SPONSORS CO-INVESTMENT UNITS SUBSCRIPTION AGREEMENT
EX-10.5 7 y36958exv10w5.htm EX-10.5: SPONSOR'S CO-INVESTMENT UNITS SUBSCRIPTION AGREEMENT EX-10.5
Exhibit 10.5
SPONSORS CO-INVESTMENT UNITS SUBSCRIPTION AGREEMENT
To the Board of Directors of
Global Consumer Acquisition Corp.:
Global Consumer Acquisition Corp.:
The undersigned hereby subscribes for and agrees to purchase 25,000 co-investment units (Committed Co-Investment Units) of Global Consumer Acquisition Corp. (the Corporation) at $10.00 per unit, consisting of 25,000 shares of the Corporations Common Stock (the Committed Co-Investment Common Stock) and 25,000 warrants, each to purchase one share of the Corporations Common Stock (the Committed Co-Investment Warrants) at $7.50 per share, for an aggregate purchase price of TWENTY-FIVE MILLION DOLLARS ($25,000,000) (the Committed Co-Investment Unit Purchase Price).
At any time prior to the consummation of the Business Combination (as defined below), the undersigned shall have the option (the Option), in its sole discretion, to purchase up to an additional 25,000 co-investment units (the Option Co-Investment Units and, together with the Committed Co-Investment Units, the Co-Investment Units) at $10.00 per unit, consisting of 25,000 shares of the Corporations Common Stock (the Option Co-Investment Common Stock and, together with the Committed Co-Investment Common Stock, the Co-Investment Common Stock) and 25,000 warrants, each to purchase one share of the Corporations Common Stock (the Option Co-Investment Warrants and, together with the Committed Co-Investment Warrants, the Co-Investment Warrants) at $7.50 per share, for an aggregate purchase price of up to TWENTY-FIVE MILLION DOLLARS ($25,000,000) (the Option Co-Investment Unit Purchase Price).
The payment and issuance of the Co-Investment Units shall occur immediately prior to the consummation of the Corporations initial acquisition of one or more assets or operating businesses with a transaction value of at least 80% of our net assets held in trust (net of taxes and amounts disbursed for working capital purposes and excluding the amount held in the trust account representing a portion of the underwriters discount) at the time of the acquisition through a merger, capital stock exchange, asset or stock acquisition, exchangeable share transaction, joint venture or other similar business combination, pursuant to which we will require that a majority of the shares of common stock of the Corporation voted by the public stockholders are voted in favor of the acquisition and less than 30% of the public stockholders both exercise their conversion rights and vote against the proposed acquisition (the Business Combination).
Immediately prior to the consummation of a Business Combination, the undersigned shall deliver the Committed Co-Investment Unit Purchase Price and Option Co-Investment Unit Purchase Price, if applicable, to the Corporation. In the event that the Company fails to (i) consummate it is initial public offering (IPO) within one (1) year from the date hereof or (ii) consummate a Business Combination within 24 months from the consummation of its IPO, the
undersigneds obligation to purchase the Co-Investment Units shall be null and void and of no further force and effect.
The undersigned represents and warrants that it has been advised that the Co-Investment Units (including the Co-Investment Common Stock, Co-Investment Warrants and underlying shares of common stock) have not been registered under the Securities Act; that it is acquiring each of the Co-Investment Units (including the Co-Investment Common Stock, Co-Investment Warrants and underlying shares of common stock) for its account for investment purposes only; that it has no present intention of selling or otherwise disposing of any of the Co-Investment Units (including the Co-Investment Common Stock, Co-Investment Warrants and underlying shares of common stock) in violation of the securities laws of the United States; that it is an accredited investor as defined by Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended; and that it is familiar with the proposed business, management, financial condition and affairs of the Corporation.
This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to the principles of conflicts of law thereof.
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.
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The undersigned hereby represents and warrants that it will execute all documents that are necessary or desirable in connection with the Corporations initial public offering.
HAYGROUND COVE ASSET MANAGEMENT, LLC | ||||
By: | ||||
Name: | Jason N. Ader | |||
Dated: July 20, 2007 | Title: | Authorized Person | ||
Accepted and Agreed on this
20th day of July 2007:
20th day of July 2007:
GLOBAL CONSUMER ACQUISITION CORP.
By: | ||||
Name: Andrew Nelson Title: Treasurer, Controller, Assistant Secretary |