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Initial Public Offering

Underwriting Agreement

Initial Public Offering | Document Parties: AFFINITY MEDIA INTERNATIONAL CORP., | Maxim Group LLC | Affinity International Corp. You are currently viewing:
This Underwriting Agreement involves

AFFINITY MEDIA INTERNATIONAL CORP., | Maxim Group LLC | Affinity International Corp.

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Title: Initial Public Offering
Date: 5/8/2006

Initial Public Offering, Parties: affinity media international corp.  , maxim group llc , affinity international corp.
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May 2, 2006

 

Affinity International Corp.

11601 Wilshire Blvd., Suite 1500

Los Angeles, CA 90025

 

Maxim Group LLC

405 Lexington Avenue

New York, NY 10174

 

Re:   Initial Public Offering

 

Gentlemen:

 

The undersigned stockholder, officer and/or director of Affinity International Corp. (“Company”), in consideration of Maxim Group LLC (“Maxim”) entering into a letter of intent (“Letter of Intent”) to underwrite an initial public offering of the securities of the Company (“IPO”) and embarking on the IPO process, hereby agrees as follows (certain capitalized terms used herein are defined in paragraph 12 hereof):

 

1.   If the Company solicits approval of its stockholders of a Business Combination, the undersigned will vote (i) all Insider Shares owned by him in accordance with the majority of the votes cast by the holders of the IPO Shares and (ii) all of the shares that may be acquired by him in the Private Placement, the IPO or in the aftermarket for the Business Combination.

 

2.   In the event that the Company fails to consummate a Business Combination within 18 months from the effective date (“Effective Date”) of the registration statement relating to the IPO (or 24 months under the circumstances described in the prospectus relating to the IPO), the undersigned will take all reasonable actions within his power to cause the Company to liquidate as soon as reasonably practicable. In such event, the undersigned hereby waives any and all right, title, interest or claim of any kind in or to any liquidating distributions by the Company, including, without limitation, any distribution of the Trust Fund (as defined in the Letter of Intent) as a result of such liquidation with respect to his Insider Shares and the Private Placement Shares (“Claim”) and hereby waives any Claim 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 Fund for any reason whatsoever. The undersigned agrees to indemnify and hold harmless the Company 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) to which the Company may become subject as a result of any claim by any vendor that is owed money by the Company for services rendered or products sold but only to the extent necessary to ensure that such loss, liability, claim, damage or expense does not reduce the amount in the Trust Fund (as defined in the Letter of Intent).

 


 

Affinity International Corp.

Maxim Group LLC  

 

May 2, 2006

 

3.   In order to minimize potential conflicts of interest which may arise from multiple affiliations, the undersigned agrees to present to the Company for its consideration, and not to any other person or entity unless the opportunity is rejected by the Company, those opportunities to acquire an operating company the undersigned reasonably believes are suitable opportunity for the Company, until the earlier of the consummation by the Company of a Business Combination, the liquidation of the Company or until such time as the undersigned ceases to be an officer or director of the Company, subject to any fiduciary obligations the undersigned might have.

 

4.   The undersigned acknowledges and agrees that the Company will not consummate any Business Combination which involves a company which is affiliated with any of the Insiders unless the Company obtains an opinion from an independent investment banking firm reasonably acceptable to Maxim that the business combination is fair to the Company’s stockholders from a financial perspective.

 

5.   Neither the undersigned, any member of the family of the undersigned, nor any Affiliate of the undersigned will be entitled to receive and will not accept any compensation for services rendered to the Company prior to the consummation of the Business Combination; provided that (i) the undersigned shall be entitled to receive (a) reimbursement from the Company for his out-of-pocket expenses incurred in connection with seeking and consummating a Business Combination and (b) if, at any time following a Business Combination, the publicly-traded Common Stock of the Company reaches a volume weighted average trading price of $6.60 per share for each day during any five trading day period, the undersigned, together with the Company’s other stockholders (prior the IPO), will be issued, collectively, five-year warrants for the purchase of an aggregate of 200,000 shares of the Company’s Common Stock for $.10 per share and if, following a Business Combination, the Company’s publicly-traded Common Stock reaches a volume weighted average trading price of $7.20 per share for each day during any five trading day period, the undersigned, together with the Company’s other stockholders (prior the IPO), will be issued, collectively, five-year warrants for the purchase of an aggregate of 227,000 shares of the Company’s Common Stock for $.10 per share and (ii) commencing on the Effective Date, Silverback Books, Inc. (“Related Party”) shall be allowed to charge the Company $7,500 per month to compensate it for the Company’s use of Related Party’s offices, utilities and personnel.

 

6.   Neither the undersigned, any member of the family of the undersigned, or any Affiliate


 
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