Document:

Exhibit 10.4

 

FOUNDER SHARE TRANSFER LETTER AGREEMENT

 

March 21, 2016

 

WL Ross Holding Corp.
 1166 Avenue of the Americas
 New York, New York 10036

 

Nexeo Holdco, LLC
  3 Waterway Square Place #1000
  The Woodlands, TX 77380

 

Re:          Transfer of Founder Shares

 

Gentlemen:

 

Reference is made to that certain agreement and plan of merger by and among WL Ross Holding Corp., a Delaware corporation (“Parent”), Neon Acquisition Company LLC, a Delaware limited liability company and a wholly-owned subsidiary of Parent (“Blocker Merger Sub”), Neon Holding Company LLC, a Delaware limited liability company and a wholly-owned subsidiary of Blocker Merger Sub (“Company Merger Sub”), Nexeo Solutions Holdings, LLC, a Delaware limited liability company (the “Company”), TPG Accolade Delaware, L.P., a Delaware limited partnership (“Blocker”) and Nexeo Holdco, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company (“New Holdco”).  In order to induce Nexeo to enter into the Merger Agreement, WL Ross Sponsor LLC (“WLRS”) has agreed to enter into this letter agreement (this “Agreement”) relating to the transfer of the number of shares of Parent Common Stock calculated in accordance with Section 2 hereof issued to WLRS pursuant to that certain Amended and Restated Subscription Agreement between WLRS and Parent, dated as of April 4, 2014 (the “Subscription Agreement”), on the terms and subject to the conditions specified herein.  This letter represents the “Transfer Letter” contemplated by the Merger Agreement.  Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Merger Agreement.

 

WLRS hereby agrees with New Holdco and Parent as follows:

 

1. Subject to the satisfaction or waiver of all conditions precedent set forth in the Merger Agreement and in exchange for the consideration contemplated by the Merger Agreement, concurrently with the Closing WLRS shall transfer to the Selling Equityholders, a number of Founder Shares equal to the product of (a) the number of Founder Shares outstanding and held by WLRS immediately prior to the Closing (excluding 30,000 Founder Shares which will be transferred to the Parent’s independent directors), multiplied by (b) the Selling Equityholder Fraction (as adjusted in accordance with Exhibit B, attached hereto, the “Transfer Shares”).  The “Selling Equityholder Fraction” shall equal (x) the sum of (i) the number of shares of Parent Common Stock issued as Stock Consideration plus (ii) the number of Excess Shares determined in accordance with the Merger Agreement, if any, divided by (y) the sum of (i) the number of shares of Parent Common Stock (excluding any Founder Shares)  issued and outstanding as of immediately following the Closing plus (ii) the number of Excess Shares determined in accordance with the Merger Agreement, if any.

 

Concurrently with the provision of the Consideration Schedule by the Company pursuant to the Merger Agreement, New Holdco shall provide written instructions to WLRS as to the allocation of the Transfer Shares among the Selling Equityholders; provided, however, that as a condition to receiving any Transfer Shares, each Selling Equityholder shall agree in writing to be bound by the terms of this Agreement, and shall have become, by joinder, a party to the Shareholders and Registration Rights Agreement. Upon the transfer of the Transfer Shares, WLRS shall cease to own the Transfer Shares.

 

2. The Transfer Shares shall be deemed to be Founder Shares and shares of Common Stock as such terms are defined in the Shareholders and Registration Rights Agreement, and each holder of Founder Shares, including any Transfer Shares, will be bound by the terms and conditions thereof, including such terms governing the vesting and transfer of the Founder Shares, a summary of which terms are set forth on Exhibit A hereto.  WLRS shall not Transfer (as such term is defined in the letter agreement, dated May 29, 2014, by and among WLRS, the Company and certain management holders party thereto) any Transfer Shares, other than in accordance with Section 1.

 

 

3. This Agreement and the Shareholders and Registration Rights Agreement constitute 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.  This 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.

 

4. No party hereto may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other party. 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 Agreement shall be binding on the undersigned and their respective successors and assigns.

 

5. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, 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 Agreement shall be brought and enforced in the Court of Chancery of the State of Delaware (or, if the Court of Chancery of the State of Delaware lacks jurisdiction, then in the applicable Delaware state court), or if under applicable Law exclusive jurisdiction of such action is vested in the federal courts, then the United States District Court for the District of Delaware, and irrevocably submits to such jurisdiction and venue, which jurisdiction and venue shall be exclusive, and (ii) waives any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient forum.

 

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

 

7. This Agreement shall terminate at such time, if any, that the Merger Agreement is terminated in accordance with its terms.

 

[Signature page follows]

 

2

 

Please indicate your agreement to the foregoing by signing in the space provided below.

 

	
 
    	
WL ROSS SPONSOR LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Wilbur L. Ross, Jr.
    
	
 
    	
 
    	
Name:
    	
Wilbur L. Ross, Jr.
    
	
 
    	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ACCEPTED AND AGREED TO:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
NEXEO HOLDCO, LLC
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ David Bradley
    	
 
    	
 
    	
 
    
	
Name:
    	
David   Bradley
    	
 
    	
 
    	
 
    
	
Title:
    	
President   and Chief Executive Officer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
WL   ROSS HOLDINGS CORP.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Wilbur L. Ross, Jr.
    	
 
    	
 
    	
 
    
	
Name:
    	
Wilbur   L. Ross, Jr.
    	
 
    	
 
    	
 
    
	
Title:
    	
President   and Chief Executive Officer
    	
 
    	
 
    	
 
    

 

 

Exhibit A

 

FOUNDER SHARES

 

	
Earnout trigger
    	
 
    	
With respect to 50% of   the Founder Shares, the last sale price of Parent common stock equals or   exceeds $12.50 per share (as adjusted for stock splits, dividends,   reorganizations, recapitalizations and the like) for any 20 trading days   within any 30-trading day period; and

 

With respect to remaining   50% of the Founder Shares, the last sale price of Parent common stock equals   or exceeds $15.00 per share (as adjusted for stock splits,  dividends, reorganizations,   recapitalizations and the like) for any 20 trading days within any 30-trading   day period; or

 

in either case, Parent   completes a liquidation, merger, stock exchange or other similar transaction   that results in all or substantially all of its stockholders having the right   to exchange their shares of common stock for consideration in cash,   securities or other property or any transaction  involving a consolidation, merger, proxy   contest, tender offer or similar transaction in which the company is the   surviving entity which results in a change in the majority of our board of   directors or management team or the Parent stockholders immediately prior to   such transaction ceasing to own a majority of the surviving entity   immediately after such transaction.
    
	
 
    	
 
    	
 
    
	
Antidilution Protection
    	
 
    	
Founder Shares will not   participate in dividends or other distributions with respect to the shares   prior to the targets being met, whereupon the number of Founder Shares shall   be entitled to all dividends and distributions paid on the common stock after   the Business Combination as if they had been holders of record entitled to   receive distributions on the applicable record date.
    
	
 
    	
 
    	
 
    
	
Forfeiture Date
    	
 
    	
Tenth anniversary of   the consummation of the Business Combination.
    
	
 
    	
 
    	
 
    
	
Other Restrictions
    	
 
    	
The Founder Shares will   continue to be subject to the transfer restrictions contained in the   Shareholders and Registration Rights Agreement and the Insider Letter and   under securities laws.
    
	
 
    	
 
    	
 
    
	
Treatment of Forfeited   Shares
    	
 
    	
Parent would record the   aggregate fair value of the shares forfeited and reacquired to treasury stock   and a corresponding credit to additional paid-in capital based on the   difference between the fair market value of the forfeited shares and the   pro-rata portion of the price paid to Parent for such forfeited shares of   approximately $25,000. Upon receipt, such forfeited shares would then be   immediately cancelled, which would result in the retirement of the treasury   stock and a corresponding charge to additional paid-in capital.
    

 

 

Exhibit B

 

In the event that WLRS, in order to induce a Private Placement Investor to participate in the Equity Financing, agrees to transfer to such Private Placement Investor a number of Founder Shares, then New Holdco and any other Selling Equityholders that become a party to this Agreement by joinder agree that WLRS may transfer a number of Founder Shares that would otherwise be Transfer Shares (the “Reallocated Transfer Shares”) to the Private Placement Investor instead of to the Selling Equityholders; provided, however, that as a result of the transfer of the Reallocated Transfer Shares (i) such Private Placement Investor shall not receive, in the aggregate with all other Founder Shares, a number of Founder Shares that represents a higher proportion of the Founder Shares than the Parent Common Stock purchased by such Private Placement Investor in the Equity Financing represents of all outstanding Parent Common Stock (and Excess Shares, if any), immediately following the Closing and (ii) the Selling Equityholders shall have no obligation to forego, for the benefit of the Private Placement Investor, a larger proportion of the Founder Shares to which it would otherwise be entitled to pursuant to this Transfer Letter than the proportion of Founder Shares (other than the Transfer Shares) foregone by WLRS for the benefit of the Private Placement Investor.

 

“Private Placement Investor” means any Person who purchases any shares of Parent Common Stock in the Equity Financing; provided, that, any Affiliate of WLRS shall only be a Private Placement Investor if such Affiliate both (i) is receiving Founder Shares on the same terms as other similarly situated investors in the Equity Financing and (ii) is not controlled by WLRS.

 

5Exhibit

Exhibit 10.17

January 31, 2016

Morteza Ejabat
2590 Green St.
San Francisco, CA 94123

Dear Mory:

This letter agreement (this “Agreement”) sets forth the understanding by and between you and Zhone Technologies, Inc. (“Zhone”) regarding your voluntary resignation from employment as Executive Chairman and your agreement to continue to provide transition support services to Zhone. In consideration for the rights and obligations set forth herein, the parties acknowledge and agree that: 

1.Transition. Effective as of January 31, 2016 (the “Transition Date”), you hereby voluntarily terminate your employment with Zhone and its affiliates and resign from all positions with Zhone and its affiliates (including, without limitation, your position as Executive Chairman of Zhone). For a period of one (1) year following the Transition Date (the “Transition Term”), you will serve as a consultant to Zhone. During the Transition Term, you will provide such transition services as may be reasonably requested by Zhone and will be reasonably available to consult with the senior management team of Zhone and its affiliates and members of the Board of Directors as reasonably requested. For the avoidance of doubt, the parties acknowledge and agree that your termination of employment on the Transition Date will not result in any payments or other obligations from Zhone or any of its affiliates pursuant to that certain Third Amended and Restated Employment Agreement by and between Zhone and you, dated as of July 17, 2014 (the “Employment Agreement”) or otherwise.  

2.Stock Awards. You will retain all right, title and interest you have in any outstanding equity awards granted to you by Zhone.  In addition, as soon as practicable following the Transition Date, Zhone will grant to you 500,000 shares of Zhone common stock (the “Stock Award”) in consideration of your transition services and support to Zhone during the Transition Term.  These shares will be granted pursuant to the Zhone Technologies, Inc. 2001 Stock Incentive Plan and will be fully vested on the date of grant.  

3.Transition Compensation. During the Transition Term, other than the Stock Award, you will not receive any cash, equity or other compensation from Zhone.  

4.Miscellaneous. 
a.To the extent any personal income or other taxes may be due on the payments to you provided in this Agreement, you agree to pay them and to indemnify and hold Zhone and its affiliates harmless for any tax claims, penalties or liability resulting from such payments. 
b.Following the Transition Date, the parties acknowledge and agree that you will not be an insider of Zhone or its affiliates for purposes of Zhone’s insider trading policy.
c.Except with respect to the parties’ obligations under Sections 11, 12, 13, and 14 of the Employment Agreement (which shall survive in accordance with their terms), the Employment Agreement is hereby terminated and of no further force and effect. This Agreement, the Stock Award agreement and the surviving provisions of the Employment Agreement (as referenced in this Section 4(c)) contain the entire agreement between the parties relating to the subject matter contained herein and supersede and terminate any and all previous agreements of any kind whatsoever between the parties, whether written or oral.     
d.This Agreement shall be construed in accordance with and governed for all purposes by the laws and public policy of the State of Delaware, regardless of the law that might be applied under principles of conflicts of law of any jurisdiction.  
e.This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement.

Sincerely,

Zhone Technologies, Inc.

 /s/ Kirk Misaka            
Kirk Misaka    
Chief Financial Officer

Acknowledged, accepted and agreed:  

/s/ Morteza Ejabat            
Morteza Ejabat

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]