Document:

exhibit 10.1

 

July 5,
2005

QuadraPoint
Acquisition Corp.

900 North
Michigan Avenue

Chicago,
Illinois 60606

Ladenburg
Thalmann & Co. Inc.

590
Madison Avenue

34th
Floor

New York,
New York 10022

	
      
	
      
	
      Re:
	
      Initial
      Public Offering

Gentlemen:

The
undersigned officer and director of QuadraPoint Acquisition Corp. (“Company”),
in consideration of Ladenburg Thalmann & Co. Inc. (“Ladenburg”) entering
into a letter of intent (“Letter of Intent”) to underwrite an initial public
offering of the securities of the Company (“IPO”) and embarking on the IPO
process, hereby agrees as follows (certain capitalized terms used herein are
defined in paragraph 11 hereof):

1. In the
event that the Company fails to consummate a Business Combination within 18
months from the effective date (“Effective Date”) of the registration statement
relating to the IPO (or 24 months under the circum-stances described in the
prospectus relating to the IPO), the undersigned will, as soon as reasonably
practicable, (i) cause the Trust Fund (as defined in the Letter of Intent) to be
liquidated and distributed to the holders of IPO Shares and (ii) take all
reasonable actions within his power to cause the Company to liquidate. The
undersigned hereby waives any and all right, title, interest or claim of any
kind in or to any distribution of the Trust Fund and any remaining net assets of
the Company as a result of such liquidation (“Claim”) and hereby waives any
Claim the undersigned may have in the future as a result of, or arising out of,
any contracts or agreements with the Company and will not seek recourse against
the Trust Fund for any reason whatsoever. In the event of the liquidation of the
Trust Fund, the undersigned agrees to indemnify and hold harmless the Company,
severally pro rata with Peter L. Venetis and Brian B. Boorstein based on the
number of shares of Common Stock of the Company beneficially owned by the
Insiders prior to the IPO, against any and all loss, liability, claims, damage
and expense whatsoever (including, but not limited to, any and all legal or
other expenses reasonably incurred in investigating, preparing or defending
against any litigation, whether pending or threatened, or any claim whatsoever)
which the Company may become subject as a result of any claim by any vendor or
other person who is owed money by the Company for services rendered or products
sold or contracted for, or by any target business, but only to the extent
necessary to ensure that such loss, liability, claim, damage or expense does not
reduce the amount in the Trust Fund.

2. In order
to minimize potential conflicts of inter-est which may arise from multiple
affiliations, the undersigned agrees to present to the Company for its
consideration, prior to presentation to any other person or entity, any suitable
opportunity to acquire an operating business, until the earlier of the
consummation by the Company of a Business Combination, the liquidation of the
Company or until such time as the undersigned ceases to be an officer or
director of the Company, subject to any pre-existing fiduciary and contractual
obligations the undersigned might have.

3. The
undersigned acknowledges and agrees that the Company will not consummate any
Business Combination which involves a company which is affiliated with any of
the Insiders unless
the Company obtains an opinion from an independent investment banking firm
reasonably acceptable to Ladenburg that the business combination is fair to the
Company’s stockholders from a financial perspective.

 

4. Neither
the undersigned, any member of the family of the undersigned, nor any affiliate
(“Affiliate”) of the undersigned will be entitled to receive and will not accept
any compensation for services rendered to the Company prior to or in connection
with the consummation of the Business Combination; provided that the undersigned
shall be entitled to reimbursement from the Company for his out-of-pocket
expenses incurred in connection with seeking and consummating a Business
Combination. 

 

5. Neither
the undersigned, any member of the family of the undersigned, nor any Affiliate
of the undersigned will be entitled to receive or accept a finder’s fee or any
other compensation in the event the undersigned, any member of the family of the
undersigned or any Affiliate of the undersigned originates a Business
Combination. 

6. The
undersigned agrees to be the Chairman of the Board of the Company until the
earlier of the consummation by the Company of a Business Combination or the
liquidation of the Company. The undersigned’s biographical information furnished
to the Company and Ladenburg and attached hereto as Exhibit A is true and
accurate in all respects, does not omit any material information with respect to
the undersigned’s background and contains all of the information required to be
disclosed pursuant to Item 401 of Regulation S-K, promulgated under the
Securities Act of 1933. The undersigned’s Questionnaire furnished to the Company
and Ladenburg and annexed as Exhibit B hereto is true and accurate in all
respects. The undersigned represents and warrants that:

 

 

1

(a) he is not
subject to, or a respondent in, any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any act
or practice relating to the offering of securities in any
jurisdiction;

(b) he has
never been convicted of or pleaded guilty to any crime (i) involving any fraud
or (ii) relating to any financial transaction or handling of funds of another
person, or (iii) pertaining to any dealings in any securities and he is not
currently a defendant in any such criminal proceeding; and

(c) he has
never been suspended or expelled from membership in any securities or
commodities exchange or association or had a securities or commodities license
or registration denied, suspended or revoked.

7. The
undersigned has full right and power, without violating any agreement by which
he is bound, to enter into this letter agreement and to serve as Chairman of the
Board of the Company.

8. The
undersigned authorizes any employer, financial institution, or consumer credit
reporting agency to release to Ladenburg and its legal representatives or agents
(including any investigative search firm retained by Ladenburg) any information
they may have about the undersigned’s background and finances (“Information”).
Neither Ladenburg nor its agents shall be violating the undersigned’s right of
privacy in any manner in requesting and obtaining the Information and the
undersigned hereby releases them from liability for any damage whatsoever in
that connection.

9. This
letter agreement shall be governed by and construed and enforced in accor-dance
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. The
undersigned hereby (i) agrees that any action, proceeding or claim against him
arising out of or relating in any way to this letter agreement (a “Proceeding”)
shall be brought and enforced in the courts of the State of New York of the
United States of America for the Southern District of New York, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclu-sive, (ii)
waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum and (iii) irrevocably agrees to appoint Graubard
Miller as agent for the service of process in the State of New York to receive,
for the undersigned and on his behalf, service of process in any Proceeding. If
for any reason such agent is unable to act as such, the undersigned will
promptly notify the Company and Ladenburg and appoint a substitute agent
acceptable to each of the Company and Ladenburg within 30 days and nothing in
this letter will affect the right of either party to serve process in any other
manner permitted by law.  

10. The
undersigned acknowledges and understands that Ladenburg and the Company will
rely upon the agreements and representations and warranties set forth herein in
proceeding with the IPO. Nothing contained herein shall be deemed to render
Ladenburg a representative of, or a fiduciary with respect to, the Company, its
stockholders, or any creditor or vendor of the Company with respect to the
subject matter hereof.

11. As used
herein, (i) a “Business Combination” shall mean an acquisition by merger,
capital stock exchange, asset or stock acquisition, reorganization or otherwise,
of an operating business; (ii) “Insiders” shall mean all officers, directors and
stockholders of the Company immediately prior to the IPO; and (iii) “IPO Shares”
shall mean the shares of Common Stock issued in the Company’s IPO.

	 	 	 
	 	
	 
 	 
 	 
 
		By:  	/s/ Paul D.
  Lapping
	 	
      

      Paul D. Lapping
	 	

 

 

2

 

Exhibit
A

Paul
D. Lapping has been
our chairman of the board since our inception. Since August 2003, Mr. Lapping
has served as the president of Lapping Investments, LLC, a personal investment
fund targeting lower middle market leveraged buyouts. From April 2000 to
November 2003, Mr. Lapping was a general partner of Minotaur Partners II, L.P.,
a private investment partnership Mr. Lapping formed to invest equity in small
and middle-market marketing driven companies with an emphasis on emerging
technologies. From December 1995 to January 2002, Mr. Lapping was a general
partner of Merchant Partners, L.P., a private investment partnership focused on
direct marketing, business and consumer services. Prior to joining Merchant
Partners, Mr. Lapping served in various corporate development roles with
Montgomery Ward Holding Corp., a retail, catalog, direct marketing and home
shopping company, and Farley Industries, Inc., a management company providing
services to Farley Inc., a private investment fund holding company, and its
related entities including Fruit of the Loom, Inc., Farley Metals, Inc., Acme
Boot Company and West Point-Pepperell, Inc. Mr. Lapping also served in various
positions with Golder, Thoma and Cressey, a private equity firm, and with the
merger and acquisition group of Salomon Brothers Inc. Mr. Lapping received a
B.S. from the University of Illinois, a M.B.A. from the Kellogg School of
Business at Northwestern University. Mr. Lapping is also a certified public
accountant.exhibit 10.2

 

July 5,
2005

QuadraPoint
Acquisition Corp.

900 North
Michigan Avenue

Chicago,
Illinois 60606

Ladenburg
Thalmann & Co. Inc.

590
Madison Avenue

34th
Floor

New York,
New York 10022

	
      
	
      
	
      Re:
	
      Initial
      Public Offering

Gentlemen:

The
undersigned stockholder, officer and director of QuadraPoint Acquisition Corp.
(“Company”), in consideration of Ladenburg Thalmann & Co. Inc. (“Ladenburg”)
entering into a letter of intent (“Letter of Intent”) to underwrite an initial
public offering of the securities of the Company (“IPO”) and embarking on the
IPO process, hereby agrees as follows (certain capitalized terms used herein are
defined in paragraph 13 hereof):

1. If the
Company solicits approval of its stockholders of a Business Combination, the
undersigned will vote all Insider Shares owned by him in accordance with the
majority of the votes cast by the holders of the IPO Shares. 

2. In the
event that the Company fails to consummate a Business Combination within 18
months from the effective date (“Effective Date”) of the registration statement
relating to the IPO (or 24 months under the circum-stances described in the
prospectus relating to the IPO), the undersigned will, as soon as reasonably
practicable, (i) cause the Trust Fund (as defined in the Letter of Intent) to be
liquidated and distributed to the holders of IPO Shares and (ii) take all
reasonable actions within his power to cause the Company to liquidate. The
undersigned hereby waives any and all right, title, interest or claim of any
kind in or to any distribution of the Trust Fund and any remaining net assets of
the Company as a result of such liquidation with respect to his Insider Shares
(“Claim”) and hereby waives any Claim the undersigned may have in the future as
a result of, or arising out of, any contracts or agreements with the Company and
will not seek recourse against the Trust Fund for any reason whatsoever. In the
event of the liquidation of the Trust Fund, the undersigned agrees to indemnify
and hold harmless the Company, severally pro rata with Paul D. Lapping and Brian
B. Boorstein based on the number of Insider Shares beneficially owned by such
individuals, against any and all loss, liability, claims, damage and expense
whatsoever (including, but not limited to, any and all legal or other expenses
reasonably incurred in investigating, preparing or defending against any
litigation, whether pending or threatened, or any claim whatsoever) which the
Company may become subject as a result of any claim by any vendor or other
person who is owed money by the Company for services rendered or products sold
or contracted for, or by any target business, but only to the extent necessary
to ensure that such loss, liability, claim, damage or expense does not reduce
the amount in the Trust Fund.

3. In order
to minimize potential conflicts of inter-est which may arise from multiple
affiliations, the undersigned agrees to present to the Company for its
consideration, prior to presentation to any other person or entity, any suitable
opportunity to acquire an operating business, until the earlier of the
consummation by the Company of a Business Combination, the liquidation of the
Company or until such time as the undersigned ceases to be an officer or
director of the Company, subject to any pre-existing fiduciary and contractual
obligations the undersigned might have.

4. The
undersigned acknowledges and agrees that the Company will not consummate any
Business Combination which involves a company which is affiliated with any of
the Insiders unless
the Company obtains an opinion from an independent investment banking firm
reasonably acceptable to Ladenburg that the business combination is fair to the
Company’s stockholders from a financial perspective.

 

5. Neither
the undersigned, any member of the family of the undersigned, nor any affiliate
(“Affiliate”) of the undersigned will be entitled to receive and will not accept
any compensation for services rendered to the Company prior to or in connection
with the consummation of the Business Combination; provided that the undersigned
shall be entitled to reimbursement from the Company for his out-of-pocket
expenses incurred in connection with seeking and consummating a Business
Combination. 

 

 

1

6. Neither
the undersigned, any member of the family of the undersigned, nor any Affiliate
of the undersigned will be entitled to receive or accept a finder’s fee or any
other compensation in the event the undersigned, any member of the family of the
undersigned or any Affiliate of the undersigned originates a Business
Combination. 

7. The
undersigned will escrow his Insider Shares for the three year period commencing
on the Effective Date subject to the terms of a Stock Escrow Agreement which the
Company will enter into with the undersigned and an escrow agent acceptable to
the Company.

8. The
undersigned agrees to be the Chief Executive Officer, President and Director of
the Company until the earlier of the consummation by the Company of a Business
Combination or the liquidation of the Company. The undersigned’s biographical
information furnished to the Company and Ladenburg and attached hereto as
Exhibit A is true and accurate in all respects, does not omit any material
information with respect to the undersigned’s background and contains all of the
information required to be disclosed pursuant to Item 401 of Regulation S-K,
promulgated under the Securities Act of 1933. The undersigned’s Questionnaire
furnished to the Company and Ladenburg and annexed as Exhibit B hereto is
true and accurate in all respects. The undersigned represents and warrants
that:

(a) he is not
subject to, or a respondent in, any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any act
or practice relating to the offering of securities in any
jurisdiction;

(b) he has
never been convicted of or pleaded guilty to any crime (i) involving any fraud
or (ii) relating to any financial transaction or handling of funds of another
person, or (iii) pertaining to any dealings in any securities and he is not
currently a defendant in any such criminal proceeding; and

(c) he has
never been suspended or expelled from membership in any securities or
commodities exchange or association or had a securities or commodities license
or registration denied, suspended or revoked.

9. The
undersigned has full right and power, without violating any agreement by which
he is bound, to enter into this letter agreement and to serve as Chief Executive
Officer, President and Director of the Company.

10. The
undersigned authorizes any employer, financial institution, or consumer credit
reporting agency to release to Ladenburg and its legal representatives or agents
(including any investigative search firm retained by Ladenburg) any information
they may have about the undersigned’s background and finances (“Information”).
Neither Ladenburg nor its agents shall be violating the undersigned’s right of
privacy in any manner in requesting and obtaining the Information and the
undersigned hereby releases them from liability for any damage whatsoever in
that connection.

11. This
letter agreement shall be governed by and construed and enforced in accor-dance
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. The
undersigned hereby (i) agrees that any action, proceeding or claim against him
arising out of or relating in any way to this letter agreement (a “Proceeding”)
shall be brought and enforced in the courts of the State of New York of the
United States of America for the Southern District of New York, and irrevocably
submits to such jurisdiction, which jurisdiction shall be exclu-sive, (ii)
waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum and (iii) irrevocably agrees to appoint Graubard
Miller as agent for the service of process in the State of New York to receive,
for the undersigned and on his behalf, service of process in any Proceeding. If
for any reason such agent is unable to act as such, the undersigned will
promptly notify the Company and Ladenburg and appoint a substitute agent
acceptable to each of the Company and Ladenburg within 30 days and nothing in
this letter will affect the right of either party to serve process in any other
manner permitted by law.  

12. The
undersigned acknowledges and understands that Ladenburg and the Company will
rely upon the agreements and representations and warranties set forth herein in
proceeding with the IPO. Nothing contained herein shall be deemed to render
Ladenburg a representative of, or a fiduciary with respect to, the Company, its
stockholders, or any creditor or vendor of the Company with respect to the
subject matter hereof.

13. As used
herein, (i) a “Business Combination” shall mean an acquisition by merger,
capital stock exchange, asset or stock acquisition, reorganization or otherwise,
of an operating business; (ii) “Insiders” shall mean all officers, directors and
stockholders of the Company immediately prior to the IPO; (iii) “Insider Shares”
shall mean all of the shares of Common Stock of the Company owned by an Insider
prior to the IPO; and (iv) “IPO Shares” shall mean the shares of Common Stock
issued in the Company’s IPO.

 

	 	 	 
	 	
	 
 	 
 	 
 
		By:  	/s/ Peter L.
  Venetis
	 	
      

      Peter L. Venetis
	 	

2

Exhibit
A

Peter
L. Venetis has been
our president, chief executive officer and a member of our board of directors
since our inception. Since January 2001, Mr. Venetis has served as managing
partner of Praxis Capital Ventures LP., a private equity firm providing growth
capital to emerging companies in the telecommunications, digital media and
related industries. Since June 2003, he has also served as a partner of Wyndham
Capital Partners and Carlton Capital Holdings, two private equity investment and
advisory firms focusing exclusively on middle market companies. From March 1992
to March 2000, Mr. Venetis served as president and chief executive officer of
the Atlantic Bank of New York, one of the largest commercial banks in the New
York metropolitan area. Prior to joining the Atlantic Bank of New York, Mr.
Venetis served in various positions with Salomon Brothers Inc. from February
1986 to February 1992, including serving as director of the leveraged finance
group and vice president of the mergers and acquisitions group. Mr. Venetis
currently serves on the Board of Trustees of The Churchill School and Center in
Manhattan. He was also a 1997 recipient of the Ellis Island Medal of Honor
award. Mr. Venetis received a B.A. and M.B.A. from Columbia
University.

Mr.
Venetis served as a member of the board of directors of Adelphia Communications
Corporation and Adelphia Business Solutions, Inc. from November 1999 until June
2002. Both Adelphia Communications and Adelphia Business Solutions subsequently
filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code. Mr. Venetis is a named defendant, together with other former members of
the management and board of directors of Adelphia Communications, in numerous
civil suits, most of which have been consolidated in a Multi-District Litigation
in the United States District Court for the Southern District of New York. Mr.
Venetis has not been named in any case brought by the SEC or the federal
government in connection with Adelphia Communications.

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