Document:

Exhibit
10.7

 

INVESTMENT
MANAGEMENT TRUST AGREEMENT

 

This Agreement is made as of
                ,
2004 by and between International Shipping Enterprises, Inc. (the “Company”)
and Continental Stock Transfer & Trust Company (“Trustee”).

 

WHEREAS, the Company’s Registration
Statement on Form S-1,
No. 333-          
(“Registration Statement”), for its initial public offering of securities
(“IPO”) has been declared effective as of the date hereof by the Securities and
Exchange Commission (“Effective Date”); and

 

WHEREAS, Sunrise Securities Corp.
(“Sunrise”) is acting as the representative of the underwriters in the IPO; and

 

WHEREAS,
as described in the Company’s Registration Statement, and in accordance with
the Company’s Certificate of Incorporation, $92,310,000 of the gross proceeds
of the IPO ($106,692,000 if the underwriters over-allotment option is exercised
in full) will be delivered to the Trustee to be deposited and held in
a trust account for the benefit of the Company and the holders of the Company’s
common stock, par value $.0001 per share, issued in the IPO as hereinafter
provided and in the event the Units are registered in Colorado, pursuant to
Section 11-51-302(6) of the Colorado Revised Statutes. A copy of the
Colorado Statute is attached hereto and made a part hereof (the amount to be
delivered to the Trustee will be referred to herein as the “Property”; the
stockholders for whose benefit the Trustee shall hold the Property will be
referred to as the “Public Stockholders,” and the Public Stockholders and the
Company will be referred to together as the “Beneficiaries”); and

 

WHEREAS, the Company and the Trustee
desire to enter into this Agreement to set forth the terms and conditions
pursuant to which the Trustee shall hold the Property;

 

IT IS AGREED:

 

1.             Agreements
and Covenants of Trustee. 
The Trustee hereby agrees and covenants to:

 

(a)           Hold the Property in trust for
the Beneficiaries in accordance with the terms of this Agreement, including the
terms of Section 11-51-302(6) of the Colorado Statute, in a segregated
trust account (“Trust Account”) established by the Trustee at a branch of
JPMorgan Chase NY Bank selected by the Trustee;

 

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

 

(c)           In a timely manner, upon the
instruction of the Company, to invest and reinvest the Property in any
“Government Security.”  As used herein,
Government Security means any Treasury Bill issued by the United States, having
a maturity of one hundred and eighty days or less;

 

(d)           Collect and receive, when due,
all principal and income arising from the 

 

 

Property, which shall become part of
the “Property,” as such term is used herein;

 

(e)           Notify the Company of all
communications received by it with respect to any Property requiring action by
the Company;

 

(f)            Supply
any necessary information or documents as may be requested by the Company in
connection with the Company’s preparation of the tax returns for the Trust
Account;

 

(g)           Participate in any plan or proceeding
for protecting or enforcing any right or interest arising from the Property if,
as and when instructed by the Company to do so;

 

(h)           Render to the Company and to
Sunrise, 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 receipt of and only in accordance
with the terms of a letter (“Termination Letter”), in a form substantially
similar to that attached hereto as either Exhibit A or Exhibit B, signed
on behalf of the Company by its President or Chairman of the Board and
Secretary, 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.

 

2.             Agreements
and Covenants of the Company. 
The Company hereby agrees and covenants to:

 

(a)           Give all instructions to the
Trustee hereunder in writing, signed by the Company’s President or Chairman of
the Board.  In addition, except with
respect to its duties under paragraph 1(i) above, the Trustee shall be entitled
to rely on, and shall be protected in relying on, any verbal or telephonic
advice or instruction which it in good faith believes to be given by any one of
the persons authorized above to give written instructions, provided that the
Company shall promptly confirm such instructions in writing;

 

(b)           Hold the Trustee harmless and
indemnify the Trustee from and against, any and all expenses, including
reasonable counsel fees and disbursements, or loss suffered by the Trustee in
connection with any action, suit or other proceeding brought against the
Trustee involving any claim, or in connection with any claim or demand which in
any way arises out of or relates to this Agreement, the services of the Trustee
hereunder, or the Property or any income earned from investment of the
Property, except for expenses and losses resulting from the Trustee’s gross
negligence or willful misconduct. 
Promptly after the receipt by the Trustee of notice of demand or claim
or the commencement of any action, suit or proceeding, pursuant to which the
Trustee intends to seek indemnification under this paragraph, it shall notify
the Company in writing of such claim (hereinafter referred to as the
“Indemnified Claim”).  The Trustee shall
have the right to conduct and manage the defense against such Indemnified Claim,
provided, that the Trustee shall obtain the consent of the Company with respect
to the selection of counsel, which consent shall not 

 

2

 

be unreasonably withheld.  The Company may participate in such action
with its own counsel; and

 

(c)           Pay the Trustee an initial
acceptance fee of $1,000 and an annual fee of $3,000 (it being expressly
understood that the Property shall not be used to pay such fee).  The Company shall pay the Trustee the initial
acceptance fee and first year’s fee at the consummation of the IPO and
thereafter on the anniversary of the Effective Date.  The Trustee shall refund to the Company the
fee (on a pro rata basis) with respect to any period after the liquidation of
the Trust Fund.  The Company shall not be
responsible for any other fees or charges of the Trustee except as may be
provided in paragraph 2(b) hereof (it being expressly understood that the
Property shall not be used to make any payments to the Trustee under such
paragraph).

 

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

 

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

 

(b)           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 herein to do so and the Company shall have advanced or guaranteed to
it funds sufficient to pay any expenses incident thereto;

 

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

 

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

 

(e)           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;

 

(f)            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;

 

3

 

(g)           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

 

(h)           Pay any taxes on behalf of the
Trust Account (it being expressly understood that the Property shall not be
used to pay any such taxes and that such taxes, if any, shall be paid by the
Company from funds not held in the Trust Account).

 

4.             Termination.  This Agreement shall terminate as follows:

 

(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 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;

 

(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 2(b); or

 

(c)           On such date after
                  ,
2006 when the Trustee deposits the Property with the United States District
Court for the Southern District of New York in the event that, prior to such
date, the Trustee has not received a Termination Letter from the Company
pursuant to paragraph 1(i).

 

5.             Miscellaneous.

 

(a)           The Company and the Trustee
each acknowledge that the Trustee will follow the security procedures set forth
below with respect to funds transferred from the Trust Account.  Upon receipt of written instructions, the
Trustee will confirm such instructions with an Authorized Individual at an
Authorized Telephone Number listed on the attached Exhibit C.  The Company and the Trustee will each
restrict access to confidential information relating to such security
procedures to authorized persons.  Each
party must notify the other party immediately if it has reason to believe
unauthorized persons may have obtained access to such information, or of any
change in its authorized personnel.  In
executing funds transfers, the Trustee will rely upon account numbers or other
identifying numbers of a beneficiary, beneficiary’s bank or intermediary bank,
rather than names.  The Trustee shall not
be liable for any loss, liability or expense resulting from any error in an
account number or other identifying number, provided it has accurately
transmitted

 

4

 

the numbers provided.

 

(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 conflict of laws.  It may be executed in several 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.  This Agreement or
any provision hereof 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
Sunrise.  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 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:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Continental
  Stock Transfer

  
	
   

  	
   

  	
   

  	
  & Trust
  Company

  
	
   

  	
   

  	
   

  	
  17 Battery
  Place

  
	
   

  	
   

  	
   

  	
  New York,
  New York 10004

  
	
   

  	
   

  	
   

  	
  Attn:     Steven
  G. Nelson

  
	
   

  	
   

  	
   

  	
  Fax
  No.:  (212) 509-5150

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  if to the Company, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  International Shipping Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
  1225 Franklin Avenue, Suite 325

  
	
   

  	
   

  	
   

  	
  Garden City, New York 11530

  
	
   

  	
   

  	
   

  	
  Attn:     Angeliki Frangou, Chairman

  
	
   

  	
   

  	
   

  	
  Fax No.:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  in either case with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Sunrise Securities Corp.

  
	
   

  	
   

  	
   

  	
  641 Lexington Avenue, 25th
  Floor

  
	
   

  	
   

  	
   

  	
  New York, New York 10022

  
	
   

  	
   

  	
   

  	
  Attn:     Nathan
  Low, President

  
	
   

  	
   

  	
   

  	
  Fax No.:  (212) 750-7277

  

 

5

 

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

 

(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.

 

6

 

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

 

	
   

  	
  CONTINENTAL STOCK TRANSFER
  & TRUST

  COMPANY, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL SHIPPING ENTERPRISES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Angeliki Frangou

  
	
   

  	
   

  	
  Title:

  	
  Chairman

  
						

 

7

 

EXHIBIT A

 

	
  [Letterhead
  of Company]

  
	
   

  
	
   

  	
  [Insert
  date]

  	
   

  
	
   

  

 

Continental Stock Transfer

 
& Trust Company

17 Battery Place

New York, New York 10004

Attn: 
Steven Nelson

 

Re:          Trust
Account No.
                    Termination
Letter

 

Gentlemen:

 

Pursuant to paragraph 1(i)
of the Investment Management Trust Agreement between International Shipping
Enterprises, Inc. (“Company”) and Continental Stock Transfer & Trust Company
(“Trustee”), dated as of
              ,
2004 (“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 (a) the Business
Combination has been consummated and (b) the provisions of
Section 11-51-302(6) and Rule 51-3.4 of the Colorado Statute have been
met, and (ii) the Company shall deliver to you 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.

 

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.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL SHIPPING ENTERPRISES,
  INC.

  

 

8

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Angeliki Frangou, Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Vasiliki Papaefthymiou,
  Secretary

  

 

9

 

EXHIBIT B

 

	
  [Letterhead
  of Company]

  
	
   

  
	
   

  	
  [Insert
  date]

  	
   

  
	
   

  

 

Continental Stock Transfer

 
& Trust Company

17 Battery Place

New York, New York 10004

Attn:

 

Re:          Trust
Account No.
                    
Termination Letter

 

Gentlemen:

 

Pursuant
to paragraph 1(i) of the Investment Management Trust Agreement between
International Shipping Enterprises, Inc. (“Company”) and Continental Stock
Transfer & Trust Company (“Trustee”), dated as of
            , 2004
(“Trust Agreement”), this is to advise you that the Board of
Directors of the Company has voted to dissolve and liquidate the Trust
Account.  Attached hereto is a copy of
the minutes of the meeting of the Board of Directors of the Company relating
thereto, certified by the Secretary of the Company as true and correct and in
full force and effect.

 

In accordance with the terms of the
Trust Agreement, we hereby (a) certify to you that the provisions of
Section 11-51-302(6) and Rule 51-3.4 of the Colorado Statute have been met
and (b) authorize you, to commence liquidation of the Trust Account.  You will notify the Company and JPMorgan
Chase NY Bank (“Designated Paying Agent”) in writing as to when all of the
funds in the Trust Account will be available for immediate transfer (“Transfer
Date”).  The Designated Paying Agent
shall thereafter notify you as to the account or accounts of the Designated
Paying Agent that the funds in the Trust Account should be transferred to on
the Transfer Date so that the Designated Paying Agent may commence distribution
of such funds in accordance with the Company’s instructions.  You shall have no obligation to oversee the
Designated Paying Agent’s distribution of the funds.  Upon the payment to the Designated Paying
Agent of all the funds in the Trust Account, the Trust Agreement shall be
terminated.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  INTERNATIONAL SHIPPING ENTERPRISES,
  INC.

  
	
   

  	
   

  

 

10

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Angeliki Frangou, Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Vasiliki Papaefthymiou,
  Secretary

  	
   

  

 

11

 

EXHIBIT C

 

	
  AUTHORIZED INDIVIDUAL(S)

  	
   

  	
  AUTHORIZED

  
	
  FOR TELEPHONE CALL BACK

  	
   

  	
  TELEPHONE NUMBER(S)

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  International Shipping Enterprises, Inc.

  	
   

  	
   

  
	
  1225 Franklin Avenue, Suite 325

  	
   

  	
   

  
	
  Garden City, New York 11530

  	
   

  	
   

  
	
  Attn: 
  Angeliki Frangou

  	
   

  	
  (516) 240-8025

  
	
   

  	
   

  	
   

  
	
  Trustee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Continental Stock Transfer

  	
   

  	
   

  
	
   
  & Trust Company

  	
   

  	
   

  
	
  17 Battery Place

  	
   

  	
   

  
	
  New York, New York 10004

  	
   

  	
   

  
	
  Attn: 
  Steven G. Nelson, Chairman

  	
   

  	
  (212) 845-3200

  

 

12Exhibit 10.8

 

STOCK ESCROW AGREEMENT

 

STOCK ESCROW AGREEMENT, dated as of
                  ,
2004 (“Agreement”), by and among INTERNATIONAL SHIPPING ENTERPRISES, INC., a
Delaware corporation (“Company”), ANGELIKI FRANGOU, VASILIKI PAPAEFTHYMIOU,
SPYRIDON MAGOULAS, JULIAN DAVID BRYNTESON and JOHN STRATAKIS (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          ,
2004 (“Underwriting Agreement”), with Sunrise Securities Corp. (“Sunrise”)
acting as representative of the several underwriters (collectively, the
“Underwriters”), pursuant to which, among other matters, the Underwriters have
agreed to purchase 17,000,000 units (“Units”) of the Company.  Each Unit consists of one share of the
Company’s Common Stock, par value $.0001 per share, and two Warrants, each
Warrant to purchase one share of Common Stock, all as more fully described in
the Company’s final Prospectus, dated
           , 2004
(“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
                    ,
2004 (“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
Stockholder; provided, 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
stockholders of such entity having the right to exchange their shares of Common
Stock for cash, securities or other property, then the Escrow Agent will, upon
receipt of a certificate, executed by the Chief Executive Officer 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 Sunrise and the Company, dated as indicated on
Exhibit A hereto, and which is

 

2

 

filed as an exhibit to the Registration Statement (“Insider Letter”),
respecting the rights and obligations of such Initial Stockholder in certain
events.

 

5.             Concerning the Escrow Agent.

 

5.1           Good Faith Reliance.  The Escrow Agent shall not be liable for any
action taken or omitted by it in good faith and in the exercise of its own best
judgment, and may rely conclusively and shall be protected in acting upon any
order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Escrow Agent), statement, instrument, report or other
paper or document (not only as to its due execution and the validity and
effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained) which is believed by the Escrow Agent to be
genuine and to be signed or presented by the proper person or persons.  The Escrow Agent shall not be bound by any
notice or demand, or any waiver, modification, termination or rescission of
this Agreement unless evidenced by a writing delivered to the Escrow Agent
signed by the proper party or parties and, if the duties or rights of the
Escrow Agent are affected, unless it shall have given its prior written consent
thereto.

 

 5.2          Indemnification.  The Escrow Agent shall be indemnified and
held harmless by the Company from and against any expenses, including counsel
fees and disbursements, or loss suffered by the Escrow Agent in connection with
any action, suit or other proceeding involving any claim which in any way,
directly or indirectly, arises out of or relates to this Agreement, the services
of the Escrow Agent hereunder, or the Escrow Shares held by it hereunder, other
than expenses or losses arising from the gross negligence or willful misconduct
of the Escrow Agent.  Promptly after the
receipt by the Escrow Agent of notice of any demand or claim or the
commencement of any action, suit or proceeding, the Escrow Agent shall notify
the other parties hereto in writing.  In
the event of the receipt of such notice, the Escrow Agent, in its sole discretion,
may commence an action in the nature of interpleader in an appropriate court to
determine ownership or disposition of the Escrow Shares or it may deposit the
Escrow Shares with the clerk of any appropriate court or it may retain the
Escrow Shares pending receipt of a final, non-appealable order of a court
having jurisdiction over all of the parties hereto directing to whom and under
what circumstances the Escrow Shares are to be disbursed and delivered.  The provisions of this Section 5.2 shall
survive in the event the Escrow Agent resigns or is discharged pursuant to
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 its 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 Shares held hereunder.  If no new escrow agent is so appointed within
the 60 day period following the giving of such notice of resignation, the
Escrow Agent may deposit the Escrow Shares with any court it reasonably deems
appropriate.

 

5.6           Discharge of Escrow Agent.  The Escrow Agent shall resign and be
discharged from its duties as escrow agent hereunder if so requested in writing
at any time by the Company and a majority of the Initial Stockholders, jointly,
provided, however, that such resignation shall become effective only upon
acceptance of appointment by a successor escrow agent as provided in Section 5.5.

 

5.7           Liability.  Notwithstanding anything herein to the contrary, the Escrow Agent
shall not be relieved from liability hereunder for its own gross negligence or
its own willful misconduct.

 

6.             Miscellaneous.

 

6.1           Governing Law.  This Agreement shall for all purposes be
deemed to be made under and shall be construed in accordance with the laws of
the State of New York.

 

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 Sunrise.

 

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 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:

 

International Shipping Enterprises, Inc.

1225 Franklin Avenue, Suite 325

Garden City, New York 11530

Attn:   Chairman

 

4

 

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, New York 10004

Attn:  
Chairman

 

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

 

Gusrae,
Kaplan & Bruno, PLLC

120
Wall Street

11th
Floor

New
York, NY 10005

Attn:   Scott M. Miller, Esq.

 

 

and:

 

Sunrise
Securities Corp.

641
Lexington Avenue

25th
Floor

New
York, New York 10022

Attn:       Nathan Low, President

 

and:

 

Graubard
Miller

600
Third Avenue

32nd
Floor

New
York, New York 10016

Attn:       David Alan Miller, 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.

 

5

 

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

 

 

	
   

  	
  INTERNATIONAL SHIPPING ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Angeliki Frangou, Chairman, Chief

  
	
   

  	
  Executive

  Officer and President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INITIAL STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ANGELIKI FRANGOU

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VASILIKI PAPAEFTHYMIOU

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPYRIDON MAGOULAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JULIAN DAVID BRYNTESON

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JOHN STRATAKIS

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL STOCK TRANSFER

  
	
   

  	
    & TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
							

 

6

 

EXHIBIT
A

 

	
  Name and Address of

  Initial Stockholder

  	
   

  	
  Number

  of Shares

  	
   

  	
  Stock

  Certificate Number

  	
   

  	
  Date of

  Insider Letter

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Angeliki Frangou

  	
   

  	
  4,000,000

  	
   

  	
  1

  	
   

  	
  October 8, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vasiliki Papaefthymiou

  	
   

  	
  210,000

  	
   

  	
  2

  	
   

  	
  October 8, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Spyridon Magoulas

  	
   

  	
  15,000

  	
   

  	
  3

  	
   

  	
  October 8, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Julian David Brynteson

  	
   

  	
  15,000

  	
   

  	
  4

  	
   

  	
  October 8, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John Stratakis

  	
   

  	
  10,000

  	
   

  	
  5

  	
   

  	
  October 8, 2004

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]