SEC Contract Filing

Filing Date: 2019-03-21

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>9
<FILENAME>a19-6812_2ex10d3.htm
<DESCRIPTION>EX-10.3
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.3<a name="Exhibit10_410_103_050151"></a></font></b></p>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ESCROW AGREEMENT</font></b></p>
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<p style="margin:0in 0in .0001pt;text-indent:60.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This <b>ESCROW AGREEMENT</b> (this &#147;<b>Agreement</b>&#148;) is made and entered into as of March&nbsp;15, 2019 by and among Target Hospitality Corp., a corporation organized under the laws of the State of Delaware (the &#147;<b>Company</b>&#148;), Harry E. Sloan (&#147;<b>Sloan</b>&#148;), Jeff Sagansky (&#147;<b>Sagansky</b>&#148;) and Eli Baker (&#147;<b>Baker</b>&#148; and together with Sloan and Sagansky, collectively the &#147;<b>Founder Group</b>&#148;), and Continental Stock Transfer&nbsp;&amp; Trust Company, as escrow agent (the &#147;<b>Escrow Agent</b>&#148;).&#160;&#160; Each member of the Founder Group, the Company and the Escrow Agent are referred to herein individually as a &#147;<b>Party</b>&#148; and collectively as the &#147;<b>Parties</b>.&#148;</font></p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:60.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, the Founder Group collectively owns 8,050,000 shares of Class&nbsp;A common stock, par value $0.0001 (collectively, the &#147;<b>Founder Shares</b>&#148;), of the Company;</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:60.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, the Company is party to that certain Agreement and Plan of Merger dated as of November&nbsp;12, 2018, as amended by that certain Amendment to Agreement and Plan of Merger dated as of January&nbsp;4, 2019 (as the same may be further amended, modified or otherwise supplemented from time to time in accordance with its terms, the &#147;<b>Signor Merger Agreement</b>&#148;), pursuant to which the Company, through a wholly-owned subsidiary, is acquiring the combined modular workforce accommodations business of RL Signor Holdings, LLC and its subsidiaries;</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:60.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, capitalized terms used herein and not otherwise defined shall the have respective meanings assigned to them in the Signor Merger Agreement; and</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:60.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, it is a condition precedent to the Transactions contemplated by the Signor Merger Agreement that the Founder Group and the Company enter into that certain Earnout Agreement contemporaneously herewith, in the form attached hereto as <u>Exhibit&nbsp;A</u> (the &#147;<b>Earnout Agreement</b>&#148;), pursuant to which 5,015,898 of the Founder Shares, as determined based on the amount of proceeds delivered by the Company in connection with the Closing of the transactions contemplated by the Signor Merger Agreement (collectively, the &#147;<b>Restricted Shares</b>&#148;), will be required to be held in escrow pursuant to the terms of this Agreement and will be released upon the occurrence of certain triggering events as specifically set forth in the Earnout Agreement.</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:60.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW</font></b>,<b> THEREFORE</b>, in consideration of the foregoing and of the covenants and agreements hereinafter set forth, the Parties agree as follows:</p>
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<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b>Appointment</b>.&#160; The Founder Group and the Company hereby appoint the Escrow Agent as their escrow agent to hold the Restricted Shares in trust for the Founder Group, to administer and disburse the Restricted Shares and otherwise for the purposes set forth herein, and the Escrow Agent hereby accepts such appointment under the terms and conditions set forth herein.</p>
<p style="margin:0in 0in .0001pt;"><fo