Document:

INVESTMENT MANAGEMENT TRUST AGREEMENT 

This Agreement is made as of           , 2008 by and between International Brands Management Group Ltd. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”). 

WHEREAS, the Company’s Registration Statement on Form S-1, as amended, No. 333-147586 (together with any registration statement filed pursuant to Rule 462(b), 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, Pali Capital, Inc. is acting as the representative (the “Representative”) to the underwriters in the IPO (collectively, with the Representative, the “Underwriters”); and 

WHEREAS, the Company has completed a private placement of 6,000,000 warrants for an aggregate purchase price of $6,000,000 (the “Private Placement”); and 

WHEREAS, as described in the Registration Statement, and in accordance with the Company’s Certificate of Incorporation, $198,300,000 (inclusive of all discounts and commissions including the Deferred Discount as defined below) of the proceeds of the IPO and the sale of warrants in a private placement simultaneously with the IPO ($227,250,000 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 $0.0001 per share, issued in the IPO (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, a portion of the Property consists of $7,000,000 (or $8,050,000 if the Underwriter’s over-allotment option is exercised in full) attributable to the Underwriters’ discount (“Deferred Discount”) which the Underwriters have agreed to deposit in the Trust Account (defined below); 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. 

IT IS AGREED: 

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, in a segregated trust account(s) (“Trust Account”) established by the Trustee at a branch of [JP Morgan Chase Bank, N.A.] and at a brokerage institution 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 written instruction of the Company, to invest and reinvest the Property in any “Government Security” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended, having a maturity of 180 days or less, or in money market funds selected by the Company meeting the conditions specified in paragraphs c(2), c(3) and c(4) under Rule 2a-7 promulgated under the Investment Company Act of 1940, as amended, as determined by the Company; 

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

(e) Notify the Company of all communications received by it with respect to any Property which communications require that notice be given by the Company or action be taken 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 relating to income from the Property in the Trust Account or otherwise; 

(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 in writing to do so; 

(h) Render to the Company and to the Representative, 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; 

(i) Until such time as the Trustee shall have disbursed an aggregate amount equal to $2,400,000 to the Company (net of any expenses of the Trustee payable pursuant to Section 3(c) and any income or other tax obligations relating to the income from the Property in the Trust, the amount of such tax obligations as determined by the Company), the Trustee shall, upon the written request of the Company, disburse to the Company, in cash, the amount of any income earned and collected on the Trust Account. Following such time as the Trustee shall have disbursed an amount equal to $2,400,000 to the Company (net of any expenses of the Trustee payable pursuant Section 3(c) and any income or other tax obligations relating to the income from the Property in the Trust, the amount of such tax obligations as determined by the Company), if there is any income or other tax obligation relating to
the income from the Property in the Trust Account as determined by the Company, then, from time to time, at the written instruction of the Company, the Trustee shall promptly to the extent there is not sufficient cash in the Trust Account to pay such tax obligation, liquidate such assets held

 

 

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in the Trust Account as shall be designated by the Company in writing, and disburse to the Company by wire transfer, out of the Property in the Trust Account, the amount indicated by the Company as owing in respect of such income tax obligation; and 

(j) Commence liquidation of the Trust Account promptly only upon receipt of and only in accordance with the terms of a letter (the “Termination Letter”), in a form substantially similar to that attached hereto as either Exhibit A or Exhibit B as the case by be, signed on behalf of the Company by (i) either the Chief Executive Officer or the President and (ii) the Chief Financial Officer, 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, provided, however, that in the event a Termination Letter has not been received by the 24-month anniversary of the effective date of the Registration Statement (the “Last Date”), the Trust Account shall be liquidated in accordance with the procedures set forth in the
Termination Letter attached hereto as Exhibit B to the stockholders of record on the Last Date. 

The provisions of this Section 1(j) may not be modified, amended or deleted under any circumstances. The Trustee understands and agrees that, except as provided in paragraphs 1(j), and 7(a) hereof, disbursements from the Trust Account shall be made only pursuant to a duly executed Termination Letter, together with the other documents referenced herein. 

2. Limited Distributions Of Income From Trust Account. 

Each of the parties hereto hereby acknowledge and agree that no distributions from the Trust Account shall be permitted except in accordance with Sections 1(i) and 1(j) hereof. 

3. 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 either the Chief Executive Officer, President or Chief Financial Officer of the Company. In addition, except with respect to its duties under Sections 1(i) and 1(j) 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) Subject to the provisions of Section 6 hereof, 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

 

 

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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 and the nature, basis and amount of such claim to the extent then known (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 Company shall be entitled to participate in such action with its own counsel; 

(c) Pay the Trustee an initial acceptance fee, an annual fee and a transaction processing fee for each disbursement made pursuant to Section 1(i) as set forth on Schedule A hereto, which fees shall be subject to modification by the parties from time to time. It is expressly understood that the Property shall not be used to pay such fees and further agreed that said transaction processing fees shall be deducted by the Trustee from the disbursements made to the Company pursuant to Section 1(i). The Company shall pay the Trustee the initial acceptance fee and first year’s annual fee at the consummation of the IPO and shall thereafter pay the annual fee on the anniversary of the Effective Date. The Trustee shall refund to the Company the annual 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 set forth in this Section 3(c) and as may be provided in Section 3(b) hereof (it being expressly understood that the Property shall not be used to make any payments to the Trustee under such Sections); 

(d) Provide the Representative with a copy of any Termination Letter and/or any other correspondence that it issues to the Trustee with respect to any proposed withdrawal from the Trust Account promptly after it receives same; 

(e) Provide to the Trustee any letter of intent, agreement in principle or definitive agreement that is executed prior to ____________, 2010 (the “Business Combination Deadline Date”) in connection with a business combination as described in and contemplated by the Registration Statement (a “Business Combination”) together with a certified copy of a unanimous resolution of the Board of Directors of the Company affirming that such letter of intent, agreement in principle or definitive agreement is in effect; 

(f) In connection with any vote of the Company’s stockholders regarding a Business Combination, provide to the Trustee an affidavit or certificate of a firm regularly engaged in the business of soliciting proxies and tabulating stockholder votes (which firm may be the Trustee) verifying the vote of the Company’s stockholders regarding such Business Combination; and

(g) In connection with any liquidation of the Trust Account, not to direct the Trustee, as paying agent, to make any payment not specifically permitted under this Agreement.

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

(a) to take any action with respect to the Property, other than as

 

 

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directed in Section 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) to 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 written 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) to change the investment of any Property, other than in compliance with Section 1(c); 

(d) to refund any depreciation in principal of any Property; 

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

(f) to 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, judgment, instruction, 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; 

(g) in respect of 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 unless an officer of the Trustee has actual knowledge thereof, written notice of such event is sent to the Trustee or as otherwise required under Section 1(j) hereof; 

(h) Pay any taxes on behalf of the Trust Account (it being expressly understood that, as set forth in Section 1(i), if there is any income tax obligation relating to the income of the Property in the Trust Account, then, at the written instruction of the Company, the Trustee shall disburse to the Company the amount indicated by the Company as owing in respect of such income tax obligation); and 

(i) Verify calculations, qualify or otherwise approve Company requests for distributions pursuant to Section 1(i) or 1(k). 

 

 

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5. Certain Rights of Trustee. 

(a) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or opinion of counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or opinion of counsel. The Trustee may consult with counsel and the advice of such counsel or any opinion of counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 

(b) The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. 

(c) The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Agreement. 

(d) The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Agreement, and it shall not be accountable for the Company’s use of the proceeds from the Trust Account. Notwithstanding the effective date of this Agreement or anything to the contrary contained in this Agreement, the Trustee shall have no liability or responsibility for any act or event relating to this Agreement or the transactions related thereto which occurs prior to the date of this Agreement, and shall have no contractual obligations to the Beneficiaries until the date of this Agreement. 

6. 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. 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 that arises due to any actions or omissions to act by any party after such deposit; or 

(b) At such time that the Trustee has completed the liquidation of the Trust Account in accordance with the provisions of Section 1(j) hereof and distributed the Property in accordance with the provisions of the Termination Letter, this Agreement shall terminate except with respect to Section 3(b). 

7. Waiver. 

Notwithstanding anything herein to the contrary, the Trustee hereby waives any and all right, title, interest or claim of any kind (“Claim”) in or to any distribution of the Trust

 

 

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Account, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against the Trust Account for any reason whatsoever. In the event that the Trustee has a claim against the Company under this Agreement, including, without limitation, under Section 4(b), the Trustee will pursue such claim solely against the Company and not against the Property held in the Trust Account. 

8. Miscellaneous. 

(a) The Company and the Trustee each acknowledge and agree 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 so provided to it. 

(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 the conflicts of law principles thereof. It may be executed in one or more counterparts, each of which shall constitute an original, and together shall constitute one and the same instrument. 

(c) This Agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. The parties hereto may change, waive, amend or modify any provision contained herein that may be defective or inconsistent with any other provision contained herein only upon the written consent of each of the parties hereto; provided, however, that no such change, amendment or modification (other than to correct a typographical or similar technical error) may be made to Sections 1(i), and 1(j) hereof without the consent of 95% of the Public Stockholders, it being the specific intention of the parties hereto that each Public Stockholder is and shall be a third-party beneficiary of this
Section 7(c) with the same right and power to enforce this Section 7(c) as either of the parties hereto. For purposes of this Section 7(c), the “consent of 95% of the Public Stockholders” shall mean receipt by the Trustee of a certificate from an entity certifying that (i) such entity regularly engages in the business of serving as inspector of elections for companies whose securities are publicly traded, and (ii) either (a) 95% of the Public Stockholders of record as of a record date established in accordance with Section 213(a) of the Delaware General Corporation Law, as amended (the “DGCL”), have voted in favor of such amendment or modification or (b) 95% of the Public Stockholders of record as of a record date established in accordance with Section 213(b) of the DGCL has delivered to such entity a signed writing approving such amendment or modification. 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

 

 

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state or federal court located in the City of New York for purposes of resolving any disputes hereunder. 

(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: 

if to the Trustee, to: 

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor 

New York, New York 10004

Attn: Steven G. Nelson

Tel: (212) 845-3270

Fax: (212) 509-5150

if to the Company, to: 

International Brands Management Group Ltd.

25 East 22nd Street

New York, NY 10010

Attn: David Chu, Chief Executive Officer

Tel: (212) 277-6401

Fax: (212) ___-____

with copies to: 

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, NY 10036

Attn: Christopher S. Auguste, Esq.

Tel: (212) 715-9100

Fax: (212) 715-8000

in either case with a copy on behalf of the Underwriters to: 

Pali Capital, Inc.

650 Fifth Avenue

New York, NY 10019

Attn: R. Michael Powell

Tel: (212) 259-2071

Fax: (212) 259-2093

 

 

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with a copy to: 
McDermott Will & Emery LLP

340 Madison Avenue

New York, New York 10173-1922

Attn: Joel L. Rubinstein, Esq.

Tel: (212) 547-5336

Fax: (212) 547-5444 

(f) This Agreement may not be assigned by the Trustee without the prior written 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 part of the Property under any circumstance. 

(h) The Trustee hereby consents to the inclusion of Continental Stock Transfer & Trust Company in the Registration Statement and other materials relating to the IPO. 

(i) The Underwriters shall be third party beneficiaries of this Agreement and this Agreement may not be modified or changed without the prior written consent of the Representative. 

[Signature page follows] 

 

 

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

 

	
                         
 	
                         
 	
                        CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Trustee
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
       
 	
                         
 	
       
 	
      Name: 
 	
       
 
	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                         
 

 

	
                         
 	
                         
 	
                        INTERNATIONAL BRANDS
 MANAGEMENT GROUP LTD.
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
       
 	
                         
 	
       
 	
      Name: 
 	
       
 
	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                         
 

 

 

EXHIBIT A

[LETTERHEAD OF COMPANY] 

[INSERT DATE] 

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York 10004

	
                        Attn: [  
 	
                        ]
 

	
                         
 	
                        Re: Trust Account No. [        ] Termination Letter
 

Gentlemen: 

Pursuant to Section 1(j) of the Investment Management Trust Agreement between International Brands Management Group Ltd. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”), dated as of [                      ], 2008 (the “Trust Agreement”), this is to advise you that the Company has entered into an agreement (“Business Agreement”) with [                      ] (the “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 (the “Consummation Date”). Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Trust Agreement. 

Pursuant to Section 3(e) of the Trust Agreement, we are providing you with [an affidavit] [a certificate] of [                      ], which verifies the vote of the Company’s stockholders in connection with the Business Combination. 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 the funds held in the Trust Account will be immediately available for transfer to the account or accounts that the Company shall direct in writing 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 and Pali Capital, Inc., as the representative of the underwriters of the Company’s IPO (the “Representative”) shall deliver to you joint written instructions with respect to the transfer of the funds held in the Trust Account including the Deferred Compensation (the “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 

 

 

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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 and the Representative of the same and the Company and the Representative shall jointly direct you as to whether such funds should remain in the Trust Account and be distributed after the Consummation Date to the Company or, with respect to the Deferred Discount, to the Underwriters. Upon the distribution of all the funds in the Trust Account pursuant to the terms hereof, the Trust Agreement shall automatically terminated and cease to have any further force or effect. 

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, upon the written notice of the Company, 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. 

 

	
                         
 	
                         
 	
                        Very truly yours,
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        International Brands Management Group Ltd.
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
       
 	
                         
 	
       
 	
      Name: 
 	
       
 
	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                         
 

 

 

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EXHIBIT B

[Letterhead of Company]

[Insert date]

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven Nelson & Frank DiPaolo

Re: Trust Account No. ______________Termination Letter

Gentlemen:

Pursuant to Section 1(j) of the Investment Management Trust Agreement between International Brands Management Group Ltd. (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”), dated as of ___________, 2008 (“Trust Agreement”), this is to advise you that the Company has been unable to effect a Business Combination with a Target Company prior to the Business Combination Deadline Date. Capitalized terms used but not defined herein shall have the meanings set forth in the Trust Agreement.

In accordance with the terms of the Trust Agreement, we hereby authorize you, to commence liquidation of the Trust Account as promptly as practicable to stockholders of record on the Business Combination Deadline Date. You will notify the Company in writing as to when all of the funds in the Trust Account will be available for immediate transfer (“Transfer Date”) in accordance with the terms of the Trust Agreement and the Certificate of Incorporation. You shall commence distribution of such funds in accordance with the terms of the Trust Agreement and you shall oversee the distribution of the funds. Upon the distribution of all the funds in the Trust Account, your obligations under the Trust Agreement shall be terminated. 

 

	
                         
 	
                         
 	
                        Very truly yours,
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        International Brands Management Group Ltd.
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
       
 	
                         
 	
       
 	
      Name: 
 	
       
 
	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                         
 

cc: Pali Capital, Inc.

 

 

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EXHIBIT C

AUTHORIZED INDIVIDUAL(S) AND TELEPHONE NUMBERS 

AUTHORIZED FOR TELEPHONE CALL BACK 

 

	
                        COMPANY:
 	
                        International Brands Management Group Ltd.
 
	
                         
 	
                        25 East 22nd Street
 
	
                         
 	
                        New York, NY 10010
 
	
                         
 	
                        Attn: David Chu, Chief Executive Officer
 
	
                         
 	
                        Tel: (212) 277-6401
 
	
                         
 	
                        Fax: (212) ___-____
 

 

	
                        TRUSTEE:
 	
                        Continental Stock Transfer & Trust Company
 
	
                         
 	
                        17 Battery Place
 
	
                         
 	
                        8th Floor
 
	
                         
 	
                        New York, New York 10004
 
	
                         
 	
                        Attn: Frank A. DiPaolo
 
	
                         
 	
                        Tel: (212) 845-3270
 
	
                         
 	
                        Fax: (212) 509-5150
 
	
                         
 	
                        Email: cstsgn@aol.com
 

 

 

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SCHEDULE A

Schedule of fees pursuant to Section 3(c) of Investment Management Trust Agreement between International Brands Management Group Ltd. and Continental Stock Transfer & Trust Company 

 

	
                        FEE ITEM
 	
                         
 	
                        TIME AND METHOD OF PAYMENT
 	
                         
 	
                        AMOUNT
 
	
                        Initial acceptance fee
 	
                         
 	
                        Initial closing of IPO by wire transfer
 	
                         
 	
      $1,000
 
	
                         
 	
                         
 	
                        First year, initial closing of IPO by wire transfer; thereafter on the anniversary of the effective date of the IPO by wire transfer or check
 	
                         
 	
      
 
 $3,000
 
	
                        Transaction processing fee for disbursements to Company under Section 1(i)
 	
                         
 	
                        Deduction by Trustee from disbursement made to Company under Section 1(i)
 	
                         
 	
      
 $250
 

 

	
                         
 	
                         
 	
                        Agreed:
 
	
                         
 	
                         
 	
                         
 
	
                        Dated:           , 2008  
 	
                         
 	
                        International Brands Management Group Ltd.
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
       
 	
                         
 	
       
 	
      Name: 
 	
       
 
	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                         
 

 

	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Continental Stock Transfer & Trust Co.
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
       
 	
                         
 	
       
 	
      Name: 
 	
       
 
	
                         
 	
                         
 	
                         
 	
                        Title: 
 	
                         
 

 

 

16SECURITIES ESCROW AGREEMENT

This Securities Escrow Agreement (this “Agreement”) is made and entered into as of [          ], 2008, by and among Continental Stock Transfer and Trust Company, a New York corporation (“Escrow Agent”), International Brands Management Group Ltd., a Delaware corporation (the “Company”), and the initial holders of the Company’s units (collectively, the “Stockholders”), with reference to the following facts:

A. The Company has entered into an Underwriting Agreement dated [              ], 2008 (“Underwriting Agreement”), with Pali Capital, Inc., acting as representative (“Representative”) of the underwriters (collectively, the “Underwriters”), pursuant to which, among other matters, the Underwriters have agreed to purchase 20,000,000 units (“Units”) to be issued by the Company. Each Unit consists of one share of the Company’s common stock, par value $0.0001
per share (“Common Stock”), and one warrant (“Warrant”), and each Warrant entitles the holder thereof to purchase one share of Common Stock for an exercise price of $7.00, all as more fully described in the Company’s final prospectus, dated [                 ], 2008 (“Prospectus”), comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-147586) under the Securities Act of 1933, as amended (“Registration Statement”).

B. The Stockholders own an aggregate of 5,750,000 initial units (or 5,000,000 initial units if the Underwriters’ over-allotment option is not exercised in full), each initial unit consisting of one share of Common Stock and one initial warrant to purchase one share of Common Stock.

C. The Company has also entered into a Warrant Purchase Agreement dated as of November 16, 2007 with David Chu and Christopher H. Heyn (the “Warrant Purchase Agreement”), pursuant to which Messrs. Chu and Heyn have agreed to purchase in a private placement an aggregate of 6,000,000 warrants in a form substantially identical to the warrants provided in the Units being offered by the Underwriters.

D. In order to facilitate the public offering of the Units, (i) the Stockholders have agreed to deposit all initial units, each initial unit consisting of one share of Common Stock and one initial warrant to purchase one share of Common Stock, they own as of the date hereof (the “Escrow Units”), and (ii) Messrs. Chu and Heyn have agreed to deposit all warrants they are to purchase pursuant to the Warrant Purchase Agreement (the “Escrow Warrants”, and together with the Escrow Units, the “Escrow Securities”) in escrow as hereinafter provided.

E.  The Company and the Stockholders desire that the Escrow Agent accept the Escrow Securities, in escrow, to be held and disbursed as hereinafter provided.

NOW, THEREFORE, with reference to the foregoing facts, the parties agree as follows:

	
                        1. Appointment of Escrow Agent.

                        

The Company and the 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 Securities.

                        

On or before the effective date of the Registration Statement, the Stockholders (or the Company on behalf of any or all of the Stockholders) shall each deliver to the Escrow Agent a certificate or certificates representing their Escrow Securities, to be held and disbursed subject to the terms and conditions of this Agreement. The Stockholders acknowledge that the certificate or certificates representing their Escrow Securities are legended to reflect that such Escrow Securities are subject to the terms and conditions of this Agreement.

	
                        3. Disbursement of the Escrow Securities.

                        

3.1 The Escrow Agent shall hold the Escrow Securities from the date of delivery until the applicable Release Date (the “Escrow Period”).

3.2 For purposes of this Agreement:

3.2.1 “Business Combination” shall mean a merger, capital stock exchange, asset or stock acquisition or other similar business combination with one or more operating businesses.

3.2.2 “Release Date” shall mean the Escrow Units Release Date or the Escrow Warrants Release Date, as applicable.

3.2.2.1 “Escrow Units Release Date” shall mean the earliest to occur of: (a) that date which is one year following the closing of the Business Combination, or earlier, if following the consummation of the Business Combination, the last sales price of the Common Stock equals or exceeds $14.50 per share for any 20 trading days during any 30-trading day period; (b) the Sale Date; and (c) the Trust Account Liquidation Date.

3.2.2.2 “Escrow Warrants Release Date” shall mean the later of (i) one year from the effective date of the Registration Statement and (ii) sixty (60) days following the closing of the Business Combination.

3.2.3 “Sale Date” shall mean the date after completion of a Business Combination on which a Stockholder Liquidation Event occurs.

3.2.4 “Stockholder Liquidation Event” shall mean, after the completion of a Business Combination:  (a) the merger, consolidation, reorganization or similar transaction involving the Company (or a successor to the Company) in which the common stockholders of the Company (or such successor) have the right to exchange their shares of Common Stock (or successor securities) for cash, securities or other property, but excluding a reorganization in which the common stockholders exchange their shares for shares of a newly formed holding company and have substantially the same proportionate interests in the holding company that they had in the Company (or successor); (b) the liquidation of the Company; or (c) the sale of all or substantially all of the assets of the Company.

 

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3.2.5 “Trust Account” shall mean a trust account at JP Morgan Chase Bank, N.A., maintained by Continental Stock Transfer & Trust Company, acting as trustee.

3.2.6 “Trust Account Liquidation Date” shall mean a date prior to the completion of a Business Combination upon which the Trust Account is liquidated and the funds in the Trust Account are distributed to the beneficial owners of the Trust Account.

3.3 Upon any applicable Release Date, the Escrow Agent shall disburse to each of the Stockholders upon written instructions from the Company or its counsel, their respective Escrow Securities (for which the Release Date has occurred) to the address on record of each of the Stockholders, or as may otherwise be directed by the Company or its counsel in writing.

3.4 The Company agrees to notify the Escrow Agent in advance of any anticipated Stockholder Liquidation Event or Trust Account Liquidation Date and upon the occurrence thereof, upon which occurrence, the Escrow Agent shall promptly destroy the certificates representing the Escrow Securities. The Escrow Agent shall be entitled to rely upon a certificate (the “Officer’s Certificate”), executed by the Chairman and Chief Executive Officer of the Company, in form reasonably acceptable to the Escrow Agent, that certifies that the Release Date has occurred, and shall not be required to disburse the Escrow Securities unless and until it receives the Officer’s Certificate.

	
                        4. Rights of the Stockholders in Escrow Securities.

                        

4.1 Rights as a Stockholder. Except as provided in this Section 4 and the Insider Letters (as defined below), the Stockholders shall retain all of their rights as security-holders of the Company with respect to their Escrow Securities during the applicable Escrow Periods, including, without limitation:

4.1.1 the right to vote; and

4.1.2 the right to receive dividends and distributions, if any, with cash dividends paid to the Stockholders and dividends paid in stock or other non-cash property (“Non-Cash Dividends”) delivered to the Escrow Agent to hold in accordance with the terms hereof (and the term “Escrow Securities” shall be deemed to include any Non-Cash Dividends distributed with respect to any Escrow Securities held by the Escrow Agent prior to the distribution).

4.2 Restrictions on Transfer. During the applicable Escrow Period, the Stockholders agree not to sell, transfer or assign any or all of their Escrow Securities (for which Release Date has not occurred). Notwithstanding the foregoing, the Stockholders may transfer any of their Escrow Securities to their respective ancestors, descendants or spouse or to trusts established for the benefit of such persons or the member or pursuant to a qualified domestic relations order, or to affiliated companies or to other officers or directors of the Company; provided, however, that any 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 as a stockholder and of the Insider Letter signed by transferring Stockholder. During the applicable Escrow Period, the Stockholders each agree that they may not pledge or grant a security interest in the Escrow Securities or grant a security interest in their rights under this Agreement.

 

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4.3 Insider Letters. Each of the Stockholders has executed a letter agreement with the Representative and the Company, dated as indicated on Exhibit A hereto, and which is filed as an exhibit to the Registration Statement (“Insider Letter”), respecting their rights and obligations in certain events, including but not limited to the liquidation 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 it shall have given its prior written consent thereto.

5.2 Indemnification. The Company agrees to indemnify and hold the Escrow Agent harmless from and against any expenses, including counsel fees and disbursements, or losses 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 Securities 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 Securities or it may deposit the Escrow Securities with the clerk of any appropriate court or it may retain the Escrow Securities 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 Securities 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 as set forth on Exhibit B hereto. 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 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 

 

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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.

5.5 Resignation. The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by 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, and approved by Pali, the Escrow Securities 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 Securities 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 the holders of a majority of the Escrow Securities, 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 willful misconduct.

5.8 Waiver. Notwithstanding anything herein to the contrary, the Escrow Agent hereby waives any and all right, title, interest or claim of any kind (“Claim”) in or to any distribution of 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.

	
                        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 giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. Each of the parties 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 parties hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

6.2 Entire Agreement. This Agreement together with the Insider Letters 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. This Agreement may be executed in one or more counterparts, each of which shall constitute an original, and together shall constitute one and the same instrument.

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

 

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6.4 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.

6.5 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 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:

International Brands Management Group Ltd.

25 East 22nd Street

New York, NY 10010

Attn: David Chu, Chief Executive Officer

Tel: (212) 277-6401

Fax: (212) ___-____

If to any of the Stockholders to:

c/o International Brands Management Group Ltd.

25 East 22nd Street

New York, NY 10010

Attn: David Chu, Chief Executive Officer

Tel: (212) 277-6401

Fax: (212) ___-____

If to the Escrow Agent, to:

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York  10004

Attn:  Chairman

Tel: (212) ___-____

Fax: (212) ___-____ 

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

McDermott Will & Emery LLP

340 Madison Avenue

New York, New York 10173-1922

Attn: Joel L. Rubinstein, Esq.

Tel: (212) 547-5336

Fax: (212) 547-5444 

 

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And:

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, NY 10036 

Attn:  Christopher S. Auguste, Esq.

Tel: (212) 715-9100

Fax: (212) 715-8000

Any party may change the person and address 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.

6.6 Third Party Beneficiaries. Each of the Stockholders hereby acknowledges 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 the Representative.

6.7 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 and a liquidation and dissolution of the Company is effectuated.

[Remainder of page intentionally left blank.]

 

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

 

	
                         
 	
                         
 	
                        INTERNATIONAL BRANDS MANAGEMENT GROUP LTD.
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
                         
 	
                         
 	
                         
 	
                        Name: 
 Title:
 

 

	
                         
 	
                         
 	
                        CONTINENTAL STOCK TRANSFER
  & TRUST COMPANY
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
                         
 	
                         
 	
                         
 	
                        Name: 
 Title:
 

 

	
                         
 	
                         
 	
                        [                                          
     ]
 
	
                          
 	
                         
 	
                        

                        By: 
 	
                          
 
	
                         
 	
                         
 	
                         
 	
                        Name: 
 Title:
 

 

	
                         
 	
                         
 	
                         
 	
                        OTHER STOCKHOLDERS OF INTERNATIONAL BRANDS MANAGEMENT GROUP LTD.
 
	
                          
 	
                         
 	
                         
 	
                          
 
	
                         
 	
                         
 	
                         
 	
                         
 

[Escrow Agreement]

 

 

Exhibit A

[Form of Insider Letter]

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