EXHIBIT 10.9 INVESTMENT MANAGEMENT TRUST AGREEMENT

 

                                                                    EXHIBIT 10.9

 

 

                      INVESTMENT MANAGEMENT TRUST AGREEMENT

 

 

      This  Agreement  is  made  as of , 2005  by and  between  Platinum  Energy

Resources,  Inc. (the "Company") and Continental  Stock Transfer & Trust Company

("Trustee").

 

      WHEREAS, the Company's  Registration  Statement on Form S-1, No. _________

("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, Casimir Capital LP ("Casimir") 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,  $95,160,000 of the

gross  proceeds  of the IPO  ($109,434,000  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  Treasury  Bill issued by the United

States,  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 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;

 

 

<PAGE>

 

            (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 Casimir, 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.  The Trustee understands and

agrees that  disbursements from the Trust Account shall be made only pursuant to

a duly executed Termination Letter, together with the other documents referenced

herein.  In all cases,  the Trustee  shall  provide  Casimir  with a copy of any

Termination  Letters  and/or  any other  correspondence  that it  receives  with

respect to any proposed  withdrawal  from the Trust  Account  promptly  after it

receives same.

 

      2.    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 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;

 

 

                                       2

<PAGE>

 

            (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