EXHIBIT 10.12 INVESTMENT MANAGEMENT TRUST AGREEMENT

 

                                                                   EXHIBIT 10.12

 

                      INVESTMENT MANAGEMENT TRUST AGREEMENT

                      -------------------------------------

 

              This  Agreement is made as of  _____________,  2005 by and between

Manhattan  Maritime  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,  Ladenburg Thalmann & Co. Inc. ("Ladenburg") 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 Certificate of Incorporation,  $103,880,000 of the

gross  proceeds  of the IPO  ($119,954,000  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;

 

              (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  United  States  "government securities"

within  the meaning of Section  2(a)(16) of the  Investment  Company Act of 1940

having a maturity of 180 days or less, or in any open ended  investment  company

registered  under the Investment  Company Act of 1940 that holds itself out as a

money market fund meeting the conditions of paragraphs (c)(2), (c)(3) and (c)(4)

of Rule 2a-7 promulgated under the Investment Company Act of 1940;

 

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

arising from the

 

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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  Ladenburg,  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  or Assistant  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 be  unreasonably  withheld.  The  Trustee  may not agree to settle any

Indemnified Claim without the prior written consent of the Company.  The Company

may participate in such action with its own counsel; and

 

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              (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