Document:

Unassociated Document

    

      INVESTMENT
        MANAGEMENT TRUST AGREEMENT

      

      This
        Agreement is made as of ______, 2005 by and between AFFINITY MEDIA INTERNATIONAL
        CORP. (the "Company")
        and
        AMERICAN STOCK TRANSFER & TRUST COMPANY (the "Trustee").

      

      WHEREAS,
        the
        Company's Registration Statement on Form S-1, File No. 333-________ (the
        "Registration
        Statement"),
        for
        its initial public offering of securities (the "IPO")
        has
        been declared effective as of the date hereof by the Securities and Exchange
        Commission (the "Effective
        Date");
        and

      

      WHEREAS,
        Maxim
        Group LLC ("Maxim")
        is
        acting as the representative of the underwriters in the IPO; and

      

      WHEREAS,
        as
        described in the Company's Registration Statement, and in accordance with
        the
        Company's Certificate of Incorporation, $17,400,000 of the gross proceeds
        of the
        IPO ($20,010,000 if the underwriters over-allotment option is exercised in
        full)
        will be delivered to the Trustee to be deposited and held in a trust account
        for
        the benefit of the Company and the holders of the Company's common stock,
        par
        value $.0001 per share, issued in the IPO as hereinafter provided and in
        the
        event the Units are registered in Colorado, pursuant to Section 11-51-302(6)
        of
        the Colorado Securities Act. A copy of the Colorado Securities Act is attached
        hereto and made a part hereof (the amount to be delivered to the Trustee
        will be
        referred to herein as the "Property";
        the
        stockholders for whose benefit the Trustee shall hold the Property will be
        referred to as the "Public
        Stockholders,"
        and
        the Public Stockholders and the Company will be referred to together as the
        "Beneficiaries");
        and

      

      WHEREAS,
        the
        Company and the Trustee desire to enter into this Agreement to set forth
        the
        terms and conditions pursuant to which the Trustee shall hold the
        Property;

      

      NOW,
        THEREFORE,
        in
        consideration of the mutual agreements herein contained, the parties hereto
        agree as follows:

       

      

      1. Agreements
        and Covenants of Trustee.
        The
        Trustee hereby agrees and covenants to:

      

      (a)
         Hold
        the
        Property in trust for the Beneficiaries in accordance with the terms of this
        Agreement, including the terms of Section 11-51-302(6) of the Colorado
        Securities Act with respect to Public Stockholders in Colorado, in a segregated
        trust account ("Trust
        Account")
        established by the Trustee at a branch of JPMorgan Chase NY Bank selected
        by the
        Trustee;

      

      (b) Manage,
        supervise and administer the Trust Account subject to the terms and conditions
        set forth herein;

      

      (c) In
        a
        timely manner, upon the instruction of the Company, to invest and reinvest
        the
        Property in any "Government
        Security."
        As
        used herein, Government Security means any Treasury Bill issued by the United
        States, having a maturity of one hundred and eighty days or
        less;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (d) Collect
        and receive, when due, all principal and income arising from the Property,
        which
        shall become part of the "Property,"
        as
        such term is used herein;

      

      (e) Promptly
        notify the Company of all communications received by it with respect to any
        Property requiring action by the Company;

      

      (f) Supply
        any necessary information or documents as may be requested by the Company
        in
        connection with the Company's preparation of the tax returns for the Trust
        Account;

      

      (g) Participate
        in any plan or proceeding for protecting or enforcing any right or interest
        arising from the Property if, as and when instructed by the Company to do
        so;

      

      (h) Render
        to
        the Company and to Maxim, and to such other person as the Company may instruct,
        monthly written statements of the activities of and amounts in the Trust
        Account
        reflecting all receipts and disbursements of the Trust Account; and

      

       

      (i) Commence
        liquidation of the Trust Account only after receipt of and only in accordance
        with the terms of a letter ("Termination
        Letter"),
        in a
        form substantially similar to that attached hereto as either Exhibit
        A
        or
Exhibit
        B,
        signed
        on behalf of the Company by its Chief Executive Officer or President and
        Secretary, and complete the liquidation of the Trust Account and distribute
        the
        Property in the Trust Account only as directed in the Termination Letter
        and the
        other documents referred to therein. The Trustee understands and agrees that
        disbursements from the Trust Account shall be made only pursuant to a duly
        executed Termination Letter, together with the other documents referenced
        herein. In all cases, the Trustee shall provide Maxim with a copy of any
        Termination Letters and/or any other correspondence that it receives with
        respect to any proposed withdrawal from the Trust Account promptly after
        it
        receives same.

      

      2. Agreements
        and Covenants of the Company.
        The
        Company hereby agrees and covenants to:

      

      (a) Give
        all
        instructions to the Trustee hereunder in writing, signed by the Company's
        Chief
        Executive Officer or President. In addition, except with respect to its duties
        under paragraph 1(i) above, the Trustee shall be entitled to rely on, and
        shall
        be protected in relying on, any verbal or telephonic advice or instruction
        which
        it in good faith believes to be given by any one of the persons authorized
        above
        to give written instructions, provided
        that the
        Company shall promptly confirm such instructions in writing;

      

      (b) Hold
        the
        Trustee harmless and indemnify the Trustee from and against, any and all
        expenses, including reasonable counsel fees and disbursements, or loss suffered
        by the Trustee in connection with any action, suit or other proceeding brought
        against the Trustee involving any claim, or in connection with any claim
        or
        demand which in any way arises out of or relates to this Agreement, the services
        of the Trustee hereunder, or the Property or any income earned from investment
        of the Property, except for expenses and losses resulting from the Trustee's
        gross negligence or willful misconduct. Promptly after the receipt by the
        Trustee of notice of demand or claim or the commencement of any action, suit
        or
        proceeding, pursuant to which the Trustee intends to seek indemnification
        under
        this paragraph, it shall notify the Company in writing of such claim
        (hereinafter referred to as the "Indemnified
        Claim").
        The
        Trustee shall have the right to conduct and manage the defense against such
        Indemnified Claim, provided,
        that
        the Trustee shall obtain the consent of the Company with respect to the
        selection of counsel, which consent shall not be unreasonably withheld. The
        Trustee may not agree to settle any Indemnified Claim without the prior written
        consent of the Company. The Company may participate in such action with its
        own
        counsel; and

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (c) Pay
        the
        Trustee an initial acceptance fee of $1,000 and an annual fee of $3,000 (it
        being expressly understood that the Property shall not be used to pay such
        fee).
        The Company shall pay the Trustee the initial acceptance fee and first year's
        fee at the consummation of the IPO and thereafter on the anniversary of the
        Effective Date. The Trustee shall refund to the Company the fee (on a pro
        rata
        basis) with respect to any period after the liquidation of the Trust Fund.
        The
        Company shall not be responsible for any other fees or charges of the Trustee
        except as may be provided in paragraph 2(b) hereof (it being expressly
        understood that the Property shall not be used to make any payments to the
        Trustee or be subject to any setoff or claim by the Trustee, under such
        paragraph or under any other section of this Agreement).

      

      3. Limitations
        of Liability.
        The
        Trustee shall have no responsibility or liability to:

      

      (a) Take
        any
        action with respect to the Property, other than as directed in paragraph
        1
        hereof and the Trustee shall have no liability to any party except for liability
        arising out of its own gross negligence or willful misconduct;

      

      (b) Institute
        any proceeding for the collection of any principal and income arising from,
        or
        institute, appear in or defend any proceeding of any kind with respect to,
        any
        of the Property unless and until it shall have received instructions from
        the
        Company given as provided herein to do so and the Company shall have advanced
        or
        guaranteed to it funds sufficient to pay any expenses incident
        thereto;

      

      (c) Change
        the investment of any Property, other than in compliance with paragraph
        1(c);

      

      (d) Refund
        any depreciation in principal of any Property;

      

      (e) Assume
        that the authority of any person designated by the Company to give instructions
        hereunder shall not be continuing unless provided otherwise in such designation,
        or unless the Company shall have delivered a written revocation of such
        authority to the Trustee;

      

      (f) The
        other
        parties hereto or to anyone else for any action taken or omitted by it, or
        any
        action suffered by it to be taken or omitted, in good faith and in the exercise
        of its own best judgment, except for its gross negligence or willful misconduct.
        The Trustee 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 Trustee), 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 Trustee, in good faith, to be
        genuine and to be signed or presented by the proper person or persons. The
        Trustee shall not be bound by any notice or demand, or any waiver, modification,
        termination or rescission of this agreement or any of the terms hereof, unless
        evidenced by a written instrument delivered to the Trustee signed by the
        proper
        party or parties and, if the duties or rights of the Trustee are affected,
        unless it shall give its prior written

      consent
        thereto;

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (g) Verify
        the correctness of the information set forth in the Registration Statement
        or to
        confirm or assure that any acquisition made by the Company or any other action
        taken by it is as contemplated by the Registration Statement; and

      

      (h) Pay
        any
        taxes on behalf of the Trust Account (it being expressly understood that
        the
        Property shall not be used to pay any such taxes and that such taxes, if
        any,
        shall be paid by the Company from funds not held in the Trust
        Account).

      

      4. Termination.
        This
        Agreement shall terminate as follows:

      

      (a) If
        the
        Trustee gives written notice to the Company that it desires to resign under
        this
        Agreement, the Company shall use its reasonable efforts to locate a successor
        trustee,
        during
        which time the Trustee shall continue to act in accordance with this
        Agreement.
        At such
        time that the Company notifies the Trustee that a successor trustee has been
        appointed by the Company and has agreed to become subject to the terms of
        this
        Agreement, the Trustee shall transfer the management of the Trust Account
        to the
        successor trustee, including but not limited to the transfer of copies of
        the
        reports and statements relating to the Trust Account, whereupon this Agreement
        shall terminate; provided,
        however,
        that,
        in the event that the Company does not locate a successor trustee within
        ninety
        days of receipt of the resignation notice from the Trustee, the Trustee may
        submit an application to have the Property deposited with the United States
        District Court for the Southern District of New York and upon such deposit,
        the
        Trustee shall be immune from any liability whatsoever;

      

      (b) At
        such
        time that the Trustee has completed the liquidation of the Trust Account
        in
        accordance with the provisions of paragraph 1(i) hereof, and distributed
        the
        Property in accordance with the provisions of the Termination Letter, this
        Agreement shall terminate except with respect to Paragraph 2(b); or

      

      (c) On
        such
        date after _____________, 2007 (unless the Company has delivered a copy of
        an
        executed letter of intent, agreement in principle or other definitive agreement
        to the Trustee prior to _________________, in which case, such date shall
        be
        extended until ___________, 2007), when the Trustee deposits the Property
        with
        the United States District Court for the Southern District of New York in
        the
        event that, prior to such date, the Trustee has not received a Termination
        Letter from the Company pursuant to paragraph 1(i).

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      5. Miscellaneous.

      

      (a) The
        Company and the Trustee each acknowledge that the Trustee will follow the
        security procedures set forth below with respect to funds transferred from
        the
        Trust Account. Upon receipt of written instructions, the Trustee will confirm
        such instructions with an Authorized Individual at an Authorized Telephone
        Number listed on the attached Exhibit
        C.
        The
        Company and the Trustee will each restrict access to confidential information
        relating to such security procedures to authorized persons. Each party must
        notify the other party immediately if it has reason to believe unauthorized
        persons may have obtained access to such information, or of any change in
        its
        authorized personnel. In executing funds transfers, the Trustee will rely
        upon
        account numbers or other identifying numbers of a beneficiary, beneficiary's
        bank or intermediary bank, rather than names. The Trustee shall not be liable
        for any loss, liability or expense resulting from any error in an account
        number
        or other identifying number, provided
        it has
        accurately transmitted the numbers provided.

      

      (b) 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 conflict of laws.
        It may
        be executed in several counterparts, each one of which may be delivered by
        facsimile transmission and each of which shall constitute an original, and
        together shall constitute but one instrument.

      

       

      (c) This
        Agreement contains the entire agreement and understanding of the parties
        hereto
        with respect to the subject matter hereof. This Agreement or any provision
        hereof may only be changed, amended or modified by a writing signed by each
        of
        the parties hereto; provided, however, that no such change, amendment or
        modification may be made without the prior written consent of Maxim, who,
        along
        with the other underwriters of the IPO, the parties specifically agree, are
        and
        shall be a third-party beneficiary for purposes of this Agreement. As to
        any
        claim, cross-claim or counterclaim in any way relating to this Agreement,
        each
        party waives the right to trial by jury.

       

      (d) The
        parties hereto consent to the jurisdiction and venue of any state or federal
        court located in the State and County of New York for purposes of resolving
        any
        disputes hereunder. The parties hereto irrevocably submit to such jurisdiction,
        which jurisdiction shall be exclusive. The parties hereto hereby waive any
        objection to such exclusive jurisdiction and that such courts represent an
        inconvenient forum.

      

      (e) Any
        notice, consent or request to be given in connection with any of the terms
        or
        provisions of this Agreement shall be in writing and shall be sent by express
        mail or similar private courier service, by certified mail (return receipt
        requested), by hand delivery or by facsimile transmission:

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

                    
        if to the Trustee, to:

       

      American
        Stock Transfer & Trust Company

      59
        Maiden
        Lane

      New
        York,
        New York 10038

      Attn:
        Herbert J. Lemmer, Esq.

      Fax
        No.:
        (718) 331-1852

      

      if
        to the
        Company, to:

      

      Affinity
        Media International Corp.

      11601
        Wilshire Blvd., Suite 1500

      Los
        Angeles, CA 90025

      Attn:
        Howard Cohl, President

      Fax
        No.:
        (310) 203-9689

      

      in
        either
        case with a copy to:

      

      Maxim
        Group LLC

      405
        Lexington Avenue

      New
        York,
        New York 10174

      Attn:
        Clifford Teller

      Fax
        No.:
        (212) 895-3783

      

      (f) This
        Agreement may not be assigned by the Trustee without the prior consent of
        the
        Company.

      

      (g) Each
        of
        the Trustee and the Company hereby represents that it has the full right
        and
        power and has been duly authorized to enter into this Agreement and to perform
        its respective obligations as contemplated hereunder. The Trustee acknowledges
        and agrees that it shall not make any claims or proceed against the Trust
        Account, including by way of set-off, and shall not be entitled to any funds
        in
        the Trust Account under any circumstance.

      

      (h) Each
        of
        the Company and the Trustee hereby acknowledge that Maxim is a third party
        beneficiary of this Agreement.

       

      
        [Remainder
          of Page Intentionally Left Blank]

      

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      IN
        WITNESS WHEREOF, the parties have duly executed this Investment Management
        Trust
        Agreement as of the date first written above.

      

      AMERICAN
        STOCK TRANSFER & TRUST 

      COMPANY,
        as Trustee

      

      

      

      By:
        

      __________________________

      Name:
        

      Title:

      

      

      

      AFFINITY
        MEDIA INTERNATIONAL CORP.

      

      

      By:
        

      ___________________________

      Name:
        Howard Cohl 

      Title:  President

      

      

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      EXHIBIT
        A

      

      [LETTERHEAD
        OF COMPANY]

      

      [INSERT
        DATE]

      

      American
        Stock Transfer & Trust Company

      59
        Maiden
        Lane

      New
        York,
        New York 10038

      Attn:
        Herbert J. Lemmer, Esq.

      

      Re:
        Trust
        Account No. _______________ Termination Letter

      

      Gentlemen:

      

      Pursuant
        to paragraph 1(i) of the Investment Management Trust Agreement between Affinity
        Media International Corp. ("Company")
        and
        American Stock Transfer & Trust Company ("Trustee"),
        dated
        as of ________, 2005 ("Trust
        Agreement"),
        this
        is to advise you that the Company has entered into an agreement ("Business
        Agreement")
        with
        __________________ ("Target
        Business")
        to
        consummate a business combination with Target Business (a "Business
        Combination")
        on or
        about [INSERT DATE]. The Company shall notify you at least 48 hours in advance
        of the actual date of the consummation of the Business Combination
        ("Consummation
        Date").

      

      In
        accordance with the terms of the Trust Agreement, we hereby authorize you
        to
        commence liquidation of the Trust Account to the effect that, on the
        Consummation Date, all of funds held in the Trust Account will be immediately
        available for transfer to the account or accounts that the Company shall
        direct
        on the Consummation Date.

      

      On
        the
        Consummation Date (i) counsel for the Company shall deliver to you written
        notification that the Business Combination has been consummated and (ii)
        the
        Company shall deliver to you written instructions with respect to the transfer
        of the funds held in the Trust Account ("Instruction
        Letter").
        You
        are hereby directed and authorized to transfer the funds held in the Trust
        Account immediately upon your receipt of the counsel's letter and the
        Instruction Letter, in accordance with the terms of the Instruction Letter.
        In
        the event that certain deposits held in the Trust Account may not be liquidated
        by the Consummation Date without penalty, you will notify the Company of
        the
        same and the Company shall direct you as to whether such funds should remain
        in
        the Trust Account and distributed after the Consummation Date to the Company.
        Upon the distribution of all the funds in the Trust Account pursuant to the
        terms hereof, the Trust Agreement shall be terminated.

      

      In
        the
        event that the Business Combination is not consummated on the Consummation
        Date
        described in the notice thereof and we have not notified you on or before
        the
        original Consummation Date of a new Consummation Date, then the funds held
        in
        the Trust Account shall be reinvested as provided in the Trust Agreement
        on the
        business day immediately following the Consummation Date as set forth in
        the
        notice.

      
        
          
            A-1

          

        

        
           

          
            

          

        

        
           

        

      

      Very
        truly yours,

      

      AFFINITY
        MEDIA INTERNATIONAL CORP.

      

      

      By:

      _________________________________

      Name:

      Title:

      

      By:

      _________________________________

      Name:

      Title:

      

      

      cc: Maxim
        Group LLC

      

      
        
          
            A-2

          

           

        

        
           

          
            

          

        

        
           

          
          

        

      

      

      EXHIBIT
        B

      

      

      [LETTERHEAD
        OF COMPANY]

      

      [INSERT
        DATE]

      

      American
        Stock Transfer & Trust Company

      59
        Maiden
        Lane

      New
        York,
        New York 10038

      Attn:
        Herbert J. Lemmer, Esq.

      

      

      Re:
        Trust
        Account No. _______________ Termination Letter

      

      Gentlemen:

      

      Pursuant
        to paragraph 1(i) of the Investment Management Trust Agreement between Affinity
        Media International Corp. ("Company")
        and
        American Stock Transfer & Trust Company ("Trustee"),
        dated
        as of __________, 2005 ("Trust
        Agreement"),
        this
        is to advise you that the Board of Directors of the Company has voted to
        dissolve and liquidate the Trust Account. Attached hereto is a copy of the
        minutes of the meeting of the Board of Directors of the Company relating
        thereto, certified by the Secretary of the Company as true and correct and
        in
        full force and effect.

      

      In
        accordance with the terms of the Trust Agreement, we hereby authorize you,
        to
        commence liquidation of the Trust Account. You will notify the Company and
        JPMorgan Chase NY Bank ("Designated
        Paying Agent")
        in
        writing as to when all of the funds in the Trust Account will be available
        for
        immediate transfer ("Transfer
        Date").
        The
        Designated Paying Agent shall thereafter notify you as to the account or
        accounts of the Designated Paying Agent that the funds in the Trust Account
        should be transferred to on the Transfer Date so that the Designated Paying
        Agent may commence distribution of such funds in accordance with the Company's
        instructions. You shall have no obligation to oversee the Designated Paying
        Agent's distribution of the funds. Upon the payment to the Designated Paying
        Agent of all the funds in the Trust Account, the Trust Agreement shall be
        terminated.

      

      [Remainder
        of Page Intentionally Left Blank]

      

      

      
        
          
            B-1

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      Very
        truly yours,

      

      AFFINITY
        MEDIA INTERNATIONAL CORP.

      

      

      By:

      ________________________________

      Name:

      Title

      

      

      By:

      ________________________________

      Name:

      Title:

      

      

      

      cc: Maxim
        Group LLC

      

      
        
          
            B-2

          

           

        

        
           

          
            

          

        

        
           

          
          

        

      

      

      EXHIBIT
        C

      

      

      

      

      AUTHORIZED
        INDIVIDUAL(S)  AUTHORIZED

      FOR
        TELEPHONE CALL BACK  TELEPHONE
        NUMBER(S)

      

      

      COMPANY:

      

      Affinity
        Media International Corp.

      11601
        Wilshire Blvd., Suite 1500

      Los
        Angeles, CA 90025

      Attn:
        Howard Cohl, President   (310)
        479-1555

      

      

      TRUSTEE:

      

      American
        Stock Transfer & Trust Company

      59
        Maiden
        Lane

      New
        York,
        New York 10038

      Attn:
        Herbert J. Lemmer, Esq.  (718)
        921-8209

      

      
        C-1Unassociated Document

    

      STOCK
        ESCROW AGREEMENT

      

      

      STOCK
        ESCROW AGREEMENT, dated as of __________, 2005 (the "Agreement"),
        by
        and among AFFINITY MEDIA INTERNATIONAL CORP., a Delaware corporation (the
        "Company"),
        PETER
        H. ENGEL, HOWARD COHL, PETER DOMBROWSKI, MICHAEL ARTHUR, MARC JAFFE AND FRED
        TARTER (collectively the "Initial
        Stockholders")
        and
        AMERICAN STOCK TRANSFER & TRUST COMPANY, a New York corporation (the
        "Escrow
        Agent").

      

      WHEREAS,
        the
        Company has entered into an Underwriting Agreement, dated __________, 2005
        (the
        "Underwriting
        Agreement"),
        with
        Maxim Group LLC ("Maxim")
        acting
        as representative of the several underwriters (collectively, the "Underwriters"),
        pursuant to which, among other matters, the Underwriters have agreed to purchase
        2,500,000 units (the "Units")
        of the
        Company. Each Unit consists of one share of the Company's Common Stock, par
        value $.0001 per share, and one Warrant, each Warrant to purchase one share
        of
        Common Stock, all as more fully described in the Company's final Prospectus,
        dated ___________, 2005 (the "Prospectus")
        comprising part of the Company's Registration Statement on Form S-1 (File
        No.
        333-_____) under the Securities Act of 1933, as amended (the "Registration
        Statement"),
        declared effective on _________, 2005 (the "Effective
        Date").

      

      WHEREAS,
        the
        Initial Stockholders have agreed as a condition of the sale of the Units
        to
        deposit their shares of Common Stock of the Company, as set forth opposite
        their
        respective names in Exhibit A attached hereto (collectively the "Escrow
        Shares"),
        in
        escrow as hereinafter provided.

      

      WHEREAS,
        the
        Company and the Initial Stockholders desire that the Escrow Agent accept
        the
        Escrow Shares, in escrow, to be held and disbursed as hereinafter
        provided.

      

      IT
        IS AGREED:

      

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

      

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

      

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

      
        
           

        

        
           

          
            

          

        

        
           

      

              
        4.  Rights
        of Initial Stockholders in Escrow Shares.

      

      4.1  Voting
        Rights as a Stockholder.
        Subject
        to the terms of the Insider Letter described in Section 4.4 hereof and except
        as
        herein provided, the Initial Stockholders shall retain all of their rights
        as
        stockholders of the Company during the Escrow Period, including, without
        limitation, the right to vote such shares.

      

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

      

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

      

      4.4
         Insider
        Letters.
        Each of
        the Initial Stockholders has executed a letter agreement with Maxim and the
        Company, dated as indicated on Exhibit A hereto, and which is filed as an
        exhibit to the Registration Statement (the "Insider
        Letter"),
        respecting the rights and obligations of such Initial Stockholder in certain
        events, including but not limited to the liquidation of the
        Company.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      5.
        Concerning
        the Escrow Agent.

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

      

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

      

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

      

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

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

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

      

      5.6
         Discharge
        of Escrow Agent.
        The
        Escrow Agent shall resign and be discharged from its duties as escrow agent
        hereunder if so requested in writing at any time by the Company and a majority
        of the Initial Stockholders, jointly, provided,
        however,
        that
        such resignation shall become effective only upon acceptance of appointment
        by a
        successor escrow agent as provided in Section 5.5.

      

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

      

      6.
        Miscellaneous.

      

      6.1
         Governing
        Law.
        This
        Agreement shall for all purposes be deemed to be made under and shall be
        construed in accordance with the laws of the State of New York, without regard
        to the conflicts of laws principles thereof.

      

      6.2
         Third
        Party Beneficiaries.
        Each of
        the Initial Stockholders, the Company, and Escrow Agent hereby specifically
        acknowledge and agree that the Underwriters are third party beneficiaries
        of
        this Agreement and this Agreement may not be modified or changed without
        the
        prior written consent of Maxim.

      

      6.3
         Entire
        Agreement.
        This
        Agreement contains the entire agreement of the parties hereto with respect
        to
        the subject matter hereof and, except as expressly provided herein, may not
        be
        changed or modified except by an instrument in writing signed by the party
        to be
        charged.

      

      6.4
         Headings.
        The
        headings contained in this Agreement are for reference purposes only and
        shall
        not affect in any way the meaning or interpretation thereof.

      

      6.5
         Binding
        Effect.
        This
        Agreement shall be binding upon and inure to the benefit of the respective
        parties hereto and their legal representatives, successors and
        assigns.

      

      6.6
         Notices.
        Any
        notice or other communication required or which may be given hereunder shall
        be
        sufficiently given when so delivered if by hand or overnight delivery or
        if sent
        by certified mail or private courier service within five days after deposit
        of
        such notice, postage prepaid, or sent by facsimile transmission (with
        confirmation of receipt), addressed as follows:

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      If
        to the
        Company, to:

      Affinity
        Media International Corp.

      11601
        Wilshire Blvd., Suite 1500

      Los
        Angeles, CA 90025

      Attn:
        Howard Cohl, President 

      Fax:
        (310) 203-9689

      

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

      

      and
        if to
        the Escrow Agent, to:

      

      American
        Stock Transfer & Trust Company

      59
        Maiden
        Lane

      New
        York,
        New York 10038

      Attn:
        Herbert J. Lemmer, Esq.

      Fax:
        (718) 331-1852

      

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

      

      Ellenoff
        Grossman & Schole LLP

      370
        Lexington Avenue

      New
        York,
        New York 10017

      Attn:
        Stuart Neuhauser, Esq.

      Fax:
        (212) 370-7889

      

      and:

      

      Maxim
        Group LLC

      405
        Lexington Avenue

      New
        York,
        New York 10174

      Attn:
        Clifford Teller, Managing Director

      Fax:
        (212) 895-3783

      

      and:

      

      Lowenstein
        Sandler PC

      65
        Livingston Avenue

      Roseland,
        New Jersey 07068

      Attn:
        Steven Skolnick, Esq.

      Fax:
        (973) 597-2477

      

      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.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

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

      

      6.8 Counterparts.
        This
        Agreement may be executed in several counterparts, each one of which shall
        constitute an original and may be delivered by facsimile transmission, and
        together shall constitute one instrument.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

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

      

      

      AFFINITY
        MEDIA INTERNATIONAL CORP.

      

      

            By:
        

      ___________________________

        Name:
        Howard Cohl

        Title:
        President

      

      

      INITIAL
        STOCKHOLDERS         

      

      

      

      ____________________________

        Peter
        H.
        Engel  

      

      

      ____________________________

        Howard
        Cohl

      

      

      ____________________________

        Peter
        Dombrowski

      

      

      ____________________________

        Michael
        Arthur

      

      

      ____________________________

        Marc
        Jaffe

      

      

      ____________________________

        Fred
        Tarter

      

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      AMERICAN
        STOCK TRANSFER

      &
        TRUST COMPANY

      

      

      By:

      ________________________

      Name:

      Title:

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      EXHIBIT
        A

      

      

      
        	
                 Name and Address of 

                Initial
                  Stockholder      

              	
                 Number 

                of Shares 

              	
                 Stock 

                Certificate Number 

              	
                 Date of

                Insider
                  Letter

              
	
                Peter H. Engel

                
                  c/o
                    Affinity Media International Corp.

                  11601
                    Wilshire Blvd., Suite 1500

                  Los
                    Angeles, CA 90025

                   

                

              	 331,251	 	 
	Howard Cohl
                
                  c/o
                    Affinity Media International Corp.

                  11601
                    Wilshire Blvd., Suite 1500

                  Los
                    Angeles, CA 90025

                   

                

              	 221,875	 	 
	
                Peter Dombrowski   

                
                  c/o
                    Affinity Media International Corp.

                  11601
                    Wilshire Blvd., Suite 1500

                  Los
                    Angeles, CA 90025

                   

                

              	  37,500	 	 
	
                Michael Arthur

                
                  c/o
                    Affinity Media International Corp.

                  11601
                    Wilshire Blvd., Suite 1500

                  Los
                    Angeles, CA 90025

                   

                

              	  11,458	 	 
	
                 Marc Jaffe

                
                  c/o
                    Affinity Media International Corp.

                  11601
                    Wilshire Blvd., Suite 1500

                  Los
                    Angeles, CA 90025

                   

                

              	  11,458	 	 
	
                Fred Tarter

                
                  c/o
                    Affinity Media International Corp.

                  11601
                    Wilshire Blvd., Suite 1500

                  Los
                    Angeles, CA 90025

                

              	  11,458	 	 

      

    

     

     

    
      
         

      

      
        9

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