Document:

EX-10.5

 

Exhibit 10.5

Lee S. Neibart

[•], 2007

NRDC Acquisition Corp.

3 Manhattanville Road

Purchase, New York 10577

Banc of America Securities LLC

9 West 57th Street

New York, NY 10019

Re: NRDC Acquisition Corp. Initial Public Offering

Gentlemen:

          This letter agreement (this “Letter Agreement”) is being delivered to you in accordance with
the Underwriting Agreement (the “Underwriting Agreement”) entered into by and between NRDC
Acquisition Corp., a Delaware corporation (the “Company”), and Banc of America Securities LLC, a
Delaware limited liability company, as representative of the several underwriters (the
“Underwriters”), relating to an underwritten initial public offering (the “Offering”), of
30,000,000 of the Company’s units (the “Units”), each comprised of one share of the Company’s
common stock, par value $0.0001 per share (the “Common Stock”), and one warrant exercisable for one
share of Common Stock (each, a “Warrant”). The Units sold in the Offering will be listed and traded
on the American Stock Exchange pursuant to a Registration Statement on Form S-1 and prospectus (the
“Prospectus”) filed by the Company with the Securities and Exchange Commission (the “SEC”).
Certain capitalized terms used herein are defined in Section 14.

          In order to induce the Company and the Underwriters to enter into the Underwriting Agreement
and to proceed with the Offering and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby agrees with the Company and
the Underwriters as follows:

	 	1.	 	The undersigned hereby agrees that in the event that the Company fails to consummate a
Business Combination within 24 months after the date of the final Prospectus relating to
the Offering, the undersigned shall take all reasonable steps to (a) cause the Trust
Account to be liquidated and its assets to be distributed to the Public Stockholders and
(b) cause the Company to be liquidated as soon as reasonably practicable. The undersigned
agrees that in connection with any cessation of the corporate existence of the Company, the
undersigned will take all reasonable steps to cause the Company to adopt a plan of
distribution in accordance with Section 281(b) of the General Corporation Law of the State
of Delaware or any successor provision thereto.
	 
	 	2.	 	With respect to such undersigned’s Insiders Shares, the undersigned hereby waives (a)
any and all right, title, interest or claim of any kind in or to any distributions of the
Trust Account as a result of any liquidation of the Company (“Claim”), and to any and all
amounts distributed in connection with a liquidation of the Company, and hereby agrees to
reimburse the Company for any distribution of the Trust Account received by the undersigned
in respect of such undersigned’s Insiders Shares; and (b) any and all right to exercise
conversion rights in connection with a proposed Business Combination. The undersigned
acknowledges and agrees that, upon the Company’s liquidation, all warrants relating to the
Company that are owned by the undersigned will terminate worthless. The undersigned 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 the undersigned will not seek recourse
against the Trust Account for any reason whatsoever.

 

 

	 	3.	 	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 with the other
Founders, against any and all claims by any third party for services rendered, products
sold or financing provided to the Company or by any entity that the Company has entered
into a letter of intent or an acquisition agreement with, but only to the extent necessary
to ensure that such claims do not reduce the amount of funds in the Trust Account and only
if any such third party has not executed an agreement in writing waiving claims against the
Trust Account. In the event the Company’s assets held outside the Trust Account are
insufficient to pay the costs and expenses of liquidation of the Company, the undersigned
agrees to indemnify and hold harmless the Company, on a joint and several basis with the
other Founders, against any costs and expenses of such liquidation.
	 
	 	4.	 	(a) With respect to the undersigned’s Insiders Shares, the undersigned shall not, until
one (1) year after the consummation of an initial Business Combination (the “Lock-Up
Period”), (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant
any option to purchase or otherwise dispose of or agree to dispose of, directly or
indirectly, or establish or increase a put equivalent position or liquidate or decrease a
call equivalent position within the meaning of Section 16 of the Securities Exchange Act of
1934, as amended, and the rules and regulations of the SEC promulgated thereunder with
respect to, any Insiders Shares, (ii) enter into any swap or other arrangement that
transfers to another, in whole or in part, any of the economic consequences of ownership of
Insiders Shares, whether any such transaction is to be settled by delivery of shares of
Common Stock, in cash or otherwise, or (iii) publicly announce an intention to effect any
transaction specified in clause (i) or (ii).
	 
	 	 	 	(b) With respect to the undersigned’s Placement Warrants or shares issuable upon
exercise of the Placement Warrants (the “Placement Securities”), the undersigned shall
not, until the consummation of an initial Business Combination (the “Placement
Securities Lock-Up Period”), (i) sell, offer to sell, contract or agree to sell,
hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to
dispose of, directly or indirectly, or, except as provided in that certain Registration
Rights Agreement dated as of the date hereof, file (or participate in the filing of) a
registration statement with the SEC in respect of, or establish or increase a put
equivalent position or liquidate or decrease a call equivalent position within the
meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder with respect to, any Placement
Securities, (ii) enter into any swap or other arrangement that transfers to another, in
whole or in part, any of the economic consequences of ownership of Placement Securities,
whether any such transaction is to be settled by delivery of shares of Common Stock or
other securities, in cash or otherwise, or (iii) publicly announce an intention to
effect any transaction specified in clause (i) or (ii).
	 
	 	 	 	(c) With respect to any Units acquired in a private placement immediately prior to the
consummation of the Company’s initial Business Combination, the Common Stock and
Warrants comprising such Units, and/or the Common Stock issuable upon exercise of the
Warrants comprising such Units (the “Co-Investment Securities”), the undersigned shall
not, until one (1) year after the consummation of an initial Business Combination (the
“Co-Investment Securities Lock-Up Period”, and considered together with the Insiders
Shares Lock-Up Period and the Placement Securities Lock-Up Period, each a “Lock-Up
Period”), (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant
any option to purchase or otherwise dispose of or agree to dispose of, directly or
indirectly, or establish or increase a put equivalent position or liquidate or decrease
a call equivalent position within the meaning of Section 16 of the Securities Exchange
Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder, with respect to the Co-Investment Securities (ii) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the Co-Investment Securities, whether any such transaction
is to be settled by delivery of Common Stock or such other securities, in cash or
otherwise, or (iii) publicly announce any intention to effect any transaction specified
in clause (i) or (ii).
	 
	 	 	 	(d) Notwithstanding the foregoing, the undersigned may transfer the undersigned’s
Insiders Shares during the applicable Lock-Up Period (as applicable) (i) to a member of
the undersigned’s immediate family or an affiliate of the undersigned, (ii) to a trust,
the beneficiary of which is a member

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	 	 	 	of the undersigned’s immediate family, (iii) by virtue of the laws of descent and
distribution upon death of the undersigned, (iv) to other officers or directors of the
Company, (v) pursuant to a qualified domestic relations order, or (vi) in the event of a
merger, capital stock exchange, stock purchase, asset acquisition or other similar
transaction which results in all the Company’s stockholders having the right to exchange
their shares of Common Stock or other securities for cash, securities or other property
subsequent to the Company’s consummating a Business Combination with a target business;
provided, however, that the permissive transfers pursuant to clauses (i)
 — (v) may be implemented only upon the respective transferee’s written agreement to be
bound by the terms and conditions of this Letter Agreement. During the applicable
Lock-Up Period, the undersigned shall not grant a security interest in the undersigned’s
Insiders Shares.
	 
	 	 	 	(e) If (i) during the last 17 days of the applicable Lock-Up Period, the Company issues
material news or a material event relating to the Company occurs or (ii) before the
expiration of the applicable Lock-Up Period, the Company announces that material news or
a material event relating to the Company will occur during the 16-day period beginning
on the last day of the Lock-Up Period, said Lock-Up Period will be extended for up to 18
days beginning on the issuance of the material news or the occurrence of the material
event.
	 
	 	 	 	(f) The undersigned agrees that after the applicable Lock-Up Period has elapsed, the
undersigned’s Insiders Shares shall only be transferable or saleable pursuant to a sale
registered under the Securities Act of 1933, as amended (the “Securities Act”), or
pursuant to an available exemption from registration, other than Regulations S of the
Securities Act.
	 
	 	5.	 	The undersigned hereby agrees that until after the consummation of a Business
Combination, the undersigned shall not sell, offer to sell, contract or agree to sell,
hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to
dispose of, directly or indirectly, any securities or other interests owned by the
undersigned in NRDC Capital Management, LLC.
	 
	 	6.	 	The undersigned agrees that in connection with any proposed Business Combination, the
undersigned will vote (a) all Insiders Shares owned by the undersigned in accordance with
the majority of the votes cast by the Public Stockholders in connection with the vote
required to approve the Business Combination; (b) all shares of Common Stock acquired by
the undersigned in the Offering or in the secondary market in favor of the Business
Combination; and (c) all Insiders Shares and all shares of Common Stock acquired by the
undersigned in the Offering or in the secondary market in favor of an amendment to the
Second Restated Certificate providing for the Company’s perpetual existence.
	 
	 	7.	 	The undersigned agrees to serve as Chairman of the Board and as a member of the Board
of Directors of the Company until the earlier of the consummation by the Company of a
Business Combination or the liquidation of the Company; provided, however,
that nothing herein shall be construed as providing a right of the undersigned to maintain
any position if removed by proper corporate action. The undersigned’s biographical
information furnished to the Company and the Underwriters and attached hereto as
Exhibit A is true and accurate in all material respects, does not omit any material
information with respect to the undersigned’s background and contains all of the
information required to be disclosed pursuant to Section 401 of Regulation S-K, promulgated
under the Securities Act. The undersigned’s completed questionnaires furnished to the
Company and the Underwriters and attached hereto as Exhibit B are true and accurate
in all material 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;

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	 	 	 	(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; and
	 
	 	 	 	(d) together as a group, the Founders are capable of funding a shortfall in the Trust
Account to satisfy their foreseeable indemnification obligations under Section 3 above.
	 
	 	8.	 	Except as disclosed in the Prospectus, neither the undersigned nor any family member or
affiliate of the undersigned will be entitled to receive, and no such person will accept:
	 
	 	 	 	(a) any compensation, finder’s fee, reimbursement or cash payment from the Company for
services rendered to the Company prior to or in connection with the consummation of a
Business Combination, other than reimbursement from the Company for the undersigned’s
reasonable out-of-pocket expenses related to the Offering and identifying, investigating
and consummating a Business Combination; and
	 
	 	 	 	(b) any finder’s fee, consulting fee or any other compensation or fees from the Company
or any other person or entity in the event the undersigned or any family member or
affiliate of the undersigned originates a Business Combination.
	 
	 	9.	 	The undersigned acknowledges and agrees that the Company will not consummate any
Business Combination with any entity that is affiliated with any Insiders or any of their
respective affiliates unless the Company obtains an opinion from an independent investment
banking firm that the Business Combination is fair to the Company’s stockholders from a
financial perspective.
	 
	 	10.	 	The undersigned has full right and power, without violating any agreement by which the
undersigned is bound (including, without limitation, any non-competition or
non-solicitation agreement), to enter into this Letter Agreement and to serve as an officer
and a director of the Company. The undersigned hereby consents to being named in the
Prospectus.
	 
	 	11.	 	The undersigned agrees that until the consummation of a Business Combination or the
cessation of the corporate existence of the Company, whichever is earlier, the undersigned
will not participate in the formation of, or accept any position as a director or officer
with, any blank check company or any entity commonly regarded as a “special purpose
acquisition company.”
	 
	 	12.	 	The undersigned agrees that until the consummation of a Business Combination, the
undersigned will not recommend or take any action to amend or waive any provisions of
Article Fifth or Article Sixth of the Second Restated Certificate.
	 
	 	13.	 	The undersigned hereby agrees that, on a date that is within the five-day period
following the date that is 30 days after the date of the Underwriting Agreement or, if
earlier, the date the Underwriters terminate their option to purchase Optional Units (as
defined in the Underwriting Agreement) pursuant to the terms of the Underwriting Agreement,
the undersigned will forfeit to the Company, and the Company shall accept from the
undersigned, at no cost, the number of shares of Common Stock determined by multiplying (a)
the product of (i) 1,125,000, multiplied by (ii) a fraction, (x) the numerator of which is
the number of Insiders Shares held by the undersigned, and (y) the denominator of which is
the number of Insiders Shares held by all Founders, by (b) a fraction, (i) the numerator of
which is 4,500,000 minus the number of shares of Common Stock purchased by the Underwriters
upon the exercise of their option to purchase Optional Units, and (ii) the denominator of
which is 4,500,000.
	 
	 	14.	 	As used herein, (a) a “Business Combination” shall mean the Company’s initial
acquisition of one or more operating businesses, through a merger, capital stock exchange,
stock purchase, asset acquisition, or other similar business combination, having an
aggregate fair market value of at least eighty percent (80%) of the balance held in the
Trust Account (excluding the amount held in the Trust Account representing the deferred
underwriting discounts and commissions and taxes payable) at the time of

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	 	 	 	such acquisition; (b) “Founders” shall mean NRDC Capital Management LLC, William L.
Mack, Robert C. Baker, Richard A. Baker and Lee Neibart; (c) “Insiders” shall mean the
Founders and all other officers, directors and stockholders of the Company immediately
prior to the Offering; (d) “Insiders Shares” shall mean all of the shares of Common
Stock owned by an Insider prior to the Offering (and shall include any shares of Common
Stock issued as dividends with respect to such shares); (e) “Public Stockholders” shall
mean the holders of securities issued in the Offering; (f) “Second Restated Certificate”
shall mean the Company’s Second Amended and Restated Certificate of Incorporation, as
the same may be amended from time to time; and (g) “Trust Account” shall mean the trust
account established for the benefit of the Public Stockholders into which a portion of
the net proceeds of the Offering will be deposited.
	 
	 	15.	 	The undersigned acknowledges and understands that the Company will rely upon the
agreements, representations and warranties set forth herein in proceeding with the
Offering. Nothing contained herein shall be deemed to render the Underwriters a
representative of, or a fiduciary with respect to, the Company, its stockholders, or any
creditor or vendor of the Company with respect to the subject matter hereof.
	 
	 	16.	 	This Letter Agreement constitutes the entire agreement and understanding of the parties
hereto in respect of its subject matter and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the
extent they relate in any way to the subject matter hereof or the transactions contemplated
hereby. This Letter Agreement may not be amended, modified or waived as to any particular
provision, except by a written instrument executed by all parties hereto. No party hereto
may assign either this Letter Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other parties hereto. Any purported
assignment in violation of this Section 16 shall be void and ineffectual and shall not
operate to transfer or assign any interest or title to the purported assignee. This Letter
Agreement, the entire relationship of the parties hereto, and any litigation between the
parties (whether grounded in contract, tort, statute, law or equity) shall be governed by,
construed in accordance with, and interpreted pursuant to the laws of the State of New
York, without giving effect to its choice of laws principles. The undersigned hereby agrees
that any action, proceeding or claim against the undersigned arising out of, or relating in
any way to this Letter 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. The undersigned hereby irrevocably and
unconditionally waives the right to a trial by jury in any action, suit, counterclaim or
other proceeding (whether based on contract, tort or otherwise) arising out of, connected
with or relating to this Letter Agreement. This Letter Agreement shall be binding on the
undersigned and such person’s respective heirs, personal representatives, successors and
assigns. This Letter Agreement shall terminate on the earlier of (a) the expiration of the
Lock-Up Period applicable to the undersigned’s Insiders Shares and Co-Investment
Securities, and (b) the liquidation of the Company; provided that such termination shall
not relieve the undersigned from liability for any breach of this Letter Agreement prior to
its termination; and provided further that Section 3 of this Letter Agreement shall survive
the termination of this Letter Agreement.

[SIGNATURES COMMENCE ON NEXT PAGE]

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	 	 	Sincerely,
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	LEE S. NEIBART
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Accepted and agreed:	 	 
	 
	 	 	 	 
	NRDC ACQUISITION CORP.	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:	 	 
	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	BANC OF AMERICA SECURITIES LLC	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:	 	 
	Title:	 	 

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EXHIBIT A

INFORMATION FURNISHED TO THE COMPANY

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EXHIBIT B

QUESTIONNAIRE

8EX-10.11

 

Exhibit 10.11

NRDC ACQUISITION CORP.

INVESTMENT MANAGEMENT TRUST AGREEMENT

     THIS INVESTMENT MANAGEMENT TRUST AGREEMENT (the “Agreement”) is made as of October 9, 2007, by
and between NRDC 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, as amended, No. 333-144871
(together with any registration statement filed pursuant to Rule 462(b), the “Registration Statement”), for its initial public offering (the “IPO”) of 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 (collectively, the “Warrants”) to purchase one share of Common Stock, has
been declared effective as of the date hereof by the Securities and Exchange Commission (the
“Effective Date”); and

     WHEREAS, Banc of America Securities LLC is acting as the underwriter (the “Underwriter”) in
the IPO; and

     WHEREAS, the Company has agreed to sell certain of its securities to its existing stockholders
in a private placement to be effected concurrently with the IPO (“Private Placement”); and

     WHEREAS, as described in the Registration Statement, and in accordance with the Company’s
Certificate of Incorporation, as amended, $296,450,589 of the gross proceeds of the IPO and the
sale of securities in the Private Placement ($339,875,589 if the Underwriter’s over-allotment
option is exercised in full) will be delivered to the Trustee to be deposited and held in a trust
account for the benefit of the Company and the public stockholders of the Common Stock issued in
the IPO (the amount to be delivered to the Trustee will be referred to herein as the “Property”;
the stockholders for whose benefit the Trustee shall hold the Property will be referred to as the
“Public Stockholders,” and the Public Stockholders and the Company will be referred to together as
the “Beneficiaries”); and

     WHEREAS, a portion of the Property consists of $10,500,000 (or $12,075,000 if the
Underwriter’s over-allotment option is exercised in full) attributable to the Underwriter’s
discount (“Deferred Discount”) which the Underwriter has agreed to deposit in the Trust Account
(defined below); and

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

     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 (collectively, the “Trust Account”) established by the
Trustee at a branch of JP Morgan 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 any “Government Security” within the meaning of Section 2(a)(16) of the Investment
Company Act of 1940, as amended, having a maturity of 180 days or less, or in money market funds
selected by the Company

 

 

meeting the conditions specified in Rule 2a-7 promulgated under the Investment Company Act of
1940, as amended, as determined by the Company;

     (d) Collect and receive, when due, all principal and income arising from the Property, which
income, net of taxes, shall become part of the “Property,” as such term is used herein; provided,
however, that, notwithstanding the foregoing or any contrary provision contained herein, the
Trustee shall release to the Company an aggregate amount of up to $2,250,000 from interest earned
and collected on the Trust Account, net of taxes, upon the Company’s demand, to fund working
capital requirements;

     (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 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;

     (i) If there is any income or other tax obligation relating to the income from the Property in
the Trust Account as determined by the Company, 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 disburse to the Company by wire transfer or by check, out
of the Property in the Trust Account, the amount indicated by the Company as owing in respect of
such income tax obligation; and

     (j) 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 or Chairman of the Board, 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. The Company agrees that it shall direct the Trustee to
distribute the Property in the Trust Account only as provided for in the Agreement.

2. Limited Distributions Of Income From Trust Account.

     Except for an aggregate amount of up to $2,250,000 from the interest earned and collected on
the Trust Account, net of taxes, that the Trustee shall release to the Company upon the Company’s
demand to fund working capital requirements, no distributions from the Trust Account shall be
permitted except in accordance with Sections 1(i) and 1(j) hereof. The Trustee shall have no
responsibility or liability to verify calculations, qualify or otherwise approve Company requests
for distributions pursuant to this Section 2.

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 or Chairman of the Board. In addition, except with respect to its duties under Sections
1(i) and 1(j) above, the Trustee shall be entitled to rely on, and shall be protected in relying
on, any verbal or telephonic advice or instruction which it in good faith believes to be given by
any one of the persons authorized above to give written instructions, provided that the Company
shall promptly confirm such instructions in writing. The Company shall provide the Underwriter with
a copy of any Termination Letter and/or any other correspondence that it transmits with respect to
any proposed withdrawal from the Trust Account promptly after it transmits the same;

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     (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 Company may participate in such action with its own counsel;

     (c) Pay the Trustee an initial acceptance fee, an annual fee and a transaction processing fee
for each disbursement made pursuant to Section 1(i) 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 1(i). The Company shall pay the Trustee the initial acceptance fee and
first year’s fee at the completion 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);

     (d) Provide to the Trustee any letter of intent, agreement in principle or definitive
agreement that is executed prior to [•], 2009 in connection with a Business Combination;

     (e) In connection with any vote of the Company’s stockholders regarding a Business
Combination, 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; and

     (f) if the Company does not effect a Business Combination within 24 months after completion of
the IPO, the Company’s existence shall cease except for the purposes of the Company winding up its
affairs and liquidating pursuant to Section 278 of the Delaware General Corporation Law, in which
case as promptly as practicable thereafter the Company shall adopt a plan of distribution in
accordance with Section 281(b) of the Delaware General Corporation Law. Upon the Company’s adoption
of such plan of distribution, the Company shall promptly provide the Trustee a Termination Letter
substantially in the form of Exhibit B hereto.

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 Section 1 hereof,
and the Trustee shall have no liability to any party except for liability arising out of its own
gross negligence or willful misconduct;

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

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

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

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     (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, judgment, instruction, 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 (other
than information provided by the Trustee) 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) Prepare, execute and file tax reports, income or other tax returns 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 as set forth in Section 1(i), if there is any income or other
tax obligation relating to the 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 and the Company shall forward such payment to the taxing authority; or

     (i) Verify calculations, qualify or otherwise approve Company requests for distributions
pursuant to Sections 1(i) and 2 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 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 that arises due to any actions or omissions to act by any party after such deposit;

     (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 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. The Company
and the Trustee will each restrict access to confidential information relating to such security
procedures to authorized persons. Each

4

 

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.

     (b) This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of New York, without giving effect to conflict of laws. It may be executed in several
counterparts, each one of which shall constitute an original, and together shall constitute one
instrument. This Agreement or any counterpart may be executed via facsimile or other electronic
transmission, and any such executed facsimile or other electronic copy shall be treated as an
original.

     (c) This Agreement contains the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof. The parties hereto may change, waive, amend or modify any
provision contained herein that may be defective or inconsistent with any other provision contained
herein only upon the written consent of each of the parties hereto; provided that such action shall
not materially adversely affect the interests of the Public Stockholders. Any other change, waiver,
amendment or modification to this Agreement shall be subject to approval by a majority of the
Public Stockholders. 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 non-exclusive 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, NY 10004

Attn: Steven Nelson and Frank Di Paolo

Fax: (212) 616-7620

if to the Company, to:

NRDC Acquisition Corp.

3 Manhattanville Road

Purchase, NY 10577

Attn: Richard A. Baker, Chief Executive Officer

Fax: (914) 272-8067

with a copy to:

Sidley Austin LLP

787 Seventh Avenue

New York, NY 10019

Attn: Samir A. Gandhi, Esq.

Fax: (212) 839-8654

in either case with a copy on behalf of the Underwriter to:

Banc of America Securities LLC

9 West 57th Street

5

 

New York, NY 10019

Attn: Managing Director (NRDC Acquisition Corp.)

Fax: (646) 313-4784

with a copy to:

Bingham McCutchen LLP

399 Park Avenue

New York, NY 10022

Attn: Floyd I. Wittlin, Esq.

Fax: (212) 752-5378

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

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

     (h) The Trustee hereby waives any and all right, title, interest or claim of any kind
(“Claim”) in or to any distribution of any property held in trust for the Company in the Trust
Account, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any
Claim against the Trust Account for any reason whatsoever.

     (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 Trustee agrees and acknowledges that the Underwriter is a third
party beneficiary of this Agreement.

[Remainder of page intentionally left blank]

6

 

     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:
	 	/s/ Frank A. Di Paolo
 

Frank A. Di Paolo
	 	 
	 

	 	Title:
	 	Trust Officer & CFO	 	 
	 
	 	 	 	 	 	 
	 	 	NRDC ACQUISITION CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Richard A. Baker
 

Richard A. Baker
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 

7

 

EXHIBIT A

[LETTERHEAD OF COMPANY]

[INSERT DATE]

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor

New York, NY 10004

Attn: Steven Nelson and Frank Di Paolo

Re: Trust Account No. [•] Termination Letter

Gentlemen:

     Pursuant to Section 1(j) of the Investment Management Trust Agreement between NRDC 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”) to consummate a business
combination with Target Business (a “Business Combination”) on or about [INSERT DATE]. The Company
shall notify you at least 48 hours in advance of the actual date of the consummation of the
Business Combination (the “Consummation Date”). Defined terms used but not otherwise defined herein
shall have the meaning ascribed to such terms in the Trust Agreement.

     Pursuant to Section 3(e) of the Trust Agreement, we are providing you with [an affidavit] [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 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 Business Combination has been consummated and (ii) the Company shall deliver to you
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 be distributed after the Consummation Date to the Company or, with respect to the
Deferred Discount, to the Underwriter. 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 of written instructions from 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,	 	 
	 
	 	 	 	 	 	 
	 	 	NRDC ACQUISITION CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	  

Richard
A. Baker
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 

 

 

EXHIBIT B

[LETTERHEAD OF COMPANY]

[INSERT DATE]

Continental Stock Transfer & Trust Company

17 Battery Place, 8th Floor

New York, NY 10004

Attn: Steven Nelson and Frank Di Paolo

Re: Trust Account No. [•] Termination Letter

Gentlemen:

     Pursuant to paragraph 1(j) of the Investment Management Trust Agreement between NRDC
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’s existence
has ceased due to the Company’s inability to effect a Business Combination within the time frame
specified in the Company’s prospectus relating to its IPO. Defined terms used but not otherwise
defined herein shall have the meaning ascribed to such terms in the Trust Agreement.

     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 in writing as to when all of the
funds in the Trust Account will be available for immediate transfer (the “Transfer Date”) in
accordance with the Company’s plan of distribution attached hereto. You shall commence distribution
of such funds in accordance with the terms of such plan of distribution 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 and the Trust Account shall be closed.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	NRDC ACQUISITION CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	  

Richard
A. Baker
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 

 

 

SCHEDULE A

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

between NRDC 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
Sections 1(i) and 2

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

Dated: October 9, 2007

	 	 	 	 	 	 	 
	 	 	Agreed:	 	 
	 
	 	 	 	 	 	 
	 	 	NRDC Acquisition Corp.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard A. Baker
 

	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Continental Stock Transfer & Trust Company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Frank A. Di Paolo
 

	 	 
	 

	 	Title:
	 	Trust Officer & CFO

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