4,000,000 Units HAMBRECHT ASIA ACQUISITION CORP. UNDERWRITING AGREEMENT
4,000,000
Units
XXXXXXXXX
ASIA ACQUISITION CORP.
________________,
2008
Broadband
Capital Management LLC
000
Xxxxx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
As
Representative of the Underwriters
named
on Schedule
A
hereto
Ladies
and Gentlemen:
Xxxxxxxxx
Asia Acquisition Corp., a Cayman Islands corporation (“Company”),
hereby confirms its agreement with Broadband Capital Management LLC
(“Broadband”
or
the
“Representative”)
and
with the other underwriters named on Schedule
A
hereto
for which Broadband is acting as representative (the Representative and the
other underwriters being collectively referred to herein as the “Underwriters”
or,
individually, an “Underwriter”)
as
follows:
1. Purchase
and Sale of Securities.
1.1.Firm
Securities.
1.1.1. Purchase
of Firm Units.
On the
basis of the representations and warranties herein contained, but subject to
the
terms and conditions herein set forth, the Company agrees to issue and sell
to
the several Underwriters, severally and not jointly, an aggregate of 4,000,000
units (the “Firm
Units”)
of the
Company’s securities at a purchase price (net of discounts and commissions,
$.0.24 of which shall be deposited into the Trust Account (as defined below))
of
$7.44 per Firm Unit. The Underwriters, severally and not jointly, agree to
purchase from the Company the number of Firm Units set forth opposite their
respective names on Schedule
A
attached
hereto and made a part hereof at a purchase price (net of discounts and
commissions ($0.24 of which shall be deposited into the Trust Account pursuant
to Section 1.5)) of $7.44 per Firm Unit. The Firm Units are to be offered
initially to the public (the “Offering”)
at the
offering price of $8.00 per Firm Unit. Each Firm Unit consists of one share
of
the Company’s ordinary shares, par value $.001 per share (the “Ordinary
Shares”),
and
one warrant to purchase one Ordinary Share (the “Warrant(s)”).
The
Ordinary Shares and the Warrants included in the Firm Units will not be
separately transferable until the 45th
day
after the date of the Prospectus (as defined herein), unless Broadband
determines that an earlier date is acceptable, subject to the Company’s having
filed the Current Report on Form 8-K and having issued a press release
announcing when such separate trading will begin. In no event will the Ordinary
Shares and Warrants be traded separately until the Company has filed a Current
Report on Form 8-K with the Securities and Exchange Commission (the
“Commission”)
containing an audited balance sheet reflecting its receipt of the gross proceeds
of the Offering. The Company will file the Current Report on Form 8-K promptly
upon the consummation of the Offering, which is anticipated to take place within
four business days from the date of the Prospectus. If the Over-Allotment Option
(as herein defined) is exercised following the initial filing of such Current
Report on Form 8-K, a second or amended Current Report on Form 8-K will be
filed
to provide updated financial information to reflect the exercise of the
Over-Allotment Option. Each Warrant entitles its holder to purchase one Ordinary
Share for $6.00 per share during the period commencing on the later of: (i)
the
consummation by the Company of a Business Combination (as defined below) or
(ii)
one year from the effective date (the “Effective
Date”)
of the
Registration Statement (as defined below) and terminating on the five-year
anniversary of the Effective Date. As used herein, the term “Business
Combination”
shall
mean any acquisition of, through a merger, capital stock exchange, asset
acquisition or other similar business combination, one or more businesses having
its primary operations in the Peoples Republic of China. The Company has the
right to redeem the Warrants upon not less than thirty (30) days’ written notice
at a price of $0.01 per Warrant at any time; provided, however, that the last
sale price of the Ordinary Shares has been at least $11.50 for any twenty (20)
trading days within a thirty (30) trading day period ending on the third
Business Day prior to the day on which notice is given. As used herein, the
term
“Business
Day”
shall
mean any day other than a Saturday, Sunday or any day on which national banks
in
New York, New York are not open for business.
Broadband
Capital Management LLC
,
2008
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44
1.1.2. Payment
and Delivery.
Delivery and payment for the Firm Units shall be made at 10:00 A.M., New York
time, on the third Business Day (as elsewhere defined) following the Effective
Date (or the fourth Business Day following the Effective Date, if the
Registration Statement is declared effective after 4:30 p.m.) or at such earlier
time as shall be agreed upon by the Representative and the Company at the
offices of the Representative or at such other place as shall be agreed upon
by
the Representative and the Company. The closing of the Offering is referred
to
herein as the “Closing”
and
the
hour and date of delivery and payment for the Firm Units is referred to herein
as the “Closing
Date.”
Payment for the Firm Units shall be made on the Closing Date at the
Representative’s election by wire transfer in Federal (same day) funds or by
certified or bank cashier’s check(s) in New York Clearing House funds.
$30,080,000 ($34,592,000 if the Over-allotment Option (as defined in Section
1.2) is exercised in full) of the proceeds received by the Company for the
Firm
Units and the Private Placement (as defined in Section 1.4) shall be deposited
into the trust account (the “Trust
Account”)
established by the Company for the benefit of the public shareholders and the
Underwriters, as described in the Registration Statement and pursuant to the
terms of an Investment Management Trust Agreement (the “Trust
Agreement”),
which
amount includes up to $960,000 ($0.24 per Firm Unit; $1,104,000 if the
Over-allotment Option is exercised in full, which represents $0.24 per Option
Unit (as defined below)), payable to the Underwriters as contingent compensation
upon consummation of a Business Combination (subject to Section 1.5 hereof).
The
remaining proceeds (less commissions, expense allowance and actual expense
payments or other fees payable pursuant to this Agreement), if any, shall be
paid to the order of the Company upon delivery to the Representative of
certificates (in form and substance satisfactory to the Underwriters)
representing the Firm Units (or through the facilities of the Depository Trust
Company (the “DTC”))
for
the account of the Underwriters. The Firm Units shall be registered in such
name
or names and in such authorized denominations as the Representative may request
in writing at least two Business Days prior to the Closing Date. The Company
will permit the Representative to examine and package the Firm Units for
delivery, at least one full Business Day prior to the Closing Date. The Company
shall not be obligated to sell or deliver the Firm Units except upon tender
of
payment by the Representative for all the Firm Units.
Broadband
Capital Management LLC
,
2008
Page 3
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44
1.2. Over-Allotment
Option.
1.2.1. Option
Units.
For the
purposes of covering any over-allotments in connection with the distribution
and
sale of the Firm Units, the Underwriters are hereby granted, severally and
not
jointly, an option to purchase up to an additional 600,000 units
from the Company (the “Over-allotment
Option”).
Such
additional 600,000 units shall be identical in all respects to the Firm Units
and are hereinafter referred to as “Option
Units.”
The
Firm Units and the Option Units are hereinafter collectively referred to as
the
“Units”
and
the
Units, the Ordinary Shares and the Warrants included in the Units and the
Ordinary Shares issuable upon exercise of the Warrants are hereinafter referred
to collectively as the “Public
Securities.”
The
purchase price to be paid for each Option Unit (net of discounts and
commissions) will be $7.44 per Option Unit (with $0.24 of the underwriting
discount being deposited in the Trust Account pursuant to Section 1.5). The
Option Units are to be offered initially to the public at the offering price
of
$8.00 per Option Unit.
1.2.2. Exercise
of Option.
The
Over-allotment Option granted pursuant to Section 1.2.1 hereof may be exercised
by the Representative as to all (at any time) or any part (from time to time)
of
the Option Units within 45 days after the Effective Date. The Underwriters
will
not be under any obligation to purchase any Option Units prior to the exercise
of the Over-allotment Option. The Over-allotment Option granted hereby may
be
exercised by the giving of oral notice to the Company from the Representative,
which must be confirmed in writing by overnight mail or facsimile transmission
setting forth the number of Option Units to be purchased and the date and time
for delivery of, and payment for, the Option Units, which will not be later
than
five (5) Business
Days after the date of the notice or such other time as shall be agreed upon
by
the Company and the Representative, at the offices of the Representative or
at
such other place and in such other manner as shall be agreed upon by the Company
and the Representative. If such delivery and payment for the Option Units does
not occur on the Closing Date, the date and time of the closing for such Option
Units will be as set forth in the notice (hereinafter the “Option
Closing Date”).
Upon
exercise of the Over-allotment Option, the Company will become obligated to
convey to the Underwriters, and, subject to the terms and conditions set forth
herein, the Underwriters will become obligated to purchase, the number of Option
Units specified in such notice.
1.2.3. Payment
and Delivery.
Payment
for the Option Units shall be made on the Option Closing Date at the
Representative’s election by wire transfer in Federal (same day) funds or by
certified or bank cashier’s check(s) in New York Clearing House funds, by
deposit of the sum of $7.44 per Option Unit (with $0.24 of the underwriting
discount being deposited into the Trust Account as set forth in Section 1.5)
in
the Trust Account pursuant to the Trust Agreement upon delivery to the
Representative of certificates (in form and substance satisfactory to the
Underwriters) representing the Option Units (or through the facilities of DTC)
for the account of the Underwriters. The certificates representing the Option
Units to be delivered will be in such denominations and registered in such
names
as the Representative requests not less than two Business Days prior to the
Closing Date or the Option Closing Date, as the case may be, and will be made
available to the Representative for inspection, checking and packaging at the
aforesaid office of the Company’s transfer agent or correspondent not less than
one full Business Day prior to such Closing Date or Option Closing
Date.
Broadband
Capital Management LLC
,
2008
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44
1.3.
Representative’s
Purchase Option.
1.3.1. Purchase
Option.
The
Company hereby agrees to issue and sell to the Representative (and/or their
designees) on the Closing Date an option (“Representative’s
Purchase Option”)
to
purchase up to an aggregate of 280,000 units (the “Representative’s
Units”)
for an
aggregate purchase price of $100.00. The Representative’s Purchase Option shall
be exercisable, in whole or in part, commencing on the later of the consummation
of a Business Combination or six months from the Effective Date and expiring
on
the five-year anniversary of the Effective Date at an initial exercise price
per
Representative’s Unit of $10.00, which is equal to one hundred and twenty-five
percent (125%) of the initial public offering price of a Unit. The
Representative’s Purchase Option, the Representative’s Units, the Ordinary
Shares (the “Representative’s
Shares”)
and
the Warrants (the “Representative’s
Warrants”)
included in the Representative’s Units and the Ordinary Shares issuable upon
exercise of the Representative’s Warrants are hereinafter referred to
collectively as the “Representative’s
Securities.”
The
Public Securities and the Representative’s Securities are hereinafter referred
to collectively as the “Securities.”
1.3.2. Delivery
and Payment.
Delivery and payment for the Representative’s Purchase Option shall be made on
the Closing Date. The Company shall deliver to the Representative, upon payment
therefor, certificates for the Representative’s Purchase Option in the name or
names and in such authorized denominations as the Representative may
request.
1.4 Private
Placement.
Prior
to the Effective Date, AEX Enterprises Limited, XX Xxxxxxxxx + Co., LLC, The
Xxxxxxxxx 1980 Revocable Trust, Xxxx Ventures LLC and Marbella Capital Partners
Ltd. (collectively, the “Placement
Investor”)
purchased from the Company pursuant to the Subscription Agreement (as defined
in
Section 2.25.2 hereof), 1,150,000 warrants identical to the Warrants (the
“Placement
Warrants”)
at a
purchase price of $1.00 per Placement Warrant in a private placement (the
“Private
Placement”)
intended to be exempt from registration under the Act under Section 4(2) of
the
Securities Act of 1933, as amended (the “Act”).
The
Placement Warrants and Ordinary Shares issuable upon exercise of the Placement
Warrants are hereinafter referred to collectively as the “Placement
Securities.”
No
underwriting discounts, commissions or placement fees have been or will be
payable in connection with the Private Placement. None of the Placement
Securities may be sold, assigned or transferred by the Placement Investor until
after consummation of a Business Combination. The Placement Investor shall
have
no right to any liquidation distributions with respect to any portion of the
Placement Securities in the event the Company fails to consummate a Business
Combination. The Placement Investor shall not have redemption rights with
respect to the Placement Securities.
Broadband
Capital Management LLC
,
2008
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44
1.5. Contingent
Portion of Underwriters’ Discount.
The
Representative, on behalf of itself and the other Underwriters, agrees that
3%
of the gross proceeds from the sale of the Firm Units ($960,000) and
the
sale of any Option Units (an additional $144,000 if the Over-allotment Option
is
exercised in full) (collectively, such amounts are the “Contingent
Discount”)
will be deposited in and held in the Trust Account and payable to the
Representative, in respect of any IPO Shares (defined in Section 7.6 hereof)
not
redeemed pursuant to Section 7.6 hereof upon the consummation of a Business
Combination. The Representative, on behalf of itself and the other Underwriters,
agrees that the several Underwriters shall forfeit any rights or claims to
the
Contingent Discount in respect of any IPO Shares that are redeemed pursuant
to
Section 7.6 hereof. In addition, in the event that the Company is unable to
consummate a Business Combination and Continental Stock Transfer & Trust
Company (the “Trustee”), the trustee of the Trust Account, commences liquidation
of the Trust Account as provided in the Trust Agreement, the Representative,
on
behalf of itself and the other Underwriters, agrees that (i) the several
Underwriters shall forfeit any rights or claims to the Contingent Discount;
and
(ii) the Contingent Discount, together with the all other amounts on deposit
in
the Trust Account, shall be distributed on a pro-rata basis among the holders
of
the IPO Shares.
1.6.
Working
Capital; Interest on Trust.
1.6.1. Working
Capital. Upon consummation of the Offering, $411,585 (the “Working
Capital”) of the net proceeds of the Private Placement will be released
to the Company to fund the working capital requirements of the Company.
1.6.2. Interest
Income.
Prior to the Company’s consummation of a business combination or the Company’s
liquidation, interest earned on the Trust Account may be released (i) to the
Company pay any taxes incurred by the Company, (ii) to redeeming shareholders
voting against the extended period, as more fully described in the prospectus,
and (iii) to the Company, from time to time, to fund its working capital and
general corporate requirements in an amount not to exceed $1,350,000.
2. Representations
and Warranties of the Company.
The Company represents and warrants to the Underwriters as follows:
2.1. Filing
of Registration Statement.
Broadband
Capital Management LLC
,
2008
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44
2.1.1. Pursuant
to the Act.
The Company has filed with the Commission a registration statement and an
amendment or amendments thereto, on Form S-1 (File No. 333-146147), including
any related preliminary prospectus (the “Preliminary
Prospectus”,
including any prospectus that is included in the Registration Statement
immediately prior to the effectiveness of the Registration Statement), for
the
registration of the Public Securities and the Representative’s Securities under
the Act, which registration statement and amendment or amendments have been
prepared by the Company in conformity with the requirements of the Act, and
the
rules and regulations (the “Regulations”)
of the Commission under the Act. The conditions for use of Form S-1 to register
the Offering under the Act, as set forth in the General Instructions to such
Form, have been satisfied. Except as the context may otherwise require, such
registration statement, as amended, on file with the Commission at the time
the
registration statement becomes effective (including the prospectus, financial
statements, schedules, exhibits and all other documents filed as a part thereof
or incorporated therein and all information deemed to be a part thereof as
of
such time pursuant to Rule 430A of the Regulations), is hereinafter called
the
“Registration
Statement,”
and the form of the final prospectus dated the Effective Date included in the
Registration Statement (or, if applicable, the form of final prospectus
containing information permitted to be omitted at the time of effectiveness
by
Rule 430A of the Regulations filed with the Commission pursuant to Rule 424
of
the Regulations), is hereinafter called the “Prospectus.”
For purposes of this Agreement, “Time
of Sale”,
as used in the Act, means 5:00 p.m., New York City time, on the date of this
Agreement. Prior to the Time of Sale, the Company prepared preliminary
prospectuses, dated January 31, 2008 for distribution by the Underwriters
(together the “Sale
Preliminary Prospectus”).
If the Company has filed, or is required pursuant to the terms hereof to file,
a
registration statement pursuant to Rule 462(b) under the Act registering
additional Securities of any type (a “Rule
462(b) Registration Statement”),
then, unless otherwise specified, any reference herein to the term “Registration
Statement”
shall be deemed to include such Rule 462(b) Registration Statement. Other than
a
Rule 462(b) Registration Statement, which, if filed, becomes effective upon
filing, no other document with respect to the Registration Statement has
heretofore been filed with the Commission. All of the Public Securities have
been registered under the Act pursuant to the Registration Statement or, if
any
Rule 462(b) Registration Statement is filed, will be duly registered under
the
Securities Act with the filing of such Rule 462(b) Registration Statement.
The
Registration Statement has been declared effective by the Commission on the
date
hereof.
If, subsequent to the date of this Agreement, the Company or the Representative
has determined that at the Time of Sale the Sale Preliminary Prospectus included
an untrue statement of a material fact or omitted a statement of material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading and have agreed to provide an
opportunity to purchasers of the Firm Units to terminate their old purchase
contracts and enter into new purchase contracts, then the Sale Preliminary
Prospectus will be deemed to include any additional information available to
purchasers at the time of entry into the first such new purchase
contract.
2.1.2. Pursuant
to the Exchange Act.
The Company has filed with the Commission a Form 8-A (File Number )
providing for the registration under the Securities Exchange Act of 1934, as
amended (the “Exchange
Act”),
of the Units, the Ordinary Shares and the Warrants. The registration of the
Units, Ordinary Shares and Warrants under the Exchange Act has been declared
effective by the Commission on the date hereof.
2.2. No
Stop Orders, etc.
Neither the Commission nor, to the Company’s knowledge, any foreign or state
regulatory authority has issued any order or threatened to issue any order
preventing or suspending the use of any Sale Preliminary Prospectus or
Prospectus or has instituted or, to the best of the Company’s knowledge,
threatened to institute any proceedings with respect to such an
order.
Broadband
Capital Management LLC
,
2008
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2.3. Disclosures
in Registration Statement.
2.3.1. 10b-5
Representation.
At the time of effectiveness of the Registration Statement (or at the time
any
post-effective amendment to the Registration Statement) and at all times
subsequent thereto up to the Closing Date and the Option Closing Date, if any,
the Registration Statement, the Sale Preliminary Prospectus and the Prospectus
contained or will contain all material statements that are required to be stated
therein in accordance with the Act and the Regulations, and did or will, in
all
material respects, conform to the requirements of the Act and the Regulations.
Neither the Registration Statement, the Sale Preliminary Prospectus nor any
Preliminary Prospectus or the Prospectus contained therein, nor any amendment
or
supplement thereto, on their respective dates, nor the Sale Preliminary
Prospectus as of the Time of Sale did or will contain any untrue statement
of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein (in light of the circumstances
under
which they were made), not misleading. When any Preliminary Prospectus or Sale
Preliminary Prospectus was first filed with the Commission (whether filed as
part of the Registration Statement for the registration of the Securities or
any
amendment thereto or pursuant to Rule 424(a) of the Regulations) and when any
amendment thereof or supplement thereto was first filed with the Commission,
such Preliminary Prospectus or Sale Preliminary Prospectus and any amendments
thereof and supplements thereto complied or will have been corrected in the
Sale
Preliminary Prospectus and the Prospectus to comply in all material respects
with the applicable provisions of the Act and the Regulations and did not and
will not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. The representation and warranty made in this Section 2.3.1
does
not apply to statements made or statements omitted in reliance upon and in
conformity with written information furnished to the Company with respect to
the
Underwriters by the Representative expressly for use in the Registration
Statement, the Sale Preliminary Prospectus or Prospectus or any amendment
thereof or supplement thereto, which information, it is agreed, shall consist
solely of the names of the several Underwriters and the subsections captioned
“Pricing
of Securities” and“Foreign
Regulatory Restrictions on Purchase of the Units” contained
in the section of the Prospectus entitled “Underwriting.”
2.3.2. Disclosure
of Agreements.
The agreements and documents described in the Registration Statement, the Sale
Preliminary Prospectus and the Prospectus conform to the descriptions thereof
contained therein and there are no agreements or other documents required to
be
described in the Registration Statement, the Sale Preliminary Prospectus or
the
Prospectus or to be filed with the Commission as exhibits to the Registration
Statement, that have not been so described or filed. Each agreement or other
instrument (however characterized or described) to which the Company is a party
or by which its property or business is or may be bound or affected and (i)
that
is referred to in the Registration Statement or attached as an exhibit thereto,
or (ii) is material to the Company’s business, has been duly and validly
executed by the Company, is in full force and effect in all material respects
and is enforceable against the Company and, to the Company’s knowledge, the
other parties thereto, in accordance with its terms, except (x) as such
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally, (y) as enforceability of any
indemnification or contribution provision may be limited under the foreign,
federal and state securities laws, and (z) that the remedy of specific
performance and injunctive and other forms of equitable relief may be subject
to
the equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought, and none of such agreements or instruments
has been assigned by the Company, and neither the Company nor, to the Company’s
knowledge, any other party is in breach or default thereunder and, to the
Company’s knowledge, no event has occurred that, with the lapse of time or the
giving of notice, or both, would constitute a breach or default thereunder.
To
the Company’s knowledge, performance by the Company of the material provisions
of such agreements or instruments will not result in a violation of any existing
applicable law, rule, regulation, judgment, order or decree of any governmental
agency or court, domestic or foreign, having jurisdiction over the Company
or
any of its assets or businesses, including, without limitation, those relating
to environmental laws and regulations.
Broadband
Capital Management LLC
,
2008
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2.3.3. Prior
Securities Transactions.
No securities of the Company have been sold by the Company or by or on behalf
of, or for the benefit of, any person or persons controlling, controlled by,
or
under common control with the Company since the date of the Company’s formation,
except as disclosed in the Registration Statement.
2.3.4. Regulations.
The disclosures in the Registration Statement, the Sale Preliminary Prospectus
and the Prospectus concerning the effects of foreign, federal, state and local
regulation on the Company’s business as currently contemplated are correct in
all material respects and do not omit to state a material fact necessary to
make
the statements therein, in light of the circumstances in which they were made,
not misleading.
2.4. Changes
After Dates in Registration Statement.
2.4.1. No
Material Adverse Change.
Since the respective dates as of which information is given in the Registration
Statement, the Sale Preliminary Prospectus and the Prospectus, except as
otherwise specifically stated therein: (i) there has been no material adverse
change in the condition, financial or otherwise, or business prospects of the
Company; (ii) there have been no material transactions entered into by the
Company, other than as contemplated pursuant to this Agreement; (iii) no member
of the Company’s board of directors or management has resigned from any position
with the Company and (iv) no event or occurrence has taken place which
materially impairs, or would likely materially impair, with the passage of
time,
the ability of the members of the Company’s board of directors or management to
act in their capacities with the Company as described in the Registration
Statement, the Sale Preliminary Prospectus and the Prospectus.
2.4.2. Recent
Securities Transactions, etc. Subsequent
to the respective dates as of which information is given in the Registration
Statement, the Sale Preliminary Prospectus and the Prospectus and except as
may
otherwise be indicated or contemplated herein or therein, the Company has not:
(i) issued any securities or incurred any liability or obligation, direct or
contingent, for borrowed money; or (ii) declared or paid any dividend or made
any other distribution on or in respect to its capital stock.
Broadband
Capital Management LLC
,
2008
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2.5. Independent
Accountants.
Xxxxxxxxx Xxxx & Co., PC (“Xxxxxxxxx”), whose report is filed with the
Commission as part of the Registration Statement and included in the
Registration Statement, the Sale Preliminary Prospectus and the Prospectus,
are
independent registered public accountants as required by the Act, the
Regulations and the Public Company Accounting Oversight Board (including the
rules and regulations promulgated by such entity, the “PCAOB”).
To the Company’s knowledge, Xxxxxxxxx is duly registered and in good standing
with the PCAOB. Xxxxxxxxx has not, during the periods covered by the financial
statements included in the Registration Statement, the Sale Preliminary
Prospectus and the Prospectus, provided to the Company any non-audit services,
as such term is used in Section 10A(g) of the Exchange Act.
2.6. Financial
Statements; Statistical Data.
2.6.1. Financial
Statements.
The financial statements, including the notes thereto and supporting schedules
included in the Registration Statement, the Sale Preliminary Prospectus and
the
Prospectus, fairly present the financial position and the results of operations
of the Company at the dates and for the periods to which they apply; and such
financial statements have been prepared in conformity with the Regulations,
consistently applied throughout the periods involved; and the supporting
schedules included in the Registration Statement present fairly the information
required to be stated therein in conformity with the Regulations. No other
financial statements or supporting schedules are required to be included or
incorporated by reference in the Registration Statement, the Sale Preliminary
Prospectus or the Prospectus. The Registration Statement, the Sale Preliminary
Prospectus and the Prospectus disclose all material off-balance sheet
transactions, arrangements, obligations (including contingent obligations),
and
other relationships of the Company with unconsolidated entities or other persons
that may have a material current or future effect on the Company’s financial
condition, changes in financial condition, results of operations, liquidity,
capital expenditures, capital resources, or significant components of revenues
or expenses. There are no pro forma or as adjusted financial statements which
are required to be included in
the Registration Statement, the Sale Preliminary Prospectus or the Prospectus
in
accordance with Regulation
S-X of the Regulations which have not been included as so required.
2.6.2. Statistical
Data.
The statistical, industry-related and market-related data included in the
Registration Statement, the Sale Preliminary Prospectus and/or the Prospectus
are based on or derived from sources which the Company reasonably and in good
faith believes are reliable and accurate, and such data agree with the sources
from which they are derived.
2.7. Authorized
Capital; Options, etc.
The Company had at the date or dates indicated in each of the Registration
Statement, the Sale Preliminary Prospectus and the Prospectus, as the case
may
be, duly authorized, issued and outstanding capitalization as set forth in
the
Registration Statement, the Sale Preliminary Prospectus and the Prospectus.
Based on the assumptions stated in the Registration Statement, the Sale
Preliminary Prospectus and the Prospectus, the Company will have on the Closing
Date the adjusted stock capitalization set forth therein. Except as set forth
in, or contemplated by, the Registration Statement, the Sale Preliminary
Prospectus and the Prospectus, on the Effective Date and on the Closing Date
and
the Option Closing Date, if any, there will be no options, warrants, or other
rights to purchase or otherwise acquire any authorized, but unissued Ordinary
Shares or any security convertible into Ordinary Shares, or any contracts or
commitments to issue or sell Ordinary Shares or any such options, warrants,
rights or convertible securities.
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Capital Management LLC
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2008
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2.8. Valid
Issuance of Securities, etc.
2.8.1. Outstanding
Securities.
All issued and outstanding Ordinary Shares of the Company have been duly
authorized and validly issued and are fully paid and non-assessable; the holders
thereof have no rights of rescission with respect thereto, and are not subject
to personal liability by reason of being such holders; and none of such
securities were issued in violation of the preemptive rights of any holders
of
any security of the Company or similar contractual rights granted by the
Company. The outstanding Ordinary Shares conform to the descriptions thereof
contained in the Registration Statement, the Sale Preliminary Prospectus and
the
Prospectus. All offers and sales of the outstanding Ordinary Shares of the
Company were at all relevant times either registered under the Act and the
applicable state securities or Blue Sky laws or, based in part on the
representations and warranties of the purchasers of such Ordinary Shares, exempt
from such registration requirements.
2.8.2. Securities
Sold.
The Securities have been duly authorized and reserved for issuance and when
issued and paid for, will be validly issued, fully paid and non-assessable;
the
holders thereof are not and will not be subject to personal liability by reason
of being such holders; the Securities are not and will not be subject to the
preemptive rights of any holders of any security of the Company or similar
contractual rights granted by the Company; and all corporate action required
to
be taken for the authorization, issuance and sale of the Securities has been
duly and validly taken. The Securities conform in all material respects to
the
descriptions thereof contained in the Registration Statement, the Sale
Preliminary Prospectus and the Prospectus, as the case may be. When issued,
the
Representative’s Purchase Option, the Representative’s Warrants and the Warrants
will constitute valid and binding obligations of the Company to issue and sell,
upon exercise thereof and payment of the respective exercise prices therefor,
the number and type of securities of the Company called for thereby in
accordance with the terms thereof and such Representative’s Purchase Option,
Representative’s Warrants and Warrants are enforceable against the Company in
accordance with their respective terms, except: (i) as such enforceability
may
be limited by bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally; (ii) as enforceability of any indemnification or
contribution provision may be limited under foreign, federal and state
securities laws; and (iii) that the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to the equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought. The Ordinary Shares issuable upon exercise of the
Representative’s Purchase Option, the Representative’s Warrants and the Warrants
have been reserved for issuance upon the exercise of the Warrant upon payment
of
the consideration therefore, and when issued in accordance with the terms
thereof, will be duly and validly authorized, validly issued, fully paid and
non-assessable; the holders thereof are not and will not be subject to personal
liability by reason of being such holders.
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Capital Management LLC
,
2008
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2.8.3. Placement
Warrants.
The Placement Warrants constitute valid and binding obligations of the Company
to issue and sell, upon exercise thereof and payment of the respective exercise
prices therefor, the number and type of securities of the Company called for
thereby in accordance with the terms thereof, and such Placement Warrants are
enforceable against the Company in accordance with their respective terms,
except: (i) as such enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally; (ii) as
enforceability of any indemnification or contribution provision may be limited
under foreign, federal and state securities laws; and (iii) that the remedy
of
specific performance and injunctive and other forms of equitable relief may
be
subject to the equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought. The Ordinary Shares issuable
upon
exercise of the Placement Warrants have been reserved and, when issued in
accordance with the terms of the Placement Warrants, will be duly and validly
authorized, validly issued, fully paid and non-assessable, and the holders
thereof are not and will not be subject to personal liability by reason of
being
such holders.
2.8.4. No
Integration.
Neither the Company nor any of its affiliates has, prior to the date hereof,
made any offer or sale of any securities which are required to be “integrated”
pursuant to the Act or the Regulations with the offer and sale of the Securities
pursuant to the Registration Statement.
2.9. Registration
Rights of Third Parties.
Except as set forth in the Registration Statement, the Sale Preliminary
Prospectus and the Prospectus, no holders of any securities of the Company
or
any rights exercisable for or convertible or exchangeable into securities of
the
Company have the right to require the Company to register any such securities
of
the Company under the Act or to include any such securities in a registration
statement to be filed by the Company.
2.10. Validity
and Binding Effect of Agreements.
This Agreement, the Warrant Agreement (as defined in Section 2.24 hereof),
the
Trust Agreement, the Services Agreement (as defined in Section 3.7.2 hereof),
the Subscription Agreement (as defined in Section 2.25.2 hereof), the
Representative’s Purchase Option (as defined in Section 1.3.1), the Escrow
Agreement (as defined in Section 2.25.3 hereof) and the Registration Rights
Agreement by and among the Company and the Initial Shareholders (the
“Registration
Rights Agreement”)
have been duly and validly authorized, executed and delivered by the Company
and
constitute valid and binding agreements of the Company, enforceable against
the
Company in accordance with their respective terms, except: (i) as such
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally; (ii) as enforceability of
any indemnification or contribution provision may be limited under foreign,
federal and state laws; and (iii) that the remedy of specific performance and
injunctive and other forms of equitable relief may be subject to the equitable
defenses and to the discretion of the court before which any proceeding therefor
may be brought.
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Capital Management LLC
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2008
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2.11. No
Conflicts, etc.
The execution, delivery, and performance by the Company of this Agreement,
the
Warrant Agreement, the Trust Agreement, the Services Agreement, the Subscription
Agreement, the Representative’s Purchase Option, the Escrow Agreement and the
Registration Rights Agreement, the consummation by the Company of the
transactions herein and therein contemplated and the compliance by the Company
with the terms hereof and thereof do not and will not, with or without the
giving of notice or the lapse of time or both: (i) result in a breach or
violation of, or conflict with any of the terms and provisions of, or constitute
a default under, or result in the creation, modification, termination or
imposition of any lien, charge or encumbrance upon any property or assets of
the
Company pursuant to the terms of any agreement, obligation, condition, covenant
or instrument to which the Company is a party or bound or to which its property
is subject except pursuant to the Trust Agreement; (ii) result in any violation
of the provisions of the Amended and Restated Memorandum and Articles of
Association or the Bylaws of the Company; or (iii) violate any existing
applicable statute, law, rule, regulation, judgment, order or decree of any
governmental agency or court, domestic or foreign, having jurisdiction over
the
Company or any of its properties or business.
2.12. No
Defaults; Violations.
No material default or violation exists in the due performance and observance
of
any term, covenant or condition of any material license, contract, indenture,
mortgage, deed of trust, note, loan or credit agreement, or any other agreement
or instrument evidencing an obligation for borrowed money, or any other material
agreement or instrument to which the Company is a party or by which the Company
may be bound or to which any of the properties or assets of the Company is
subject. The Company is not in violation of any term or provision of its Amended
and Restated Memorandum and Articles of Association or Bylaws or in violation
of
any material franchise, license, permit, applicable law, rule, regulation,
judgment or decree of any governmental agency or court, domestic or foreign,
having jurisdiction over the Company or any of its properties or
businesses.
2.13. Corporate
Power; Licenses; Consents.
2.13.1. Conduct
of Business.
The Company has all requisite corporate power and authority, and has all
necessary authorizations, approvals, orders, licenses, certificates and permits
of and from all governmental regulatory officials and bodies that it needs
as of
the date hereof to conduct its business for the purposes described in the
Registration Statement, the Sale Preliminary Prospectus and the Prospectus.
The
disclosures in the Registration Statement, the Sale Preliminary Prospectus
and
the Prospectus concerning the effects of foreign, federal, state and local
regulation on this Offering and the Company’s business purpose as currently
contemplated are correct in all material respects and do not omit to state
a
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading. Since its formation, the Company has conducted no business
and
has incurred no liabilities other than in connection with and in furtherance
of
the Offering.
2.13.2. Transactions
Contemplated Herein.
The Company has all corporate power and authority to enter into this Agreement
and to carry out the provisions and conditions hereof, and all consents,
authorizations, approvals and orders required in connection therewith have
been
obtained. No consent, authorization or order of, and no filing with, any court,
government agency or other body, foreign or domestic, is required for the valid
issuance, sale and delivery, of the Securities and the consummation of the
transactions and agreements contemplated by this Agreement, the Warrant
Agreement, the Trust Agreement, the Subscription Agreement, the Services
Agreement, the Representative’s Purchase Option, the Registration Rights
Agreement and the Escrow Agreement and as contemplated by the Registration
Statement, the Sale Preliminary Prospectus and Prospectus, except with respect
to applicable foreign, federal and state securities laws and the rules and
regulations promulgated by the Financial Industry Regulatory Authority, Inc.
(“FINRA”).
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Capital Management LLC
,
2008
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2.14. D&O
Questionnaires.
All information contained in the questionnaires (the “Questionnaires”)
completed by each of the Company’s officers and directors (the “Directors/Officers”)
and Initial Shareholders (as defined below) immediately prior to the Offering
and provided to the Underwriters as well as the biographies attached as exhibits
to each person’s Insider Letter (as defined in Section 2.25.1) is true and
correct and the Company has not become aware of any information which would
cause the information disclosed in the questionnaires completed by the
Directors/Officers and Initial Shareholders to become inaccurate and
incorrect.
2.15. Litigation;
Governmental Proceedings.
There is no action, suit, proceeding, inquiry, arbitration, investigation,
litigation or governmental proceeding pending or, to the best of the Company’s
knowledge, threatened against, or involving the Company or, to the best of
the
Company’s knowledge, any of the Directors/Officers or any of the shareholders of
the Company immediately prior to the Offering ( the “Initial
Shareholders”)
which has not been disclosed in the Registration Statement, the Questionnaires,
the Sale Preliminary Prospectus and the Prospectus.
2.16. Good
Standing.
The Company has been duly organized and is validly existing as a corporation
and
is in good standing under the laws of its jurisdiction of incorporation and
is
duly qualified to do business and is in good standing as a foreign corporation
in each jurisdiction in which its ownership or lease of property or the conduct
of business requires such qualification, except where the failure to qualify
would not have a material adverse effect on the Company, its business, assets
or
operations.
2.17. No
Contemplation of a Business Combination.
Prior to the date hereof, no Company Affiliate (as hereinafter defined) has,
and
as of the Closing, the Company and such Company Affiliates will not have: (a)
had any specific Business Combination under consideration or contemplation;
(b)
directly or indirectly, contacted any potential target business or their
representatives or had any discussions, formal or otherwise, with respect to
effecting any potential Business Combination with the Company or taken any
measure, directly or indirectly to locate a target business; or (c) engaged
or
retained any agent or other representative to identify or locate any suitable
acquisition candidate for the Company.
2.18. Transactions
Affecting Disclosure to FINRA.
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Capital Management LLC
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2008
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2.18.1. Except
as described in the Registration Statement, the Sale Preliminary Prospectus
and
the Prospectus, there are no claims, payments, arrangements, agreements or
understandings relating to the payment of a finder’s, consulting or origination
fee by the Company or any Company Affiliate with respect to the sale of the
Securities hereunder or any other arrangements, agreements or understandings
of
the Company or, to the Company’s knowledge, any Initial Shareholder that may
affect the Underwriters’ compensation, as determined by FINRA.
2.18.2. The
Company has not made any direct or indirect payments (in cash, securities or
otherwise) to: (i) any person, as a finder’s fee, consulting fee or otherwise,
in consideration of such person raising capital for the Company or introducing
to the Company persons who raised or provided capital to the Company; (ii)
to
any FINRA member; or (iii) to any person or entity that has any direct or
indirect affiliation or association with any FINRA member, within the twelve
months prior to the Effective Date, other than payments to Broadband in
connection with the Offering.
2.18.3. Other
than Xxxxxx Eu, Xxxxxxx Xxxxxx, Xxx Xxxx, X.X. Xxxxxxxxx + Co., LLC, AEX and
the
0000 Xxxxxxxxx Trust no Directors/Officers, or any direct or indirect beneficial
owner of any class of the Company’s securities, including the Initial
Shareholders and holders of securities purchased in the Private Placement
(whether debt or equity, registered or unregistered, regardless of the time
acquired or the source from which derived) (any such individual or entity,
a
“Company Affiliate”) is a member, a person associated, or
affiliated with a member of FINRA.
2.18.4. Other
than Xxxxxx Eu, Xxxxxxx Xxxxxx, Xxx Xxxx, X.X. Xxxxxxxxx + Co., LLC, AEX and
the
0000 Xxxxxxxxx Trust, no Company Affiliate is an owner of stock or other
securities of any member of FINRA (other than securities purchased on the open
market).
2.18.5. Other
than Xxxxxxx Xxxxxxxxx, no Company Affiliate has made a subordinated loan to
any
member of FINRA.
2.18.6. No
proceeds from the sale of the Public Securities (excluding underwriting
compensation), the Representative’s Securities or Placement Securities will be
paid to any FINRA member, or any persons associated or affiliated with a member
of FINRA, except as specifically authorized herein.
2.18.7. Except
with respect to Broadband, the Company has not issued any warrants or other
securities, or granted any options, directly or indirectly to anyone who is
a
potential underwriter in the Offering or a related person (as defined by FINRA
rules) of such an underwriter within the 180-day period prior to the initial
filing date of the Registration Statement.
2.18.8. No
person to whom securities of the Company have been privately issued within
the
180-day period prior to the initial filing date of the Registration Statement
has any relationship or affiliation or association with any member of FINRA.
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Capital Management LLC
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2008
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2.18.9. No
FINRA member intending to participate in the Offering has a conflict of interest
with the Company. For this purpose, a “conflict of interest” exists when a
member of FINRA and/or its associated persons, parent or affiliates in the
aggregate beneficially own 10% or more of the Company’s outstanding subordinated
debt or common equity, or 10% or more of the Company’s preferred equity.
“Members participating in the Offering” include managing agents, syndicate group
members and all dealers which are members of FINRA.
2.18.10. Except
with respect to Broadband in connection with the Offering, the Company has
not
entered into any agreement or arrangement (including, without limitation, any
consulting agreement or any other type of agreement) during the 180-day period
prior to the initial filing date of the Registration Statement, which
arrangement or agreement provides for the receipt of any item of value and/or
the transfer or issuance of any warrants, options, or other securities from
the
Company to a FINRA member, any person associated with a member (as defined
by
FINRA rules), any potential underwriters in the Offering and/or any related
persons.
2.19. Taxes.
2.19.1.
There are no transfer taxes or other similar fees or charges under Cayman
Islands law, U.S. federal law or the laws of any U.S. state or any political
subdivision thereof, required to be paid in connection with the execution and
delivery of this Agreement or the issuance or sale by the Company of the
Securities.
2.19.2.
The Company has filed all non-U.S., U.S. federal, state and local tax returns
that are required to be a filed or has requested extensions thereof, except
in
any case in which the failure to so file would not have a material adverse
effect on the condition (financial or otherwise), prospects, earnings, business
or properties of the Company, taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set forth in or
contemplated in the Registration Statement, the Sale Preliminary Prospectus
or
Prospectus and has paid all taxes required to be paid by it and any other
assessment, fine or penalty levied against it, to the extent that any of the
foregoing in due and payable, except for any such assessment, fine or penalty
that is currently being contested in good faith or as would not have a material
adverse effect on the condition (financial or otherwise), prospects, earnings,
business or properties of the Company, whether or not arising from transactions
in the ordinary course of business, except as set forth in or contemplated
by
the Registration Statement, the Sale Preliminary Prospectus or Prospectus.
2.20. Foreign
Corrupt Practices Act.
Neither the Company nor any of the Company Affiliates or any other person acting
on behalf of the Company is aware of or has taken any action, directly or
indirectly, that: (i) would result in a violation by such persons of the Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder (the “FCPA”)
or otherwise subject the Company to any damage or penalty in any civil, criminal
or governmental litigation or proceeding; (ii) if not done in the past, might
have had a material adverse effect on the Company or the assets, business or
operations of the Company as reflected in any of the financial statements
contained in the Registration Statement and the Prospectus or (iii) if not
continued in the future, might adversely affect the assets, business, operations
or prospects of the Company, including, without limitation, given or agreed
to
give any money, gift or similar benefit (other than legal price concessions
to
customers in the ordinary course of business) to any customer, supplier,
employee or agent of a customer or supplier, or official or employee of any
governmental agency or instrumentality of any government (domestic or foreign)
or any political party or candidate for office (domestic or foreign) or any
political party or candidate for office (domestic or foreign) or other person
who was, is, or may be in a position to help or hinder the business of the
Company (or assist it in connection with any actual or proposed transaction).
The Company’s internal accounting controls and procedures are sufficient to
cause the Company to comply with the Foreign Corrupt Practices Act of 1977,
as
amended.
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Capital Management LLC
,
2008
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2.21. Currency
and Foreign Transactions Reporting Act.
The operations of the Company are and have been conducted at all times in
compliance with applicable financial recordkeeping and reporting requirements
of
the Currency and Foreign Transaction Reporting Act of 1970, as amended, the
money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively, the
“Money
Laundering Laws”)
and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company with respect to the
Money Laundering Laws is pending or, to the best knowledge of the Company,
threatened.
2.22. Patriot
Act.
Neither the Company nor any Company Affiliate has violated: (i) the Bank Secrecy
Act, as amended, or (iii) the Uniting and Strengthening of America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT
ACT)
Act of 2001, and/or the rules and regulations promulgated under any such law,
or
any successor law.
2.23. Officers’
Certificate.
Any certificate signed by any duly authorized officer of the Company and
delivered to the Representative or to its counsel shall be deemed a
representation and warranty by the Company to the Underwriters as to the matters
covered thereby.
2.24. Warrant
Agreement.
The Company has entered into a warrant agreement with respect to the Warrants
and the Placement Warrants with Continental Stock Transfer & Trust Company
substantially in the form filed as an exhibit to the Registration Statement
(the
“Warrant
Agreement”).
2.25. Agreements
With Company Affiliates.
2.25.1. Insider
Letters.
The Company has caused to be duly executed legally binding and enforceable
agreements (except (i) as such enforceability may be limited by bankruptcy,
insolvency, reorganization or similar laws affecting creditors’ rights
generally, (ii) as enforceability of any indemnification, contribution or
noncompete provision may be limited under foreign, federal and state securities
laws, and (iii) that the remedy of specific performance and injunctive and
other
forms of equitable relief may be subject to the equitable defenses and to the
discretion of the court before which any proceeding therefor may be brought)
annexed as exhibits to the Registration Statement (the “Insider
Letter”),
pursuant to which each of the Company Affiliates agrees to certain matters,
including but not limited to, the voting of Ordinary Shares held by them and
certain matters described as being agreed to by them under the “Proposed
Business” Section of the Registration Statement, the Sale Preliminary Prospectus
and Prospectus.
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Capital Management LLC
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2008
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2.25.2. Subscription
Agreement.
The Placement Investor has executed and delivered a subscription agreement,
annexed as an exhibit to the Registration Statement (the “Subscription
Agreement”),
pursuant to which the Placement Investor has, among other things, purchased
1,150,000 Placement Warrants in the Private Placement. Pursuant to the
Subscription Agreement, the Placement Investor has waived any and all rights
and
claims that it may have to any proceeds, and any interest thereon, held in
the
Trust Account in respect of the Placement Securities in the event that a
Business Combination is not consummated and the Trust Account is liquidated
in
accordance with the terms of the Trust Agreement.
2.25.3. Escrow
Agreement.
The Company has caused the Initial Shareholders, to the extent they own Ordinary
Shares and Warrants of the Company prior to the Offering, to enter into an
escrow agreement (the “Escrow
Agreement”)
with Continental Stock Transfer & Trust Company (the “Escrow
Agent”)
substantially in the form filed as an exhibit to the Registration Statement
whereby the Ordinary Shares and Warrants owned by such parties prior to the
Offering will be held in escrow by the Escrow Agent for a period (the
“Escrow
Period”)
commencing on the Effective Date and (i) for the Ordinary Shares, expiring
on
the first anniversary of the consummation of the Business Combination; and
(ii)
for the Warrants, expiring upon consummation of the Business Combination. During
the Escrow Period, such parties shall be prohibited from selling or otherwise
transferring such securities (except (a) to spouses and children of such parties
and trusts established for their benefit or (b) after the consummation of a
Business Combination, and solely with regards to the Ordinary Shares, to
participate in a transaction whereby all the outstanding Ordinary Shares of
the
Company are exchanged or converted into cash or another entity’s securities;
provided, however, such Initial Shareholders shall retain the right to vote
such
Ordinary Shares, as applicable. To the Company’s knowledge, the Escrow Agreement
is enforceable against each of the Initial Shareholders and will not, with
or
without the giving of notice or the lapse of time or both, result in a breach
of, or conflict with, any of the terms and provisions of, or constitute a
default under, an agreement or instrument to which any of the Initial
Shareholders is a party. The Escrow Agreement shall not be amended, modified
or
otherwise changed without the prior written consent of Broadband, such consent
not to be unreasonably withheld.
2.25.4.
No Director/Officer (as defined below) is subject to any non-competition
agreement or non-solicitation agreement with any employer or prior employer
which could materially affect his ability to be and act in the capacity of
a
Director/Officer of the Company.
2.26. Investment
Management Trust Agreement.
The Company has entered into the Trust Agreement with respect to certain
proceeds of the Offering and the Private Placement substantially in the form
filed as an exhibit to the Registration Statement.
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Capital Management LLC
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2008
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2.27. Covenants
Not to Compete.
No Company Affiliate is subject to any noncompetition agreement or
non-solicitation agreement with any employer or prior employer which could
materially affect his ability to be a director, officer or employee of the
Company.
2.28. Investments.
No more than 45% of the “value” (as defined in Section 2(a)(41) of the
Investment Company Act of 1940 (“Investment
Company Act”))
of the Company’s total assets (exclusive of cash items and “Government
Securities,” as defined in Section 2(a)(16) of the Investment Company Act)
consist of, and no more than 45% of the Company’s net income after taxes is
derived from, securities other than Government Securities.
2.29. Subsidiaries.
The Company does not own an interest in any corporation, partnership, limited
liability company, joint venture, trust or other business entity.
2.30. Related
Party Transactions.
No relationship, direct or indirect, exists between or among any of the Company
or any Company Affiliate, on the one hand, and any director, officer,
shareholder, customer or supplier of the Company or any Company Affiliate,
on
the other hand, which is required by the Act, the Exchange Act or the
Regulations to be described in the Registration Statement, the Sale Preliminary
Prospectus and the Prospectus which is not so described and described as
required. There are no outstanding loans, advances (except normal advances
for
business expenses in the ordinary course of business) or guarantees of
indebtedness by the Company to or for the benefit of any of the officers or
directors of the Company or any of their respective family members, except
as
disclosed in the Registration Statement, the Sale Preliminary Prospectus and
the
Prospectus. The Company has not extended or maintained credit, arranged for
the
extension of credit, or renewed an extension of credit, in the form of a
personal loan to or for any director or officer of the Company.
2.31. No
Influence.
The Company has not offered, or caused the Underwriters to offer, the Firm
Units
to any person or entity with the intention of unlawfully influencing: (a) a
customer or supplier of the Company or any affiliate of the Company to alter
the
customer’s or supplier’s level or type of business with the Company or such
affiliate or (b) a journalist or publication to write or publish favorable
information about the Company or any such affiliate.
2.32. Xxxxxxxx-Xxxxx.
The Company is in material compliance with the provisions of the Xxxxxxxx-Xxxxx
Act of 2002, as amended, and the rules and regulations promulgated thereunder
and related or similar rules and regulations promulgated by any governmental
or
self regulatory entity or agency, that are applicable to it as of the date
hereof.
2.33. Quotation
of the Public Securities on the OTC Bulletin Board.
As of the Effective Date, the Public Securities have been authorized for
quotation on the OTC
Bulletin Board
and, to the Company’s knowledge, no proceedings have been instituted or
threatened which would effect, and no event or circumstance has occurred as
of
the Effective Date which is reasonably likely to effect, the quotation of the
Public Securities on the OTC
Bulletin Board.
2.34. Definition
of “Knowledge”.
As used in herein, the term “knowledge
of the Company”
(or similar language) shall mean the knowledge of the officers and directors
of
the Company who are named in the Sale Preliminary Prospectus and Prospectus,
with the assumption that such officers and directors shall have made reasonable
and diligent inquiry of the matters presented.
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Capital Management LLC
,
2008
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3. Covenants
of the Company.
The Company covenants and agrees as follows:
3.1. Amendments
to Registration Statement.
The Company will deliver to the Representative, prior to filing, any amendment
or supplement to the Registration Statement or Prospectus proposed to be filed
after the Effective Date and shall not file any such amendment or supplement
to
which the Representative shall reasonably object in writing.
3.2. Federal
Securities Laws.
3.2.1. Compliance.
During the time when a prospectus is required to be delivered under the Act,
the
Company will use all reasonable efforts to comply with all requirements imposed
upon it by the Act, the Regulations and the Exchange Act and by the regulations
under the Exchange Act, as from time to time in force, so far as necessary
to
permit the continuance of sales of or dealings in the Public Securities in
accordance with the provisions hereof and the Prospectus. If at any time when
a
Prospectus relating to the Public Securities is required to be delivered under
the Act, any event shall have occurred as a result of which, in the opinion
of
counsel for the Company or counsel for the Underwriters, the Sale Preliminary
Prospectus and the Prospectus, as then amended or supplemented includes an
untrue statement of a material fact or omits to state any material fact required
to be stated therein or necessary to make the statements therein, in light
of
the circumstances under which they were made, not misleading, or if it is
necessary during such period to amend the Registration Statement or amend or
supplement the Sale Preliminary Prospectus and Prospectus to comply with the
Act, the Company will notify the Representative promptly and prepare and file
with the Commission, subject to Section 3.1 hereof, an appropriate amendment
to
the Registration Statement or amendment or supplement to the Sale Preliminary
Prospectus and Prospectus (at the expense of the Company) so as to correct
such
statement or omission or effect such compliance.
3.2.2. Filing
of Final Prospectus.
The Company will file the Prospectus (in form and substance satisfactory to
the
Representative) with the Commission pursuant to the requirements of Rule 424
of
the Regulations.
3.2.3. Exchange
Act Registration.
For a period of five years from the Effective Date, or until such earlier time
upon which the Company is required to be liquidated and dissolved, the Company
will use its best efforts to maintain the registration of the Units, Ordinary
Shares and Warrants (in the case of the Warrants, until the Warrants expire
and
are no longer exercisable) under the provisions of the Exchange Act. The Company
will not deregister the Units, Ordinary Shares or Warrants under the Exchange
Act without the prior written consent of Broadband.
3.2.4. Xxxxxxxx-Xxxxx
Compliance.
As soon as it is legally required to do so, the Company shall take all actions
necessary to obtain and thereafter maintain material compliance with each
applicable provision of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and
regulations promulgated thereunder and related or similar rules and regulations
promulgated by any other governmental or self regulatory entity or agency with
jurisdiction over the Company.
Broadband
Capital Management LLC
,
2008
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44
3.3. Blue
Sky Filing.
Unless the Securities are listed or quoted, as the case may be, on the New
York
Stock Exchange, the Nasdaq Global Market or AMEX, the Company will endeavor
in
good faith, in cooperation with the Representative, at or prior to the time
the
Registration Statement becomes effective, to qualify the Public Securities
for
offering and sale under the securities laws of such jurisdictions as the
Representative may reasonably designate, provided that no such qualification
shall be required in any jurisdiction where, as a result thereof, the Company
would be subject to service of general process or to taxation as a foreign
corporation doing business in such jurisdiction. In each jurisdiction where
such
qualification shall be effected, the Company will, unless the Representative
agrees that such action is not at the time necessary or advisable, use all
reasonable efforts to file and make such statements or reports at such times
as
are or may be required by the laws of such jurisdiction.
3.4. Delivery
of Materials to Underwriters.
The Company will deliver to each of the several Underwriters, without charge
and
from time to time during the period when a prospectus is required to be
delivered under the Act or the Exchange Act, such number of copies of each
Sale
Preliminary Prospectus, the Prospectus and all amendments and supplements to
such documents as such Underwriters may reasonably request and, as soon as
the
Registration Statement or any amendment or supplement thereto becomes effective,
deliver to the Representative two manually executed Registration Statements,
including exhibits, and all post-effective amendments thereto and copies of
all
exhibits filed therewith or incorporated therein by reference and all manually
executed consents of certified experts.
3.5. Effectiveness
and Events Requiring Notice to the Representative.
The Company will use its best efforts to cause the Registration Statement to
remain effective and will notify the Representative immediately and confirm
the
notice in writing: (i) of the effectiveness of the Registration Statement and
any amendment thereto; (ii) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement, or any
post-effective amendment thereto or preventing or suspending the use of any
Preliminary Prospectus or the Prospectus or of the initiation, or the
threatening, of any proceeding for that purpose; (iii) of the issuance by any
foreign or state securities commission of any proceedings for the suspension
of
the qualification of the Public Securities for offering or sale in any
jurisdiction or of the initiation, or the threatening, of any proceeding for
that purpose; (iv) of the mailing and delivery to the Commission for filing
of
any amendment or supplement to the Registration Statement or Prospectus; (v)
of
the receipt of any comments or request for any additional information from
the
Commission; and (vi) of the happening of any event during the period described
in Section 3.4 hereof that, in the judgment of the Company or its counsel,
makes
any statement of a material fact made in the Registration Statement, the Sale
Preliminary Prospectus or the Prospectus untrue or that requires the making
of
any changes in the Registration Statement, the Sale Preliminary Prospectus
and
Prospectus in order to make the statements therein, (with respect to the
Prospectus and the Sale Preliminary Prospectus and in light of the circumstances
under which they were made), not misleading. If the Commission or any foreign
or
state securities commission shall enter a stop order or suspend such
qualification at any time, the Company will make every reasonable effort to
obtain promptly the lifting of such order.
Broadband
Capital Management LLC
,
2008
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44
3.6. Review
of Financial Statements.
Until the earlier of five years from the Effective Date, or until such earlier
upon which the Company is required to be liquidated and dissolved, the Company,
at its expense, shall cause its regularly engaged independent certified public
accountants to review (but not audit) the Company’s financial statements for
each of the first three fiscal quarters prior to the announcement of quarterly
financial information, the filing of the Company’s Form 10-Q quarterly report
and the mailing of quarterly financial information to shareholders.
3.7. Affiliated
Transactions.
3.7.1. Business
Combinations.
The Company will not consummate a Business Combination with any entity which
is
affiliated with any Company Affiliate unless the Company obtains an opinion
from
an independent investment banking firm that the Business Combination is fair
to
the Company’s shareholders from a financial perspective.
3.7.2. Administrative
Services.
The Company has entered into an agreement (the “Services
Agreement”)
with Xxxxxxxxx Eu Capital Management LLC, in the form filed as an exhibit to
the
Registration Statement pursuant to which Xxxxxxxxx Eu Capital Management LLC
will make available to the Company general and administrative services including
office space, utilities, receptionist and secretarial support for the Company’s
use for $7,500 per month.
3.7.3. Compensation.
Except as otherwise set forth in this Section 3.7, the Company shall not pay
any
Initial Shareholder or Company Affiliate or any of their affiliates any fees
or
compensation from the Company, for services rendered to the Company prior to,
or
in connection with, this Offering or the consummation of a Business Combination;
provided
that
the Initial Shareholders shall be entitled to reimbursement from the Company
for
their out-of-pocket expenses incurred on the Company’s behalf, which includes an
aggregate of $290,000 in non-interest bearing unsecured loans which were made
to
the Company prior to the effective date of the Registration Statement, and
are
due within 15 days following the Company’s consummation of the Offering, and
other expenses incurred by them in connection with seeking and consummating
a
Business Combination.
3.8. Secondary
Market Trading and Standard & Poor’s.
In the event the Public Securities are not listed on the New York Stock Exchange
or AMEX or quoted on the Nasdaq Global Market: (a) the Company will apply to
be
included in Standard and Poor’s Daily News and Corporation Records Corporate
Descriptions for a period commencing on the Effective Date and expiring on
the
fifth anniversary of the consummation of a Business Combination, (b) the Company
shall take such steps as may be necessary to obtain a secondary market trading
exemption for the Company’s securities in such jurisdictions as may be requested
by the Representative; provided, however, no qualification shall be required
in
any jurisdiction where, as a result thereof, the Company would be subject to
service of general process or to taxation as a foreign corporation doing
business in such jurisdiction. The Company shall also take such other action
as
may be reasonably requested by the Representative to obtain a secondary market
trading exemption I such other states as may be requested by the Representative.
Broadband
Capital Management LLC
,
2008
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44
3.9. Financial
Public Relations Firm.
Promptly after the execution of a definitive agreement for a Business
Combination, the Company shall retain a financial public relations firm
reasonably acceptable to the Representative for a term to be agreed upon by
the
Company and the Representative.
3.10. Reports
to the Representative.
3.10.1. Periodic
Reports, etc.
For a period of five years from the Effective Date or until such earlier time
upon which the Company is required to be liquidated and dissolved, the Company
will furnish to the Representative (Attn: Xxxxx X. Xxxxxx, Managing Director)
and its counsel copies of such financial statements and other periodic and
special reports as the Company from time to time furnishes generally to holders
of any class of its securities, and promptly furnish to the Representative:
(i)
a copy of each periodic report the Company shall be required to file with the
Commission; (ii) a copy of every press release and every news item and article
with respect to the Company or its affairs which was released by the Company;
(iii) a copy of each Form 8-K or Schedules 13D, 13G, 14D-1 or 13E-4 received
or
prepared by the Company; (iv) five copies of each registration statement filed
by the Company with the Commission under the Securities Act; (v) a copy of
monthly statements, if any, setting forth such information regarding the
Company’s results of operations and financial position (including balance sheet,
profit and loss statements and data regarding outstanding purchase orders)
as is
regularly prepared by management of the Company; and (vi) such additional
documents and information with respect to the Company and the affairs of any
future subsidiaries of the Company as the Representative may from time to time
reasonably request; provided that the Representative shall sign, if requested
by
the Company, a Regulation FD compliant confidentiality agreement which is
reasonably acceptable to the Representative and its counsel in connection with
the Representative’s receipt of such information. Documents filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval
System (“XXXXX”)
shall be deemed to have been delivered to the Representative pursuant to this
section.
3.10.2. Transfer
Sheets.
For a period of five years following the Effective Date or until such earlier
time upon which the Company is required to be liquidated, the Company shall
retain a transfer and warrant agent acceptable to the Representative (the
“Transfer
Agent”)
and during the two (2) year period following the Closing Date, will furnish
to
the Underwriters at the Company’s sole cost and expense such transfer sheets of
the Company’s securities as the Representative may request, including the daily
and monthly consolidated transfer sheets of the Transfer Agent and DTC.
Continental Stock Transfer & Trust Company is acceptable to the
Underwriters. In addition, for a period of two (2) years from the Closing Date,
the Company, at its expense, shall provide the Representative a subscription
to
the Company’s weekly Depository Transfer Company Security Position
Reports.
Broadband
Capital Management LLC
,
2008
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44
3.10.3. Secondary
Market Trading Survey.
So long as the Public Securities are not listed or quoted, as the case may
be,
on the New York Stock Exchange, AMEX or the Nasdaq Global Market, or until
such
earlier time upon which the Company is required to be liquidated, the Company
shall engage Ellenoff Xxxxxxxx & Schole LLP (“EG&S”),
for an initial fee of $5,000, plus expenses, payable on the Closing Date, to
deliver and update to the Underwriters on a timely basis, but in any event
on
the Effective Date and at the beginning of each fiscal quarter for an additional
$5,000 per quarter, plus expenses, a written report detailing those states
in
which the Public Securities may be traded in non-issuer transaction under the
Blue Sky laws of the fifty States (the “Secondary
Market Trading Survey”).
3.11. Disqualification
of Form F-1 and F-3 and/or S-1 and S-3.
For a period equal to seven
years from the date hereof, the Company will not take any action or actions
which may prevent or disqualify the Company’s use of Form F-1 or F-3 and/or Form
S-1 and S-3 (or other appropriate form) for the registration of the Warrants
under the Act.
3.12. Payment
of Expenses.
3.12.1. General
Expenses Related to the Offering. The Company hereby agrees to pay on each
of the Closing Date and the Option Closing Date, if any, to the extent not
paid
at Closing Date, all fees and expenses incident to the performance of the
obligations of the Company under this Agreement, including, but not limited
to:
(i) the preparation, printing, filing and mailing (including the payment of
postage with respect to such mailing) of the Registration Statement, the Sale
Preliminary Prospectus, and the final Prospectus and mailing of this Agreement
and related documents, including the cost of all copies thereof and any
amendments thereof or supplements thereto supplied to the Underwriters in
quantities as may be required by the Underwriters; (ii) the printing, engraving,
issuance and delivery of the Units, the Ordinary Shares and the Warrants
included in the Units, including any transfer or other taxes payable thereon;
(iii) the qualification of the Public Securities under state or foreign
securities or Blue Sky laws, including the costs of printing and mailing the
“Preliminary Blue Sky Memorandum,” and all amendments and supplements thereto,
fees in an amount equal to $35,000 and disbursements for the Representatives’
counsel retained for such purpose, and a fee of $5,000 payable to the
Representative’s counsel for the preparation of the Secondary Market Trading
Survey; (iv) filing fees, costs and expenses incurred in registering the
Offering with FINRA (including all COBRADesk fees); (v) fees and disbursements
of the transfer and warrant agent; (vi) costs of placing “tombstone”
advertisements in the The Wall Street Journal, the New York
Times and a third publication to be selected by the Representative, in an
amount not to exceed $25,000; (vii) the Company’s own expenses associated with
“due diligence” meetings; (viii) the preparation, binding and delivery of
leather bound volumes in quantity, form and style reasonably satisfactory to
the
Representative and transaction lucite cubes or similar commemorative items
in a
style and quantity as reasonably requested by the Representative; (ix) all
Company costs and expenses associated with “road show” marketing and “due
diligence” trips for the Company’s management to meet with prospective
investors, including without limitation, all travel, food and lodging expenses
associated with such trips incurred by the Company; and (x) all other costs
and
expenses incident to the performance of its obligations hereunder which are
not
otherwise specifically provided for in this Section 3.12.1. The Representative
may deduct from the net proceeds of the Offering payable to the Company on
the
Closing Date, or the Option Closing Date, if any, the expenses set forth above
to be paid by the Company to the Representative and others. The Company also
agrees that it will engage and pay for, at the Company’s expense, an
investigative search firm to conduct an investigation of the principals of
the
Company (such investigation to cost no more than $25,000 in the aggregate).
If
the Offering is not consummated for any reason whatsoever, then the Company
shall reimburse the Representative in full for its out of pocket accountable
expenses actually incurred by the Representative, including, without limitation,
its legal fees (which legal fees shall not exceed $50,000 less any amounts
previously paid).
Broadband
Capital Management LLC
,
2008
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3.12.2. Fee
on Business Combination.
Upon consummation of a Business Combination, the Company further agrees that
in
addition to the expenses payable pursuant to Sections 3.12.1, it will pay to
the
Underwriters and the Representative the Contingent Discount, subject to Section
1.5 hereof.
3.13. Application
of Net Proceeds.
The Company will apply the net proceeds from the Private Placement and this
Offering received by it in a manner substantially consistent with the
application described under the caption “Use Of Proceeds” in the
Prospectus.
3.14. Delivery
of Earnings Statements to Security Holders.
The Company will make generally available to its security holders as soon as
practicable, but not later than the first day of the fifteenth full calendar
month following the Effective Date, an earnings statement (which need not be
certified by independent public or independent certified public accountants
unless required by the Act or the Regulations, but which shall satisfy the
provisions of Rule 158(a) under Section 11(a) of the Act) covering a period
of
at least twelve consecutive months beginning after the Effective
Date.
3.15. Notice
to FINRA.
3.15.1. Business
Combination.
In the event any person or entity (regardless of any FINRA affiliation or
association) is engaged to assist the Company in its search for a merger
candidate or to provide any other merger and acquisition services, the Company
will provide the following information (the “Merger
Information”)
to FINRA and Representative prior to the consummation of the Business
Combination: (i) complete details of all services and copies of agreements
governing such services; and (ii) justification as to why the person or entity
providing the merger and acquisition services should not be considered an
“underwriter and related person” with respect to the Company’s initial public
offering, as such term is defined in Rule 2710 of FINRA’s Conduct Rules. The
Company also agrees that proper disclosure of such arrangement or potential
arrangement will be made in the proxy statement which the Company will file
for
purposes of soliciting shareholder approval for the Business Combination. Upon
the Company’s delivery of the Merger Information to the Representative, the
Company hereby expressly authorizes the Representative to provide such
information directly to FINRA as a result of representations the Representative
has made to FINRA in connection with the Offering.
Broadband
Capital Management LLC
,
2008
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44
3.15.2. Broker/Dealer.
In
the event the Company intends to register as a broker/dealer, merge with or
acquire a registered broker/dealer, or otherwise become a member of FINRA,
it
shall promptly notify FINRA.
3.16. Stabilization.
Neither the Company, nor, to its knowledge, any of its employees, directors
or
shareholders (without the consent of Broadband) has taken or will take, directly
or indirectly, any action designed to or that has constituted or that might
reasonably be expected to cause or result in, under the Exchange Act, or
otherwise, stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Units.
3.17. Internal
Controls.
The Company will maintain a system of internal accounting controls sufficient
to
provide reasonable assurances that: (i) transactions are executed in accordance
with management’s general or specific authorization; (ii) transactions are
recorded as necessary in order to permit preparation of financial statements
in
accordance with generally accepted accounting principles and to maintain
accountability for assets; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.
3.18. Accountants.
For a period of five years from the Effective Date or until such earlier time
upon which the Company is required to be liquidated, the Company shall retain
Xxxxxxxxx or other independent public accountants reasonably acceptable to
Broadband.
3.19. Form
8-K’s.
The Company shall, on the date hereof, retain its independent public accountants
to audit the financial statements of the Company as of the Closing Date (the
“Audited
Financial Statements”)
reflecting the receipt by the Company of the proceeds of the Offering and
Private Placement as well as the proceeds from the exercise of the
Over-allotment Option if such exercise has occurred on the date of the
Prospectus. Within three (3) days of the Effective Date, the Company shall
file
a Current Report on Form 8-K (or Form 6-K, if applicable) with the Commission,
which Report shall contain the Company’s Audited Financial Statements. The
Company shall make a similar filing (without financial statements) upon the
Underwriters’ exercise of the Over-allotment Option, if any.
3.20. FINRA.
The Company shall advise FINRA if it is aware that any 5% or greater shareholder
of the Company becomes an affiliate or associated person of a FINRA member
participating in the distribution of the Securities.
3.21. Corporate
Proceedings.
All corporate proceedings and other legal matters necessary to carry out the
provisions of this Agreement and the transactions contemplated hereby shall
have
been done to the reasonable satisfaction to counsel for the
Underwriters.
3.22. Investment
Company.
The Company shall cause the proceeds of the Offering to be held in the Trust
Account to be invested only in “government securities” with specific maturity
dates or in money market funds meeting certain conditions under Rule 2a-7
promulgated under the Investment Company Act as set forth in the Trust Agreement
and disclosed in the Prospectus. The Company will otherwise conduct its business
in a manner so that it will not become subject to the Investment Company Act.
Furthermore, once the Company consummates a Business Combination, it will be
engaged in a business other than that of investing, reinvesting, owning, holding
or trading securities.
Broadband
Capital Management LLC
,
2008
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3.23. Business
Combination Announcement.
Within five (5) Business Days following the consummation by the Company of
a
Business
Combination, the Company shall cause an announcement (“Business
Combination Announcement”)
to be placed, at its cost, in The Wall Street Journal, The New York Times and
a
third publication to be selected by the Representatives announcing the
consummation of the Business Combination and indicating the Representatives
were
the managing underwriters in the Offering. The Company shall supply the
Representatives with a draft of the Business
Combination Announcement and provide the Representatives with reasonable advance
opportunity to comment thereon. The Company will not place the Business
Combination Announcement without the final approval of the Representatives,
which approval will not be unreasonably withheld.
3.24. Colorado
Trust Filing.
In the event the Securities are registered in the State of Colorado, the Company
will cause a Colorado Form ES to be filed with the Commissioner of the State
of
Colorado no less than 10 days prior to the distribution of the Trust Fund in
connection with a Business Combination and will do all things necessary to
comply with Section 00-00-000 and Rule 51-3.4 of the Colorado Securities
Act.
3.25. Press
Releases.
The Company agrees that it will not issue press releases or engage in any other
publicity, without Broadband’s prior written consent (not to be unreasonably
withheld), for a period of ninety (90) days after the Closing Date.
3.26. Insurance. The
Company will maintain insurance of the types and in the amounts which are
customary for companies engaged in similar businesses, including, but not
limited to: (i) directors’ and officers’ insurance (including insurance covering
the Company, its directors and officers for liabilities or losses arising in
connection with this Offering, including, without limitation, liabilities or
losses arising under the Act, the Exchange Act, the Rules and Regulations and
applicable foreign securities laws), (ii) insurance covering real and personal
property owned or leased by the Company against theft, damage, destruction,
acts
of vandalism and all other risks customarily insured against, and (iii) business
interruption insurance. The Company has not been refused any insurance coverage
sought or applied for, and the Company has no reason to believe that it will
not
be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business at a cost that would not have a material adverse
effect. The Company shall be the sole beneficiary of each such policy.
Broadband
Capital Management LLC
,
2008
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3.27. Electronic
Prospectus. The
Company shall cause to be prepared and delivered to the Representative, at
its
expense, within one (1) Business Day from the effective date of this Agreement,
an Electronic Prospectus
to be used by the Underwriters in connection with the Offering. As used herein,
the term “Electronic
Prospectus”
means a form of prospectus, and any amendment or supplement thereto, that meets
each of the following conditions: (i) it shall be encoded in an electronic
format, satisfactory to the Representative, that may be transmitted
electronically by the other Underwriters to offerees and purchasers of the
Units
for at least the period during which a Prospectus relating to the Units is
required to be delivered under the Securities Act; (ii) it shall disclose the
same information as the paper prospectus and prospectus filed pursuant to XXXXX,
except to the extent that graphic and image material cannot be disseminated
electronically, in which case such graphic and image material shall be replaced
in the electronic prospectus with a fair and accurate narrative description
or
tabular representation of such material, as appropriate; and (iii) it shall
be
in or convertible into a paper format or an electronic format, satisfactory
to
the Representative, that will allow recipients thereof to store and have
continuously ready access to the prospectus at any future time, without charge
to such recipients (other than any fee charged for subscription to the Internet
as a whole and for on-line time). The Company hereby confirms that it has
included or will include in the Prospectus filed pursuant to XXXXX or otherwise
with the Commission and in the Registration Statement at the time it was
declared effective an undertaking that, upon receipt
of a request by an investor or his or her representative within the period
when
a prospectus relating to the Units is required to be delivered under the
Securities Act, the Company shall transmit or cause to be transmitted promptly,
without charge, a paper copy of the Prospectus.
3.28. Reservation
of Shares.
The Company will reserve and keep available that maximum number of its
authorized but unissued securities which are issuable upon exercise of the
Warrants, the Placement Warrants and the Representative’s Securities outstanding
from time to time.
3.29. Intentionally
Omitted.
3.30. Private
Placement Proceeds.
Immediately prior to the Effective Date, the Private Placement shall be
consummated and prior to the Closing Date, the Placement Investor shall deposit
the full purchase price of $1,150,000 into the Trust Account and shall provide
Broadband with evidence of the same.
3.31. No
Amendment to Charter. The
Company covenants and agrees that it will not seek to amend or modify paragraph
170 of its Amended and Restated Memorandum and Articles of Association during
the Business Acquisition Period (as such term is defined in the Amended and
Restated Memorandum and Articles of Association).
3.31.1. The
Company acknowledges that the purchasers of the Firm Units and the Option Units
in the Offering shall be deemed to be third party beneficiaries of this Section
3.31.
3.31.2. The
Representative and the Company specifically agree that, except pursuant to
its
own terms, this Section 3.31 shall not be modified or amended in any
way.
3.32. Future
Financings.
The Company agrees that neither it, nor any successor or subsidiary of the
Company, will consummate any public or private equity or debt financing prior
to
or in connection with the consummation of a Business Combination, unless all
investors in such financing expressly waive, in writing, any rights in or claims
against the Trust Fund.
Broadband
Capital Management LLC
,
2008
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3.33. OTC
Bulletin Board Quotation.
The Company will use its best efforts to maintain the quotation of the Public
Securities on the OTC Bulletin Board or a national securities exchange
acceptable to the Representative for a period of at least five (5) years from
the date of this Agreement.
4. Conditions
of Underwriters’ Obligations.
The obligations of the several Underwriters to purchase and pay for the Units,
as provided herein, shall be subject to the continuing accuracy of the
representations and warranties of the Company as of the date hereof and as
of
each of the Closing Date and the Option Closing Date, if any, to the accuracy
of
the statements of officers of the Company made pursuant to the provisions hereof
and to the performance by the Company of its obligations hereunder and to the
following conditions:
4.1. Regulatory
Matters.
4.1.1. Effectiveness
of Registration Statement.
The Registration Statement shall have become effective not later than 5:00
p.m.,
New York time, on the date of this Agreement or such later date and time as
shall be consented to in writing by the Representative, and, at each of the
Closing Date and the Option Closing Date, no stop order suspending the
effectiveness of the Registration Statement shall have been issued and no
proceedings for the purpose shall have been instituted or shall be pending
or
contemplated by the Commission and any request on the part of the Commission
for
additional information shall have been complied with to the reasonable
satisfaction of EG&S, as counsel to the Underwriters.
4.1.2. FINRA
Clearance.
By the Effective Date, the Representative shall have received clearance from
FINRA as to the amount of compensation allowable or payable to the Underwriters
as described in the Registration Statement.
4.1.3. No
Commission Stop Order.
At each of the Closing Date and the Option Closing Date, the Commission has
not
issued any order or threatened to issue any order preventing or suspending
the
use of any Preliminary Prospectus, the Prospectus or any part thereof, and
has
not instituted or threatened to institute any proceedings with respect to such
an order.
4.1.4. No
Blue Sky Stop Orders.
No order suspending the sale of the Units in any jurisdiction designated by
the
Representative pursuant to Section 3.3 hereof shall have been issued on either
the Closing Date or the Option Closing Date, and no proceedings for that purpose
shall have been instituted or shall be contemplated.
4.1.5. OTC
Bulletin Board Quotation.
The Public Securities shall have been approved for quotation on OTC Bulletin
Board.
4.2. Company
Counsel Matters.
Broadband
Capital Management LLC
,
2008
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4.2.1. Closing
Date Opinion of Counsel.
On the Closing Date, the Representative shall have received the favorable
opinion of Loeb & Loeb (“Loeb”)
and Xxxxxxx, Xxxx and Xxxxxxx (“Xxxxxxx”),
Cayman Islands counsel for the Company, dated the Closing Date, addressed to
the
Representative and in forms attached as Exhibits A and B hereto.
The
opinion of counsel(s) shall further include a statement to the effect that
such
counsel(s) participated in conferences with officers and other representatives
of the Company, representatives of the independent public accountants for the
Company and representatives of the Underwriters at which the contents of the
Registration Statement, the Sale Preliminary Prospectus, the Prospectus, and
related matters were discussed and although such counsel is not passing upon
and
does not assume any responsibility for the accuracy, completeness or fairness
of
the statements contained in the Registration Statement, the Sale Preliminary
Prospectus or the Prospectus (except as otherwise set forth in this opinion),
no
facts have come to the attention of such counsel which lead it to believe that
the Registration Statement, the Sale Preliminary Prospectus or the Prospectus
or
any amendment or supplement thereto, as of the date of such opinion or in the
case of the Sale Preliminary Prospectus, as of the date thereof, contained
any
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein, in light
of
the circumstances under which they were made, not misleading (it being
understood that such counsel need express no opinion with respect to the
financial statements and schedules and other financial and statistical data
included in the Registration Statement, the Sale Preliminary Prospectus or
the
Prospectus).
4.2.2. Option
Closing Date Opinion of Counsel.
On the Option Closing Date, if any, the Representative shall have received
the
favorable opinion of Loeb and/or Xxxxxxx, dated the Option Closing Date,
addressed to the Representative and in form and substance reasonably
satisfactory to the counsel to the Representative, confirming as of the Option
Closing Date, the statements made by Loeb and/or Xxxxxxx in its opinion
delivered on the Closing Date.
4.2.3 Reliance.
In rendering such opinion, such counsel may rely: (i) as to matters involving
the application of laws other than the laws of the United States and
jurisdictions in which they are admitted, to the extent such counsel deems
proper and to the extent specified in such opinion, if at all, upon an opinion
or opinions (in form and substance reasonably satisfactory to the
Representative) of other counsel reasonably acceptable to the Representative,
familiar with the applicable laws; and (ii) as to matters of fact, to the extent
they deem proper, on certificates or other written statements of officers of
the
Company and officers of departments of various jurisdiction having custody
of
documents respecting the corporate existence or good standing of the Company,
provided that copies of any such statements or certificates shall be delivered
to the Underwriters’ counsel if requested. The opinion of counsel for the
Company and any opinion relied upon by such counsel for the Company shall
include a statement to the effect that it may be relied upon by counsel for
the
Underwriters in its opinion delivered to the Underwriters.
4.3. Cold
Comfort Letter.
At the time this Agreement is executed, and at each of the Closing Date and
the
Option Closing Date, if any, the Representative shall have received a letter,
addressed to the Representative and in form and substance satisfactory in all
respects (including the non-material nature of the changes or decreases, if
any,
referred to in clause (iii) below) to the Representative and to EG&S from
Xxxxxxxxx dated, respectively, as of the date of this Agreement and as of the
Closing Date and the Option Closing Date, if any:
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(i) Confirming
that they are independent accountants with respect to the Company within the
meaning of the Act and the applicable Regulations and that they have not, during
the periods covered by the financial statements included in the Registration
Statement, the Sale Preliminary Prospectus and the Prospectus, provided to
the
Company any non-audit services, as such term is used in Section 10A(g) of the
Exchange Act;
(ii) Stating
that in their opinion the financial statements of the Company included in the
Registration Statement and the Prospectus comply as to form in all material
respects with the applicable accounting requirements of the Act and the
published Regulations thereunder;
(iii) Stating
that, on the basis of a limited review which included a reading of the latest
available unaudited interim financial statements of the Company (with an
indication of the date of the latest available unaudited interim financial
statements), a reading of the latest available minutes of the shareholders
and
board of directors and the various committees of the board of directors,
consultations with officers and other employees of the Company responsible
for
financial and accounting matters and other specified procedures and inquiries,
nothing has come to their attention which would lead them to believe that:
(a)
the unaudited financial statements of the Company included in the Registration
Statement, the Sale Preliminary Prospectus and the Prospectus do not comply
as
to form in all material respects with the applicable accounting requirements
of
the Act and the Regulations or are not fairly presented in conformity with
generally accepted accounting principles applied on a basis substantially
consistent with that of the audited financial statements of the Company included
in the Registration Statement, the Sale Preliminary Prospectus and the
Prospectus; or (b) at a date not later than five days prior to the Effective
Date, Closing Date or Option Closing Date, as the case may be, there was any
change in the capital stock or long-term debt of the Company, or any decrease
in
the shareholders’ equity of the Company as compared with amounts shown in the
December 31, 2007 balance sheet included in the Registration Statement, the
Sale
Preliminary Prospectus and the Prospectus, other than as set forth in or
contemplated by the Registration Statement, the Sale Preliminary Prospectus
and
the Prospectus, or, if there was any decrease, setting forth the amount of
such
decrease, and (c) during the period from January 1, 2008 to a specified date
not
later than two (2) days prior to the Effective Date, Closing Date or Option
Closing Date, as the case may be, there was any decrease in revenues, net
earnings or net earnings per Ordinary Share, in each case as compared with
the
corresponding period in the preceding year and as compared with the
corresponding period in the preceding quarter, other than as set forth in or
contemplated by the Registration Statement and the Prospectus, or, if there
was
any such decrease, setting forth the amount of such decrease;
(iv)
Setting
forth, at a date not later than five days prior to the Effective Date, the
amount of liabilities of the Company;
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(v)
Stating
that they have compared specific dollar amounts, numbers of shares, percentages
of revenues and earnings, statements and other financial information pertaining
to the Company set forth in the Registration Statement, the Sale Preliminary
Prospectus and the Prospectus in each case to the extent that such amounts,
numbers, percentages, statements and information may be derived from the general
accounting records, including work sheets, of the Company and excluding any
questions requiring an interpretation by legal counsel, with the results
obtained from the application of specified readings, inquiries and other
appropriate procedures (which procedures do not constitute an examination in
accordance with generally accepted auditing standards) set forth in the letter
and found them to be in agreement;
(vi) Stating
that they have not during the immediately preceding five year period brought
to
the attention of the Company’s management any reportable condition related to
internal structure, design or operation as defined in the Statement on Auditing
Standards No. 60 “Communication of Internal Control Structure Related Matters
Noted in an Audit,” in the Company’s internal controls; and
(vii) Statements
as to such other matters incident to the transaction contemplated hereby as
the
Representative may reasonably request.
4.4. Officers’
Certificates.
4.4.1. Officers’
Certificate.
At each of the Closing Date and the Option Closing Date, if any, the
Representative shall have received a certificate of the Company signed by the
Chairman of the Board or the President and the Secretary or Assistant Secretary
of the Company, dated the Closing Date or the Option Closing Date, as the case
may be, respectively, to the effect that the Company has performed all covenants
and complied with all conditions required by this Agreement to be performed
or
complied with by the Company prior to and as of the Closing Date, or the Option
Closing Date, as the case may be, and that the conditions set forth in Section
4.5 hereof have been satisfied as of such date and that, as of Closing Date
and
the Option Closing Date, as the case may be, the representations and warranties
of the Company set forth in Section 2 hereof are true and correct. In addition,
the Representative will have received such other and further certificates of
officers of the Company as the Representative may reasonably
request.
4.4.2. Secretary’s
Certificate.
At each of the Closing Date and the Option Closing Date, if any, the
Representative shall have received a certificate of the Company signed by the
Secretary or Assistant Secretary of the Company, dated the Closing Date or
the
Option Date, as the case may be, respectively, certifying: (i) that the By-Laws
and Amended and Restated Memorandum and Articles of Association of the Company
are true and complete, have not been modified and are in full force and effect;
(ii) that the resolutions relating to the public offering contemplated by this
Agreement are in full force and effect and have not been modified; (iii) all
correspondence between the Company or its counsel and the Commission; and (iv)
as to the incumbency of the officers of the Company. The documents referred
to
in such certificate shall be attached to such certificate.
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4.5. No
Material Changes.
Prior to and on each of the Closing Date and the Option Closing Date, if any:
(i) there shall have been no material adverse change or development involving
a
prospective material adverse change in the condition or prospects or the
business activities, financial or otherwise, of the Company from the latest
dates as of which such condition is set forth in the Registration Statement,
the
Sale Preliminary Prospectus and Prospectus; (ii) no action suit or proceeding,
at law or in equity, shall have been pending or threatened against the Company
or any Company Affiliate before or by any court or foreign, federal or state
commission, board or other administrative agency wherein an unfavorable
decision, ruling or finding may materially adversely affect the business,
operations, prospects or financial condition or income of the Company, except
as
set forth in the Registration Statement, the Sale Preliminary Prospectus and
Prospectus; (iii) no stop order shall have been issued under the Act and no
proceedings therefor shall have been initiated or threatened by the Commission;
and (iv) the Registration Statement, the Sale Preliminary Prospectus and the
Prospectus and any amendments or supplements thereto shall contain all material
statements which are required to be stated therein in accordance with the Act
and the Regulations and shall conform in all material respects to the
requirements of the Act and the Regulations, and none of the Registration
Statement, the Sale Preliminary Prospectus or the Prospectus, or any amendment
or supplement thereto shall contain any untrue statement of a material fact
or
omits to state any material fact required to be stated therein or necessary
to
make the statements therein (in the case of the Sale Preliminary Prospectus
and
Prospectus, in light of the circumstances under which they were made), not
misleading.
4.6. Delivery
of Agreements.
4.6.1. Effective
Date Deliveries.
On the Effective Date, the Company shall have delivered to the Representative
executed copies of the Escrow Agreement, the Trust Agreement, the Warrant
Agreement, the Services Agreement and all of the Insider Letters.
4.6.2. Closing
Date Deliveries.
On the Closing Date, the Company shall have delivered to the Representative,
the
Representative’s Purchase Option.
5. Indemnification.
5.1. Indemnification
of Underwriters.
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5.1.1. General.
Subject to the conditions set forth below, the Company agrees to indemnify
and
hold harmless each of the Underwriters and each dealer selected by the
Representative that participates in the offer and sale of the Units (each a
“Selected
Dealer”)
and each of their respective directors, officers and employees and each person,
if any, who controls any such Underwriter or dealer (“controlling
person”)
within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
Act, and its counsel, against any and all loss, liability, claim, 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, commenced or threatened, or any claim whatsoever, whether
arising out of any action between any of the Underwriters and the Company or
between any of the Underwriters and any third party or otherwise) to which
they
or any of them may become subject under the Act, the Exchange Act or any other
foreign, federal, state or local statute, law, rule, regulation or ordinance
or
at common law or otherwise or under the laws, rules and regulation of foreign
countries, arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in (i) any Preliminary Prospectus, the
Registration Statement, or the Prospectus (as from time to time each may be
amended and supplemented); (ii) in any post-effective amendment or amendments
or
any new registration statement and prospectus relating to any the securities
of
the Company described herein; or (iii) any application or other document or
written communication (in this Section 5 collectively called “application”)
executed by the Company or based upon written information furnished by the
Company in any jurisdiction in order to qualify the Units under the securities
laws thereof or filed with the Commission, any foreign or state securities
commission or agency, the American Stock Exchange, the OTC Bulletin Board or
Nasdaq or any securities exchange; or the omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, unless such statement or omission was made in reliance
upon and in conformity with written information furnished to the Company with
respect to an Underwriter by or on behalf of such Underwriter expressly for
use
in any Preliminary Prospectus, the Registration Statement the Prospectus or
any
amendment or supplement thereof, or in any application, as the case may be,
which furnished written information, it is expressly agreed, consists solely
of
the information described in the last sentence of Section 2.3.1. The Company
agrees promptly to notify the Representative of the commencement of any
litigation or proceedings against the Company or any of its officers, directors
or controlling persons in connection with the issue and sale of the Securities
or in connection with the Preliminary Prospectus, the Registration Statement
or
the Prospectus.
5.1.2. Procedure.
If any action is brought against an Underwriter or controlling person in respect
of which indemnity may be sought against the Company pursuant to Section 5.1.1,
such Underwriter shall promptly notify the Company in writing of the institution
of such action and the Company shall assume the defense of such action,
including the employment and fees of counsel (subject to the reasonable approval
of such Underwriter) and payment of actual expenses. Such Underwriter or
controlling person shall have the right to employ its or their own counsel
in
any such case, but the fees and expenses of such counsel shall be at the expense
of such Underwriter or such controlling person unless: (i) the employment of
such counsel at the expense of the Company shall have been authorized in writing
by the Company in connection with the defense of such action; (ii) the Company
shall not have employed counsel to have charge of the defense of such action;
or
(iii) such indemnified party or parties shall have reasonably concluded that
there may be defenses available to it or them which are different from or
additional to those available to the Company (in which case the Company shall
not have the right to direct the defense of such action on behalf of the
indemnified party or parties), in any of which events the reasonable fees and
expenses of not more than one additional firm of attorneys selected by the
Underwriter and/or controlling person shall be borne by the Company.
Notwithstanding anything to the contrary contained herein, if the Underwriter
or
controlling person shall assume the defense of such action as provided above,
the Company shall have the right to approve the terms of any settlement of
such
action which approval shall not be unreasonably withheld.
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5.2. Indemnification
of the Company.
Each Underwriter, severally and not jointly, agrees to indemnify and hold
harmless the Company, its directors, officers, and employees and agents who
control the Company within the meaning of Section 15 of the Act or Section
20 of
the Exchange Act, and its counsel, against any and all loss, liability, claim,
damage and expense described in the foregoing indemnity from the Company to
the
several Underwriters, as incurred, but only with respect to untrue statements
or
omissions, or alleged untrue statements or omissions made in the Registration
Statement, any Preliminary Prospectus, the Prospectus or any amendment or
supplement thereto, or in any application, in reliance upon, and in strict
conformity with, written information furnished to the Company with respect
to
such Underwriter by or on behalf of the Underwriter expressly for use in such
Registration Statement, Preliminary Prospectus, the Prospectus or any amendment
or supplement thereto or in any such application, which furnished written
information, it is expressly agreed, consists solely of the information
described in the last sentence of Section 2.3.1. In case any action shall be
brought against the Company or any other person so indemnified based on any
Preliminary Prospectus, the Registration Statement, the Prospectus or any
amendment or supplement thereto or any application, and in respect of which
indemnity may be sought against any Underwriter, such Underwriter shall have
the
rights and duties given to the Company, and the Company and each other person
so
indemnified shall have the rights and duties given to the several Underwriters
by the provisions of Section 5.1.2.
5.3. Contribution.
5.3.1. Contribution
Rights.
In order to provide for just and equitable contribution under the Act in any
case in which (i) any person entitled to indemnification under this Section
5
makes claim for indemnification pursuant hereto but it is judicially determined
(by the entry of a final judgment or decree by a court of competent jurisdiction
and the expiration of time to appeal or the denial of the last right of appeal)
that such indemnification may not be enforced in such case notwithstanding
the
fact that this Section 5 provides for indemnification in such case, or (ii)
contribution under the Act, the Exchange Act or otherwise may be required on
the
part of any such person in circumstances for which indemnification is provided
under this Section 5, then, and in each such case, the Company and the
Underwriters shall contribute to the aggregate losses, liabilities, claims,
damages and expenses of the nature contemplated by said indemnity agreement
incurred by the Company and the Underwriters, as incurred, in such proportions
that the Underwriters are responsible for that portion represented by the
percentage that the underwriting discount appearing on the cover page of the
Prospectus bears to the initial offering price appearing thereon and the Company
is responsible for the balance; provided, that, no person guilty of a fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. Notwithstanding the provisions of this Section 5.3.1, no
Underwriter shall be required to contribute any amount in excess of the amount
by which the total price at which the Public Securities underwritten by it
and
distributed to the public were offered to the public exceeds the amount of
any
damages that such Underwriter has otherwise been required to pay in respect
of
such losses, liabilities, claims, damages and expenses. For purposes of this
Section, each director, officer and employee of an Underwriter or the Company,
as applicable, and each person, if any, who controls an Underwriter or the
Company, as applicable, within the meaning of Section 15 of the Act shall have
the same rights to contribution as the Underwriters or the Company, as
applicable.
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5.3.2. Contribution
Procedure.
Within fifteen days after receipt by any party to this Agreement (or its
representative) of notice of the commencement of any action, suit or proceeding,
such party will, if a claim for contribution in respect thereof is to be made
against another party (“contributing
party”),
notify the contributing party of the commencement thereof, but the omission
to
so notify the contributing party will not relieve it from any liability which
it
may have to any other party other than for contribution hereunder. In case
any
such action, suit or proceeding is brought against any party, and such party
notifies a contributing party or its representative of the commencement thereof
within the aforesaid fifteen days, the contributing party will be entitled
to
participate therein with the notifying party and any other contributing party
similarly notified. Any such contributing party shall not be liable to any
party
seeking contribution on account of any settlement of any claim, action or
proceeding effected by such party seeking contribution on account of any
settlement of any claim, action or proceeding effected by such party seeking
contribution without the written consent of such contributing party. The
contribution provisions contained in this Section are intended to supersede,
to
the extent permitted by law, any right to contribution under the Act, the
Exchange Act or otherwise available. The Underwriters’ obligations to contribute
pursuant to this Section 5.3 are several and not joint.
6. Default
by an Underwriter.
6.1. Default
Not Exceeding 10% of Firm Units or Option Units.
If any Underwriter or Underwriters shall default in its or their obligations
to
purchase the Firm Units or the Option Units, if the over-allotment option is
exercised, hereunder, and if the number of the Firm Units or Option Units with
respect to which such default relates does not exceed in the aggregate 10%
of
the number of Firm Units or Option Units that all Underwriters have agreed
to
purchase hereunder, then such Firm Units or Option Units to which the default
relates shall be purchased by the non-defaulting Underwriters in proportion
to
their respective commitments hereunder.
6.2. Default
Exceeding 10% of Firm Units or Option Units.
In the event that the default addressed in Section 6.1 above relates to more
than 10% of the Firm Units or Option Units, the Representative may, in its
discretion, arrange for the Representative or for another party or parties
to
purchase such Firm Units or Option Units to which such default relates on the
terms contained herein. If within one (1) Business Day after such default
relating to more than 10% of the Firm Units or Option Units the Representative
does not arrange for the purchase of such Firm Units or Option Units, then
the
Company shall be entitled to a further period of one (1) Business Day within
which to procure another party or parties satisfactory to the Representative
to
purchase said Firm Units or Option Units on such terms. In the event that
neither the Representative nor the Company arrange for the purchase of the
Firm
Units or Option Units to which a default relates as provided in this Section
6,
this Agreement may be terminated by the Representative or the Company without
liability on the part of the Company (except as provided in Sections 3.12 and
5
hereof) or the several Underwriters (except as provided in Section 5 hereof);
provided,
however,
that if such default occurs with respect to the Option Units, this Agreement
will not terminate as to the Firm Units; and provided
further
that nothing herein shall relieve a defaulting Underwriter of its liability,
if
any, to the other several Underwriters and to the Company for damages occasioned
by its default hereunder.
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6.3. Postponement
of Closing Date.
In the event that the Firm Units or Option Units to which the default relates
are to be purchased by the non-defaulting Underwriters, or are to be purchased
by another party or parties as aforesaid, the Representative or the Company
shall have the right to postpone the Closing Date or Option Closing Date for
a
reasonable period, but not in any event exceeding five (5) Business Days, in
order to effect whatever changes may thereby be made necessary in the
Registration Statement and/or the Prospectus, as the case may be, or in any
other documents and arrangements, and the Company agrees to file promptly any
amendment to, or to supplement, the Registration Statement and/or the
Prospectus, as the case may be, that in the opinion of counsel for the
Underwriters may thereby be made necessary. The term “Underwriter” as used in
this Agreement shall include any party substituted under this Section 6 with
like effect as if it had originally been a party to this Agreement with respect
to such Securities.
7. Additional
Covenants.
7.1. Additional
Shares or Options.
The Company hereby agrees that until the Company consummates a Business
Combination, it shall not issue any Ordinary Shares or any options or other
securities convertible into Ordinary Shares or any shares of Preferred Stock
which participate in any manner in the Trust Account or which vote as a class
with the Ordinary Shares on a Business Combination.
7.2. Trust
Account Waiver Acknowledgments.
The Company hereby agrees that it will not commence its due diligence
investigation of any operating business or businesses which the Company seeks
to
acquire (each, a “Target
Business”)
or obtain the services of any vendor unless and until such Target Business
or
vendor acknowledges in writing, whether through a letter of intent, memorandum
of understanding or other similar document (and subsequently acknowledges the
same in any definitive document replacing any of the foregoing), that (a) it
has
read the Prospectus and understands that the Company has established the Trust
Account, initially in an amount of $30,080,000 (without giving effect to any
exercise of the Over-allotment Option) for the benefit of the Public
Shareholders and that, except for a portion of the interest earned on the
amounts held in the Trust Account, the Company may disburse monies from the
Trust Account only: (i) to the Public Shareholders in the event of the
conversion of their shares or the dissolution and liquidation of the Trust
Account as part of the Company’s plan of dissolution and liquidation or (ii) to
the Company after it consummates a Business Combination and (b) for and in
consideration of the Company (1) agreeing to evaluate such Target Business
for
purposes of consummating a Business Combination with it or (2) agreeing to
engage the services of the vendor, as the case may be, such Target Business
or
vendor agrees that it does not have any right, title, interest or claim of
any
kind in or to any monies of the Trust Account (“Claim”)
and waives any Claim it may have in the future as a result of, or arising out
of, any negotiations, contracts or agreements with the Company and will not
seek
recourse against the Trust Account for any reason whatsoever. The foregoing
letters shall substantially be in the form attached hereto as Exhibit
C
and D,
respectively.
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7.3. Insider
Letters.
The Company shall not take any action or omit to take any action which would
cause a breach of any of the Insider Letters executed between each Company
Affiliate and Broadband and will not allow any amendments to, or waivers of,
such Insider Letters without the prior written consent of
Broadband.
7.4. Amended
and Restated Memorandum and Articles of Association.
The Company shall not take any action or omit to take any action that would
cause the Company to be in breach or violation of its Amended and Restated
Memorandum and Articles of Association or By-Laws. Except as set forth in
Section 3.31, prior to the consummation of a Business Combination, the Company
will not amend its Amended and Restated Memorandum and Articles of Association
or By-Laws without the prior written consent of Broadband.
7.5. Proxy
and Other Information.
The Company shall provide counsel to the Representative with ten copies of
all
proxy information and all related material filed with the Commission in
connection with a Business Combination concurrently with such filing with the
Commission. In addition, the Company shall furnish any other state in which
its
initial public offering was registered, such information as may be requested
by
such state.
7.6. Acquisition/Liquidation
Procedure.
7.6.1. The
Company agrees: (i) that, prior to the consummation of any Business Combination,
it will submit such transaction to the Company’s shareholders for their approval
(“Business
Combination Vote”)
even if the nature of the acquisition is such as would not ordinarily require
shareholder approval under applicable state law; and (ii) that, in the event
that the Company does not effect a Business Combination by the termination
date
of the Company’s corporate existence (the “Termination
Date”),
the Company shall take all action necessary to dissolve the Company and
liquidate the Trust Account to holders of IPO Shares as soon as reasonably
practicable, subject to the requirements of the laws of the Cayman Islands.
Upon
liquidation of the Trust Account, the Company will distribute to all holders
of
IPO Shares (defined below) an aggregate sum equal to $7.76 per unit (plus any
remaining portion of the interest income earned on the Trust Account but net
of:
(i) taxes payable on interest income earned on the Trust Account; (ii) amounts
to be paid to any redeeming shareholders voting against the extended period;
and
(iii) amounts released to the Company, from time to time, to fund its working
capital and general corporate requirements (not to exceed $1,350,000) plus
a pro
rata share of any remaining net assets, subject to any valid claims by our
creditors that are not covered by amounts held in the Trust Account or the
indemnities provided by the Company’s directors and officers. Only holders of
IPO Shares (as defined below) shall be entitled to receive liquidating
distributions and the Company shall pay no liquidating distributions with
respect to any other shares of capital stock of the Company, including the
Placement Warrants. With respect to any vote for any plan of dissolution and
liquidation recommended by the Company’s Board of Directors, if any, the Company
shall use its reasonable best efforts to cause all of the Company Affiliates
to
vote the Ordinary Shares owned by them in favor of such plan of dissolution
and
liquidation.
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7.6.2. With
respect to the Business Combination Vote or any vote to extend the period of
time to consummate a Business Combination by an additional 12 months (the
“Extended
Period”),
the Company shall use its reasonable best efforts to cause all of the Initial
Shareholders to vote the Ordinary Shares owned by them immediately prior to
this
Offering in accordance with the majority of the IPO Shares. In addition, the
Company shall use its reasonable best efforts to cause the Initial Shareholders
to vote Ordinary Shares they acquire in the IPO or in the aftermarket in favor
of the Business Combination and in favor of the Extended Period. At the time
the
Company seeks approval of any potential Business Combination, the Company will
offer each of the holders of the Company’s Ordinary Shares issued in this
Offering (the “IPO
Shares”)
the right to convert their IPO Shares at a per share price equal to $7.76 (the
“Redemption
Price”).
If holders of up to one share less than 30.0% in interest of the Company’s IPO
Shares vote against such approval of a Business Combination, the Company may,
but will not be required to, proceed with such Business Combination. If the
Company elects to so proceed, it will redeem shares, based upon the Redemption
Price, from those holders of IPO Shares who affirmatively requested such
conversion and who voted against the Business Combination. If holders of 30.0%
or more in interest of the IPO Shares vote against approval of any potential
Business Combination and elect to redeem their IPO Shares, the Company will
not
proceed with such Business Combination and will not convert such shares. Only
holders of IPO Shares shall be entitled to receive liquidating distributions
and
the Company shall pay no liquidating distributions with respect to any other
shares of capital stock of the Company. In the event any of the holders of
the
IPO Shares exercise its right to convert its IPO Shares to cash, certain of
the
stockholders of the Company prior to the IPO have agreed pursuant to the Insider
Letters and the Escrow Agreement that, in order to partially offset the
resulting dilution to the non-converting holders of the IPO Shares, they shall
surrender to the Company, prior to the consummation of the Business Combination,
up to an aggregate of 124,736 of their shares of Ordinary Shares of the Company
(as described in the Prospectus) and the Company shall cause such stockholders
to surrender to the Company, prior to the consummation of the Business
Combination, such shares of Ordinary Stock.
7.7. Rule
419.
The Company agrees that it will use its best efforts to prevent the Company
from
becoming subject to Rule 419 under the Act prior to the consummation of any
Business Combination, including, but not limited to, using its best efforts
to
prevent any of the Company’s outstanding securities from being deemed to be a
“xxxxx stock” as defined in Rule 3a-51-1 under the Exchange Act during such
period.
7.8. Presentation
of Potential Target Businesses.
The Company shall cause each of the Company Affiliates to agree that, in order
to minimize potential conflicts of interest which may arise from multiple
affiliations, the Company Affiliates will present to the Company for its
consideration, prior to presentation to any other person or company, 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 Company Affiliates cease to be affiliates
of
the Company, subject to any pre-existing fiduciary obligations the Company
Affiliates might have.
Broadband
Capital Management LLC
,
2008
Page 39
of
44
7.9. Target
Net Assets.
The Company agrees that the initial Target Business that it acquires must have
a
fair market value equal to at least 80.0% of the amount in the Trust Account
at
the time of such acquisition (exclusive of Broadband’s Contingent Discount held
in the Trust Account). The fair market value of such business must be determined
by the Board of Directors of the Company based upon standards generally accepted
by the financial community, such as actual and potential sales, earnings and
cash flow and book value. If the Board of Directors of the Company is not able
to independently determine that the Target Business has a fair market value
of
at least 80.0% of the amount in the Trust Account (exclusive of the Contingent
Discount held in the trust account) at the time of such acquisition, the Company
will obtain an opinion from an unaffiliated, independent investment banking
firm
which is a member of FINRA with respect to the satisfaction of such criteria.
The Company is not required to obtain an opinion from an investment banking
firm
as to the fair market value if the Company’s Board of Directors independently
determines that the Target Business does have sufficient fair market
value.
8. Representations
and Agreements to Survive Delivery.
Except as the context otherwise requires, all representations, warranties and
agreements contained in this Agreement shall be deemed to be representations,
warranties and agreements at the Closing Date or the Option Closing Date, if
any, and such representations, warranties and agreements of the Underwriters
and
Company, including the indemnity agreements contained in Section 5 hereof,
shall
remain operative and in full force and effect regardless of any investigation
made by or on behalf of any Underwriter, the Company or any controlling person,
and shall survive termination of this Agreement or the issuance and delivery
of
the Securities to the several Underwriters until the earlier of the expiration
of any applicable statute of limitations and the seventh (7th) anniversary
of
the later of the Closing Date or the Option Closing Date, if any, at which
time
the representations, warranties and agreements shall terminate and be of no
further force and effect.
9. Effective
Date of This Agreement and Termination Thereof.
9.1. Effective
Date.
This Agreement shall become effective on the Effective Date at the time the
Registration Statement is declared effective by the Commission.
9.2. Termination.
Broadband shall have the right to terminate this Agreement at any time prior
to
any Closing Date: (i) if any domestic or international event or act or
occurrence has materially disrupted or, in the Representative’s sole opinion,
will in the immediate future materially disrupt, general securities markets
in
the United States; or (ii) if trading on the New York Stock Exchange, the AMEX,
the Boston Stock Exchange or on the OTC Bulletin Board (or successor trading
market) shall have been suspended, or minimum or maximum prices for trading
shall have been fixed, or maximum ranges for prices for securities shall have
been fixed, or maximum ranges for prices for securities shall have been required
on the OTC Bulletin Board or by order of the Commission or any other government
authority having jurisdiction, or (iii) if the United States shall have become
involved in a war or an increase in major hostilities, or (iv) if a banking
moratorium has been declared by a New York State or federal authority, or (v)
if
a moratorium on foreign exchange trading has been declared which materially
adversely impacts the United States securities market, or (vi) if the Company
shall have sustained a material loss by fire, flood, accident, hurricane,
earthquake, theft, sabotage or other calamity or malicious act which, whether
or
not such loss shall have been insured, will, in the Representative’s sole
opinion, make it inadvisable to proceed with the delivery of the Units, or
(vii)
if any of the Company’s representations, warranties or covenants hereunder are
breached, or (viii) if the Representative shall have become aware after the
date
hereof of such a material adverse change in the conditions or prospects of
the
Company, or such adverse material change in general market conditions,
including, without limitation, as a result of terrorist activities after the
date hereof, as in the Representative’s judgment would make it impracticable to
proceed with the offering, sale and/or delivery of the Units or to enforce
contracts made by the Underwriters for the sale of the Units.
Broadband
Capital Management LLC
,
2008
Page 40
of
44
9.3. Expenses.
In the event that this Agreement shall not be carried out for any reason
whatsoever, within the time specified herein or any extensions thereof pursuant
to the terms herein, the obligations of the Company to pay the out of pocket
expenses related to the transactions contemplated herein shall be governed
by
Section 3.12.1 hereof.
9.4. Indemnification.
Notwithstanding any contrary provision contained in this Agreement, any election
hereunder or any termination of this Agreement, and whether or not this
Agreement is otherwise carried out, the provisions of Section 5 shall not be
in
any way effected by, such election or termination or failure to carry out the
terms of this Agreement or any part hereof.
10. Miscellaneous.
10.1. Notices.
All communications hereunder, except as herein otherwise specifically provided,
shall be in writing and shall be mailed, delivered by hand or reputable
overnight courier or delivered by facsimile transmission (with printed
confirmation of receipt) and confirmed and shall be deemed given when so mailed,
delivered or faxed (or if mailed, two days after such mailing):
If
to the Representative:
Broadband
Capital Management LLC
000
Xxxxx Xxxxxx
Xxx
Xxxx, Xxx Xxxx 00000
Attn: Xxxxx
X. Xxxxxx, Managing Director
Fax:
(000) 000-0000
Broadband
Capital Management LLC
,
2008
Page 41
of
44
With
a copy (which shall not constitute notice) to:
Ellenoff
Xxxxxxxx & Schole LLP
000
Xxxxxxxxx Xxxxxx, 00xx
Xxxxx
Xxx
Xxxx, Xxx Xxxx 00000
Attn:
Xxxxxxx X. Xxxxxxxx, Esq.
Fax:
(000) 000-0000
If
to the Company:
Xxxxxxxxx
Asia Acquisition Corp.
Ciro’s
Plaza
388
Nanjing Xi Xx
Xxxxx
00, Xxxx 0000
000000
Xxxxxxxx, Xxxxx
Attn:
Xxxx Xxxx, Chief Executive Officer
Fax: 000-0000-0000
With
a copy (which shall not constitute notice) to:
Loeb
& Loeb LLP
000
Xxxx Xxxxxx
Xxx
Xxxx, XX 00000-0000
Attn:
Xxxxxxxx X. Xxxxxxxx, Esq.
Fax:
(000) 000-0000
10.2. Headings.
The headings contained herein are for the sole purpose of convenience of
reference, and shall not in any way limit or affect the meaning or
interpretation of any of the terms or provisions of this Agreement.
10.3. Amendment.
This Agreement may only be amended by a written instrument executed by each
of
the parties hereto.
10.4. Entire
Agreement.
This Agreement (together with the other agreements and documents being delivered
pursuant to or in connection with this Agreement) constitute the entire
agreement of the parties hereto with respect to the subject matter hereof and
thereof, and supersede all prior agreements and understandings of the parties,
oral and written, with respect to the subject matter hereof.
10.5. Binding
Effect.
This Agreement shall inure solely to the benefit of and shall be binding upon
the Representative, the Underwriters, the Company and the controlling persons,
directors and officers referred to in Section 5 hereof, and their respective
successors, legal representatives and assigns, and no other person shall have
or
be construed to have any legal or equitable right, remedy or claim under or
in
respect of or by virtue of this Agreement or any provisions herein
contained.
10.6. Governing
Law, Venue, etc.
Broadband
Capital Management LLC
,
2008
Page 42
of
44
10.6.1. This
Agreement shall be governed by and construed and enforced in accordance with
the
laws of the State of New York, without giving effect to the conflict of laws
principles thereof. Each of the Representative and the Company (and any
individual signatory hereto): (i) agrees that any legal suit, action or
proceeding arising out of or relating to this agreement and/or the transactions
contemplated hereby shall be instituted exclusively in New York Supreme Court,
County of New York, or in the United States District Court for the Southern
District of New York, (ii) waives any objection which such party may have or
hereafter to the venue of any such suit, action or proceeding and (iii)
irrevocably and exclusively consents to the jurisdiction of the New York Supreme
Court, County of New York, and the United States District Court for the Southern
District of New York in any such suit, action or proceeding.
10.6.2. Each
of the Representative and the Company (and any individual signatory hereto)
further agrees to accept and acknowledge service of any and all process which
may be served in any such suit, action or proceeding in the New York Supreme
Court, County of New York, or in the United States District Court for the
Southern District of New York and agrees that service of process upon the
Company or any such individual mailed by certified mail to the Company’s address
shall be deemed in every respect effective service of process upon the Company
or any such individual in any such suit, action or proceeding, and service
of
process upon the Representative mailed by certified mail to the Representative’s
address shall be deemed in every respect effective service process upon the
Representative, in any such suit, action or proceeding.
10.6.3. THE
COMPANY (ON BEHALF OF ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON
BEHALF OF ITS EQUITY HOLDERS AND CREDITORS) HEREBY WAIVES ANY RIGHT TO A TRIAL
BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN CONNECTION
WITH
THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE
REGISTRATION STATEMENT AND THE PROSPECTUS.
10.6.4. The
Company agrees that the prevailing party(ies) in any such action shall be
entitled to recover from the other party(ies) all of its reasonable attorneys’
fees and expenses relating to such action or proceeding and/or incurred in
connection with the preparation therefor.
10.7. Execution
in Counterparts.
This Agreement may be executed in one or more counterparts, and by the different
parties hereto in separate counterparts, each of which shall be deemed to be
an
original, but all of which taken together shall constitute one and the same
agreement, and shall become effective when one or more counterparts has been
signed by each of the parties hereto and delivered to each of the other parties
hereto. Delivery of a signed counterpart of this Agreement by fax or email/.pdf
transmission shall constitute valid and sufficient delivery
thereof.
10.8. Waiver,
etc.
The failure of any of the parties hereto to at any time enforce any of the
provisions of this Agreement shall not be deemed or construed to be a waiver
of
any such provision, nor to in any way effect the validity of this Agreement
or
any provision hereof or the right of any of the parties hereto to thereafter
enforce each and every provision of this Agreement. No waiver of any breach,
non-compliance or non-fulfillment of any of the provisions of this Agreement
shall be effective unless set forth in a written instrument executed by the
party or parties against whom or which enforcement of such waiver is sought;
and
no waiver of any such breach, non-compliance or non-fulfillment shall be
construed or deemed to be a waiver of any other or subsequent breach,
non-compliance or non-fulfillment.
Broadband
Capital Management LLC
,
2008
Page 43
of
44
10.9. No
Fiduciary Relationship.
The Company hereby acknowledges that the Underwriters are acting solely as
underwriters in connection with the offering of the Company's securities. The
Company further acknowledges that the Underwriters are acting pursuant to a
contractual relationship created solely by this Agreement entered into on an
arm's length basis and in no event do the parties intend that the Underwriters
act or be responsible as a fiduciary to the Company, its management,
shareholders, creditors or any other person in connection with any activity
that
the Underwriters may undertake or have undertaken in furtherance of the offering
of the Company's securities, either before or after the date hereof. The
Underwriters hereby expressly disclaim any fiduciary or similar obligations
to
the Company, either in connection with the transactions contemplated by this
Agreement or any matters leading up to such transactions, and the Company hereby
confirms its understanding and agreement to that effect. The Company and the
Underwriters agree that they are each responsible for making their own
independent judgments with respect to any such transactions, and that any
opinions or views expressed by the Underwriters to the Company regarding such
transactions, including but not limited to any opinions or views with respect
to
the price or market for the Company's securities, do not constitute advice
or
recommendations to the Company. The Company hereby waives and releases, to
the
fullest extent permitted by law, any claims that the Company may have against
the Underwriters with respect to any breach or alleged breach of any fiduciary
or similar duty to the Company in connection with the transactions contemplated
by this Agreement or any matters leading up to such
transactions.
Broadband
Capital Management LLC
,
2008
Page 44
of
44
If
the foregoing correctly sets forth the understanding between the Underwriters
and the Company, please so indicate in the space provided below for that
purpose, whereupon this letter shall constitute a binding agreement between
us.
|
Very
Truly Yours,
XXXXXXXXX
ASIA ACQUISITION CORP.
|
||
| |
|
|
| By: | ||
|
Name: |
||
| Title | ||
Agreed
to and accepted
as
of the date first written above:
BROADBAND
CAPITAL MANAGEMENT LLC, as Representative
of
the several Underwriters
| By: | ||
|
Name:
T. Xxxxx Xxxxxx
Title:
Managing Director
|
[Signature
Page to Underwriting Agreement, dated ,
2008]
SCHEDULE
A
XXXXXXXXX
ASIA ACQUISITION CORP.
4,000,000
Units
|
Underwriter
|
Number
of Firm Units
to
be Purchased
|
|
|
Broadband
Capital Management LLC
|
||
|
4,000,000
|
EXHIBIT
A
FORM
OF LOEB & LOEB LLP OPINION
EXHIBIT
B
FORM
OF XXXXXXX, XXXX & XXXXXXX OPINION
EXHIBIT
C
Form
of Target Business Letter
Xxxxxxxxx
Asia Acquisition Corp.
00/X
Xxxxx 0, Xxx Xxxxx Xxxxx
00
Xxxxxx
Xxxx Xxxxxxx
Xxxx
Xxxx
Xxxxxxxxx:
Reference
is made to the Final Prospectus of Xxxxxxxxx Asia Acquisition Corp. (the
“Company”),
dated _______________, 2008 (the “Prospectus”).
Capitalized terms used and not otherwise defined herein shall have the meanings
assigned to them in Prospectus.
We
have read the Prospectus and understand that the Company has established the
Trust Account, initially in an amount of at least $30,080,000 for the benefit
of
the Public Shareholders and the underwriters of the Company’s initial public
offering (the “Underwriters”)
and that, except for the interest earned on the amounts held in the Trust
Account, the Company may disburse monies from the Trust Account only: (i) to
the
Public Shareholders in the event of the redemption of their shares or the
dissolution and liquidation of the Company; or (ii) to the Company and the
Underwriters after it consummates a Business Combination.
For
and in consideration of the Company agreeing to evaluate the undersigned for
purposes of consummating a Business Combination with it, the undersigned hereby
agrees that it does not have any right, title, interest or claim of any kind
in
or to any monies in the Trust Account (each, a “Claim”)
and hereby waives any Claim it may have in the future as a result of, or arising
out of, any negotiations, contracts or agreements with the Company and will
not
seek recourse against the Trust Account for any reason whatsoever.
|
Print
Name of Target Business
|
|
|
Authorized
Signature of Target Business
|
EXHIBIT
D
Form
of Vendor Letter
Xxxxxxxxx
Asia Acquisition Corp.
00/X
Xxxxx 0, Xxx Xxxxx Xxxxx
00
Xxxxxx
Xxxx Xxxxxxx
Xxxx
Xxxx
Xxxxxxxxx:
Reference
is made to the Final Prospectus of Xxxxxxxxx Asia Acquisition Corp. (the
“Company”),
dated _______________, 2008 (the “Prospectus”).
Capitalized terms used and not otherwise defined herein shall have the meanings
assigned to them in Prospectus.
We
have read the Prospectus and understand that the Company has established the
Trust Account, initially in an amount of at least $30,080,000 for the benefit
of
the Public Shareholders and the underwriters of the Company’s initial public
offering (the “Underwriters”)
and that, except for the interest earned on the amounts held in the Trust
Account (which interest may, prior to the consummation of a business combination
or the Company’s liquidation, be released (i) to the Company to pay taxes it has
incurred, (ii) to redeeming shareholders voting against the extended period,
as
described in the Prospectus and (iii) to the Company, from time to time, to
fund
its working capital and general corporate requirements), the Company may
disburse monies from the Trust Account only: (i) to the Public Shareholders
in
the event of the redemption of their shares or the dissolution and liquidation
of the Company; or (ii) to the Company and the Underwriters after it consummates
a Business Combination.
For
and in consideration of the Company agreeing to use the services of the
undersigned, the undersigned hereby agrees that it does not have any right,
title, interest or claim of any kind in or to any monies in the Trust Account
(each, a “Claim”)
and hereby waives any Claim it may have in the future as a result of, or arising
out of, any services provided to the Company and will not seek recourse against
the Trust Account for any reason whatsoever.
|
Print
Name of Vendor
|
|
|
Authorized
Signature of Vendor
|
