Document:

ESCROW AGREEMENT

ESCROW AGREEMENT, dated as of _________ __, 2012 (“Agreement”), by and among ANDINA ACQUISITION CORPORATION, a Cayman Islands company (“Company”), CHILD’S TRUST F/B/O FRANCESCA WEIL U/A DATED MARCH 4, 2010, CHILD’S TRUST F/B/O ALEXANDER WEIL U/A DATED MARCH 4, 2010, CHILD’S TRUST F/B/O BENJAMIN LUKE WEIL U/A DATED MARCH 4, 2010, B. LUKE WEIL,  JULIO A. TORRES, MARTHA L. BYORUM, CAPITAL ADVISORY PARTNERS, L.A., EDUARDO ROBAYO, LWEH LLC, ROBERT STEVENS, and ERIC CARRERA (collectively “Initial Shareholders”) and CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York corporation (“Escrow Agent”).

WHEREAS, the Company has entered into an Underwriting Agreement, dated as of _________ __, 2012 (“Underwriting Agreement”), with EarlyBirdCapital, Inc. (“EBC”) acting as representative of the several underwriters (collectively, the “Underwriters”), pursuant to which, among other matters, the Underwriters have agreed to purchase 4,000,000 units (“Units”) of the Company, plus an additional 600,000 Units if the Underwriters exercise their over-allotment option in full.  Each Unit consists of one ordinary share of the Company, par value $0.0001 per share (“Ordinary Shares”), and one Warrant to purchase one Ordinary Share, all as more fully described in the Company’s final Prospectus, dated _________ __, 2012 (“Prospectus”) comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-178061) under the Securities Act of 1933, as amended (“Registration Statement”), declared effective on _________ __, 2012 (“Effective Date”).

WHEREAS, the Initial Shareholders have agreed as a condition of the sale of the Units to deposit their Ordinary Shares, as set forth opposite their respective names in Exhibit A attached hereto (collectively “Escrow Shares”), in escrow as hereinafter provided.

WHEREAS, the Company and the Initial Shareholders 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 Initial Shareholders 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 Shares.  On or before the Effective Date, each of the Initial Shareholders shall deliver to the Escrow Agent certificates representing such Initial Shareholder’s respective Escrow Shares, to be held and disbursed subject to the terms and conditions of this Agreement.  Each Initial Shareholder acknowledges that the certificate representing such Initial Shareholder’s Escrow Shares is legended to reflect the deposit of such Escrow Shares under this Agreement.

  

  

 

3.           Disbursement of the Escrow Shares.

3.1           The Escrow Agent shall hold the Escrow Shares during the period (the “Escrow Period”) commencing on the date hereof and ending one year after the consummation of a Business Combination (as such term is defined in the Registration Statement).  The Company shall promptly provide notice of the consummation of a Business Combination to the Escrow Agent.  Upon completion of the Escrow Period, the Escrow Agent shall disburse such amount of each Initial Shareholder’s Escrow Shares (and any applicable share power) to such Initial Shareholder; 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 Shares; provided further, however, that if, within one year after the Company consummates a Business Combination, the Company (or the surviving entity) subsequently consummates a liquidation, merger, stock exchange or other similar transaction which results in all of the shareholders of such entity having the right to exchange their Ordinary Shares for cash, securities or other property, then the Escrow Agent will, upon receipt of a notice executed by the Chairman of the Board, Chief Executive Officer or other authorized officer of the Company, in form reasonably acceptable to the Escrow Agent, certifying that such transaction is then being consummated or such conditions have been achieved, as applicable, release the Escrow Shares to the Initial Shareholders.  The Escrow Agent shall have no further duties hereunder after the disbursement or destruction of the Escrow Shares in accordance with this Section 3.

3.2           Notwithstanding Section 3.1, if the Underwriters do not exercise their over-allotment option to purchase an additional 600,000 Units of the Company in full within 45 days of the date of the Prospectus (as described in the Underwriting Agreement), the Initial Shareholders agree that the Escrow Agent shall return to the Company for cancellation, at no cost, the number of Escrow Shares held by each Initial Shareholder determined by multiplying (a) the product of (i) 150,000, multiplied by (ii) a fraction, (x) the numerator of which is the number of Escrow Shares held by each Initial Shareholder, and (y) the denominator of which is the total number of Escrow Shares, by (b) a fraction, (i) the numerator of which is 600,000 minus the number of Ordinary Shares purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator of which is 600,000. The Company shall promptly provide notice to the Escrow Agent of the expiration or termination of the Underwriters’ over-allotment option and the number of Units, if any, purchased by the Underwriters in connection with their exercise thereof.

4.           Rights of Initial Shareholders in Escrow Shares.

4.1           Voting Rights as a Shareholder.  Subject to the terms of the Insider Letters described in Section 4.4 hereof and except as herein provided, the Initial Shareholders shall retain all of their rights as shareholders 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 Escrow Period, all dividends payable in cash with respect to the Escrow Shares shall be paid to the Initial Shareholders, 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.

  

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4.3           Restrictions on Transfer.  During the Escrow Period, the only permitted transfers of the Escrow Shares will be (i) if the Initial Shareholder is an entity, as a distribution to partners, members or stockholders of the Initial Shareholder upon the liquidation and dissolution of the Initial Shareholder, (ii) by bona fide gift to a member of the Initial Shareholder’s immediate family or to a trust, the beneficiary of which is the Initial Shareholder or a member of the Initial Shareholder’s immediate family for estate planning purposes, (iii) by virtue of the laws of descent and distribution upon death of the Initial Holder, (iv) pursuant to a qualified domestic relations order, (v) by certain pledges to secure obligations incurred in connection with purchases of the Company’s securities, (vi) by private sales at prices no greater than the price at which the Escrow Shares were originally purchased or (vii) to the Company for cancellation in connection with the consummation of a Business Combination, in each case, except for clause (vii), on the condition that such 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 provisions of the Insider Letter (as defined below) signed by the Initial Shareholder transferring the Escrow Shares relating to the escrow, voting and conversion of such Escrow Shares.

4.4           Insider Letters.  Each of the Initial Shareholders has executed a letter agreement with EBC 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 Initial Shareholder 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.

  

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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 Shares 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 Shares or it may deposit the Escrow Shares with the clerk of any appropriate court or it may retain the Escrow Shares 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 Shares 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 Initial Shareholders 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 Shares 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 Shares 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.

5.8           Waiver.  The Escrow Agent hereby waives any right of set-off or any other right, title, interest or claim of any kind (“Claim”) in, or to any distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof, by and between the Company and the Escrow Agent as trustee thereunder) 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.        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.  Each of the Initial Shareholders hereby acknowledges 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 EBC.

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:

Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

Attn:  Julio A. Torres and Eduardo Robayo, Co-Chief Executive Officers

If to a Shareholder, 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

  

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Attn:  Steven G. Nelson, Chairman

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

EarlyBirdCapital, Inc.

275 Madison Avenue, 27th Floor

New York, New York 10016

Attn:  David M. Nussbaum, Chairman

and:

Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attn:  David Alan Miller, Esq.

and:

Loeb & Loeb LLP

345 Park Avenue

New York, New York 10154

Attn:  Mitchell Nussbaum, 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 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 specified in the Prospectus.

[Signature Page Follows]

  

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

	  	
COMPANY:

	  	  
	  	
ANDINA ACQUISITION CORPORATION

	  	  
	
By:

	
 

	  	
Name:

	  	
Title:

	  	  
	  	
INITIAL SHAREHOLDERS:

	  	  
	  	
CHILD’S TRUST F/B/O FRANCESCA WEIL U/A DATED MARCH 4, 2010

	  	  
	
By:

	
 

	  	
Name:

	 	
Title:

	  	  
	  	
CHILD’S TRUST F/B/O ALEXANDER WEIL U/A DATED MARCH 4, 2010

	  	  
	
By:

	
 

	  	
Name:

	  	
Title:

	  	  
	  	
CHILD’S TRUST F/B/O BENJAMIN LUKE WEIL U/A DATED MARCH 4, 2010

	  	  
	
By:

	
 

	  	
Name:

	  	
Title:

	 	 
	  	
 

	  	
B. Luke Weil

	 	 
	  	  
	  	
Julio A. Torres

  

7

 

	  	
 

	  	
Martha L. Byorum

	  	  
	  	
CAPITAL ADVISORY PARTNERS L.A.

	 	 
	
By:

	
 

	  	
Name:

	  	
Title:

	 	 
	  	
 

	  	
Eduardo Robayo

	  	  
	  	
LWEH LLC

	  	  
	
By:

	
 

	  	
Name:

	  	
Title:

	 	 
	  	
 

	  	
Robert Stevens

	 	 
	  	
 

	  	
Eric Carrera

	  	  
	  	
ESCROW AGENT:

	  	  
	  	
CONTINENTAL STOCK TRANSFER

	  	
& TRUST COMPANY

	  	  
	
By:

	
 

	  	
Name:

	  	
Title:

  

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EXHIBIT A

	
Name and Address of 

Initial Shareholder     

	  	
Number

of Shares

	  	
Certificate Number

	  	
Date of 

Insider Letter

	
Child Trust f/b/o Francesca Weil u/a dated March 4, 2010

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
287,000

	  	
1

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
Child Trust f/b/o Alexander Weil u/a dated March 4, 2010

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
287,000

	  	
2

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
Child Trust f/b/o Benjamin Luke Weil  u/a dated March 4, 2010

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
184,000

	  	
3

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
B. Luke Weil

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
184,000

	  	
4

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
Julio A. Torres

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
40,000

	  	
5

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
Martha L. Byorum

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
40,000

	  	
6

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
Capital Advisory Partners L.A

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
40,000

	  	
7

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
Eduardo Robayo

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
40,000

	  	
8

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
LWEH LLC

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
40,000

	  	
9

	  	
_________ __, 2012

  

  

 

	
Robert Stevens

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
6,000

	  	
10

	  	
_________ __, 2012

	  	  	  	  	  	  	  
	
Eric Carrera

c/o Andina Acquisition Corporation

Carrera 10 No. 28-49

Torre A. Oficina 20-05

Bogota, Colombia

	  	
2,000

	  	
11

	  	
_________ __, 2012STOCK PURCHASE PLAN

 

This Stock Purchase Plan (the “Purchase Plan”) is entered into on __________ __, 2012 (the “Commencement Date”) by and between ___________ (“Broker”) and Andina Acquisition Corporation (the “Company”).  This Purchase Plan relates to the purchase, on a “not held” basis, of ordinary shares issued by the Company (the “Shares”), and is intended to comply with the provisions of Rule 10b5-1 (“Rule 10b5-1”).

	 	
A)

	
Purchase Plan Requirements

 

	
  

	
1.

	
On any day on which there is trading on the [OTC Bulletin Board][Nasdaq Capital Markets] (subject to the purchase instructions in Appendix A), Broker will act as the Company’s exclusive agent to repurchase Shares in accordance with Appendix A.

 

	
  

	
2.

	
Purchases made by Broker pursuant to this Purchase Plan shall be made only in accordance with Appendix A, and shall be made at the prevailing market prices, pursuant to the limitations stated in Appendix A, in open-market transactions.

 

	
  

	
3.

	
Broker shall be entitled to a commission of $__ per share.

 

	
  

	
4.

	
Purchases of the Shares under this Purchase Plan shall be made outside the provisions of Rule 10b-18 as promulgated under the Securities Exchange Act of 1934, as amended (“Rule 10b-18”).

 

	 	
B)

	
The Company’s Representations, Warranties and Covenants

 

The Company makes the following representations and warranties, each of which shall continue while this Purchase Plan is in effect and will survive the termination of this Purchase Plan:

 

	
  

	
1.

	
At the time of the Company’s execution of this Purchase Plan, the Company is not aware of any material, non-public information with respect to the Company or the Shares.  The Company is entering into this Purchase Plan in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 or other applicable securities laws.

 

	
  

	
2.

	
Purchases of Shares under this Purchase Plan have been duly authorized by the Company and are not prohibited by any legal, regulatory or contractual restriction or undertaking binding on the Company.  The Company will inform Broker as soon as possible of any subsequent legal or contractual restrictions affecting the execution of the Purchase Plan by Broker or the Company and of the occurrence of any event that would cause the Purchase Plan to be suspended or to end as contemplated in Section D and Section F.

 

	
  

	
3.

	
The Company agrees not to enter into or alter any corresponding or hedging transaction with respect to the Shares while this Purchase Plan remains in effect.

 

	
  

	
4.

	
The Company acknowledges and agrees that the Purchase Plan is a “securities contract,” as such term is defined in Section 741(7) of Title 11 of the United States Code, as it may be amended (the “Bankruptcy Code”), entitled to all of the protections given such contracts under the Bankruptcy Code.

 

	
  

	
5.

	
This Purchase Plan constitutes the Company’s legal, valid and binding obligation enforceable against the Company in accordance with its terms.

 

	
  

	
6.

	
The Company acknowledges and agrees that purchases of Shares by Broker pursuant to Appendix A will not be made in accordance with the provisions of Rule 10b-18 and that, in accordance with Section A(4), above, Broker shall nevertheless make purchases of Shares as provided in Appendix A without compliance with any of the requirements of Rule 10b-18.

 

  

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7.

	
The Company will promptly notify Broker of the date the Company announces an initial business combination.

 

	 	
C)

	
Purchase Instructions

 

See Appendix A.

 

	 	
D)

	
Suspension of Purchases

 

The Company acknowledges and agrees that Broker may suspend purchases under this Purchase Plan in the event that:

 

	
  

	
1.

	
Broker determines that it is prohibited from purchasing Shares by a legal, contractual or regulatory restriction applicable to it or its affiliates or to the Company and its affiliates (other than any such restriction relating to the Company’s possession or alleged possession of material nonpublic information about the Company or the Shares).

 

	
  

	
2.

	
Broker determines, in its sole discretion, that a market disruption has occurred, beyond the control of Broker that would materially interfere with Broker’s ability to carry out the terms of this Purchase Plan.

 

	
  

	
3.

	
Trading in the Shares is halted or suspended.

 

	
  

	
4.

	
If any purchases cannot be executed as required by this Purchase Plan due to any of the events specified in Sections (D)(1), (D)(2) or (D)(3), Broker shall effect such purchases as promptly as practicable after the cessation or termination of such disruption, applicable restriction or other event.

 

	 	
E)

	
Modification of this Purchase Plan

 

Any modification of this Purchase Plan by the Company will be made in good faith and not as part of a scheme to evade the prohibitions of Rule 10b5-1, and only with Broker’s written consent.  In particular, the Company agrees that the Company will not modify or propose to modify this Purchase Plan at any time that the Company is aware of any material non-public information about the Company and/or the Shares and that the Company will be deemed to repeat its representations in Section B at the time of such modification.  Termination of this Purchase Plan by the Company pursuant to Section F(1)(ii) shall not be deemed a modification of this Purchase Plan.

 

	 	
F)

	
Termination of this Purchase Plan

 

	
  

	
1.

	
This Purchase Plan will terminate upon the earliest of one of the following events:

 

	
  

	
i.

	
The terms outlined in Appendix A have been met;

 

	
  

	
ii.

	
Broker is prohibited by law or other governmental agency from engaging in purchasing activity as the Company’s agent under this Purchase Plan; and

 

	
  

	
iii.

	
The Company notifies the Broker of its termination.

 

	
  

	
2.

	
Any transaction pending at the time Broker receives a notice referred to in Section F shall be completed and Broker shall receive the commission set forth in Section A (3).

 

	 	
G)

	
Indemnification and Limitation on Liability

 

	
  

	
1.

	
The Company agrees to indemnify and hold harmless Broker (and its directors, officers, employees and affiliates) from and against all claims, liabilities, losses, damages and expenses (including reasonable attorney’s fees and costs) arising out of or attributable to:  (a) any material breach by the Company of this Purchase Plan (including the Company’s representations and warranties), and (b) any violation by the Company of applicable laws or regulations.  The Company will have no indemnification obligations in the case of gross negligence or willful misconduct of Broker or any other indemnified person. This indemnification will survive the termination of this Purchase Plan.

 

  

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2.

	
Notwithstanding any other provision herein, neither Broker nor the Company will be liable for:

 

	
  

	
i.

	
Special, indirect, punitive, exemplary, or consequential damages, or incidental losses or damages or any kind, even if advised of the possibility of such losses or damages or if such losses or damages could have been reasonably foreseen.

 

	
  

	
ii.

	
Any failure to perform or for any delay in performance that results from a cause or circumstance that is beyond its reasonable control, including but not limited to failure of electronic or mechanical equipment, strikes, failure of common carrier or utility systems, severe weather, market disruptions or other causes commonly known as “acts of God”.

 

	
  

	
3.

	
The Company acknowledges and agrees that Broker has not provided the Company with any tax, accounting or legal advice with respect to this Purchase Plan, including whether the Company would be entitled to any of the affirmative defenses under Rule 10b5-1.

 

	 	
H)

	
Governing Law

 

This Purchase Plan will be governed by, and construed in accordance with, the laws of the State of New York, without regard to such State’s conflict of laws rules.

 

	 	
I) 

	
Entire Agreement

 

This Purchase Plan (including any Annexes or Exhibits) constitutes the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes any previous or contemporaneous agreements, understandings, proposals or promises with respect thereto, whether written or oral.

 

This Purchase Plan and each party’s rights and obligations hereunder may not be assigned or delegated without the written permission of the other party and shall inure to the benefit of each party’s successors and permitted assigns, whether by merger, consolidation or otherwise.

 

	 	
J)

	
Notices

 

All required notifications under this Purchase Plan shall be made in writing (signed by facsimile) and confirmed by telephone to:

 

	
To Issuer:

 

Name: Andina Acquisition Corporation

Attention: Chairman of the Board

Address: 750 Lexington Ave., New York, 

NY 10022

Telephone:

Fax:

E-Mail:

	 	
Copies to:

 

Name: Graubard Miller

Attention: David Alan Miller, Esq.

Address: 405 Lexington Ave., 19th Fl., 

New York, NY 10174

Telephone: 212-818-8800

Fax: 212-818-8881

E-Mail: dmiller@graubard.com

   

  

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To Broker:

 

Primary Contact:

Alternate Contact #1:

Alternate Contact #2:

Address:

 

Telephone:

Fax:

E-Mail:

	 	
Copies to:

 

Name:

Address:

Telephone:

Fax:

E-mail:

 

	 	
K)

	
Counterparts

 

This Purchase Plan may be executed in two or more counterparts and by facsimile signature.

 

IN WITNESS WHEREOF, the undersigned have executed this Purchase Plan as of the date first written above.

	
ANDINA ACQUISITION CORPORATION

	 	
BROKER

	 	 	 
	
By:

	  	 	
By:

	  
	
Name:

	 	
Name:

	
Title:

	 	
Title:

	Account #	
   

	 	  

  

  

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Appendix A

 

	
Name of Buyer:

	  	
Name of Issuer:

	  	
Ticker:

	  

 

Purchase Instructions

*** INFORMATION ON GRID MUST BE TYPED ***

 

	(a) 	
Sale Period(s)

	(b) 	
Authorized Number of

Shares to be Purchased

 

	(c) 	
Authorized Dollar

Amount to be

Purchased

 

	(d) 	
Limit Price

(“Market” 

if a Market Order)

	Start Date	
End Date

	  	  	 	  	 	  
	TBD (See Special Instructions Below)(1)	
TBD (See

Special

Instructions

Below)(2)

	1,000,000 Shares (See Special Instructions Below)(3)	$9,700,000 (See Special Instructions Below)(4)	$9.70 (excluding commissions)
	 	  	  	 	  	 	  	 	  
	 	  	  	 	  	 	  	 	  
	 	  	  	 	  	 	  	 	  

   

	
o

	
Daily Purchases shall be executed pursuant to the safe harbor conditions of SEC Rule 10b-18, if available.

	
x

	
Plan Share Cap

Authorized Number of Shares to be Purchased Under Plan: Up to 1,150,000

	
x

	
Plan Dollar Cap

Authorized Dollar Amount to be Purchased Under Plan: $9.70

Inclusive of Commissions:  o YES   x NO

 

Comments and Special Instructions

1. The Start Date of the Purchase Plan will be the later of (i) 61 days after the effective date of the Registration Statement (as defined in the Purchase Plan) and (ii) the date purchases are permitted to be made pursuant to the rules and interpretations of the NASDAQ Capital Markets.  The Company will promptly notify Broker of the actual Start Date, if ever, once determined.

2. The End Date of the Purchase Plan will be the date the Company announces an initial business combination. The Company will promptly notify Broker of the End Date once it is determined.

 

  

5

  

 

3.  The Authorized Number of Shares That May Be Purchased may be increased up to an aggregate of 1,150,000 Shares as provided for in the Registration Statement.  The Company will promptly notify Broker if, and to what amount, the actual total number of Shares that may be purchased under the Purchase Plan has been increased.

 

4. The Authorized Dollar Amount to be Purchased may be increased proportionately with the number of Shares that may be purchased as described in note 3 above, up to a maximum of $11,155,000.  The Company will promptly notify Broker if, and to what amount, the actual maximum authorized dollar amount to be purchased under the Purchase Plan has been increased.

  

6

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