Document:

EXHIBIT 10.7

 

FORM OF INVESTMENT
MANAGEMENT TRUST AGREEMENT

 

This Agreement is made as of [            ]
[    ], 2007 by and between Information Services Group, Inc.
(the “Company”) and Continental Stock Transfer & Trust Company
(the “Trustee”).

 

WHEREAS, the Company’s Registration Statement on Form S-1,
as amended, No. 333-136536 (together with any registration statement filed
pursuant to Rule 462(b), the “Registration Statement”), for its
initial public offering of securities (the “IPO”) has been declared
effective as of the date hereof by the Securities and Exchange Commission (the “Effective
Date”); and

 

WHEREAS, Deutsche Bank Securities Inc. and Morgan
Joseph & Co. Inc. are acting as the underwriters (the “Underwriters”)
in the IPO; and

 

WHEREAS, the Company has completed a private placement
of 6,000,000 securities for an aggregate purchase price of $6,000,000 (the “Private
Placement”);and

 

WHEREAS, as described in the Registration Statement,
and in accordance with the Company’s Certificate of Incorporation, $148,650,000
(inclusive of the Deferred Discount as defined below) of the proceeds of the
IPO and the sale of securities in a private placement simultaneously with the
IPO ($170,250,000 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 $0.001 per share, issued in the IPO (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, a portion of the Property consists of
$4,500,000 (or $5,175,000 if the Underwriter’s over-allotment option is
exercised in full) attributable to the Underwriters’ discount (“Deferred
Discount”) which the Underwriters have agreed to deposit in the Trust
Account (defined below); 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 (“Trust Account”)
established by the Trustee at a branch of [                          ]
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 written instruction of the Company, to invest and
reinvest the Property in any “Government Security” within the meaning of Section 2(a)(16)
of the Investment Company Act of 1940, as amended, having a maturity of 180
days or less, or in money market funds selected by the Company meeting the
conditions specified in Rule 2a-7 promulgated under the Investment Company
Act of 1940, as amended, as determined by the Company;

 

(d)                                 Collect
and receive, when due, all principal and income arising from the Property,
which income, net of taxes, 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
which communications require that notice be given by the Company or action be
taken 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 in writing
to do so;

 

(h)                                 Render
to the Company and to the Underwriters, 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;

 

(i)                                     Until
such time as the Trustee shall have disbursed an aggregate amount equal to
$3,000,000 to the Company (net of any expenses of the Trustee payable pursuant
to Section 3(c) and any income or other tax obligations relating to
the income from the Property in the Trust, the amount of such tax obligations
as determined by the Company), the Trustee shall disburse to the Company, on
the first business day of each calendar month, in cash, the amount of any
interest income earned on the Trust Account. Following such time as the Trustee
shall have disbursed an amount equal to $3,000,000 to the Company (net of any
expenses of the Trustee payable pursuant Section 3(c) and any income
or other tax obligations relating to the income from the Property in the Trust,
the amount of such tax obligations as determined by the Company), if there is
any income or other tax obligation relating to the income from the Property in
the Trust Account as determined by the Company, then, from time to time, at the
written instruction of the Company, the Trustee shall promptly to the extent
there is not sufficient cash in the Trust Account to pay such tax obligation,
liquidate such assets held in the Trust Account as shall be designated by the
Company in writing, and disburse to the Company by wire transfer, out of the
Property in the Trust Account, the amount indicated by the Company as owing in
respect of such income tax obligation; and

 

2

 

(j)                                     Commence
liquidation of the Trust Account only upon receipt of and only in accordance
with the terms of a letter (the “Termination Letter”), in a form substantially
similar to that attached hereto as either Exhibit A or Exhibit B
as the case by be, signed on behalf of 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. The Trustee shall provide the Underwriters with a copy of
any Termination Letter and/or any other correspondence that it receives with
respect to any proposed withdrawal from the Trust Account promptly after it
receives the same.

 

2.                                       Limited Distributions Of Income From Trust Account.

 

Each of the parties hereto hereby acknowledge and
agree that no distributions from the Trust Account shall be permitted except in
accordance with Sections 1(i) and 1(j) hereof.

 

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 an officer of
the Company. In addition, except with respect to its duties under Sections 1(i) and
1(j) 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)                                 Subject
to the provisions of Section 6 hereof, 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 and the
nature, basis and amount of such claim to the extent then known (hereinafter
referred to as the “Indemnified Claim”). The Company shall have the
right to conduct and manage the defense against such Indemnified Claim,
provided, that the Company shall obtain the consent of the Trustee with respect
to the selection of counsel, which consent shall not be unreasonably withheld. The
Trustee shall be entitled to participate in such action with its own counsel;

 

(c)                                  Pay
the Trustee an initial acceptance fee, an annual fee and a transaction
processing fee for each disbursement made pursuant to Section 1(i) as
set forth on Schedule A hereto, 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 and further agreed that said
transaction processing fees shall be deducted by the Trustee from the
disbursements made to the Company pursuant to Section 1(i). The Company
shall pay the Trustee the initial acceptance

 

3

 

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)                                 Provide
to the Trustee any letter of intent, agreement in principle or definitive
agreement that is executed prior to [        ,
              ]
in connection with a business combination as described in and contemplated by
the Registration Statement ( a “Business Combination”); and

 

(e)                                  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 tabulating
stockholder votes (which firm may be the Trustee) verifying the vote of
the Company’s stockholders regarding such Business Combination.

 

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

 

(a)                                  to
take any action with respect to the Property, other than as directed in Section 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)                                 to
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 written
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)                                  to
change the investment of any Property, other than in compliance with Section 1(c);

 

(d)                                 to
refund any depreciation in principal of any Property;

 

(e)                                  to
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)                                    to
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, judgment, instruction, 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

 

4

 

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;

 

(g)                                 in
respect of 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;

 

5.                                       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 that arises due to any actions or
omissions to act by any party after such deposit; or

 

(b)                                 At
such time that the Trustee has completed the liquidation of the Trust Account
in accordance with the provisions of Section 1(j) hereof, and distributed
the Property in accordance with the provisions of the Termination Letter, this
Agreement shall terminate.

 

6.                                       Waiver.

 

Notwithstanding anything herein to the
contrary, the Trustee hereby waives any
and all right, title, interest or claim of any kind (“Claim”) in or
to any distribution of 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.

 

7.                                       Miscellaneous.

 

(a)                                  The
Company and the Trustee each acknowledge and agree 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

 

5

 

liable for any loss, liability
or expense resulting from any error in an account number or other identifying
number, provided it has accurately transmitted the numbers so provided to it.

 

(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 the conflicts of
law principles thereof. It may be executed in one or more
counterparts, each of which shall constitute an original, and together shall
constitute one and the same instrument.

 

(c)                                  This
Agreement contains the entire agreement and understanding of the parties hereto
with respect to the subject matter hereof. The parties hereto may change,
waive, amend or modify any provision contained herein that may be
defective or inconsistent with any other provision contained herein only upon
the written consent of each of the parties hereto; provided that such action
shall not materially adversely affect the interests of the Public Stockholders.
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

8th Floor

New York, New York  10004

Attn: [                            ]

Fax: [                    ]

 

if to the Company, to:

 

Information Services Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

Attn: Michael P. Connors

Fax:

 

with copies to:

 

Information Services Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

 

6

 

Attn:  Earl H.
Doppelt

Fax:

 

and

 

Kaye Scholer LLP

425 Park Avenue

New York, NY  10022

Attn: Emanuel S. Cherney, Esq.

Fax: (212) 836-8689

 

in either case with a copy on behalf of the
Underwriters to:

 

Deutsche Bank Securities Inc.

60 Wall Street NYC 60-1001

New York, NY  10005

Attn: Syndicate Manager

Fax: (212) 797-9344

 

Morgan Joseph & Co., Inc.

[                                ]

[                                ]

[                                ]

 

Lazard Capital Markets, LLC

[                                ]

[                                ]

[                                ]

 

with a copy to:

 

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, NY  10036

Attn: Christopher S. Auguste, Esq.

Fax: (212) 715-8000

 

(f)                                    This
Agreement may not be assigned by the Trustee without the prior written 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 part of the
Property under any circumstance.

 

7

 

(h)                                 The
Trustee hereby consents to the inclusion of Continental Stock Transfer &
Trust Company in the Registration Statement and other materials relating to the
IPO.

 

(i)                                     The
Underwriters shall be third party beneficiaries of this Agreement and this
Agreement may not be modified or changed without the prior written consent
of Deutsche Bank Securities Inc.

 

[Signature page follows]

 

8

 

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:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INFORMATION SERVICES
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael P. Connors

  
	
   

  	
   

  	
  Title:

  	
  Chairman and

  
	
   

  	
   

  	
   

  	
  Chief Executive Officer

  
					

 

9

 

EXHIBIT A

 

[LETTERHEAD OF COMPANY]

 

[INSERT DATE]

 

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York  10004

Attn: [                              ]

 

Re:                               Trust
Account No. [                      ]
Termination Letter

 

Gentlemen:

 

Pursuant to Section 1(j) of the Investment
Management Trust Agreement between Information Services Group, Inc. (the “Company”)
and Continental Stock Transfer & Trust Company (the “Trustee”),
dated as of                           ,
2007 (the “Trust Agreement”), this is to advise you that the Company has
entered into an agreement (“Business Agreement”) with                                     
(the “Target Business”) to consummate a business combination with Target
Business (a “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 (the “Consummation Date”). Capitalized
terms used but not otherwise defined herein shall have the meaning ascribed to
such terms in the Trust Agreement.

 

Pursuant to Section 3(e) of the Trust
Agreement, we are providing you with [an affidavit] [a certificate] of                                     ,
which verifies the vote of the Company’s stockholders in connection with the
Business Combination. 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 the funds held in the Trust Account will
be immediately available for transfer to the account or accounts that the
Company shall direct in writing 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 and (ii) the Company shall deliver to you written
instructions with respect to the transfer of the funds held in the Trust
Account (the “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 be
distributed after the Consummation Date to the Company or, with respect to the
Deferred Discount, to the Underwriters. Upon the distribution of all the funds
in the Trust Account pursuant to the terms hereof, the Trust Agreement shall
automatically terminated and cease to have any further force or effect.

 

 

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,

  
	
   

  	
   

  
	
   

  	
  INFORMATION SERVICES
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT B

 

[LETTERHEAD OF COMPANY]

 

[INSERT DATE]

 

Continental Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York  10004

Attn: [                                ]

 

Re:                               Trust
Account No. [                  ]
Termination Letter

 

Gentlemen:

 

Pursuant to paragraph 1(j) of the Investment
Management Trust Agreement between Information Services Group, Inc. (the “Company”)
and Continental Stock Transfer & Trust Company (the “Trustee”), dated
as of                           ,
2007 (the “Trust Agreement”), this is to advise you that the Company has
been dissolved due to the Company’s inability to effect a Business Combination
within the time frame specified in the Company’s prospectus relating to its
IPO.

 

Attached hereto is a certified copy of the Certificate
of Dissolution as filed with the Delaware Secretary of State. Defined terms
used but not otherwise defined herein shall have the meaning ascribed to such
terms in the Trust Agreement.

 

In accordance with the terms of the Trust Agreement,
we hereby authorize you to commence liquidation of the Trust Account. You will
notify the Company and [                              ]
(the “Designated Paying Agent”) in writing as to when all of the funds
in the Trust Account will be available for immediate transfer (the “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 terminate in accordance with the terms thereof.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  INFORMATION SERVICES
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT C

 

AUTHORIZED INDIVIDUAL(S) AND
TELEPHONE NUMBERS

 

AUTHORIZED FOR TELEPHONE
CALL BACK

 

COMPANY:                              Information
Services Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

Attn: Michael P. Connors

Telephone: (203) 517-3100

 

Information
Services Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

Attn: Earl H. Doppelt

Telephone: (203) 517-3100

 

TRUSTEE:                                       Continental
Stock Transfer & Trust Company

17 Battery Place

8th Floor

New York, New York  10004

Attn: [                                ]

Telephone: [                      ]

 

 

SCHEDULE A

 

Schedule of fees pursuant to Section 3(c) of
Investment Management Trust Agreement between Information Services Group, Inc.
and Continental Stock Transfer & Trust Company

 

	
  FEE ITEM

  	
   

  	
  TIME AND METHOD OF PAYMENT

  	
   

  	
  AMOUNT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Initial
  acceptance fee

  	
   

  	
  Initial closing
  of IPO by wire transfer

  	
   

  	
  $[        ]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual fee

  	
   

  	
  First year,
  initial closing of IPO by wire transfer; thereafter on the anniversary of the
  effective date of the IPO by wire transfer or check

  	
   

  	
  $[        ]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transaction
  processing fee for disbursements to Company under Section 1(i)

  	
   

  	
  Deduction by
  Trustee from disbursement made to Company under Section 1(i)

  	
   

  	
  $[        ]

  

 

 

	
   

  	
  Agreed:

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:
  [                        
        , 200  ]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Information Services
  Group, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Continental Stock
  Transfer & Trust Co.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  OfficerEXHIBIT 10.8

 

FORM OF
STOCK ESCROW AGREEMENT

 

This Stock Escrow Agreement (this “Agreement”)
is made and entered into as of [                ], 2007,
by and among Continental Stock Transfer and Trust Company, a New York
corporation (“Escrow Agent”), Information Services Group, Inc., a
Delaware corporation (the “Company”), and the stockholders of the
Company (collectively, the “Stockholders”) and Oenoke Partners, LLC (“Oenoke”),
with reference to the following facts:

 

A.                                   The
Company has entered into an Underwriting Agreement dated [                ],
2007 (“Underwriting Agreement”), with Deutsche Bank Securities, Inc.,
acting as representative (“Representative”) of the underwriters
(collectively, the “Underwriters”), pursuant to which, among other
matters, the Underwriters have agreed to purchase 18,750,000 units (“Units”)
to be issued by the Company. Each Unit consists of one share of the Company’s
common stock, par value $.0001 per share (“Common Stock”), and one
warrant (“Warrant”), and each Warrant entitles the holder thereof to
purchase one share of Common Stock for an exercise price of $6.00, all as more
fully described in the Company’s final prospectus, dated [                  ],
2007 (“Prospectus”) comprising part of the Company’s Registration
Statement on Form S-1 (File No. 333-136536) under the Securities Act
of 1933, as amended (“Registration Statement”).

 

B.                                     Oenoke
owns                
shares of Common Stock and the other Stockholders own an aggregate of               
shares of Common Stock.

 

C.                                     The
Company has also entered into a Private Placement Securities Purchase Agreement
dated as of [                      ],
2007 with Oenoke (the “Private Placement Agreement”), pursuant to which
Oenoke has agreed to purchase an aggregate of 6,000,000 warrants in a form substantially
identical to the warrants provided in the Units being offered by the
Underwriters.

 

D.                                    In
order to facilitate the public offering of the Units, (i) the Stockholders
have agreed to deposit all shares of Common Stock they own as of the date
hereof (the “Escrow Shares”), and (ii) Oenoke has agreed to deposit
all warrants it is to purchase pursuant to the Private Placement Agreement (the
“Escrow Warrants”, and together with the Escrow Shares, the “Escrow
Securities”) in escrow as hereinafter provided.

 

E.                                      The
Company and the Stockholders desire that the Escrow Agent accept the Escrow
Securities, in escrow, to be held and disbursed as hereinafter provided.

 

NOW, THEREFORE, with reference to the foregoing facts,
the parties agree as follows:

 

 

1.                                       Appointment
of Escrow Agent

 

. The Company and the 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 of the Registration
Statement, the Stockholders (or the Company on behalf of any or all of the
Stockholders) shall each deliver to the Escrow Agent a certificate or
certificates representing their Escrow Securities, to be held and disbursed
subject to the terms and conditions of this Agreement. The Stockholders
acknowledge that the certificate or certificates representing their Escrow
Securities are legended to reflect that such Escrow Securities are subject to
the terms and conditions of this Agreement.

 

3.                                       Disbursement
of the Escrow Securities.

 

3.1                                 The
Escrow Agent shall hold the Escrow Securities from the date of delivery until
the Release Date (the “Escrow Period”).

 

3.2                                 For
purposes of this Agreement:

 

3.2.1                        “Business
Combination” shall mean a merger, capital stock exchange, asset or stock
acquisition or other similar business combination with one or more operating
businesses.

 

3.2.2                        “Release
Date” shall mean the earliest to occur of: (a) (i) that date
which is one year following the closing of the Business Combination; (b) the
Sale Date; and (c) the Trust Account Liquidation Date.

 

3.2.3                        “Sale
Date” shall mean the date after completion of a Business Combination on
which a Stockholder Liquidation Event occurs.

 

3.2.4                        “Stockholder
Liquidation Event” shall mean, after the completion of a Business
Combination:  (a) the merger,
consolidation, reorganization or similar transaction involving the Company (or a
successor to the Company) in which the common stockholders of the Company (or
such successor) have the right to exchange their shares of Common Stock (or
successor securities) for cash, securities or other property, but excluding a
reorganization in which the common stockholders exchange their shares for
shares of a newly formed holding company and have substantially the same
proportionate interests in the holding company that they had in the Company (or
successor); (b) the liquidation of the Company; or (c) the sale of
all or substantially all of the assets of the Company.

 

3.2.5                        “Trust
Account” shall mean a trust account at Deutsche Bank Trust Company
Americas, maintained by Continental Stock Transfer & Trust Company,
acting as trustee.

 

3.2.6                        “Trust
Account Liquidation Date” shall mean a date prior to the completion of a
Business Combination upon which the Trust Account is liquidated and the funds
in the Trust Account are distributed to the beneficial owners of the Trust
Account.

 

2

 

3.3                                 Upon
any applicable Release Date, the Escrow Agent shall disburse to each of the
Stockholders, their respective Escrow Securities (for which the Release Date
has occurred) to the address on record of each of the Stockholders, or as may otherwise
be directed by any of the Stockholders in writing.

 

3.4                                 The
Company agrees to notify the Escrow Agent in advance of any anticipated
Stockholder Liquidation Event or Trust Account Liquidation Date and upon the
occurrence thereof. The Escrow Agent shall be entitled to rely upon a
certificate (the “Officer’s Certificate”), executed by the Chairman and
Chief Executive Officer of the Company, in form reasonably acceptable to
the Escrow Agent, that certifies that the Release Date has occurred, and shall
not be required to disburse the Escrow Securities unless and until it receives
the Officer’s Certificate.

 

4.                                       Rights
of the Stockholders in Escrow Securities.

 

4.1                                 Rights
as a Stockholder. Except as provided in this Section 4
and the Insider Letters (as defined below), the Stockholders shall retain all
of their rights as security-holders of the Company with respect to their Escrow
Securities during the applicable Escrow Periods, including, without limitation:

 

4.1.1                        the
right to vote; and

 

4.1.2                        the
right to receive dividends and distributions, if any, with cash dividends paid
to the Stockholders and dividends paid in stock or other non-cash property (“Non-Cash
Dividends”) delivered to the Escrow Agent to hold in accordance with the
terms hereof (and the term “Escrow Securities “shall be deemed to include any
Non-Cash Dividends distributed with respect to any Escrow Securities held by
the Escrow Agent prior to the distribution).

 

4.2                                 Restrictions
on Transfer. During the applicable Escrow Period, the
Stockholders agree not to sell, transfer or assign any or all of their Escrow
Securities (for which Release Date has not occurred) except in the case of
Oenoke to its members. Notwithstanding the foregoing, the Stockholders may transfer
any of their Escrow Securities to their respective ancestors, descendants or
spouse or to trusts established for the benefit of such persons or the member,
or to affiliated companies; provided, however, that any 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 as a stockholder and of the Insider Letter signed by transferring
Stockholder. During the applicable Escrow Period, the Stockholders each agree
that they may not pledge or grant a security interest in the Escrow
Securities or grant a security interest in their rights under this Agreement.

 

4.3                                 Insider
Letters. Each of the Stockholders has executed a
letter agreement with the Representative and the Company, dated as indicated on
Exhibit A hereto, and which is filed as an exhibit to the
Registration Statement (“Insider Letter”), respecting their rights and
obligations in certain events, including but not limited to the liquidation of
the Company.

 

3

 

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 Company agrees to indemnify and hold the Escrow Agent harmless from and
against any expenses, including counsel fees and disbursements, or losses
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 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 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 giving the other parties hereto written

 

4

 

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.

 

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 the holders of a majority of the Escrow
Securities, 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 willful
misconduct.

 

5.8                                 Waiver.
Notwithstanding anything herein to the contrary, the Escrow Agent hereby waives any and all right, title, interest
or claim of any kind (“Claim”) in or to any distribution of 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, without giving effect to conflicts of law principles that would result in
the application of the substantive laws of another jurisdiction.

 

6.2                                 Entire
Agreement. This Agreement together with the Insider
Letters 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. This Agreement may be executed in one or more counterparts,
each of which shall constitute an original, and together shall constitute one
and the same instrument.

 

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

 

6.4                                 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.

 

6.5                                 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 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:

 

5

 

If to the Company, to:

 

Information Services
Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

Attention:  Michael P. Connors

Facsimile:

 

with a copy to:

 

Information Services
Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

Attention:  Earl H. Doppelt

Facsimile:

 

If to any of the Stockholders to:

 

c/o Information Services Group, Inc.

Four Stamford Plaza

107 Elm Street

Stamford, CT 06902

Attention:  Michael P. Connors

Facsimile:

 

and if to the Escrow Agent, to:

 

Continental Stock Transfer &
Trust Company

17 Battery Place

New York, New York  10004

Attn:  Chairman

Facsimile:

 

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

 

Deutsche Bank Securities, Inc.

[                                              ]

New York, New York  100    

Attn:                                    

Facsimile:

 

6

 

and:

 

Kaye Scholer LLP

425 Park Avenue

New York, NY  10022

Attn:  Emanuel Cherney, Esq.

Facsimile:  (212) 836-8689

 

and:

 

Kramer Levin Naftalis &
Frankel LLP

1177 Avenue of the Americas

New York, NY 10036 

Attn:  Christopher S. Auguste, Esq.

Facsimile:

 

Any party may change the person and address 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.

 

6.6                                 Third
Party Beneficiaries. Each of the Stockholders and Oenoke
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 the Representative.

 

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 and a liquidation and dissolution of
the Company is effectuated.

 

7

 

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

 

	
   

  	
  INFORMATION SERVICES
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Michael P. Connors,
  Chairman and Chief

  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CONTINENTAL STOCK
  TRANSFER

  
	
   

  	
     &
  TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OENOKE PARTNERS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Michael Connors,
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OTHER STOCKHOLDERS OF
  INFORMATION

  SERVICES GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
					

 

 

Exhibit A

 

[Form of
Insider Letter]

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