Document:

Unassociated Document

     

    [Form
      of
      Letter Agreement for
      Directors and Officers of Lambert’s Cove Acquisition Corporation]

     

     

    [date]

     

    Lambert’s
      Cove Acquisition Corporation

    817
      West
      Peachtree, Suite 550

    Atlanta,
      GA 30308

     

    UBS
      Securities LLC

    299
      Park
      Avenue

    New
      York,
      NY 10171

     

    Morgan
      Joseph & Co. Inc.

    600
      Fifth
      Avenue, 19th Floor

    New
      York,
      NY 10020

     

    
      	Re:	
              Initial
                Public Offering of Lambert’s Cove Acquisition
                Corporation

            

    

     

    Ladies
      and Gentlemen:

     

    This
      letter is being delivered to you in accordance with the Underwriting Agreement
      (the “Underwriting
      Agreement”)
      entered into by and among Lambert’s Cove Acquisition Corporation, a Delaware
      corporation (the “Company”),
      and
      UBS Securities LLC and Morgan Joseph & Co. Inc. as the representatives
      (collectively, the “Representatives”)
      of the
      underwriters named in Schedule A thereto (collectively, the “Underwriters”),
      relating to an underwritten initial public offering (the “IPO”)
      of the
      Company’s units (the “Units”),
      each
      composed of one share of the Company’s common stock, par value $0.0001 per share
      (the “Common
      Stock”),
      and
      one warrant, which is exercisable for one share of Common Stock (the
“Warrants”).
      Certain capitalized terms used herein are defined in Section 19
      hereof.

     

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

     

    1.  In
      the
      event that the Company fails to consummate a Business Combination within 24
      months (or 36 months if the Extended Period is approved by the Company’s
      stockholders) from the date of the Company’s final prospectus relating to the
      IPO (the “Prospectus”),
      the
      undersigned will take all reasonable actions within his or her power to (a)
      cause the Trust Account to be liquidated and distributed to the holders of
      the
      IPO Shares as promptly as practicable and (b) cause the Company to liquidate
      as
      promptly as practicable (the earliest date on which the conditions in clauses
      (a) and (b) are both satisfied being the “Liquidation
      Date”),
      including taking all action reasonably within his or her power to limit the
      Company’s activities to winding up its affairs and to dissolving the Company.
      The undersigned agrees that in connection with any cessation of corporate
      existence of the Company on [●], 2010 (or [●], 2011 if the Extended Period
      is approved by the Company’s stockholders), it will cause the Company to adopt a
      plan of dissolution and distribution in accordance with Section 281(b) of the
      General Corporation Law of the State of Delaware or any successor provision
      thereto.

     

    2.  Neither
      the undersigned nor any Affiliate of the undersigned will be entitled to
      receive, and no such person will accept, any finder’s fee, consulting fee,
      reimbursement or cash payment or any other form of compensation, including
      the
      issuance of the Company’s securities, from the Company for services rendered to
      the Company prior to or in connection with the consummation of a Business
      Combination, other than (subject to the following sentence) (a) repayment
      of that certain Promissory Note in the amount of $125,000 made to the Company
      by
      Lambert’s Cove Holdings, LLC, a Delaware limited liability company (the
“Sponsor”),
      to
      cover offering expenses; (b) a payment of an aggregate of $10,000 per month
      to
      the Sponsor, for office space and certain general and administrative services,
      including but not limited to receptionist, secretarial and general office
      services; (c) reimbursement for any out-of-pocket expenses or advances
      related to: (i) the IPO or (ii) identifying, investigating and
      consummating a Business Combination; or (d) other expenses or advances that
      the
      Company is permitted to incur. The undersigned acknowledges that the Company’s
      Audit Committee (or the Company’s Board of Directors, with any interested
      director abstaining from such review and approval, in the case of a director
      who
      is a member of the Company’s Audit Committee) will review and approve all
      payments made to the undersigned, the Sponsor, the Company’s officers and
      directors and the Company’s or their Affiliates, other than the $10,000 per
      month payment described in the immediately preceding sentence.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.  Neither
      the undersigned, nor any Affiliate of the undersigned, will accept a finder’s
      fee, consulting fee or any other compensation or fees from any person or other
      entity in connection with a Business Combination, other than compensation or
      fees that may be received for any services provided following such Business
      Combination.

     

    4.  The
      undersigned acknowledges and agrees that the Company will not enter into
      any transaction with any of the Company’s officers or directors or any of the
      Company’s or their respective Affiliates, including loans by the Company’s
      officers and directors and any forgiveness of loans, (a) without the prior
      approval by a majority of the Company’s disinterested, “independent” (as defined
      below) directors or the members of the Company’s Board of Directors who do not
      have an interest in the transaction, in either case who had access, at the
      Company’s expense, to the Company’s attorneys or independent legal counsel, and
      (b) unless the Company’s disinterested, “independent” directors determine
      that the terms of such transaction are no less favorable to the Company than
      those that would be available to the Company with respect to such a transaction
      from unaffiliated third parties. As used herein “independent” means a director
      who qualifies as (a) an “independent director” under Section 121 of
      the American Stock Exchange’s “AMEX” Company Guide and (b) independent
      under Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

     

    5.  In
      order
      to minimize potential conflicts of interest which may arise from multiple
      affiliations, the undersigned agrees to present to the Company for its
      consideration, prior to presentation to any other person or entity, any suitable
      opportunity to acquire an operating business, until the earlier of the
      consummation by the Company of a Business Combination, the liquidation of the
      Company or until such time as the undersigned ceases to be an officer or
      director of the Company, subject to any pre-existing fiduciary and contractual
      obligations the undersigned might have.

     

    6.  The
      undersigned acknowledges and agrees that the Company will not consummate a
      Business Combination with a Target Business that is affiliated with the Sponsor,
      the Company’s directors or officers or any Existing Holder or any of the
      Company’s or their Affiliates unless the Company obtains an opinion from an
      unaffiliated, independent investment banking firm, which is a member of the
      Financial Industry Regulatory Authority (the “FINRA”),
      and
      is reasonably acceptable to the Representatives, that such Business Combination
      is fair to the Company’s stockholders from a financial point of
      view.

     

    7.  The
      undersigned will escrow any and all of (A) the Founders Units, Founders Shares
      and Founders Warrants (including the shares
      of
      Common Stock to
      be
      issued upon the exercise of the Founders Warrants) beneficially owned by him
      or
      her until one year after the consummation by the Company of a Business
      Combination and (B) the Insider Warrants (including the shares of Common Stock
      to be issued upon exercise of the Insider Warrants) beneficially owned by him
      or
      her until 30 days after the consummation by the Company of a Business
      Combination subject to the terms of an Escrow Agreement which the Company will
      enter into with the Sponsor and an escrow agent acceptable to the
      Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    8.  The
      undersigned agrees not to resign as [Chairman of the Board of Directors]
      [President, Chief Executive Officer and Director] [Lead Director] [other
      offices] [Director] until the earlier of the consummation by the Company of
      a
      Business Combination or the Liquidation Date. The undersigned’s biographical and
      conflicts of interest information furnished to the Company is true and accurate
      in all respects, does not omit any material information with respect to the
      undersigned’s background or conflicts of interest and contains all of the
      information required to be disclosed pursuant to Section 401 of Regulation
      S-K,
      promulgated under the Securities Act of 1933, as amended. The undersigned’s
      questionnaire(s) furnished to the Company and the Underwriters is true and
      accurate in all respects. The undersigned represents and warrants
      that:

     

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

     

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

     

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

     

    9.  The
      undersigned hereby agrees to not propose, or vote in favor of, (i) an
      amendment to Article Sixth of the Company’s Amended and Restated
      Certificate of Incorporation or (ii) an amendment to the Company’s Amended
      and Restated Certificate of Incorporation to extend the Company’s corporate
      existence beyond [•], 2010, except in the case of clause (ii) that (A) the
      Company shall submit to its stockholders a proposal to amend its Amended and
      Restated Certificate of Incorporation to extend the Company’s corporate
      existence to [•], 2011 in connection with the Company submitting the Extended
      Period to the Company’s stockholders for approval and (B) the Company shall
      submit to its stockholders a proposal to amend its Amended and Restated
      Certificate of Incorporation to provide for the Company’s perpetual existence in
      connection with the Company submitting a Business Combination to the Company’s
      stockholders for approval. In connection with any vote of the Company’s
      stockholders on the proposals referred to in clauses (A) and (B) above, the
      undersigned will vote any Founders Shares owned directly or indirectly by him
      or
      her in accordance with the majority of the shares of Common Stock voted by
      the
      Company’s Public Stockholders in connection with the vote on any such proposal,
      and all shares of Common Stock that he or she may acquire in or following the
      IPO in favor of any such proposal. This Section may not be modified or amended
      under any circumstances.

     

    10.  The
      undersigned has full right and power, without violating any agreement by which
      he or she is bound (including, without limitation, any non-competition or
      non-solicitation agreement with any employer or former employer), to enter
      into
      and perform under this letter agreement and serve as [Chairman of the Board
      of
      Directors] [President, Chief Executive Officer and Director] [Lead Director]
      [other offices] [Director], and hereby consents to being named in the
      Registration Statement as a[n] [officer] [director] of the Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    11.  If
      the
      Company seeks approval of its stockholders of either the Extended Period or a
      Business Combination, the undersigned will:

     

    (a)  vote
      any
      Founders Shares owned directly or indirectly by him or her in accordance with
      the majority of the shares of Common Stock voted by the Company’s Public
      Stockholders in connection with the vote on the Extended Period or any Business
      Combination, as applicable; and

     

    (b)  vote
      all
      shares of Common Stock that he or she may acquire in or following the IPO in
      favor of the Extended Period or the Business Combination, as
      applicable.

     

    In
      addition, the undersigned waives his or her right to exercise redemption rights
      with respect to any shares of Common Stock owned or to be owned by the
      undersigned, directly or indirectly, and agrees that he or she will not seek
      redemption with respect to such shares in connection with any vote to approve
      the Extended Period or a Business Combination.

     

    12.  The
      undersigned hereby waives any and all right, title, interest or claim of any
      kind in or to any distributions of the Trust Account, or to any other amounts
      distributed in connection with a liquidating distribution of the Company, with
      respect to his or her Founders Shares and the shares of Common Stock underlying
      the Founders Warrants or the Insider Warrants (any “Claim”),
      and
      hereby waives any Claim the undersigned may have in the future as a result
      of,
      or arising out of, any contracts or agreements with the Company and will not
      seek recourse against the Trust Account for any reason whatsoever; provided
      that
      the foregoing shall not apply to any IPO Shares acquired by the undersigned.
      The
      undersigned hereby agrees that the Company shall be entitled to reimbursement
      from the undersigned for any distribution of the Trust Account or any other
      amounts distributed by the Company in connection with a liquidating distribution
      received by the undersigned with respect to his or her Founders Shares or the
      shares of Common Stock underlying the Founders Warrants or the Insider
      Warrants.

     

    13.  The
      undersigned agrees to indemnify and hold harmless the Company, jointly and
      severally with the Sponsor and [Mark A. Pelson, the Company’s Chairman of the
      Board of Directors] [Jeffrey C. Levy, the Company’s President and Chief
      Executive Officer], against any and all losses, liabilities, claims, damages
      and
      expenses whatsoever (including, but not limited to, any and all legal or other
      expenses reasonably incurred in investigating, preparing or defending against
      any litigation, whether pending or threatened, or any claim whatsoever)
      (collectively, “Damages”)
      to
      which the Company may become subject, but only if, and to the extent (a) the
      claims reduce the amounts in the Trust Account available for payment to holders
      of the IPO Shares in the event of a liquidation of the Trust Account and (b)
      the
      claims are made (i) by a vendor or service provider for services rendered,
      or
      products sold, to the Company; (ii) by a creditor; or (iii) by a prospective
      Target Business arising out of any negotiations, contracts or agreements with
      the Company, provided that such indemnity shall not apply to any amounts claimed
      owed to a third party, including a Target Business, who executed a waiver of
      any
      right, title, interest or claim of any kind in or to the Trust Account, or
      as to
      any claims under the Company’s obligation to indemnify the Underwriters against
      certain liabilities, including liabilities under the Securities Act of 1933,
      as
      amended. In the case of the Company’s dissolution and liquidation, the
      undersigned understands that the Company expects that all costs and expenses
      associated with implementing the Company’s plan of distribution, as well as
      payments to any creditors, will be funded from amounts remaining out of the
      $50,000 of proceeds from the IPO held outside the Trust Account and from the
      up
      to $2.5 million in interest income on the balance of the Trust Account that
      will
      be released to the Company to fund its working capital requirements. Should
      the
      aforementioned funds not be sufficient, the undersigned hereby agrees to
      reimburse the Company for its out-of-pocket costs associated with its
      dissolution and liquidation, excluding any special, indirect or consequential
      costs, such as litigation, pertaining to the dissolution and liquidation and
      agrees not to seek repayment for such costs. The undersigned hereby represents
      and warrants to the Company that it is an accredited investor as such term
      is
      defined in Regulation D under the Securities Act of 1933, as
      amended.1

     

     

    
      

    

    1
      This
      section applies only to Messrs. Pelson and Levy.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    14.  The
      undersigned authorizes any employer, financial institution, or consumer credit
      reporting agency to release to the Underwriters and its legal representatives
      or
      agents (including any investigative search firm retained by the Underwriters)
      any information they may have about the undersigned’s background and finances
      (“Information”).
      Neither the Underwriters nor its agents shall be violating the undersigned’s
      right of privacy in any manner in requesting and obtaining the Information
      and
      the undersigned hereby releases them from liability for any damage whatsoever
      in
      that connection.

     

    15.  The
      undersigned acknowledges and understands that the Company and the Underwriters
      will rely upon the agreements, representations and warranties set forth herein
      in proceeding with the IPO. 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 shall be binding on the undersigned and such person’s
      respective successors, heirs, personal representatives and assigns. This letter
      agreement shall terminate on the earlier of (a) the consummation of a Business
      Combination and (b) the Liquidation Date; provided that such termination shall
      not relieve the undersigned from liability for any breach of this agreement
      prior to its termination.

     

    17.  This
      letter agreement shall be governed by and interpreted and construed in
      accordance with the laws of the State of New York applicable to contracts formed
      and to be performed entirely within the State of New York, without regard to
      the
      conflicts of law provisions thereof to the extent such principles or rules
      would
      require or permit the application of the laws of another
      jurisdiction.

     

    18.  No
      term
      or provision of this letter agreement may be amended, changed, waived, altered
      or modified except by written instrument executed and delivered by the party
      against whom such amendment, change, waiver, alteration or modification is
      to be
      enforced.

     

    19.  As
      used
      herein:

     

    
      	
            	l	
              “Affiliate”
                shall mean, with respect to a specified person, any member of the
                family
                of the person specified or any entity or person that directly or
                indirectly controls is controlled by or is under common control with
                the
                person specified.

            

    

     

    
      	
            	l	
              “Business
                Combination”
                shall mean the Company’s acquisition through a merger, capital stock
                exchange, asset or stock acquisition, exchangeable share transaction,
                reorganization, joint venture or other similar business combination
                of one
                or more Target Businesses with a fair market value of at least 80.0%
                of
                the Company’s net assets held in the Trust Account (exclusive of taxes
                payable by the Company and the Underwriters’ deferred underwriting
                discounts and commissions held in the Trust Account) at the time
                the
                Company enters into a definitive agreement providing for the Business
                Combination; the Company will proceed with a Business Combination
                only if:
                (i) a majority of the shares of Common Stock voted by the Public
                Stockholders are voted in favor of the Business Combination, (ii)
                Public
                Stockholders owning no more than one share less than 40.0% of the
                IPO
                Shares both vote against the proposed Business Combination, or the
                Extended Period, as the case may be, and exercise their redemption
                rights,
                on a cumulative basis and (iii) a majority of the shares of Common
                Stock
                outstanding have approved an amendment to the Company’s Amended and
                Restated Certificate of Incorporation to provide for perpetual
                existence.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
            	l	
              “Existing
                Holder”
                shall mean any holder of the Company’s securities immediately prior to the
                completion of the IPO.

            

    

     

    
      	
            	l	
              “Extended
                Period”
                shall mean the 12 month extension to the 24 month time period within
                which
                the Company must complete a Business Combination; the Company will
                extend
                the period of time to 36 months only if: (i) the Company has entered
                into
                a definitive agreement with respect to a Business Combination within
                24
                months from the date of the Prospectus; (ii) a majority of the shares
                of
                Common Stock voted by the Public Stockholders are voted in favor
                of the
                Extended Period; (iii) Public Stockholders owning no more than one
                share
                less than 40.0% of the IPO Shares both exercise their redemption
                rights
                and vote against the Extended Period; and (iv) a majority of the
                shares of
                Common Stock outstanding have approved an amendment to the Company’s
                Amended and Restated Certificate of Incorporation extending the Company’s
                corporate life to 36 months from the date of the
                Prospectus.

            

    

     

    
      	
            	l	
              “Founders
                Units”
                shall mean the 2,875,000 units purchased from the Company by the
                Sponsor
                on March 11, 2008 (up to 375,000 of which Founders Units are subject
                to
                forfeiture by the Sponsor to the extent that the Underwriters do
                not
                exercise their over-allotment option) for a purchase price of $25,000,
                or
                approximately $0.009 per Founders Unit. Each Founders Unit consists
                of one
                share of Common Stock (each a “Founders
                Share”)
                and one warrant to purchase one share of Common Stock (each a
                “Founders
                Warrant”).

            

    

     

    
      	
            	l	
              “Insider
                Warrants”
                shall mean the 3,050,000 warrants the Sponsor has committed to purchase
                at
                a price of $1.00 per warrant for an aggregate purchase price of $3,050,000
                in a private placement that will occur immediately prior to the date
                of
                the Prospectus.

            

    

     

    
      	
            	l	
              “IPO
                Shares”
                shall mean the shares of Common Stock underlying the Units issued
                in the
                IPO.

            

    

     

    
      	
            	l	
              “Public
                Stockholders”
                shall mean purchasers of Common Stock in the IPO or in the secondary
                market, including any of the Company’s officers or directors or their
                Affiliates, including the undersigned, to the extent that they purchase
                or
                acquire Common Stock in the IPO or in the secondary
                market.

            

    

     

    
      	
            	l	
              “Registration
                Statement”
                shall mean the Company’ Registration Statement on Form S-1 (File No.
                333-149812), as amended.

            

    

     

    
      	
            	l	
              “Target
                Business”
                shall mean one or more operating businesses or assets, which, after
                completion of the IPO, the Company may target for a Business
                Combination.

            

    

     

    
      	
            	l	
              “Trust
                Account”
                shall mean the trust account established under the Investment Management
                Trust Agreement, dated as of [________], 2008, by and between the
                Company
                and Continental Stock Transfer & Trust
                Company.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      	Accepted
              and
              agreed:	 	 	 
	 	 	 	 
	LAMBERT’S COVE
              ACQUISITION CORPORATION	 	 	 
	 	 	 	 
	  	 	 	 
	By:	 	 	 	 
	 	
              
Name:
	 	 	
            
	 	Title:	 	 	 

    

     

    
      
        
        

      

      
        7____________,
      2008

    

    Lambert's
      Cove Holdings, LLC

    817
      West
      Peachtree, Suite 550

    Atlanta,
      GA 30308

    

    
      	
            	RE:	
              LAMBERT’S
                COVE ACQUISITION CORPORATION

            

    

    

    Gentlemen:

    

    This
      letter will confirm our agreement, that commencing on the effective date
      (“Effective Date”) of the registration statement (“Registration Statement”) of
      the initial public offering (“IPO”) of the securities of Lambert’s Cove
      Acquisition Corporation (the “Company”) and continuing until the earlier to
      occur of: (i) the consummation of a Business Combination (as described in the
      Registration Statement) and (iii) the date on which we determine to dissolve
      and
      liquidate our trust account as part of our plan of dissolution and liquidation
      pursuant to the Company’s Amended and Restated Certificate of Incorporation,
      Lambert’s Cove Acquisition Holdings LLC shall make available to the Company
      certain general and administrative services, including but not limited to
      receptionist, secretarial and general office services. In exchange therefore,
      the Company shall pay Lambert’s Cove Acquisition Holdings LLC the sum of $10,000
      per month on the Effective Date and continuing monthly thereafter.

     

    
      	 	 	 
	 	Very truly yours, 
	 	 
	 	LAMBERT’S
              COVE
              ACQUISITION CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title:

    

     

    
      	Accepted
              and
              agreed:	 	 	 
	LAMBERT’S COVE HOLDINGS,
              LLC 	 	 	 
	 	 	 	 
	  	 	 	 
	By:	 	 	 	 
	 	
              
Name:
	 	 	
            
	 	Title:

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