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Exhibit 10.18    
    

 
 

ADJUSTMENT ESCROW AGREEMENT    
    

        THIS ADJUSTMENT ESCROW AGREEMENT (this "Agreement") dated as of  
[                        ], 2006, is made by and among Aldabra Acquisition Corporation, a Delaware
corporation (the
"Buyer"), Great Lakes Dredge & Dock Holdings Corp., a Delaware corporation ("Holdco"), Madison
Dearborn Capital Partners IV, L.P., a Delaware limited partnership, solely in its capacity as Company Representative as set forth in the Merger Agreement (as defined below) (the
"Company Representative"), Terrapin Partners LLC, a Delaware limited liability company, solely in its capacity as Buyer Representative as set forth in
the Merger Agreement (as defined below) and [                        ,] as escrow agent (the "Escrow
Agent"). 

        The
Buyer, the Company Representative, the Buyer Representative, GLDD Acquisitions Corp., a Delaware corporation (the "Company"), Aldabra
Merger Sub, L.L.C., a Delaware limited liability company and a wholly-owned Subsidiary of the Buyer ("Merger Sub"), are parties to that certain
Agreement and Plan of Merger dated as of June 20, 2006 (as amended, modified and waived from time to time, the "Merger Agreement"), pursuant to
which, subject to the terms and conditions set forth therein, the Company shall merge with and into Merger Sub, with Merger Sub being the surviving corporation. Capitalized terms used, but not
otherwise defined, herein shall have the meaning set forth in the Merger Agreement. 

        Promptly
after the Closing, the Buyer is merging with and into a wholly-owned Subsidiary of Holdco, with such Subsidiary as the surviving company in such Merger and, upon completion of
such merger, each of the Adjustment Escrow Shares that was a share of Buyer Common Stock shall be converted into a share of Holdco Common Stock. 

        This
Agreement is the Adjustment Escrow Agreement referred to in the Merger Agreement. The execution and delivery of this Agreement by the Buyer, Holdco, the Company Representative, the
Buyer Representative and the Escrow Agent is a condition precedent to the Closing under the Merger Agreement. 

        [Pursuant
to the Merger Agreement, at the Effective Time, the Buyer shall deliver, the Adjustment Escrow Shares to the Escrow Agent issued in the name of the holders of
Company Common Stock for deposit into a separate escrow account.](1) Upon completion of the Holdco Merger referred to in the immediately foregoing sentence, Holdco shall deposit with the
Escrow Agent a number of shares of Holdco Common Stock equal to the Adjustment Escrow Shares issued in the name of the holders of Company Common Stock for deposit into a separate escrow account. The
separate escrow account established pursuant to the terms of this Agreement is referred to herein as the "Adjustment Escrow Account". The holders of
Company Common Stock shall deliver stock powers executed in blank in favor of [Buyer and/or](2) Holdco in the event any Give-Back Shares are to be delivered to
[Buyer and/or](3) Holdco for cancellation (as determined in accordance with the Merger Agreement). 

        NOW,
THEREFORE, in consideration of the agreements and understandings contemplated in the Merger Agreement and herein, the parties hereto agree as follows: 

        1.    Appointment of Escrow Agent.    [Buyer,](4) Holdco, the Company Representative and the
Buyer Representative hereby appoint and designate the Escrow Agent as the escrow agent for the purposes set forth in this Agreement, and the Escrow Agent hereby accepts such appointment under the
terms and conditions set forth in this Agreement. 

	(1)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(2)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(3)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(4)
	To
be deleted if Holdco Merger is to happen immediately after the Merger. 

 

        2.    Formation of Adjustment Escrow Account.    [At the Effective Time, the Buyer shall deposit the
Adjustment Escrow Shares with the Escrow Agent, issued in the name of the holders of Company Common Stock as of immediately prior to the Effective Time (with each holder to have issued a number of
Adjustment Escrow Shares equal to the Additional Per Share Merger Consideration) and upon receipt thereof, the Escrow Agent will acknowledge in writing to the Company Representative and the Buyer
Representative receipt of the Adjustment Escrow
Shares.](5) At the effective time of the Holdco Merger, Holdco shall deposit a number of shares of Holdco Common Stock with the Escrow Agent equal to the number of Adjustment Escrow
Shares, issued in the name of the holders of Company Common Stock as of immediately prior to the Effective Time (with each holder to have issued a number of such shares equal to the Additional Per
Share Merger Consideration) and upon receipt thereof, the Escrow Agent will acknowledge in writing to the Company Representative and the Buyer Representative receipt of such shares of Holdco Common
Stock (which thereafter shall, for all purposes of the Merger Agreement and this Agreement, be the Adjustment Escrow Shares). The Escrow Agent shall accept the Adjustment Escrow Shares and hereby
agrees to record and hold such shares in a safety deposit box. As referenced above, such separate escrow account established pursuant hereto is referred to as the Adjustment Escrow Account. The Escrow
Agent shall hold the Adjustment Escrow Shares in accordance with the provisions of this Agreement and shall not distribute the Adjustment Escrow Shares except in accordance with the express terms and
conditions of this Agreement. 

        3.    Payment of Adjustment Escrow Shares.    Within five (5) business days after the Closing Statement becomes
final and binding on the parties pursuant to Section 4D of the Merger Agreement (the "Adjustment Distribution Date"), the Buyer Representative
and the Company Representative shall deliver joint written instructions signed by the Buyer Representative and the Company Representative (a "Joint
Instruction") to the Escrow Agent to cause the Escrow Agent to deliver the Adjustment Escrow Shares to the holders of Company Common Stock (other than Dissenting Shares) as of
immediately prior to the Effective Time, with each such holder entitled to receive his, her or its portion of the Adjustment Escrow Shares equal to the Additional Per Share Merger Consideration.
Notwithstanding the foregoing, on the Adjustment Distribution Date, if (and only if) the Incremental Closing Merger Consideration is greater than the Incremental Merger Consideration as finally
determined pursuant to Section 4D of the Merger Agreement (such excess, the "Excess Amount"), then Buyer Representative and the Company
Representative shall deliver a Joint Instruction to the Escrow Agent to cause the Escrow Agent, (x) to deliver to [Buyer or, if the Holdco Merger has occurred,](6)
Holdco a number of Adjustment Escrow Shares equal to the Excess Amount and (y) to deliver any remaining Adjustment Escrow Shares to holders of Company Common Stock (other than Dissenting
Shares) as of immediately prior to the Effective Time, with each such holder entitled to receive the Additional Per Share Merger Consideration payable for each share of Company Common Stock held by
such holder immediately prior to the Effective Time. 

        4.    Adjustment Escrow Shares.    

        (a)    Voting.    Until the Adjustment Escrow Date, each of the holders of Company Capital Stock shall have the right
to exercise any voting or consent rights pertaining to the Adjustment Escrow Shares held in the Escrow Account in the name of such holder. The Escrow Agent shall not have any right to exercise any
such voting or consent rights. 

        (b)    Transferability.    Except as contemplated herein, no holder of Company Capital Stock may sell, transfer,
assign, pledge or otherwise dispose of (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) any interest in the Adjustment Escrow 

	(5)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(6)
	To
be deleted if Holdco Merger is to happen immediately after the Merger. 

2

 

Shares
at any time that such Adjustment Escrow Shares are held in escrow pursuant to this Agreement. 

        (c)    New Certificates.    If under any circumstance hereunder fewer than the total number of Adjustment Escrow
Shares represented by any certificate representing the Adjustment Escrow Shares are to be distributed to [Buyer or](7) Holdco for cancellation, [Buyer
or](8) Holdco, as applicable, shall deliver new certificates representing the number of Adjustment Escrow Shares not so distributed within five (5) business days after the Escrow
Agent's surrender of the certificate representing the distributed Adjustment Escrow Shares. 

        5.    Escrow Agent Obligations.    The Escrow Agent's sole obligation with respect to any distribution of Adjustment
Escrow Shares to the Buyer Representative shall be to (i) deliver the certificate representing such Adjustment Escrow Shares and any related stock transfer powers to the Buyer Representative or
the designated stock transfer agent of Holdco [or Buyer](9) with appropriate instructions to issue a new certificate in the name of the party or parties entitled to such
Adjustment Escrow Shares along with proper delivery instructions and (ii) instruct [Buyer or](10) Holdco or its designated stock transfer agent to issue a new
certificate to be returned to the Escrow Agent for any undistributed Adjustment Escrow Shares. The Escrow Agent shall have no liability whatsoever for any error, mistake, delay or failure to act by
the Buyer Representative or its designated unit transfer agent, including without limitation any error, mistake, delay or failure in the delivery of Adjustment Escrow Shares. 

        6.    No Duty to Verify.    The Escrow Agent shall have neither the duty nor the authority to verify the accuracy of
the information contained in the foregoing instructions, notices or certificates, nor the genuineness of the signatures thereon or the authority of such signatories to execute such instructions,
notices or certificates. Upon distribution of the Adjustment Escrow Shares in accordance with this Agreement, the Escrow Agent shall be deemed to have fully discharged its duties and obligations
hereunder, and shall have no further liability or obligation to any party with respect hereto. 

	(7)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(8)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(9)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(10)
	To
be deleted if Holdco Merger is to happen immediately after the Merger. 

3

 

        7.    Provisions with Respect to the Escrow Agent.    

        (a)    Protection of the Escrow Agent.    The Escrow Agent, [the Buyer,](11) Holdco, the
Company Representative and the Buyer Representative agree that: (i) either the Buyer Representative or the Company Representative may examine the Adjustment Escrow Shares at any time at the
office of the Escrow Agent; (ii) in performing its duties hereunder, the Escrow Agent may rely on written statements furnished to it by any officer of either the Buyer Representative or the
Company Representative (provided that such notice is otherwise in accordance with the requirements hereof), or any other evidence deemed by the Escrow Agent to be reliable, and shall be entitled to
act on the advice of counsel selected by it; (iii) if the Adjustment Fund Shares are attached, garnished, or levied upon under the order of any court, or the delivery thereof shall be stayed or
enjoined by the order of any court, or any other order, judgment or decree shall be made or entered by any court affecting the Adjustment Escrow Shares, the Escrow Agent is hereby expressly authorized
to obey and comply with all writs, orders or decrees so entered or issued, whether with or without jurisdiction, and the Escrow Agent shall not be liable to any of the parties hereto or their
successors by reason of compliance with any such writ, order or decree notwithstanding such writ, order or decree being subsequently reversed, modified, annulled, set aside or vacated; (iv) the
Escrow Agent may, in its sole and absolute discretion, deposit the Adjustment Escrow Shares or so many thereof as remains in its hands with the then chief or presiding judge of the Federal District
Court whose jurisdiction includes Chicago, Illinois or New York, New York, and interplead the parties hereto, and upon so depositing
such property and filing its complaint in interpleader, it shall be relieved of all liability under the terms hereof as to the property so deposited and shall be entitled to recover in such
interpleader action, from the other parties hereto, its reasonable out-of-pocket attorneys' fees and related out-of-pocket costs and expenses incurred
in commencing and prosecuting such action and furthermore, the parties hereto for themselves their successors and assigns, do hereby submit themselves to the jurisdiction of said court and do hereby
appoint the then clerk, or acting clerk, of said court as their agent for the service of all process in connection with such proceedings; (v) in case the Escrow Agent becomes involved in
litigation in connection with this Agreement, it shall have the right to retain counsel, and shall have a lien on the Adjustment Escrow Shares for all reasonable and necessary
out-of-pocket costs, attorneys' fees, charges, disbursements and expenses in connection with such litigation to the extent of the one-half portion thereof which is
the responsibility of the Representative; (vi) if the Escrow Agent's fees, costs, expenses, or reasonable attorney's fees provided for herein are not promptly paid, the Escrow Agent shall have
the right to sell the Adjustment Escrow Shares held hereunder and reimburse itself therefor from the proceeds of such sale or from the cash held hereunder, in each case, to the extent of the
one-half portion thereof which is the responsibility of the Representative; and (vii) notwithstanding anything herein to the contrary, the Escrow Agent shall be under no duty to
monitor or enforce compliance by Holdco, [Buyer,](12) the Company Representative or the Buyer Representative with any term or provision of the Merger Agreement. 

        (b)    Resignation, Removal, New Escrow Agent.    The Escrow Agent reserves the right to resign at any time by giving
at least 30-days advance written notice of resignation to the Buyer Representative and the Company Representative, specifying the effective date thereof. Similarly, the Escrow Agent may be
removed and replaced following the delivery of a 30-days advance written notice to the Escrow Agent by the Buyer Representative and the Company Representative. Within thirty
(30) days after the receipt of one of the notices referred to above, the Buyer Representative and the Company Representative agree to appoint a successor escrow agent (a
"Successor Escrow Agent"). The Successor Escrow Agent shall be a party to and agree to be legally 

	(11)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(12)
	To
be deleted if Holdco Merger is to happen immediately after the Merger. 

4

 

bound
by this Agreement by means of a joinder agreement which its signature page shall be deemed to be a counterpart signature page to this Agreement. The Successor Escrow Agent shall be deemed to be
the Escrow Agent under the terms of this Agreement. If a Successor Escrow Agent has not been appointed and has not accepted such appointment by the end of the 30-day period commencing upon
the receipt of the notice of resignation by the Buyer Representative and the Company Representative, the Escrow Agent may apply to a court of competent jurisdiction for the appointment of a Successor
Escrow Agent, and the out-of-pocket costs, expenses and reasonable attorneys' fees which the Escrow Agent incurs in connection with such a proceeding shall be paid by
[Buyer and/or](13) Holdco. 

        (c)    Indemnification.    Without limiting any protection or indemnity of the Escrow Agent under any other provision
hereof, or otherwise at law, [the Buyer and](14) Holdco agree[s] to indemnify and hold harmless the Escrow Agent from and against any and all
liabilities, losses, damages, penalties, claims, actions, suits, and out-of-pocket costs, expenses and disbursements, including reasonable out-of-pocket
legal or advisor fees and disbursements, of whatever kind and nature which may at any time be imposed on, incurred by or asserted against the Escrow Agent in connection with the performance of its
duties and obligations hereunder, other than such liabilities, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements arising by reason of the Escrow Agent's breach of
this Agreement or its failure to act in accordance with the standards set forth in this Agreement, or the Escrow Agent's bad faith, gross negligence, willful misconduct or fraud. This provision shall
survive the resignation or removal of the Escrow Agent, or the termination of this Agreement. 

        (d)    Duties.    The Escrow Agent shall have only those duties as are specifically provided in this Agreement, which
shall be deemed purely ministerial in nature, and shall under no circumstance be deemed a fiduciary for any of the parties to this Agreement. The Escrow Agent shall neither be responsible for, nor
chargeable with, knowledge of the terms and conditions of any other agreement, instrument or document between the other parties hereto, in connection herewith, including without limitation the Merger
Agreement. This Agreement sets forth all matters pertinent to the escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall be inferred from the terms of this Agreement or
any other agreement. IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (i) DAMAGES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN DAMAGES
WHICH RESULT FROM THE ESCROW AGENT'S BREACH OF THIS AGREEMENT OR ITS FAILURE TO ACT IN ACCORDANCE WITH THE STANDARDS SET FORTH IN THIS AGREEMENT, OR THE ESCROW AGENT'S BAD FAITH, GROSS NEGLIGENCE,
WILLFUL MISCONDUCT OR FRAUD OR (ii) SPECIAL OR CONSEQUENTIAL DAMAGES, EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

        8.    Fees and Reimbursement to the Escrow Agent.    The Escrow Agent shall be entitled to be paid a fee of
$[            ] for its services for each 12-month period (or portion thereof) this Agreement remains in effect
until distribution of all Adjustment Escrow Shares in accordance with this Agreement and to be reimbursed for the reasonable out-of-pocket costs and expenses incurred by the
Escrow Agent related to the Adjustment Escrow Shares and this Agreement, which fees, costs and expenses shall be borne by [Buyer and](15) Holdco. 

	(13)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(14)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(15)
	To
be deleted if Holdco Merger is to happen immediately after the Merger. 

5

 

        9.    Termination.    This Agreement shall terminate when all of the Adjustment Escrow Shares have been distributed in
accordance with this Agreement. 

        10.    Miscellaneous.    

        (a)    Notices.    All notices, demands and other communications to be given or delivered under or by reason of the
provisions of this Agreement shall be in writing and shall be deemed to have been given (i) if personally delivered, on the date of delivery, (ii) if delivered by express courier service
of national standing (with charges prepaid), on the business day following the date of delivery to such courier service, (iii) if deposited in the United States mail, first-class postage
prepaid, on the fifth business day following the date of such deposit, or (iv) if delivered by telecopy prior to 5:00 p.m. local time of the recipient party on a business day, upon
confirmation of successful transmission and otherwise on the next business day following the date of transmission (provided that if given by telecopy, such notice, demand or other communication shall
be followed up within one (1) business day by dispatch pursuant to one of the other methods described herein). Notices, demands and communications to the Buyer, Holdco, the Company
Representative, the Buyer Representative and the Escrow Agent will, unless another address or telecopy number is specified in writing, be sent to the address or telecopy number indicated for each such
party on the signature pages hereto: 

        (b)    Governing Law.    The internal law, and not the law of conflicts, of the State of New York shall govern all
questions concerning the construction, validity and interpretation of this Agreement, and the performance of the obligations imposed by this Agreement. 

        (c)    JURISDICTION AND VENUE.    EXCEPT FOR ANY DISPUTE BETWEEN THE COMPANY REPRESENTATIVE AND THE BUYER
REPRESENTATIVE WITH RESPECT TO THE MATTERS REFERRED TO IN SECTION 4D OF THE MERGER AGREEMENT (WHICH, IN EACH CASE, SHALL BE RESOLVED IN ACCORDANCE WITH THE DISPUTE RESOLUTION PROCEDURES SET FORTH
THEREIN), THE PARTIES AGREE THAT JURISDICTION AND VENUE IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY ANY PARTY PURSUANT TO THIS AGREEMENT SHALL PROPERLY AND EXCLUSIVELY) LIE IN ANY FEDERAL OR STATE
COURT LOCATED IN CHICAGO, ILLINOIS OR NEW YORK, NEW YORK. EACH PARTY ALSO AGREES NOT TO BRING ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT IN ANY OTHER COURT. BY EXECUTION AND DELIVERY OF
THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH RESPECT TO SUCH SUIT, ACTION OR PROCEEDING. THE PARTIES IRREVOCABLY
AGREE THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVE ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH SUIT, ACTION OR PROCEEDING. THE
PARTIES FURTHER AGREE THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE VALID AND LAWFUL SERVICE OF PROCESS AGAINST
THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE OF COURT. 

        (d)    WAIVER OF JURY TRIAL.    THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY RIGHT TO TRIAL OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF
THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.
THE PARTIES TO THIS AGREEMENT 

6

 

EACH
HEREBY AGREE AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

        (e)    Counterparts.    This Agreement may be executed on two or more separate counterparts, each of which will be an
original and all of which taken together will constitute one and the same agreement. 

        (f)    Successors and Assigns.    Except as otherwise expressly provided in this Agreement, neither this Agreement nor
any of the rights or obligations hereunder may be assigned by any party (whether by
operation of law or otherwise) without the prior written consent of the other parties. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns. Notwithstanding anything to the contrary set forth in this section, to the extent set forth in the Merger Agreement, the Company Representative or
Buyer Representative may resign at any time. In the event that the Company Representative or Buyer Representative has resigned or been removed, a new Company Representative or Buyer Representative
shall be appointed in accordance with the Merger Agreement. Written notice of any such resignation or removal and any such appointment shall be delivered to the Escrow Agent 

        (g)    Amendment, Waiver, etc.    This Agreement shall not be amended, modified, altered or revoked without the prior
written consent of each of the Buyer Representative and the Company Representative; provided that no amendment or modification will be made to  Section 7 and Section 8 hereof without the written consent of the Escrow Agent. The Buyer
Representative and the Company Representative separately agree to provide to the Escrow Agent a copy of all amendments and agree that the Escrow Agent shall not be bound by such amendments until it
has received a copy. No failure or delay by a party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, and no single or partial exercise thereof shall
preclude any right of further exercise or the exercise of any other right, power or privilege. 

        (h)    Headings.    Section headings used herein are for convenience of reference only and shall not be deemed to
constitute a part of this Agreement for any other purpose, or to limit, characterize or in any way affect any provision of this Agreement, and all provisions of this Agreement will be enforced as if
such headings had not been included herein. 

        (i)    No Strict Construction.    The parties hereto hereby expressly acknowledge and agree that the language of this
Agreement constitutes the mutual intention and understanding of the parties, and that each party hereto has been represented by competent counsel in connection herewith. Accordingly, each party hereto
hereby waives any doctrine of strict construction with respect to the interpretation hereof or the resolution of any ambiguities herein, and none of the foregoing shall be resolved against any party
as a result of any such doctrine. 

        (j)    Complete Agreement.    This Agreement and the documents referred to herein contain the entire understanding of
the parties hereto with respect to the transactions contemplated hereby and any prior agreements or understandings, whether oral or written, are entirely superseded hereby. 

        (k)    Delivery by Facsimile or Electronic Transmission.    This Agreement, and any amendments hereto, to the extent
signed and delivered by means of a facsimile machine or other electronic transmission, shall be treated in all manner and respects as an original contract and shall be considered to have the same
binding legal effects as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other party hereto shall re-execute 

7

 

original
forms thereof and deliver them to all other parties. No party hereto shall raise the use of a facsimile machine or other electronic transmission to deliver a signature or the fact that this
Agreement or any signature was transmitted or communicated through the use of facsimile machine or other electronic means as a defense to the formation of a contract and each such party forever waives
any such defense. 

        (l)    Business Days.    To the extent any payment or other action or delivery is required to be made on a date which
is not a business day, then the period required for such payment, action or delivery shall automatically be extended to the next business day immediately following. All references to a day or days
shall be deemed to refer to a calendar day or calendar days, as applicable, unless otherwise specifically provided. 

        (m)    Severability.    The parties agree that (i) the provisions of this Agreement shall be severable in the
event that for any reason whatsoever any of the provisions hereof are invalid, void or otherwise unenforceable, (ii) such invalid, void or otherwise unenforceable provisions shall be
automatically replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable provisions but are valid and enforceable and (iii) the
remaining provisions shall remain enforceable to the fullest extent permitted by law. 

        (n)    Third Party Beneficiaries.    Except as set forth herein, nothing herein expressed or implied is intended or
shall be construed to confer upon or to give any Person other than the Escrow Agent, the Company Representative, the Buyer Representative, [Buyer,](16) and Holdco any rights or
remedies under or by reason of this Agreement; provided that the holders of Company Capital Stock are intended third-party beneficiaries of this
Agreement and shall be entitled to enforce the provisions contained herein. 

        (o)    Automatic Succession.    Any bank or corporation into which the Escrow Agent may be merged or with which it may
be consolidated, or any bank or corporation to whom the Escrow Agent may transfer a substantial amount of its escrow business, shall be the successor to the Escrow Agent without the execution or
filing of any paper or any further act on the part of any of the parties, anything herein to the contrary notwithstanding. 

        (p)    Bankruptcy Proceedings.    In the event of the commencement of a bankruptcy case or cases wherein
[Buyer,](17) Holdco, the Company Representative, the Buyer Representative or any holder of Company Capital Stock is the debtor, the Adjustment Escrow Shares shall not
constitute property of the debtor's estate within the meaning of 11 U.S.C. § 541. 

        (q)    Specific Performance.    The obligations of the parties hereto (including the Escrow Agent) are unique in that
time is of the essence, and any delay in performance hereunder by any party will result in irreparable harm to the other parties hereto. Accordingly, any party may seek specific performance
and/or injunctive relief before any court of competent jurisdiction in order to enforce this Agreement or to prevent violations of the provisions hereof, and no party shall object to specific
performance or injunctive relief as an appropriate remedy. The Escrow Agent acknowledges that its obligations, as well as the obligations of any party hereunder, are subject to the equitable remedy of
specific performance and/or injunctive relief. 

	(16)
	To
be deleted if Holdco Merger is to happen immediately after the Merger.

	(17)
	To
be deleted if Holdco Merger is to happen immediately after the Merger. 

*            *          *            *

8

 

        IN
WITNESS WHEREOF, the parties have executed this Adjustment Escrow Agreement on the date first written above. 

9

QuickLinks

Exhibit 10.18

ADJUSTMENT ESCROW AGREEMENTEXHIBIT 10.1

    
      

    

     

    EXHIBIT
      10.1

    CONSULTING
      AGREEMENT

     

    

     

    THIS
      CONSULTING AGREEMENT, effective July 28, 2006, is entered into by and between
      Hydrogen Power International, Inc. (the “Company”) and Boston Financial Partners
      (“Consultant”).

     

    WHEREAS,
      Consultant has provided valuable consulting services to the Company relating
      to
      merger and acquisition activities in connection with the Company’s acquisition
      of Hydrogen Power, Inc. (“HPI”) and continues to provide general strategic
      corporate advice to the Company; and

     

    WHEREAS,
      the Consultant and the Company have negotiated certain terms and conditions
      regarding the Consultant’s services and desire to enter into this Agreement
      under those terms and conditions, which are set forth herein;

     

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein, it is
      hereby agreed as follows:

     

    1. Service.
      Consultant agrees to provide such strategic corporate advice (including without
      limitation relating to potential mergers, acquisitions and disposition), as
      may
      be reasonably requested by Company from time to time during the term of this
      Agreement.

     

    2. Term
      of Agreement.
      This
      Agreement shall terminate one year from the date hereof, provided that Company
      may terminate this Agreement at any time for any or no reason upon thirty (30)
      days advance written notice.

     

    3. Compensation.
      In
      consideration for the Consultant’s services under this Agreement, the Company
      will issue to the Consultant 300,000 unregistered shares of the Company’s $0.01
      par value common stock (the “Securities”) as follows:

     

    150,000
      shares upon execution of this Agreement;

    75,000
      shares on September 30, 2006; and

    75,000
      shares on December 31, 2006.

    

     

    4. Consultant
      Representations and Warranties.
      By
      executing and delivering this Agreement, the Consultant acknowledges, warrants
      and represents to the Company as follows:

     

    a. The
      Consultant has obtained and reviewed (i) the Company’s latest Annual and
      Quarterly Reports on Form 10-K and 10-Q, respectively and any other documents
      specifically requested by the Consultant (all such documents are collectively
      referred to hereinafter as the “Disclosure Documents”).

     

    b. The
      Consultant has, either alone or with the assistance of a professional advisor,
      sufficient knowledge and experience in financial and business matters that
      the
      Consultant believes itself capable of evaluating the merits and risks of the
      prospective

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    investment
      in the Securities and the suitability of an investment in the Company in light
      of the Consultant’s financial condition and investment needs, and legal, tax and
      accounting matters.

     

    c. The
      Consultant has been given access to full and complete information regarding
      the
      Company and has utilized such access to the Consultant’s satisfaction for the
      purpose of obtaining information in addition to, or verifying information
      included in, the Disclosure Documents. Particularly, the Consultant has been
      given reasonable opportunity to meet with and/or contact Company representatives
      for the purpose of asking questions of, and receiving answers from, such
      representatives concerning the accuracy of information provided in the
      Disclosure Documents.

     

    d. The
      Consultant is an “accredited investor” as defined in Rule 501(a) of Regulation D
      promulgated under the Securities Act of 1933, as amended (the
“Act”).

     

    e. The
      Consultant has relied upon the advice of the Consultant’s legal counsel and
      accountants or other financial advisors with respect to tax and other
      considerations relating to the purchase of Securities hereunder. The Consultant
      is not relying upon the Company with respect to the economic considerations
      involved to make an investment decision in the Securities.

     

    f. The
      Consultant represents and warrants that it is the intent to acquire the
      Securities for the account of the Consultant, for investment purposes and not
      with a view to resale of the Securities in connection with any distribution
      thereof. In order to assure the Company that the Consultant has no present
      intention to resell or dispose of the Securities acquired in this offering,
      the
      Consultant further represents and warrants to the Company as
      follows:

     

    (1) The
      Consultant intends to receive and hold the Securities for the Consultant’s own
      account.

     

    (2) The
      Consultant has no contract, undertaking, agreement or arrangement with any
      person or entity to sell or otherwise transfer the Securities to any such person
      or entity or to have any such person or entity sell the Securities on the
      Consultant’s behalf.

     

    (3) The
      Consultant represents and warrants that (i) it was not organized for the
      specific purpose of acquiring the Securities, and (ii) this Agreement has been
      duly authorized by all necessary action on the part of the Consultant, has
      been
      duly executed by an authorized officer or representative of the Consultant,
      and
      is a legal, valid and binding obligation of the undersigned enforceable in
      accordance with its terms.

     

    5. Registration
      Status; Restrictions on Transferability.
      With
      respect to the registration status and transferability of the Securities, the
      Consultant understands, acknowledges and agrees that:

     

    a. The
      Securities to be issued in connection with this Agreement have not been
      registered under the Act or under applicable state securities laws on the
      grounds that they are

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    being
      issued in a transaction (i) involving one knowledgeable investor fully familiar
      with the proposed operations of the Company and (ii) not involving a public
      offering and that, consequently, such transaction is exempt from the
      registration under the Act and applicable state securities laws. The Company
      will rely on the Consultant’s representations herein as a basis for the
      exemption from the Act’s registration requirements.

     

    b. The
      Securities may not be sold, transferred or otherwise disposed of except pursuant
      to an effective registration statement (which the Company is under no obligation
      to file) or appropriate exemption from registration under applicable state
      law
      and, as a result, the Consultant may be required to hold the Securities for
      an
      indefinite period of time.

     

    c. Certificates
      representing the Securities will bear a legend substantially in the following
      form:

     

    The
      securities represented hereby have not been registered under the Securities
      Act
      of 1933, as amended, or the securities law of any state. Such securities have
      been acquired for investment and without a view to their distribution and may
      not be sold or otherwise disposed of in the absence of any effective
      registration statement for such securities under the Securities Act of 1933,
      as
      amended, and under applicable state securities laws, unless an exemption from
      registration is available under applicable securities laws.

     

    6. Registration
      Rights.

     

    a. If
      at any
      time prior to the expiration of three (3) years from the date hereof, the
      Company proposes to register under the 1933 Act (except by a Form S-4 or Form
      S-8 Registration Statement or any successor forms thereto and except for any
      dividend warrants issued to all stockholders of record) or qualify for a public
      distribution under Section 3(b) of the 1933 Act, any of its equity securities
      or
      debt with equity features, it will give written notice to Consultant of its
      intention to do so and, on the written request of Consultant given within five
      (5) days after receipt of any such notice (which request shall specify the
      Securities intended to be sold or disposed of by Consultant and describe the
      nature of any proposed sale or other disposition thereof), the Company will
      use
      its best efforts to cause all such Securities to be included in such
      registration statement proposed to be filed by the Company; provided, however,
      that nothing herein shall prevent the Company from, at any time, abandoning
      or
      delaying any registration. The right of Consultant to include the Securities
      in
      any such registration statement may be subject to approval by selling
      securityholders whose securities are being registered in the registration
      statement and the Company does not guarantee such approval may be given. If
      any
      registration pursuant to this Section 6(a) is underwritten in whole or in part,
      the Company may require that the Securities requested for inclusion pursuant
      to
      this Section 6(a) be included in the underwriting on the same terms and
      conditions as the securities otherwise being sold through the underwriters.
      If a
      greater number of Securities is offered for participation in the proposed
      offering than in the reasonable opinion of the managing underwriter of the
      proposed offering can be accommodated without adversely affecting the proposed
      offering, then the amount of Securities proposed to be offered by Consultants
      for registration, as well as the number of

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    securities
      of any other selling shareholders participating in the registration, shall
      be
      proportionately reduced to a number deemed satisfactory by the managing
      underwriter.

     

    b. With
      respect to each inclusion of securities in a registration statement pursuant
      to
      this Section 6, the Company shall bear the following fees, costs, and expenses:
      all registration, filing and NASD fees, printing expenses, fees and
      disbursements of counsel and accountants for the Company, fees and disbursements
      of counsel for the underwriter or underwriters of such securities (if the
      offering is underwritten and the Company is required to bear such fees and
      disbursements), all internal expenses, the premiums and other costs of policies
      of insurance against liability arising out of the public offering, and legal
      fees and disbursements and other expenses of complying with state securities
      laws of any jurisdictions in which the securities to be offered are to be
      registered or qualified. Fees and disbursements of special counsel and
      accountants for the Consultant, underwriting discounts and commissions, and
      transfer taxes for Consultant and any other expenses relating to the sale of
      securities by the Consultant not expressly included above shall be borne by
      the
      Consultant.

     

    7. Successors
      and Assigns.
      This
      Agreement is binding on and inures to the benefit of the Company’s successors
      and assigns, all of which are included in the term the “Company” as it is used
      in this Agreement; provided, however, that the Company may assign this Agreement
      only in connection with a merger, consolidation, assignment, sale or other
      disposition of substantially all of its assets or business. This Agreement
      is
      binding upon and inures to the benefit of the Consultant’s successors, assigns
      and legal representatives.

     

    8. Modification.
      This
      Agreement may be modified or amended only by a writing signed by both the
      Company and the Consultant.

     

    9. Governing
      Law.
      The
      laws of Colorado will govern the validity, construction and performance of
      this
      Agreement. Any legal proceeding related to this Agreement will be brought in
      an
      appropriate Colorado court, and both the Company and the Consultant hereby
      consent to the exclusive jurisdiction of that court for this
      purpose.

     

    10. Construction.
      Wherever possible, each provision of this Agreement will be interpreted so
      that
      it is valid under the applicable law. If any portion of this Agreement is to
      any
      extent declared invalid by a court of competent jurisdiction under the
      applicable law, that provision will remain effective to the extent not declared
      invalid. The remainder of this Agreement also will continue to be valid, and
      the
      entire Agreement will continue to be valid in other jurisdictions

     

    11. Waivers.
      No
      failure or delay by either the Company or the Consultant in exercising any
      right
      or remedy under this Agreement will waive any provision of the Agreement. Nor
      will any single or partial exercise by either the Company or the Consultant
      of
      any right or remedy under this Agreement preclude either of them from otherwise
      or further exercising these rights or remedies, or any other rights or remedies
      granted by and law or any related document.

     

    12. Entire
      Agreement.
      This
      Agreement encompasses all agreements between the parties and supersedes all
      previous and contemporaneous oral negotiations, commitments, writings, and
      understandings between the parties concerning the matters in this
      Agreement.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    

     

    IN
      WITNESS WHEREOF, the Company and the Consultant have executed this Agreement
      as
      of the Effective Date.

     

    

    

      
        	 	
                HYDROGEN
                  POWER INTERNATIONAL, INC.

              
	 	 
	 	
                By:
                  Henry
                  Fong

              
	 	
                Its:
                  President

              
	 	 
	 	 
	 	
                BOSTON
                  FINANCIAL PARTNERS

              
	 	 
	 	
                By:
                  Thomas
                  Brazil

              
	 	
                Its:
                  President

              

      

    

     

     

     

    -5-

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