Unassociated Document


    EXHIBIT
      10.2

     

    SECURITIES
      ESCROW AGREEMENT

     

    SECURITIES
      ESCROW AGREEMENT, dated as of [     ], 2007 (the
“Agreement”) by and among FMG Acquisition
      Corp., a Delaware corporation (the
“Company”), the undersigned parties listed as Initial Stockholders on the
      signature page hereto (collectively, the “Initial Stockholders”) and Continental
      Stock Transfer & Trust Company, a New York corporation (the “Escrow
      Agent”).

     

    WHEREAS,
      the Company has entered into an Underwriting Agreement, dated [     ], 2007
      (“Underwriting Agreement”) with Pali Capital, Inc. (“Pali”) acting as
      representative of the several underwriters (collectively, the “Underwriters”),
      pursuant to which, among other matters, the Underwriters have agreed to
      purchase 4,500,000 units (not including the underwriters’ over-allotment
      option) (“Units”) of the Company. Each Unit consists of one share of the
      Company’s common stock, par value $.0001 per share (the “Common Stock”), and one
      warrant (“Warrant”), each Warrant to purchase one share of Common Stock, all as
      more fully described in the Company’s definitive Prospectus, dated [     ], 2007
      (“Prospectus”) comprising part of the Company’s Registration Statement on Form
      S-1 (File No. 333-[     ]) under the
      Securities Act of 1933, as amended (the “Registration Statement”), declared
      effective on [     ], 2007 (the
“Effective Date”);

     

    WHEREAS,
      the Initial Stockholders have agreed, as a condition of the Underwriters’
obligation to purchase the Units pursuant to the Underwriting Agreement and
      to
      offer them to the public, to deposit all of their shares of Common Stock, as
      set
      forth opposite their respective names in Exhibit A attached hereto (collectively
      the “Escrow Shares”), in escrow as hereinafter provided; 

     

    WHEREAS,
      the Company has entered into a Subscription Agreement with one of the Initial
      Stockholders (the “Initial Warrantholder”, and together with the Initial
      Stockholders, the “Initial Holders”), dated May 22, 2007 (the “Subscription
      Agreement”), pursuant to which the Initial Warrantholder has agreed to purchase
      1,250,000 warrants (the “Private Warrants”) in a private placement
      transaction;

     

    WHEREAS,
      the Initial Warrantholder has agreed as a condition of the sale of the Private
      Warrants to deposit the Private Warrants (together with the Escrow Shares,
      the
“Escrow Securities”), with the Escrow Agent as hereinafter provided;
      and

     

    WHEREAS,
      the Company and the Initial Holders desire that the Escrow Agent accept the
      Escrow Securities, in escrow, to be held and disbursed as hereinafter
      provided.

     

    IT
      IS
      AGREED:

     

    1.  Appointment
      of Escrow Agent.
      The
      Company and the Initial Holders 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, each of the Initial Holders shall deliver to the
      Escrow Agent certificates representing his, her or its respective Escrow
      Securities, to be held and disbursed subject to the terms and conditions of
      this
      Agreement. Each Initial Holder acknowledges and agrees that the certificates
      representing his or her Escrow Securities will bear a legend to reflect the
      deposit of such Escrow Securities under this Agreement.

     

    
      
        
        

      

      
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    3.  Disbursement
      of the Escrow Securities.
      

     

    3.1  The
      Escrow Agent shall hold the Escrow Shares and the Private Warrants until the
      termination of their respective Escrow Period (as defined below). In the case
      of
      the Escrow Shares, the “Escrow Period” shall be the period beginning on the date
      the certificates representing the Shares are deposited with the Escrow Agent
      and
      ending on the date that is twelve (12) months following the consummation of
      the
      initial Business Combination (as such term is defined in the Registration
      Statement). In the case of the Private Warrants, the “Escrow Period” shall be
      the period beginning on the date the certificates representing the Private
      Warrants are deposited with the Escrow Agent and ending on the 90th day after
      the date of the consummation of the initial Business Combination. On the
      termination date of the applicable Escrow Period, the Escrow Agent shall, upon
      written instructions from each Initial Holder, disburse each of the Initial
      Holders’ Escrow Securities to such Initial Holder; 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
      the
      Escrow Agent shall promptly destroy the certificates representing the Escrow
      Securities; provided further, that if, after the Company consummates a Business
      Combination (as such term is
      defined in the Registration Statement), it (or the surviving entity)
      subsequently consummates a liquidation, merger, stock exchange or other similar
      transaction which results in all of its stockholders of such entity having
      the
      right to exchange their shares of Common Stock for cash, securities or other
      property, then the Escrow Agent will, upon receipt of a notice, executed by
      the
      Chairman, Chief Executive Officer or Chief Financial Officer of the Company,
      in
      form reasonably acceptable to the Escrow Agent, certifying that such transaction
      is then being consummated, release the Escrow Securities to the Initial Holders
      so that they can similarly participate. 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 Initial Holders in Escrow Securities.

     

    4.1  Voting
      Rights as a Stockholder.
      Subject
      to the terms of the Insider Letters described in Section 4.4 hereof and except
      as herein provided, the Initial Stockholders shall 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 Securities.
      During
      the Escrow Period, all dividends payable in cash with respect to the Escrow
      Securities shall be paid to the Initial Stockholders, but all dividends payable
      in stock 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 Securities” shall be deemed to include the Non-Cash Dividends
      distributed thereon, if any.

     

    4.3  Restrictions
      on Transfer.
      During
      the Escrow Period, no sale, transfer or other disposition may be made of any
      or
      all of the Escrow Securities except (i) by gift to a member of Initial Holders’
immediate family or to a trust or other entity, the beneficiary of which is
      an
      Initial Holder or a member of an Initial Holder’s immediate family, (ii) by
      virtue of the laws of descent and distribution upon death of any Initial Holder,
      (iii) pursuant to a qualified domestic relations order, (iv) to an entity that
      is an Initial Holder, (v) to any person or entity controlling, controlled by,
      or
      under common control with, an Initial Holder or (vi) with respect to an Initial
      Holder who is an individual, to an entity controlled by such Initial Holder;
      provided, however, that such permitted 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 the Initial
      Holder transferring the Escrow Securities. During the Escrow Period, the Initial
      Holders shall not pledge or grant a security interest in the Escrow Securities
      or grant a security interest in their rights under this Agreement.

     

    
      
        
        

      

      
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    4.4  Insider
      Letters.
      Each of
      the Initial Holders has executed a letter agreement with Pali and the Company,
      dated as of the Effective Date, and which is filed as an exhibit to the
      Registration Statement (“Insider Letter”), respecting the rights and obligations
      of such Initial Holder 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, as set forth on Exhibit B hereto.
      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 Initial Holders
      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.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    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 and approved by Pali, 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 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. Each of the
      parties hereby agrees that any action, proceeding or claim against it arising
      out of or relating in any way to this Agreement shall be brought and enforced
      in
      the courts of the State of New York or the United States District Court for
      the
      Southern District of New York, and irrevocably submits to such jurisdiction,
      which jurisdiction shall be exclusive. Each of the parties hereby waives any
      objection to such exclusive jurisdiction and that such courts represent an
      inconvenient forum.

     

    6.2  Third
      Party Beneficiaries.
      Each of
      the Initial Holders hereby acknowledges that the Underwriters, including,
      without limitation, Pali, are third party beneficiaries of this Agreement and
      this Agreement may not be modified or changed without the prior written consent
      of Pali.

     

    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 by private national courier
      service, or be mailed, certified or registered mail, return receipt requested,
      postage prepaid, and shall be deemed given when so delivered personally or,
      if
      sent by private national courier service, on the next business day after
      delivery to the courier, or, if mailed, two business days after the date of
      mailing, as follows:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Company, to:

    


    FMG
      Acquisition Corp.

    Four
      Forest Park

    Farmington,
      CT 06032

    Attn:
      Gordon Pratt, Chief Executive Officer and President 

     

    If
      to a
      Stockholder, to his address set forth in Exhibit A.

     

    and
      if to
      the Escrow Agent, to:

    


    Continental
      Stock Transfer & Trust Company

    17
      Battery Place

    New
      York,
      New York 10004

    Attn:
      [     ]

    Fax
      No.:
      [     ]

     

    A
      copy of
      any notice sent hereunder shall be sent to:

     

    Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Attn:
       Christopher Auguste, Esq.

     

    and:

    


    Pali
      Capital, Inc.

    650
      Fifth
      Avenue, 6th
      floor


    New
      York,
      New York 10019

    Attn:
      R.
      Michael Powell, Managing Director

     

    and:

     

    Ellenoff,
      Grossman & Schole LLP

    370
      Lexington Avenue

    New
      York,
      New York 10017

    Attn:
      Douglas S. Ellenoff, Esq.

     

    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 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  Waiver.
      Notwithstanding anything herein to the contrary, the Escrow Agent hereby waives
      any and all right, title, interest or claim of any kind (“Claim”) in or to any
      distribution of the Trust Account, and hereby agrees not to seek recourse,
      reimbursement, payment or satisfaction for any Claim against the Trust Account
      for any reason whatsoever.

     

    
      
        
        

      

      
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    6.9  Counterparts.
      This
      Agreement may be executed in several counterparts each one of which shall
      constitute an original and may be delivered by facsimile transmission and
      together shall constitute one instrument.

     

    [remainder
      of page intentionally left blank]

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    WITNESS
      the execution of this Agreement as of the date first above written.

     

    FMG
      ACQUISITION CORP.

     

    


     

    By:
      _________________________________________________

    Gordon
      Pratt, Chief Executive Officer and President

     

    


     

    CONTINENTAL
      STOCK TRANSFER & TRUST COMPANY

     

    By:________________________________

    Name:

    Title:

     

    


    
      	 	
              INITIAL
                STOCKHOLDERS:

               

              FMG
                INVESTORS LLC 

               

               

              By:
                _______________________________

                     Larry
                G. Swets, Jr.

                    
                Managing Member

               

               

            
	 	
              Address:Four
                Forest Park

              Farmington,
                CT 06032

            
	 	 
	 	
               

              ___________________________

              John
                Petry

            
	 	 
	 	
              ___________________________

              David
                E. Sturgess 

            
	 	 
	 	
              ___________________________

              Thomas
                D. Sargent

            
	 	 
	 	
              ___________________________

              James
                R. Zuhlke

            


    

     

    
      
        
        

      

      
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    EXHIBIT
      A

    


    
      	
               

              Investor

            	
              Investors
                Address

              and
                Facsimile Number

            
	 	 
	
              FMG
                Investors LLC

               

              Number
                of Shares: 1,045,000

              Number
                of Warrants: 1,250,000

            	
              Four
                Forest Park

              Farmington,
                CT 06032

              Attn:
                Larry G. Swets, Jr. 

              Facsimile
                Number: (860)
                674-1163

            
	 	 
	
              John
                Petry

               

              Number
                of Shares: 20,000

              Number
                of Warrants: 0

            	
              c/o
                FMG Acquisition Corp.

              Four
                Forest Park

              Farmington,
                CT 06032

              Attn:
                Gordon Pratt, CEO and President

              Facsimile
                Number: (860)
                674-1163

            
	 	 
	
              David
                E. Sturgess

               

              Number
                of Shares: 20,000

              Number
                of Warrants: 0

            	
              c/o
                FMG Acquisition Corp.

              Four
                Forest Park

              Farmington,
                CT 06032

              Attn:
                Gordon Pratt, CEO and President 

              Facsimile
                Number: (860)
                674-1163

            
	 	 
	
              Thomas
                D. Sargent

               

              Number
                of Shares: 20,000

              Number
                of Warrants: 0

            	
              c/o
                FMG Acquisition Corp.

              Four
                Forest Park

              Farmington,
                CT 06032

              Attn:
                Gordon Pratt, CEO and President Facsimile
                Number: (860)
                674-1163

            
	 	 
	
              James
                R. Zuhlke

               

              Number
                of Shares: 20,000

              Number
                of Warrants: 0

            	
              c/o
                FMG Acquisition Corp.

              Four
                Forest Park

              Farmington,
                CT 06032

              Attn:
                Gordon Pratt, CEO and President

              Facsimile
                Number: (860)
                674-1163

            


    

     

    
      
        
        

      

      
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      EXHIBIT B

     

     Escrow
      Agent Fees

     

    $1,800
      annually for acting agent escrow fee.

     

    Initial
      acceptance fee and first year agent fee to be paid at closing.

     

    
      
        
        

      

      
        9