Document:

Exhibit 10.2

AMENDED AND RESTATED 

SPONSOR WARRANT PURCHASE AGREEMENT

This AMENDED AND RESTATED SPONSOR WARRANT PURCHASE AGREEMENT, dated as of February 11, 2008 (this “Agreement”), is entered into by and between MAFS Acquisition Corp., a Delaware corporation (the “Company”), and MAFS Acquisition LLC, a Delaware limited liability company (the “Sponsor”).

WHEREAS, the Company and the Sponsor entered into a Sponsor Warrant Purchase Agreement dated as of December 4, 2007 (the “Original Sponsor Warrant Purchase Agreement”);

WHEREAS, the Company and the Sponsor wish to amend the terms of the Original Sponsor Warrant Purchase Agreement to permit the Sponsor to assign its obligation to purchase Sponsor Warrants (as defined below) from the Company to one or more of its Affiliates (for purposes of this Agreement, “Affiliate” has the meaning set forth in Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”), as in effect at the date hereof);

WHEREAS, the Company has filed a registration statement (the “Registration Statement”) on Form S-1 under the Securities Act of 1933, as amended (the “Securities Act”), with the Securities and Exchange Commission in connection with a proposed initial public offering (the “Initial Public Offering”) of 50,000,000 units (or up to 57,500,000 units if and to the extent that the underwriter exercises its over-allotment option), each consisting of one share of common stock of the Company, par value $0.0001 per share (“Common Stock”),
and one warrant to purchase one additional share of Common Stock for $7.50 (a “Warrant”), subject to the terms and conditions set forth in the Registration Statement; and

WHEREAS, the Company desires to issue and sell, and the Sponsor desires to purchase (or to cause one or more of its Affiliates to purchase) an aggregate of 10,000,000 additional Warrants in a private placement to occur immediately prior to the consummation of the Initial Public Offering;

NOW, THEREFORE, for and in consideration of the promises and mutual covenants set forth herein, the parties hereto agree as follows:

1. Purchase and Sale of the Sponsor Warrants. Subject to and immediately prior to the consummation of the Initial Public Offering, the Company shall issue and sell to the Sponsor (or one or more of its Affiliates), and the Sponsor shall purchase (or cause one or more of its Affiliates to purchase) from the Company, an aggregate of 10,000,000 Warrants (the “Sponsor Warrants”) at a purchase price of $1.00 per Sponsor Warrant for an aggregate purchase price of $10,000,000. The terms of the Sponsor Warrants shall be set forth in a Warrant Agreement to be entered into by and between the Company and American Stock Transfer & Trust Company, as warrant agent, which shall be substantially in the form attached hereto
as Exhibit A (the “Warrant Agreement”). The Sponsor hereby agrees to cause any Affiliate of the

 

 

 

 

Sponsor that purchases Sponsor Warrants from the Company hereunder to become a party to this Agreement and to be bound by its terms and conditions, including the investment representations set forth in Paragraph 5.

2. Closing of Purchase and Sale. The closing of the purchase and sale of the Sponsor Warrants hereunder, including payment for and delivery of the Sponsor Warrants, shall take place at the offices of the Company or the Company’s legal counsel immediately prior to, and shall be subject to, the consummation of the Initial Public Offering. At the closing, the Company shall deliver to the Sponsor and/or any of its Affiliates purchasing Sponsor Warrants a certificate or certificates evidencing the Sponsor Warrants, substantially in the form attached as an exhibit to the Warrant Agreement, registered in the name or names of the purchasers, upon the payment of the aggregate purchase price therefor in immediately available funds by delivery of a cashiers check or by wire transfer to an account
designated by the Company.

3. Registration Rights. At the time of the closing of the Initial Public Offering, the Company and the Sponsor shall enter into a registration rights agreement pursuant to which the Company will grant certain registration rights to the Sponsor, its Affiliates and their permitted transferees relating to the Sponsor Warrants and the Common Stock issuable upon exercise of the Sponsor Warrants.

4. Company Representations and Warranties. In connection with the issuance and sale of the Sponsor Warrants, the Company hereby represents and warrants to the Sponsor the following:  

(a) Organization and Corporate Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and the Company has all necessary corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. 

(b) Authorization; No Breach. All corporate action necessary to be taken by the Company to authorize the execution, delivery and performance of this Agreement and all other agreements and instruments delivered by the Company in connection with the transactions contemplated hereby has been duly and validly taken and this Agreement has been duly executed and delivered by the Company. This Agreement constitutes the valid, binding and enforceable obligation of the Company, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar laws of general application now or hereafter in effect affecting the rights and remedies of creditors and by general principles of equity (regardless of
whether enforcement is sought in a proceeding at law or in equity). The issuance and sale by the Company of the Sponsor Warrants does not conflict with the certificate of incorporation or by-laws of the Company or any material contract by which the Company or its property is bound, or any federal or state laws or regulations or decree, ruling or judgment of any United States or state court applicable to the Company or its property.

(c) Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Common Stock issuable upon exercise of the Sponsor Warrants will be duly and validly issued, fully paid and

 

 

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nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof and the Warrant Agreement, the Sponsor will have good title to the Sponsor Warrants and the Common Stock issuable upon exercise of such Sponsor Warrants, free and clear of all liens, claims and encumbrances of any kind, other than transfer restrictions hereunder and under the other agreements contemplated hereby.

5. Sponsor Representations and Warranties. In connection with the purchase of the Sponsor Warrants, the Sponsor hereby represents and warrants to the Company the following:

(a) Investment Representations. 

(i) The Sponsor is familiar with the Company’s business plans and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Sponsor Warrants. The Sponsor has been afforded the opportunity to ask questions of the executive officers and directors of the Company. The Sponsor understands that its investment in the Sponsor Warrants involves a high degree of risk. The Sponsor has sought such accounting, legal and tax advice as the Sponsor has considered necessary to make an informed investment decision with respect to the Sponsor’s acquisition of the Sponsor Warrants. The Sponsor has such knowledge and expertise in financial and business matters, knows of the high degree of risk associated with investments generally and particularly investments in the securities of companies
in the development stage such as the Company, is capable of evaluating the merits and risks of an investment in the Sponsor Warrants, and is able to bear the economic risk of an investment in the Sponsor Warrants in the amount contemplated hereunder. The Sponsor understands that there presently is no public market for the Sponsor Warrants and none is anticipated to develop in the foreseeable future. The Sponsor can afford a complete loss of its investment in the Sponsor Warrants. The Sponsor is purchasing the Sponsor Warrants for investment for the Sponsor’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act.

(ii) The Sponsor understands that the Sponsor Warrants have not been registered under the Securities Act or any state securities law by reason of a specific exemption therefrom, and that the Company is relying on the truth and accuracy of, and the Sponsor’s compliance with, the representations and warranties and agreements of the Sponsor set forth herein to determine the availability of such exemptions and the eligibility of the Sponsor to acquire such Sponsor Warrants, including, but not limited to, the bona fide nature of the Sponsor’s investment intent as expressed herein.

(iii) The Sponsor further acknowledges and understands that the Sponsor Warrants must be held indefinitely unless the Sponsor Warrants are subsequently registered under the Securities Act or an exemption from such registration is available. The Sponsor understands that the certificates evidencing the Sponsor

 

 

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Warrants will be imprinted with a legend that prohibits the transfer of the Sponsor Warrants unless the Sponsor Warrants are registered or such registration is not required in the opinion of counsel for the Company.

(iv) The Sponsor represents that the Sponsor is an “accredited investor” as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act.

(v) The Sponsor did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning of Rule 502(c) of the Securities Act.

(vi) The Sponsor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Sponsor Warrants or the fairness or suitability of the investment in the Sponsor Warrants, nor have such authorities passed upon or endorsed the merits of the offering of the Sponsor Warrants.

(b) Organization and Corporate Power. The Sponsor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. The Sponsor has all necessary limited liability company power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. 

(c) Authorization; No Breach. All limited liability company action necessary to be taken by the Sponsor to authorize the execution, delivery and performance of this Agreement and all other agreements and instruments delivered by the Sponsor in connection with the transactions contemplated hereby has been duly and validly taken, and this Agreement has been duly executed and delivered by the Sponsor. This Agreement constitutes the valid, binding and enforceable obligation of the Sponsor, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar laws of general application now or hereafter in effect affecting the rights and remedies of creditors and by general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity). The purchase by the Sponsor of the Sponsor Warrants does not conflict with the organizational documents of the Sponsor or with any material contract by which the Sponsor or its property is bound, or any laws or regulations or decree, ruling or judgment of any court applicable to the Sponsor or its property.

6. Survival of Representations and Warranties. All of the representations and warranties contained herein shall survive the closing date of the purchase and sale of the Sponsor Warrants.

7. Transfer and Redemption Restrictions. 

(a) Transfer Restrictions. The Sponsor hereby acknowledges and agrees to be bound by the transfer restrictions set forth in the Warrant Agreement. 

(b) Redemption. Each of the Company and the Sponsor hereby acknowledges and agrees that, notwithstanding a call for redemption of the Sponsor Warrants by

 

 

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the Company in accordance with the terms of the Warrant Agreement, no Sponsor Warrants held by the Sponsor or any of its Permitted Transferees (as defined in the Warrant Agreement) at the time of such call for redemption shall be redeemable by the Company.

8. Miscellaneous.

(a) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to the principles of conflicts of law thereof. 

(b) Further Execution. The parties agree to take all such further action as may reasonably be necessary to carry out and consummate this Agreement as soon as practicable, and to take whatever steps may be necessary to obtain any governmental approval in connection with or otherwise qualify the issuance of the Sponsor Warrants that are the subject of this Agreement.

(c) Amendments. This Agreement may not be amended, modified or waived, in whole or in part, except by an agreement in writing signed by each of the parties hereto.

(d) Assignment. The Sponsor shall be permitted to assign its obligation to purchase Sponsor Warrants under Paragraph 1, in whole or in part, to any Affiliate of the Sponsor; provided that such Affiliate agrees in writing to become a party to this Agreement and to be bound by its terms and conditions.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.

 

	
                         
 	
                         
 	
                        COMPANY:
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        MAFS ACQUISITION CORP.
 
	
                          
 	
                         
 	
                        By: 
 	
                        
 /s/ Barry F. Schwartz
 
	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Barry F. Schwartz
 
	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        President, Chief Executive Officer  and Director
 

 

	
                         
 	
                         
 	
                        SPONSOR:
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        MAFS ACQUISITION LLC
 
	
                          
 	
                         
 	
                        By: 
 	
                        
 /s/ Ronald O. Perelman
 
	
                         
 	
                         
 	
                         
 	
                        Name:
 	
                        Ronald O. Perelman
 
	
                         
 	
                         
 	
                         
 	
                        Title:
 	
                        Member
 

 

 

5Exhibit 10.7

 
 
 

CO-INVESTMENT UNIT

SUBSCRIPTION AGREEMENT

by and between

MAFS ACQUISITION CORP.

and

MACANDREWS & FORBES HOLDINGS INC.

 

	
                         
 	
                         
 	
                         
 
	
                         
 	
                        Dated as of [          ], 2008
 	
                         
 
	
                         
 	
                         
 	
                         
 

 
 
 

 
 

TABLE OF CONTENTS

 

	
                         
 	
                         
 	
                         
 	
                         
 	
                        Page
 
	
                        ARTICLE I
 	
                         
 	
                        COMMITMENT TO PURCHASE CO-INVESTMENT UNITS
 	
                         
 	
                        1
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        ARTICLE II 
 	
                         
 	
                        PAYMENT OF PURCHASE PRICE
 	
                         
 	
                        2
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        ARTICLE III 
 	
                         
 	
                        LIMITATIONS ON TRANSFER
 	
                         
 	
                        2
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        ARTICLE IV 
 	
                         
 	
                        RESTRICTIVE LEGENDS
 	
                         
 	
                        3
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        ARTICLE V 
 	
                         
 	
                        INVESTMENT REPRESENTATIONS
 	
                         
 	
                        3
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        ARTICLE VI 
 	
                         
 	
                        COMPANY REPRESENTATIONS AND WARRANTIES
 	
                         
 	
                        5
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        ARTICLE VII 
 	
                         
 	
                        MISCELLANEOUS
 	
                         
 	
                        6
 
	
                        7.1
 	
                         
 	
                        Successors and Assigns
 	
                         
 	
                        6
 
	
                        7.2
 	
                         
 	
                        Governing Law; Venue
 	
                         
 	
                        6
 
	
                        7.3
 	
                         
 	
                        Further Execution
 	
                         
 	
                        6
 
	
                        7.4
 	
                         
 	
                        Entire Agreement; Amendment
 	
                         
 	
                        6
 
	
                        7.5
 	
                         
 	
                        Severability
 	
                         
 	
                        6
 
	
                        7.6
 	
                         
 	
                        Counterparts
 	
                         
 	
                        7
 
	
                        7.7
 	
                         
 	
                        Survival
 	
                         
 	
                        7
 
	
                        7.8
 	
                         
 	
                        Waiver of Jury Trial
 	
                         
 	
                        7
 

 

 

CO-INVESTMENT UNIT SUBSCRIPTION AGREEMENT 

This CO-INVESTMENT UNIT SUBSCRIPTION AGREEMENT (this “Agreement”) is made as of [          ], 2008, by and between MAFS Acquisition Corp., a Delaware corporation (the “Company”), and MacAndrews & Forbes Holdings Inc., a Delaware corporation (the “Purchaser”).

WHEREAS, the Company has filed a registration statement on Form S-1 under the Securities Act of 1933, as amended (the “Securities Act”), with the Securities and Exchange Commission in connection with a proposed initial public offering (the “Initial Public Offering”) of 50,000,000 units (“Units”), each consisting of one share of common stock of the Company, par value $0.0001 per share (“Common Stock”), and one warrant (a “Warrant”) to
purchase one additional share of Common Stock for $7.50; 

WHEREAS, in connection with the Initial Public Offering, the Purchaser has entered into a letter agreement dated as of the date hereof with Citigroup Global Markets Inc., (the “Underwriter”), pursuant to which the Purchaser has agreed to place limit orders (or to cause one or more of its Affiliates to place limit orders) for up to $40,000,000 of shares of Common Stock (the “Aftermarket Shares”) for a period commencing two business days after the Company files a preliminary proxy statement relating to its Business Combination (as defined in the Company’s Amended and Restated Certificate of Incorporation) and ending on the business day immediately preceding the record date for the meeting of
stockholders at which the Business Combination is to be approved (for purposes of this Agreement, “Affiliate” has the meaning set forth in Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”), as in effect at the date hereof); and 

WHEREAS, the Company desires to commit to issue and sell, and the Purchaser desires to purchase and acquire (or to cause one or more of its Affiliates to purchase and acquire), Co-Investment Units (as defined herein), to the extent that the Purchaser and its Affiliates do not purchase in full $40,000,000 of the Aftermarket Shares, on the terms and conditions hereinafter set forth; 

NOW, THEREFORE, for and in consideration of the promises and mutual covenants set forth herein, the parties hereto agree as follows: 

ARTICLE I

COMMITMENT TO PURCHASE CO-INVESTMENT UNITS

1.1 Subject to and immediately prior to the consummation of a Business Combination, the Purchaser hereby agrees to purchase, or to cause one or more of its Affiliates to purchase, from the Company, and the Company hereby agrees to issue and sell to the Purchaser and/or such Affiliates of the Purchaser, the Applicable Number of units in the form attached hereto as Exhibit A (each a “Co-Investment Unit”) at a cash purchase price of $10.00 per Co-Investment Unit. The “Applicable Number” means a number (rounded up to the nearest whole number) equal to (x) the difference between $40,000,000 and the aggregate purchase price paid by the Purchaser and its Affiliates for

 

 

the Aftermarket Shares divided by (y) 10. Each Co-Investment Unit shall consist of one share of Common Stock and one Warrant. The terms of the Warrants are set forth in the Warrant Agreement dated as of [          ], 2008 (the “Warrant Agreement”), between the Company and American Stock Transfer and Trust Company, as warrant agent. With the exception of the transfer restrictions set forth in Article III hereof and in the Warrant Agreement, the Co-Investment Units shall be identical to the Units sold in the Initial Public Offering. The closing of the purchase and sale of the Co-Investment Units hereunder, including payment for and delivery of the Co-Investment Units, shall occur at
the offices of the Company immediately prior to, and subject to consummation of, the Business Combination. 

1.2 The Purchaser hereby agrees to cause any Affiliate of the Purchaser that purchases Co-Investment Units from the Company hereunder to become a party to this Agreement and to be bound by its terms and conditions, including the transfer restrictions set forth in Article III and the investment representations set forth in Article V.

ARTICLE II

PAYMENT OF PURCHASE PRICE

The purchase price for the Co-Investment Units shall be tendered in full at the closing by one or a combination of the following means: (a) wiring of immediately available United States funds to an account for the benefit of the Company, pursuant to wire instructions provided by the Company in advance of the closing; or (b) by delivery of a cashiers check to the Company of immediately available United States funds. 

ARTICLE III

LIMITATIONS ON TRANSFER

The Purchaser hereby agrees (and agrees to cause any Affiliate purchasing Co-Investment Units hereunder) not to assign, alienate, pledge, attach, sell or otherwise transfer or encumber (each, a “transfer”), directly or indirectly, any Co-Investment Units or any shares of Common Stock or Warrants included in (or that were previously part of) the Co-Investment Units (including the Common Stock issuable upon exercise of the Warrants) until 180 days following the date of the consummation of a Business Combination, except to a Permitted Transferee. Any transfers of such securities to a Permitted Transferee shall be made in accordance with applicable securities laws. Any transfer of securities pursuant to this Article III shall be subject to the condition that the Permitted Transferee has agreed in writing to be bound by the terms of this Article III. The Purchaser further acknowledges that the Warrants included in the Co-Investment Units shall be subject to the transfer restrictions set forth in the Warrant Agreement.

“Permitted Transferee” means (i) any of the Company’s officers, directors and employees, any Affiliates or Family Members of such individuals, MAFS Acquisition LLC (the “Sponsor”), the Purchaser, any Affiliates of the Sponsor, the Company or the Purchaser and any officers, directors, members and employees of the

 

 

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Sponsor, the Purchaser or such Affiliates, (ii) any charitable organization, (iii) any individual pursuant to a qualified domestic relations order, (iv) if the transferor is a corporation, partnership or limited liability company, any stockholder, partner or member of the transferor and (v) any individual or entity by virtue of laws or agreements governing descent or distribution upon the death or dissolution of the transferor. “Family Member” of a person means such person’s present spouse and/or domestic partner, parents, lineal ascendants or descendants or any siblings of any of the foregoing, any descendants of any sibling of such person, or any estate planning vehicle formed primarily for the benefit of such person or any of the foregoing persons. 

ARTICLE IV

RESTRICTIVE LEGENDS

All certificates representing the Co-Investment Units (and any underlying securities thereof) shall have endorsed thereon legends in substantially the following forms (in addition to any other legend which may be required by other agreements between the parties hereto): 

(a) “The Securities represented by this certificate have not been registered under the Securities Act of 1933, as amended. The Securities may not be sold, offered for sale, pledged or hypothecated in the absence of an effective registration statement as to the Securities under said act or an opinion of counsel satisfactory to the Company that such registration is not required.” 

(b) “The Securities represented by this certificate may not be not be sold, offered for sale, pledged or hypothecated, transferred or otherwise disposed of except in accordance with that certain Co-Investment Unit Subscription Agreement dated as of [  ], 2008, copies of which are available for inspection at the offices of the Company.” 

(c) Any legend required pursuant to the terms of the Warrant Agreement.

(d) Any legend required by state securities or blue sky laws or regulations. 

ARTICLE V

INVESTMENT REPRESENTATIONS

In connection with the purchase of the Co-Investment Units, the Purchaser represents to the Company the following: 

(a) The Purchaser is familiar with the Company’s business plans and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Co-Investment Units (and the securities underlying the Co-Investment Units). The Purchaser has been afforded the opportunity to ask questions of the executive officers and directors of the

 

 

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Company. The Purchaser understands that its investment in the Co-Investment Units involves a high degree of risk. The Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Co-Investment Units (and the securities underlying the Co-Investment Units). The Purchaser has such knowledge and expertise in financial and business matters, knows of the high degree of risk associated with investments generally and particularly investments in the securities of companies in the development stage such as the Company, is capable of evaluating the merits and risks of an investment in the Co-Investment Units, and is able to bear the economic risk of an investment in the Co-Investment Units in the amount contemplated hereunder. The Purchaser understands that there presently is no public market for
the Co-Investment Units (and the securities underlying the Co-Investment Units) and none is anticipated to develop in the foreseeable future. The Purchaser can afford a complete loss of its investment in the Co-Investment Units. The Purchaser is purchasing the Co-Investment Units for investment for its own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act.

(b) The Purchaser understands that the Co-Investment Units (and the securities underlying the Co-Investment Units) have not been registered under the Securities Act or any state securities law by reason of a specific exemption therefrom, and that the Company is relying on the truth and accuracy of, and the Purchaser’s compliance with, the representations and warranties and agreements of the Purchaser set forth herein to determine the availability of such exemptions and the eligibility of the Purchaser to acquire such Co-Investment Units, including, but not limited to, the bona fide nature of the Purchaser’s investment intent as expressed herein.

(c) The Purchaser understands that the Co-Investment Units (and the securities underlying the Co-Investment Units) must be held indefinitely unless the Co-Investment Units (and the securities underlying the Co-Investment Units) are subsequently registered under the Securities Act or an exemption from such registration is available. The Purchaser understands that the certificates evidencing the Co-Investment Units (and the securities underlying the Co-Investment Units) will be imprinted with a legend that prohibits the transfer of the Co-Investment Units (and the securities underlying the Co-Investment Units) unless the Co-Investment Units (and the securities underlying the Co-Investment Units) are registered or such registration is not required in the opinion of counsel for the Company.

(d) The Purchaser represents that it is an “accredited investor” as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act.

(e) The Purchaser has all necessary corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. All corporate action necessary to be taken by the Purchaser to authorize the execution, delivery and performance of this Agreement and all other agreements and instruments delivered by the Purchaser in connection with the transactions contemplated hereby has been duly and validly taken, and this Agreement has been duly executed and delivered by the Purchaser. This Agreement constitutes the valid, binding and

 

 

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enforceable obligation of the Purchaser, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar laws of general application now or hereafter in effect affecting the rights and remedies of creditors and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). The Purchaser’s obligations hereunder do not conflict with the organizational documents of the Purchaser or with any material contract by which the Purchaser or its property is bound, or any laws or regulations or decree, ruling or judgment of any court applicable to the Purchaser or its property.

(f) The Purchaser did not decide to enter into this Agreement as a result of any general solicitation or general advertising within the meaning of Rule 502(c) of the Securities Act.

(g) The Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Co-Investment Units or the fairness or suitability of the investment in the Co-Investment Units, nor have such authorities passed upon or endorsed the merits of the offering of the Co-Investment Units.

ARTICLE VI

COMPANY REPRESENTATIONS AND WARRANTIES

In connection with the issuance and sale of the Co-Investment Units, the Company represents to the Purchaser the following: 

The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and the Company has all necessary corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. All corporate action necessary to be taken by the Company to authorize the execution, delivery and performance of this Agreement and all other agreements and instruments delivered by the Company in connection with the transactions contemplated hereby has been duly and validly taken and this Agreement has been duly executed and delivered by the Company. This Agreement constitutes the valid, binding and enforceable obligation of the Company, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or
similar laws of general application now or hereafter in effect affecting the rights and remedies of creditors and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). The sale by the Company of the Co-Investment Units does not conflict with the certificate of incorporation or by-laws of the Company or any material contract by which the Company or its property is bound, or any federal or state laws or regulations or decree, ruling or judgment of any United States or state court applicable to the Company or its property.

 

 

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The Co-Investment Units and the Common Stock and Warrants underlying the Co-Investment Units have been duly authorized and, when issued, delivered and paid for in accordance with this Agreement, the Common Stock underlying such Co-Investment Units will be validly issued, fully paid and non-assessable and will be free and clear of all liens and claims. The shares of Common Stock issuable upon exercise of the Warrants have been duly authorized and, when issued, delivered and paid for in accordance with the terms of the Warrant Agreement, will be validly issued, fully paid and non-assessable and will be free and clear of all liens and claims.

ARTICLE VII

MISCELLANEOUS

7.1 Successors and Assigns. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer herein set forth, shall be binding upon Purchaser and Purchaser’s successors and assigns. The Purchaser shall be permitted to assign its obligation to purchase Co-Investment Units under Article I, in whole or in part, to any Affiliate of the Purchaser; provided that such Affiliate agrees in writing to become a party to this Agreement and to be bound by its terms and conditions; and provided further that the Purchaser shall unconditionally guarantee the obligations hereunder of any Affiliate that becomes a party to this Agreement.

7.2 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to the principles of conflicts of law thereof. The parties agree that any action brought by either party to interpret or enforce any provision of this Agreement shall be brought in, and each party agrees to, and does hereby, submit to the jurisdiction and venue of, the appropriate state or federal court for the district encompassing the Company’s principal place of business. 

7.3 Further Execution. The parties agree to take all such further actions as may reasonably be necessary to carry out and consummate this Agreement as soon as practicable, and to take whatever steps may be necessary to obtain any governmental approval in connection with or otherwise qualify the issuance of the securities that are the subject of this Agreement. 

7.4 Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes and merges all prior agreements or understandings, whether written or oral. This Agreement may not be amended, modified or revoked, in whole or in part, except by an agreement in writing signed by each of the parties hereto. 

7.5 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded

 

 

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from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms. 

7.6 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. This Agreement or any counterpart may be executed via facsimile or electronic mail transmission, and any such executed facsimile or electronic mail copy shall be treated as an original. 

7.7 Survival. The representations and warranties contained herein shall survive the delivery of, and the payment for, the Co-Investment Units. 

7.8 Waiver of Jury Trial. Each party hereto hereby irrevocably and unconditionally waives the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether based on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the transactions contemplated hereby, or the actions of Purchaser in the negotiation, administration, performance or enforcement hereof. 

7.9 Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given upon receipt.

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 

 

	
                         
 	
                         
 	
                         
 	
                        MAFS ACQUISITION CORP.
 
	
                         
 	
                         
 	
                          
 	
                         
 	
                        

By: 
 	
                          
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                        Barry F. Schwartz
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                        Chief Executive Officer and President
 

 

	
                         
 	
                         
 	
                         
 	
                        MACANDREWS & FORBES HOLDINGS INC.
 
	
                         
 	
                         
 	
                          
 	
                         
 	
                        

By: 
 	
                          
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Name: 
 	
                         
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                         
 

 

 

8

 

Exhibit A

Form of Co-Investment Unit

MAFS ACQUISITION CORP.

UNIT CONSISTING OF ONE SHARE OF COMMON STOCK AND ONE WARRANT

TO PURCHASE ONE SHARE OF COMMON STOCK

This Certifies that ____________________ is the owner of [______] Units.

Each Unit (“Unit”) consists of one share of common stock, par value $0.0001 (“Common Stock”), of MAFS Acquisition Corp., a Delaware corporation (the “Company”), and one warrant (a “Warrant”) entitling the holder to purchase one share of Common Stock for $7.50 per share (subject to adjustment). The terms of the Warrants are set forth in the Warrant Agreement, dated as of [  ], 2008, by and between the Company and American Stock Transfer & Trust Company, as Warrant Agent. Copies of the Warrant Agreement
are on file at the office of the Warrant Agent at 59 Maiden Lane, New York, New York 10038, and are available to any Warrant holder on written request and without cost. This Unit Certificate may be exchanged for certificates evidencing the shares of Common Stock and Warrants, respectively, included in the Units upon written request to the Company and without cost. 

Witness the signatures of the Company’s duly authorized officers.

The Securities represented by this certificate have not been registered under the Securities Act of 1933, as amended. The Securities may not be sold, offered for sale, pledged or hypothecated in the absence of an effective registration statement as to the Securities under said act or an opinion of counsel satisfactory to the Company that such registration is not required.

The Securities represented by this certificate may not be not be sold, offered for sale, pledged or hypothecated, transferred or otherwise disposed of except in accordance with that certain Co-Investment Unit Subscription Agreement dated as of [          ], 2008, copies of which are available for inspection at the offices of the Company.

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