock. 

	
 
	
▪
	
Amendment of Charter and Bylaws.  Certain provisions of our Charter may only be amended  by holders of at least two-thirds of the voting power of our then outstanding voting stock.  Our Bylaws may only be amended by holders of at least two-thirds of the voting power of our then outstanding voting stock or by our Board.

RIGHTS TO ACQUIRE SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

 

Huttig has entered into a Rights Agreement with Computershare Trust Company, N.A. (as amended from time to time, the “Rights Agreement”), and we declared a dividend distribution of one preferred share purchase right for each outstanding share of Common Stock that was payable to stockholders of record as of the close of business on May 31, 2016.  

Subject to the terms, provisions and conditions of the Rights Agreement, if these rights become exercisable, each right would initially represent the right to purchase from us 1/100th of a share of our Series A Junior Participating Preferred Stock for a purchase price of $13.39 (“Purchase Price”). If issued, each fractional share of preferred stock would generally give a stockholder approximately the same dividend, voting and liquidation rights as does one share of our Common Stock. However, prior to exercise, a right does not give its holder any rights as a stockholder, including without limitation any dividend, voting or liquidation rights. The rights will not be exercisable until the earlier of: (i) 10 calendar days after a public announcement, or the Board concluding, that a person or group has become an Acquiring Person (as defined under the Rights Agreement); and (ii) 10 business days after the commencement of a tender or exchange offer by a person or group if upon consummation of the offer the person or group would beneficially own 4.99% or more of our outstanding Common Stock. An “Acquiring Person” generally means a person that becomes a beneficial owner of 4.99% or more of our Common Stock, with certain limited exceptions.

 

The Board may, in its sole discretion, exempt any person or group who would otherwise be an Acquiring Person from being deemed as such for purposes of the Rights Agreement, if it determines at any time prior to the time at which the rights are no longer redeemable that the beneficial ownership of such person would not jeopardize, endanger or limit (in timing or amount) the availability of Huttig’s net operating losses and other tax benefits. Any such person or group is an “exempted person” under the rights plan. The Board, in its sole discretion, may subsequently make a contrary determination and such person would then become an acquiring person. The Rights Agreement will terminate at the close of business on May 18, 2022, if not earlier terminated in accordance with its terms

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