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Exhibit 10.12    
    

 
  STOCK ESCROW AGREEMENT    
    

        STOCK ESCROW AGREEMENT, dated as of                        , 2008
("Agreement"), by and among CHERRY TREE ACQUISITION CORP., a Delaware corporation ("Company"),
ANTON J. CHRISTIANSON, GORDON F. STOFER, JOHN C. BERGSTROM, DAVID G. LATZKE, ARTHUR F. SCHLOBOHM IV, TIMOTHY M. HEANEY, JOHN S. BODE and CT
COMPANIES, LLC (collectively "Initial Stockholders") and CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York corporation ("Escrow Agent"). 

        WHEREAS,
the Company has entered into an Underwriting Agreement, dated                        , 2008 ("Underwriting Agreement"), with
Lazard Capital Markets LLC ("Lazard") acting as
representative of the several underwriters (collectively, the "Underwriters"), pursuant to which, among other matters, the Underwriters have agreed to purchase 10,000,000 units ("Units") of the
Company, plus up to an additional 1,500,000 Units pursuant to an over-allotment option granted to the Underwriters. Each Unit consists of one share of the Company's common stock, par value
$.0001 per share ("Common Stock"), and one warrant ("Warrant") to purchase one share of Common Stock, 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. 333-148087) under the Securities Act of 1933, as amended
("Registration Statement"), declared effective on                        , 2008 ("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 "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 one year after the
Company consummates a Business Combination (as such term is defined in the Registration Statement) ("Escrow Period"), on which date it shall, upon written instructions from each Initial Stockholder,
disburse each of the Initial Stockholder's Escrow Shares (and any applicable stock power) 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;
provided further, that if the Underwriters do not exercise their over-allotment option to purchase an additional 1,500,000 Units of the Company in full (as described in the Prospectus),
the Initial Stockholders agree that the Escrow Agent shall return to the Company for cancellation, at no cost, the number of Escrow Shares held by each Initial Stockholder determined by multiplying
(a) the product of (i) 375,000, 

 

multiplied
by (ii) a fraction, (x) the numerator of which is the number of Escrow Shares held by each Initial Stockholder, and (y) the denominator of which is the total number of
Escrow Shares, by (b) a fraction, (i) the numerator of which is 1,500,000 minus the number of shares of Common Stock purchased by the Underwriters upon the exercise of their
over-allotment option, and (ii) the denominator of which is 1,500,000; provided further, that if, after the Company consummates a Business Combination, 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 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. 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 ("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) to an entity's members upon its liquidation, (ii) by bona fide gift to a member of an 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, (iii) by virtue of the laws of descent and distribution upon death of any Initial
Stockholder, (iv) pursuant to a qualified domestic relations order or (v) by private sales made at or prior to the consummation of a Business Combination at prices no greater than the
price at which the shares were originally purchased; 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. 

        4.4    Insider Letters.    Each of the Initial Stockholders has executed a letter agreement with Lazard and the
Company, dated as indicated on Exhibit A hereto, and which is filed as an exhibit to the Registration Statement ("Insider Letter"), respecting the rights and obligations of such Initial
Stockholder 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 

2

 

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 reasonable 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. 

        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 other parties hereto, 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. 

        5.8    Waiver.    The Escrow Agent hereby waives any and all right, title, interest or claim of any kind (each, a
"Claim") in or to any distribution of the Trust Account (as defined in the 

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Investment
Management Trust Agreement dated as of the date hereof by and between the Company and the Escrow Agent, as trustee thereunder) 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. 

        6.2    Third Party Beneficiaries.    Each of the Initial 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 Lazard. 

        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 the 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 in writing and
either be delivered personally or be mailed, certified or registered mail, or by private national courier service, return receipt requested, postage prepaid, and shall be deemed given when so
delivered personally or, if mailed, two days after the date of mailing, as follows: 

If
to the Company, to: 

Cherry
Tree Acquisition Corp.

301 Carlson Parkway, Suite 103

Minneapolis, Minnesota 55305

Attn:    David G. Latzke 

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

and
if to the Escrow Agent, to: 

Continental
Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn:    Steven Nelson 

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

Graubard
Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attn:    David Alan Miller, Esq. 

4

 

and:

Lazard
Capital Markets LLC

30 Rockefeller Plaza

New York, NY 10020

Attn:    Robert Lagay, General Counsel 

and:

Dechert LLP

1775 I Street, NW

Washington, D.C. 20006

Attn:    Thomas J. Friedman, Esq. 

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

        6.7    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. 

        6.8    Counterparts.    This Agreement 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. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK] 

5

 

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

	 	 	CHERRY TREE ACQUISITION CORP.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

	

 	
 	

INITIAL STOCKHOLDERS:
	

 	
 	

 Anton J. Christianson
	

 	

 	

 Gordon F. Stofer
	

 	

 	

 David G. Latzke
	

 	

 	

 Arthur F. Schlobohm IV
	

 	

 	

 John C. Bergstrom
	

 	

 	

 Timothy M. Heaney
	

 	

 	

 John S. Bode

	

 	
 	

CT COMPANIES, LLC
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

6

 

	

 	
 	

CONTINENTAL STOCK TRANSFER & TRUST COMPANY
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

7

 
 
 

EXHIBIT A    
    

	Name and Address of

Initial Stockholder
 
	 	Number of Shares
	 	Stock Certificate Number
	 	Date of Insider Letter

	Anton J. Christianson	 	1,210,000	 	1	 	 
	Gordon F. Stofer	 	1,210,000	 	2	 	 
	John C. Bergstrom	 	80,000	 	3	 	 
	David G. Latzke	 	60,000	 	4	 	 
	Arthur F. Schlobohm IV	 	60,000	 	5	 	 
	Timothy M. Heaney	 	30,000	 	6	 	 
	John S. Bode	 	30,000	 	7	 	 
	CT Companies, LLC	 	195,000	 	8	 	 

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Exhibit 10.12

STOCK ESCROW AGREEMENT

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Exhibit 10.13    
    

CHERRY TREE ACQUISITION CORP.  

	 	 	, 2008	 

Cherry
Tree Companies, LLC

301 Carlson Parkway, Suite 103

Minneapolis, Minnesota 55305 

Gentlemen:

        This
letter will confirm our agreement that, commencing on the effective date ("Effective Date") of the registration statement for the initial public offering ("IPO") of the securities
of Cherry Tree Acquisition Corp. ("CTAC") and continuing until the consummation by CTAC of a "Business Combination" (as described in CTAC's IPO prospectus) or CTAC's liquidation, Cherry Tree
Companies, LLC shall make available to CTAC certain office and secretarial services as may be required by CTAC from time to time, situated at 301 Carlson Parkway,
Suite 103, Minneapolis, Minnesota 55305. In exchange therefore, CTAC shall pay Cherry Tree Companies, LLC the sum of $10,000 per month on the Effective Date and continuing monthly
thereafter. 

        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 provisions, 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 party. Any purported
assignment in violation of this paragraph 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. 

	 	 	Very truly yours,
	

 	
 	

CHERRY TREE ACQUISITION CORP.
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:

Title:

AGREED
TO AND ACCEPTED BY: 

CHERRY
TREE COMPANIES, LLC 

	By:	 	 	 
	 	
	 	 
	Name:

Title:

	 	 

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Exhibit 10.13

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