Attached files

file filename
EX-99.4 - PRESS RELEASE, DATED FEBRUARY 6, 2018 - Purple Innovation, Inc.f8k0218ex99-4_purpleinnov.htm
EX-99.3 - PRO FORMA FINANCIAL STATEMENTS - Purple Innovation, Inc.f8k0218ex99-3_purpleinnov.htm
EX-99.2 - UNAUDITED FINANCIAL STATEMENTS OF PURPLE INNOVATION, LLC FOR THE NINE MONTHS END - Purple Innovation, Inc.f8k0218ex99-2_purpleinnova.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS OF PURPLE INNOVATION, LLC FOR THE YEARS ENDED DECEM - Purple Innovation, Inc.f8k0218ex99-1_purpleinnova.htm
EX-21.1 - SUBSIDIARIES - Purple Innovation, Inc.f8k0218ex21-1_purpleinnova.htm
EX-16.1 - LETTER FROM WITHUMSMITH+BROWN, PC - Purple Innovation, Inc.f8k0218ex16-1_purpleinnov.htm
EX-10.19 - BOARD OBSERVER AND INDEMNIFICATION AGREEMENT, DATED FEBRUARY 2, 2018, BETWEEN PU - Purple Innovation, Inc.f8k0218ex10-19_purpleinnov.htm
EX-10.18 - REGISTRATION RIGHTS AGREEMENT, DATED FEBRUARY 2, 2018, BETWEEN GLOBAL PARTNER AC - Purple Innovation, Inc.f8k0218ex10-18_purpleinnova.htm
EX-10.17 - AGREEMENT TO ASSIGN FOUNDER SHARES, DATED FEBRUARY 2, 2018, BETWEEN GLOBAL PARTN - Purple Innovation, Inc.f8k0218ex10-17_purpleinnova.htm
EX-10.16 - AGREEMENT TO ASSIGN SPONSOR WARRANTS, DATED FEBRUARY 2, 2018, BETWEEN GLOBAL PAR - Purple Innovation, Inc.f8k0218ex10-16_purpleinnova.htm
EX-10.15 - SUBSCRIPTION AGREEMENT, DATED FEBRUARY 1, 2018, BETWEEN GLOBAL PARTNER ACQUISITI - Purple Innovation, Inc.f8k0218ex10-15_purpleinnova.htm
EX-10.14 - REGISTRATION RIGHTS AGREEMENT, DATED FEBRUARY 2, 2018, BETWEEN GLOBAL PARTNER AC - Purple Innovation, Inc.f8k0218ex10-14_purpleinnova.htm
EX-10.13 - AGREEMENT TO ASSIGN SPONSOR WARRANTS, DATED FEBRUARY 2, 2018, BETWEEN GLOBAL PAR - Purple Innovation, Inc.f8k0218ex10-13_purpleinnova.htm
EX-10.12 - SUBSCRIPTION AND BACKSTOP AGREEMENT, DATED JANUARY 29, 2018, BETWEEN GLOBAL PART - Purple Innovation, Inc.f8k0218ex10-12_purpleinnova.htm
EX-10.11 - PARENT GUARANTY, DATED FEBRUARY 2, 2018, BETWEEN PURPLE INNOVATION, INC., COLISE - Purple Innovation, Inc.f8k0218ex10-11_purpleinnova.htm
EX-10.10 - CREDIT AGREEMENT, DATED FEBRUARY 2, 2018, BETWEEN PURPLE INNOVATION, LLC, COLISE - Purple Innovation, Inc.f8k0218ex10-10_purpleinnova.htm
EX-10.9 - FORM OF INDEMNIFICATION AGREEMENT - Purple Innovation, Inc.f8k0218ex10-9_purpleinnova.htm
EX-10.8 - PURPLE INNOVATION, INC. 2017 EQUITY INCENTIVE PLAN - Purple Innovation, Inc.f8k0218ex10-8_purpleinnova.htm
EX-10.7 - EMPLOYMENT AGREEMENT, DATED FEBRUARY 2, 2018, BETWEEN PURPLE INNOVATION, INC. AN - Purple Innovation, Inc.f8k0218ex10-7_purpleinnova.htm
EX-10.6 - EMPLOYMENT AGREEMENT, DATED FEBRUARY 2, 2018, BETWEEN PURPLE INNOVATION, INC. AN - Purple Innovation, Inc.f8k0218ex10-6_purpleinnova.htm
EX-10.4 - NON-COMPETITION AND NON-SOLICITATION AGREEMENT, DATED FEBRUARY 2, 2018, BY AND A - Purple Innovation, Inc.f8k0218ex10-4_purpleinnova.htm
EX-10.3 - REGISTRATION RIGHTS AGREEMENT, DATED FEBRUARY 2, 2018, BY AND AMONG PURPLE INNOV - Purple Innovation, Inc.f8k0218ex10-3_purpleinnova.htm
EX-10.2 - TAX RECEIVABLE AGREEMENT, DATED FEBRUARY 2, 2018, BY AND BETWEEN PURPLE INNOVATI - Purple Innovation, Inc.f8k0218ex10-2_purpleinnova.htm
EX-10.1 - EXCHANGE AGREEMENT, DATED FEBRUARY 2, 2018, BY AND BETWEEN PURPLE INNOVATION, IN - Purple Innovation, Inc.f8k0218ex10-1_purpleinnova.htm
EX-4.2 - FORM OF CLASS B COMMON STOCK CERTIFICATE - Purple Innovation, Inc.f8k0218ex4-2_purpleinnova.htm
EX-4.1 - FORM OF CLASS A COMMON STOCK CERTIFICATE - Purple Innovation, Inc.f8k0218ex4-1_purpleinnova.htm
EX-3.2 - AMENDED AND RESTATED BYLAWS - Purple Innovation, Inc.f8k0218ex3-2_purpleinnova.htm
EX-3.1 - AMENDED AND RESTATED CERTIFICATE OF INCORPORATION - Purple Innovation, Inc.f8k0218ex3-1_purpleinnova.htm
8-K - CURRENT REPORT - Purple Innovation, Inc.f8k0218_purpleinnovation.htm

Exhibit 10.5

 

LOCK-UP AGREEMENT

 

THIS LOCK-UP AGREEMENT (this “Agreement”) is made and entered into as of February 2, 2018, by and among (i) Global Partner Acquisition Corp., a Delaware corporation, which will be known after the consummation of the transactions contemplated by the Merger Agreement (as defined below) as “Purple Innovation, Inc.” (including any successor entity thereto, “Parent”), (ii) Purple Innovation, LLC, a Delaware limited liability company (including the Surviving Entity (as defined in the Merger Agreement) or any other successor entity thereto, the “Company”), (iii) Global Partner Sponsor I LLC, a Delaware limited liability company, solely in the capacity under the Merger Agreement as the Parent Representative (including any successor Parent Representative appointed in accordance therewith, the “Parent Representative”), and (iv) InnoHold, LLC, a Delaware limited liability company and the sole member of the Company (as defined below) (“Holder”). Capitalized terms used but not otherwise defined in this Agreement will have the meaning ascribed to such term in the Merger Agreement.

 

WHEREAS, on November 2, 2017, Parent, PRPL Acquisition, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Parent (“Merger Sub”), the Company, Holder and the Parent Representative entered into that certain Agreement and Plan of Merger (as amended from time to time in accordance with the terms thereof, the “Merger Agreement”), pursuant to which, subject to the terms and conditions thereof, Merger Sub will merge with and into the Company, with the Company continuing as the surviving entity (the “Merger”), and a result of which, among other matters, all of the issued and outstanding membership interests of the Company immediately prior to the consummation of the Merger (the “Closing”) shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, in exchange for the Merger Consideration, including the Equity Consideration consisting of Parent Class B Common Stock and Surviving Entity Class B Units;

 

WHEREAS, on January 8, 2018, the parties to the Merger Agreement amended certain provisions therein;

 

WHEREAS, Holder, prior to giving effect to the Closing, owns all of the issued and outstanding membership interests of the Company; and

 

WHEREAS, pursuant to the Merger Agreement, and in view of the valuable consideration to be received by Holder thereunder, including the rights under the Registration Rights Agreement being entered into by and among Parent, Holder and the other parties thereto, on or about the date hereof in connection with Merger Agreement (the “Registration Rights Agreement”), the parties desire to enter into this Agreement, pursuant to which the Equity Consideration, consisting of equity securities of both Parent and the Company, to be issued to Holder (such Equity Consideration, together with any securities paid as dividends or distributions with respect to such securities or into which such securities are exchanged or converted, the Restricted Securities) shall become subject to limitations on disposition as set forth herein.

 

 

 

 

NOW, THEREFORE, in consideration of the premises set forth above, which are incorporated in this Agreement as if fully set forth below, and intending to be legally bound hereby, the parties hereby agree as follows:

 

1. Lock-Up Provisions.

 

(a) Holder hereby agrees not to, during the period commencing from the Closing and ending on the earliest of (x) the one (1) year anniversary of the date of the Closing, (y) the date on which the last sale price of the Parent Class A Common Stock (or any successor publicly traded common equity security) equals or exceeds $12.00 per share (as equitably adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Closing, and (z) the date after the Closing on which Parent consummates a liquidation, merger, share exchange or other similar transaction with an unaffiliated third party that results in all of Parent’s shareholders having the right to exchange their equity holdings in Parent for cash, securities or other property (the “Lock-Up Period”): (i) lend, offer, pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Restricted Securities, (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Restricted Securities, or (iii) publicly disclose the intention to do any of the foregoing, whether any such transaction described in clauses (i), (ii) or (iii) above is to be settled by delivery of Restricted Securities or other securities, in cash or otherwise (any of the foregoing described in clauses (i), (ii) or (iii), a “Prohibited Transfer”). The foregoing sentence shall not apply to the transfer of any or all of the Restricted Securities owned by Holder (A) by gift, will or intestate succession upon the death of Holder, (B) to any Permitted Transferee, (C) pursuant to a court order or settlement agreement related to the distribution of assets in connection with the dissolution of marriage or civil union or (D) pursuant to an underwritten public offering to which all of the parties to this Agreement shall have consented; provided, however, that in any of cases (A), (B) or (C) it shall be a condition to such transfer that the transferee executes and delivers to Parent, the Company and the Parent Representative an agreement stating that the transferee is receiving and holding the Restricted Securities subject to the provisions of this Agreement applicable to Holder, and there shall be no further transfer of such Restricted Securities except in accordance with this Agreement. As used in this Agreement, the term “Permitted Transferee” shall mean: (I) the members of Holder’s immediate family (for purposes of this Agreement, “immediate family” shall mean with respect to any natural person, any of the following: such person’s spouse, the siblings of such person and his or her spouse, and the direct descendants and ascendants (including adopted and step children and parents) of such person and his or her spouses and siblings), (II) any trust for the direct or indirect benefit of Holder or the immediate family of Holder, (III) if Holder is a trust, to the trustor or beneficiary of such trust or to the estate of a beneficiary of such trust, (IV) as a distribution to limited partners, shareholders, members of, or owners of similar equity interests in Holder or (V) to any affiliate of Holder. Holder further agrees to execute such agreements as may be reasonably requested by Parent, the Company or the Parent Representative that are consistent with the foregoing or that are necessary to give further effect thereto.

 

(b) If any Prohibited Transfer is made or attempted contrary to the provisions of this Agreement, such purported Prohibited Transfer shall be null and void ab initio, and Parent and the Company shall refuse to recognize any such purported transferee of the Restricted Securities as one of its equity holders for any purpose. In order to enforce this Section 1, Parent and the Company may impose stop-transfer instructions with respect to the Restricted Securities of Holder (and permitted transferees and assigns thereof) until the end of the Lock-Up Period.

 

(c) During the Lock-Up Period, each certificate evidencing any Restricted Securities shall be stamped or otherwise imprinted with a legend in substantially the following form, in addition to any other applicable legends:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP AGREEMENT, DATED AS OF FEBRUARY 2, 2018, BY AND AMONG THE ISSUER OF SUCH SECURITIES (THE “ISSUER”) AND THE ISSUER’S SECURITY HOLDER NAMED THEREIN, AS AMENDED. A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE ISSUER TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”

 

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(d) For the avoidance of any doubt, Holder shall retain all of its rights as an equity holder of Parent and the Company with respect to the Restricted Securities during the Lock-Up Period, including the right to vote any Restricted Securities that are entitled to vote.

 

2. Miscellaneous.

 

(a) Termination of Merger Agreement. Notwithstanding anything to the contrary contained herein, in the event that the Merger Agreement is terminated in accordance with its terms prior to the Closing, this Agreement and all rights and obligations of the parties hereunder shall automatically terminate and be of no further force or effect.

 

(b) Binding Effect; Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns. This Agreement and all obligations of Holder are personal to Holder and may not be transferred or delegated by Holder at any time other than pursuant to a transfer permitted by and in accordance with Section 1(a) above. Parent and the Company may freely assign any or all of its rights under this Agreement, in whole or in part, to any successor entity (whether by merger, consolidation, equity sale, asset sale or otherwise) without obtaining the consent or approval of Holder, but subject to obtaining the consent of the Parent Representative. If the Parent Representative is replaced in accordance with the terms of the Merger Agreement, the replacement Parent Representative shall automatically become a party to this Agreement as if it were the original Parent Representative hereunder.

 

(c) Third Parties. Nothing contained in this Agreement or in any instrument or document executed by any party in connection with the transactions contemplated hereby shall create any rights in, or be deemed to have been executed for the benefit of, any person or entity that is not a party hereto or thereto or a successor or permitted assign of such a party.

 

(d) Governing Law; Jurisdiction. This Agreement and any dispute or controversy arising out of or relating to this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflict of law principles thereof. All Proceedings arising out of or relating to this Agreement shall be heard and determined exclusively in any state or federal court located in the State of Delaware (or in any appellate courts thereof) (the “Specified Courts”). Each party hereto hereby (i) submits to the exclusive jurisdiction of any Specified Court for the purpose of any Proceeding arising out of or relating to this Agreement brought by any party hereto and (ii) irrevocably waives, and agrees not to assert by way of motion, defense or otherwise, in any such Proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the Proceeding is brought in an inconvenient forum, that the venue of the Proceeding is improper, or that this Agreement or the transactions contemplated hereby may not be enforced in or by any Specified Court. Each party agrees that a final judgment in any Proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party irrevocably consents to the service of the summons and complaint and any other process in any other action or proceeding relating to the transactions contemplated by this Agreement, on behalf of itself, or its property, by personal delivery of copies of such process to such party at the applicable address set forth in Section 2(g). Nothing in this Section 2(d) shall affect the right of any party to serve legal process in any other manner permitted by applicable law.

 

(e) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SEEK TO ENFORCE THAT FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 2(e).

 

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(f) Interpretation. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement. In this Agreement, unless the context otherwise requires: (i) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (ii) “including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding or succeeding such term and shall be deemed in each case to be followed by the words “without limitation”; (iii) the words “herein,” “hereto,” and “hereby” and other words of similar import in this Agreement shall be deemed in each case to refer to this Agreement as a whole and not to any particular section or other subdivision of this Agreement; and (iv) the term “or” means “and/or”. The parties have participated jointly in the negotiation and drafting of this Agreement. Consequently, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

 

(g) Notices. All notices, consents, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered (i) in person, (ii) by facsimile or other electronic means, with affirmative confirmation of receipt, (iii) one Business Day after being sent, if sent by reputable, nationally recognized overnight courier service or (iv) three (3) Business Days after being mailed, if sent by registered or certified mail, pre-paid and return receipt requested, in each case to the applicable party at the following addresses (or at such other address for a party as shall be specified by like notice):

 

If to the Parent Representative, to: With a copy to (which shall not constitute notice):
   
Global Partner Sponsor I LLP Ellenoff Grossman & Schole, LLP
c/o Ellenoff Grossman & Schole, LLP 1345 Avenue of the Americas, 11th Floor
1345 Avenue of the Americas, 11th Floor New York, NY 10105
New York, NY 10105 Attn: Douglas Ellenoff, Esq.
Attn: Douglas Ellenoff, Esq.   Stuart Neuhauser, Esq.
  Stuart Neuhauser, Esq. Fax: (212) 370-7889
Fax: (212) 370-7889 Tel: (212) 370-1300
Tel: (212) 370-1300 Email: ellenoff@egsllp.com
Email: ellenoff@egsllp.com   sneuhauser@egsllp.com
  sneuhauser@egsllp.com    
   
If to Parent or the Company after the Closing, to: With copies to (which shall not constitute notice):
   
Purple Innovation, Inc. Dorsey & Whitney LLP
123 E. 200 N. 111 S. Main St., Suite 2100
Alpine, UT 84004 Salt Lake City, UT 84111
Attn: Casey McGarvey Attn: Nolan S. Taylor
Email: casey@onpurple.com E-mail: taylor.nolan@dorsey.com
    Fax: (801) 933-7373
    Tel: (801) 933-7366
    and
    the Parent Representative (and its copy for notices hereunder)

  

If to Holder, to: InnoHold, LLC With a copy to (which shall not constitute notice):
   
123 E. 200 N. Dorsey & Whitney LLP
Alpine, UT 84004 111 S. Main St., Suite 2100
Attn: Casey McGarvey Salt Lake City, UT 84111
Email: casey@onpurple.com Attn: Nolan S. Taylor
    E-mail: taylor.nolan@dorsey.com
    Fax: (801) 933-7373
    Tel: (801) 933-7366

 

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(h) Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of Parent, the Company, the Parent Representative and Holder. No failure or delay by a party in exercising any right hereunder shall operate as a waiver thereof. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

 

(i) Severability. In case any provision in this Agreement shall be held invalid, illegal or unenforceable in a jurisdiction, such provision shall be modified or deleted, as to the jurisdiction involved, only to the extent necessary to render the same valid, legal and enforceable, and the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby nor shall the validity, legality or enforceability of such provision be affected thereby in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties will substitute for any invalid, illegal or unenforceable provision a suitable and equitable provision that carries out, so far as may be valid, legal and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision.

 

(j) Specific Performance. Holder acknowledges that its obligations under this Agreement are unique, recognizes and affirms that in the event of a breach of this Agreement by Holder, money damages will be inadequate and Parent, the Company and Parent Representative will have no adequate remedy at law, and agrees that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed by Holder in accordance with their specific terms or were otherwise breached. Accordingly, each of Parent, the Company and the Parent Representative shall be entitled to an injunction or restraining order to prevent breaches of this Agreement by Holder and to enforce specifically the terms and provisions hereof, without the requirement to post any bond or other security or to prove that money damages would be inadequate, this being in addition to any other right or remedy to which such party may be entitled under this Agreement, at law or in equity.

 

(k) Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled; provided, that, for the avoidance of doubt, the foregoing shall not affect the rights and obligations of the parties under the Merger Agreement or any Related Agreement, including the Registration Rights Agreement. Notwithstanding the foregoing, nothing in this Agreement shall limit any of the rights or remedies of Parent, the Company and the Parent Representative or any of the obligations of Holder under any other agreement between Holder and Parent, the Company or the Parent Representative or any certificate or instrument executed by Holder in favor of Parent, the Company or the Parent Representative, and nothing in any other agreement, certificate or instrument shall limit any of the rights or remedies of Parent, the Company or the Parent Representative or any of the obligations of Holder under this Agreement.

 

(l) Further Assurances. From time to time, at another party’s request and without further consideration (but at the requesting party’s reasonable cost and expense), each party shall execute and deliver such additional documents and take all such further action as may be reasonably necessary to consummate the transactions contemplated by this Agreement.

 

(m) Counterparts; Facsimile. This Agreement may also be executed and delivered by facsimile signature or by email in portable document format in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties have executed this Lock-Up Agreement as of the date first written above.

 

  Parent:
   
  Global Partner Acquisition Corp.
   
  By: /s/ Paul Zepf
  Name: Paul Zepf
  Title: Chief Executive Officer
   
  The Parent Representative:
   
  GLOBAL PARTNER SPONSOR I LLC,
solely in its capacity under the Merger Agreement as the Parent Representative
   
  By: /s/ Paul Zepf
  Name: Paul Zepf
  Title: Chief Executive Officer
   
  The Company:
   
  PURPLE INNOVATION, LLC
   
  By: /s/ Samuel D. Bernards
  Name: Samuel D. Bernards
  Title: Chief Executive Officer
   
  Holder:
   
  INNOHOLD, LLC
   
  By: /s/ Terry V. Pearce
  Name: Terry V. Pearce
  Title: Manager

 

 

 

[Signature Page to Lock-up Agreement]