STOCK ESCROW AGREEMENT
STOCK
ESCROW AGREEMENT, dated as of __________, 2006 (the “Agreement”) by and among
Energy Infrastructure Acquisition Corp., a Delaware corporation (“Company”), the
undersigned parties listed as Initial Stockholders on the signature page hereto
(collectively, the “Initial Stockholders”) and Continental Stock Transfer &
Trust Company, a New York corporation (“Escrow Agent”).
WHEREAS,
the Company has entered into an Underwriting Agreement, dated ________, 2006
(“Underwriting Agreement”) with Maxim Group LLC (“Maxim”) acting as
representative of the several underwriters (collectively, the “Underwriters”),
pursuant to which, among other matters, the Underwriters have agreed to purchase
15,000,000 units (not including the underwriters’ over-allotment option)
(“Units”) of the Company. Each Unit consists of one share of the Company’s
Common Stock, par value $.0001 per share, and one warrant (“Warrant”), each
Warrant to purchase one share of Common Stock, all as more fully described
in
the Company’s definitive Prospectus, dated _______, 2006 (“Prospectus”)
comprising part of the Company’s Registration Statement on Form S-1 (File No.
_________) under the Securities Act of 1933, as amended (“Registration
Statement”), declared effective on __________, 2006 (“Effective
Date”).
WHEREAS,
the Initial Stockholders have agreed as a condition of the Underwriters’
obligation to purchase the Units pursuant to the Underwriting Agreement and
to
offer them to the public to deposit all of their shares of Common Stock of
the
Company, as set forth opposite their respective names in Exhibit A attached
hereto (collectively “Escrow Shares”), in escrow as hereinafter
provided.
WHEREAS,
the Company and the Initial Stockholders desire that the Escrow Agent accept
the
Escrow Shares, in escrow, to be held and disbursed as hereinafter
provided.
IT
IS
AGREED:
1. Appointment
of Escrow Agent.
The
Company and the Initial Stockholders hereby appoint the Escrow Agent to act
in
accordance with and subject to the terms of this Agreement and the Escrow Agent
hereby accepts such appointment and agrees to act in accordance with and subject
to such terms.
2. Deposit
of Escrow Shares.
On or
before the Effective Date, each of the Initial Stockholders shall deliver to
the
Escrow Agent certificates representing his or her respective Escrow Shares,
to
be held and disbursed subject to the terms and conditions of this Agreement.
Each Initial Stockholder acknowledges that the certificate representing his
or
her Escrow Shares is legended to reflect the deposit of such Escrow Shares
under
this Agreement.
3. Disbursement
of the Escrow Shares.
3.1. General.
Except
as set forth herein and in Section 3.2 below, the Escrow Agent shall hold the
Escrow Shares until the third anniversary of the Effective Date (“Escrow
Period”), on which date it shall, upon written instructions from each Initial
Stockholder, disburse each of the Initial Stockholder’s Escrow Shares to such
Initial Stockholder; provided, however, that if the Escrow Agent is notified
by
the Company pursuant to Section 6.7 hereof that the Company is being liquidated
at any time during the Escrow Period, then the Escrow Agent shall promptly
destroy the certificates representing the Escrow Shares; provided further,
that
if, after the Company consummates a Business Combination (as such term is
defined in the Registration Statement), it (or the surviving entity)
subsequently consummates a liquidation, merger, stock exchange or other similar
transaction which results in all of its stockholders of such entity having
the
right to exchange their shares of Common Stock for cash, securities or other
property, then the Escrow Agent will, upon consummation of such transaction,
release the Escrow Shares to the Initial Stockholders so that they can similarly
participate. The Escrow Agent shall have no further duties hereunder after
the
disbursement or destruction of the Escrow Shares in accordance with this Section
3.
3.2. Upon
written instructions from the Company advising that a Business Combination
has
been consummated and that one or more of the public stockholders has determined
to exercise the right to redeem their shares for cash described in the
Registration Statement, the Escrow Agent will release and deliver to the
Company
for cancellation on a pro rata basis certificates representing that number
of
Escrow Shares (not to exceed [_____] in the aggregate) which equals the dollar
amount of the trust account described in the Registration Statement (exclusive
of interest) payable to redeeming stockholders above $9.90
per
share and dividing it by $10.00 (the value attributed to the Escrow Shares
for
purposes of this calculation). By way of illustration, for each 1,000 shares
redeemed, up to [_______] shares, [__]
Escrow
Shares will be surrendered for cancellation. Such instructions set forth
both
the number of shares the Company is redeeming and the number of Escrow Shares
to
be delivered to the Company for cancellation.
4. Rights
of Initial Stockholders in Escrow Shares.
4.1. Voting
Rights as a Stockholder.
Subject
to the terms of the Insider Letter described in Section 4.4 hereof and except
as
herein provided, the Initial Stockholders shall retain all of their rights
as
stockholders of the Company during the Escrow Period, including, without
limitation, the right to vote such shares.
4.2. Dividends
and Other Distributions in Respect of the Escrow Shares.
During
the Escrow Period, all dividends payable in cash with respect to the Escrow
Shares shall be paid to the Initial Stockholders, but all dividends payable
in
stock or other non-cash property (“Non-Cash Dividends”) shall be delivered to
the Escrow Agent to hold in accordance with the terms hereof. As used herein,
the term “Escrow Shares” shall be deemed to include the Non-Cash Dividends
distributed thereon, if any.
4.3. Restrictions
on Transfer.
Except
as set forth in Section 3.2 during the Escrow Period, no sale, transfer or
other
disposition may be made of any or all of the Escrow Shares except (i) by gift
to
a member of Initial Stockholder’s immediate family or to a trust or other
entity, the beneficiary of which is an Initial Stockholder or a member of an
Initial Stockholder’s immediate family, (ii) by virtue of the laws of descent
and distribution upon death of any Initial Stockholder, or (iii) pursuant to
a
qualified domestic relations order; provided, however, that such permissive
transfers may be implemented only upon the respective transferee’s written
agreement to be bound by the terms and conditions of this Agreement and of
the
Insider Letter signed by the Initial Stockholder transferring the Escrow Shares.
During the Escrow Period, the Initial Stockholders shall not pledge or grant
a
security interest in the Escrow Shares or grant a security interest in their
rights under this Agreement.
2
4.4. Insider
Letters.
Each of
the Initial Stockholders has executed a letter agreement with Maxim and the
Company, dated as of the Effective Date, and which is filed as an exhibit to
the
Registration Statement (“Insider Letter”), respecting the rights and obligations
of such Initial Stockholder in certain events, including, but not limited to,
the liquidation of the Company.
5. Concerning
the Escrow Agent.
5.1. Good
Faith Reliance.
The
Escrow Agent shall not be liable for any action taken or omitted by it in good
faith and in the exercise of its own best judgment, and 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 Escrow Agent),
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 Escrow Agent to be genuine and to be signed or presented by
the
proper person or persons. The Escrow Agent shall not be bound by any notice
or
demand, or any waiver, modification, termination or rescission of this Agreement
unless evidenced by a writing delivered to the Escrow Agent signed by the proper
party or parties and, if the duties or rights of the Escrow Agent are affected,
unless it shall have given its prior written consent thereto.
5.2. Indemnification.
The
Escrow Agent shall be indemnified and held harmless by the Company from and
against any expenses, including counsel fees and disbursements, or loss suffered
by the Escrow Agent in connection with any action, suit or other proceeding
involving any claim which in any way, directly or indirectly, arises out of
or
relates to this Agreement, the services of the Escrow Agent hereunder, or the
Escrow Shares held by it hereunder, other than expenses or losses arising from
the gross negligence or willful misconduct of the Escrow Agent. Promptly after
the receipt by the Escrow Agent of notice of any demand or claim or the
commencement of any action, suit or proceeding, the Escrow Agent shall notify
the other parties hereto in writing. In the event of the receipt of such notice,
the Escrow Agent, in its sole discretion, may commence an action in the nature
of interpleader in an appropriate court to determine ownership or disposition
of
the Escrow Shares or it may deposit the Escrow Shares with the clerk of any
appropriate court or it may retain the Escrow Shares pending receipt of a final,
non appealable order of a court having jurisdiction over all of the parties
hereto directing to whom and under what circumstances the Escrow Shares are
to
be disbursed and delivered. The provisions of this Section 5.2 shall survive
in
the event the Escrow Agent resigns or is discharged pursuant to Section 5.5
or
5.6 below.
5.3. Compensation.
The
Escrow Agent shall be entitled to reasonable compen-sation from the Company
for
all services rendered by it hereunder, as set forth on Exhibit B hereto.
The Escrow Agent shall also be entitled to reimbursement from the Company for
all expenses paid or incurred by it in the administration of its duties
hereunder including, but not limited to, all counsel, advisors’ and agents’ fees
and disbursements and all taxes or other governmental charges.
3
5.4. Further
Assurances.
From
time to time on and after the date hereof, the Company and the Initial
Stockholders shall deliver or cause to be delivered to the Escrow Agent such
further documents and instruments and shall do or cause to be done such further
acts as the Escrow Agent shall reasonably request to carry out more effectively
the provisions and purposes of this Agreement, to evidence compliance herewith
or to assure itself that it is protected in acting hereunder.
5.5. Resignation.
The
Escrow Agent may resign at any time and be discharged from its duties as escrow
agent hereunder by its giving the other parties hereto written notice and such
resignation shall become effective as hereinafter provided. Such resignation
shall become effective at such time that the Escrow Agent shall turn over to
a
successor escrow agent appointed by the Company and approved by Maxim, the
Escrow Shares held hereunder. If no new escrow agent is so appointed within
the
60 day period following the giving of such notice of resignation, the Escrow
Agent may deposit the Escrow Shares with any court it deems
appropriate.
5.6. Discharge
of Escrow Agent.
The
Escrow Agent shall resign and be discharged from its duties as escrow agent
hereunder if so requested in writing at any time by the other parties hereto,
jointly, provided, however, that such resignation shall become effective only
upon acceptance of appointment by a successor escrow agent as provided in
Section 5.5.
5.7. Liability.
Notwithstanding anything herein to the contrary, the Escrow Agent shall not
be
relieved from liability hereunder for its own gross negligence or its own
willful misconduct.
6. Miscellaneous.
6.1. Governing
Law.
This
Agreement shall for all purposes be deemed to be made under and shall be
construed in accordance with the laws of the State of New York. Each of the
parties hereby agrees that any action, proceeding or claim against it arising
out of or relating in any way to this Agreement shall be brought and enforced
in
the courts of the State of New York or the United States District Court for
the
Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. Each of the parties hereby waives any
objection to such exclusive jurisdiction and that such courts represent an
inconvenient forum.
6.2. Third
Party Beneficiaries.
Each of
the Initial Stockholders hereby acknowledges that the Underwriters are third
party beneficiaries of this Agreement and this Agreement may not be modified
or
changed without the prior written consent of Maxim.
6.3. Entire
Agreement.
This
Agreement contains the entire agreement of the parties hereto with respect
to
the subject matter hereof and, except as expressly provided herein, may not
be
changed or modified except by an instrument in writing signed by the party
to
the charged.
6.4. Headings.
The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation thereof.
4
6.5. Binding
Effect.
This
Agreement shall be binding upon and inure to the benefit of the respective
parties hereto and their legal representatives, successors and
assigns.
6.6. Notices.
Any
notice or other communication required or which may be given hereunder shall
be
in writing and either be delivered personally or by private national courier
service, or be mailed, certified or registered mail, return receipt requested,
postage prepaid, and shall be deemed given when so delivered personally or,
if
sent by private national courier service, on the next business day after
delivery to the courier, or, if mailed, two business days after the date of
mailing, as follows:
If
to the
Company, to:
c/x
Xxxxxxxx & Xxxxx, P.C.
000
Xxxxxxx Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attn:
Xxxxxx Xxxxxxxx
If
to a
Stockholder, to his address set forth in Exhibit A.
and
if to
the Escrow Agent, to:
Continental
Stock Transfer & Trust Company
00
Xxxxxxx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attn:
A
copy of
any notice sent hereunder shall be sent to:
Ellenoff,
Xxxxxxxx & Schole LLP
000
Xxxxxxxxx Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attn:
Xxxxxxxx X. Xxxxxxxx, Esq.
and:
Maxim
Group LLC
000
Xxxxxxxxx Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attn:
Xxxxxxxx X. Xxxxxx
and:
Loeb
& Loeb LLP
000
Xxxx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Attn:
Xxxxxxxx X. Xxxxxxxx, Esq.
5
The
parties may change the persons and addresses to which the notices or other
communications are to be sent by giving written notice to any such change in
the
manner provided herein for giving notice.
6.7. Liquidation
of Company.
The
Company shall give the Escrow Agent written notification of the liquidation
and
dissolution of the Company in the event that the Company fails to consummate
a
Business Combination within the time period(s) specified in the
Prospectus.
[remainder
of document continued on next page]
6
WITNESS
the execution of this Agreement as of the date first above written.
ENERGY
INFRASRUCTURE ACQUISITION CORP.
By:
_________________________________________________
Xxxxxx
Xxxxxxxx, Chief Operating Officer and President
INITIAL
STOCKHOLDERS:
___________________________
Xxxx
Xxxxxxxxxx
___________________________
Xxxxxx
Xxxxxxxxxxxxx
__________________________
Xxxxxx
Xxxxxxxx
___________________________
Andreas
Theotokis
___________________________
Xxxxxxxx
Xxxxxx
___________________________
Xxxxx
Xxxx
CONTINENTAL
STOCK TRANSFER
&
TRUST COMPANY
By:________________________________
Name:
Title:
7
EXHIBIT
A
|
Name
and Address of Initial
Stockholder
|
Number
of
Shares
|
Stock
Certificate
Number
|
|
Xxxx
Xxxxxxxxxx
|
||
|
Xxxxxx
Xxxxxxxxxxxxx
|
||
|
Xxxxxx
Xxxxxxxx
|
||
|
Andreas
Theotokis
|
||
|
Xxxxxxxx
Xxxxxx
|
||
|
Xxxxx
Xxxx
|
8
EXHIBIT
B
Escrow
Agent Fees
$1,800
annually for acting agent escrow fee.
Initial
acceptance fee and first year agent fee to be paid at closing.
9
