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EXHIBIT 10.4




INVESTMENT MANAGEMENT TRUST AGREEMENT



This Agreement is made as of                     , 2005 by and between India Globalization Capital, Inc.
(the “Company”) and Continental Stock Transfer & Trust Company (“Trustee”).



WHEREAS, the Company’s Registration Statement on Form S-1, No.                  (“Registration Statement”),
for its initial public offering of securities (“IPO”) has been declared effective as of the date
hereof by the Securities and Exchange Commission (“Effective Date”); and



WHEREAS, Ferris, Baker Watts,
Incorporated (“FBW”) is acting as the representative of the underwriters in
the IPO; and



WHEREAS, as described in the
Company’s Registration Statement, $55,000,000 of the gross proceeds
of the IPO as herein provided ($63,340,000 if the underwriters over-allotment option is exercised
in full) will be delivered to the Trustee to be deposited and held in a trust account for the
benefit of the Company, FBW and the holders of the Company’s common stock, par value $.0001 per share,
issued in the IPO (the amount to be delivered to the Trustee will be referred to herein as the
“Property”; the stockholders for whose benefit the Trustee shall hold the Property will be referred
to as the “Public Stockholders,” and the Public
Stockholders, FBW and the Company will be referred to
together as the “Beneficiaries”) and in the event the securities offered in the IPO are registered
in Colorado, pursuant to Section 11-51-302(6) of the Colorado Revised Statutes (the “CRS”). A copy
of Section 11-51-302(6) of the CRS is attached hereto and made a part hereof and



WHEREAS, a portion of the
Property consists of $2,100,000 (or $2,235,000 if the
underwriters’ over-allotment option is exercised in full)
attributable to the underwriters’ discount and non-accountable
expenses allowance which FBW, on behalf of the underwriters, has
agreed to deposit in the Trust Account (defined below); and


WHEREAS, the Company and the Trustee desire to enter into this Agreement to set forth the terms and
conditions pursuant to which the Trustee shall hold the Property; and




IT IS AGREED:



1.        AGREEMENTS AND COVENANTS OF TRUSTEE. The Trustee hereby agrees and covenants to:



(a)      Hold the Property in trust for the Beneficiaries in accordance with the terms of this
Agreement, including, without limitation, the terms of Section 11-51-302(6) of the CRS, in a
segregated trust account (“Trust Account”) established by
the Trustee at a branch of United Bank, Inc.
selected by the Trustee;



(b)      Manage, supervise and administer the Trust Account subject to the terms and conditions set
forth herein;



(c)      In a timely manner, upon the instruction of the Company, to invest and reinvest the Property in
any “Government Security.” As used herein, Government Security means any Treasury Bill issued by
the United States, having a maturity of one hundred and eighty days or less;



(d)      Collect and receive, when due, all principal and income arising from the Property, which shall
become part of the “Property,” as such term is used herein;




 









 




(e)
     Notify the Company and FBW of all communications received by it with respect to any Property requiring
action by the Company;



(f)      Supply any necessary information or documents as may be requested by the Company in connection
with the Company’s preparation of the tax returns for the Trust Account;



(g)      Participate in any plan or proceeding for protecting or enforcing any right or interest arising
from the Property if, as and when instructed by the written
instructions of the Company to do so;



(h)      Render to the Company and to FBW, and to such other person as the Company may instruct, monthly
written statements of the activities of and amounts in the Trust Account reflecting all receipts
and disbursements of the Trust Account;



(i)
     As of the date of the consummation of a
business combination (“Business Combination”), commence
liquidation of the Trust Account upon receipt of the Officers’ Certificate signed by the Chief Executive Officer and Chief Financial Officer and in accordance with the
terms of a letter (“Termination Letter”), in a form substantially similar to that attached hereto
as Exhibit A signed on behalf of the Company by its President, Chief Financial Officer or Chairman of
the Board and Secretary or Assistant Secretary. The Trustee shall complete the liquidation of the Trust Account
and distribute the Property in the Trust Account to the Beneficiaries as directed in the Termination Letter and the
other documents referred to therein. The Trustee understands and agrees that disbursements from
the Trust Account shall be made only pursuant to a duly executed Termination Letter, together with
the other documents referenced herein, including, without limitation,
an independently certified oath and report of inspector of election
in respect of the shareholder vote in favor of the Business Combination. In all cases, the Trustee shall provide FBW with a copy of
any Termination Letters, Officers’ Certificates and/or any other correspondence that it receives with respect to any
proposed withdrawal from the Trust Account promptly after it receives same.


(j)     As
of the date 18 months from the date of this Agreement (the
“LOI Termination Date”) (or 24 months from the date
hereof in the event the Company has executed the Letter of Intent
(defined below) prior to the LOI Termination Date but failed to consummate a Business
Combination (“Second Termination Date”)), commence
liquidation of the Trust Account. The Trustee, upon consultation with
the Company and FBW, shall deliver a notice to Public Stockholders of
record as of the LOI Termination Date or Second Termination Date,
whichever the case may be, by U.S. mail or via the Depository Trust
Company (“DTC”), within five days of the LOI Termination
Date or Second Termination Date, to notify the Public Stockholders of
such event and take such other actions as it may deem necessary to
inform the Beneficiaries. The Trustee shall deliver to each Public
Stockholder its ratable share of the Property against satisfactory evidence of delivery of the stock certificates
by the Public Stockholders to the Company through DTC, its Deposit
Withdraw Agent Commission (DWAC) system or as otherwise presented to
the Trustee. Notwithstanding the foregoing, if the Trustee receives a
bona fide, executed letter of intent or engagement letter (the
“Letter of Intent”) for a Business Combination prior to the
LOI Termination Date accompanied by an Officers’ Certificate as
described in Section 2(e) hereof, then the Trustee shall forego or
suspend any liquidation of the Trust Account until the earlier of a
Business Combination or the Second Termination Date.


2.        AGREEMENTS AND COVENANTS OF THE COMPANY.



(a)
     The Company hereby agrees and covenants to provide all instructions to the Trustee hereunder in writing, signed by the Company’s President or
Chairman of the Board and Chief Financial Officer. In addition,
except with respect to its duties under section 1(i) and (j) above,
the Trustee shall be entitled to rely on, and shall be protected in relying on, any verbal or
telephonic advice or instruction which it in good faith believes to be given by any one of the
persons authorized above to give written instructions, provided that
the Company and/or FBW, whichever has the authority to issue the
instructions, shall promptly
confirm such instructions in writing;




(b)
     The Company hereby agrees and covenants to hold the Trustee harmless and indemnify the Trustee from and against, any and all expenses,
including reasonable counsel fees and disbursements, or loss suffered by the Trustee in connection
with any action, suit or other proceeding brought against the Trustee involving any claim, or in
connection with any claim or demand which in any way arises out of or relates to this Agreement,
the services of the Trustee hereunder, or the Property or any income earned from investment of the
Property, except for expenses and losses resulting from the Trustee’s gross negligence or willful
misconduct. Promptly after the receipt by the Trustee of notice of demand or claim or the
commencement of any action, suit or proceeding, pursuant to which the Trustee intends to seek
indemnification under this paragraph, it shall notify the Company in writing of such claim
(hereinafter referred to as the “Indemnified Claim”). The Trustee shall have the right to conduct
and manage the defense against such Indemnified Claim, provided, that the Trustee shall obtain the
consent of the Company with respect to the selection of counsel, which consent





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shall not be unreasonably withheld. The Company may participate in such action with its own
counsel;



(c)      Pay the Trustee an initial acceptance fee of $1,000 and an annual fee of $3,000 (it being
expressly understood that the Property shall not be used to pay such fee). The Company shall pay
the Trustee the initial acceptance fee and first year’s fee at the consummation of the IPO and
thereafter on the anniversary of the Effective Date. The Trustee shall refund to the Company the
fee (on a pro rata basis) with respect to any period after the liquidation of the Trust Fund. The
Company shall not be responsible for any other fees or charges of the Trustee except as may be
provided in section 2(b) hereof (it being expressly understood that the Property shall not be
used to make any payments to the Trustee under such section);


(d)     In
the event that the Company consummates a Business Combination and the
Trust Account is liquidated in accordance with Section 1(i) hereof,
the Trustee or another independent party designated by FBW shall act
as the inspector of election to certify the results of the
shareholder vote.


(e)     The
Officers’ Certificate referenced in Sections 1(i) and (j) hereof
shall require the Chief Executive Officer and Chief Financial Officer
of the Company to each certify the following (wherever applicable):
(1) prior to the LOI Termination Date, the Company has entered into a
bona fide Letter of Intent with a target business; and/or (2) prior to
the LOI Termination Date, the Company has entered into a Business
Combination with a target business, the terms of which are
consistent with the requirements set forth in the Registration
Statement; and/or (3) prior to the Second Termination Date, the
Company has entered into a Business Combination with a target
business, the terms of which are consistent with the requirements set
forth in the Registration Statement; and (4) the Board of Directors
(the “Board”) pursuant to the unanimous written consent of
the Board has approved (where applicable): (i) the Business
Combination; and/or (ii) Letter of Intent. A copy of such consent
shall be attached as an exhibit to the Officers’ Certificate.



3.        LIMITATIONS OF LIABILITY. The Trustee shall have no responsibility or liability to:



(a)
     Take any action with respect to the
Property, other than as directed in Section 1 hereof and
the Trustee shall have no liability to any party except for liability arising out of its own gross
negligence or willful misconduct;



(b)      Institute any proceeding for the collection of any principal and income arising from, or
institute, appear in or defend any proceeding of any kind with respect to, any of the Property
unless and until it shall have received written instructions from the
Company given as provided herein to
do so and the Company shall have advanced or guaranteed to it funds sufficient to pay any expenses
incident thereto;


(c)
     Change the investment of any Property,
other than in compliance with Section 1(c) hereof;



(d)      Refund any depreciation in principal of any Property;



(e)
     Assume that the authority of any person
designated by the Company and FBW to give written instructions
hereunder shall not be continuing unless provided otherwise in such designation, or unless the
Company and FBW shall have delivered a written revocation of such authority to the Trustee;



(f)      The other parties hereto or to anyone else for any action taken or omitted by it, or any action
suffered by it to be taken or omitted, in good faith and in the exercise of its own best judgment,
except for its gross negligence or willful misconduct. The Trustee 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 Trustee), 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
Trustee, in good faith, to be genuine and to be signed or presented by the proper person or
persons. The Trustee need not investigate any fact or matter stated in
the document. The Trustee shall not be bound by any notice or demand, or any waiver, modification,
termination or rescission of this agreement or any of the terms hereof, unless evidenced by a
written instrument delivered to the Trustee signed by the proper party or parties and, if the
duties or rights of the Trustee are affected, unless it shall give its prior written consent
thereto;




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(g)      Verify the correctness of the information set forth in the Registration Statement or to confirm
or assure that any acquisition made by the Company or any other action taken by it is as
contemplated by the Registration Statement, unless an officer of the Trustee has actual knowledge thereof, written notice of such event
is sent to the Trustee or as otherwise required under
Section 1(i) hereof; and



(h)      Pay any taxes on behalf of the Trust Account (it being expressly understood that the Property
shall not be used to pay any such taxes and that such taxes, if any, shall be paid by the Company
from funds not held in the Trust Account).


4.        CERTAIN RIGHTS OF TRUSTEE.



(a)      Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or
opinion of counsel or both. The Trustee shall not be liable for any action it takes or omits to
take
in good faith in reliance on such Officers’ Certificate or opinion of counsel. The Trustee may
consult with counsel and the advice of such counsel or any opinion of counsel shall be full and
complete authorization and protection from liability in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon.



(b)      The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care.



(c)      The Trustee shall not be liable for any action it takes or omits to take in good faith that it
believes to be authorized or within the rights or powers conferred upon it by this Agreement.



(d)      The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Agreement; it shall not be accountable for the Company’s use of the proceeds
from the Trust Account. Notwithstanding the effective date of this Agreement or anything to the
contrary contained in this Agreement, the Trustee shall have no liability or responsibility for
any
act or event relating to this Agreement or the transactions related thereto which occurs prior to
the date of this Agreement, and shall have no contractual obligations to the Beneficiaries until
the date of this Agreement.




5.        TERMINATION. This Agreement shall terminate as follows:



(a)      If the Trustee gives written notice to the Company that it desires to resign under this
Agreement, the Company shall use its reasonable efforts to locate a successor trustee. At such time
that the Company notifies the Trustee that a successor trustee has been appointed by the Company
and has agreed to become subject to the terms of this Agreement, the Trustee shall transfer the
management of the Trust Account to the successor trustee, including but not limited to the transfer
of copies of the reports and statements relating to the Trust Account, whereupon this Agreement
shall terminate; provided, however, that, in the event that the Company does not locate a successor
trustee within ninety days of receipt of the resignation notice from the Trustee, the Trustee may
submit an application to have the Property deposited with the United States District Court for the
Southern District of New York and upon such deposit, the Trustee shall be immune from any liability
whatsoever;



(b)      At such time that the Trustee has completed the liquidation of the Trust Account in accordance
with the provisions of Section 1(i) hereof, and distributed the Property in accordance with the
provisions of the Termination Letter, this Agreement shall terminate except with respect to
Section 2(b) hereof; or



(c)      On such date after                     , 2007 when the Trustee deposits the Property with the United
States District Court for the Southern District of New York in the event that, prior to such date,
the Trustee has not received a Termination Letter from the Company
pursuant to Sections 1(i) or (j) hereof.



6.        MISCELLANEOUS.



(a)      The Company and the Trustee each acknowledge that the Trustee will follow the security
procedures set forth below with respect to funds transferred from the Trust Account. Upon receipt
of written instructions, the Trustee will confirm such instructions with an Authorized Individual
at an Authorized Telephone Number listed on the attached Exhibit C. The Company and the Trustee
will each restrict access to confidential information relating to such security procedures to
authorized persons. Each party must notify the other party immediately if it has reason to believe
unauthorized persons may have obtained access to such information, or of any change in its
authorized personnel. In executing funds transfers, the Trustee will rely upon account numbers or
other identifying numbers of a beneficiary, beneficiary’s bank or intermediary bank, rather than
names. The Trustee shall not be liable for any loss, liability or expense resulting from any error
in an account number or other identifying number, provided it has accurately transmitted the
numbers provided.




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(b)      This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of New York, without giving effect to conflict of laws. It may be executed in several
counterparts, each one of which shall constitute an original, and together shall constitute but one
instrument.



(c)      This Agreement contains the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof. This Agreement or any provision hereof may only be changed,
amended or modified by a writing signed by each of the parties hereto; provided, however, that no
such change, amendment or modification may be made without the prior written consent of FBW. As to
any claim, cross-claim or counterclaim in any way relating to this Agreement, each party waives the
right to trial by jury.



(d)      The parties hereto consent to the jurisdiction and venue of any state or federal court located
in the State of New York for purposes of resolving any disputes hereunder.



(e)      Any notice, consent or request to be given in connection with any of the terms or provisions of
this Agreement shall be in writing and shall be sent by express mail or similar private courier
service, by certified mail (return receipt requested), by hand delivery or by facsimile
transmission:




if to the Trustee, to:




Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven G. Nelson Fax No.: (212) 509-5150



if to the Company, to:




India Globalization Capital, Inc.

4336 Montgomery Avenue

Bethesda, Maryland 20814

Attn: Ram Mukunda, Chairman Fax No.: (240) 465-0273


in either case with a copy to:




Ferris, Baker Watts,
Incorporated

100 Light Street

Baltimore, MD 21202

Attn: Scott T. Bass, Vice President Fax No.: (410) 659-4632


(f)      This Agreement may not be assigned by the Trustee without the prior consent of the Company.



(g)      Each of the Trustee and the Company hereby represents that it has the full right and power and
has been duly authorized to enter into this Agreement and to perform its respective




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obligations as contemplated hereunder. The Trustee acknowledges and agrees that it shall not make any claims or
proceed against the Trust Account, including by way of set-off, and shall not be entitled to any
funds in the Trust Account under any circumstance.




[REMAINDER OF PAGE DELIBERATELY LEFT BLANK]




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IN WITNESS WHEREOF, the parties have duly executed this Investment Management Trust Agreement as of
the date first written above.




CONTINENTAL STOCK TRANSFER & TRUST

COMPANY, as Trustee




By:



Name:



Title:



INDIA GLOBALIZATION CAPITAL, INC.




By:




Name:                                                       

Chairman and Chief Executive Officer



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EXHIBIT A




[LETTERHEAD OF COMPANY]




[INSERT DATE]




Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven Nelson



Re: TRUST ACCOUNT NO. _____________ TERMINATION LETTER



Gentlemen:



Pursuant to Section 1(i) of the Investment Management Trust Agreement between India Globalization
Capital, Inc. (“Company”) and Continental Stock Transfer & Trust Company (“Trustee”), dated as of
                    , 2005 (“Trust Agreement”), this is to advise you that the Company has entered into an
agreement (“Business Agreement”) with                                          (“Target Business”) to consummate a
business combination with Target Business (“Business Combination”) on or about [INSERT DATE]. The
Company shall notify you at least 48 hours in advance of the actual date of the consummation of the
Business Combination (“Consummation Date”) and shall
provide you with an Officers’ Certificate in accordance with Sections
1(i) and 2(d) of the Trust Agreement.



In accordance with the terms of the Trust Agreement, we hereby authorize you to commence
liquidation of the Trust Account to the effect that, on the Consummation Date, all of funds held in
the Trust Account will be immediately available for transfer to the account or accounts that the
Company and FBW shall direct in writing on the Consummation Date.



On the Consummation Date (i) counsel for the Company shall deliver to you written notification that
(a) the Business Combination has been consummated, and (b) the provisions of Section 11-51-302(6)
and Rule 51-3.4 of the CRS have been met, to the extent
applicable; (ii) the Company shall
deliver along with the oath and report of inspector of election certified by an independent inspector
which may be the Trustee or as otherwise appointed by FBW (collectively, the
“Report”); and (iii) the Company shall deliver to you written instructions with respect to the transfer of the funds held in the Trust
Account (“Instruction Letter”) along with satisfactory evidence of delivery of the stock certificates from the Public
Stockholders who elect to exercise their conversion rights through the Depository Trust Company, its Deposit Withdraw Agent Commission
(DWAC) system or as otherwise presented to you (the “Stock Certificates”). You are hereby directed and authorized to transfer the funds held
in the Trust Account immediately upon your receipt of the
counsel’s letter, the Report, evidence of delivery of the Stock
Certificates, the Officers’ Certificate and the Instruction
Letter (the “Deliverables”) in accordance with the terms of
the Instruction Letter. Notwithstanding the foregoing, upon verification of receipt by you of the Deliverables,
we hereby agree and acknowledge that the Property (as defined in the Trust Agreement) in
the Trust Account shall be distributed as follows: (1) first, to FBW by wire transfer
(or as otherwise directed by FBW) in immediately available funds, the aggregate amount
of $2,100,000 (or $2,415,000 as applicable) plus any interest accrued thereon; and (2) thereafter, to any other
Beneficiary (as defined in the Trust Agreement) in accordance with the terms of the
Instruction Letter. In the event that certain deposits
held in the Trust Account may not be liquidated by the Consummation Date without penalty, you will
notify the Company and FBW of the same and the Company and, if the
amount set forth in clause (1) shall not have been paid in full, FBW, shall
issue joint written instructions directing you as to whether such funds should
remain in the Trust Account and distributed after the Consummation
Date to the Company and/or FBW. Upon the
distribution of all the funds in the Trust Account pursuant to the terms hereof, the Trust
Agreement shall be terminated.




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In the event that the Business Combination is not consummated on the Consummation Date described in
the notice thereof and we have not notified you on or before the original Consummation Date of a
new Consummation Date, then the funds held in the Trust Account shall be reinvested as provided in
the Trust Agreement on the business day immediately following the Consummation Date as set forth in
the notice.



Very truly yours,




INDIA GLOBALIZATION CAPITAL, INC.



	 	 	 	 	 
	By: 	  	 	 	 
	 	 	Chief Executive Officer 	 
	 	  	 	 	 
	 	 	 	 
	By: 	  	 	 	 
	 	 	Chief Financial Officer 	 







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EXHIBIT B






	 	 	 	 	 	 
	 	 	 	 	 	 
	 	AUTHORIZED INDIVIDUAL(S)

FOR TELEPHONE CALL BACK

	 	 	AUTHORIZED

TELEPHONE NUMBER(S)	 
	 	 
	 	 	 	 
	 	COMPANY:
	 	 	 	 
	 	 
	 	 	 	 
	 	India Globalization Capital, Inc.
	 	 	 	 
	 	4336 Montgomery Avenue
	 	 	 	 
	 	Bethesda, Maryland 20814
	 	 	 	 
	 	Attn: Ram Mukunda, Chairman
	 	 	 	 
	 	 

	 	 	(301) 983-0998	 
	 	 
	 	 	 	 
	 	FBW:
	 	 	 	 
	 	 
	 	 	 	 
	 	Ferris Baker Watts, Incorporated
	 	 	 	 
	 	100 Light Street
	 	 	 	 
	 	Baltimore,
Maryland 21202
	 	 	 	 
	 	Attn.: Scott Bass, Vice-President
	 	 	(410) 659-2565	 
	 	 

	 	 	 	 
	 	 
	 	 	 	 
	 	TRUSTEE:
	 	 	 	 
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	Continental Stock Transfer
	 	 	 	 
	 	& Trust Company
	 	 	 	 
	 	17 Battery Place
	 	 	 	 
	 	New York, NY 10004
	 	 	 	 
	 	Attn: Steven Nelson
	 	 	 	 
	 	

	 	 	(212) 845-3200	 
	 	 	 	 	 	 





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