Exhibit (d)(2)
EXCHANGE AGREEMENT
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THIS EXCHANGE AGREEMENT (the "Agreement") is effective as of the 28th day
of June, 2001 by and among PJ Acquisition Corp., a Delaware corporation (the
"Corporation") and the individuals listed on the signature page hereto (the
"Investor Group").
RECITALS:
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A. The Investor Group formed the Corporation for the purpose of acquiring,
through a tender offer and subsequent merger, all of the outstanding common
stock of PJ America, Inc. ("PJAM Common Stock").
B. The Investor Group collectively owns 1,740,789 shares of PJAM Common
Stock.
C. Concurrently with the execution of this Agreement, the Corporation and
PJ America, Inc. are executing an Agreement and Plan of Merger (the "Agreement
and Plan of Merger").
A. The Corporation desires to acquire all of the PJAM Common Stock owned
by the Investor Group in exchange for shares of the Corporation's common stock,
$.01 par value per share ("Corporation Common Stock").
AGREEMENT:
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NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements hereinafter contained, the parties hereto hereby agree as
follows:
1. Transfer of PJAM Stock to the Corporation. Subject to the terms and
conditions hereof, on the Closing Date (as hereinafter defined), each member of
the Investor Group agrees to transfer to the Corporation the number of shares of
PJAM Common Stock set forth opposite such person's name on Exhibit A attached
hereto and made a part hereof. All such shares of PJ Common Stock shall be
transferred free and clear of all claims, liens, obligations and encumbrances
whatsoever.
2. Transfer of Corporation Common Stock to the Investor Group. In
consideration for the shares of PJAM Common Stock assigned and set over to the
Corporation as provided in Section 1 hereof, on the Closing Date the Corporation
will issue and deliver to the Investor Group an aggregate of 100,002 shares of
Corporation Common Stock. The number of shares of Corporation Common Stock to be
issued to each member of the Investor Group is set forth on Exhibit B attached
hereto and made a part hereof.
3. Closing Date. The exchange provided for in Sections 1 and 2 above will
take place at the offices of Xxxxxxxxxx Xxxx & XxXxxxxx pllc, 0000 Xxxxx
Xxxxxxxx Xxxxx,
Xxxxxxxxxx, Xxxxxxxx 00000 immediately prior to the closing under the Agreement
and Plan of Merger. The day on which the closing occurs is herein referred to as
the "Closing Date".
4. Representations and Warranties of the Investor Group. Each member of
the Investor Group hereby represents and warrants to the Corporation, but only
insofar as such representations and warranties relate to such member of the
Investor Group, as follows:
(a) They now have, and on the Closing Date will have, good and
marketable title to the shares of PJAM Common Stock to be transferred by them to
the Corporation, free and clear of all adverse claims, liens, security
interests, restrictions and other encumbrances.
(b) This Agreement has been duly executed and delivered by each of
the undersigned and constitutes the legal, valid and binding obligation of each
member of the Investor Group, enforceable in accordance with its terms.
(c) The execution and delivery of this Agreement, and the
consummation of the transactions contemplated hereby, are not prohibited by any
agreement or instrument to which any member of the Investor Group is a party or
is bound, nor any judgment or order of any court or governmental department,
commission, board, agency or instrumentality.
5. Representations and Warranties of the Corporation. The Corporation
represents and warrants to each of member of the Investor Group as follows:
(a) The Corporation is a corporation duly organized and validly
existing under the laws of the State of Delaware and will be authorized to issue
200,000 shares of Corporation Common Stock, none of which is, or on the Closing
Date will be, issued and outstanding.
(b) The execution and delivery of this Agreement has been duly
authorized and approved by the Board of Directors of the Corporation and the
Corporation has the full power and authority to enter into this Agreement and to
perform its obligations hereunder.
6. Conditions Precedent to the Corporation's Obligations. All obligations
of the Corporation under this Agreement are subject to the fulfillment of each
of the following conditions on or before the Closing Date (any of which may, at
the Corporation's election, be waived, provided such waiver is not a violation
of applicable law):
(a) The representations and warranties of the Investor Group
contained herein shall be true on the Closing Date as though such
representations and warranties were made at that time.
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(b) All actions required to be taken pursuant to the terms of this
Agreement on or prior to the Closing Date shall have been taken.
7. Conditions Precedent to the Obligations of the Investor Group. The
obligations of each member of the Investor Group under this Agreement are
subject to fulfillment of each of the following conditions on or before the
Closing Date (any of which may, at the election of the members of the Investor
Group, be waived, provided such waiver is not a violation of applicable law):
(a) The representations and warranties of the Corporation contained
herein shall be true on the Closing Date as though such representations and
warranties were made at that time.
(b) The conditions precedent to the closing of the Merger (as
defined therein) pursuant to the Agreement and Plan of Merger shall have been
fully satisfied.
(c) All actions required to be taken pursuant to the terms of this
Agreement on or prior to the Closing Date shall have been taken.
8. Indemnification. The representations and warranties made by the
Investor Group and the Corporation herein shall survive the closing and the
delivery of the closing documents on the Closing Date. If any party(s) suffers
any liability, obligation, costs or expenses (including attorneys' fees) by
reason of the breach by any other party hereto of a representation or warranty
made by such party(s), the breaching party(s) shall indemnify such other
party(s) for, and hold such other party(s) harmless from, all of such
liabilities, obligations, costs and expenses.
9. Securities Matters. Each member of the Investor Group hereby represents
and warrants to the Corporation as follows:
(a) That such member of the Investor Group is acquiring the shares
of Corporation Common Stock for investment and not with a view to selling or
otherwise disposing of such shares of Corporation Common Stock.
(b) That such member of the Investor Group will not sell, offer for
sale, pledge or otherwise dispose of any of such shares of Corporation Common
Stock, or any interest therein, in the absence of an effective registration
statement relating to such shares under the Securities Act of 1933, as amended
("Securities Act"), or an opinion of counsel, in form and substance satisfactory
to the Corporation's counsel, to the effect that such transfer will not result
in the violation of the Securities Act.
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(c) That such member of the Investor Group understands that the
shares of Corporation Common Stock will not be registered under the Securities
Act and that such shares must be held indefinitely unless they are subsequently
registered under the Securities Act, or an exemption from such registration is
available.
(d) That such member of the Investor Group understands that the
Corporation will place a restrictive legend on all certificates representing the
shares of Corporation Common Stock to be acquired by the Investor Group to the
effect that the shares are not registered under the Securities Act and that they
cannot be disposed of unless they are registered under the Securities Act or
such transfer will not result in the violation of the Securities Act.
(e) That such member of the Investor Group recognizes the risk
inherent in acquiring the Corporation Common Stock and has the financial ability
to hold an illiquid investment for an indefinite period of time.
10. Termination. This Agreement shall terminate if the Agreement and
Plan of Merger terminates.
11. S Corporation. Prior to December 31, 2001, each member of the
Investor Group who is not a taxpayer which is permitted to be a shareholder of
an S corporation under the Internal Revenue Code of 1986, as amended, shall (i)
file such consents as are necessary to be a qualified shareholder or (ii)
transfer its shares of Corporation Common Stock to a taxpayer which is permitted
to be a shareholder of an S Corporation (and files such consents as are
necessary to be a qualified shareholder; if required).
12. Miscellaneous.
(a) Nonassignability. The rights of the parties under this Agreement
may not be assigned by any party hereto except with the prior written consent of
all of the other parties hereto.
(b) Entire Agreement. This Agreement constitutes the entire agreement
among the parties hereto with respect to the subject matter hereof and may not
be changed or amended except by a written instrument executed by all of the
parties hereto.
(c) Governing Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the state of Delaware without regard to its
conflict of laws rules.
(d) Headings. The headings contained in this Agreement are for
convenience of reference only and shall not control or affect the meaning or
construction of any of the provisions hereof.
(e) Binding Affect. This Agreement shall binding upon, and inure to
the benefit of, the parties hereto and their respective executors,
administrators, heirs, successors and assigns.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day
and year first above written.
/s/ Xxxxxxx X. Xxxxxxx /s/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxxx
/s/ Xxxxxxxx X. Xxxxxxx H Investment Company llp
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Xxxxxxxx X. Xxxxxxx, individually and as By: Xxxxxx X. Xxxx, General Partner
co-Trustee of the Xxxxxx X. Xxxxxxx Trust
u/a dated 9/1/96 and as co-Trustee of the By: /s/ Xxxxxx X. Xxxx
Xxxxxxxx X. Xxxxxxx Trust u/a dated 9/1/96 ---------------------------------
Title: General Partner
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/s/ Xxxxxx X. Xxxxxxx /s/ Xxxxxx X. Xxxx
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Xxxxxx X. Xxxxxxx, individually and as Xxxxxx X. Xxxx
co-Trustee of the Xxxxxx X. Xxxxxxx Trust
u/a dated 9/1/96 and as co-Trustee of the
Xxxxxxxx X. Xxxxxxx Trust u/a dated 9/1/96
/s/ Xxxxxxx X. Xxxxxxxx /s/ Xxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx Xxxx X. Xxxxxxxx
/s/ Xxxxxxx X. Xxxxxxxx /s/ Xxxxxxx X. Xxxxxxxxx
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Xxxxxxx X. Xxxxxxxx Xxxxxxx X. Xxxxxxxxx
Xxxxxxxx Family Limited Partnership
By: Xxxxxxx X. Xxxxxxxx, General Partner
By: /s/ Xxxxxxx X. Xxxxxxxx
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Title: General Partner
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/s/ Xxxxx X. Xxxxxx /s/ Xxxxxx Xxxxxxxxx
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Xxxxx X. Xxxxxx Xxxxxx Xxxxxxxxx, individually and as
custodian for Xxxxxxx Xxxxxxxxx
PJ Acquisition Corp. Xxxxxxxx Family Trust
By: /s/ Xxxxxxx X. Xxxxxxxx By: /s/ Xxxxx X. Xxxxxxxx
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Name: Xxxxxxx X. Xxxxxxxx Trustee
Title: President and CEO
/s/ Xxxxx Xxxxxxxx
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Xxxxx Xxxxxxxx, individually and as
trustee of the Xxxxxxx Xxxxxx Trust, the
Xxxxxxx Xxxxxx Trust and the Xxxxxxx
Xxxxxx Trust
/s/ Xxxx X. Xxxxxxxx
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Xxxx X. Xxxxxxxx, as custodian for
Xxxxxxx Xxxxxx and Xxxxxxx Xxxxxx
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Exhibit A
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Shares of PJ America, Relative Percentage
Inc.
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Xxxxxxx X. Xxxxxxx 50,000 2.872%
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Xxxxxx X. Xxxxxxx Trust u/a dated 9/1/96 100,000 5.745%
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Xxxxxxxx X. Xxxxxxx Trust u/a dated 9/1/96 100,000 5.745%
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Xxxxxxxx X. Xxxxxxx 5,000 0.287%
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Xxxxxxx X. Xxxxxxxx 242,464 13.928%
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Xxxxxxx X. Xxxxxxxx 207,164 11.901%
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Xxxxxx X. Xxxx 25,000 1.436%
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H Investment Company LLP 100,000 5.745%
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Xxxxxxx X. Xxxxxxxx 126,657 7.276%
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Xxxxxxxx Family Partnership 37,747 2.168%
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Xxxxxxxx Family Trust 3,659 0.210%
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Xxxx X. Xxxxxxxx 210,055 12.067%
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Xxxxx Xxxxxxxx 2,800 0.161%
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Xxxxx Xxxxxxxx, as Trustee of Xxxxxxx Xxxxxx Trust 325 0.019%
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Xxxxx Xxxxxxxx, as Trustee of Xxxxxxx Xxxxxx Trust 325 0.019%
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Xxxxx Xxxxxxxx, as Trustee of Xxxxxxx Xxxxxx Trust 325 0.019%
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Xxxx X. Xxxxxxxx, as Custodian for Xxxxxxx Xxxxxx 225 0.013%
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Xxxx X. Xxxxxxxx, as Custodian for Xxxxxxx Xxxxxx 10 0.0001%
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Xxxxx X. Xxxxxx 324,603 18.647%
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Xxxxxxx X. Xxxxxxxxx 188,430 10.824%
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Xxxxxx Xxxxxxxxx 13,000 0.747%
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Xxxxxx Xxxxxxxxx, as Custodian for Xxxxxxx Xxxxxxxxx 3,000 0.172%
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1,740,789 100%
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Exhibit B
Shares of PJ Acquisition Corp.
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Xxxxxxx X. Xxxxxxx 2,872
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Xxxxxx X. Xxxxxxx Trust u/a dated 9/1/96 5,745
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Xxxxxxxx X. Xxxxxxx Trust u/a dated 9/1/96 5,745
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Xxxxxxxx X. Xxxxxxx 287
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Xxxxxxx X. Xxxxxxxx 13,928
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Xxxxxxx X. Xxxxxxxx 11,901
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Xxxxxx X. Xxxx 1,436
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H Investment Company LLP 5,745
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Xxxxxxx X. Xxxxxxxx 7,276
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Xxxxxxxx Family Partnership 2,168
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Xxxxxxxx Family Trust 210
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Xxxx X. Xxxxxxxx 12,067
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Xxxxx Xxxxxxxx 161
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Xxxxx Xxxxxxxx, as trustee of Xxxxxxx Xxxxxx Trust 19
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Xxxxx Xxxxxxxx, as trustee of Xxxxxxx Xxxxxx Trust 19
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Xxxxx Xxxxxxxx, as trustee of Xxxxxxx Xxxxxx Trust 19
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Xxxx X. Xxxxxxxx, as custodian for Xxxxxxx Xxxxxx 13
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Xxxx X. Xxxxxxxx, as custodian for Xxxxxxx Xxxxxx 1
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Xxxxx X. Xxxxxx 18,647
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Xxxxxxx X. Xxxxxxxxx 10,824
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Xxxxxx Xxxxxxxxx 747
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Xxxxxx Xxxxxxxxx, as custodian for Xxxxxxx Xxxxxxxxx 172
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100,002
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XXX:637929.1
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