Document:

Unassociated Document

 

Exhibit 10.9

 

SECURITIES ESCROW AGREEMENT

 

SECURITIES ESCROW AGREEMENT, dated as of                  , 2011 (the “Agreement”) by and among Global Eagle Acquisition Corp., a Delaware corporation (the “Company”), Global Eagle Acquisition LLC, a Delaware limited liability company (the “Sponsor”), James McNamara and Dennis Miller (together with the Sponsor, the “Initial Holders”), and American Stock Transfer & Trust Company, LLC (the “Escrow Agent”).

 

WHEREAS, the Company has entered into an Underwriting Agreement, dated                , 2011 (the “Underwriting Agreement”), with Citigroup Global Markets Inc. (the “Representative”), acting as representative of the several underwriters (collectively, the “Underwriters”), pursuant to which, among other matters, the Underwriters have agreed to purchase in a public offering (the “IPO”) 17,500,000 units (not including the Underwriters’ over-allotment option) (the “Units”) of the Company’s securities, each Unit consisting of one share of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), and one warrant (a “Warrant”), each Warrant entitling the holder to purchase one share of Common Stock, all as more fully described in the Company’s definitive Prospectus, dated __________, 2011 (“Prospectus”), comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-172267) under the Securities Act of 1933, as amended (the “Registration Statement”), declared effective on __________, 2011 (the “Effective Date”);

 

WHEREAS, the Initial Holders have agreed, as a condition to 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 its name on Exhibit A attached hereto, in aggregate 4,417,683 shares, which includes all shares of Common Stock outstanding prior to the Closing Date (as defined below), consisting of (i) 4,240,976 shares (up to 553,171 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full) (the “Founder Shares”) and (ii) 176,707 shares (up to 23,049 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full) (the “Founder Earnout Shares” and together with the Founder Shares, the “Escrow Shares”), in escrow with the Escrow Agent as hereinafter provided;

 

WHEREAS, on February 2, 2011, the Company and the Sponsor entered into that certain Sponsor Warrants Purchase Agreement, pursuant to which the Sponsor has agreed to purchase an aggregate of 7,000,000 warrants (the “Private Warrants” and, together with the Escrow Shares, the “Escrow Securities”) in a private placement transaction to occur simultaneously on the date of the closing of the IPO (the “Closing Date”);

 

WHEREAS, the Sponsor has agreed as a condition of the sale of the Private Warrants to deposit all of its Private Warrants, as set forth opposite its name on Exhibit A attached hereto, in escrow 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 Closing Date, the Initial Holders shall deliver to the Escrow Agent certificates representing their respective Escrow Securities, in proper transfer order with Medallion guaranteed stock powers, to be held and disbursed subject to the terms and conditions of this Agreement.  The Initial Holders acknowledge and agree that the certificates representing the Escrow Securities will bear a legend to reflect the deposit of such Escrow Securities under this Agreement.

 

3.           Disbursement of the Escrow Securities. The Escrow Agent shall hold each of the Escrow Shares and the Private Warrants until the termination of their respective Escrow Periods (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 Escrow Shares are deposited with the Escrow Agent and ending (a) with respect to the Founder Shares, on the earlier of (x) the first anniversary of the completion of the Company’s initial business combination (as such term is defined in the Registration Statement), (y) such time subsequent to the Company’s initial business combination as the last sales price of the Company’s Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination, or (z) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the Company’s initial business combination that results in all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property, and (b) with respect to the Founder Earnout Shares, on the earlier of (x) such time as the last sales price of the Company’s Common Stock equals or exceeds $13.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period, or (y) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of common stock for consideration in cash, securities or other property which equals or exceeds $13.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like); provided, that in the event neither (x) nor (y) has occurred within three years following the consummation of the Company’s initial business combination (the “Founder Earnout Deadline”), the Founder Earnout Shares shall be forfeited.  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 30th day following the date of the consummation of the Company’s initial business combination.

  

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On the termination date of the applicable Escrow Period, the Escrow Agent shall, upon written instructions from the Company, disburse the Escrow Securities to the Initial Holders; provided, however, that if the Escrow Agent is notified by the Company pursuant to Section 6.7 hereof that (i) up to an aggregate of 576,220 of the Escrow Shares have been forfeited because the Underwriters did not exercise their over-allotment option in full or (ii) the Founder Earnout Shares have been forfeited because neither (x) nor (y) above occurred on or before the Founder Earnout Deadline, then the Escrow Agent shall promptly destroy the certificates representing such Escrow Securities (or portion thereof, as applicable).  In addition, notwithstanding anything to the contrary contained herein, the Escrow Agent shall disburse the Escrow Securities to the Initial Holders upon being notified by the Company that the trust account into which substantially all of the proceeds of the IPO and the sale of the Private Warrants has been deposited as described in the Prospectus (the “Trust Account”) is being liquidated because the Company has been unable to consummate its initial business combination within the required time frame.  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 Letter described in Section 4.4 hereof and except as herein provided, the Initial Holders shall retain all of their rights as stockholders of the Company during the Escrow Period, including, without limitation, the right to vote the Escrow Shares.

 

4.2           Dividends and Other Distributions in Respect of the Escrow Securities.  During the applicable Escrow Period, all dividends payable in cash with respect to the Escrow Securities other than the Founder Earnout Shares shall be paid to the Initial Holders, but all dividends payable in cash with respect to the Founder Earnout Shares or in stock or other non-cash property with respect to all of the Escrow Securities (“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 applicable Escrow Period, no sale, transfer or other disposition may be made of any or all of the Escrow Securities except (i) to the Company’s officers or directors, any affiliates or family members of any of the Company’s officers or directors, any members of the Sponsor, or any affiliates of the Sponsor, (ii) by gift to a member of one of the members of the Sponsor’s immediate family or to a trust, the beneficiary of which is a member of one of the members of the Sponsor’s immediate family, an affiliate of the Sponsor or to a charitable organization; (iii) by virtue of laws of descent and distribution upon death of one of the members of the Sponsor; (iv) pursuant to a qualified domestic relations order; (v) by virtue of the laws of the state of Delaware or the Sponsor’s limited liability company agreement upon dissolution of the Sponsor; (vi) in the event of the Company’s liquidation prior to the Company’s completion of our initial business combination; or (vii) in the event of the Company’s completion of a liquidation, merger, stock exchange or other similar transaction which results in all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property subsequent to the Company’s completion of the Company’s initial business combination; provided, however, that these permitted transferees must enter into a written agreement agreeing to be bound by these transfer restrictions.  Even if transferred in accordance with this Section 4.3, the Escrow Securities will remain subject to this Agreement and may be released from escrow only in accordance with Section 3 hereof.  During the applicable Escrow Period, the Sponsor shall not pledge or grant a security interest in the Escrow Securities or grant a security interest in its rights under this Agreement. The Escrow Shares and Private Warrants each shall bear the respective legend provided on Exhibit B attached hereto.

 

  

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4.4           Insider Letters.  Each Initial Holder has executed a letter agreement with the Representative and the Company, dated as of the Effective Date, and which is filed as an exhibit to the Registration Statement (each an “Insider Letter”), which contains certain rights and obligations of such Initial Holder with respect to the Company, including, but not limited to, certain voting obligations in respect of the Escrow Shares.

 

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, which counsel may be company counsel), 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 reasonable counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action taken by it hereunder, 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.

 

  

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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 C hereto.  The Escrow Agent shall also be entitled to reimbursement from the Company for all reasonable 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.

 

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 the Representative, which approval will not be unreasonably withheld, conditioned or delayed, 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 in the State of New York.

 

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, fraud or 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 reference to its principles of conflicts of law which would require the application of the laws of another jurisdiction.  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 personal 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           Entire Agreement.  This Agreement and the Insider Letters contain 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 be charged.  In connection with any proposed amendment, the Escrow Agent may request an opinion of the Company’s counsel as to the validity of the proposed amendment as a condition to its execution of said amendment.

 

  

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6.3           Headings.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation thereof.

 

6.4           Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representative, successors and assigns.

 

6.5           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 by private national courier service, or, if mailed, four business days after the date of mailing, as follows:

 

	
if to the Escrow Agent, to:

	  
	
American Stock Transfer & Trust Company, LLC

	
6201 15th Avenue

	
Brooklyn, New York 11219

	
Attn: Felix Orihuela

	
Fax No.: (718) 921-8355

	  
	
if to the Company, to:

	  
	
Global Eagle Acquisition Corp.

	
10900 Wilshire Blvd., Suite 1500

	
Los Angeles, CA 90024

	
Attn: Harry E. Sloan

	
Fax No.: (310) 209-7225

	  
	
and a copy, which shall not constitute notice, to:

	  
	
McDermott Will & Emery LLP

	
340 Madison Avenue

	
New York, New York 10173

	
Attn: Joel L. Rubinstein, Esq.

	
Fax No.: (212) 547-5444

	
McDermott Will & Emery LLP

	  
	
if to the Initial Holders, to the address set forth in Exhibit A hereto.

	  
	
if the to the Underwriters, to:

	  
	
Citigroup Global Markets Inc.

	
388 Greenwich Street

 

  

6

 

	
New York, NY 10013

	
Attn: General Counsel

	
Fax No.: (212) 816-7912

	  
	
with a copy, to:

	  
	
Akin Gump Strauss Hauer & Feld LLP

	
One Bryant Park

	
New York, New York 10036

	
Attn: Bruce S. Mendelsohn, Esq.

	
Fax No.: (212) 872-1002

 

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.

 

6.6           Liquidation of Company; Forfeiture.  The Company shall give the Escrow Agent prompt written notification of (i) the liquidation of the Trust Account, (ii) forfeiture of up to an aggregate of 576,220 Escrow Shares held by the Initial Holders to the extent the Underwriters’ over-allotment option is not exercised in full, as further described in the Registration Statement or (iii) forfeiture of the Founder Earnout Shares on the Founder Earnout Deadline.

 

6.7           Trust Account Waiver.  Notwithstanding anything herein to the contrary, the Escrow Agent hereby waives any and all right, title, interest, demand, damages, action, causes of action or claim of any kind whatsoever, known or unknown, foreseen or unforeseen, in law or equity (a “Claim”) that it has or may have against the Company or 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.

 

6.8           Third-Party Beneficiaries.  Each Initial Holder hereby acknowledges that the Underwriters, including, without limitation, the Representative, are third-party beneficiaries of this Agreement and this Agreement cannot be modified or changed without the prior written consent of the Representative.

 

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]

 

  

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IN WITNESS WHEREOF, the Company has caused the execution of this Agreement as of the date first above written.

 

	  	
GLOBAL EAGLE ACQUISITION CORP.

	  	  
	  	
By:

	 	  
	  	  	
Name:

	  	  	
Title:

	  	  
	  	
AMERICAN STOCK TRANSFER & TRUST 

COMPANY, LLC

	  	  
	  	
By:

	 	  
	  	  	
Name:

	  	  	
Title:

	  	  
	  	
GLOBAL EAGLE ACQUISITION LLC

	  	  
	  	
By:

	 	  
	  	  	
Name:

	  	  	
Title:

	  	  
	  	 	  
	  	
Name: James McNamara

	  	  
	  	 	  
	  	
Name: Dennis Miller

Signature Page to Securities Escrow Agreement

  

  

 

EXHIBIT A

 

LIST OF INITIAL HOLDERS

 

	

Name

	  	

Founder Shares

	  	

Founder Earnout Shares

	  	

Warrants

	  	  	  	  	  	  	  
	
Global Eagle Acquisition LLC

10900 Wilshire Blvd.,

Suite 1500

Los Angeles, CA 90024

Fax No.: (310) 209-7225

	  	
4,198,566 shares (up to 547,639 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full)

	  	
179,940 shares (up to 22,818 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full)

	  	
7,000,000 warrants

	 	 	 	 	 	 	 
	
James McNamara

1095 Mariner Drive

Key Biscayne, FL 33149

	  	
21,205 shares (up to 2,766 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full)

	  	
884 shares (up to 115 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full)

	  	  
	 	 	 	 	 	 	 
	
Dennis Miller

1338 Bella Oceana Vista

Pacific Palisades, CA 90272

	
  

	
21,205 shares (up to 2,766 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full)

	
  

	
884 shares (up to 115 of which will be forfeited if the Underwriters’ over-allotment option is not exercised in full)

	
  

	  

  

  

 

EXHIBIT B

 

LEGENDS

 

The following legend shall be included on the certificates representing the Founder Shares:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS, AND, SUBJECT TO ANY ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED IN THE SECURITIES ESCROW AGREEMENT BY AND AMONG GLOBAL EAGLE ACQUISITION CORP., (THE “COMPANY”), GLOBAL EAGLE ACQUISITION LLC AND THE OTHER PARTIES THERETO, MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AND OTHER AGREEMENTS SET FORTH IN THE LETTER AGREEMENT DATED AS OF                , 2011 BY AND BETWEEN THE HOLDER AND THE COMPANY.”

 

The following legend shall be included on the certificates representing the Private Warrants:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. IN ADDITION, SUBJECT TO ANY ADDITIONAL LIMITATIONS ON TRANSFER DESCRIBED IN THE SECURITIES ESCROW AGREEMENT BY AND AMONG GLOBAL EAGLE ACQUISITION CORP. (THE “COMPANY”), GLOBAL EAGLE ACQUISITION LLC AND THE OTHER PARTIES THERETO, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR TRANSFERRED PRIOR TO THE DATE THAT IS THIRTY (30) DAYS AFTER THE DATE UPON WHICH THE COMPANY COMPLETES ITS INITIAL BUSINESS COMBINATION (AS DEFINED IN SECTION 3 OF THE WARRANT AGREEMENT REFERRED TO HEREIN) EXCEPT TO A PERMITTED TRANSFEREE (AS DEFINED IN SECTION 2 OF THE WARRANT AGREEMENT) WHO AGREES IN WRITING WITH THE COMPANY TO BE SUBJECT TO SUCH TRANSFER PROVISIONS.

 

  

  

 

 

SECURITIES EVIDENCED BY THIS CERTIFICATE AND SHARES OF COMMON STOCK OF THE COMPANY ISSUED UPON EXERCISE OF SUCH SECURITIES SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER A REGISTRATION RIGHTS AGREEMENT TO BE EXECUTED BY THE COMPANY.”

 

  

  

 

EXHIBIT C

 

ESCROW AGENT FEES

 

$[____] annually for acting as escrow agent.

First year escrow agent fee to be paid on the Closing Date.Unassociated Document

Exhibit 10.11

CONSULTING AGREEMENT

 

This Consulting Agreement (the “Agreement”), effective as of ____________, 2011 is entered into by and between Global Eagle Acquisition Corp. (the “Company”) and James A. Graf (the “Consultant”).

 

WHEREAS, the Consultant has experience providing financial advisory services and the Company wishes to retain the Consultant to provide financial advisory services to the Company on the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the mutual promises herein made, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and agreed, IT IS HEREBY AGREED AS FOLLOWS:

 

1.           Engagement.  The Company hereby engages Consultant, and Consultant hereby agrees to serve the Company to the best of his ability to provide financial advisory services to the Company during the Term (as defined below) as and when requested by the Company (the “Consulting Obligations”).  Consultant shall devote his attention, skill, energy and efforts to faithfully and effectively perform his duties hereunder.

 

2.           Term.  The Consultant’s obligation to perform the Consulting Obligations and the Company’s obligations to compensate the Consultant hereunder shall terminate on the earlier of (i) the date which is 30 days from the date one party sends written notice to the other party with respect to the termination of this Agreement, which a party can exercise at any time and (ii) the closing date of the Company’s initial business combination as such term is used in the Company’s Registration Statement (No. 333-172267) on Form S-1, as amended, (the “Term”) and upon which date this Agreement other than the provisions of Sections 5 through 11 applicable thereto shall terminate.

 

3.           Fees.  During the Term, in consideration for the Consultant’s services to be performed hereunder, the Company shall pay the Consultant a consulting fee, monthly in arrears, at the rate of $15,000 per month for each month (or portion thereof) that the Company engages the Consultant to perform consulting services.

 

4.           Expenses.  During the Term, the Company shall reimburse the Consultant for the Consultant’s reasonable and documented travel expenses incurred at the request of the Company.  The Consultant shall not be entitled to any other benefits from the Company or its affiliates.

 

5.           Covenants of the Consultant.

 

A.           Confidential Information.  “Confidential Information” means all information (whether written or oral) and materials concerning the Company or any business or assets that the Company may target for acquisition which the Company and/or its affiliates or their employees or representatives has furnished or may hereafter furnish to the Consultant or which the Consultant learns in connection with the performance of his duties hereunder.  Confidential Information specifically includes, but is not limited to, pricing, costs, other financial information, drawings, artwork, designs, formulations, processes, patent applications, research procedures, models, prototypes, samples, specifications, test results, analyses, software, forecasts and studies.  Notwithstanding the foregoing, Confidential Information does not include any information or materials which Consultant can clearly demonstrate (a) is or becomes generally available to the public other than as a result of an unauthorized disclosure by the Consultant, (b) is or becomes available to Consultant from a third party, other than on a confidential basis from the Company or its affiliates, which third party represents to the Consultant that it is entitled to disclose such information, (c) was known to the Consultant prior to receipt thereof by the Consultant from the Company or its affiliates, or (d) is approved for release by the express prior written authorization of Company or its affiliates and then only after such approval and only for the purpose specified.

 

  

  

  

 

B.           Confidentiality and Non-Use.  Consultant shall keep or cause to be kept in strict confidence all Confidential Information and shall not use it or disclose it to anyone except in connection with the fulfillment of the Consulting Obligations (and, in the case of disclosure to a third party, only if the third party to whom it is disclosed agrees to keep it confidential in accordance with this Agreement).  If the Consultant makes any copies of the Confidential Information or any abstracts or summaries thereof or references thereto in any other document, he will keep a record in each such instance.  Upon the Company’s written request, the Consultant will either destroy or return to the Company all Confidential Information which is in tangible form, including any copies thereof which the Consultant may have made, and the Consultant will destroy all abstracts and summaries thereof and destroy or delete all references thereto in his documents, and certify to the Company that he has done so.  If the Company notifies the Consultant in writing as to any of the Confidential Information which it does not wish copied, the Consultant shall so comply and upon the Company’s written request shall certify such compliance to the Company in writing.

 

C.           Legal Requirement to Disclose.  In the event that the Consultant or to the Consultant’s knowledge anyone to whom the Consultant transmits the Confidential Information pursuant to this Agreement becomes legally compelled to disclose any of the Confidential Information, the Consultant will provide the Company with prompt notice, if lawful, so that the Company may seek a protective order or other appropriate remedy or waive compliance with the provisions of this Agreement.  If such protective order or other remedy is not obtained, or if the Company waives compliance with the provisions of this Agreement, the Consultant will furnish only that portion of the Confidential Information which the Consultant is advised by its counsel is legally required to be furnished.

 

D.           Conduct.  The Consultant agrees that he will not, directly or indirectly, individually or in concert with others, engage in any conduct or make any statement calculated or likely to have the effect of undermining, disparaging or otherwise reflecting poorly upon the Company or its affiliates or their good will, products or business opportunities, or in any manner detrimental to the Company, its successors and assigns, and its affiliates, their shareholders, officers, directors, or employees, past, present and future.  The foregoing shall apply (but not be limited to) oral, written or other communications with former, existing and potential employees, officers, directors, customers and suppliers.

 

  

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E.           Remedies/Specific Performance.  In the event of a breach or a threatened breach of any of the provisions of this Section 5, the Company and its affiliates, in addition and supplementary to other rights and remedies existing in its favor, may apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security).

 

6.           Benefits, etc.  The Consultant shall be responsible for all personal income and other payroll taxes payable with respect to compensation received hereunder and accepts exclusive liability for all contributions required under social security laws and unemployment compensation laws or other payments under any laws of similar character for Consultant.  The Consultant shall not be entitled to receive any benefits under any employee benefit plan or program of any kind maintained by the Company.

 

7.           Entire Agreement.  This Agreement constitutes the entire agreement between the Consultant and the Company with respect to its subject matter and supersedes all prior discussions and agreements relating to its subject matter.

 

8.           Enforceability.  Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.  If any provision of this Agreement shall, in whole or in part, become or be held invalid or unenforceable, all other provisions of this Agreement shall remain in full force and effect.  The parties undertake to replace such invalid or unenforceable provisions with such valid and enforceable provisions, which accomplish as far as possible the purpose and intent of the parties with respect to the invalid or unenforceable provision.  The same shall apply accordingly to any situation not contemplated under or covered by this Agreement.

 

9.           Counterparts; Assignment; Notices.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one and the same instrument.  the rights and obligations of this Agreement shall bind and inure to the benefit of the parties and their respective successors and assigns.  Except as expressly provided herein or therein, the rights and obligations of this Agreement may not be assigned by the Consultant without the prior written consent of Company.  All notices, requests, demands, claims, and other communications hereunder shall be in writing.

 

10.           Amendments and Waivers.  This Agreement may not be modified, amended, supplemented, canceled or discharged, except by written instrument executed by the Company and the Consultant.  No failure to exercise, and no delay in exercising, any right, power or privilege under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any right, power or privilege hereunder preclude the exercise of any other right, power or privilege.  No waiver of any breach of any provision shall be deemed to be a waiver of any preceding or succeeding breach of the same or any other provision, nor shall any waiver be implied from any course of dealing between the parties.

 

  

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11.           Governing Law and Arbitration. All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of California, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California.  The parties agree that all disputes, legal actions, suits and proceedings arising out of or relating to this Agreement shall, in lieu of a jury or other civil trial, be settled by final and binding arbitration before a single arbitrator in Los Angeles, California and shall be conducted in accordance with then-current rules of the American Arbitration Association.  This agreement to arbitrate includes all claims whether arising in tort or contract and whether arising under statute or common law.  The obligation to arbitrate such claims shall continue forever, and the arbitrator shall have jurisdiction to determine the arbitrability of any claim.  The arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law.  The arbitrator shall not have the authority to add to, subtract from or modify any of the terms of this Agreement.  Judgment on any award rendered by the arbitrator may be entered and enforced by any court having jurisdiction thereof.  The costs of the arbitration, including the arbitrator’s fees, shall be borne equally by the parties to the arbitration, unless the arbitrator orders otherwise, and each party shall be responsible for paying its own other costs for the arbitration, including, but not limited to, attorneys’ fees, witness fees, transcript fees, or other litigation expenses that such party would otherwise be required to bear in a court action, unless the arbitrator orders otherwise.  Notwithstanding the foregoing, the Company shall be entitled to apply to any court of law or equity of competent jurisdiction for the relief specified in Section 5(E) hereof.

 

  

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IN WITNESS WHEREOF, the Consultant and the Company have executed this Agreement effective as of the date first written above.

 

	  	 	
Global Eagle Acquisition Corp.

	  	 	  	  
	  	 	
By:

	  
	 	 	 	 
	
  

	 	
Name:

	  
	
James A. Graf

	 	  	  
	  	 	
Title:

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