EXHIBIT 10.12 INVESTMENT MANAGEMENT TRUST AGREEMENT

 

                                                                   EXHIBIT 10.12

 

 

                      INVESTMENT MANAGEMENT TRUST AGREEMENT

 

 

      This  Agreement  is made as of  __________,  2005 by and  between  Viceroy

Acquisition  Corporation (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,  The Shemano Group,  Inc. (the "Shemano  Group") is acting as the

representative of the underwriters in the IPO; and

 

      WHEREAS,  as described in the  Company's  Registration  Statement,  and in

accordance with the Company's Amended and Restated Certificate of Incorporation,

$146,800,000 of the gross proceeds of the IPO  ($168,820,000 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 and the

holders of the Company's common stock, par value $.0001 per share, issued in the

IPO as  hereinafter  provided  and in the  event the  Units  are  registered  in

Colorado,  pursuant to Section  11-51-302(6) of the Colorado Revised Statutes. A

copy of the  Colorado  Statute is  attached  hereto and made a part  hereof (the

amount  to be  delivered  to the  Trustee  will be  referred  to  herein  as the

"Property";  the  stockholders  for whose  benefit  the  Trustee  shall hold the

Property  will be  referred  to as the  "Public  Stockholders,"  and the  Public

Stockholders   and  the   Company   will  be   referred   to   together  as  the

"Beneficiaries"); and

 

      WHEREAS,  the Company and the Trustee  desire to enter into this Agreement

to set forth the terms and  conditions  pursuant to which the Trustee shall hold

the Property;

 

      IT IS AGREED:

 

      1.    Agreements  and Covenants of Trustee.  The Trustee hereby agrees and

covenants to:

 

            (a)   Hold the Property in trust for the Beneficiaries in accordance

with the terms of this Agreement, including the terms of Section 11-51-302(6) of

the  Colorado   Statute,   in  a  segregated  trust  account  ("Trust  Account")

established by the Trustee at a branch of JPMorgan Chase NY Bank selected by the

Trustee;

 

            (b)   Manage,  supervise and administer the Trust Account subject to

the terms and conditions set forth herein;

 

            (c)   In a  timely  manner,  upon  the  written  instruction  of the

Company,  invest and reinvest the Property in any Government  Security or in any

open ended investment  company  registered  under the Investment  Company Act of

1940 that holds  itself out as a money  market fund  meeting the  conditions  of

paragraphs  (c)(2),  (c)(3)  and  (c)(4)  of Rule  2a-7  promulgated  under  the

Investment Company Act of 1940. 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 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;

 

 

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            (g)   Participate  in any  plan  or  proceeding  for  protecting  or

enforcing  any  right or  interest  arising  from the  Property  if, as and when

instructed by the Company to do so;

 

            (h)   Render to the Company and to the  Shemano  Group,  and to such

other person as the Company may instruct in writing,  monthly written statements

of the  activities of and amounts in the Trust Account  reflecting  all receipts

and disbursements of the Trust Account;

 

            (i)   If there is any income tax  obligation  relating to the income

of the Property in the Trust  Account,  then, at the written  instruction of the

Company,  the  Trustee  shall issue a check  directly to the taxing  authorities

designated  by the  Company,  out of the Property in the Trust  Account,  in the

amount indicated by the Company as owing to each such taxing authority; and

 

            (j)   Commence  liquidation  of the  Trust  Account  promptly  after

receipt  of and  only in  accordance  with the  terms of a letter  ("Termination

Letter"),  in a form  substantially  similar to that  attached  hereto as either

EXHIBIT A or EXHIBIT B, signed on behalf of the  Company by its Chief  Executive

Officer,  Executive  Vice  President or Chairman of the Board and  Secretary and

affirmed by the entire Board of Directors,  and complete the  liquidation of the

Trust Account and  distribute the Property in the Trust Account only as directed

in the Termination Letter and the other documents referred to therein; provided,

however,  that in the event that a  Termination  Letter has not been received by

____________,  2007 (or the date that is the six month anniversary of such date,

in the event that a letter of  intent,  agreement  in  principle  or  definitive

agreement  has been executed  prior to such date in  connection  with a Business

Combination (as defined in the Termination  Letter attached hereto as EXHIBIT A)

that has not been consummated by ____________, 2007), the Trust Account shall be

liquidated in accordance with the procedures set forth in the Termination Letter

attached  as  EXHIBIT  B to the  stockholders  of  record  on the  record  date;

provided,  further,  that the  record  date  shall be  within  ten (10)  days of

____________,  2007 (or the date that is the six month anniversary of such date,

in the event that a letter of  intent,  agreement  in  principle  or  definitive

agreement  has been executed  prior to such date in  connection  with a Business

Combination  that has not been  consummated by  ____________,  2007), or as soon

thereafter as is practicable.

 

      2.    Agreements  and Covenants of the Company.  The Company hereby agrees

and covenants to:

 

            (a)   Give all  instructions  to the Trustee  hereunder  in writing,

signed by the Company's  Chief  Executive  Officer,  Executive Vice President or

Chairman of the Board.  In  addition,  except with  respect to its duties  under

paragraph 1 (i) above,  the  Trustee  shall be entitled to rely on, and shall be

protected in relying on, any verbal or telephonic advice or instruction which it

in good faith believes to be given by any one of the persons authorized above to

give written instructions, provided that the Company shall promptly confirm such

instructions in writing;

 

            (b)   Hold the Trustee  harmless and  indemnify the Trustee from and

against,   any  and  all  expenses,   including   reasonable  counsel  fees  and

disbursements,  or loss suffered by the Trustee in  connection  with any action,

suit or other proceeding  brought against the Trustee involving any claim, or in

connection with any claim or demand which in any way arises out of or relates to

this Agreement,  the services of the Trustee  hereunder,  or the Property or any

income earned from  investment  of the Property,  except for expenses and losses

resulting from the Trustee's gross  negligence or willful  misconduct.  Promptly

after  the  receipt  by  the  Trustee  of  notice  of  demand  or  claim  or the

commencement  of any action,  suit or proceeding,  pursuant to which the Trustee

intends  to seek  indemnification  under  this  paragraph,  it shall  notify the

Company in writing of such claim  (hereinafter  referred to as the  "Indemnified

Claim").  The  Trustee  shall have the right to conduct  and manage the  defense

against such  Indemnified  Claim,  provided,  that the Trustee  shall obtain the

consent of the Company with respect to the  selection of counsel,  which consent

shall not be unreasonably  withheld.  The Company may participate in such action

with its own counsel; and

 

            (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 Account.  The Company shall not be responsible  for any

other fees or charges of the Trustee except as may be provided in paragraph 2(b)

hereof (it being  expressly  understood  that the Property  shall not be used to

make any payments to the Trustee under such paragraph).

 

 

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            (d)   Provide to the  Trustee  any letter of  intent,  agreement  in

principle or definitive  agreement that is executed prior to ____________,  2007

in connection with a Business Combination; and

 

            (e)   In  connection  with  any vote of the  Company's  stockholders

regarding  a Business  Combination,  provide  to the  Trustee  an  affidavit  or

certificate  of a firm regularly  engaged in the business of soliciting  proxies

and tabulating  stockholder votes (which firm may be the Trustee)  verifying the

vote of the Company's stockholders regarding such Business Combination.

 

 

      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  paragraph 1 hereof and the Trustee  shall have no  liability to any

party except for  liability