Document:

EX-10.1 Form of Letter Agreement

 

Exhibit 10.1

[Form of Letter Agreement among the Company, the Representative and

each officer, director and initial stockholder of the Company]

                    , 2007

Ideation Acquisition Corp.

100 North Crescent Drive

Beverly Hills, California 90210

Lazard Capital Markets LLC

30 Rockefeller Plaza

New York, New York 10020

    Re: Initial Public Offering

Ladies and Gentlemen:

     This letter is being delivered to you in accordance with the Underwriting Agreement (the
“Underwriting Agreement”) entered into by and between Ideation Acquisition Corp., a Delaware
corporation (the “Company”), and Lazard Capital Markets LLC (the “Representative”), as
representative of the underwriters named in Schedule I thereto (the “Underwriters”), relating to an
underwritten initial public offering (the “IPO”) of the Company’s units (the “Units”), each
consisting 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 (each a “Warrant” and collectively,
the “Warrants”). Certain capitalized terms used herein are defined in paragraph 15 hereof.

     In order to induce the Company and the Underwriters to enter into the Underwriting Agreement
and to proceed with the IPO, and in recognition of the benefit that such IPO will confer upon the
undersigned [officer][Director][initial stockholder] of the Company, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
undersigned hereby agrees with the Company as follows:

     1. If the Company seeks approval of its stockholders of an Initial Business Combination, the
undersigned will vote any initial shares owned directly or indirectly by [him][her][it] in
accordance with the majority of the shares of Common Stock voted by the Public Stockholders, other
than the initial stockholders, in connection with the vote on any Initial Business Combination.

     2. [In the event that the Company fails to consummate an Initial Business Combination within
24 months from the effective date (the “Effective Date”) of the registration statement relating to
the IPO, the undersigned will take all reasonable actions within his power to (a) cause the Trust
Account to be liquidated and distributed to the holders of IPO Shares as soon as reasonably
practicable and (b) cause the Company to liquidate as soon as reasonably practicable.]1

     3. (a) The undersigned hereby waives any and all right, title, interest or claim of any kind
in or to any distributions of the Trust Account, or to any other amounts distributed in connection
with a liquidating distribution of the Company, with respect to [his][her][its] initial shares (any
“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 Account for any reason whatsoever; provided that the foregoing shall not apply to any IPO
Shares acquired by the undersigned.

          (b) [In the event of the liquidation of the Trust Account, the undersigned agrees to indemnify
and hold harmless the Company, on a joint and several basis, against any and all losses,
liabilities, claims, damages and expenses 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, but only if, and to the extent (i) the claims reduce the amounts in the Trust Account
available for payment to holders of the IPO Shares in the event of a liquidation of the Trust
Account

 

			
	1	 	Applicable only to officers and directors.

 

 

and (ii) the claims are made by (A) a vendor for services rendered, or products sold, to the
Company, (B) by a third party with which the Company enters into a contractual relationship
following consummation of the IPO, or (C) by a prospective target business arising out of any
negotiations, contracts or agreements with the Company, provided that such indemnity shall not
apply to any amounts claimed owed to a third party who executed a valid and enforceable waiver of
any right, title, interest or claim of any kind in or to the Trust Account.]2

     4. [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, prior to
presentation to any other person or entity, any suitable opportunity to acquire an operating
business, until the earlier of the consummation by the Company of an Initial 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 pre-existing fiduciary and contractual obligations the
undersigned might have.]3

     5. The undersigned understands that, in accordance with the terms of the Company’s Amended and
Restated Certificate of Incorporation, the Company will not enter into an Initial Business
Combination with any entity that is affiliated with any of the initial stockholders, unless the
Company obtains an opinion from an independent investment banking firm that the Initial Business
Combination is fair to the Company’s stockholders from a financial perspective.

     6. (a) Neither the undersigned, nor any member of the family of the undersigned, nor any
affiliate of the undersigned, will be entitled to receive, and no such person will accept, any
compensation for any services rendered prior to or in connection with the consummation of an
Initial Business Combination, other than (i) a payment of $7,500 per month to Clarity Partners,
L.P. for office space and administrative and support services; (ii) a finder’s or success fee
payable to Ladenburg Thalmann & Co. (“Ladenburg”), to the extent the Company enters into an
agreement with Ladenburg in connection with the Company’s search for a target business; (iii)
repayment of non-interest bearing loans of $200,000 in the aggregate made to the Company by Frost
Gamma Investments Trust, Robert N. Fried, Rao Uppaluri, Steven D. Rubin and Jane Hsiao to cover
expenses relating to the IPO; and (iv) reimbursement of any out-of-pocket expenses incurred in
connection with identifying, investigating and consummating an Initial Business Combination.

          (b) Neither the undersigned, nor any member of the family of the undersigned, nor any
affiliate of the undersigned, will accept a finder’s fee, consulting fee or any other compensation
or fees from any person or other entity in connection with an Initial Business Combination, other
than (i) a finder’s or success fee payable to Ladenburg, to the extent the Company enters into an
agreement with Ladenburg in connection with the Company’s search for a target business and (ii)
compensation or fees that may be received for any services provided following such Initial Business
Combination.

     7. The undersigned will, pursuant to and subject to the terms of that certain Securities
Escrow Agreement to be entered into by and among the Company, the initial stockholders and
Continental Stock Transfer & Trust Company, as escrow agent, escrow all initial shares held by the
undersigned, directly or indirectly, until the date that is one year after the consummation of an
Initial Business Combination, and any insider warrants purchased by the undersigned, directly or
indirectly, until the date that is 90 days after the consummation of an Initial Business
Combination.

     8. [The undersigned agrees to serve as [Chairman of the Board of Directors] [Director,
President and Chief Executive Officer][Director and Treasurer][Director and Secretary][Director]
until the earlier of the consummation by the Company of an Initial Business Combination or the
liquidation of the Company.]4 [The undersigned acknowledges that the foregoing does not
limit in any way the right of the Company to terminate the undersigned’s employment at any time,
subject to any other contractual rights the undersigned may have.]5 [The undersigned’s
biographical information furnished to the Company and the Representative and attached hereto as
Exhibit A is true and accurate in all respects [and][,] does not omit any material
information with respect to the

 

			
	2	 	Applicable only to Phillip Frost, M.D.,
Robert N. Fried, Rao Uppaluri, Steven D. Rubin and Jane Hsiao.
	 
	3	 	Applicable only to officers and directors.
	 
	4	 	Applicable only to officers and directors.
	 
	5	 	Applicable only to officers.

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undersigned’s background]6 [and contains all of the information required to be
disclosed pursuant to Item 401 of Regulation S-K, promulgated under the Securities Act of 1933, as
amended]7.

     9. The undersigned’s NASD questionnaire furnished to the Company and the Underwriters and
attached hereto as Exhibit B is true and accurate in all respects. The undersigned
represents and warrants that:

     (a) the undersigned is not subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from, any act or practice
relating to the offering of securities in any jurisdiction;

     (b) the undersigned has never been convicted of or pleaded guilty to any crime (i) involving
any fraud or (ii) relating to any financial transaction or handling of funds of another person, or
(iii) pertaining to any dealings in any securities and the undersigned is not currently a defendant
in any such criminal proceeding; and

     (c) the undersigned has never been suspended or expelled from membership in any securities or
commodities exchange or association or had a securities or commodities license or registration
denied, suspended or revoked.

     10. The undersigned has full right and power, without violating any agreement by which he is
bound, to enter into this letter agreement [and to serve as [Chairman of the Board of Directors]
[Director, President and Chief Executive Officer][Director and Treasurer][Director and
Secretary][Director]] 8, and hereby consents to being named in the registration
statement relating to the IPO as a[n] [officer][director][stockholder] of the Company.

     11. The undersigned hereby waives his right to exercise conversion rights with respect to any
shares of the Company’s Common Stock owned or to be owned by the undersigned, directly or
indirectly, and agrees that [he][she][it] will not seek conversion with respect to such shares in
connection with any vote to approve an Initial Business Combination.

     12. [The undersigned agrees that, prior to the consummation of the Initial Business
Combination, he will not propose any amendment to Article [Sixth] of the Company’s Amended and
Restated Certificate of Incorporation or support, endorse or recommend any proposal that
stockholders amend such Article.]9

     13. [In the event that the Company does not consummate an Initial Business Combination and
must liquidate and its remaining net assets are insufficient to complete such liquidation, the
undersigned agrees to advance such funds as are necessary to complete such liquidation and agrees
not to seek repayment for such expenses.]10

     14. This letter agreement shall be governed by and construed and enforced in accordance with
the laws of the State of New York, without giving effect to conflicts of law principles that would
result in the application of the substantive laws of another jurisdiction.

     15. As used herein, (i) “Initial Business Combination” shall mean the acquisition by the
Company, through a merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or other similar business combination, of one or more businesses or assets, in
connection with which the Company will require that a majority of the shares of Common Stock voted
by the Public Stockholders are voted in favor of such acquisition and stockholders owning less than
30% of the IPO Shares exercise their conversion rights; (ii) “initial shares” shall mean the
2,500,000 shares of Common Stock acquired by the initial stockholder prior to the IPO; (iii)
“initial stockholders” refers to Frost Gamma Investments Trust, the beneficiary of which is an
entity controlled by Dr. Phillip Frost, M.D., Robert N. Fried, Rao Uppaluri, Steven D. Rubin, Jane
Hsiao, Thomas E. Beier, Shawn Gold, David H. Moskowitz, Thomas H. Baer, Jarl Mohn and Nautilus
Trust dtd 9/10/99, the family trust of Barry A.

 

			
	6	 	Applicable only to officers, directors and
special advisors.
	 
	7	 	Applicable only to officers and directors.
	 
	8	 	Applicable only to officers and directors.
	 
	9	 	Applicable only to directors.
	 
	10	 	Applicable only to Phillip Frost, M.D.,
Robert N. Fried, Rao Uppaluri, Steven D. Rubin and Jane Hsiao.

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Porter, each of whom purchased initial shares; (iv) “insider warrants” shall mean the
2,400,000 warrants being purchased in a private placement simultaneously with the consummation of
the IPO; (v) “IPO Shares” shall mean the shares of Common Stock underlying the Units issued in the
Company’s IPO; (vi) “Public Stockholders” shall mean purchasers of Common Stock in the IPO or in
the secondary market, including any of the Company’s officers or directors or their affiliates,
including the undersigned, to the extent that they purchase or acquire Common Stock in the IPO or
the secondary market; and (vii) “Trust Account” shall mean the trust account established under the
Investment Management Trust Agreement, dated as of [___], by and between the Company and
Continental Stock Transfer & Trust Company.

     16. This letter agreement shall terminate on the earlier of (i) the consummation of an Initial
Business Combination and (ii) the liquidation of the Company.

[Signature page follows]

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	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Accepted and Agreed:

IDEATION ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert N. Fried 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	LAZARD CAPITAL MARKETS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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Exhibit A

[Biographical Information Furnished to the Company]

A-1

 

 

Exhibit B

[NASD Questionnaires Furnished to the Company and the Underwriters]

B-1EX-10.2 Form of Investment Management Trust Agreem

 

Exhibit 10.2

INVESTMENT MANAGEMENT TRUST AGREEMENT

     THIS INVESTMENT MANAGEMENT TRUST AGREEMENT (this “Agreement”) is made as of __________________, 2007
by and between Ideation Acquisition Corp., a Delaware corporation (the “Company”), and Continental
Stock Transfer & Trust Company, a New York corporation (the “Trustee”).

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

     WHEREAS, Lazard Capital Markets LLC (the “Representative”) is acting as the representative of
the underwriters in the IPO;

     WHEREAS, as described in the Company’s Registration Statement, and in accordance with the
Company’s Amended and Restated Certificate of Incorporation, the Company shall deliver or cause to
be delivered to the Trustee an amount equal to the sum of (i) $75,945,000 of the net proceeds of
the IPO, including $2,400,000 in deferred underwriting compensation (or $87,465,000 of the net
proceeds, including $2,760,000 in deferred underwriting compensation, if the over-allotment option
is exercised in full) and (ii) $2,400,000 million of the proceeds from the Company’s issuance and
sale in a private placement of 2,400,000 warrants (as described in the Registration Statement), for
a total of $78,345,000 (or $89,865,000 if the underwriters’ over-allotment option is exercised in
full), to be deposited and held in a trust account for the benefit of the Company and the holders
of the Company’s common stock, par value $0.0001 per share, issued in the IPO as hereinafter
provided (the amount to be delivered to the Trustee is referred to herein as the “Property,” the
stockholders for whose benefit the Trustee shall hold the Property are referred to herein as the
“Public Stockholders,” and the Public Stockholders are referred to together with the Company as the
“Beneficiaries;”

     WHEREAS, a portion of the Property equal to $2,400,000 (or $2,760,000 if the underwriters’
over-allotment option is exercised in full) is attributable to deferred underwriting commissions
which the Representative 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.

     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, in segregated trust accounts (the “Trust Account”) established by the Trustee at a
branch of JPMorgan Chase Bank, N.A. and at a brokerage institution 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 written instruction of the Company, to invest and reinvest
the Property in United States “government securities” within the meaning of Section 2(a)(16) of the
Investment Company Act of 1940, as amended (the “Investment Company Act”), having a maturity of 180
days or less, or in money market funds selected by the Company meeting the conditions of paragraphs
(c)(2), (c)(3) and (c)(4) of Rule 2a-7 promulgated under the Investment Company Act, as determined
by the Company;

     (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 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 relating to income from the Property
in the Trust Account or otherwise;

     (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 Representative in
writing to do so;

     (h) Render to the Company 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; and

     (i) 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 similar to that attached
hereto as either Exhibit A or Exhibit B, signed on behalf of the Company by its
President, Chief Executive Officer, Chairman of the Board, Treasurer, Secretary or other authorized
officer and affirmed by counsel for the Company, 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; provided, however, that in the event that a Termination Letter
has not been received by the Trustee by the 24-month anniversary of the effective date of the
Registration Statement (“Last Date”), the Trust Account shall be liquidated in accordance with the
procedures set forth in the Termination Letter attached as Exhibit B hereto and distributed
to the stockholders of record on the Last Date. The provisions of this Section 1(i) may not be
modified, amended or deleted under any circumstances.

2. Limited Distributions of Income from Trust Account.

     (a) Upon written request from the Company, which may be given from time to time in a form
substantially similar to that attached hereto as Exhibit C, the Trustee shall distribute to
the Company the amount requested by the Company to cover any income or other tax obligation owed by
the Company;

     (b) Upon written request from the Company, which may be given from time to time in a form
substantially similar to that attached hereto as Exhibit D, the Trustee shall distribute to
the Company the amount requested by the Company to cover expenses related to investigating
and selecting a target business and other working capital requirements; provided, however,
that the aggregate amount of all such distributions, net of taxes payable, shall not exceed
$1,700,000; and

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     (c) The limited distributions referred to in Sections 2(a) and 2(b) above shall be made only
from income collected on the Property. Except as provided in Section 2(a) and 2(b), no other
distributions from the Trust Account shall be permitted except in accordance with Section 1(i)
hereof.

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

     (a) Give all instructions to the Trustee hereunder in writing, signed by the Company’s
President, Chairman of the Board, Treasurer, Secretary or other authorized officer. In addition,
except with respect to its duties under Sections 1(i), 2(a) and 2(b), 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 shall promptly confirm such instructions in
writing;

     (b) 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 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 Section 2 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 accumulated income at the time the disbursements are
made to the Company pursuant to Section 2. 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 Fund. The Company
shall not be responsible for any other fees or charges of the Trustee except as set forth in this
Section 3(c) and as may be provided in Section 3(b) hereof (it being expressly
understood that the Property shall not be used to make any payments to the Trustee under such
Sections); and

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     (d) In connection with any vote of the Company’s stockholders regarding an Initial Business
Combination (as defined in the Company’s Amended and Restated Certificate of Incorporation),
provide to the Trustee an affidavit or certificate of a firm regularly engaged in the business of
soliciting proxies and/or tabulating stockholder votes (which firm may be the Trustee) verifying
the vote of the Company’s stockholders regarding such Initial Business Combination.

     (e) Upon request, provide the Representative with a copy of any Termination Letters and/or
other correspondence relating to any proposed withdrawal from the Trust Account and a copy of any
monthly written statements rendered by the Trustee pursuant to Section 1(h) hereof.

4. 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 and 2
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 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 to give instructions
hereunder shall not be continuing unless provided otherwise in such designation, or unless the
Company 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 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;

     (h) File income tax or information returns with the U.S. Internal Revenue Service and payee
statements with the Company, documenting the taxes payable by the Company, if any, relating to
interest earned on the Property;

     (i) Pay any taxes on behalf of the Trust Account (it being expressly understood that, as set
forth in Section 2(a), if there is any income tax obligation relating to the income of the Property
in the Trust Account, then, at the written instruction of the Company, the Trustee shall disburse
to the Company funds out of the Property in the Trust Account in an amount specified by the Company
as necessary to pay its income tax liability); and

     (j) Compute, confirm or otherwise verify amounts requested by the Company pursuant to Sections
1(i), 2(a) and 2(b) above.

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 (90) 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; or

     (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 3(b).

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 E. 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.

5

 

     (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
original or facsimile 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. Except for Section 1(i) (which may not be amended under any
circumstances), 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 Representative. 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 City 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

8th Floor

New York, New York 10004

Attn: Frank Di Paolo and Steven Nelson

Fax: (212) 616-7620

if to the Company, to:

Ideation Acquisition Corp.

100 North Crescent Drive

Beverly Hills, California 90201

Attn: Robert N. Fried

Fax:

in either case with a copy to:

Lazard Capital Markets LLC

30 Rockefeller Plaza

New York, New York 10020

Attn: Robert Berger

Fax: (212) 641-2636

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

     (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.

     (h) 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 part of the
Property under any circumstance.

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

     (j) Each of the Company and the Trustee hereby acknowledge that the Representative is a third
party beneficiary of this Agreement.

[Signature page follows]

7

 

     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:  	 	 
	 

	 	 	 	 	 
	 	IDEATION ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert N. Fried 	 
	 	 	Title:  	Chief Executive Officer 	 

8

 

	 	 	 	 	 

EXHIBIT A

[Letterhead of Company]

[insert date]

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor
New York, New York 10004

Attn: Steven Nelson, President

Re: Trust Account No. [______________] Termination Letter

Gentlemen:

     Pursuant to Section 1(i) of the Investment Management Trust Agreement between Ideation
Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),
dated as of ______________, 2007 (the “Trust Agreement”), this is to advise you that the Company has
entered into an agreement (“Business Agreement”) with ______________ (the “Target Business”
[or, the “Target Businesses”]) to consummate a business combination with Target Business [or,
Target Businesses] (an “Initial 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 Initial
Business Combination (the “Consummation Date”).

     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 the funds
held in the Trust Account will be immediately available for transfer to the account or accounts
that the Company shall direct in writing on the Consummation Date.

     On the Consummation Date (i) counsel for the Company shall deliver to you written notification
that the Initial Business Combination has been consummated and (ii) the Company shall deliver to
you (a) [an affidavit] [a certificate] of ______________, which verifies the vote of the
Company’s stockholders in connection with the Business Combination and (b) written instructions
with respect to the transfer of the funds held in the Trust Account (the “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 event that certain deposits held in the Trust Account may not be
liquidated by the Consummation Date without penalty, you will notify the Company of the same and
the Company shall direct you as to whether such funds should remain in the Trust Account and
distributed after the Consummation Date to the Company. 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 Initial 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 written instruction of
the Company, 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,

IDEATION ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert N. Fried 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

cc: Lazard Capital Markets LLC

 

 

EXHIBIT B

[Letterhead of Company]

[insert date]

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York 10004

Attn: Steven G. Nelson, President

Re: Trust Account No. [_________] Termination Letter

Gentlemen:

     Pursuant to Section 1(i) of the Investment Management Trust Agreement between Ideation
Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),
dated as of ______________, 2007 (the “Trust Agreement”), this is to advise you that the Company has
been unable to effect an Initial Business Combination within the time frame specified in the
Company’s Amended and Restated Certificate of Incorporation, as described in the Company’s
prospectus relating to its IPO.

     In accordance with the terms of the Trust Agreement, we hereby authorize you to commence
liquidation of the Trust Account. You will notify the Company and ______________ (the
“Designated Paying Agent”) in writing as to when all of the funds in the Trust Account will be
available for immediate transfer (the “Transfer Date”). The Designated Paying Agent shall
thereafter notify you as to the account or accounts of the Designated Paying Agent that the funds
in the Trust Account should be transferred to on the Transfer Date so that the Designated Paying
Agent may commence distribution of such funds in accordance with the Company’s instructions. You
shall have no obligation to oversee the Designated Paying Agent’s distribution of the funds. Upon
the payment to the Designated Paying Agent of all the funds in the Trust Account, the Trust
Agreement shall terminate in accordance with the terms thereof.

	 	 	 	 	 
	 	Very truly yours,

IDEATION ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert N. Fried 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

cc: Lazard Capital Markets LLC

 

 

EXHIBIT C

[Letterhead of Company]

[insert date]

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York 10004

Attn: Steven G. Nelson, President

Re: Trust Account No. [_________] — Distribution of Income on Property

Gentlemen:

     Pursuant to Section 2(a) of the Investment Management Trust Agreement between Ideation
Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),
dated as of ______________, 2007 (the “Trust Agreement”), this is to advise you that the Company hereby
requests that you deliver to the Company $______________ of the income earned on the Property as of the
date hereof. The Company needs such funds to pay for the tax obligations as set forth on the
attached tax return or tax statement. In accordance with the terms of the Trust Agreement, you are
hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your
receipt of this letter to the Company’s operating account at:

[WIRE INSTRUCTION INFORMATION]

	 	 	 	 	 
	 	Very truly yours,

IDEATION ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert N. Fried 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

cc: Lazard Capital Markets LLC

 

 

EXHIBIT D

[Letterhead of Company]

[insert date]

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York 10004

Attn: Steven G. Nelson, President

Re: Trust Account No. [_________] — Distribution of Income on Property

Gentlemen:

     Pursuant to Section 2(b) of the Investment Management Trust Agreement between Ideation
Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust Company (the “Trustee”),
dated as of ______________, 2007 (the “Trust Agreement”), this is to advise you that the Company
hereby requests that you deliver to the Company $______________ of the income earned on the Property as of
the date hereof. The Company needs such funds to cover its expenses relating to investigating and
selecting a target business and other working capital requirements. In accordance with the terms of
the Trust Agreement, you are hereby directed and authorized to transfer (via wire transfer) such
funds promptly upon your receipt of this letter to the Company’s operating account at:

[WIRE INSTRUCTION INFORMATION]

	 	 	 	 	 
	 	Very truly yours,

IDEATION ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Robert N. Fried 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

cc: Lazard Capital Markets LLC

 

 

EXHIBIT E

AUTHORIZED INDIVIDUAL(S) AND TELEPHONE NUMBERS

AUTHORIZED FOR TELEPHONE CALL BACK

	 	 	 
	COMPANY:

	 	Ideation Acquisition Corp.
	 

	 	100 North Crescent Drive
	 

	 	Beverly Hills, California 90210
	 

	 	Attn: Robert N. Fried, President and Chief Executive Officer
	 

	 	Telephone: (310) 694-8150
	 

	 	Cell phone:
	 

	 	E-mail address:
	 
	 	 
	TRUSTEE:

	 	Continental Stock Transfer & Trust Company
	 

	 	17 Battery Place
	 

	 	8th Floor
	 

	 	New York, New York 10004
	 

	 	Attn: Steven Nelson and Frank Di Paolo
	 

	 	Telephone: (212) 509-4000

 

 

SCHEDULE A

Schedule of fees pursuant to Section 3(c) of Investment Management Trust Agreement between Ideation
Acquisition Corp. and Continental Stock Transfer & Trust Company

	 	 	 	 	 	 	 
	Fee Item	 	Time and method of payment	 	Amount
	Initial acceptance fee

	 	Initial closing of IPO by wire
transfer
	 	$	1,000	 
	 
	 	 	 	 	 	 
	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
	 	$	3,000	 
	 
	 	 	 	 	 	 
	Transaction processing fee for
disbursements to Company under
Section 2

	 	Deduction by Trustee from
accumulated income following
disbursement made to Company
under Section 2
	 	$	250	 

	 	 	 	 	 
	 	Agreed:	 
	Dated: ___, 2007
	 
	 	IDEATION ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	Continental Stock Transfer & Trust Co.

 	 
	 	By:  	 	 
	 	 	Authorized Officer

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