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EXHIBIT 10.3
ESCROW AGREEMENT
TO: European American Bank
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: Financial Institutions North America
The following property is to be deposited with you as Escrow
Agent in one or more Money Market Accounts which shall be entitled "▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇ Diversified 2000 Futures Fund L.P." (Escrow Accounts):
All proceeds of subscriptions (the "Escrow Property") for
Units of Limited Partnership Interest ("Units") in ▇▇▇▇▇▇▇ ▇▇▇▇▇ BARNEY
DIVERSIFIED 2000 FUTURES FUND L.P., a New York limited partnership (the
"Partnership"), received by ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Inc. ("SSB"), Selling Agent for
the Partnership, or additional selling agents appointed by SSB. SSB shall
deliver to all such prospective subscribers interim receipts for the amount of
the funds deposited in this escrow.
As Escrow Agent, you are hereby directed to hold, deal with
and dispose of the Escrow Property and any other property at any time held by
you hereunder subject to the terms and conditions hereinafter set forth:
1. During the Initial Offering Period (as defined in Paragraph
6 below), all Escrow Property (up to the collected balances in the account or
accounts and as the balances become collected in the account or accounts)
deposited with the Escrow Agent and any interest earned thereon (which shall
also be part of the Escrow Property) shall be paid over and delivered to the
Partnership as directed by written notice by ▇▇▇▇▇ ▇▇▇▇▇▇ Futures Management
Inc., general partner of the Partnership (the "General Partner"), as soon as
practicable after receipt by the Escrow Agent of such written notice in
accordance with Paragraph 2 below. In the event the General Partner has directed
you to operate two bank money market accounts for the Partnership, such request
shall specify the account from which the Escrow Property should be paid over and
delivered to the Partnership.
2. If subscriptions for Units in the aggregate value of
$15,000,000 have been received during the Initial Offering Period (as defined in
Paragraph 6 below), as evidenced by an affidavit of the General Partner
attesting to said fact, the Escrow Property shall be paid over and delivered to
the Partnership as soon as practicable after the receipt of the written request
of the General Partner. Any interest earned on the Escrow Property (which shall
also be part of the Escrow Property) shall be returned by the General Partner
directly to each subscriber in proportion to their respective subscriptions and
to the period their respective subscriptions were held in escrow. During the
Continuous Offering Period (as defined in Paragraph 6 below), all Escrow
Property deposited with the Escrow
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Agent and any interest earned thereon (which shall also be part of the Escrow
Property) shall be paid over and delivered to the Partnership on the first day
of the month succeeding the request. Any such request shall be made sufficiently
in advance of the first day of a month to provide sufficient time for the Escrow
Agent to process the request for delivery to the Partnership on the first day of
the month. If subscriptions for Units in the aggregate value of $15,000,000 have
not been received during the Initial Offering Period, as evidenced by an
affidavit of the General Partner attesting to said fact, the Escrow Property
will be paid over and delivered by the Escrow Agent directly to subscribers as
soon as practicable after receipt of written directions from the General
Partner.
3. Prior to delivery of the Escrow Property to the Partnership
as described in Paragraph 2 above, the Partnership shall have no title to or
interest in the funds on deposit, and such funds shall under no circumstances be
subject to the payment or satisfaction of the liabilities or indebtedness of the
Partnership.
4. The Escrow Agent shall cause all funds deposited with it
pursuant to this Escrow Agreement to be maintained and invested as the General
Partner shall from time to time direct by written instructions delivered to the
Escrow Agent, in an interest-bearing money market account or accounts, which can
be readily liquidated on twenty-four hours notice, in an amount equal to the
collected balances in the account or accounts, as permitted under the Securities
and Exchange Commission's Rule 240.15c2-4.
5. Within 15 days of receipt of a subscription agreement, the
General Partner may notify the Escrow Agent that a subscription agreement of a
subscriber has not been accepted, and the General Partner may direct the Escrow
Agent by written instruction to return any funds held in the escrow for the
benefit of such subscriber directly to such subscriber, together with such
subscriber's proportionate share of any interest earned on the Escrow Property
during the period such funds were held in the escrow.
6. The Initial Offering Period for the Units shall mean a
period of 90 days commencing on the date the Partnership's Registration
Statement is declared effective unless the General Partner terminates the
offering at an earlier date or extends the Initial Offering Period for up to an
additional 60 days in which case the Initial Offering Period shall mean such
period as so terminated or extended. The General Partner shall provide the
Escrow Agent with prompt written notice of any such termination or extension.
The Continuous Offering Period for the Units shall mean a period commencing on
the termination of the Initial Offering Period (if at least 15,000 Units are
sold during the Initial Offering Period) and ending upon the sale of 150,000
Units.
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7. Any of the persons whose names and signatures appear on
Schedule 1 annexed hereto are authorized by the General Partner to deliver any
instruction or notice to the Escrow Agent required or permitted by this Escrow
Agreement.
8. (a) As Escrow Agent hereunder, you shall have no duties or
responsibilities except those expressly set forth herein. The Escrow Agent shall
act hereunder merely as a depository and in a ministerial capacity. The Escrow
Agent shall not be deemed to be a trustee for any person. In the event checks
are received which represent proceeds of subscriptions, Escrow Agent will
deposit the checks for collection, but shall be under no duty to enforce the
collection of any check. The Escrow Agent shall not be responsible for the form,
terms, validity or negotiability of the checks, the validity of any signature on
any check, or the authority of any person to sign or issue any check.
(b) The Escrow Agent may consult with counsel and shall be
fully protected with respect to any action taken or omitted by it in good faith
on advice of counsel and you shall have no liability hereunder except for your
bad faith or negligence. You shall have no responsibility as to the validity or
value of the Escrow Property and you may rely on any certificate, statement,
request, consent, agreement or other instrument which you believe to be genuine
and to have been signed or presented by a proper person or persons. You shall
not be bound by any modification of this Escrow Agreement unless in writing and
signed by all parties hereto and actually received by you and, if your duties as
Escrow Agent hereunder are affected, unless you shall have given prior written
consent thereto. In the event that you shall be uncertain as to your duties or
rights hereunder or shall receive instructions from any of the undersigned with
respect to the Escrow Property which, in your opinion, are in conflict with any
of the provisions of this Escrow Agreement, you shall be entitled to refrain
from taking any action other than to retain the Escrow Property until you shall
be directed otherwise in writing by the unanimous consent of the parties hereto
or by final order of a court of competent jurisdiction.
(c) The Escrow Agent may, at its own discretion, refuse to
accept any deposits lacking the required documentation or containing
discrepancies.
(d) In any event when the Escrow Agent receives disbursement
instructions, it is expressly understood and agreed that the Escrow Agent shall
not be required to make any such disbursement until such amount is, to the
Escrow Agent's satisfaction, available in cleared funds. Further, in no event
shall the aggregate amount of payments made by the Escrow Agent exceed the
amount of Escrow Property.
9. Any notice which the Escrow Agent is required or desires to
give hereunder to any of the undersigned shall be in
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writing and shall be deemed to have been duly given on the date of service if
served personally on the party to whom notice is to be given, on the following
day if given by telegram, or on the third day after mailing if mailed to the
party to whom notice is to be given by first class mail, registered or certified
with return receipt requested, postage prepaid, and properly addressed as
follows:
To: ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ Diversified 2000 Futures Fund L.P. and
▇▇▇▇▇ ▇▇▇▇▇▇ Futures Management Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - 1st floor
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇. ▇▇▇▇▇ ▇. ▇▇▇▇▇
To: ▇▇▇▇▇▇▇ ▇▇▇▇▇ Barney Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - 1st floor
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇. ▇▇▇▇▇ ▇. ▇▇▇▇▇
Notices to the Escrow Agent shall be in writing and shall not be deemed to be
given until actually received by the Escrow Agent. Whenever under the terms
hereof the time for giving a notice or performing an act falls upon a Saturday,
Sunday or bank holiday, such time shall be extended to the Escrow Agent's next
business day.
10. If any property subject hereto is at any time attached,
garnished or levied upon, shall become or be the subject of any court order, or
in case the payment, assignment, transfer, conveyance or delivery of the Escrow
Property shall be stayed or enjoined by any court order, or in case any order,
judgment or decree shall be made or entered by any court affecting such
property, or any part thereof, then in any of such events the Escrow Agent is
authorized, in its sole discretion, to rely upon and comply with any such order,
writ, judgment or decree, which it is advised by legal counsel of its own
choosing, is binding upon it, and if it complies with any such order, writ,
judgment or decree, it shall not be liable to any of the parties hereto or to
any other person, firm, or corporation for any losses, claims, costs, payments
or expenses by reason of such compliance, even though such order, writ, judgment
or decree may be subsequently reversed, modified, annulled, set aside or
vacated.
11. The Escrow Agent may resign by giving ten (10) days'
written notice to the undersigned, and thereafter shall deliver the Escrow
Property to a successor escrow agent acceptable to all parties hereto, which
acceptance shall be evidenced by the joint written and signed order of the
undersigned. If no such order is received by the Escrow Agent by such
resignation date, the obligations of the Escrow Agent shall nevertheless cease
and terminate and the Escrow Agent is
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unconditionally and irrevocably authorized and empowered to send the Escrow
Property by registered or certified mail to the respective subscribers thereof.
12. SSB shall reimburse the Escrow Agent for all out-of-pocket
expenses (including, without limitation, New York taxes and other governmental
charges) incurred by you in connection with your duties hereunder and shall
indemnify you against and save you harmless against any and all claims,
liabilities, costs, payments and expenses, including fees of counsel (who may be
selected by you), for anything done or omitted by you in the performance of this
Agreement, except as a result of your own negligence or bad faith, and you shall
have a lien on the Escrow Property for the amount thereof. All such fees and
expenses shall be paid by SSB.
13. In addition, SSB agrees to pay the Escrow Agent an Escrow
Agent fee of $2,500 per Escrow Account established. Additionally, SSB agrees to
pay applicable fees as set forth in Schedules 2 and 3 annexed hereto.
14. In the event that any checks or other instruments
deposited in the account or accounts established to hold the Escrow Property
prove uncollectible after the funds represented thereby have been released
pursuant to the Agreement, SSB shall promptly reimburse the Escrow Agent
therefor upon request, and the Escrow Agent shall deliver the returned checks or
other instruments to SSB.
15. Nothing in this Agreement is intended to or shall confer
upon anyone other than the parties hereto any legal or equitable right, remedy
or claim. This Agreement shall be governed by, and its provisions construed in
accordance with, the laws of the State of New York, and may be modified only in
writing executed by all parties hereto.
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16. This Agreement may be executed in one or more
counterparts, but in such event each counterpart shall constitute an original
and all of such counterparts shall constitute one Agreement.
Dated as of September ___, 1999
Parties to the Escrow
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
DIVERSIFIED 2000 FUTURES FUND L.P.
By: ▇▇▇▇▇ ▇▇▇▇▇▇
Futures Management Inc.,
General Partner
By
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▇▇▇▇▇ ▇▇▇▇▇▇ FUTURES
MANAGEMENT INC.
By
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▇▇▇▇▇▇▇ ▇▇▇▇▇ BARNEY INC.
By
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ACCEPTED:
EUROPEAN AMERICAN BANK
By
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SCHEDULE 1
Name Title Signature
---- ----- ---------
▇▇▇▇▇ ▇. ▇▇▇▇▇ President and _______________
Director
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, ▇▇. Director _______________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ Treasurer,
Director and Chief
Financial Officer _______________
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