Document:

exv10w8

 

Exhibit 10.8

Form of

Rule 10b5-1 Stock Purchase Plan

     This Rule 10b5-1 Stock Purchase Plan (this “Purchase Plan”), is entered into on ___, 2007
by and between [· ] ( “Broker”), HCM Acquisition Company, a Delaware corporation (the
“Company”), HCM Acquisition Holdings, LLC, a Delaware limited liability company (“Founding
Stockholder”) and Highland Capital Management, L.P., a Delaware limited partnership and the sole
member of the Founding Stockholder (“HCMLP”).

     WHEREAS, Founding Stockholder desires to establish a plan that qualifies for the affirmative
defense and safe harbor provided by Rule 10b5-1 (“Rule 10b5-1”) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) to purchase shares of common stock, par value $0.001 per
share (the “Shares”), of the Company, as described in the Company’s Registration Statement on Form
S-1 relating to the initial public offering of the Company.

     WHEREAS, Founding Stockholder desires to engage Broker as its exclusive agent to purchase
Shares on its behalf in accordance with this Purchase Plan;

     WHEREAS, Founding Stockholder has established or, prior to effecting transactions under this
Purchase Plan will establish, an account (the “Account”) with Broker by executing an account
agreement and all other necessary ancillary documents with Broker; and

     WHEREAS, HCMLP will agree to pay for any Shares purchased hereunder to the extent the Founding
Stockholder fails to do so;

     NOW, THEREFORE, Broker, the Company, Founding Stockholder and HCMLP hereby agree as follows:

1.     Engagement of Broker

     During the term of this Purchase Plan, Broker shall act as Founding Stockholder’s and HCMLP’s
exclusive agent to purchase Shares pursuant to this Purchase Plan. Subject to the terms and
conditions set forth herein, Broker hereby accepts such appointment and engagement.

2.     Trading Instructions

     (a)     Broker is authorized to begin purchasing Shares as agent for Founding Stockholder or HCMLP
as set forth herein pursuant to this Purchase Plan on the later of (i) the day after the Company
files an initial preliminary proxy statement (the “Preliminary Proxy Statement”) with the
Securities and Exchange Commission relating to a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or similar business combination (the “Business Combination”), with
one or more operating businesses (the “Target”) and (ii) 60 calendar days after termination of the
“restricted period” in connection with the Company’s initial public offering under Regulation M
(the “Commencement Date”). Broker shall cease

 

 

purchasing Shares on the Termination Date (as defined below). The period beginning on the
Commencement Date and ending on the Termination Date is referred to herein as the “Plan Period”.
For the avoidance of doubt, Broker shall not begin purchasing Shares as agent pursuant to this
Purchase Plan, until it receives written notification from the Company and Founding Stockholder of
the Commencement Date in accordance with Section 5(a) herein. Such notice shall be given to Broker
in writing by facsimile at [· ], Attention: [· ], and confirmed by telephone at
[· ].

     (b)     In accordance with Broker’s customary procedures, Broker will deposit Shares purchased
hereunder into the Account against payment to Broker of the purchase price therefor and commissions
and other fees in respect thereof.

     (c)     Broker will notify Founding Stockholder of all transactions executed under this Purchase
Plan pursuant to customary trade confirmations, which shall be provided within 24 hours of each
transaction to Highland Capital Management, L.P., 13455 Noel Road, Suite 800, Dallas, TX 75240,
Att: General Counsel, by facsimile at 972-419-6287 confirmed by telephone at 972-628-4100, with a
copy to J. Dougherty at jdougherty@hcmlp.com

     (d)     (i)     On each day on which the American Stock Exchange (the “Exchange”) is open for trading
(each, a “Business Day”), Broker shall use commercially reasonable efforts to purchase, as agent
and for the account of Founding Stockholder in compliance with Rule 10b-18(b), the lesser of (x)
the maximum number of Shares Founding Stockholder or HCMLP, as the case may be, is permitted to
purchase under Rule 10b-18 on such Business Day and (y) the number of Shares to be purchased
pursuant to the Share Repurchase Guidelines set forth on Appendix A hereto, provided, however, that
to the extent such purchases would not constitute “Rule 10b-18 purchases” as defined under Rule
10b-18 solely as a result of Rule 10b-18(a)(13)(iv), Broker may upon the advice of counsel to
Broker, disregard any restriction contained in Rule 10b-18(a)(13)(iv)(B) in determining the number
of shares that may be purchased pursuant to clause (x)above.

              (ii)     Founding Stockholder or HCMLP, as the case may be, shall pay to Broker a commission of
$[· ] per Share so purchased.

     (e)     Broker will make, keep and produce promptly upon request a daily time-sequenced schedule
of all Share purchases made under this Purchase Plan, on a transaction-by-transaction basis,
including (i) size, time of execution and price of purchase; and (ii) the exchange, quotation
system, or other facility through which the Share purchase occurred, which obligations are set
forth under the heading “Daily Time-Sequenced Schedule Obligations” on Appendix A hereto.

     (f)     Founding Stockholder and HCMLP agree that this Purchase Plan constitutes an irrevocable
limit order to purchase Shares pursuant to the terms of this Purchase Plan, including the Share
Repurchase Guidelines set forth on Appendix A hereto.

3.     Broker’s Discretion to Deviate from Trading Instructions

     (a)     Subject to the Share Repurchase Guidelines and other terms and conditions set forth in
this Purchase Plan, Broker shall have full discretion with respect to the execution of all
purchases, and Founding Stockholder and HCMLP acknowledge and agree that neither Founding

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Stockholder nor HCMLP has, and shall not attempt to exercise, any influence over how, when or
whether to effect such purchases of Shares pursuant to this Purchase Plan.

     (b)     Notwithstanding any provision herein to the contrary, including the provisions of Section
2(d)(i), in the event that, on any Business Day, in the opinion of Broker’s counsel, effecting
purchases hereunder would result in a violation of applicable law or a breach of any contract to
which Broker or its affiliates are a party or by which it or its affiliates are bound or such
purchases would result in a violation of applicable law by Founding Stockholder or HCMLP, as the
case may be (collectively, “Restrictions”), Broker may refrain from purchasing Shares or purchase
fewer than the otherwise applicable number of Shares to be purchased set forth in the Share
Repurchase Guidelines, as determined by Broker, in its discretion with regard to such Restrictions.

4.     Termination Date

     This Purchase Plan shall terminate upon the Termination Date. “Termination Date” means the
earliest of:

     (a)     the Business Day immediately preceding the record date for the meeting of stockholders at
which the Business Combination is to be voted upon by the Company’s stockholders;

     (b)     the Business Day on which the aggregate purchase price for all Shares purchased under this
Purchase Plan equals $25,000,000; provided that, for avoidance of doubt, in no event shall
the aggregate purchase price for all Shares purchased under this Purchase Plan exceed $25,000,000;

     (c)     the date that Broker receives notice that Founding Stockholder has filed a petition for
bankruptcy or reorganization, or a petition for bankruptcy has been filed against Founding
Stockholder and has not been dismissed within sixty (60) calendar days of its filing;

     (d)     the date that Founding Stockholder or any other person publicly announces a tender or
exchange offer with respect to the Shares or a merger, acquisition, reorganization,
recapitalization or other similar business combination or transaction as a result of the
consummation of which the Shares would be exchanged or converted into cash, securities or other
property; and

     (e)     the date following the date on which the Company publicly announces that it does not
intend to proceed with the Business Combination that was the subject of the Preliminary Proxy
Statement; and

     (f)     such time as Broker determines, in its sole discretion, that it is prohibited for any
reason from engaging in purchasing activity as Founding Stockholder’s or HCMLP’s agent under this
Purchase Plan.

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     If Broker determines that any event specified in Paragraphs (b), (c), (d), (e), or (f) of this
Section 4 has occurred, Broker shall promptly notify Founding Stockholder that this Purchase Plan
has terminated pursuant to the terms of this Section 4 and the date of such termination.

5.     Representations, Warranties and Covenants

     (a)     From the date hereof until the Termination Date, each of the Company, Founding Stockholder
and HCMLP agrees not to discuss with Broker the Company’s business, operations or prospects or any
other information likely to be related to the value of the Shares or likely to influence a decision
to sell Shares. Notwithstanding the preceding sentence, with the approval of counsel to Broker,
Founding Stockholder, HCMLP and the Company may communicate with Broker personnel who are not
responsible for, and have no ability to influence, the execution of this Purchase Plan.
Notwithstanding the first sentence in this paragraph, the Company, Founding Stockholder and HCMLP
shall jointly provide Broker with written notification of (i) the Commencement Date, whether the
shareholders of the Target have voted on the Business Combination prior to the Commencement Date,
and the Per Share Amount (as defined in Appendix A) as soon as practicable after the Preliminary
Proxy Statement is filed by the Company with the Securities and Exchange Commission and (ii) the
mailing of a proxy or other solicitation materials to shareholders of the Target with respect to a
vote on the Business Combination or any fact that would make purchases under this Purchase Plan
unlawful pursuant to Regulation M or otherwise, as soon as such fact is known to the Company,
Founding Stockholder or HCMLP.

     (b)     Each of Founding Stockholder and HCMLP represents and warrants to Broker that it has duly
authorized this Purchase Plan and the transactions contemplated hereby.

     (c)     Each of Founding Stockholder and HCMLP agrees that it will not, and the Company agrees
with Broker that neither it nor any “affiliated purchaser” as defined in Rule 10b-18 will, make any
purchases of blocks as described in the proviso in Rule 10b-18(b)(4) during the four full calendar
weeks immediately preceding the Commencement Date.

     (d)     Each of Founding Stockholder and HCMLP represents and warrants to Broker that it is not
aware of any material, nonpublic information concerning the Company or its securities (“Material,
Nonpublic Information”) and is entering into this Purchase Plan in good faith and not as part of a
plan or scheme to evade the prohibitions of Rule 10b5-1.

     (e)     Broker represents and warrants to the Company, Founding Stockholder and HCMLP that it has
implemented reasonable policies and procedures, taking into consideration the nature of Broker’s
business, to ensure that individuals making investment decisions will not violate the laws
prohibiting trading on the basis of Material, Nonpublic Information. These policies and procedures
include those that restrict any purchase or sale, or the causing of any purchase or sale, of any
security as to which Broker has Material, Nonpublic Information, as well
as those that prevent such individuals from becoming aware of or being in possession of
Material, Nonpublic Information.

     (f)     From the date hereof until the Termination Date, each of Founding Stockholder and HCMLP
agrees not to enter into any hedging transaction with respect to any Shares.

4

 

     (g)     Each of the Company, Founding Stockholder and HCMLP agrees that, during the period from
the Commencement Date to the date falling that number of days following the Termination Date equal
to the “restricted period” applicable to the Company, it will not engage in any “distribution” with
respect to which the Shares are a “covered security” (as such terms are defined in Regulation M) or
any other activity that would prohibit repurchase of Shares by Broker.

     (h)     Each of the Company, Founding Stockholder and HCMLP represents and warrants that as of the
time of execution of this Purchase Plan, it has not entered into any similar plan or agreement
with respect to Shares or any security or interest convertible into or exchangeable for Shares.
Each of the Company, Founding Stockholder and HCMLP agrees that without the prior written consent
of Broker, it shall not, during the Plan Period, directly or indirectly (including, without
limitation, by means of a cash-settled or other derivative instrument) purchase, offer to purchase,
place any bid or limit order that would effect a purchase of, any Shares (or an equivalent
interest, including a unit of beneficial interest in a trust or limited partnership or a depository
share), or any security convertible into or exchangeable for Shares.

     (i)     Each of the Company, Founding Stockholder and HCMLP agrees to inform Broker (i) of any
purchases made during the Plan Period by an “affiliated purchaser” as defined in Rule 10b-18
promptly upon becoming aware of such purchases and (ii) if any “affiliated purchaser” intends to
make any such purchases, promptly upon being informed of such intention.

6.     Compliance with the Securities Laws

     (a)     It is the intent of the parties that this Purchase Plan comply with the requirements of
Rule 10b5-1(c)(1)(i)(B), and the parties agree that this Purchase Plan shall be interpreted to
comply with the requirements of Rule 10b5-1(c).

     (b)     Broker agrees to use its commercially reasonable efforts to satisfy the conditions of Rule
10b-18(b) as contemplated in Section 2(d)(i) in effecting purchases of Shares pursuant to this
Purchase Plan.

7.     Indemnification

     (a)     Founding Stockholder and HCMLP agree to indemnify and hold harmless Broker (and its
directors, officers, employees and affiliates) from and against all claims, liabilities, losses,
damages and expenses (including reasonable attorney’s fees and costs) arising out of or
attributable to (i) any material breach by the Company, Founding Stockholder or HCMLP of this
Purchase Plan (including the Company’s, Founding Stockholder’s and HCMLP’s representations and
warranties), and (ii) any violation by the Company, Founding Stockholder or HCMLP of
applicable laws or regulations with respect to the transactions contemplated by this Purchase
Plan. This indemnification will survive the termination of this Purchase Plan. Founding
Stockholder and HCMLP will have no indemnification obligations hereunder in the case of gross
negligence or willful misconduct of Broker or any other indemnified person or if Broker fails to
comply with Section 6(b) hereof (unless such failure arises out of or is attributable to a breach
by the Company, Founding Stockholder or HCMLP of its representations, warranties or obligations

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hereunder), as determined by a final, non-appealable judgment of a court of competent jurisdiction.

     (b)     Notwithstanding any other provision herein, no party hereto will be liable to the other
for (i) special, indirect, punitive, exemplary, or consequential damages, or incidental losses or
damages of any kind, including but not limited to lost profits, lost savings, loss of use of
facility or equipment, regardless of whether arising from breach of contract, warranty, tort,
strict liability or otherwise, and even if advised of the possibility of such losses or damages or
if such losses or damages could have been reasonably foreseen, or (ii) any failure to perform or
for any delay in performance that results from a cause or circumstance that is beyond its
reasonable control, including but not limited to failure of electronic or mechanical equipment,
strikes, failure of common carrier or utility systems, severe weather, market disruptions or other
causes commonly known as “acts of God”.

     (c)     The Company, Founding Stockholder and HCMLP acknowledge and agree that Broker has not
provided the Company, Founding Stockholder or HCMLP with any tax, accounting or legal advice with
respect to this Purchase Plan, including whether Founding Stockholder or HCMLP would be entitled to
any of the affirmative defenses under Rule 10b5-1 or entitled to the safe harbor of Rule 10b-18.

8.     HCMLP

     HCMLP agrees with Broker that it will purchase any Shares with respect to which the Founding
Stockholder is unable to satisfy its obligations under Section 2 hereunder. Notwithstanding any
provision herein to the contrary, HCMLP agrees that any Shares purchased by it pursuant to this
Purchase Plan will be purchased for the account of the Founding Stockholder and held in the
Account.

9.     General

     (a)     This Purchase Plan (including any Appendices, Annexes or Exhibits) constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof, and supersedes any
previous or contemporaneous agreements, understandings, proposals or promises with respect thereto,
whether written or oral.

     (b)     This Purchase Plan will be governed by, and construed in accordance with, the laws of the
State of New York, without regard to such State’s conflict of laws rules.

     (c)     This Purchase Plan and each party’s rights and obligations hereunder may not be assigned
or delegated without the written permission of the other party and shall inure to the
benefit of each party’s successors and permitted assigns, whether by merger, consolidation or
otherwise.

     (d)     This Purchase Plan may be executed in two or more counterparts and by facsimile signature.

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     IN WITNESS WHEREOF, the undersigned have signed this Purchase Plan as of the date first
written above.

	 	 	 	 	 
	 	[Broker]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 
	 	HCM Acquisition Company

 	 
	 
	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 
	 
	 	HCM Acquisition Holdings, LLC

    By:  Highland Capital Management, L.P.

    By:  Strand Advisors, its general partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 
	 
	 	Highland Capital Management, L.P.

    By:  Strand Advisors, its general partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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APPENDIX A

Share Repurchase Guidelines

	 	 	 
	Purchase Price Range	 	Number of Shares to be Purchased
	 
	 	 
	$___[Per Share Amount]
or below1

	 	Broker is to buy $25.0 million of Shares
(AMEX: HQA), excluding commissions,
subject to the conditions of Rule
10b-18(b) and less the aggregate purchases
of any Shares previously purchased.

Daily Time-Sequenced Schedule Obligations

	 	 	 
	Obligor	 	Obligation
	Broker

	 	Broker is to make, keep and produce promptly upon
request a daily time-sequenced schedule of all Share
purchases made under this Purchase Plan, on a
transaction-by-transaction basis, including:
	 

	 	• size, time of execution, price of purchase; and
	 

	 	• the exchange, quotation system, or other facility
through which the Share purchase occurred.

All Share amounts and limit prices listed herein shall be increased or decreased to reflect stock

splits should they occur.

 

			
	1	 	The Per Share Amount shall be the amount per
share held in the Company’s trust account, as reported in the Preliminary Proxy
Statement.

Appendix A-1exv10w1

 

Exhibit 10.1

BIOPURE/BUTLER AGREEMENT

PAGE 1 OF 3

CONSULTING AGREEMENT

     This AGREEMENT (hereinafter referred to as the “Agreement”), dated as of December 17, 2007,
between BIOPURE CORPORATION (hereinafter referred to as the “Company”) and David A. Butler
(hereinafter referred to as the “Consultant”);

W
I T N E S S E T H:

     WHEREAS, the Company’s Acting Chief Financial Officer has retired;

     WHEREAS, the Company needs immediate assistance in the conduct of CFO duties and
responsibilities;

     WHEREAS, the Consultant has experience enabling him to render services in these matters on a
temporary basis;

     NOW, THEREFORE, in consideration of the mutual covenants herein set forth and of the promises
contained herein, the Company and the Consultant hereby agree as follows:

     1. Engagement as Independent Contractor. The Company hereby engages the Consultant
as an independent contractor, and the Consultant hereby accepts said engagement under the terms and
conditions set forth herein.

     2. Role of Consultant. The Consultant shall serve as Interim Chief Financial
Officer. The Company will make available to the Consultant an office for his use at such times as
the Consultant renders services at the Company’s headquarters and a Blackberry for his business
use.

     3. Term. The primary term during which consulting services shall be required under
this Agreement shall be three months from the date of this Agreement, and this Agreement will
automatically renew for additional one month terms unless terminated by either party at least one
month prior to the last day of the primary term or any renewal term.

     4. Consultant’s Fee. The Company shall pay the Consultant at the monthly rate of
$16,667, payable monthly in arrears.

     5. Expenses. The Company will promptly reimburse the Consultant, upon submission by
the Consultant of an adequately detailed and documented listing of such expenses, the Consultant’s
reasonable out-of-pocket expenses incurred in travel at the Company’s request and otherwise in
rendering his services under this Agreement, provided such expenses are incurred at the request of
the Company.

     6. Representation by the Consultant. The Consultant represents and warrants to the
Company that (i) he is not a party to, or bound by, any agreement or commitment, or subject to any
restriction, including but not limited to agreements related to previous consulting engagements or
employment containing confidentiality or non-compete covenants, which adversely affects or
conflicts with the

 

 

BIOPURE/BUTLER AGREEMENT

PAGE 2 OF 3

Consultant’s ability to enter into or render his services under this Agreement; and (ii) he is
not aware of any impediment to his being accessible and available, with reasonable notice and
consistent with the needs of his other clients, to the Company to render his services under this
Agreement.

     6A. Representation by the Company: The Company represents and warrants to the
Consultant that during the period of performance of his duties under this Agreement and thereafter
on a “claims made” basis, the Consultant will be indemnified by the Company to the same extent as
if he were an officer and/or employee and covered by the Company’s directors and officers liability
insurance

     7. Confidentiality.

          (a) Company Information. The Consultant acknowledges that as a result of the
Consultant’s engagement with the Company, the Consultant will necessarily become informed of, and
have access to, certain non-public information about the Company and its subsidiaries, including,
without limitation, trade secrets, technical information, and preclinical and clinical information
(“Company Information”). The Consultant shall not at any time, either during or subsequent to the
term of this Agreement, use, reveal, report, publish, transfer or otherwise disclose to any person,
corporation or other entity without the prior written approval of the Board of Directors or the
Chief Executive Officer of the Company (which approval may be withheld in the sole discretion of
such Board or Officer), any of the Company Information (a) except to the responsible officers and
employees of the Consultant who have a need for such information for purposes in the best interests
of the Company; (b) except for such information that legally and legitimately is or becomes of
general public knowledge from authorized sources other than the Consultant; and (c) except, after
prior consultation with the Company, any legally required disclosure. Company Information shall
include information contributed, developed or acquired by the Consultant in the performance of
services hereunder. The Consultant shall be jointly and severally liable for any breach hereof by
him or any transferee of Company Information from the Consultant.

          (b) Return of Company Information. Upon the termination of this Agreement, the
Consultant shall promptly deliver to the Company all tangible manifestations of Company
Information, including notes, notebooks, reports and all other materials, whether written or in
electronic form, and any copies thereof, whether or not of a secret or confidential nature,
relating to the Company’s business that are in the Consultant’s possession or control, including
computers owned or used by Consultant, wherever located.

          (c) Ownership of Information. The Consultant acknowledges that the Company
Information, including all information contributed, developed or acquired by the Consultant and all
tangible manifestations thereof, is the exclusive property of the Company to be held by the
Consultant in trust and solely for the Company’s benefit. The Consultant will execute and deliver
all instruments, including assignments of copyrights or patents, that may be necessary or desirable
to vest in the Company title to and possession of the Company Information contributed, developed or
acquired by the Consultant.

     8. Availability of Injunctive Relief. The parties agree that in the event of the
Consultant’s breach of Section 7 the Company would have no adequate relief at law and shall be
entitled, in addition to all other remedies which may be available to it, to injunctive relief in
any court of

 

 

BIOPURE/BUTLER AGREEMENT

PAGE 3 OF 3

competent jurisdiction to prevent or otherwise restrain or terminate any actual or threatened
breach of such section by the Consultant.

     9. Miscellaneous.

          (a) The failure of any provision of this Agreement shall in no manner affect the right to
enforce the remaining portions of this Agreement, and the waiver by any party of any breach of any
provision of this Agreement shall not be construed to be a waiver by such party of any succeeding
breach of such provision or a waiver by such party of any breach of any other provision. If any
court construes any of the covenants herein, or any part thereof, to be unenforceable because of
the duration of such provisions or the area covered thereby, such court shall have the power to
reduce the duration or area of such provision and, in its reduced form, such provision shall then
be enforceable and shall be enforced.

          (b) The foregoing contains the entire agreement between the Company and the Consultant with
respect to the Consultant’s engagement as an independent contractor, and no modification therefore
shall be binding upon a party unless the same is in writing signed by such party thereto.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date herein
first set forth above.

	 	 	 	 	 
	/s/
David A. Butler 

	 	Date: December 17, 2007	 	 
	 

David A. Butler

	 	 
	 	 
	 
	 	 	 	 
	BIOPURE CORPORATION
	 	 	 	 
	 
	 	 	 	 
	By:
/s/ Zafiris G. Zafirelis

	 	Date: December 17, 2007

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