Exhibit 10.3
SECURITIES ESCROW AGREEMENT
SECURITIES ESCROW AGREEMENT, dated as of ____________ __, 2007
("Agreement"), by and among the parties listed under Existing Stockholders on
Exhibit A hereto (each an "Existing Stockholder" and collectively the "Existing
Stockholders"), INTER-ATLANTIC FINANCIAL, INC., a Delaware company ("the
Company"), and AMERICAN STOCK TRANSFER & TRUST COMPANY, a New York corporation
("Escrow Agent").
WHEREAS, the Company has entered into an Underwriting Agreement, dated
__________ __, 2007 ("Underwriting Agreement"), with ▇▇▇▇▇▇ ▇▇▇▇▇▇ & Co. Inc.
acting as representative ("Representative") of the several underwriters
(collectively, the "Underwriters"), pursuant to which, among other matters, the
Underwriters have agreed to purchase 7,500,000 (8,625,000 if the over-allotment
is exercised in full) units ("Units") of the Company (such offering of Units,
the "Offering"). Each Unit consists of one share of the Company's Common Stock,
par value $.0001 per share ("Share"), and one Warrant, each Warrant to purchase
one Share, all as more fully described in the Company's final Prospectus, dated
__________ __, 2007 ("Prospectus") comprising part of the Company's Registration
Statement on Form S-1 (File No. 333-140690) under the Securities Act of
1933, as amended ("Registration Statement"), declared effective on ___________
__, 2007 ("Effective Date").
WHEREAS, each Existing Stockholder has agreed as a condition of the
sale of the Units to deposit its Shares of the Company, as set forth opposite
its name in Exhibit A attached hereto (collectively "Escrow Shares"), in escrow
as hereinafter provided.
WHEREAS, certain of the Existing Stockholders (as set forth in
Exhibit B attached hereto) have agreed to purchase Warrants (the "Founders'
Warrants") in a private placement immediately prior to the consummation to the
offering and have further agreed as a condition of the sale of the Units to
deposit their respective Founders' Warrants, as set forth opposite each of their
respective names in Exhibit B attached hereto (collectively, the "Escrow
Warrants" and together with the Escrow Shares, the "Escrow Securities"), in
escrow as hereinafter provided.
WHEREAS, the Company and the Existing Stockholders desire that the
Escrow Agent accept the Escrow Shares, in escrow, to be held and disbursed as
hereinafter provided.
IT IS AGREED:
1. Appointment of Escrow Agent. The Company and the Existing Stockholders
hereby appoint the Escrow Agent to act in accordance with and subject to the
terms of this Agreement and the Escrow Agent hereby accepts such appointment and
agrees to act in accordance with and subject to such terms.
2. Deposit of Escrow Securities. On or before the Effective Date, the
Existing Stockholders shall deliver to the Escrow Agent a certificate, or
certificates, representing their respective Escrow Securities, to be held and
disbursed subject to the terms and conditions of this Agreement. The Existing
Stockholders acknowledge that the certificates representing their respective
Escrow Securities are legended to reflect the deposit of such Escrow Securities
under this Agreement.
3. Disbursement of the Escrow Securities. The Escrow Agent shall hold (a)
the Escrow Shares until one year from the date of consummation of a Business
Combination (as such term is defined in the Registration Statement) ("Share
Escrow Period") and (b) the Founders' Warrants until the Consummation of a
Business Combination (the "Warrant Escrow Period"), on which date it shall, upon
written instructions from an Existing Stockholder, disburse Escrow Shares or the
Founders' Warrants, as applicable, to such Existing Stockholder; provided,
however, that if the Escrow Agent is notified by the Company pursuant to Section
6.7 hereof that the Company is being liquidated at any time during the Escrow
Period, then immediately prior to the effectiveness of such liquidation, the
Escrow Agent shall promptly destroy the certificates representing the Escrow
Securities and the Escrow Securities shall no longer be considered issued and
outstanding securities of the Company. The Escrow Agent shall have no further
duties hereunder after the disbursement or destruction of the Escrow Securities
in accordance with this Section 3.
4. Rights of Holders of Escrow Securities.
4.1 Voting Rights as a Stockholder. Subject to the terms of the
Insider Letter described in Section 4.4 hereof and except as herein provided,
the Existing Stockholders shall with respect to the Escrow Shares retain all of
their rights as Stockholders of the Company during the Escrow Period, including,
without limitation, the right to vote such Shares.
4.2 Dividends and Other Distributions in Respect of the Escrow Shares.
During the Share Escrow Period, all dividends payable in cash with respect to
the Escrow Shares shall be paid to the Existing Stockholders, but all dividends
payable in shares or other non-cash property ("Non-Cash Dividends") shall be
delivered to the Escrow Agent to hold in accordance with the terms hereof. As
used herein, the term "Escrow Shares" shall be deemed to include the Non-Cash
Dividends distributed thereon, if any.
4.3 Restrictions on Transfer. During the Share Escrow Period and the
Warrant Escrow Period, as applicable, no sale, transfer or other disposition may
be made of any or all of the Escrow Securities except (i) by gift to an
immediate family member of an Existing Stockholder or to a trust, the
beneficiary of which is a member of the immediate family of an Existing
Stockholder (ii) by virtue of the laws of descent and distribution upon death of
any Existing Stockholder, or (iii) pursuant to a qualified domestic relations
order; provided, however, that such permissive transfers may be implemented only
upon the respective transferee's written agreement to be bound by the terms and
conditions of this Agreement and of the Insider Letter signed by an Existing
Stockholder transferring the Escrow Securities. During the Share Escrow Period
and the Warrant Escrow Period, as applicable, the Existing Stockholders shall
not pledge or grant a security interest in the Escrow Shares or Escrow Warrants,
as applicable, or grant a security interest in its rights under this Agreement.
4.4 Insider Letters. The Existing Stockholders have executed a letter
agreement with the Representative and the Company, dated as indicated on Exhibit
A hereto, and which is filed as an exhibit to the Registration Statement
("Insider Letter"), respecting the rights and obligations of such Existing
Stockholders in certain events, including but not limited to the liquidation of
the Company.
5. Concerning the Escrow Agent.
5.1 Good Faith Reliance. The Escrow Agent shall not be liable for any
action taken or omitted by it in good faith and in the exercise of its own best
judgment, and may rely conclusively and shall be protected in acting upon any
order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Escrow Agent), statement, instrument, report or other
paper or document (not only as to its due execution and the validity and
effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained) which is believed by the Escrow Agent to be
genuine and to be signed or presented by the proper person or persons. The
Escrow Agent shall not be bound by any notice or demand, or any waiver,
modification, termination or rescission of this Agreement unless evidenced by a
writing delivered to the Escrow Agent signed by the proper party or parties and,
if the duties or rights of the Escrow Agent are affected, unless it shall have
given its prior written consent thereto.
5.2 Indemnification. The Escrow Agent shall be indemnified and held
harmless by the Company from and against any expenses, including counsel fees
and disbursements, or loss suffered by the Escrow Agent in connection with any
action, suit or other proceeding involving any claim which in any way, directly
or indirectly, arises out of or relates to this Agreement, the
services of the Escrow Agent hereunder, or the Escrow Securities held by it
hereunder, other than expenses or losses arising from the gross negligence or
willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow
Agent of notice of any demand or claim or the commencement of any action, suit
or proceeding, the Escrow Agent shall notify the other parties hereto in
writing. In the event of the receipt of such notice, the Escrow Agent, in its
sole discretion, may commence an action in the nature of interpleader in an
appropriate court to determine ownership or disposition of the Escrow Securities
or it may deposit the Escrow Securities with the clerk of any appropriate court
or it may retain the Escrow Securities pending receipt of a final,
non-appealable order of a court having jurisdiction over all of the parties
hereto directing to whom and under what circumstances the Escrow Securities are
to be disbursed and delivered. The provisions of this Section 5.2 shall survive
in the event the Escrow Agent resigns or is discharged pursuant to Sections 5.5
or 5.6 below.
5.3 Compensation. The Escrow Agent shall be entitled to reasonable
compensation from the Company for all services rendered by it hereunder. The
Escrow Agent shall also be entitled to reimbursement from the Company for all
expenses paid or incurred by it in the administration of its duties hereunder
including, but not limited to, all counsel, advisors' and agents' fees and
disbursements and all taxes or other governmental charges.
5.4 Further Assurances. From time to time on and after the date
hereof, the Company and the Existing Stockholders shall deliver or cause to be
delivered to the Escrow Agent such further documents and instruments and shall
do or cause to be done such further acts as the Escrow Agent shall reasonably
request to carry out more effectively the provisions and purposes of this
Agreement, to evidence compliance herewith or to assure itself that it is
protected in acting hereunder.
5.5 Resignation. The Escrow Agent may resign at any time and be
discharged from its duties as escrow agent hereunder by its giving the other
parties hereto written notice and such resignation shall become effective as
hereinafter provided. Such resignation shall become effective at such time that
the Escrow Agent shall turn over to a successor escrow agent appointed by the
Company, the Escrow Securities held hereunder. If no new escrow agent is so
appointed within the 60 day period following the giving of such notice of
resignation, the Escrow Agent may deposit the Escrow Securities with any court
it reasonably deems appropriate.
5.6 Discharge of Escrow Agent. The Escrow Agent shall resign and be
discharged from its duties as escrow agent hereunder if so requested in writing
at any time by the other parties hereto, jointly, provided, however, that such
resignation shall become effective only upon acceptance of appointment by a
successor escrow agent as provided in Section 5.5.
5.7 Liability. Notwithstanding anything herein to the contrary, the
Escrow Agent shall not be relieved from liability hereunder for its own gross
negligence or its own willful misconduct.
6. Miscellaneous.
6.1 Governing Law. This Agreement shall for all purposes be deemed to
be made under and shall be construed in accordance with the laws of the State of
New York, without giving effect to conflicts of law principles that would result
in the application of the substantive laws of another jurisdiction.
6.2 Third Party Beneficiaries. The Existing Stockholders hereby
acknowledge that the Underwriters are third party beneficiaries of this
Agreement and this Agreement may not be modified or changed without the prior
written consent of the Representative.
6.3 Entire Agreement. This Agreement contains the entire agreement of
the parties hereto with respect to the subject matter hereof and, except as
expressly provided herein, may not be changed or modified except by an
instrument in writing signed by the party to the charged.
6.4 Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation thereof.
6.5 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the respective parties hereto and their legal representatives,
successors and assigns.
6.6 Notices. Any notice or other communication required or which may
be given hereunder shall be in writing and either be delivered personally or be
mailed, certified or registered mail, or by private national courier service,
return receipt requested, postage prepaid, and shall be deemed given when so
delivered personally or, if mailed, two days after the date of mailing, as
follows:
If to the Company, to:
Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇▇▇▇▇▇, Chief Executive Officer
If to an Existing Stockholder, to his address set forth in Exhibit A.
and if to the Escrow Agent, to:
American Stock Transfer & Trust Company
▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇, Vice President
A copy of any notice sent hereunder shall be sent to:
▇▇▇▇▇▇ ▇▇▇▇▇▇ & Co. Inc.
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Fax No.: (▇▇▇) ▇▇▇-▇▇▇▇
and:
DLA Piper US LLP
1251 Avenue of the Americas
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Esq.
Fax No.: (▇▇▇) ▇▇▇-▇▇▇▇
and:
▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP
1290 Avenue of the Americas
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇, Esq.
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
The parties may change the persons and addresses to which the notices
or other communications are to be sent by giving written notice to any such
change in the manner provided herein for giving notice.
6.7 Liquidation of the Company. The Company shall give the Escrow
Agent written notification of the liquidation and dissolution of the Company in
the event that the Company fails to consummate a Business Combination within the
time period(s) specified in the Prospectus.
6.8 Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.
IN WITNESS WHEREOF, this Securities Escrow Agreement has been duly executed
by the parties hereto as of the date first above written.
INTER-ATLANTIC FINANCIAL, INC.
By:
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Name:
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Title:
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EXISTING STOCKHOLDERS:
INTER-ATLANTIC MANAGEMENT SERVICES, INC.
By:
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Title:
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THE ▇▇▇▇▇▇▇ AND ▇▇▇▇▇ ▇▇▇▇▇▇▇ FAMILY
TRUST
By:
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Title:
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D. ▇▇▇▇▇ ▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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▇. ▇▇▇▇▇▇ Rise
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
AMERICAN STOCK TRANSFER & TRUST COMPANY
By:
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Name:
----------------------------------
Title:
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EXHIBIT A
Stock Date of
Name and Address of Number Certificate Insider
Existing Stockholder of Shares Number Letter
-------------------- --------- ----------- -------
Inter-Atlantic Management Services 4,688
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
D. ▇▇▇▇▇ ▇▇▇▇▇ 225,000
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ and Family 450,000
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇ 225,000
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
The ▇▇▇▇▇▇▇ and ▇▇▇▇▇ ▇▇▇▇▇▇▇ Family Trust 281,250
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ 225,000
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ 225,000
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇. ▇▇▇▇▇▇ Rise 119,531
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ 119,531
c/o Inter-Atlantic Financial, Inc.
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇