Document:

Exhibit
10.2

 

STOCK ESCROW AGREEMENT

 

STOCK ESCROW AGREEMENT,
dated as of                        ,
2005 (“Agreement”), by and among ORACLE HEALTHCARE ACQUISITION CORP., a Delaware corporation (“Company”),
                       
(collectively “Initial Stockholders”) and Continental Stock Transfer & Trust Company, a New York
corporation (“Escrow Agent”).

 

WHEREAS, the Company has
entered into an Underwriting Agreement, dated                   ,
2005 (“Underwriting Agreement”), with CRT Capital Group, LLC (the “Underwriter”),
pursuant to which, among other matters, the Underwriter has agreed to purchase
12,500,000 units (“Units”) of the Company.  Each Unit consists of one share of the
Company’s Common Stock, par value $.0001 per share, and one Warrant to purchase
one share of Common Stock, all as more fully described in the Company’s final
Prospectus, dated                 ,
2005 (“Prospectus”) comprising part of the Company’s Registration
Statement on Form S-1 (File No. 333-                )
under the Securities Act of 1933, as amended (“Registration Statement”),
declared effective on                        ,
2005 (“Effective Date”).

 

WHEREAS, the Initial
Stockholders have agreed as a condition of the sale of the Units to deposit
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 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 Escrow Shares is legended to reflect the deposit of such Escrow Shares
under this Agreement.

 

3.             Disbursement of the Escrow Shares.  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
Stockholders; 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, however,
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 the stockholder 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 receipt of a certificate, executed by the President or Chief
Financial Officer of the Company, in form reasonably acceptable to the Escrow
Agent, that such transaction is then being consummated, and release the Escrow
Shares to the Initial Stockholders upon consummation of the transaction 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.

 

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.  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,
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.

 

4.4.          Insider Letters.  Each of the Initial Stockholders has executed
a letter agreement with the Company, dated as indicated on Exhibit A
hereto, 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.

 

2

 

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 Sections 5.2 and 5.7
shall survive in the event the Escrow Agent resigns or is discharged pursuant
to Sections 5.5 or 5.6 below.

 

5.3.          Compensation.  The Escrow Agent shall be entitled to
reasonable compensation from the Company for all services rendered by it
hereunder.  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.

 

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 it duties as escrow agent hereunder by its giving the other
parties hereto written notice and 

 

3

 

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, the Escrow Share 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 reasonably deems appropriate.

 

5.6.          Discharge of Escrow Agent.  The
Escrow Agent shall resign and be discharged form its duties as escrow agent
hereunder if so requested in writing at any time by the Company and a majority
of the Initial Shareholders, 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.

 

5.8.          Trust Fund Waiver.  The Escrow Agent has no right, title,
interest, or claim of any kind (“Claim”) in or to any monies in the
Trust Account (as defined in that certain Investment Management Trust
Agreement, dated as of the date hereof, by and between the Company and
Continental Stock Transfer & Trust Company, as trustee of the Trust
Account), and hereby waives any Claim it may have in the future in or to any
monies in the Trust Account, and hereby agrees not to seek recourse,
reimbursement, payment or satisfaction for any Claim against the Trust Account
for any reason whatsoever.

 

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.

 

6.2.          Third Party Beneficiaries.  Each of the Initial Stockholders hereby
acknowledges that the Underwriter is a third party beneficiary of this Agreement
and this Agreement may not be modified or changed without the prior written
consent of the Underwriter.

 

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 be charged.

 

6.4.          Headings.  The headings contained in this Agreement are
for reference purposes only and shall not affect in any the meaning or
interpretation thereof.

 

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 be mailed, certified or registered mail, or by private national
courier service, return receipt requested, postage prepaid, 

 

4

 

and
shall be deemed given when so delivered personally or, if mailed, two days
after the date of mailing, as follows:

 

If to the Company, to

 

	
  Oracle Healthcare
  Acquisition Corp.

  
	
  200 Greenwich Avenue

  
	
  3rd Floor

  
	
  Greenwich, Connecticut
  06830

  
	
  Attn:  Joel D. Liffmann

  

 

If to a Stockholder, to
his address set forth in Exhibit A.

 

and if to the Escrow
Agent, to:

 

Continental Stock Transfer & Trust
Company

17 Battery Place

New York, NY  10004

Attn: 
Chairman

 

A copy of any notice sent
hereunder shall be sent to:

 

	
  [                                      ]

  
	
  [                                      ]

  
	
  [                                      ]

  
	
  [                                      ]

  

 

and:

 

	
  CRT Capital
  Group LLC

  
	
  262 Harbor Drive

  
	
  Stamford, CT 06902

  
	
  Attn:

  

 

and:

 

	
  Bingham
  McCutcheon LLP

  
	
  399 Park Avenue

  
	
  New York, NY
  10022-4689

  
	
  Attn: Floyd I.
  Wittlin, Esq.

  
	
   

  

and:

 

	
  Willkie Farr
  & Gallagher LLP

  
	
  787 Seventh
  Avenue

  
	
  New York,
  NY  10019-6099

  
	
  Attn:  William H. Gump, 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.

 

6

 

WITNESS the execution of
this Agreement as of the date first above written:

 

	
   

  	
  ORACLE
  HEALTHCARE ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  ,

  
	
   

  	
   

  	
  President and Chief
  Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  INITIAL STOCKHOLDERS:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL STOCK
  TRANSFER & TRUST 

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

7

 

EXHIBIT A

 

	
  Name and Address of

  Initial Stockholder

  	
   

  	
  Number of 

  Shares

  	
   

  	
  Stock Certificate

  Number

  	
   

  	
  Date of 

  Insider Letter

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [to be supplied]

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
              ,
  2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
              ,
  2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
              ,
  2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
              ,
  2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
              ,
  2005

  

 

A-1Exhibit 10.4

 

PROMISSORY NOTE

 

$50,000

 

As of September 22, 2005

New York, New York

 

ORACLE HEALTHCARE ACQUISITION CORP. (the “Maker”) promises to
pay to the order of  Larry N. Feinberg
(the “Payee”) the principal sum of fifty thousand Dollars ($50,000) in
lawful money of the United States of America on the terms and conditions
described below.

 

1. Principal.
The principal balance of this Note shall be repayable on the earlier of (i) September 22,
2006 or (ii) the date on which Maker consummates an initial public
offering of its securities.

 

2. Interest.
No interest shall accrue on the unpaid principal balance of this Note.

 

3. Events of
Default. Each of the following shall constitute an Event of Default:

 

(a) Failure to Make Required Payments. Failure
by Maker to pay the principal of this Note within five (5) business days
following the date when due. A “business day” for these purposes means
any weekday on which banking or trust institutions in New York are not
authorized generally or obligated by law, regulation or executive order to
close.

 

(b) Voluntary Bankruptcy, Etc. The
commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as
now constituted or hereafter amended, or any other applicable federal or state
bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or
the consent by it to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) of Maker or for any substantial part of its property, or the making
by it of any assignment for the benefit of creditors, or the failure of Maker
generally to pay its debts as such debts become due, or the taking of corporate
action by Maker in furtherance of any of the foregoing.

 

(c) Involuntary Bankruptcy, Etc. The entry of
a decree or order for relief by a court having jurisdiction in the premises in
respect of Maker in an involuntary case under the Federal Bankruptcy Code, as
now constituted or hereafter amended, or any other applicable federal or state
bankruptcy, insolvency or other similar law, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
Maker or for any substantial part of its property, or ordering the winding-up
or liquidation of its affairs, and the continuance of any such decree or order
unstayed and in effect for a period of sixty (60) consecutive days.

 

4. Remedies.

 

(a) Upon the
occurrence of an Event of Default specified in Section 3(a), Payee may, by
written notice to Maker, declare this Note to be due and payable, whereupon the
principal amount of this Note, and all other amounts payable thereunder, shall
become immediately due and payable without presentment, demand, protest or
other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the documents evidencing the same to the contrary
notwithstanding.

 

(b) Upon the
occurrence of an Event of Default specified in Sections 3(b) and 3(c), the
unpaid principal balance of, and all other sums payable with regard to, this
Note shall automatically and immediately become due and payable, in all cases
without any action on the part of Payee.

 

 

5. Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive
presentment for payment, demand, notice of dishonor, protest, and notice of
protest with regard to the Note, all errors, defects and imperfections in any
proceedings instituted by Payee under the terms of this Note, and all benefits
that might accrue to Maker by virtue of any present or future laws exempting
any property, real or personal, or any part of the proceeds arising from any
sale of any such property, from attachment, levy or sale under execution, or
providing for any stay of execution, exemption from civil process, or extension
of time for payment.

 

6. Unconditional
Liability. Maker and all endorsers and guarantors of, and sureties for,
this Note waive all notices in connection with the delivery, acceptance,
performance, default, or enforcement of the payment of this Note, and agree
that liability shall be unconditional, without regard to the liability of any
other party, and shall not be affected in any manner by any indulgence,
extension of time, renewal, waiver or modification granted or consented to by Payee,
and consent to any and all extensions of time, renewals, waivers, or
modifications that may be granted by Payee with respect to the payment or other
provisions of this Note, and agree that additional makers, endorsers,
guarantors, or sureties may become parties hereto without notice to them or
affecting their liability hereunder.

 

7. Notices.
Any notice called for hereunder shall be deemed properly given if (i) sent
by certified mail, return receipt requested, (ii) personally delivered, (iii) dispatched
by any form of private or governmental express mail or delivery service
provided receipted delivery, (iii) sent by facsimile, to the principal
office of Maker or the home address of Payee as indicated on the books and
records of Maker. Notice shall be deemed given on the earlier of (i) actual
receipt by the receiving party, (ii) the date shown on a facsimile
transmission confirmation, (iii) the date reflected on a signed delivery
receipt, or (iv) two (2) business days following tender of delivery
or dispatch by express mail or delivery service.

 

8. Construction.
This Note shall be governed by, construed and enforced in accordance with the
laws of the State of New York, without giving effect to the conflicts of laws
principles thereof.

 

9. Severability.
Any provision contained in this Note which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

IN WITNESS
WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to
be duly executed by the authorized officer named below the day and year first
above written.

 

 

	
   

  	
  ORACLE HEALTHCARE ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Mark A. Radzik

  	
   

  
	
   

  	
  By: Mark A. Radzik

  
	
   

  	
  Title: Chief Financial Officer and Secretary

  

 

2

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