Document:

Unassociated Document

    _________,
      2008

     

    

    Korea
      Milestone Acquisition Corporation

    SoftForum
      Building, 8th Floor

    545-7
      Dogokdong

    Gangnam,
      Seoul, Korea, 135-170

    

    Broadband
      Capital Management

    712
      Fifth
      Avenue, 49th Floor

    New
      York,
      NY 10019

    

    Re:
      Initial
      Public Offering 

     

    Ladies
      and Gentlemen:

     

    This
      letter agreement (this “Letter
      Agreement”)
      is
      being delivered to you in accordance with the Underwriting Agreement (the
“Underwriting
      Agreement”)
      entered into by and between Korea Milestone Acquisition Corporation, a Cayman
      Islands company (the “Company”),
      and
      Broadband Capital Management LLC, as representative of the several underwriters
      (the “Underwriters”),
      relating to an underwritten initial public offering (the “Offering”)
      of the
      Company’s units (the “Units”),
      each
      Unit comprised of two ordinary shares of the Company, par value $0.0001 per
      share (the “Ordinary
      Shares”),
      and
      one warrant exercisable for one Ordinary Share (each, a “Warrant”).
      Certain capitalized terms used herein are defined in Section 12
      hereof.

     

    In
      order
      to induce the Company and the Underwriters to enter into the Underwriting
      Agreement and to proceed with the Offering and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      undersigned hereby agrees with the Company and the Underwriters as
      follows:

     

    
      	 	
              1.

            	
              If
                the Company solicits the approval of its shareholders of a Business
                Combination or an Extended Period, the undersigned will (i) vote all
                Initial Ordinary Shares beneficially owned by him or it in accordance
                with
                the majority of the votes cast by the holders of the IPO Shares with
                respect to a Business Combination or the Extended Period and
                (ii) vote all IPO Shares that may be acquired by him or it in the IPO
                or in the aftermarket in favor of a Business Combination and the
                Extended
                Period.

            

    

     

    
      	 	
              2.

            	
              In
                the event that the Company fails to consummate a Business Combination
                within (x) 15 months of the closing date of the IPO or (y) 27
                months from the closing date of the IPO if the Company’s shareholders
                approve a proposal to extend the period of time to consummate a Business
                Combination by an additional 12 months and public shareholders owning
                less
                than 40% of the shares sold in the IPO exercise their conversion
                rights,
                the undersigned will, as promptly as possible, (i) cause the Trust
                Account
                to be liquidated and distributed to the holders of IPO Shares and
                (ii)
                cause the Company to liquidate as soon as reasonably practicable.
                The
                undersigned hereby waives any and all right, title, interest or claim
                of
                any kind in or to any distribution of the Trust Account and any remaining
                net assets of the Company held outside of the Trust Account as a
                result of
                such liquidation with respect to the Initial Ordinary Shares beneficially
                owned by him. The undersigned further waives any and all right, title,
                interest or claim in or to the Trust Account the undersigned may
                have in
                the future as a result of, or arising out of, any contracts or agreements
                with the Company and will not seek recourse against the Trust Account
                for
                any reason whatsoever; provided, however, that in the event that
                the
                Company fails to consummate a Business Combination and the Trust
                Account
                is liquidated and distributed, nothing herein shall prevent the
                undersigned from participating in the Trust Account pro rata with
                the
                other holders of IPO Shares with respect to any IPO Shares purchased
                by
                the undersigned as part of the IPO or in the aftermarket. In the
                event of
                the liquidation of the Trust Account, the undersigned agrees to indemnify
                and hold harmless the Company, pro rata based on the undersigned’s
                beneficial ownership of the Initial Ordinary Shares, against any
                and all
                loss, liability, claims, damage and expense whatsoever (including,
                but not
                limited to, any and all legal or other expenses reasonably incurred
                in
                investigating, preparing or defending against any litigation, whether
                pending or threatened, or any claim whatsoever) which the Company
                may
                become subject as a result of any claim by any vendor or other person
                or
                entity who is owed money by the Company for services rendered or
                contracted for, products sold or contracted for, or by any target
                business, but only to the extent necessary to ensure that such loss,
                liability, claim, damage or expense does not reduce the amount of
                funds in
                the Trust Account; provided that such indemnity shall not apply (i)
                if
                such vendor, person or entity or prospective target business executed
                an
                agreement waiving any claims against the Trust Account (even if such
                waiver is subsequently found to be invalid or unenforceable), or
                (ii) as
                to any claims under the Company’s obligation to indemnify the Underwriters
                against certain liabilities, including liabilities under the Securities
                Act of 1933, as amended (the “Securities Act”).
                The undersigned acknowledges and agrees that there will be no distribution
                from the Trust Account with respect to any warrants or Sponsors’ Warrants,
                all rights under which will terminate upon the Company’s
                liquidation. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              3.

            	
              The
                undersigned hereby (a) waives the undersigned’s right to exercise
                redemption rights with respect to any Ordinary Shares owned or to
                be owned
                by the undersigned, directly or indirectly, and (b) agrees that the
                undersigned will not seek redemption with respect to such Ordinary
                Shares
                in connection with any vote to approve (i) the Extended Period, or
                (ii) a
                Business Combination.

            

    

     

    
      	 	
              4.

            	
              The
                undersigned hereby agrees and consents to (i) escrow all of the
                undersigned’s Initial Ordinary Shares until one (1) year after the date of
                the consummation of a Business Combination, subject to the terms
                of an
                Escrow Agreement, which the Company will enter into with the undersigned
                and an escrow agent acceptable to the Company, and (ii) execute said
                Escrow Agreement, in a form acceptable to the Company.
                

            

    

     

    5.         
       
      (a) Subject
      to the pre-existing fiduciary duties of the undersigned, the undersigned agrees
      that, from the date of the Prospectus until the earliest of the Company’s
      consummation of its initial Business Combination, the Company’s liquidation, or
      until such time as the undersigned ceases to be an executive officer or director
      (as applicable), the undersigned will, and will cause companies or entities
      under the undersigned’s control to offer to the Company, before pursuing for
      himself or offering to others, any business combination opportunity presented
      to
      the undersigned with a target business (i) that has a fair market value between
      $80 million and $400 million, (ii) whose primary operations are located in
      the
      Republic of Korea, and (iii) where the opportunity is to acquire at least a
      controlling interest in the target business (which would be at least a majority
      of the voting securities of the target business and/or control through
      contractual arrangements of the target business or the majority of any governing
      body of the target business). Subject to the pre-existing fiduciary duties
      of
      the undersigned, the undersigned has agreed that the undersigned will not,
      and
      will cause each other company or entity under the undersigned’s control not to,
      pursue any such business opportunity other than on the Company’s behalf unless
      and until the Company’s board of directors, including a majority of the
      Company’s disinterested independent directors, has determined that the Company
      will not pursue such opportunity. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) The
      undersigned agrees that the undersigned will not organize or become involved
      in
      any other blank check company with a focus on acquiring a target business in
      Korea until the Company has entered into a definitive agreement regarding its
      initial Business Combination and filed a Report of Foreign Private Issuer on
      Form 6-K relating to the initial Business Combination, it being agreed and
      understood that the undersigned may, however, organize or become involved in
      other blank check companies with a focus other than acquiring a target business
      in Korea. 

     

    
      	 	
              6.

            	
              The
                undersigned agrees to serve as a member of the Board of Directors
                of the
                Company until the earlier of the consummation by the Company of its
                initial Business Combination or the liquidation of the Company;
                provided,
                however,
                that nothing herein shall be construed as providing a right of the
                undersigned to maintain any position if removed by proper corporate
                action. If for any reason, or for no reason, the undersigned no longer
                serves in each of the positions set forth opposite the undersigned's
                name
                in the Prospectus under the heading “Management” at the closing of the
                initial Business Combination or any time prior thereto, the undersigned
                will immediately forfeit all of his Initial Ordinary Shares, and
                such
                Initial Ordinary Shares will be reallocated among the remaining officers
                and directors or to any replacement officer or director, as determined
                by
                the Chairman of the Board of Directors. The undersigned's sole right
                with
                respect to any Initial Ordinary Shares so forfeited shall be to receive
                the amount originally paid by the undersigned for such shares, which
                amount shall be due and payable promptly after the consummation of
                the
                Initial Business Combination. The undersigned’s biographical information
                furnished to the Company and the Underwriters and attached hereto
                as
                Exhibit
                A
                is
                true and accurate in all material respects, does not omit any material
                information with respect to the undersigned’s background and contains all
                of the information required to be disclosed pursuant to Section 401
                of
                Regulation S-K, promulgated under the Securities Act of 1933, as
                amended.
                The undersigned’s completed questionnaires furnished to the Company and
                the Underwriters and attached hereto as Exhibit
                B
                are true and accurate in all material respects.

            

    

     

    
      	 	
              7.

            	
              The
                undersigned represents and warrants that the
                undersigned:

            

    

     

    (a) is
      not
      subject to or a respondent in any legal action for, any injunction, cease-and
      desist order or order or stipulation to desist or refrain from any act or
      practice relating to the offering of securities in any
      jurisdiction;

     

    (b) has
      never
      been convicted of or pleaded guilty to any crime (i) involving any fraud or
      (ii)
      relating to any financial transaction or handling of funds of another person
      or
      entity, or (iii) pertaining to any dealings in any securities and the
      undersigned is not currently a defendant in any such criminal proceeding; and
      

     

    (c) has
      never
      been suspended or expelled from membership in any securities or commodities
      exchange or association or had a securities or commodities license or
      registrations denied, suspended or revoked.

     

    (d) has
      repaid to Sang-Chul Kim the funds advanced by him on the undersigned’s behalf to
      pay the subscription price in respect of the Initial Ordinary Shares subscribed
      for by the undersigned.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	 	
              8.

            	
              The
                undersigned acknowledges and agrees that the Company will not consummate
                any Business Combination with any entity that is affiliated with
                any of
                the Company’s officers, directors or Existing Shareholders, unless the
                Company obtains an opinion from an independent investment banking
                firm
                indicating that the Business Combination is fair to the Company’s Public
                Shareholders from a financial
                perspective.

            

    

     

    
      	 	
              9.

            	
              Except
                as disclosed in the Prospectus, neither the undersigned nor any family
                member or affiliate of the undersigned will be entitled to receive,
                and no
                such person or entity will accept, any compensation, fee (finder’s or
                otherwise), reimbursement or payment (a) from the Company for services
                rendered to the Company prior to or in connection with the consummation
                of
                a Business Combination, other than reimbursement from the Company
                for the
                undersigned’s reasonable out-of-pocket expenses related to identifying,
                investigating and consummating a Business Combination, or (b) in
                the event
                that the undersigned or any family member or affiliate of the undersigned
                originates a Business Combination.

            

    

     

    
      	 	
              10.

            	
              The
                undersigned has full right and power, without violating any agreement
                by
                which the undersigned is bound (including, without limitation, any
                non-competition or non-solicitation agreement), to enter into this
                Letter
                Agreement and to serve as an officer, director and shareholder of
                the
                Company. The undersigned hereby consents to being named in the Prospectus
                (as determined by the Company).

            

    

     

    
      	 	
              11.

            	
              The
                undersigned agrees that until the consummation of a Business Combination,
                the undersigned will not recommend or take any action to amend or
                waive
                any provisions of Article
                49 of the Company’s second amended and restated memorandum and articles of
                association.
                

            

    

     

    
      	 	
              12.

            	
              As
                used herein, (a) a “Business
                Combination”
                shall mean the Company’s initial acquisition of, or acquisition of control
                of, one or more operating businesses having its or their principal
                place
                of business in the Republic of Korea, through a merger, stock exchange,
                stock purchase, asset acquisition, reorganization or other similar
                business combination, or contractual arrangements, having an aggregate
                fair market value of at least eighty percent (80%) of the balance
                held in
                the Trust Account (less the amount held in the Trust Account representing
                the deferred underwriting discounts and commissions and taxes payable,
                but
                including any amounts paid to redeeming shareholders in connection
                with
                the approval of any proposed extension) at the time of the execution
                of a
                definitive agreement for the Business Combination; (b) “Existing
                Shareholders”
                shall mean the officers, directors and shareholders of the Company
                prior
                to the Offering; (c) “Initial
                Ordinary Shares”
                shall mean all of the Ordinary Shares owned by an Existing Shareholder
                prior to the Offering (and shall include any Ordinary Shares issued
                as
                dividends with respect to such shares); (d) “Public
                Shareholders”
                shall mean the holders of securities issued in the Offering; (e)
                “Trust
                Account”
                shall mean the trust account established for the benefit of the Public
                Shareholders into which a portion of the net proceeds of the Offering
                will
                be deposited; and (f) the “Extended
                Period”
                shall mean the additional 12-month period to approve a Business
                Combination as more specifically described in the Registration
                Statement.

            

    

     

    
      	 	
              13.

            	
              The
                undersigned acknowledges and understands that the Company will rely
                upon
                the agreements, representations and warranties set forth herein in
                proceeding with the Offering. Nothing contained herein shall be deemed
                to
                render the Underwriters a representative of, or a fiduciary with
                respect
                to, the Company, its shareholders, or any creditor or vendor of the
                Company with respect to the subject matter
                hereof.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	 	
              14.

            	
              The
                undersigned hereby agrees to take, or cause to be taken, all actions
                (including, without limitation, executing all agreements and documents)
                and to do, or cause to be done, all things necessary, proper or advisable
                to fulfill the undersigned’s obligations under this Letter Agreement, or
                as may otherwise be requested or required of the undersigned by the
                Company. 

            

    

     

    
      	 	
              15.

            	
              This
                Letter Agreement constitutes the entire agreement and understanding
                of the
                parties hereto in respect of its subject matter and supersedes all
                prior
                understandings, agreements, or representations by or among the parties
                hereto, written or oral, to the extent they relate in any way to
                the
                subject matter hereof or the transactions contemplated hereby. This
                Letter
                Agreement may not be amended, modified or waived as to any particular
                provision, except by a written instrument executed by all parties
                hereto.
                No party hereto may assign either this Letter Agreement or any of
                its
                rights, interests, or obligations hereunder without the prior written
                approval of the other parties hereto. Any purported assignment in
                violation of this Section 15 shall be void and ineffectual and shall
                not
                operate to transfer or assign any interest or title to the purported
                assignee. This Letter Agreement, the entire relationship of the parties
                hereto, and any litigation between the parties (whether grounded
                in
                contract, tort, statute, law or equity) shall be governed by, construed
                in
                accordance with, and interpreted pursuant to the laws of the State
                of New
                York, without giving effect to its choice of laws principles. The
                undersigned hereby agrees that any action, proceeding or claim against
                the
                undersigned arising out of, or relating in any way to this Letter
                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. The undersigned
                hereby
                irrevocably and unconditionally waives the right to a trial by jury
                in any
                action, suit, counterclaim or other proceeding (whether based on
                contract,
                tort, or otherwise) arising out of, connected with or relating to
                this
                Letter Agreement. The undersigned hereby agrees to appoint Samuel
                Effron
                at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., 666 Third
                Avenue,
                New York, New York 10017 (the “Agent”)
                for the service of process in the State of New York, which such Agent
                shall be reasonably acceptable to the Company and Broadband Capital
                Management ("Broadband"),
                to receive, for the undersigned and on the undersigned's behalf,
                service
                of process in any proceeding. If for any reason such Agent is unable
                to
                act as such, the undersigned will promptly (i) notify the Company
                and
                Broadband and (ii) appoint a substitute agent reasonably acceptable
                to
                each of the Company and Broadband, and nothing in this Letter Agreement
                will affect the right of either party to serve process in any other
                manner
                permitted by law. This Letter Agreement shall be binding on the
                undersigned and the undersigned’s respective heirs, personal
                representatives, successors and assigns. This Letter Agreement shall
                terminate on the earlier of (a) the expiration of the longest lock-up
                period applicable to the undersigned’s Initial Ordinary Shares and (b) the
                liquidation of the Company; provided that such termination shall
                not
                relieve the undersigned from liability for any breach of this Letter
                Agreement prior to its termination.

            

    

     

    

     

    

     

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

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	 	 
	 	
              Sincerely,

            
	 
 	 
 	 
 
	 	 	 
	 	
              
Yong
              Hyun Kang 
	 	 

    

    Accepted
      and agreed:

     

    

     

    KOREA
      MILESTONE ACQUISITION CORPORATION

    

    

    

    By:_________________________________

     

    Name:
      

     

    Title:
      

     

    

    

    BROADBAND
      CAPITAL MANAGEMENT LLC 

    

    

    

    By:_________________________________

     

    Name:
      

     

    Title:
      

     

    

     

    
      
        
          

        

        
        

      

      
        6

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

     

    BIOGRAPHICAL
      INFORMATION FURNISHED TO THE COMPANY

     

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      B

     

    QUESTIONNAIRESUnassociated Document

     

    

    __________________,
      2008

    

    

    Broadband
      Capital Management LLC

    712
      Fifth
      Avenue, 49th Floor

    New
      York,
      NY 10019

    

    Re:
      Korea
      Milestone Acquisition Corporation 

    

    Gentlemen:
      

    

    This
      letter will confirm the agreement of the undersigned to enter into a Rule
      10b5-1 Plan to purchase warrants (“Warrants”) of Korea Milestone Acquisition
      Corporation (“Company”) included in the units (“Units”) being sold in the
      Company’s initial public offering (“IPO”) upon the terms and conditions set
      forth herein. Each Unit is comprised of two shares of common stock of the
      Company (“Common Stock”) and one Warrant. The shares of Common Stock and
      Warrants will not be separately tradable until the 90th
      day
      after the date of the prospectus relating to the Company’s IPO, unless Broadband
      Capital Management LLC (“Broadband”) informs the Company of its decision to
      allow earlier separate trading. 

    

    The
      undersigned agrees that this letter agreement (which may be evidenced by
      original or facsimile counterpart signatures hereto) constitutes an irrevocable
      order for Daewoo Securities Co., Ltd. (the “Broker”) to purchase for the
      undersigned’s account during the period commencing on the later of (i) the date
      separate trading of the Warrants commences (“Separation Date”) and (ii) 60
      calendar days after termination of the “restricted period” in connection with
      the Company’s IPO under Regulation M under the Securities Exchange Act of 1934,
      as amended (the “Exchange Act”), and ending on the date that is the earlier of
      (a) 15 months after the consummation of the IPO or (b) the consummation of
      the
      Company's initial business combination (such period is hereinafter referred
      to as the “Purchase Period”) up to 5,000,000 Warrants (and, up to an additional
      375,000 Warrants in the event and to the extent that Broadband, as
      representative of the underwriters of the IPO, exercises its over-allotment
      option) (“Maximum Warrant Purchase”). The undersigned further agrees that this
      letter agreement constitutes an irrevocable “good till cancel” limit order at a
      price of $2.00 per Warrant. The
      undersigned agrees to fund the undersigned’s account fully on or
      before the effective date of the Company’s registration statement on Form
      F-1 in connection with the IPO. Upon
      the
      earlier to occur of 46 days after the effective date or upon notification from
      Broadband that the over-allotment option will not be exercised for more than
      375,000 Units,
      the
      Broker shall return to the undersigned an amount equal to (x) $2.00 multiplied
      by (y) the difference between 375,000 and the actual number of Warrants issued
      by the Company upon exercise of the over-allotment option. The Broker
      shall provide to Broadband, on a monthly basis, statements confirming that
      there
      are sufficient funds in the brokerage accounts where the Warrants will be
      purchased to satisfy the Maximum Warrant Purchase. On each day on which the
      NASDAQ Stock Market (the “Exchange”) is open for trading during the Purchase
      Period, Broker shall use commercially reasonable efforts to purchase, as agent
      and for the account of the undersigned, up to 5,000,000 Warrants (and up to
      5,375,000 in the event and to the extent that Broadband, as representative
      of
      the underwriters of the IPO, exercise its over-allotment option) at a price
      of
      $2.00 per Warrant and agrees to fill such order in such amounts and at such
      times as it may determine, in its sole discretion, during the Purchase Period
      and in compliance with Regulation M under the Exchange Act and all applicable
      laws. 

    

    The
      undersigned may notify the Broker that all or part of the Maximum Warrant
      Purchase will be made by an affiliate of the undersigned (or another person
      or
      entity introduced to the Broker by the undersigned (a “Designee”)) who (or
      which) has an account with the Broker and, in such event, the Broker will make
      such purchase on behalf of said affiliate or Designee; provided, however, that
      the undersigned hereby agrees to make payment of the purchase price of such
      purchase in the event that the affiliate or Designee fails to make such payment.
      

    

    The
      Broker will promptly notify the undersigned of any purchase of Warrants
      hereunder so that the undersigned can comply with applicable reporting
      requirements, if any, on a timely basis. The undersigned agrees that he shall
      not sell or transfer the Warrants until after the consummation of a merger,
      capital stock exchange, asset acquisition or other similar business combination
      with an operating business and acknowledges that, at the option of Broadband,
      the certificates for such Warrants shall contain a legend indicating such
      restriction on transferability. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
The
      Company and the Broker shall provide to the Securities and Exchange Commission
      (the “Commission”) promptly upon request, and in no event more than 30 days of
      such request, a daily time-sequenced schedule of all Warrant purchases made
      pursuant to this letter agreement, on a transaction-by-transaction basis,
      including: (i) size, broker (if any), time of execution, price of purchase;
      and
      (ii) the exchange, quotation system, or other facility through which the warrant
      purchase occurred. In addition, representatives of the Company and the Broker
      shall be made available (in person at the offices of the Commission in
      Washington, DC or by telephone) to respond to inquiries by the Commission
      regarding their purchase(s).

    
       

      Very
        truly yours,

    

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	 	      
              	 
	 	
              

              Sang-Chul
                Kim

            
	 	 

    

    
      	
              ACKNOWLEDGED
                AND AGREED:

            
	 
	
              BROADBAND
                CAPITAL MANAGEMENT LLC

            
	 	 
	
              By:

            	 	
              ____________________________

              Name:

              Title:

            
	 
	
              DAEWOO
                SECURITIES CO., LTD.

            
	 	 
	
              By:

            	 	
              ____________________________

              Name:

              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]