Document:

EX-10.3

Exhibit 10.3

INVESTMENT MANAGEMENT TRUST AGREEMENT

     This Agreement is made as of                     
___, 2008 by and between Gabelli Entertainment &
Telecommunications Acquisition Corp. (the “Company”), located at 140 Greenwich Avenue, Greenwich,
Connecticut 06830 and American Stock Transfer & Trust Company
(“Trustee”), located at 59 Maiden Lane, New York, New York
10038.

     WHEREAS, the Company’s registration statement on Form S-1, No. 333-152758 (“Registration
Statement”), for its initial public offering of securities (“IPO”) has been declared effective as
of the date hereof (“Effective Date”) by the Securities and Exchange Commission (capitalized terms
used herein and not otherwise defined shall have the meanings set forth in the Registration
Statement); and

     WHEREAS, Citigroup Global Markets Inc. (“Citigroup”) is acting as the representative of the
underwriters in the IPO; and

     WHEREAS, as described in the Registration Statement, and in accordance with the Company’s
Amended and Restated Certificate of Incorporation, $124,008,125 of the gross proceeds of the IPO
and sale of the Private Placement Warrants (or $142,101,875 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 (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 in a segregated trust account(s) (“Trust Account”) established by the Trustee at J. P.
Morgan Chase Bank N.A. and at an office of                      selected by the Company;

     (b) Manage, supervise and administer the Trust Account subject to the terms and conditions set
forth herein;

     (c) In a timely manner, upon the instruction of the Company, to invest and reinvest the
Property in (i) U.S. Treasury securities having a maturity of 180
days or less or (ii) a money market fund meeting the requirements of Rule 2a-7 promulgated under the Investment Company
Act of 1940 that invest solely in U.S. Treasury securities and repurchase agreement transactions
solely involving U.S. Treasury securities, as determined by the
Company;

     (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;

1

 

     (e) Notify the Company and Citigroup  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 relating to income from the property
in the Trust Account (or otherwise);

     (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 and/or Citigroup to do so;

     (h) Render to the Company and to Citigroup, and to such other person as the Company may
instruct, monthly written statements of the activities of and amounts in the Trust Account
reflecting all receipts and disbursements of the Trust Account; and

     (i) Commence liquidation of the Trust Account only after and 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 hereto, signed on behalf of the
Company by its Chief Executive Officer or Chairman of the Board and Secretary or Assistant
Secretary and affirmed by counsel for the Company, 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 the Trustee by the 24-month anniversary of the closing
(“Closing”) of the IPO (“First Date”), or the 30-month anniversary of the Closing (“Last Date”) in
the event that a definitive agreement for a Business Combination has been executed on or prior to
the First Date but the Business Combination has not been consummated by the First Date, the Trust
Account shall be liquidated in accordance with the procedures set forth in the Termination Letter
attached as Exhibit B hereto to the stockholders of record on the record date established by the
Company for such purpose. The Company shall set the record date to be within ten days of the Last
Date, or as soon thereafter as reasonably practicable and legally permissible. In all cases, the
Trustee shall provide Citigroup with a copy of any Termination Letters and/or any other
correspondence that it receives with respect to any proposed withdrawal from the Trust Account
promptly after it receives same.

     2. Limited Distributions from Trust Account.

     (a) Upon written request from the Company, which may be given from time to time in a form
substantially similar to that attached hereto as Exhibit C, the Trustee shall distribute to the
Company by wire transfer the amount requested by the Company to cover any income or other tax
obligation owed by the Company;

     (b) Upon written request from the Company, which may be given from time to time in a form
substantially similar to that attached hereto as Exhibit D, the Trustee shall distribute to the
Company by wire transfer the amount requested by the Company to cover expenses related to
investigating and selecting a target business and other working capital requirements; provided,
however, that the aggregate amount of all such distributions shall
not exceed $2,000,000 and the
Company will not be allowed to withdraw interest income earned on the trust account unless there is
sufficient funds available to pay the Company’s tax obligations on such interest income or
otherwise then due at that time;

     (c) The limited distributions referred to in Sections 2(a) and 2(b) above shall be made only
from income collected on the Property. Except as provided in Section 2(a) and 2(b) above, no other
distributions from the Trust Account shall be permitted except in accordance with Section 1(i)
hereof.

2

 

     (e) In all cases, the Company shall provide Citigroup with a copy of any Termination Letters
and/or any other correspondence that it issues to the Trustee with respect to any proposed
withdrawal from the Trust Account promptly after such issuance.

     3. 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
Chairman of the Board or President or other authorized officer. In addition, except with respect to
its duties under paragraphs 1(i), 2(a) and 2(b) 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 Trustee may not agree to settle any Indemnified Claim without the prior
written consent of the Company, which consent shall not be unreasonably withheld. The Company may
participate in such action with its own counsel;

     (c) Pay
the Trustee annual and transaction processing fees
as agreed upon by the parties, which fees
shall be subject to modification by the parties from time to time. It is expressly understood that
the Property shall not be used to pay such fees unless and until it is distributed to the Company
pursuant to Section 2. 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 annual fee (on a pro rata basis) with respect to any
period after the liquidation of the Trust Fund. The Company shall not be responsible for any other
fees or charges of the Trustee except as set forth in this Section 3(c) and as may be provided in
Section 3(b) hereof (it being expressly understood that the Property shall not be used to make any
payments to the Trustee under such Sections);

     (d) 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/or tabulating stockholder votes (which firm may be the Trustee)
verifying the vote of the Company’s stockholders regarding such Business Combination; and

     (e) In connection with the Trustee acting as Paying/Disbursing Agent pursuant to Exhibit B,
the Company will not give the Trustee disbursement instructions which would be prohibited under
this Agreement or give the Trustee instructions to make any payment that is not specifically
authorized by this Agreement.

     4. Limitations of Liability. The Trustee shall have no responsibility or liability to:

3

 

     (a) Take any action with respect to the Property, other than as directed in paragraphs 1 and 2
hereof and the Trustee shall have no liability to any party except for liability arising out of its
own gross negligence or willful misconduct;

     (b) Imply obligations, perform duties, inquire or otherwise be subject to the provisions of
any agreement or document other than this Agreement and that which is expressly set forth herein;

     (c) Institute any proceeding for the collection of any principal and income arising from, or
institute, appear in or defend any proceeding of any kind with respect to, any of the Property
unless and until it shall have received instructions from the Company given as provided here-in to
do so and the Company shall have advanced or guaranteed to it funds sufficient to pay any expenses
incident thereto;

     (d) Change the investment of any Property, other than in compliance with paragraph 1(c);

     (e) Refund any depreciation in principal of any Property;

     (f) Assume that the authority of any person designated by the Company to give instructions
hereunder shall not be continuing unless provided otherwise in such designation, or unless the
Company shall have delivered a written revocation of such authority to the Trustee;

     (g) The other parties hereto or to anyone else for any action taken or omitted by it, or any
action suffered by it to be taken or omitted, in good faith and in the exercise of its own best
judgment, except for its gross negligence or willful misconduct. The Trustee 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 Trustee), 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 Trustee, in good faith, to be genuine and to be signed or presented by the proper person or
persons. The Trustee shall not be bound by any notice or demand, or any waiver, modification,
termination or rescission of this Agreement or any of the terms hereof, unless evidenced by a
written instrument delivered to the Trustee signed by the proper party or parties and, if the
duties or rights of the Trustee are affected, unless it shall give its prior written consent
thereto;

     (h) Verify the correctness of the information set forth in the Registration Statement or to
confirm or assure that any acquisition made by the Company or any other action taken by it is as
contemplated by the Registration Statement; and

     (i) Prepare, execute and file tax reports, income or other tax returns and pay any taxes with
respect to income and other activities relating to the Trust Account, regardless of whether such
tax is payable by the Trust Account or the Company (including but not limited to income tax
obligations), it being expressly understood that as set forth in Section 1(i), if there is any
income or other tax obligation relating to the Trust Account or the Property in the Trust Account,
as determined from time to time by the Company and regardless of whether such tax is payable by
the Company or the Trust, at the written instruction of the Company, the Trustee shall make funds
available in cash from the Property in the Trust Account an amount specified by the Company as
owing to the applicable taxing authority, which amount shall be paid directly to the Company by
electronic funds transfer, account debit or other method of payment, and the Company shall forward
such payment to the taxing authority.

     5. Termination. This Agreement shall terminate as follows:

4

 

     (a) If the Trustee gives written notice to the Company that it desires to resign under this
Agreement, the Company shall use its reasonable efforts to locate a successor trustee. At such time
that the Company notifies the Trustee that a successor trustee has been appointed by the Company and
has agreed to become subject to the terms of this Agreement, the Trustee shall transfer the
management of the Trust Account to the successor trustee, including but not limited to the transfer
of copies of the reports and statements relating to the Trust Account, whereupon this Agreement
shall terminate; provided, however, that, in the event that the Company does not locate a successor
trustee within ninety days of receipt of the resignation notice from the Trustee, the Trustee may
submit an application to have the Property deposited with any court in the State of New York or
with the United States District Court for the Southern District of New York and upon such deposit,
the Trustee shall be immune from any liability whatsoever; or

     (b) At such time that the Trustee has completed the liquidation of the Trust Account in
accordance with the provisions of paragraph 1(i) hereof, and distributed the Property in accordance
with the provisions of the Termination Letter, this Agreement shall terminate except with respect
to Paragraph 3(b).

     6. Miscellaneous.

     (a) The Company and the Trustee each acknowledge that the Trustee will follow the procedures
set forth below with respect to funds transferred from the Trust Account. In executing funds
transfers, the Trustee will rely upon all information of a beneficiary, beneficiary’s bank or
intermediary bank. The Trustee shall not be liable for any loss, liability or expense resulting
from any error in an account number or other identifying number.

     (b) This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of New York, without giving effect to conflicts of law principles that would result in
the application of the substantive laws of another jurisdiction. It may be executed in several
original or facsimile counterparts, each one of which shall constitute an original, and together
shall constitute but one instrument.

     (c) This Agreement contains the entire agreement and understanding of the parties hereto with
respect to the subject matter hereof. Except for Section 1(i) (which may not be amended under any
circumstances), this Agreement or any provision here-of may only be changed, amended or modified by
a writing signed by each of the parties hereto; provided, however, that no such change, amendment
or modification may be made without the prior written consent of Citigroup. As to any claim,
cross-claim or counterclaim in any way relating to this Agreement, each party waives the right to
trial by jury.

     (d) The parties hereto consent to the jurisdiction and venue of any state or federal court
located in the City of New York, Borough of Manhattan, for purposes of resolving any disputes
hereunder.

     (e) Any notice, consent or request to be given in connection with any of the terms or
provisions of this Agreement shall be in writing and shall be sent by express mail or similar
private courier service, by certified mail (return receipt requested), by hand delivery or by
facsimile transmission:

if to the Trustee, to:

American Stock Transfer

& Trust Company

59 Maiden Lane

New York, New York 10038

5

 

Attn: Steven G. Nelson

Facsimile: (212) 845-3202

if to the Company, to:

Gabelli Entertainment & Telecommunications Acquisition Corp.

140 Greenwich Avenue

Greenwich, Connecticut 06830

Attn: Mario J. Gabelli, Chairman

Facsimile: (___) __-___________

in either case with a copy to:

Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attn: David Alan Miller, Esq.

Facsimile: (212) 818-8881

and:

Citigroup
Global Markets Inc.

388 Greenwich St.

New York, New York 10013

Attn: David Spivak

Facsimile: (___) __-_________

and:

Greenberg Traurig, LLP

Met Life Building

200 Park Avenue

New York, New York 10166

Attn: Alan I. Annex, Esq.

Facsimile: (212) 801-5552

     (f) This Agreement may not be assigned by the Trustee without the prior consent of the Company
and Citigroup.

     (g) Each of the Trustee and the Company hereby represents that it has the full right and power
and has been duly authorized to enter into this Agreement and to perform its respective obligations
as contemplated hereunder. The Trustee acknowledges and agrees that it shall not make any claims or
proceed against the Trust Account, including by way of set-off, and shall not be entitled to any
funds in the Trust Account under any circumstance.

     (h) Each of the Company and the Trustee hereby acknowledge that Citigroup  is a third party
beneficiary of this Agreement.

     (i) The
Trustee hereby consents to the inclusion of American Stock Transfer & Trust Company
in the Registration Statement and other materials related to the IPO.

6

 

     IN WITNESS WHEREOF, the parties have duly executed this Investment Management Trust Agreement
as of the date first written above.

	 	 	 	 	 
	 	AMERICAN STOCK TRANSFER

& TRUST COMPANY, as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	GABELLI ENTERTAINMENT &
TELECOMMUNICATIONS
ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

7

 

EXHIBIT A

[Letterhead of Company]

[Insert date]

American Stock Transfer

& Trust Company

59 Maiden Place

New York, New York 10038

	 	Re: 	 	Trust Account No.            Termination Letter

Gentlemen:

Pursuant to paragraph 1(i) of the Investment Management Trust Agreement between Gabelli
Entertainment & Telecommunications Acquisition Corp. (“Company”) and American Stock Transfer &
Trust Company (“Trustee”), dated as of                     , 2008 (“Trust Agreement”), this is to advise you
that the Company has entered into an agreement (“Business Agreement”) with                                         
(“Target Business”) to consummate a business combination with Target Business (“Business
Combination”) on or about [insert date]. The Company shall notify you at least 48 hours in advance
of the actual date of the consummation of the Business Combination (“Consummation Date”).

In accordance with the terms of the Trust Agreement, we hereby authorize you to commence
liquidation of the Trust Account to the effect that, on the Consummation Date, all of funds held in
the Trust Account will be immediately available for transfer to the account or accounts that the
Company shall direct on the Consummation Date.

On the Consummation Date (i) counsel for the Company shall deliver to you written notification that
the Business Combination has been consummated (“Counsel’s Letter”) and (ii) the Company shall
deliver to you (a) [an affidavit] [a certificate] of                     , which verifies the vote of
the Company’s stockholders in connection with the Business Combination and (b) written instructions
with respect to the transfer of the funds held in the Trust Account (“Instruction Letter”). You are
hereby directed and authorized to transfer the funds held in the Trust Account immediately upon
your receipt of the Counsel’s Letter and the Instruction Letter, in accordance with the terms of
the Instruction Letter. In the event that certain deposits held in the Trust Account may not be
liquidated by the Consummation Date without penalty, you will notify the Company of the same and
the Company shall direct you as to whether such funds should remain in the Trust Account and
distributed after the Consummation Date to the Company. Upon the distribution of all the funds in
the Trust Account pursuant to the terms hereof, the Trust Agreement shall be terminated and the
Trust Account closed.

In the event that the Business Combination is not consummated on the Consummation Date described in
the notice thereof and we have not notified you on or before the original Consummation Date of a
new Consummation Date, then the funds held in the Trust Account shall be reinvested as provided in
the Trust Agreement on the business day immediately following the Consummation Date as set forth in
the notice.

9

 

	 	 	 	 	 
	 	Very truly yours,

GABELLI ENTERTAINMENT & TELECOMMUNICATIONS ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

cc: Citigroup
Global Markets Inc.

10

 

EXHIBIT B

[Letterhead of Company]

[Insert date]

American Stock Transfer

& Trust Company

59 Maiden Lane

New York, New York 10038

	 	Re: 	 	Trust Account No.            Termination Letter

Gentlemen:

Pursuant to paragraph 1(i) of the Investment Management Trust Agreement between Gabelli
Entertainment & Telecommunications Acquisition Corp. (“Company”) and American Stock Transfer &
Trust Company (“Trustee”), dated as of                     , 2008 (“Trust Agreement”), this is to advise you
that the Company has been unable to effect a Business Combination with a Target Company within the
time frame specified in the Company’s Certificate of Incorporation, as described in the Company’s
prospectus relating to its IPO.

In accordance with the terms of the Trust Agreement, we hereby authorize you, to commence
liquidation of the Trust Account as promptly as practicable, but no later than ten business days
from the date hereof, to stockholders of record on the Last Date (as defined in the Trust
Agreement). You will notify the Company in writing as to when all of the funds in the Trust Account
will be available for immediate transfer (“Transfer Date”) in accordance with the terms of the
Trust Agreement and the Certificate of Incorporation of the Company. You shall commence
distribution of such funds in accordance with the terms of the Trust Agreement and the Certificate
of Incorporation of the Company and you shall oversee the distribution of the funds. Upon the
distribution of all the funds in the Trust Account, your obligations under the Trust Agreement
shall be terminated.

	 	 	 	 	 
	 	Very truly yours,

GABELLI ENTERTAINMENT & TELECOMMUNICATIONS ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

cc: Citigroup
Global Markets Inc.

11

 

EXHIBIT C

[Letterhead of Company]

[Insert date]

American Stock Transfer

& Trust Company

59 Maiden Lane

New York, New York 10038

	 	Re: 	 	Trust Account No.

Gentlemen:

Pursuant to paragraph 2(a) of the Investment Management Trust Agreement between Gabelli
Entertainment & Telecommunications Acquisition Corp.
(“Company”) and American Stock Transfer &
Trust Company (“Trustee”), dated as of                     , 2008 (“Trust Agreement”), the Company hereby
requests that you deliver to the Company $                     of the income earned on the Property as of the
date hereof. The Company needs such funds to pay for the tax obligations as set forth on the
attached tax return or tax statement. In accordance with the terms of the Trust Agreement, you are
hereby directed and authorized to transfer (via wire transfer) such funds promptly upon your
receipt of this letter to the Company’s operating account at:

[WIRE INSTRUCTION INFORMATION]

	 	 	 	 	 
	 	Very truly yours,

GABELLI ENTERTAINMENT & TELECOMMUNICATIONS ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

cc: Citigroup
Global Markets Inc.

12

 

EXHIBIT D

[Letterhead of Company]

[Insert date]

American Stock Transfer

& Trust Company

59 Maiden Lane

New York, New York 10038

	 	Re: 	 	Trust Account No.

Gentlemen:

Pursuant to paragraph 2(b) of the Investment Management Trust Agreement between Gabelli
Entertainment & Telecommunications Acquisition Corp.
(“Company”) and American Stock Transfer &
Trust Company (“Trustee”), dated as of                     , 2008 (“Trust Agreement”), the Company hereby
requests that you deliver to the Company $                     of the income earned on the Property as of the
date hereof, which does not exceed, in the aggregate with all such prior disbursements pursuant to
paragraph 2(b), if any, the maximum amount set forth in paragraph 2(b). The Company needs such
funds to cover its expenses relating to investigating and selecting a target business and other
working capital requirements. In accordance with the terms of the Trust Agreement, you are hereby
directed and authorized to transfer (via wire transfer) such funds promptly upon your receipt of
this letter to the Company’s operating account at:

[WIRE INSTRUCTION INFORMATION]

	 	 	 	 	 
	 	Very truly yours,

GABELLI ENTERTAINMENT & TELECOMMUNICATIONS ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

cc: Citigroup
Global Markets Inc.

13

 

EXHIBIT E

	 	 	 
	AUTHORIZED INDIVIDUAL(S)	 	AUTHORIZED TELEPHONE NUMBER(S)
	 
	 	 
	Company:
	 	 
	 
	 	 
	Gabelli Entertainment & Telecommunications

Acquisition Corp. 

140 Greenwich Avenue 

Greenwich, Connecticut 06830

Attn: Mario J. Gabelli, Chairman

	 	(203) 629-2659
	 
	 	 
	Trustee:
	 	 
	 
	 	 
	American
Stock Transfer

& Trust Company 

59 Maiden Lane 

New York, New York 10038

Attn:

	 	 

14EX-10.4

Exhibit 10.4

SECURITIES ESCROW AGREEMENT

     SECURITIES ESCROW AGREEMENT, dated as of
                    , 2008 (“Agreement”), by and among
GABELLI ENTERTAINMENT & TELECOMMUNICATIONS ACQUISITION CORP., a Delaware corporation (“Company”),
GABELLI ACQUISITION, LLC, FREDERIC V. SALERNO, MARIO J. GABELLI, CHRISTOPHER J.
MARANGI, LAWRENCE J. HAVERTY, JR.,  EUGENE R.
McGRATH, ALFRED W. FIORE, ROBERT FRIEDMAN and VINCENT TESE (collectively “Initial
Stockholders”) and AMERICAN STOCK TRANSFER &
TRUST COMPANY, a New York corporation (“Escrow Agent”).

     WHEREAS, the Company has entered into an Underwriting Agreement, dated
                    , 2008
(“Underwriting Agreement”), with Citigroup
Global Markets Inc. (“Citigroup”) acting as
representative of the several underwriters (collectively, the “Underwriters”), pursuant to which,
among other matters, the Underwriters have agreed to purchase
12,500,000 units (“Units”) of the
Company, plus up to an additional 1,875,000 Units pursuant to an over-allotment option granted to
the Underwriters. Each Unit consists of one share of the Company’s common stock, par value $.0001
per share (“Common Stock”), and one warrant (“Warrant”) to purchase one share of Common Stock, all
as more fully described in the Company’s final Prospectus, dated                     , 2008 (“Prospectus”)
comprising part of the Company’s Registration Statement on Form S-1 (File No. 333-152758) under the
Securities Act of 1933, as amended (“Registration Statement”), declared effective on                     , 2008
(“Effective Date”).

     WHEREAS, the Initial Stockholders have agreed as a condition of the sale of the Units to
deposit their Units of the Company, as set forth opposite their respective names in Exhibit A
attached hereto (collectively “Escrow Securities”), in escrow as hereinafter provided.

     WHEREAS, the Company and the Initial Stockholders desire that the Escrow Agent accept the
Escrow Securities, 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 Securities. On or before the Effective Date, each of the Initial
Stockholders shall deliver to the Escrow Agent certificates representing his respective Escrow
Securities, to be held and disbursed subject to the terms and conditions of this Agreement. Each
Initial Stockholder acknowledges that the certificate representing his Escrow Securities is
legended to reflect the deposit of such Escrow Securities under this Agreement.

     3. Disbursement of the Escrow Securities. The Escrow Agent shall hold the Escrow
Securities until the date that is one year after the consummation of a Business Combination (as
defined in the Company’s amended and restated certificate of incorporation) (“Escrow Period”), on
which date it shall, upon written instructions from each Initial Stockholder and/or counsel to the
Company, disburse each of the Initial Stockholder’s Escrow Securities (and any applicable stock
power) 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 Securities held pursuant to this agreement; provided, further, that if the Underwriters do
not exercise their over-allotment option to purchase an additional
1,875,000 Units of the Company
(as described in the Prospectus) in full, the Initial Stockholders agree that no later than by the
end of the 45-day period in which the Underwriters may

 

 

exercise their over-allotment option, the Company shall give the Escrow Agent written notice
with respect to the amount, if any, of the over-allotment that was exercised by the Underwriters
and, upon such notice, the Escrow Agent shall return to the Company for cancellation, at no cost,
the number of Escrow Securities and Escrow Warrants held by each Initial Stockholder determined by
multiplying (a) the product of (i) 468,750, multiplied by (ii) a fraction, (x) the numerator of
which is the number of Escrow Securities held by each Initial Stockholder, and (y) the denominator
of which is the total number of Escrow Securities, by (b) a fraction, (i) the numerator of which is
1,875,000 minus the number of Units purchased by the Underwriters upon the exercise of their
over-allotment option, and (ii) the denominator of which is
1,875,000; provided further, however,
that if, after the Company consummates a Business Combination (as such term is defined in the
Company’s amended and restated certificate of incorporation), (i) it (or the surviving entity)
subsequently consummates a liquidation, merger, stock exchange or other similar transaction which
results in all of the stockholders of such entity having the right to exchange their shares of
Common Stock for cash, securities or other property or (ii) the last sales price of the Common
Stock equals or exceeds $13.25 per share for any 20 trading days within any 30-trading day period
after the consummation of the Business Combination, then the Escrow Agent will, upon receipt of a
certificate, executed by the Chairman of the Board, President or other authorized officer of the
Company, in form reasonably acceptable to the Escrow Agent, that such transaction is then being
consummated or such conditions have been achieved, as applicable, release the Escrow Securities to
the Initial Stockholders. The Escrow Agent shall have no further duties hereunder after the
disbursement or destruction of the Escrow Securities in accordance with this Section 3.

     4. Rights of Initial Stockholders in Escrow Securities.

          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 Securities. During the
Escrow Period, all dividends payable in cash with respect to the Escrow Securities 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 Securities” shall be deemed to include the Non-Cash Dividends
distributed thereon, if any.

          4.3 Restrictions on Transfer. During the escrow period, the only permitted transfers
of the Escrow Securities will be transfers (i) to the Company’s officers and directors, (ii) to an
entity’s members upon its liquidation, (iii) by bona fide gift to a member of an 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 for estate planning purposes, (iv) by virtue
of the laws of descent and distribution upon death of any Initial Stockholder, (v) pursuant to a
qualified domestic relations order or (vi) by private sales made at or prior to the consummation of
a Business Combination at prices no greater than the price at which the Escrow Securities were
originally purchased; 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
Securities.

          4.4 Insider Letters. Each of the Initial Stockholders has executed a letter agreement
with Citigroup and 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 Securities 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 Securities or it may deposit the Escrow Securities with the clerk of any appropriate
court or it may retain the Escrow Securities 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 Securities 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
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 reasonable 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 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, the Escrow Securities 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 Securities with any court it reasonably deems appropriate.

3

 

          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.

          5.8 Waiver. The Escrow Agent hereby waives any and all right, title, interest or
claim of any kind (each, a “Claim”) in or to any distribution of the Trust Account (as defined in
the Investment Management Trust Agreement dated as of the date hereof by and between the Company
and the Escrow Agent, as trustee thereunder) 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 Underwriters are third party beneficiaries of this Agreement and this Agreement may not be
modified or changed without the prior written consent of Citigroup.

          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.

          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,
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:

Gabelli Entertainment & Telecommunications Acquisition Corp.

140 Greenwich Avenue

Greenwich, Connecticut 06830

Attn: Mario J. Gabelli

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

and if to the Escrow Agent, to:

American Stock Transfer & Trust Company

59 Maiden Lane

4

 

New York, New York 10038

Attn: George Karfunkel

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

Graubard Miller

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attn: David Alan Miller, Esq.

and:

Citigroup
Global Markets Inc.

388 Greenwich St.

New York, New York 10013

Attn: David Spivak

and:

Greenberg Traurig, LLP

Met Life Building

200 Park Avenue

New York, New York 10166

Attn: Alan I. Annex, Esq.

     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 the 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.

          6.8 Counterparts. This Agreement may be executed in several counterparts, each one of
which may be delivered by facsimile transmission and each of which shall constitute an original,
and together shall constitute but one instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

5

 

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

	 	 	 	 	 
	 	GABELLI ENTERTAINMENT & TELECOMMUNICATIONS ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INITIAL STOCKHOLDERS:

GABELLI ACQUISITION, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	 	 	 
	 	 	FREDERIC V. SALERNO 	 
	 	 	 
	 
	 	 	 
	 	 	 	 
	 	 	MARIO J. GABELLI 	 
	 	 	 
	 
	 	 	 
	 	 	 	 
	 	 	CHRISTOPHER J. MARANGI 	 
	 	 	 
	 
	 	 	 
	 	 	 	 
	 	 	LAWRENCE J. HAVERTY, JR. 	 
	 
	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	 	 	 
	 	 	EUGENE R. MCGRATH	 
	 	 	 
	 
	 	 	 
	 	 	 	 
	 	 	ALFRED W. FIORE	 
	 	 	 
	 
	 	 	 
	 	 	 	 
	 	 	ROBERT FRIEDMAN	 
	 	 	 
	 
	 	 	 
	 	 	 	 
	 	 	VINCENT TESE	 
	 	 	 
	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

6

 

	 	 	 	 	 

EXHIBIT A

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Number	 	Unit	 	Date of
	Name and Address of Initial Stockholder	 	of Escrow Securities	 	Certificate Number	 	Insider Letter
	Gabelli Acquisition, LLC
	 	 	2,812,500	 	 	 	1	 	 	 	                    , 2008	 
	140 Greenwich Avenue 

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Frederic V. Salerno
	 	 	375,000	 	 	 	2	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications
Acquisition Corp. 

140 Greenwich Avenue 

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Mario J. Gabelli
	 	 	125,000	 	 	 	3	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications
Acquisition Corp. 

140 Greenwich Avenue 

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Christopher J. Marangi
	 	 	125,000	 	 	 	4	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications Acquisition Corp. 

140 Greenwich Avenue 

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Lawrence J. Haverty
	 	 	31,250	 	 	 	5	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications Acquisition Corp. 

140 Greenwich Avenue 

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Eugene R. McGrath
	 	 	31,250	 	 	 	6	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications Acquisition Corp.

140 Greenwich Avenue

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Alfred W. Fiore
	 	 	31,250	 	 	 	7	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications Acquisition Corp.

140 Greenwich Avenue

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Robert Friedman
	 	 	31,250	 	 	 	8	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications Acquisition Corp.

140 Greenwich Avenue

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 
	Vincent Tese
	 	 	31,250	 	 	 	9	 	 	 	                    , 2008	 
	c/o Gabelli Entertainment &

Telecommunications Acquisition Corp.

140 Greenwich Avenue

Greenwich, Connecticut 06830
	 	 	 	 	 	 	 	 	 	 	 	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]