Document:

Exhibit 10.1

 

INVESTMENT MANAGEMENT TRUST AGREEMENT

 

This Agreement is made as of
                              ,
2008 by and between K Road Acquisition Corporation (the “Company”),
whose principal office is located at 333 Madison Avenue, 25th Floor, New York,
New York 10017, and Continental Stock Transfer & Trust Company (“Trustee”), located at 17 Battery Place, New York, New York
10004.

 

WHEREAS, the Company’s
Registration Statement on Form S-1, File No. 333-                          
(“Registration Statement”), for its
initial public offering of securities (“IPO”) has been
declared effective on
                        ,
2008 by the Securities and Exchange Commission (“Effective
Date”); and

 

WHEREAS, the Company has
completed a private placement of 7,750,000 Warrants (the “Insider
Warrants”) on or prior to the effective date of the Registration
Statement for a purchase price of $7,750,000; and

 

WHEREAS, Credit Suisse
Securities (USA)  LLC (the “Underwriter”)
is acting as the underwriter in the IPO; and

 

WHEREAS, as described in the
Registration Statement, in accordance with the Company’s Amended and Restated
Certificate of Incorporation, $298,500,000 of the net proceeds of the IPO and
the sale of the Insider Warrants ($342,262,500  if
the over-allotment option (the “Over-allotment Option”)
granted to the Underwriter is exercised in full), will be delivered to the
Trustee as of
                    ,
2008 to be deposited and held in a trust account for the benefit of the
Company, the holders of the common stock, par value $.0001 per share, of the
Company (“Common Stock”), included in the units
of the Company’s securities issued in the IPO (the “Units”),
and the Underwriter.  The amount to be
delivered to the Trustee will be referred to herein as the “Property” or the “Base Deposit”,
the stockholders for whose benefit the Trustee shall hold the Property will be
referred to as the “Public Stockholders,”
and the Public Stockholders, the Company and the Underwriter will be referred
to together as the “Beneficiaries”;
and

 

WHEREAS, a portion of the
Property consists of $12,750,000 (or $14,662,500 if the Underwriter’s
Over-allotment Option is exercised in full) plus interest earned on such amount
in the Trust Account, net of taxes payable, attributable to the Underwriter’s
discount (the “Deferred Discount”) which the
Underwriter has agreed to deposit in the Trust Account (as 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.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements herein
contained, the parties hereto agree as follows:

 

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 in a segregated trust account (the “Trust
Account”) established by the Trustee with [        ] and at a brokerage institution
selected by the Trustee.  Such selection
shall be based upon consultation with the Company and if such selection is
rejected by the Company than the Trustee shall select a different brokerage
institution;

 

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

 

1

 

(c)                                  In a timely
manner, upon the written instruction of the Company, invest and reinvest the
Property in any United States “government security” within the meaning of Section 2(a)(16)
of the Investment Company Act of 1940 (the “1940 Act”), having a maturity of
one hundred eighty (180) days or less or in money market funds selected by the
Company meeting the conditions of Rule 2a-7 promulgated under the 1940 Act;

 

(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)                                  Promptly notify
the Company and the Underwriter 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 or the Company;

 

(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 Company and/or the
Underwriter to do so;

 

(h)                                 Render to the
Company and to the Underwriter, and to such other persons 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)                                     If there is any
income tax obligation relating to the income from the Property in the Trust
Account or if there is any franchise or other tax obligation to which the
Company is subject, then, from time to time, at the written instruction of the
Company, the Trustee shall promptly to the extent there is not sufficient cash in
the Trust Account to pay such tax obligation, liquidate such assets held in the
Trust Account as shall be designated by the Company in writing; and

 

(j)                                     In the event of
the dissolution and liquidation of the Company in accordance with its Amended
and Restated Certificate of Incorporation, commence liquidation of the Trust
Account only upon receipt of and only in accordance with the terms of a letter
(the “Termination Letter”), in a form
substantially as set forth as Exhibit A or Exhibit B
hereto, signed on behalf of the Company by its Chief Executive Officer, and
complete the liquidation of the Trust Account and distribute the Property in
the Trust Account only as directed in the Termination Letter and the other
documents referred to therein as part of the Company’s plan of dissolution and
liquidation.  The Trustee understands and
agrees that, except as provided in this Section 1(j) and Section 2
hereof, 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 stock vote in favor of the
Business Combination.  As used in this
Agreement, the term “Business Combination”
means the merger, capital stock exchange, asset acquisition, stock purchase,
reorganization, exchangeable share transaction, joint venture or other similar
business combination having a fair market value of at least 80% of the net assets
of the Trust Account (net of taxes and exclusive of any amounts subject to
conversion (as described in the Registration Statement) amounts permitted to be
disbursed for working capital purposes and the Deferred Discount) at the time
of the signing of a definitive agreement in connection with the Business
Combination and resulting in ownership by the Company of at least a controlling
interest of any such target business.  As
used herein, a “controlling interest” shall be ownership of at least 50%
of the voting equity in a target business, or such lesser percentage of the
voting equity of the target business that provides Company with the
power to vote on or direct the affairs of the target business.

 

2

 

(k)                                  The Trustee,
upon consultation with and receipt of written instruction from the Company and
the Underwriter, shall deliver a notice to Public Stockholders of record as of
the Termination Date, by U.S. mail or via the Depository Trust Company (“DTC”), within five days of the Termination Date, to notify
the Public Stockholders of such event and take such other actions as the
Company and the Underwriter may direct to inform the Beneficiaries.  Thereafter, 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.

 

2.   Limited Distributions of Interest Income
on Property.

 

(a)                                  If there is any
income tax obligation relating to the income from the Property in the Trust
Account, or if there is any franchise or other tax obligation to which the
Company is subject, then, at the written instruction of the Company, the
Trustee shall disburse to the Company or the Internal Revenue Service or other
appropriate state or taxing authority by wire transfer or check (as directed by
the Company in its instruction letter), out of the Property in the Trust
Account, the amount indicated by the Company as required to pay income,
franchise or other taxes.

 

(b)                                 In addition to
any distribution pursuant to Section 2(a) above, upon written request
from the Company containing certification that such distribution pursuant to
this Section 2(b) shall only be used to fund the working capital
requirements of the Company, the Trustee shall distribute to the Company an
amount up to $3,500,000 of the interest earned and collected on the Property in
the Trust Account through the last day of the month immediately preceding the
date of receipt of the Company’s written request.

 

(c)                                  In addition to
any distribution pursuant to Sections 2(a) and 2(b) above, upon
written request from the Company as provided in Section 3(a), the Trustee
shall distribute to the Converting Stockholders (as defined below) a pro rata
portion of the interest earned and collected on the Property on the shares of
Common Stock sold as part of the Units in the IPO (the “IPO Shares”),
converted by the Converting Stockholders.

 

(d)                                 It is
acknowledged and agreed by the parties hereto that with respect to all requests
for distributions to or on behalf of the Company pursuant to this Section 2,
the Trustee’s only responsibility is to follow the instruction of the Company.

 

3.   Limited Distributions of Property.

 

(a)                                  In the event
the Company seeks approval of an Extension Amendment, , as set forth in the
Company’s Amended and Restated Certificate of Incorporation, and such Extension
Amendment is approved by the Company’s stockholders as provided in the Company’s
Amended and Restated Certificate of Incorporation, the Trustee shall, upon and
in accordance with the written instruction of the Company, disburse to the
Public Stockholders who voted against the Extension Amendment (the “Converting Stockholders”) and gave notice of exercise of
their conversion rights, by wire transfer or check (as directed by the Company
in its instruction letter) and out of the Property, the amount indicated by the
Company as required to pay the Public Stockholders electing to exercise their
conversion rights in connection with the stockholder vote on the Extension
Amendment.

 

(b)                                 Except as
provided in Sections 1(i), 1(j), 1(k), Section 2 or Section 3(a), no
other distributions from the Trust Account shall be permitted.

 

3

 

(c)                                  It is
acknowledged and agreed by the parties hereto that with respect to all requests
for distributions to or on behalf of the Company pursuant to this Section 3,
the Trustee’s only responsibility is to follow the instruction of the Company.

 

4.   Agreements and Covenants of the Company.  The Company hereby agrees and covenants:

 

(a)                                  To provide all
instructions to the Trustee hereunder in writing, signed by the Company’s Chief
Executive Officer.  In addition, except
with respect to its duties under Sections 1(i), 1(j), 1(k), 2 and 3(a), 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 the Underwriter shall promptly
confirm such instructions in writing;

 

(b)                                 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, willful misconduct or bad faith.  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 shall not be unreasonably
withheld.  The Trustee may not agree
to settle any Indemnified Claim without the prior written consent of the
Company, which consent shall not be unreasonably withheld.  The Company may participate in such
action with its own counsel at its own expense;

 

(c)                                  Pay the Trustee
an initial acceptance fee, an annual fee and a transaction processing fee for
each disbursement made pursuant to this Agreement as set forth on Schedule A
hereto, which fees shall be subject to modification by the parties from time to
time.  It is expressly understood that
the Property shall not be used to pay such fees and further agreed that said
transaction processing fees shall be deducted by the Trustee from the
disbursements made to the Company pursuant to Section 2(b) hereof.  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
annual fee (on a pro rata basis) with respect to any period after the
liquidation of the Trust Account.  The
Company shall not be responsible for any other fees or charges of the Trustee
except as set forth in this Section 4(c) and as may be provided in Section 4(b) hereof
(it being expressly understood that the Property shall not be used to make any
payments to the Trustee under such Sections);

 

(d)                                 That, in the
event the Company consummates a Business Combination and/or the Company seeks
approval of an Extension Amendment, and such Extension Amendment is approved by
the Company’s stockholders as provided in the Company’s Amended and Restated
Certificate of Incorporation, an independent party designated by the Company
shall act as the inspector of election to certify the results of the
stockholder vote;

 

(e)                                  That the
Termination Letter referenced in Section 1(j) hereof shall require
the Company’s Chief Executive Officer to certify the following (wherever
applicable): either that (A) prior to the applicable termination date set
forth in the Company’s Amended and Restated Certificate of Incorporation (the “Termination Date”), the Company has consummated a Business
Combination with a 

 

4

 

target business, the terms of which are consistent with the
requirements set forth in the Registration Statement or (B) the Company
failed to consummate a Business Combination prior to the Termination Date and
that the Company shall be dissolved and liquidated in accordance with the
Company’s Amended and Restated Certificate of Incorporation;

 

(f)                                    In connection
with any vote of the Company’s stockholders regarding a Business Combination or
Extension Amendment, provide to the Trustee an affidavit or certificate of a
firm regularly engaged in the business of soliciting proxies and tabulating
stockholder votes verifying the vote of the Company’s stockholders regarding
such Business Combination or Extension Amendment.

 

5.   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 Sections 1, 2 and 3
hereof and the Trustee shall have no liability to any party except for
liability arising out of its own gross negligence, willful misconduct or bad
faith;

 

(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);

 

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

 

(e)                                  Assume that the
authority of any person designated by the Company and/or the Underwriter to
give written instructions hereunder shall not be continuing unless provided
otherwise in such designation, or unless the Company and/or the Underwriter
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, willful misconduct
or bad faith.  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 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;

 

(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(j) hereof;

 

5

 

(h)                                 Prepare,
execute and file tax reports, income or other tax returns, pay any taxes on
behalf of the Company or the Trust Account and pay any taxes with respect to
income and activities relating to the Trust Account, regardless of whether such
tax is payable by the Trust Account or the Company (including but not limited
to income tax obligations), it being expressly understood that the Trustee’s
sole obligation with respect to taxes shall be to issue the checks with respect
thereto provided for by Section 2(a) hereof.  If there is any income or other tax
obligation relating to the Company, Trust Account or the Property in the Trust
Account, as determined from time to time by the Company and regardless of  whether such tax is payable by the Company or
the Trust, at the written instruction of the Company, the Trustee shall make
funds available in cash from the Property in the Trust Account an amount
specified by the Company as owing to the applicable taxing authority, which
amount shall be paid directly to the Company by electronic funds transfer,
account debit or other method of payment, and the Company shall forward such
payment to the taxing authority; and

 

(i)                                     Verify
calculations, qualify or otherwise approve Company requests for distributions
pursuant to Section 1(i), 2, or 3(a) above.

 

6.   No Right of Set-Off.  The Trustee waives any right of set-off or
any right, title, interest or claim of any kind that the Trustee may have
against the Property held in the Trust Account. 
In the event the Trustee has a claim against the Company under this
Agreement, including, without limitation, under Section 4(b), the Trustee
will pursue such claim solely against the Company and not against the Property
held in the Trust Account.

 

7.   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 during which time the Trustee shall continue to act in accordance with
the terms of this Agreement.  At such
time 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 the Company
does not locate a successor trustee within ninety days of receipt of the
resignation notice from the Trustee, the Trustee may, but shall not be
obligated to, 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 that
arises due to any actions or omissions to act by any party after such deposit;
or

 

(b)                                 At such time
that the Trustee has completed the liquidation of the Trust Account in
accordance with the provisions of Section 1(j) hereof, and
distributed the Property in accordance with the provisions of the Termination
Letter, this Agreement shall terminate except with respect to Section 4(b).

 

8.   Miscellaneous.

 

(a)                                  The Company and
the Trustee each acknowledge and agree 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 

 

6

 

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.

 

(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 principles
that would result in the application of the substantive laws of another
jurisdiction.  It may be executed in
several counterparts, each one of which shall constitute an original, and
together shall constitute but one instrument. 
Facsimile signatures shall constitute original signatures for all
purposes of this Agreement.

 

(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 the Underwriter, who the parties specifically agree, is
and shall be a third party beneficiary for purposes of this Agreement;
provided, further, that any amendment to Section 1(j) shall require
the vote or consent of holders of 95% of the outstanding IPO Shares, it being
the specific intention of the parties hereto that each holder of IPO Shares is
and shall be a third-party beneficiary of this Section 8(c) with the
same right and power to enforce this Section 8(c) as either of the
parties hereto.  For purposes of this Section 8(c),
the “consent of 95% of the outstanding IPO Shares” shall mean receipt by the
Trustee of a certificate from an entity certifying that (i) such entity
regularly engages in the business of serving as inspector of elections for
companies whose securities are publicly traded and (ii) either (a) 95%
of the holders of the outstanding IPO Shares as of the record date established
in accordance with Section 213(a) of the Delaware General Corporation
Law, as amended (the “DGCL”), have
voted in favor of such amendment or modification or (b) 95% of the holders
of the outstanding IPO Shares of record as of the record date established in
accordance with Section 213(b) of the DGCL has delivered to such
entity a signed writing approving such amendment or modification.  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 and County of New York for purposes of resolving any
disputes hereunder.  The parties hereto
irrevocably submit to such jurisdiction, which jurisdiction shall be exclusive,
and hereby waive any objection to such exclusive jurisdiction and accept such
venue, and waive any objection that such courts represent an inconvenient
forum.

 

(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:  [Frank DiPaolo]

Fax No.: (212) 509-5150

 

if to the Company, to:

 

K Road Acquisition Corporation

 

7

 

330
Madison Avenue, 25th Floor

New
York, New York 10017

Attn:  William V. Kriegel

Fax No.:  (212) 351-0530

 

in either case with a copy
to:

 

Credit Suisse Securities
(USA) LLC

Eleven Madison Avenue

New York, New York
10010-3629

Attn:  LCD-IBD

 

and

 

Ellenoff Grossman &
Schole LLP

150 East 42nd Street

New York, New York 10017-6503

Attn: Douglas S. Ellenoff, Esq.

Fax No.:  (212) 370-7889

 

a

and

 

Skadden, Arps, Slate,
Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, California 90071

Attn:  Gregg A. Noel, Esq.

Fax No.:  (213) 687-5600

 

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

 

(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 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.  The Trustee
hereby consents to the inclusion of Continental Stock Transfer & Trust
Company in the Registration Statement and other materials relating to the IPO.

 

8

 

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

 

 

K ROAD ACQUISITION
CORPORATION

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  William V. Kriegel

  
	
   

  	
  Chairman, Chief Executive
  Officer and President

  

 

9

 

EXHIBIT A

 

[Letterhead of Company]

 

[Insert
date]

 

Continental Stock Transfer & Trust
Company

17 Battery Place

New York, NY 10004

 

Attn: [                                     ]

 

	
   Re:

  	
   

  	
  Trust Account No. [ ]
  Termination Letter

  

 

Gentlemen:

 

Pursuant to Section 1(j) of
the Investment Management Trust Agreement between K Road Acquisition
Corporation (“Company”) and Continental Stock Transfer & Trust Company
(“Trustee”), dated as of
                  ,
2008 (“Trust Agreement”), this is to advise you that the Company has entered
into a definitive agreement with
                                    
for the consummation of a Business Combination on or about
[              ].  All capitalized terms not defined herein are
as defined in the Trust Agreement.  The
Company shall notify you at least 48 hours in advance of the actual date of the
consummation of the Business Combination (“Consummation Date”).  Capitalized words used herein and not
otherwise defined shall have the meanings ascribed to them in the Trust
Agreement.

 

In accordance with paragraph
B of Article Sixth of the Amended and Restated Certificate of
Incorporation of the Company, the Business Combination has been approved by the
stockholders of the Company and by the holders of the IPO Shares, and Public
Stockholders holding less than 40% of the IPO Shares have voted against the
Business Combination and given notice of exercise of their conversion rights,
on a cumulative basis with holders of IPO shares exercising conversion rights
in connection with an Extension Amendment, as described in paragraph C of Article Sixth
of the Amended and Restated Certificate of Incorporation of the Company.  Pursuant to Section 4(f) of the
Trust Agreement, we are providing you with an affidavit or a certificate of
                    ,
which verifies the vote of the Company’s stockholders in connection with the
Business Combination.  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 the Underwriter shall
direct in writing on the Consummation Date, which accounts may include the
accounts of holders of IPO Shares exercising their conversion rights or the
accounts of holders of IPO Shares whose securities have been purchased by the
Company.

 

On
the Consummation Date (i) counsel for the Company shall deliver to you
written notification that the Business Combination has been consummated or
will, concurrently with your transfer of funds to the accounts as directed by
the Company, be consummated; (ii) the Company shall deliver to you the
oath and report of inspector of election certified by an independent inspector
which may be the Trustee or as otherwise appointed by the Underwriter
(collectively, the “Report”); and (iii) the
Company and the Underwriter shall deliver to you joint written instructions
with respect to the transfer of the funds, including the Deferred Discount,
held in the Trust Account (“Instruction Letter”).  You are hereby directed and authorized to
transfer the funds held in the Trust Account immediately upon your receipt of
the counsel’s letter and the Instruction Letter in accordance with the terms of
the Instruction Letter.  In the 

 

10

 

event  certain deposits held in the
Trust Account may not be liquidated by the Consummation Date without penalty,
you will notify the Company and the Underwriter of the same and the Company
shall direct you as to whether such funds should remain in the Trust Account
and be distributed after the Consummation Date to the Company and/or the
Underwriter or be distributed immediately and the penalty incurred.  Upon the distribution of all the funds in the
Trust Account pursuant to the terms hereof, the Trust Agreement shall be
terminated.

 

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 upon receipt by the Trustee
of written instructions, 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,

  
	
   

  	
   

  
	
   

  	
  K ROAD ACQUISITION
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William V. Kriegel

  Chairman, Chief Executive Officer and

  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  cc: Credit
  Suisse Securities (USA) LLC  

  	
   

  

 

11

 

EXHIBIT B

 

[Letterhead of Company]

 

[Insert
date]

 

Continental Stock Transfer & Trust
Company

17 Battery Place

New York, NY 10004

Attn:

 

	
   Re:

  	
   

  	
  Trust Account No. [ ]
  Termination Letter

  

 

Gentlemen:

 

Pursuant to paragraph 1(j) of
the Investment Management Trust Agreement between K Road Acquisition
Corporation (“Company”) and Continental Stock Transfer & Trust Company
(“Trustee”), dated as of
                      ,
2008 (“Trust Agreement”), this is to advise you that the Company has been
unable to effect a Business Combination (as defined in the Trust Agreement)
within the time frame specified in the Amended and Restated Certificate of
Incorporation of the Company.  All
capitalized terms not defined herein are as defined in the Trust Agreement.

 

In accordance with the terms
of the Trust Agreement, we hereby authorize you, to commence liquidation of the
Trust Account as promptly as practicable to stockholders of record on the
Termination Date.  You will notify the
Company in writing as to when all of the funds in the Trust Account will be
available for immediate transfer (“Transfer Date”) in accordance with the terms
of the Trust Agreement and the Amended and Restated Certificate of
Incorporation.  You shall commence
distribution of such funds in accordance with the terms of the Trust Agreement
and you shall oversee the distribution of the funds.  Upon the distribution of all the funds in the
Trust Account, your obligations under the Trust Agreement shall be terminated.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  K ROAD ACQUISITION
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William V. Kriegel

  Chairman, Chief Executive Officer and President

  

 

12

 

EXHIBIT
C

 

	
  AUTHORIZED INDIVIDUAL(S)

  FOR TELEPHONE CALL BACK

  	
   

  	
  AUTHORIZED

  TELEPHONE

  NUMBER(S)

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  K Road Acquisition
  Corporation

  330 Madison Avenue, 25th Floor

  New York, New York 10017

  Attn: William V. Kriegel

  Fax No.: (  )

  	
   

  	
  (  ) -

  
	
   

  	
   

  	
   

  
	
  Underwriter:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Credit Suisse
  Securities (USA) LLC

  11 Madison Avenue

  New York, New York 10010

  Attn: Steve Doll

  Fax No.: (  )

  	
   

  	
  (  ) -

  
	
   

  	
   

  	
   

  
	
  Trustee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Continental Stock
  Transfer & Trust Company

  17 Battery Place

  New York, New York 10004

  Attn: Compliance Department

  	
   

  	
  (  ) -

  

 

13

 

SCHEDULE A

 

Schedule of fees pursuant to
Section 3(c) of Investment Management Trust Agreement

between K Road Acquisition Corporation and

Continental Stock Transfer &
Trust Company

 

	
  Fee Item

  	
   

  	
  Time and method of payment

  	
   

  	
  Amount

  
	
  Initial
  acceptance fee

  	
   

  	
  Initial
  closing of IPO by wire transfer

  	
   

  	
  [$1
      ]

  
	
  Annual
  fee

  	
   

  	
  First
  year, initial closing of IPO by wire transfer; thereafter on the anniversary
  of the effective date of the IPO by wire transfer or check

  	
   

  	
  [$1
      ]

  
	
  Transaction
  processing fee for disbursements to Company under Sections 2(a) and 2(b)

  	
   

  	
  Deduction
  by Trustee from disbursement made to Company under Section 2(b)

  	
   

  	
  [$1
      ]

  

 

 

	
  Dated:

  	
   

  
	
   

  	
  K
  ROAD ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William V. Kriegel

  
	
   

  	
   

  	
  Chairman,
  Chief Executive Officer

  
	
   

  	
   

  	
  and President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL
  STOCK TRANSFER &

  TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit 10.2

 

SECURITIES ESCROW AGREEMENT

 

THIS
SECURITIES ESCROW AGREEMENT, dated as of                    ,
2008 (the “Agreement”), by and
among K Road Acquisition Corporation, a Delaware corporation (the “Company”), K Road Acquisition Holdings LLC
(the “Sponsor”) and Continental
Stock Transfer & Trust Company, a New York corporation (the “Escrow Agent”).

 

WHEREAS,
the Company has entered into an Underwriting Agreement, dated          ,
2008 (“Underwriting Agreement”),
with Credit Suisse Securities (USA) LLC (the “Underwriter”),
as the underwriter, pursuant to which, among other matters, the Underwriter has
agreed to purchase up to 30,000,000 units (the “Units”) (not including the over-allotment option (the “Underwriter’s Over-allotment Option”) granted to the
Underwriter), of the Company’s Units. 
Each Unit consists of one share of the Company’s common stock, par value
$0.0001 per share (the “Common Stock”),
and one warrant to purchase one share of Common Stock (the “Warrants”), all as more fully described in the Company’s
Registration Statement on Form S-1 (File No. 333-149021) under the
Securities Act of 1933, as amended (the “Registration
Statement”), declared effective on                       ,
2008 (the “Effective Date”);

 

WHEREAS,
the Sponsor has agreed as a condition of the Underwriter’s obligation pursuant
to the Underwriting Agreement to deposit all of its shares of Common Stock of
the Company, as set forth opposite its name in Exhibit A hereto (the “Escrow Shares”), in escrow as hereinafter provided;

 

WHEREAS,
the Company entered into a Warrant Subscription Agreement with the Sponsor,
dated                    ,
2008 (the “Subscription Agreement”), pursuant
to which the Sponsor has agreed to purchase 7,750,000 warrants (the “Insider Warrants”) in a private placement transaction;

 

WHEREAS,
the Sponsor has agreed to deposit the Insider Warrants (collectively with the
Escrow Shares, the “Escrow Securities”),
with the Escrow Agent, as hereinafter provided; and

 

WHEREAS,
the Company and the Sponsor desire that the Escrow Agent accept the Escrow
Securities, in escrow, to be held and disbursed as hereinafter provided.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants,
representations and warranties contained herein and intending to be legally
bound hereby, the parties hereto agree as follows:

 

1.                                       Appointment of
Escrow Agent.  The Company
and the Sponsor 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 Securities.  On or
before the Effective Date, the Sponsor shall deliver to the Escrow Agent
certificates representing the Escrow Securities, to be held and disbursed
subject to the terms and conditions of this Agreement.  The Sponsor acknowledges and agrees that the
certificates representing the Escrow Securities are legended to reflect the
deposit of such Escrow Securities under this Agreement.

 

3.                                       Disbursement of
the Escrow Securities.  The
Escrow Agent shall hold the Escrow Securities until the termination of their
respective Escrow Period (as defined below). 
In the case of the Insider Warrants, the “Escrow
Period” shall be the period beginning on the Effective Date and
ending one day following the consummation of the Business Combination as
defined in the Amended and Restated Certificate of Incorporation of the
Corporation (“Business Combination”).  In the case of the 

 

 

Escrow Shares, the Escrow Period shall be the
period beginning on the Effective Date and ending on the date that is one year
following consummation of a Business Combination.  On the termination date of the applicable
Escrow Period, the Escrow Agent shall, upon written instructions from the
Sponsor, disburse the Escrow Securities to the Sponsor; 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 Securities; 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 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 notice executed by the
Chief Executive Officer or Chief Financial Officer of the Company, in form
reasonably acceptable to the Escrow Agent, certifying that such transaction is
being consummated, release the Escrow Shares to the Sponsor so that it can
similarly participate.  The Escrow Agent
shall have no further duties hereunder after the disbursement or destruction of
the Escrow Securities in accordance with this Section 3.

 

4.                                       Rights of
Sponsor in Escrow Securities.

 

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 Sponsor shall retain all of its rights as a
stockholder of the Company during the Escrow Period, including, without
limitation, the right to vote the Escrow Shares.

 

4.2                                 Dividends and
Other Distributions in Respect of the Escrow Securities.  During the Escrow Period, all dividends
payable in cash with respect to the Escrow Securities shall be paid to the
Sponsor, but all dividends payable in stock or other non-cash property (the “Non-Cash Dividends”) shall be delivered to
the Escrow Agent to hold in accordance with the terms hereof.  As used herein, the term “Escrow Securities”
shall be deemed to include the Non-Cash Dividends distributed thereon, if any.

 

4.3                                 Restrictions on
Transfer.  During the
applicable Escrow Period, no sale, transfer or other disposition may be made of
any or all of the Escrow Securities except for transfers (i) to officers
or directors of the Company, (ii) to employees of the Sponsor or its
affiliates (collectively with (i) (“K Road personnel”),
(iii) to funds managed by the Sponsor or its affiliates or (iv) by
any K Road personnel (a) by gift to a member of the immediate family of such K Road
personnel or to a trust or other entity, the beneficiary of which is such K Road
personnel or an immediate family member of such K Road personnel, (b) by
virtue of the laws of descent and distribution upon the death of any such K
Road personnel, (c) pursuant to a qualified domestic relations order, or (d) to
any person or entity controlling, controlled by, or under common control with,
the Sponsor or any K Road personnel (each person in clauses (i) — (iv) a
“permitted transferee”); in each case on
the condition, that prior to such sale, transfer or other disposition, each
permitted transferee agrees in writing to be bound by the terms of this
Agreement, the Subscription Agreement and Insider Letter (as hereinafter
defined), except for the indemnification provisions contained therein.  The trustee is authorized to amend Exhibit A
to reflect any such transfer to a permitted transferee.

 

4.4                                 Insider Letter.  The Sponsor has executed a letter agreement
with the Company, in connection with Escrow Securities, and which is filed as
an exhibit to the Registration Statement (“Insider
Letter”), respecting the rights and obligations of the Sponsor in
certain events, including, but not limited to, the liquidation of the Company.

 

2

 

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 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 Securities 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 Securities or it may deposit the Escrow Securities with the clerk
of any appropriate court or it may retain the Escrow Securities 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
Securities 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, as set
forth on Exhibit B hereto. 
The Escrow Agent shall also be entitled to reimbursement from the
Company for all expenses paid or incurred by it in the administration of its duties
hereunder including, but not limited to, all legal counsel 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 Sponsor 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 and approved by the Underwriter,
which approval will not be unreasonably withheld, conditioned or delayed, the
Escrow Securities held hereunder.  If no
new escrow agent is so appointed within the sixty (60) day period following the
giving of such notice of resignation, the Escrow Agent may deposit the Escrow
Securities with any court it reasonably deems appropriate.

 

3

 

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 Company and the Sponsor, 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 (“Claim”)
in or to any distribution of the Trust Account (as defined in that certain
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.

 

5.9                                 Standard of
Care.  The Escrow Agent shall be
obligated to perform only the duties, responsibilities or obligations as Escrow
Agent expressly set forth in this Escrow Agreement, which shall be deemed
purely ministerial in nature, and the Escrow Agent shall under no circumstances
be deemed to be a fiduciary to any party hereto or any other person.

 

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.  Each of the
parties hereby agrees that any action, proceeding or claim against it arising
out of or relating in any way to this Agreement shall be brought and enforced
in the courts of the State of New York or the United States District Court for
the Southern District of New York, and irrevocably submits to such
jurisdiction, which jurisdiction shall be exclusive. Each of the parties hereby
waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum.

 

6.2.                              Third Party
Beneficiaries.  The Sponsor
hereby acknowledges that the Underwriter is a third party beneficiary of this
Agreement and this Agreement may not be modified or changed without the prior
written consent of the Underwriter, which consent shall not be unreasonably
withheld, delayed or denied.

 

6.3.                              Entire
Agreement.  This
Agreement together with the Insider Letters and the Warrant Agreement as
referenced herein contain 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 be charged and by the Underwriter.

 

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:

 

4

 

If
to the Company, to:

 

K
Road Acquisition Corporation

330
Madison Avenue, 25th Floor

New
York, NY 10017

Attn:
William V. Kriegel

Fax:
(212) 351-0530

 

If
to the Sponsor, to his or her 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:
[Frank DiPaolo]

Fax:
(212) 509-5150

 

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

 

Ellenoff
Grossman & Schole LLP

150
East 42nd Street

New
York, NY 10017

Attn:
Douglas S. Ellenoff, Esq.

Fax:
(212) 370-7889

 

and:

 

Skadden,
Arps, Slate, Meagher & Flom LLP

300
South Grand Avenue, Suite 3400

Los
Angeles, California 90071

Attn:  Gregg A. Noel, Esq.

Fax:  (213) 687-5600

 

and:

 

Credit
Suisse Securities (USA) LLC

Eleven
Madison Avenue

New
York, New York 10010-3629

Attn:  LCD-IBD

 

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
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 Amended and
Restated Certificate of Incorporation of the Company.

 

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.

 

5

 

IN
WITNESS WHEREOF, the undersigned have executed this Securities Escrow Agreement
as of the date first written above.

 

	
   

  	
  K
  ROAD ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William
  V. Kriegel

  Chairman, Chief Executive Officer and

  President

  

 

 

	
   

  	
  K
  ROAD ACQUISITION HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  William
  V. Kriegel

  Managing Member

  

 

 

	
  CONTINENTAL
  STOCK TRANSFER

  & TRUST COMPANY

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

6

 

EXHIBIT A

 

	
   

  	
   

  	
  Address

  	
   

  	
  Number of

  Escrow Shares

  	
   

  	
  Number of

  Insider Warrants

  	
   

  
	
  K Road Acquisition Holdings,
  LLC

  	
   

  	
  330
  Madison Avenue,

  New York, New York 10017

  	
   

  	
  8,625,000

  	
  (1)

  	
  7,750,000

  	
   

  

 

(1)                                  Up to 1,125,000
of which shares are subject to forfeiture if the underwriter’s over-allotment
option is not exercised in full

 

 

EXHIBIT B

 

Escrow Agent Fees

 

$                     annually
for escrow agent fee

 

First
year escrow agent fee to be paid at closing.

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