Warrant Purchase Agreement between J. Patrick Michaels, Jr. and EarlyBirdCapital, Inc. regarding CEA Acquisition Corporation
This agreement confirms that J. Patrick Michaels, Jr. will purchase up to 1,000,000 warrants of CEA Acquisition Corporation through EarlyBirdCapital, Inc. at market prices not exceeding $0.65 per warrant, within forty trading days after the warrants become separately tradeable. EarlyBirdCapital will execute the purchase without charging fees or commissions. The warrants cannot be sold or transferred until CEA Acquisition Corporation completes a business combination in the entertainment, media, or communications industry. The agreement also allows for purchases by affiliates or designees, with payment guaranteed by Michaels if needed.
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Exhibit 10.12
November 12, 2003
EarlyBirdCapital, Inc.
600 Third Avenue
33rd Floor
New York, New York 10016
- Re:
- CEA Acquisition Corporation
Gentlemen:
This letter will confirm the agreement of the undersigned to purchase warrants ("Warrants") of CEA 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 one share of Common Stock and two Warrants. The shares of Common Stock and Warrants will not be separately tradeable until 90 days after the effective date of the Company's IPO unless EarlyBirdCapital, Inc. ("EBC") informs the Company of its decision to allow earlier separate trading.
The undersigned agrees that this letter agreement constitutes an irrevocable order for EBC to purchase for the undersigned's account within the forty trading-day period commencing on the date separate trading of the Warrants commences ("Separation Date") up to 1,000,000 Warrants at market prices not to exceed $0.65 per Warrant ("Maximum Warrant Purchase"). EBC (or such other broker dealer(s) as EBC may assign the order to) agrees to fill such order in such amounts and at such times as it may determine, in its sole discretion, during the forty trading-day period commencing on the Separation Date. EBC further agrees that it will not charge the undersigned any fees and/or commissions with respect to such purchase obligation.
The undersigned may notify EBC that all or part of his respective Maximum Warrant Purchase will be made by an affiliate of the undersigned (or another person or entity introduced to EBC by the undersigned (a "Designee")) who (or which) has an account at EBC and, in such event, EBC 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 undersigned agrees that neither he nor any affiliate or Designee shall 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 in the entertainment, media and communications industry and acknowledges that, at the option of EBC, the certificates for such Warrants shall contain a legend indicating such restriction on transferability.
| Very truly yours, | ||
| /s/ J. PATRICK MICHAELS, JR. J. Patrick Michaels, Jr. |
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