Document:

Unassociated Document

    FOUNDER
      WARRANT ESCROW AGREEMENT

     

    FOUNDER
      WARRANT ESCROW AGREEMENT, dated as of [___],
      2008
      (this “Agreement”),
      by
      and among Consumer Partners Acquisition Corp., a Delaware corporation (the
      “Company”),
      PJC
      Consumer Partners Acquisition I, LLC, Aria Select Consumer Fund LP, Aria
      Partners LP, Aria Partners II LP, Aria Partners (Cayman) Ltd. and Kata Ltd.
      (the
“Founders”)
      and
      Continental Stock Transfer & Trust Company, a
      New
      York corporation (the
      “Escrow
      Agent”).

     

    WHEREAS,
      the Company has entered into an Underwriting Agreement, dated [___],
      2008
      (the
“Underwriting
      Agreement”),
      with
Broadband
      Capital Management, LLC, as representative of the underwriters
      (“Broadband”),
      pursuant to which, among other matters, the underwriters have agreed to purchase
      units (the “Units”)
      of the
      Company. Each Unit consists of two shares of the Company’s common stock, par
      value $.0001 per share (the “Common
      Stock”),
      and
      one warrant, each warrant to purchase one share of Common Stock (the
“Warrant”),
      all
      as more fully described in the Company’s final Prospectus, dated [___],
      2008
      (the
“Prospectus”)
      comprising part of the Company’s Registration Statement on Form S-1
      (File No. 333-148396)
      under
      the Securities Act of 1933, as amended (the “Registration
      Statement”),
      declared effective on [___],
      2008
      (the
“Effective
      Date”).

     

    WHEREAS,
      the Founders have
      agreed to purchase, in a private placement that will occur immediately prior
      to
      the closing of the sale of the Units (the “Offering”),
      5,000,000 warrants (collectively, the “Founder
      Warrants”)
      at a
      purchase price of $1.00 per Founder Warrant.

     

    WHEREAS,
      the Founders have agreed, as a condition of the sale of the Units to Broadband,
      to deposit the Founder Warrants in escrow as hereinafter provided. 

     

    WHEREAS,
      the Company and the Founders desire that the Escrow Agent accept the Founder
      Warrants, in escrow, to be held and disbursed as hereinafter
      provided.

     

    NOW,
      THEREFORE, in consideration of the promises and the mutual covenants,
      representations and warranties contained herein and intending to be legally
      bound hereby, the parties agree as follows:

     

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

     

    2. Deposit
      of Founder Warrants.
      On or
      before the Effective Date, the Founders shall deliver to the Escrow Agent
      certificates representing their respective Founder Warrants, to be held and
      disbursed subject to the terms and conditions of this Agreement. The Founders
      acknowledge that such certificates representing their respective Founder
      Warrants each bear a legend reflecting the deposit of such Founder Warrants
      under this Agreement.

     

    3. Disbursement
      of the Founder Warrants.
      The
      Escrow Agent shall hold the Founder Warrants until the later of the
      consummation of the Company’s initial business combination
      (as
      described in the Registration Statement) (the “Escrow
      Period”),
      at
      which time it shall, upon joint written instructions from the Company and,
      only
      with respect to the Founder’s Founder Warrants owned by such Founder, the
      Founders, disburse the Founder Warrants (and any applicable instrument of
      transfer) to the Founders or their Permitted Transferees; provided,
      however,
      that if
      the Escrow Agent is notified by the Company pursuant to Section 6.8 hereof
      that
      the Company is being liquidated at any time during the Escrow Period, then
      the
      Escrow Agent shall promptly destroy the certificate representing the Founder
      Warrants. The Escrow Agent shall have no further duties hereunder after the
      disbursement or destruction of all of the Founder Warrants in accordance with
      this Section 3.

     

    
      
         

      

      
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    4. Restrictions
      on Transfer of the Founder Warrants.
      During
      the Escrow Period, no sale, transfer or other disposition may be made of any
      or
      all of the Founder Warrants except to
      persons or entities controlling, controlled by, or under common control with
      the
      Founders, or to any stockholder, member, partner or limited partner of any
      such
      person or entity (the “Permitted
      Transferees”);
      in
      each case, such transferee will be subject to the same transfer restrictions
      as
      the Founders until after the Company completes its initial business
      combination;
      provided,
      however,
      that
      such transfers may be implemented only upon the respective Permitted
      Transferee’s written agreement to be bound by the terms and conditions of this
      Agreement and the Insider Letter executed by each Founder, the Company and
      Broadband. During the Escrow Period, neither the Founders nor any Permitted
      Transferee shall pledge or grant any security interest in the Founder Warrants
      or grant any security interest in its rights under this Agreement without the
      prior written consent of the Company.

     

    5. Concerning
      the Escrow Agent.

     

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

     

    5.2 Indemnification.
      The
      Escrow Agent shall be indemnified and held harmless by the Company from and
      against any expenses, including counsel fees and disbursements, or loss suffered
      by the Escrow Agent in connection with any action, suit or other proceeding
      involving any claim that, in any way, directly or indirectly, arises out of
      or
      relates to this Agreement, the services of the Escrow Agent hereunder, or the
      Founder Warrants held by it hereunder, other than expenses or losses arising
      from the gross negligence or willful misconduct of the Escrow Agent. Promptly
      after the receipt by the Escrow Agent of notice of any demand or claim or the
      commencement of any action, suit or proceeding, the Escrow Agent shall notify
      the other parties hereto in writing. In the event of the receipt by the Escrow
      Agent of such notice, the Escrow Agent, in its sole discretion, may commence
      an
      action in the nature of interpleader in an appropriate court to determine
      ownership or disposition of the Founder Warrants or it may deposit the Founder
      Warrants with the clerk of any appropriate court or it may retain the Founder
      Warrants pending receipt of a final, non-appealable order of a court having
      jurisdiction over all of the parties hereto directing to whom and under what
      circumstances the Founder Warrants are to be disbursed and delivered. The
      provisions of this Section 5.2 shall survive in the event the Escrow Agent
      resigns or is discharged pursuant to Sections 5.5 or 5.6 below.

     

    5.3 Compensation.
      The
      Escrow Agent shall be entitled to the fees set forth on Schedule
      A
      hereto
      for all services rendered by it hereunder. The Escrow Agent shall also be
      entitled to reimbursement from the Company for all expenses paid or incurred
      by
      it in the administration of its duties hereunder including, but not limited
      to,
      all counsel, advisors’ and agents’ fees and disbursements and all taxes or other
      governmental charges.

     

    
      
         

      

      
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    5.4 Further
      Assurances.
      From
      time to time on and after the date hereof, the Company and the Founders shall
      deliver or cause to be delivered to the Escrow Agent such further documents
      and
      instruments and shall do or cause to be done such further acts as the Escrow
      Agent shall reasonably request to carry out more effectively the provisions
      and
      purposes of this Agreement, to evidence compliance herewith or to assure the
      Escrow Agent that it is protected in acting hereunder.

     

    5.5 Resignation.
      The
      Escrow Agent may resign at any time and be discharged from its duties as escrow
      agent hereunder by its giving the other parties hereto written notice thereof
      and such resignation shall become effective as hereinafter provided. Such
      resignation shall become effective at such time that the Escrow Agent shall
      turn
      over to a successor escrow agent appointed by the Company, the Founder Warrants
      held hereunder. If no new escrow agent is appointed by the Company within the
      60-day period following the giving of such notice of resignation, the Escrow
      Agent may deposit the Founder Warrants with any court it reasonably deems
      appropriate.

     

    5.6 Discharge
      of Escrow Agent.
      The
      Escrow Agent shall resign and be discharged from its duties as escrow agent
      hereunder if so requested in writing at any time by the other parties hereto,
      jointly, provided, however, that such resignation shall become effective only
      upon acceptance of appointment by a successor escrow agent subject to all the
      terms of this Agreement and the delivery, by the Escrow Agent, of the Founder
      Warrants to such successor escrow agent.

     

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

     

    6. Miscellaneous.

     

    6.1 Waiver
      of Claims against Trust Account.
      Notwithstanding any other provision of this Agreement, the Escrow Agent confirms
      its understanding that the Company has established the Trust Account (as defined
      in the Prospectus) relating to the Units being sold pursuant to the Prospectus.
      The Escrow Agent acknowledges that the Trust Account will exist for the benefit
      of the Company’s public stockholders and the monies from the Trust Account may
      only be disbursed upon the occurrence of certain events as more fully described
      in the Prospectus. The Escrow Agent agrees that neither it nor any of its
      affiliates have or will have any right, title, interest or claim in or to the
      monies in the Trust Account, and the Escrow Agent hereby waives any and all
      right, title, interest of claim of any kind in or to any distribution of any
      property held in the Trust Account that it or its affiliates may have now or
      in
      the future and hereby agrees not to seek recourse, reimbursement, payment or
      satisfaction for any claim of any kind against the Trust Account for any reason
      whatsoever, including in respect of the Company’s indemnification obligations
      set forth in this Agreement.

     

    6.2 Governing
      Law.
      This
      Agreement shall, for all purposes, be deemed to be made under and shall be
      construed in accordance with the laws of the State of New York, without giving
      effect to conflicts of law principles that would result in the application
      of
      the substantive laws of another jurisdiction (whether of the State of New York
      or any other jurisdiction that would cause the application of the laws of any
      jurisdiction other than the State of New York). Each of the Company, the
      Founders and the Escrow Agent hereby agrees that any action, proceeding or
      claim
      against it arising out of or relating in any way to this Agreement shall be
      brought and enforced in the courts of the State of New York or the United States
      District Court for the Southern District of New York, and irrevocably submits
      to
      such jurisdiction, which jurisdiction shall be exclusive. Each of the Company,
      the Founders and the Escrow Agent hereby waives any objection to such exclusive
      jurisdiction and agrees that it shall not object to such jurisdiction on the
      grounds that such courts represent an inconvenient forum. Any such process
      or
      summons to be served upon each of the Company, the Founders and the Escrow
      Agent
      may be served by transmitting a copy thereof by registered or certified mail,
      return receipt requested, postage prepaid, addressed to it at the address set
      forth in Section 6.7 hereof. Such mailing shall be deemed personal service
      and
      shall be legal and binding upon each of the Company, the Founders and the Escrow
      Agent in any action, proceeding or claim.

     

    
      
         

      

      
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    6.3 Third
      Party Beneficiaries.
      The
      Founders hereby acknowledge that Broadband is an intended third party
      beneficiary of this Agreement and this Agreement may not be modified or changed
      without the prior written consent of Broadband. 

     

    Entire
      Agreement.
      This
      Agreement contains the entire agreement of the parties hereto with respect
      to
      the subject matter hereof and, except as expressly provided herein, may not
      be
      changed or modified except by an instrument in writing signed by Broadband
      and
      the party against whom such change or modification is to be enforced. This
      Agreement and any amendment may be executed in several original or facsimile
      counterparts, each one of which shall constitute an original, and together
      shall
      constitute but one instrument.

     

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

     

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

     

    6.7 Notices.
      Any
      notice or other communication required or which may be given hereunder shall
      be
      in writing and either be delivered personally or be mailed, certified or
      registered mail, or by private national courier service, return receipt
      requested, postage prepaid, and shall be deemed given when so delivered
      personally or, if mailed, two days after the date of mailing, as
      follows:

     

    If
      to the
      Company, to:

     

    Consumer
      Partners Acquisition Corp.

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

    Attn:
      Ted
      Tawinganone

     

    If
      to the
      Founders, to:

     

    PJC
      Consumer Partners Acquisition I, LLC

    c/o
      Piper
      Jaffray

    800
      Nicollet Mall

    Minneapolis,
      Minnesota 55402

    Attn:
      ____________; 

     

    Aria
      Select Consumer Fund LP

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

    Attn:
      Ted
      Tawinganone;

     

    Aria
      Partners LP

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

    Attn:
      Ted
      Tawinganone;

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Aria
      Partners II LP

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

    Attn:
      Ted
      Tawinganone;

     

    Aria
      Partners (Cayman) Ltd.

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

    Attn:
      Ted
      Tawinganone; and 

     

    Kata
      Ltd.

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

    Attn:
      Ted
      Tawinganone

    

    and
      if to
      the Escrow Agent, to:

    

    Continental
      Stock Transfer & Trust Company

    17
      Battery Place

    New
      York,
      New York 10004

    Attn:
      Steven G. Nelson, Chairman

    

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

     

    Broadband
      Capital Management, LLC

    712
      Fifth
      Avenue, 49th
      Floor

    New
      York,
      New York 10019

    Attn:
      Michael
      Rapoport

    

    and:

    

    Mintz
      Levin Cohn Ferris Glovsky and Popeo, PC

    The
      Chrysler Building

    666
      Third
      Avenue

    New
      York,
      New York 10017

    Attn:
      Kenneth R. Koch, Esq.

     

    and:

    Loeb
      & Loeb LLP

    345
      Park
      Avenue

    New
      York,
      New York 10154

    Attn:
      Mitchell S. Nussbaum, Esq.

     

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

    

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

    

    {Remainder
      of page left intentionally blank. Signature page(s) to follow}

    

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the undersigned have executed this Founder Warrant Escrow
      Agreement as of the date first written above.

     

    CONSUMER
      PARTNERS ACQUISITION CORP.

     

    By:___________________________

    Name:
      Dana D. Messina

    Title:
      Chief Executive Officer 

     

    PJC
      CONSUMER PARTNERS ACQUISITION I, LLC

     

    By:___________________________

    Name:
      ________________

    Title:
      _________________

     

    ARIA
      SELECT CONSUMER FUND LP

     

    By:___________________________

    Name:
      Dana D. Messina

    Title:
      Managing Partner

     

    ARIA
      PARTNERS LP

     

    By:___________________________

    Name:
      Dana D. Messina

    Title:
      Managing Partner

     

    ARIA
      PARTNERS II LP

     

    By:___________________________

    Name:
      Dana D. Messina

    Title:
      Managing Partner

     

    ARIA
      PARTNERS (CAYMAN) LTD.

     

    By:___________________________

    Name:
      Dana D. Messina

    Title:
      Managing Partner

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    KATA
      LTD.

     

    By:___________________________

    Name:
      Dana D. Messina

    Title:
      Managing Partner

     

    CONTINENTAL
      STOCK TRANSFER

    &
      TRUST COMPANY

     

    By:____________________________

    Name:
      Steven G. Nelson

    Title:
      Chairman

     

    
      
         

      

      
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    SCHEDULE
      A

    

    ESCROW
      AGENT FEES

    
 

     

     

     

    8Unassociated Document

     

    CONSUMER
      PARTNERS ACQUISITION CORP.

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

     

    ____________,
      2008

     

    

    Aria
      Partners GP, LLC 

    11150
      Santa Monica Blvd., Suite 700

    Los
      Angeles, California 90025

     

    Ladies
      and Gentlemen:

     

    This
      letter will confirm our agreement that, commencing on the effective date
      (“Effective
      Date”)
      of the
      registration statement for the initial public offering (“IPO”)
      of the
      securities of Consumer Partners Acquisition Corp., a Delaware corporation (the
      “Company”),
      and
      continuing until the earlier of the consummation by the Company of a “business
      combination” or the Company’s liquidation (as described in the Company’s IPO
      prospectus) (the “Termination
      Date”),
      Aria
      Partners GP, LLC shall make available to the Company certain office space and
      administrative and secretarial services as may be required by the Company from
      time to time, situated at 11150 Santa Monica Blvd., Suite 700, Los Angeles,
      California 90025. In exchange therefore, the Company shall pay Aria Partners
      GP,
      LLC the sum of $7,500 per month on the Effective Date and continuing monthly
      thereafter until the Termination Date.

    

    Aria
      Partners GP, LLC hereby waives any and all right, title, interest or claim
      of
      any kind (“Claim”)
      in or
      to any distribution of the trust account described in the Company’s IPO
      prospectus (the “Trust
      Account”),
      and
      hereby agrees not to seek recourse, reimbursement, payment or satisfaction
      for
      any Claim against the Trust Account for any reason whatsoever.

     

    Very
      truly yours,

     

    CONSUMER
      PARTNERS ACQUISITION CORP.

     

    By:
      ____________________________

    Name:
      Dana D. Messina

    Title:
      Chief Executive Officer

     

    AGREED
      TO
      AND ACCEPTED BY:

     

    ARIA
      PARTNERS GP, LLC

    

    

    By:
      ____________________________

    Name:
      _______________

    Title:
      _______________

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