EXHIBIT
10.10
INVESTMENT MANAGEMENT TRUST
AGREEMENT
This Agreement is made as of __________, 2005 by
and between Industrial Services Acquisition Corp. (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, Wedbush Morgan Securities Inc.
(“Wedbush”) 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, as amended or restated and in effect
on the date hereof, $______ of the gross proceeds of the IPO
($______ 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;
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 written
instruction of the Company, invest and reinvest the Property in any
Government Security 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. 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
Wedbush, and to such other person as the Company may instruct in
writing, monthly written statements of the activities of and
amounts in the Trust Account reflecting all receipts and
disbursements of the Trust Account;
(i)
If there is any income tax
obligation relating to the income of the Property in the Trust
Account, then, at the written instruction of the Company, the
Trustee shall issue a check directly to the taxing authorities
designated by the Company, out of the Property in the Trust
Account, in the amount indicated by the Company as owing to each
such taxing authority; and
(j)
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 Chief
Executive Officer, President or Chairman of the Board, Secretary
and a non-management member of its board of directors, 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 Wedbush 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 Chief Executive
Officer, 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 Account.
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