Note
4—Commitments and Contingencies
The
Company has agreed to pay an aggregate of $7,500 a month for office
space and general and administrative services to an entity
affiliated with the Company, commencing February 17, 2011 and
terminating on the earlier to occur of (i) the consummation of an
initial Business Combination and (ii) the liquidation of the
Company. This affiliated entity also occasionally pays for travel
and other expenses of the Company not related to general and
administrative services. The Company is obligated to reimburse them
for these expenses. At March 31, 2012, the Company has included in
accounts payable – related party $106,025 representing an
obligation to this affiliate company for this office space, these
general and administrative services, and these reimbursable
expenses.
The
Company has engaged EBC as an investment banker in connection with
its initial Business Combination to provide it with assistance in
negotiating and structuring the terms of the initial Business
Combination. The Company anticipates that these services will
include assisting the Company with valuing and structuring any
proposed offer to be made to a target business and negotiating a
letter of intent and/or definitive agreement with any potential
target business. The Company will pay EBC a cash fee for such
services upon the consummation of its initial Business Combination
in an amount equal to $600,000. Such amounts due to EBC may be paid
out of the funds held in the trust account.
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