Document:

PROMISSORY NOTE

 

	
                        $100,000.00
 	
                         
 	
                                      As of August 8, 2007
 
	
                         
 	
                         
 	
                                      New York, New York
 

Global Brands Acquisition Corp. (“Maker”) promises to pay to the order of JLJ Partners, LLC (“Payee”) the principal sum of One Hundred Thousand Dollars and No Cents ($100,000.00) in lawful money of the United States of America, on the terms and conditions described below. 

1. Principal. The principal balance of this Note shall be repayable on the earlier of (i) August 8, 2008 or (ii) the date on which Maker consummates an initial public offering of its securities. 

2. Interest. No interest shall accrue on the unpaid principal balance of this Note. 

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

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

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

(b) Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now constituted or hereafter amended, or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in furtherance of any of the foregoing. 

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

5. Remedies. 

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

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

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

 

 

 

 

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

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

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

If to Maker: 

Global Brands Acquisition Corp. 

11 West 42nd Street, 21st  Floor 

New York, New York 10036 

Attn.: Chief Executive Officer 

If to Payee: 

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

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

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

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

 

	
                         
 	
                         
 	
                        GLOBAL BRANDS ACQUISITION CORP.
 
	
                          
 	
                         
 	
      By: 
 	
                        

          
 /s/ Joel J. Horowitz
 
	
                         
 	
                         
 	
                        Name: Joel J. Horowitz
 Title: Chief Executive OfficerSubscription Agreement

As of November 15, 2007

To the Board of Directors of 

Global Brands Acquisition Corp.:

Gentlemen:

The undersigned hereby subscribes for and agrees to purchase 5,000,000 Warrants (“Sponsor’s Warrants”) at $1.00 per Sponsor’s Warrant, each to purchase one share of common stock, par value $0.0001 per share, of Global Brands Acquisition Corp. (the “Corporation”) at $7.50 per share for an aggregate purchase price of $5,000,000 (“Purchase Price”). The purchase and issuance of the Sponsor’s Warrants shall occur simultaneously with the consummation of the Corporation’s initial public offering of securities (“IPO”) which is being underwritten by Citigroup Global Markets Inc. (“Citigroup”). The Sponsor’s Warrants will be sold to the undersigned on a private placement basis and not part of the IPO. 

At least 24 hours prior to the effective date of the registration statement filed in connection with the IPO (“Registration Statement”), the undersigned shall deliver the Purchase Price to Graubard Miller (“GM”) to hold in a non-interest bearing account until the Corporation consummates the IPO. Simultaneously with the consummation of the IPO, GM shall deposit the Purchase Price, without interest or deduction, into the trust fund (“Trust Fund”) established by the Corporation for the benefit of the Corporation’s public stockholders as described in the Corporation’s Registration Statement, pursuant to the terms of an Investment Management Trust Agreement to be entered into between the Corporation and Continental Stock Transfer & Trust Company. In the event that the IPO is not consummated within 14 days of the date the Purchase Price is
delivered to GM, GM shall return the Purchase Price to the undersigned, without interest or deduction.

The undersigned represents and warrants that it has been advised that the Sponsor’s Warrants (including the underlying shares of common stock) have not been registered under the Securities Act; that it is acquiring the Sponsor’s Warrants for its account for investment purposes only; that it has no present intention of selling or otherwise disposing of the Sponsor’s Warrants in violation of the securities laws of the United States; that it is an “accredited investor” as defined by Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”); and that it is familiar with the proposed business, management, financial condition and affairs of the Corporation.

Moreover, the undersigned hereby acknowledges and agrees that it will not (i) offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or otherwise dispose of (or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by the undersigned or any affiliate of the undersigned or any person in privity with the undersigned or any affiliate thereof), directly or indirectly, including the participation in the filing of a registration statement with the Securities and Exchange Commission in respect of, (ii) establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations of the
Securities and Exchange Commission promulgated thereunder, with respect to or (iii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of, or any securities convertible into or exercisable or exchangeable for, or other rights to purchase, whether any such transaction is to be settled by delivery of Common Stock, Sponsors’ Warrants or such other securities, in cash or otherwise, any Sponsors’ Warrants, or publicly announce an intention to effect any such transaction, until after the Corporation has consummated a merger, capital stock exchange, asset 

 

 

acquisition, stock purchase, reorganization or other similar business combination with one or more operating businesses or assets (“Business Combination”) meeting the requirements set forth in the Registration Statement; provided, however, that notwithstanding anything to the contrary in this Agreement, the undersigned may, at any time, transfer Sponsors’ Warrants (w) to its members upon a liquidation or to relatives and trusts for estate planning purposes, (x) by virtue of the laws of descent and distribution upon death, (y) pursuant to a qualified domestic relations order, or (z) to the Company’s officers, directors and persons affiliated with the Company’s “founders” as described in the Registration Statement, providing the transferee agrees to be bound by the transfer restrictions and acknowledges that the certificates for such Sponsors’ Warrants
shall contain a legend indicating such restriction on transferability. 

The Company hereby acknowledges and agrees that the Sponsor’s Warrants will be exercisable on a cashless basis and, in the event the Company calls the Warrants for redemption pursuant to that certain Warrant Agreement to be entered into by the Company and Continental Stock Transfer & Trust Company in connection with the Company’s IPO, shall not be redeemable by the Company so long as such Sponsor’s Warrants are held by the undersigned or its permitted transferees.

The terms of this agreement and the restriction on transfers with respect to the Sponsor’s Warrants may not be amended without the prior written consent of Citigroup.

 

	 	 	 	Very truly yours,

	 	 	 	 

	 	 	 	 
	
                         
 	
                         
 	
                         
 	
                         
 
	
                          
 	
                         
 	
                         
 	
        
 	 
	
                         
 	
                         
 	
                         
 	
                        JLJ Partners, LLC
 

 

 

	
                        Agreed to:
 	
                         
 	
                         
 
	
                        
 Global Brands Acquisition Corp.
 	
                         
 	
                         
 
	 	 	 	 	 
	
      
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                        Graubard Miller
 	
                         
 	
                         
 
	 	 	 
	 	 	 
	
                         
 	
                         
 	
                         
 
	
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                                Name:
 	
                         
 	
                         
 	
                         
 
	
                         
 	
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                        Citigroup Global Markets Inc.
 	
                         
 	
                         
 
	 	 	 
	 	 	 
	
                         
 	
                         
 	
                         
 
	
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