Document:

Exhibit
10.7

 

STOCK
ESCROW AGREEMENT

 

STOCK ESCROW AGREEMENT,
dated as of
                  ,
2005 (“Agreement”), by and among SERVICES ACQUISITION CORP. INTERNATIONAL, a
Delaware corporation (“Company”), STEVEN R. BERRARD, THE EDELSON FAMILY
TRUST/UA DATED 09/08/1997, NATHANIEL KRAMER, THOMAS E. AUCAMP AND THOMAS C.
BYRNE  (collectively “Initial
Stockholders”) and CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York
corporation (“Escrow Agent”).

 

WHEREAS, the Company has
entered into an Underwriting Agreement, dated
         , 2005 (“Underwriting
Agreement”), with Broadband Capital Management LLC (“Broadband”) acting as
representative of the several underwriters (collectively, the “Underwriters”),
pursuant to which, among other matters, the Underwriters have agreed to
purchase 5,000,000 units (“Units”) of the Company.  Each Unit consists of
one share of the Company’s Common Stock, par value $.001 per share, and one
Warrant, each Warrant to purchase one share of Common Stock, all as more fully
described in the Company’s final Prospectus, dated
           , 2005 (“Prospectus”)
comprising part of the Company’s Registration Statement on Form S-1
(File No. 333-         )
under the Securities Act of 1933, as amended (“Registration Statement”),
declared effective on
                    ,
2005 (“Effective Date”).

 

WHEREAS, the Initial
Stockholders have agreed as a condition of the sale of the Units to deposit
their shares of Common Stock of the Company, 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 Stockholders desire that the Escrow Agent accept the Escrow Shares,
in escrow, to be held and disbursed as hereinafter provided.

 

IT IS AGREED:

 

1.                                       Appointment
of Escrow Agent.  The Company and the Initial Stockholders hereby
appoint the Escrow Agent to act in accordance with and subject to the terms of
this Agreement and the Escrow Agent hereby accepts such appointment and agrees
to act in accordance with and subject to such terms.

 

2.                                       Deposit
of Escrow Shares.  On or before the Effective Date, each of the
Initial Stockholders shall deliver to the Escrow Agent certificates
representing his respective Escrow Shares, to be held and disbursed subject to
the terms and conditions of this Agreement.  Each Initial Stockholder
acknowledges that the certificate representing his Escrow Shares is legended to
reflect the deposit of such Escrow Shares under this Agreement.

 

3.                                       Disbursement
of the Escrow Shares.  The Escrow Agent shall hold the Escrow Shares
until the third anniversary of the Effective Date (“Escrow Period”), on which
date it shall, upon written instructions from each Initial Stockholder,
disburse each of the Initial Stockholder’s Escrow Shares to such Initial
Stockholder; provided, however, that if the Escrow Agent is notified by the
Company pursuant to Section 6.7 hereof that the Company is being
liquidated at any time during the Escrow Period, then the Escrow Agent shall
promptly destroy the certificates representing the Escrow Shares; provided
further, however, that if, after the Company consummates a Business Combination
(as such term is defined in the Registration Statement), it (or the surviving
entity) subsequently consummates a liquidation, merger, stock exchange or other
similar transaction which results in all of the stockholders of such entity
having the right to exchange their shares of Common Stock for cash, securities
or other property, then the Escrow Agent will, upon receipt of a certificate,
executed by the Chief Executive Officer or Chief Financial Officer of the
Company, in form reasonably acceptable to the Escrow Agent, that such
transaction is then being consummated, release the Escrow Shares to the Initial
Stockholders upon consummation of the transaction so that they can similarly
participate.  The Escrow Agent shall have no further duties hereunder
after the disbursement or destruction of the Escrow Shares in accordance with
this Section 3.

 

4.                                       Rights
of Initial Stockholders in Escrow Shares.

 

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
Stockholders shall retain all of their rights as stockholders of the Company during
the Escrow Period, including, without limitation, the right to vote such
shares.

 

 

4.2                                 Dividends
and Other Distributions in Respect of the Escrow Shares.  During the
Escrow Period, all dividends payable in cash with respect to the Escrow Shares
shall be paid to the Initial Stockholders, but all dividends payable in stock
or other non-cash property (“Non-Cash Dividends”) shall be delivered to the
Escrow Agent to hold in accordance with the terms hereof.  As used herein,
the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends
distributed thereon, if any.

 

4.3                                 Restrictions
on Transfer.  During the Escrow Period, no sale, transfer or other
disposition may be made of any or all of the Escrow Shares except (i) by gift
to a member of Initial Stockholder’s immediate family or to a trust, the
beneficiary of which is an Initial Stockholder or a member of an Initial
Stockholder’s immediate family, (ii) by virtue of the laws of descent and
distribution upon death of any Initial Stockholder, or (iii) pursuant to a
qualified domestic relations order; provided, however, that such
permissive transfers may be implemented only upon the respective transferee’s
written agreement to be bound by the terms and conditions of this Agreement and
of the Insider Letter signed by the Initial Stockholder transferring the Escrow
Shares.  During the Escrow Period, the Initial Stockholders shall not
pledge or grant a security interest in the Escrow Shares or grant a security
interest in their rights under this Agreement.

 

4.4                                 Insider
Letters.  Each of the Initial Stockholders has executed a letter
agreement with Broadband 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 Stockholder in
certain events, including but not limited to the liquidation of the Company.

 

5.                                       Concerning
the Escrow Agent.

 

5.1                                 Good
Faith Reliance.  The Escrow Agent shall not be liable for any action
taken or omitted by it in good faith and in the exercise of its own best
judgment, and may rely conclusively and shall be protected in acting upon any
order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Escrow Agent), statement, instrument, report or other
paper or document (not only as to its due execution and the validity and
effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained) which is believed by the Escrow Agent to be
genuine and to be signed or presented by the proper person or persons. 
The Escrow Agent shall not be bound by any notice or demand, or any waiver,
modification, termination or rescission of this Agreement unless evidenced by a
writing delivered to the Escrow Agent signed by the proper party or parties
and, if the duties or rights of the Escrow Agent are affected, unless it shall
have given its prior written consent thereto.

 

5.2                                 Indemnification. 
The Escrow Agent shall be indemnified and held harmless by the Company from and
against any expenses, including counsel fees and disbursements, or loss
suffered by the Escrow Agent in connection with any action, suit or other
proceeding involving any claim which in any way, directly or indirectly, arises
out of or relates to this Agreement, the services of the Escrow Agent
hereunder, or the Escrow 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 Stockholders shall deliver or cause to be delivered to
the Escrow Agent such further documents and instruments and shall do or cause
to be done such further acts as the Escrow Agent shall reasonably request to
carry out more

 

 

effectively the
provisions and purposes of this Agreement, to evidence compliance herewith or
to assure itself that it is protected in acting hereunder.

 

5.5                                 Resignation. 
The Escrow Agent may resign at any time and be discharged from its duties as
escrow agent hereunder by its giving the other parties hereto written notice
and such resignation shall become effective as hereinafter provided.  Such
resignation shall become effective at such time that the Escrow Agent shall
turn over to a successor escrow agent appointed by the Company, the Escrow
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 Company and a majority of the Initial Stockholders, jointly, provided,
however, that such resignation shall become effective only upon acceptance of
appointment by a successor escrow agent as provided in Section 5.5.

 

5.7                                 Liability. 
Notwithstanding anything herein to the contrary, the Escrow Agent shall not be
relieved from liability hereunder for its own gross negligence or its own
willful misconduct.

 

6.                                       Miscellaneous.

 

6.1                                 Governing
Law.  This Agreement shall for all purposes be deemed to be made under
and shall be construed in accordance with the laws of the State of New York.

 

6.2                                 Third
Party Beneficiaries.  Each of the Initial Stockholders 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 Broadband.

 

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 be 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:

 

Services Acquisition
Corp. International

401 East Olas Boulevard

Suite 1140

Fort Lauderdale, Florida 33301

Attn:  
Chairman

 

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

and if to the Escrow
Agent, to:

 

Continental Stock
Transfer & Trust Company

17 Battery Place

 

 

New York, New York 10004

Attn:  
Chairman

 

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

 

Mintz Levin Cohn Ferris
Glovsky and Popeo, P.C.

666 Third Avenue

25th Floor

New York, New York 10017

Attn:                    Kenneth R.
Koch, Esq.

 

and:

 

Broadband Capital
Management LLC

805 Third Avenue

New York, New York 10022

Attn:                    Michael Rapp

 

and:

 

Littman Krooks LLP

655 Third Avenue

New York, New York 10017

Attn:                    Steven D.
Uslaner, Esq.

 

The parties may change
the persons and addresses to which the notices or other communications are to
be sent by giving written notice to any such change in the manner provided
herein for giving notice.

 

6.7                                 Liquidation
of Company. The Company shall give the Escrow Agent written notification of
the liquidation and dissolution of the Company in the event that the Company
fails to consummate a Business combination within the time period(s) specified
in the Prospectus.

 

 

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

 

	
   

  	
  SERVICES ACQUISITION
  CORP.

  INTERNATIONAL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Steven R.
  Berrard, Chairman and

  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INITIAL STOCKHOLDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Steven R. Berrard

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Edelson Family
  Trust/UA dated

  09/08/1997

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Nathaniel Kramer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas E. Aucamp

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas C. Byrne

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL STOCK TRANSFER

  & TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

 

EXHIBIT A

 

	
  Name
  and Address of

  Initial Stockholder

  	
   

  	
  Number

  of Shares

  	
   

  	
  Stock

  Certificate Number

  	
   

  	
  Date of

  Insider Letter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Steven
  R. Berrard

  	
   

  	
  375,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The
  Edelson Family Trust/UA dated 09/08/1997

  	
   

  	
  218,750

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nathaniel
  Kramer

  	
   

  	
  218,750

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thomas
  E. Aucamp

  	
   

  	
  218,750

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Thomas
  C. Byrne

  	
   

  	
  218,750Exhibit 10.9

 

PROMISSORY NOTE

 

	
  $___________

  	
   

  	
  As
  of January 26, 2005

  
	
   

  	
   

  	
  Fort
  Lauderdale, Florida

  

 

Services Acquisition Corp. International  (the “Maker”) promises to pay to the order of
_________ (the “Payee”) the principal sum of _________ Thousand Dollars and No
Cents ($_________.00) in lawful money of the United States of America, together
with interest on the unpaid principal balance of this Note, on the terms and
conditions described below.

 

                1.             Principal.  The principal balance of this Note shall be repayable
on the earlier of (i) January __, 2006 or (ii) the date on which Maker
consummates an initial public offering of its securities.

 

                2.
            Interest.   Interest shall accrue at the rate of 4%
annually (non-compounded) on the unpaid principal balance of this Note.

 

                3.             Application of Payments.  All payments shall be applied first to
payment in full of any costs incurred in the collection of any sum due under
this Note, including (without limitation) reasonable attorneys’ fees, then to
the payment in full of any late charges and finally to the reduction of the
unpaid principal balance of this Note.

 

                4.
            Events of Default. The
following shall constitute Events of Default:

 

        
                       (a)           Failure
to Make Required Payments.  Failure
by Maker to pay the principal of or accrued interest on this Note within five
(5) business days following the date when due.

 

                                (b)           Voluntary Bankruptcy, Etc. The
commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as
now constituted or hereafter amended, or any other applicable federal or state
bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or
the consent by it to the appointment of

or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) of Maker or for any substantial part of its property, or the making
by it of any assignment for the benefit of creditors, or the failure of Maker
generally to pay its debts as such debts become due, or the taking of corporate
action by Maker in furtherance of any of the foregoing.

 

                                 (c)          Involuntary
Bankruptcy, Etc.  The entry of a
decree or order for relief by a court having jurisdiction in the premises in
respect of maker in an involuntary case under the Federal Bankruptcy Code, as
now or hereafter constituted, or any other applicable federal or state
bankruptcy, insolvency or other similar law, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
Maker or for any substantial part of its property, or ordering the winding-up
or liquidation of the affairs of Maker, and the continuance of any such decree
or order unstayed and in effect for a period of 60 consecutive days.

 

                5.             Remedies.

 

        
                       (a)           Upon the occurrence of an Event of
Default specified in Section 4(a), Payee may, by written notice to Maker,
declare this Note to be due and payable, whereupon the principal amount of this
Note, and all other amounts payable thereunder, shall become immediately due and
payable without presentment, demand, protest or other notice of any kind, all
of which are hereby expressly waived, anything contained herein or in the
documents evidencing the same to the contrary notwithstanding.

 

                                 (b)          Upon
the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the
unpaid principal balance of, and all other sums payable with regard to, this
Note shall automatically and immediately become due and payable, in all cases
without any action on the part of Payee.

 

                 6.            Waivers.   Maker and all endorsers and guarantors of,
and sureties for, this Note waive presentment for payment, demand, notice of
dishonor, protest, and notice of protest with regard to the Note, all errors,
defects and imperfections in any proceedings instituted by Payee under the
terms of this Note, and all

 

 

 

benefits that might accrue to Maker by virtue
of any present or future laws exempting any property, real or personal, or any
part of the proceeds arising from any sale of any such property, from
attachment, levy or sale under execution, or providing for any stay of
execution, exemption from civil process, or extension of time for payment; and
Maker agrees that any real estate that may be levied upon pursuant to a
judgment obtained by virtue hereof, on any writ of execution issued hereon, may
be sold upon any such writ in whole or in part in any order desired by Payee.

 

                 7.            Unconditional
Liability.  Maker hereby waives all
notices in connection with the delivery, acceptance, performance, default, or
enforcement of the payment of this Note, and agrees that its liability shall be
unconditional, without regard to the liability of any other party, and shall
not be affected in any manner by any indulgence, extension of time, renewal, waiver
or modification granted or consented to by Payee, and consents to any and all
extensions of time, renewals, waivers, or modifications that may be granted by
Payee with respect to the payment or other provisions of this Note, and agrees
that additional makers, endorsers, guarantors, or sureties may become parties
hereto without notice to them or affecting their liability hereunder.

 

                8.             Notices.  Any notice called for hereunder shall be
deemed properly given if (i) sent by certified mail, return receipt requested,
(ii) personally delivered, (iii) dispatched by any form of private or
governmental express mail or delivery service providing receipted delivery,
(iv) sent by telefacsimile or (v) sent by e-mail, to the following addresses or
to such other address as either party may designate by notice in accordance
with this Section:

 

	
   

  	
   

  	
   

  
	
  If to Maker:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Services Acquisition Corporation

  	
   

  	
   

  
	
  401 East Las Olas Boulevard

  	
   

  	
   

  
	
  Suite 1140

  	
   

  	
   

  
	
  Fort Lauderdale, FL 33301

  	
   

  	
   

  
	
  Attn.: Steven R. Berrard, Chairman of the Board

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Payee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [Name]

  	
   

  	
   

  
	
  [Address]

  	
   

  	
   

  

 

Notice shall be deemed given on the earlier of
(i) actual receipt by the receiving party, (ii) the date shown on a
telefacsimile transmission confirmation, (iii) the date on which an e-mail transmission
was received by the receiving party’s on-line access provider (iv) the date
reflected on a signed delivery receipt, or (vi) two (2) Business Days following
tender of delivery or dispatch by express mail or delivery service.

 

                9.             Construction.  This Note shall be construed and enforced in
accordance with the domestic, internal law, but not the law of conflict of
laws, of the State of Florida.

 

                10.           Severability.  Any provision contained in this Note which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

                IN WITNESS WHEREOF, Maker, intending
to be legally bound hereby, has caused this Note to be duly executed by its
____________ the day and year first above written.

 

 

	
   

  	
  SERVICES ACQUISITION CORP.
  INTERNATIONAL

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  

2

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