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EXHIBIT 4.5

THE REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL
NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION EXCEPT AS HEREIN PROVIDED AND THE REGISTERED
HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR
HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED
BELOW) TO ANYONE OTHER THAN (I) FERRIS, BAKER WATTS, INCORPORATED
(“FBW”) OR AN UNDERWRITER OR A SELECTED DEALER IN
CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF FBW OR ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER
OF (I) THE CONSUMMATION BY INDIA
GLOBALIZATION CAPITAL, INC. (“COMPANY”) OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION OR
OTHER SIMILAR BUSINESS COMBINATION (“BUSINESS COMBINATION”) (AS DESCRIBED MORE FULLY IN THE
COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN)) AND (II) ___, 2006. VOID AFTER 5:00
P.M. EASTERN TIME, ___, 2010.

UNIT PURCHASE OPTION

FOR THE PURCHASE OF

500,000 UNITS

OF

INDIA GLOBALIZATION CAPITAL, INC.

1. PURCHASE OPTION.

THIS CERTIFIES THAT, in consideration of $100.00 duly paid by or on behalf of                                         
(“Holder”), as registered owner of this Purchase Option, to India Globalization Capital, Inc.
(“Company”), Holder is entitled, at any time or from time to time upon the later of (i) the
consummation of a Business Combination AND (ii)                     , 2006 (“Commencement Date”), and at or
before 5:00 p.m., Eastern Time,                     , 2010 (“Expiration Date”), but not thereafter, to
subscribe for, purchase and receive, in whole or in part, up to Five
Hundred Thousand
(500,000) units (“Units”) of the Company, each Unit consisting of one share of common stock of
the Company, par value $.0001 per share (“Common Stock”), and two warrants (“Warrant(s)”) expiring
five years from the effective date (“Effective Date”) of the registration statement (“Registration
Statement”) pursuant to which Units are offered for sale to the public (“Offering”). Each Warrant
is the same as the warrants included in the Units being registered for sale to the public by way of
the Registration Statement (“Public Warrants”), except that the Warrants have an exercise price of
$6.25 per share (125% of the exercise price of the Public Warrants). If the Expiration Date is a
day on which banking institutions are authorized by law to close, then this Purchase Option may be
exercised on the next succeeding day which is not such a day in accordance with the terms herein.
During the period ending on the Expiration Date, the Company agrees not to take any action that
would terminate the Purchase Option. This Purchase Option is initially exercisable at $7.50 per
Unit so purchased; provided, however, that upon the occurrence of any of the events specified in
Section 6 hereof, the rights granted by this Purchase Option, including the exercise price per Unit
and the number of Units (and shares of Common Stock and Warrants) to be received upon such
exercise,

 

 

shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise
price or the adjusted exercise price, depending on the context.

2. EXERCISE.

2.1 EXERCISE FORM. In order to exercise this Purchase Option, the exercise form attached
hereto must be duly executed and completed and delivered to the Company, together with this
Purchase Option and payment of the Exercise Price for the Units being purchased payable in cash or
by certified check or official bank check. If the subscription rights represented hereby shall not
be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date this Purchase Option
shall become and be void without further force or effect, and all rights represented hereby shall
cease and expire.

2.2 LEGEND. Each certificate for the securities purchased under this Purchase Option
shall bear a legend as follows unless such securities have been registered under the Securities Act
of 1933, as amended (“Act”):

“The securities represented by this certificate have not been registered under the Securities Act
of 1933, as amended (“Act”) or applicable state law. The securities may not be offered for sale,
sold or otherwise transferred except pursuant to an effective registration statement under the Act,
or pursuant to an exemption from registration under the Act and applicable state law.”

2.3 CASHLESS EXERCISE.

2.3.1 DETERMINATION OF AMOUNT. In lieu of the payment of the Exercise Price multiplied
by the number of Units for which this Purchase Option is exercisable (and in lieu of being entitled
to receive Common Stock and Warrants) in the manner required by Section 2.1, the Holder shall have
the right (but not the obligation) to convert any exercisable but unexercised portion of this
Purchase Option into Units (“Conversion Right”) as follows: upon exercise of the Conversion Right,
the Company shall deliver to the Holder (without payment by the Holder of any of the Exercise Price
in cash) that number of shares of Common Stock and Warrants comprising that number of Units equal
to the quotient obtained by dividing (x) the “Value” (as defined below) of the portion of the
Purchase Option being converted by (y) the Current Market Value (as defined below). The “Value” of
the portion of the Purchase Option being converted shall equal the remainder derived from
subtracting (a) (i) the Exercise Price multiplied by (ii) the number of Units underlying the
portion of this Purchase Option being converted from (b) the Current Market Value of a Unit
multiplied by the number of Units underlying the portion of the Purchase Option being converted.
As used herein, the term “Current Market Value” per Unit at any date means the remainder derived
from subtracting (x) the exercise price of the Warrants multiplied by the number of shares of
Common Stock issuable upon exercise of the Warrants underlying one Unit from (y)(i) the Current
Market Price of the Common Stock multiplied by (ii) the number of shares of Common Stock underlying
one Unit, which shall include the shares of Common Stock underlying the Warrants included in such
Unit. The “Current Market Price” of a share of Common Stock shall mean (i) if the Common Stock is
listed on a national securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap
Market or NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), the last sale
price of the Common Stock in the principal trading market for the Common Stock as reported by the

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exchange, Nasdaq or the NASD, as the case may be; (ii) if the Common Stock is not listed on a
national securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or the
NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), but is traded in the
residual over-the-counter market, the closing bid price for the Common Stock on the last trading
day preceding the date in question for which such quotations are reported by the Pink Sheets, LLC
or similar publisher of such quotations; and (iii) if the fair market value of the Common Stock
cannot be determined pursuant to clause (i) or (ii) above, such price as the Board of Directors of
the Company shall determine, in good faith.

2.3.2 MECHANICS OF CASHLESS EXERCISE. The Cashless Exercise Right may be exercised by
the Holder on any business day on or after the Commencement Date and not later than the Expiration
Date by delivering the Purchase Option with the duly executed exercise form attached hereto with
the cashless exercise section completed to the Company, exercising the Cashless Exercise Right and
specifying the total number of Units the Holder will purchase pursuant to such Cashless Exercise
Right.

3. TRANSFER.

3.1 GENERAL RESTRICTIONS. The registered Holder of this Purchase Option, by its
acceptance hereof, agrees that it will not sell, transfer, assign, pledge or hypothecate this
Purchase Option for a period of one year following the Effective Date to anyone other than (i) FBW
or an underwriter or a selected dealer in connection with the Offering, or (ii) a bona fide officer
or partner of FBW or any such underwriter or selected dealer. On and after the second anniversary of the
Effective Date, transfers to others may be made subject to compliance with or exemptions from
applicable securities laws. In order to make any permitted assignment, the Holder must deliver to
the Company the assignment form attached hereto duly executed and completed, together with the
Purchase Option and payment of all transfer taxes, if any, payable in connection therewith. The
Company shall within five business days transfer this Purchase Option on the books of the Company
and shall execute and deliver a new Purchase Option or Purchase Options of like tenor to the
appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Units
purchasable hereunder or such portion of such number as shall be contemplated by any such
assignment.

3.2 RESTRICTIONS IMPOSED BY THE ACT. The securities evidenced by this Purchase Option
shall not be transferred unless and until (i) the Company has received the opinion of counsel for
the Holder that the securities may be transferred pursuant to an exemption from registration under
the Act and applicable state securities laws, the availability of which is established to the
reasonable satisfaction of the Company, or (ii) a registration statement or a post-effective
amendment to the Registration Statement relating to such securities has been filed by the Company
and declared effective by the Securities and Exchange Commission and compliance with applicable
state securities law has been established.

4. NEW PURCHASE OPTIONS TO BE ISSUED.

4.1 PARTIAL EXERCISE OR TRANSFER. Subject to the restrictions in Section 3 hereof, this
Purchase Option may be exercised or assigned in whole or in part. In the event of the exercise or
assignment hereof in part only, upon surrender of this Purchase Option for

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cancellation, together with the duly executed exercise or assignment form and funds sufficient to
pay any Exercise Price and/or transfer tax, the Company shall cause to be delivered to the Holder
without charge a new Purchase Option in like form to this Purchase Option in the name of the Holder
evidencing the right of the Holder to purchase the number of Units purchasable hereunder as to
which this Purchase Option has not been exercised or assigned.

4.2 LOST CERTIFICATE. Upon receipt by the Company of evidence satisfactory to it of the
loss, theft, destruction or mutilation of this Purchase Option and of reasonably satisfactory
indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase
Option of like tenor and date. Any such new Purchase Option executed and delivered as a result of
such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on
the part of the Company.

5. REGISTRATION RIGHTS.

5.1 DEMAND REGISTRATION.

5.1.1 GRANT OF RIGHT. The Company, upon written demand (“Initial Demand Notice”) of the
Holder(s) of at least 51% of the Purchase Options and/or the underlying Units and/or the underlying
securities (“Majority Holders”), agrees to register on one occasion, all or any portion of the
Purchase Options requested by the Majority Holders in the Initial Demand Notice and all of the
securities underlying such Purchase Options, including the Units, Common Stock, the Warrants and
the Common Stock underlying the Warrants (collectively, the “Registrable Securities”). On such
occasion, the Company will file a registration statement or a post-effective amendment to the
Registration Statement covering the Registrable Securities within sixty days after receipt of the
Initial Demand Notice and use its best efforts to have such registration statement or
post-effective amendment declared effective as soon as possible thereafter. The demand for
registration may be made at any time during a period of five years beginning on the Effective Date.
The Company covenants and agrees to give written notice of its receipt of any Initial Demand Notice
by any Holder(s) to all other registered Holders of the Purchase Options and/or the Registrable
Securities within ten days from the date of the receipt of any such Initial Demand Notice.

5.1.2 TERMS. The Company shall bear all fees and expenses attendant to registering the
Registrable Securities, including the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities, but the Holders shall pay
any and all underwriting commissions. The Company agrees to use its reasonable best efforts to
qualify or register the Registrable Securities in such States as are reasonably requested by the
Majority Holder(s); provided, however, that in no event shall the Company be required to register
the Registrable Securities in a State in which such registration would cause (i) the Company to be
obligated to qualify to do business in such State, or would subject the Company to taxation as a
foreign corporation doing business in such jurisdiction or (ii) the principal stockholders of the
Company to be obligated to escrow their shares of capital stock of the Company. The Company shall
cause any registration statement or post-effective amendment filed pursuant to the demand rights
granted under Section 5.1.1 to remain effective for a period of nine consecutive months from the
effective date of such registration statement or post-effective amendment.

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5.2 “PIGGY-BACK” REGISTRATION.

5.2.1 GRANT OF RIGHT. In addition to the demand right of registration, the Holders of
the Purchase Options shall have the right for a period of seven years commencing on the Effective
Date, to include the Registrable Securities as part of any other registration of securities filed
by the Company (other than in connection with a transaction contemplated by Rule 145(a) promulgated
under the Act or pursuant to Form S-8); provided, however, that if, in the written opinion of the
Company’s managing underwriter or underwriters, if any, for such offering, the inclusion of the
Registrable Securities, when added to the securities being registered by the Company or the selling
stockholder(s), will exceed the maximum amount of the Company’s securities which can be marketed
(i) at a price reasonably related to their then current market value, and (ii) without materially
and adversely affecting the entire offering, then the Company will still be required to include the
Registrable Securities, but may require the Holders to agree, in writing, to delay the sale of all
or any portion of the Registrable Securities for a period of 90 days from the effective date of the
offering, provided, further, that if the sale of any Registrable Securities is so delayed, then the
number of securities to be sold by all stockholders in such public offering during such 90 day
period shall be apportioned pro rata among all such selling stockholders, including all holders of
the Registrable Securities, according to the total amount of securities of the Company owned by
said selling stockholders, including all holders of the Registrable Securities.

5.2.2 TERMS. The Company shall bear all fees and expenses attendant to registering the
Registrable Securities, including the expenses of any legal counsel selected by the Holders to
represent them in connection with the sale of the Registrable Securities but the Holders shall pay
any and all underwriting commissions related to the Registrable Securities. In the event of such a
proposed registration, the Company shall furnish the then Holders of outstanding Registrable
Securities with not less than fifteen days written notice prior to the proposed date of filing of
such registration statement. Such notice to the Holders shall continue to be given for each
applicable registration statement filed (during the period in which the Purchase Option is
exercisable) by the Company until such time as all of the Registrable Securities have been
registered and sold. The holders of the Registrable Securities shall exercise the “piggy-back”
rights provided for herein by giving written notice, within ten days of the receipt of the
Company’s notice of its intention to file a registration statement. The Company shall cause any
registration statement filed pursuant to the above “piggyback” rights to remain effective for at
least nine months from the date that the Holders of the Registrable Securities are first given the
opportunity to sell all of such securities.

5.3 DAMAGES. Should the registration or the effectiveness thereof required by Sections
5.1 and 5.2 hereof be delayed by the Company or the Company otherwise fails to comply with such
provisions, the Company shall, in addition to any other equitable or other relief available to the
Holder(s), be liable for any and all incidental, special and consequential damages sustained by the
Holder(s), including, but not limited to, the loss of any profits that might have been received by
the holder upon the sale of shares of Common Stock or Warrants (and shares of Common Stock
underlying the Warrants) underlying this Purchase Option.

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5.4 GENERAL TERMS.

5.4.1 INDEMNIFICATION. The Company shall indemnify the Holder(s) of the Registrable
Securities to be sold pursuant to any registration statement hereunder and each person, if any, who
controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the
Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage,
expense or liability (including all reasonable attorneys’ fees and other expenses reasonably
incurred in investigating, preparing or defending against litigation, commenced or threatened, or
any claim whatsoever whether arising out of any action between the underwriter and the Company or
between the underwriter and any third party or otherwise) to which any of them may become subject
under the Act, the Exchange Act or otherwise, arising from such registration statement but only to
the same extent and with the same effect as the provisions pursuant to which the Company has agreed
to indemnify the underwriters contained in the Underwriting Agreement between the Company, FBW and
the other underwriters named therein dated the Effective Date. The Holder(s) of the Registrable
Securities to be sold pursuant to such registration statement, and their successors and assigns,
shall severally, and not jointly, indemnify the Company, its officers and directors and each
person, if any, who controls the Company within the meaning of Section 15 of the Act or Section
20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all
reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which they may become subject under the Act, the
Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or
their successors or assigns, in writing, for specific inclusion in such registration statement to
the same extent and with the same effect as the provisions contained in Section 5 of the
Underwriting Agreement pursuant to which the underwriters have agreed to indemnify the Company.

5.4.2 EXERCISE OF PURCHASE OPTIONS. Nothing contained in this Purchase Option shall be
construed as requiring the Holder(s) to exercise their Purchase Options or Warrants underlying such
Purchase Options prior to or after the initial filing of any registration statement or the
effectiveness thereof.

5.4.3 DOCUMENTS DELIVERED TO HOLDERS. The Company shall furnish FBW, as representative
of the Holders participating in any of the foregoing offerings, a signed counterpart, addressed to
the participating Holders, of (i) an opinion of counsel to the Company, dated the effective date of
such registration statement (and, if such registration includes an underwritten public offering, an
opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a
“cold comfort” letter dated the effective date of such registration statement (and, if such
registration includes an underwritten public offering, a letter dated the date of the closing under
the underwriting agreement) signed by the independent public accountants who have issued a report
on the Company’s financial statements included in such registration statement, in each case
covering substantially the same matters with respect to such registration statement (and the
prospectus included therein) and, in the case of such accountants’ letter, with respect to events
subsequent to the date of such financial statements, as are customarily covered in opinions of
issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten public
offerings of securities. The Company shall also deliver promptly to FBW, as representative of the
Holders participating in the offering, the correspondence and memoranda described below and copies
of all correspondence between the Commission and the Company, its counsel or auditors and all
memoranda relating to discussions with the Commission or its staff with respect to the registration
statement and permit FBW, as

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representative of the Holders, to do such investigation, upon reasonable advance notice, with
respect to information contained in or omitted from the registration statement as it deems
reasonably necessary to comply with applicable securities laws or rules of the National Association
of Securities Dealers, Inc. (“NASD”). Such investigation shall include access to books, records and
properties and opportunities to discuss the business of the Company with its officers and
independent auditors, all to such reasonable extent and at such reasonable times and as often as
FBW, as representative of the Holders, shall reasonably request. The Company shall not be required
to disclose any confidential information or other records to FBW, as representative of the Holders,
or to any other person, until and unless such persons shall have entered into reasonable
confidentiality agreements (in form and substance reasonably satisfactory to the Company), with the
Company with respect thereto.

5.4.4 UNDERWRITING AGREEMENT. The Company shall enter into an underwriting agreement with
the managing underwriter(s), if any, selected by any Holders whose Registrable Securities are being
registered pursuant to this Section 5, which managing underwriter shall be reasonably acceptable to
the Company. Such agreement shall be reasonably satisfactory in form and substance to the Company,
each Holder and such managing underwriters, and shall contain such representations, warranties and
covenants by the Company and such other terms as are customarily contained in agreements of that
type used by the managing underwriter. The Holders shall be parties to any underwriting agreement
relating to an underwritten sale of their Registrable Securities and may, at their option, require
that any or all the representations, warranties and covenants of the Company to or for the benefit
of such underwriters shall also be made to and for the benefit of such Holders. Such Holders shall
not be required to make any representations or warranties to or agreements with the Company or the
underwriters except as they may relate to such Holders and their intended methods of distribution.
Such Holders, however, shall agree to such covenants and indemnification and contribution
obligations for selling stockholders as are customarily contained in agreements of that type used
by the managing underwriter. Further, such Holders shall execute appropriate custody agreements and
otherwise cooperate fully in the preparation of the registration statement and other documents
relating to any offering in which they include securities pursuant to this Section 5. Each Holder
shall also furnish to the Company such information regarding itself, the Registrable Securities
held by it, and the intended method of disposition of such securities as shall be reasonably
required to effect the registration of the Registrable Securities.

5.4.5 RULE 144 SALE. Notwithstanding anything contained in this Section 5 to the
contrary, the Company shall have no obligation pursuant to Sections 5.1 or 5.2 for the registration
of Registrable Securities held by any Holder (i) where such Holder would then be entitled to sell
under Rule 144 within any three-month period (or such other period prescribed under Rule 144 as may
be provided by amendment thereof) all of the Registrable Securities then held by such Holder, and
(ii) where the number of Registrable Securities held by such Holder is within the volume
limitations under paragraph (e) of Rule 144 (calculated as if such Holder were an affiliate within
the meaning of Rule 144).

5.4.6 SUPPLEMENTAL PROSPECTUS. Each Holder agrees, that upon receipt of any notice from
the Company of the happening of any event as a result of which the prospectus included in the
Registration Statement, as then in effect, includes an untrue statement of a material fact or omits
to state a material fact required to be stated therein or necessary to make the statements

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therein not misleading in light of the circumstances then existing, such Holder will immediately
discontinue disposition of Registrable Securities pursuant to the Registration Statement covering
such Registrable Securities until such Holder’s receipt of the copies of a supplemental or amended
prospectus, and, if so desired by the Company, such Holder shall deliver to the Company (at the
expense of the Company) or destroy (and deliver to the Company a certificate of such destruction)
all copies, other than permanent file copies then in such Holder’s possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such notice.

6. ADJUSTMENTS.

6.1 ADJUSTMENTS TO EXERCISE PRICE AND NUMBER OF SECURITIES. The Exercise Price and the
number of Units underlying the Purchase Option shall be subject to adjustment from time to time as
hereinafter set forth:

6.1.1 STOCK DIVIDENDS — SPLIT-UPS. If after the date hereof, and subject to the
provisions of Section 6.3 below, the number of outstanding shares of Common Stock is increased by a
stock dividend payable in shares of Common Stock or by a split-up of shares of Common Stock or
other similar event, then, on the effective date thereof, the number of shares of Common Stock
underlying each of the Units purchasable hereunder shall be increased in proportion to such
increase in outstanding shares. In such case, the number of shares of Common Stock, and the
exercise price applicable thereto, underlying the Warrants underlying each of the Units purchasable
hereunder shall be adjusted in accordance with the terms of the Warrants. For example, if the
Company declares a two-for-one stock dividend and at the time of such dividend this Purchase Option
is for the purchase of one Unit at $7.50 per whole Unit (each Warrant underlying the Units is
exercisable for $6.25 per share), upon effectiveness of the dividend, this Purchase Option will be
adjusted to allow for the purchase of one Unit at $7.50 per Unit, each Unit entitling the holder to
receive two shares of Common Stock and four Warrants (each Warrant
exercisable for $3.125 per
share).

6.1.2 AGGREGATION OF SHARES. If after the date hereof, and subject to the provisions of
Section 6.3, the number of outstanding shares of Common Stock is decreased by a consolidation,
combination or reclassification of shares of Common Stock or other similar event, then, on the
effective date thereof, the number of shares of Common Stock underlying each of the Units
purchasable hereunder shall be decreased in proportion to such decrease in outstanding shares. In
such case, the number of shares of Common Stock, and the exercise price applicable thereto,
underlying the Warrants underlying each of the Units purchasable hereunder shall be adjusted in
accordance with the terms of the Warrants.

6.1.3 REPLACEMENT OF SECURITIES UPON REORGANIZATION, ETC. In case of any reclassification
or reorganization of the outstanding shares of Common Stock other than a change covered by Section
6.1.1 or 6.1.2 hereof or that solely affects the par value of such shares of Common Stock, or in
the case of any merger or consolidation of the Company with or into another corporation (other than
a consolidation or merger in which the Company is the continuing corporation and that does not
result in any reclassification or reorganization of the outstanding shares of Common Stock), or in
the case of any sale or conveyance to another corporation or entity of the property of the Company
as an entirety or substantially as an entirety

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in connection with which the Company is dissolved, the Holder of this Purchase Option shall have
the right thereafter (until the expiration of the right of exercise of this Purchase Option) to
receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder
immediately prior to such event, the kind and amount of shares of stock or other securities or
property (including cash) receivable upon such reclassification, reorganization, merger or
consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number
of shares of Common Stock of the Company obtainable upon exercise of this Purchase Option and the
underlying Warrants immediately prior to such event; and if any reclassification also results in a
change in shares of Common Stock covered by Section 6.1.1 or 6.1.2, then such adjustment shall be
made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3
shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations,
sales or other transfers.

6.1.4 CHANGES IN FORM OF PURCHASE OPTION. This form of Purchase Option need not be
changed because of any change pursuant to this Section, and Purchase Options issued after such
change may state the same Exercise Price and the same number of Units as are stated in the Purchase
Options initially issued pursuant to this Agreement. The acceptance by any Holder of the issuance
of new Purchase Options reflecting a required or permissive change shall not be deemed to waive any
rights to an adjustment occurring after the Commencement Date or the computation thereof.

6.2 SUBSTITUTE PURCHASE OPTION. In case of any consolidation of the Company with, or
merger of the Company with, or merger of the Company into, another corporation (other than a
consolidation or merger which does not result in any reclassification or change of the outstanding
Common Stock), the corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental Purchase Option providing that the holder of each Purchase Option then
outstanding or to be outstanding shall have the right thereafter (until the stated expiration of
such Purchase Option) to receive, upon exercise of such Purchase Option, the kind and amount of
shares of stock and other securities and property receivable upon such consolidation or merger, by
a holder of the number of shares of Common Stock of the Company for which such Purchase Option
might have been exercised immediately prior to such consolidation, merger, sale or transfer. Such
supplemental Purchase Option shall provide for adjustments which shall be identical to the
adjustments provided in Section 6. The above provision of this Section shall similarly apply to
successive consolidations or mergers.

6.3 ELIMINATION OF FRACTIONAL INTERESTS. The Company shall not be required to issue
certificates representing fractions of shares of Common Stock or Warrants upon the exercise of the
Purchase Option, nor shall it be required to issue scrip or pay cash in lieu of any fractional
interests, it being the intent of the parties that all fractional interests shall be eliminated by
rounding any fraction up to the nearest whole number of Warrants, shares of Common Stock or other
securities, properties or rights.

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7. RESERVATION AND LISTING. The Company shall at all times reserve and keep available out
of its authorized shares of Common Stock, solely for the purpose of issuance upon exercise of the
Purchase Options or the Warrants underlying the Purchase Option, such number of shares of Common
Stock or other securities, properties or rights as shall be issuable upon the exercise thereof. The
Company covenants and agrees that, upon exercise of the Purchase Options and payment of the
Exercise Price therefor, all shares of Common Stock and other securities issuable upon such
exercise shall be duly and validly issued, fully paid and non-assessable and not subject to
preemptive rights of any stockholder. The Company further covenants and agrees that upon exercise
of the Warrants underlying the Purchase Options and payment of the respective Warrant exercise
price therefor, all shares of Common Stock and other securities issuable upon such exercise shall
be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of
any stockholder. As long as the Purchase Options shall be outstanding, the Company shall use its
best efforts to cause all (i) Units and shares of Common Stock issuable upon exercise of the
Purchase Options, (iii) Warrants issuable upon exercise of the Purchase Options and (iv) shares of
Common Stock issuable upon exercise of the Warrants included in the Units issuable upon exercise of
the Purchase Option to be listed (subject to official notice of issuance) on all securities
exchanges (or, if applicable on the Nasdaq National Market, SmallCap Market, OTC Bulletin Board or
any successor trading market) on which the Units, the Common Stock or the Public Warrants issued to
the public in connection herewith may then be listed and/or quoted.

8. CERTAIN NOTICE REQUIREMENTS.

8.1 HOLDER’S RIGHT TO RECEIVE NOTICE. Nothing herein shall be construed as conferring
upon the Holders the right to vote or consent as a stockholder for the election of directors or any
other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at
any time prior to the expiration of the Purchase Options and their exercise, any of the events
described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give
written notice of such event at least fifteen days prior to the date fixed as a record date or the
date of closing the transfer books for the determination of the stockholders entitled to such
dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to
vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such
record date or the date of the closing of the transfer books, as the case may be. Notwithstanding
the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other
stockholders of the Company at the same time and in the same manner that such notice is given to
the stockholders.

8.2 EVENTS REQUIRING NOTICE. The Company shall be required to give the notice described
in this Section 8 upon one or more of the following events: (i) if the Company shall take a record
of the holders of its shares of Common Stock for the purpose of entitling them to receive a
dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable
otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend
or distribution on the books of the Company, or (ii) the Company shall offer to all the holders of
its Common Stock any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to
subscribe therefor, or (iii) a dissolution, liquidation

10

 

or winding up of the Company (other than in connection with a consolidation or merger) or a sale of
all or substantially all of its property, assets and business shall be proposed.

8.3 NOTICE OF CHANGE IN EXERCISE PRICE. The Company shall, promptly after an event
requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holders
of such event and change (“Price Notice”). The Price Notice shall describe the event causing the
change and the method of calculating same and shall be certified as being true and accurate by the
Company’s President and Chief Financial Officer.

8.4 TRANSMITTAL OF NOTICES. All notices, requests, consents and other communications
under this Purchase Option shall be in writing and shall be deemed to have been duly made when hand
delivered, or mailed by express mail or private courier service: (i) If to the registered Holder of
the Purchase Option, to the address of such Holder as shown on the books of the Company, or (ii) if
to the Company, to the following address or to such other address as the Company may designate by
notice to the Holders:

India Globalization Capital, Inc.

4336 Montgomery Avenue

Bethesda, Maryland 20814

Attn: Ram Mukunda, Chairman

9. MISCELLANEOUS.

9.1 AMENDMENTS. The Company and FBW may from time to time supplement or amend this
Purchase Option without the approval of any of the Holders in order to cure any ambiguity, to
correct or supplement any provision contained herein that may be defective or inconsistent with any
other provisions herein, or to make any other provisions in regard to matters or questions arising
hereunder that the Company and FBW may deem necessary or desirable and that the Company and FBW
deem shall not adversely affect the interest of the Holders. All other modifications or amendments
shall require the written consent of and be signed by the party against whom enforcement of the
modification or amendment is sought.

9.2 HEADINGS. The headings contained herein are for the sole purpose of convenience of
reference, and shall not in any way limit or affect the meaning or interpretation of any of the
terms or provisions of this Purchase Option.

10. ENTIRE AGREEMENT. This Purchase Option (together with the other agreements and
documents being delivered pursuant to or in connection with this Purchase Option) constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes
all prior agreements and understandings of the parties, oral and written, with respect to the
subject matter hereof.

10.1 BINDING EFFECT. This Purchase Option shall inure solely to the benefit of and shall
be binding upon, the Holder and the Company and their permitted assignees, respective successors,
legal representative and assigns, and no other person shall have or be construed to have any legal
or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Option or
any provisions herein contained.

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10.2 GOVERNING LAW; SUBMISSION TO JURISDICTION. This Purchase Option shall be governed
by and construed and enforced in accordance with the laws of the State of Maryland, without giving
effect to conflict of laws. The Company hereby agrees that any action, proceeding or claim against
it arising out of, or relating in any way to this Purchase Option shall be brought and enforced in
the courts of the State of Maryland or of the United States of America for the District of
Maryland, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The
Company hereby waives any objection to such exclusive jurisdiction and that such courts represent
an inconvenient forum. Any process or summons to be served upon the Company may be served by
transmitting a copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed
personal service and shall be legal and binding upon the Company in any action, proceeding or
claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be
entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the preparation therefor.

10.3 WAIVER, ETC. The failure of the Company or the Holder to at any time enforce any of
the provisions of this Purchase Option shall not be deemed or construed to be a waiver of any such
provision, nor to in any way affect the validity of this Purchase Option or any provision hereof or
the right of the Company or any Holder to thereafter enforce each and every provision of this
Purchase Option. No waiver of any breach, non-compliance or non-fulfillment of any of the
provisions of this Purchase Option shall be effective unless set forth in a written instrument
executed by the party or parties against whom or which enforcement of such waiver is sought; and no
waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a
waiver of any other or subsequent breach, non-compliance or non-fulfillment.

10.4 EXECUTION IN COUNTERPARTS. This Purchase Option may be executed in one or more
counterparts, and by the different parties hereto in separate counterparts, each of which shall be
deemed to be an original, but all of which taken together shall constitute one and the same
agreement, and shall become effective when one or more counterparts has been signed by each of the
parties hereto and delivered to each of the other parties hereto.

10.5 EXCHANGE AGREEMENT. As a condition of the Holder’s receipt and acceptance of this
Purchase Option, Holder agrees that, at any time prior to the complete exercise of this Purchase
Option by Holder, if the Company and FBW enter into an agreement (“Exchange Agreement”) pursuant to
which they agree that all outstanding Purchase Options will be exchanged for securities or cash or
a combination of both, then Holder shall agree to such exchange and become a party to the Exchange
Agreement.

10.6 UNDERLYING WARRANTS. At any time after exercise by the Holder of this Purchase
Option, the Holder may exchange its Warrants (with a $6.25 exercise price) for Public Warrants
(with a $5.00 exercise price) upon payment to the Company of the difference between the aggregate
exercise price of the Warrants being exchanged and the aggregate exercise price of the Pubic
Warrants for which the Warrants are being exchanged.

[REMAINDER OF PAGE DELIBERATELY LEFT BLANK]

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IN WITNESS WHEREOF, the Company has caused this Purchase Option to be signed by its duly authorized
officer as of the       day of                     , 2005.

INDIA GLOBALIZATION CAPITAL, INC.

By:

13

 

Form to be used to exercise Purchase Option:

India Globalization Capital, Inc.

4336 Montgomery Avenue

Bethesda, Maryland 20814

Date:                                        , 200     

The undersigned hereby elects irrevocably to exercise all or a portion of the within Purchase
Option and to purchase       Units of India Globalization Capital, Inc. and hereby makes payment of
$                     (at the rate of $                     per Unit) in payment of the Exercise Price pursuant
thereto. Please issue the Common Stock and Warrants as to which this Purchase Option is exercised
in accordance with the instructions given below.

OR

The undersigned hereby elects irrevocably to convert its right to purchase                      Units
purchasable under the within Purchase Option by surrender of the unexercised portion of the
attached Purchase Option (with a “Value” based of $                     based on a “Market Price” of $                    ).
Please issue the securities comprising the Units as to which this Purchase Option is exercised in
accordance with the instructions given below.

Signature

Signature Guaranteed

INSTRUCTIONS FOR REGISTRATION OF SECURITIES

			
	Name 	 	 

               (Print in Block Letters)

			
	Address 	 	 

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR
BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.

14

 

EXHIBIT 4.5

Form to be used to assign Purchase Option:

ASSIGNMENT

(To be executed by the registered Holder to effect a transfer of the within Purchase Option):

FOR VALUE RECEIVED,                                         does hereby sell, assign and
transfer unto                                          the right to purchase                      Units of India
Globalization Capital, Inc. (“Company”) evidenced by the within Purchase Option and does hereby
authorize the Company to transfer such right on the books of the Company.

Dated:                                        , 200     

Signature

Signature Guaranteed

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR
BY A FIRM HAVING MEMBERSHIP ON A REGISTERED NATIONAL SECURITIES EXCHANGE.exv10w4

 

EXHIBIT 10.4

INVESTMENT MANAGEMENT TRUST AGREEMENT

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

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

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

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

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

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

IT IS AGREED:

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

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

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

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

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

 

 

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

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

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

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

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

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

2.        AGREEMENTS AND COVENANTS OF THE COMPANY.

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

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

2

 

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

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

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

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

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

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

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

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

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

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

(f)      The other parties hereto or to anyone else for any action taken or omitted by it, or any action
suffered by it to be taken or omitted, in good faith and in the exercise of its own best judgment,
except for its gross negligence or willful misconduct. The Trustee may rely conclusively and shall
be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel
(including counsel chosen by the Trustee), statement, instrument, report or other paper or document
(not only as to its due execution and the validity and effectiveness of its provisions, but also as
to the truth and acceptability of any information therein contained) which is believed by the
Trustee, in good faith, to be genuine and to be signed or presented by the proper person or
persons. The Trustee need not investigate any fact or matter stated in
the document. The Trustee shall not be bound by any notice or demand, or any waiver, modification,
termination or rescission of this agreement or any of the terms hereof, unless evidenced by a
written instrument delivered to the Trustee signed by the proper party or parties and, if the
duties or rights of the Trustee are affected, unless it shall give its prior written consent
thereto;

3

 

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

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

4.        CERTAIN RIGHTS OF TRUSTEE.

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

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

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

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

5.        TERMINATION. This Agreement shall terminate as follows:

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

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

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

6.        MISCELLANEOUS.

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

4

 

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

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

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

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

if to the Trustee, to:

Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

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

if to the Company, to:

India Globalization Capital, Inc.

4336 Montgomery Avenue

Bethesda, Maryland 20814

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

in either case with a copy to:

Ferris, Baker Watts,
Incorporated

100 Light Street

Baltimore, MD 21202

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

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

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

5

 

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

[REMAINDER OF PAGE DELIBERATELY LEFT BLANK]

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:

Title:

INDIA GLOBALIZATION CAPITAL, INC.

By:

Name:                                                       

Chairman and Chief Executive Officer

7

 

EXHIBIT A

[LETTERHEAD OF COMPANY]

[INSERT DATE]

Continental Stock Transfer

& Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven Nelson

Re: TRUST ACCOUNT NO. _____________ TERMINATION LETTER

Gentlemen:

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

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

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

8

 

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

Very truly yours,

INDIA GLOBALIZATION CAPITAL, INC.

	 	 	 	 	 
	By: 	  	 	 	 
	 	 	Chief Executive Officer 	 
	 	  	 	 	 
	 	 	 	 
	By: 	  	 	 	 
	 	 	Chief Financial Officer 	 

9

 

EXHIBIT B

	 	 	 	 	 	 
	 	 	 	 	 	 
	 	AUTHORIZED INDIVIDUAL(S)

FOR TELEPHONE CALL BACK

	 	 	AUTHORIZED

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

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

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

	 	 	(212) 845-3200	 
	 	 	 	 	 	 

10

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