OFFERING DEPOSIT ACCOUNT AGENCY AGREEMENT
Exhibit 8.1
OFFERING DEPOSIT ACCOUNT AGENCY AGREEMENT
This Offering Deposit Account Agency Agreement (this “Agreement”) dated as of July 17, 2024, by and among Reticulate Micro, Inc. (the “Company”), having an address at 0000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000, Xxxx Xxx, XX 00000, Boustead Securities, LLC, serving as the representative of the selling agents (the “Selling Agent”), having an address at 0 Xxxxxxx, Xxxxx 000, Xxxxxx, XX 00000 XXX, and Xxxxxx Securities, Inc. (the “Deposit Account Agent”), a broker-dealer registered with the United States Securities and Exchange Commission (the “SEC”), having an office at 0 Xxxxxxx, Xxxxx 000, Xxxxxx, XX 00000 XXX. All capitalized terms not herein defined shall have the meaning ascribed to them in that certain offering statement filed with the SEC dated May 24, 2024, under File Number 024-12440, including all attachments, schedules and exhibits thereto, as amended from time to time (the “Offering Statement”).
W I T N E S S E T H:
WHEREAS, pursuant to the terms of the Offering Statement, the Company desires to sell (the “Offering”) up to a maximum of $9,999,997 (the “Maximum Amount”) of its units (the “Units”), each Unit consisting of one share of the Company’s class A common stock (the “Class A Common Stock”), and one warrant to purchase one share of the Company’s Class A Common Stock. The minimum investment per subscriber is $700.00 (which minimum investment may be waived by the Company);
WHEREAS, the Offering at the earliest of: (1) the date at which the Maximum Amount has been received by the Company, (2) one year from the date upon which the SEC qualifies the Offering Statement, and (3) the date at which the offering is earlier terminated by the Company in its sole discretion (the “Termination Date”);
WHEREAS, the Company and Selling Agent desire to establish a deposit account with the Deposit Account Agent into which the Company and Selling Agent shall instruct investors introduced to the Company by Selling Agent (the “Investors”) to deposit checks and other instruments for the payment of money made payable to the order of “Xxxxxx Securities as Agent for the Investors in Reticulate Micro, Inc.” and Deposit Account Agent is willing to accept said checks and other instruments for the payment of money in accordance with the terms hereinafter set forth;
WHEREAS, the Company, as issuer, and Xxxxxxx Agent, as an introducing broker-dealer, represent and warrant to the Deposit Account Agent that they will comply with all of their respective obligations under applicable state and federal securities laws and regulations with respect to sale of the Offering;
WHEREAS, the Company and Selling Agent represent and warrant to the Deposit Account Agent that they have not stated to any individual or entity that the Deposit Account Agent’s duties will include anything other than those duties stated in this Agreement; and
WHEREAS, the Company and Selling Agent warrant to the Deposit Account Agent that a copy of each document that has been delivered to Investors and third parties that include Deposit Account Agent’s name and duties, has been attached hereto as Schedule I.
NOW, THEREFORE, IT IS AGREED as follows:
1. Delivery of Deposit Funds.
(a) Selling Agent and the Company shall instruct Investors to deliver to Deposit Account Agent checks made payable to the order of “Xxxxxx Securities as Agent for the Investors in Reticulate Micro, Inc.” or wire transfer to Xxxxxx Securities Inc., 0 Xxxxxxx, Xxxxx 000, Xxxxxx, XX 00000, ABA No. 000000000, Account Name “Xxxxxx Securities as Agent for the Investors in Reticulate Micro, Inc.”, Account No. 2030832626, in each case, with the name and address of the individual or entity making payment. In the event any Investor’s address is not provided to Deposit Account Agent by the Investor, then Selling Agent and/or the Company agree to promptly provide Deposit Account Agent with such information in writing. The checks or wire transfers shall be deposited into a non-interest-bearing account at Banc of California entitled “Xxxxxx Securities as Agent for the Investors in Reticulate Micro, Inc.” (the “Deposit Account”).
(b) The collected funds deposited into the Deposit Account are referred to as the “Deposit Funds.”
(c) The Deposit Account Agent shall have no duty or responsibility to enforce the collection or demand payment of any funds deposited into the Deposit Account. If, for any reason, any check deposited into the Deposit Account shall be returned unpaid to the Deposit Account Agent, the sole duty of the Deposit Account Agent shall be to return the check to the Investor and advise the Company and Selling Agent promptly thereof.
2. Release of Deposit Funds. The Deposit Funds shall be paid by the Deposit Account Agent in accordance with the following:
(a) In the event that the Company and Selling Agent advise the Deposit Account Agent in writing that the Offering has been terminated (the “Termination Notice”), the Deposit Account Agent shall promptly return the funds paid by each Investor to said Investor without interest or offset within five (5) business days.
(b) Provided that the Deposit Account Agent does not receive the Termination Notice in accordance with Section 2(a) and there have been funds deposited into the Deposit Account on or prior to the Termination Date, the Deposit Account Agent shall, upon receipt of written instructions, in the form of Exhibit A, attached hereto and made a part hereof, or in a form and substance satisfactory to the Deposit Account Agent, received from the Company and Selling Agent, pay the Deposit Funds in accordance with such written instructions, such payment or payments to be made by wire transfer within one (1) business day of receipt of such written instructions. Such instructions must be received by the Deposit Account Agent no later than 3:00 PM Pacific Time on a Business Day for the Deposit Account Agent to process such instructions that Business Day.
(c) If by 3:00 P.M. Pacific time on the later of the Termination Date, the Deposit Account Agent has not received written instructions from the Company and Selling Agent regarding the disbursement of the Deposit Funds, then the Deposit Account Agent shall promptly return the Deposit Funds to the Investors without interest or offset within five (5) business days. The Deposit Funds returned to each Investor shall be free and clear of any and all claims of the Deposit Account Agent.
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(d) The Deposit Account Agent shall not be required to pay any uncollected funds or any funds that are not available for withdrawal.
(e) If the Termination Date or any date that is a deadline under this Agreement for giving the Deposit Account Agent notice or instructions or for the Deposit Account Agent to take action is not a Business Day, then such date shall be the Business Day that immediately preceding that date. A “Business Day” is any day other than a Saturday, Sunday or a day that a SEC-registered broker-dealer is not legally obligated to be opened.
3. Acceptance by Deposit Account Agent. The Deposit Account Agent xxxxxx accepts and agrees to perform its obligations hereunder, provided that:
(a) The Deposit Account Agent may act in reliance upon any signature believed by it to be genuine and may assume that any person who has been designated by Selling Agent or the Company to give any written instructions, notice or receipt, or make any statements in connection with the provisions hereof has been duly authorized to do so. Deposit Account Agent shall have no duty to make inquiry as to the genuineness, accuracy or validity of any statements or instructions or any signatures on statements or instructions. The names and of each individual authorized to act singly on behalf of the Company and Selling Agent are stated in Schedule II, which is attached hereto and made a part hereof. The Company and Selling Agent may each remove or add one or more of its authorized signers stated on Schedule II by notifying the Deposit Account Agent of such change in accordance with this Agreement, which notice shall include the true signature for any new authorized signatories.
(b) The Deposit Account Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith. The Deposit Account Agent shall not be liable for any mistake of fact or error of judgment or law, or for any acts or omissions of any kind, unless caused by its willful misconduct or gross negligence.
(c) Selling Agent and the Company agree to indemnify and hold the Deposit Account Agent harmless from and against any and all claims, losses, costs, liabilities, damages, suits, demands, judgments or expenses (including but not limited to reasonable attorney’s fees) claimed against or incurred by Deposit Account Agent arising out of or related, directly or indirectly, to this Agreement unless caused by the Deposit Account Agent’s gross negligence or willful misconduct.
(d) In the event that the Deposit Account Agent shall be uncertain as to its duties or rights hereunder, the Deposit Account Agent shall be entitled to (i) refrain from taking any action other than to keep safely the Deposit Funds until it shall be directed otherwise by a court of competent jurisdiction, or (ii) deliver the Deposit Funds to a court of competent jurisdiction.
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(e) The Deposit Account Agent shall have no duty, responsibility or obligation to interpret or enforce the terms of any agreement other than Deposit Account Agent’s obligations hereunder, and the Deposit Account Agent shall not be required to make a request that any monies be delivered to the Deposit Account, it being agreed that the sole duties and responsibilities of the Deposit Account Agent shall be to the extent not prohibited by applicable law (i) to accept checks or other instruments for the payment of money and wire transfers delivered to the Deposit Account Agent for the Deposit Account and deposit said checks and wire transfers into the non-interest bearing Deposit Account, and (ii) to disburse or refrain from disbursing the Deposit Funds as stated above, provided that the checks received by the Deposit Account Agent have been collected and are available for withdrawal.
(f) Upon execution of this Agreement, the Company shall execute and deliver to Deposit Account Agent Exhibit B, for the purpose of providing standing wire instructions for the Company to be used for disbursements to said party.
4. Term of Deposits. This Agreement shall terminate upon the disbursement of all Deposit Funds in the Deposit Account pursuant to Section 2(b), Section 2(c), Section 6 or Section 7 (except with respect to provisions hereof which are specifically intended to survive such termination).
5. Deposit Account Statements and Information. The Deposit Account Agent agrees to send to the Company and/or the Selling Agent a copy of the Deposit Account periodic statement, upon request and to also provide the Company and/or Selling Agent, or their designee, upon request other deposit account information, including Deposit Account balances, by telephone or by computer communication, to the extent practicable. The Company and Selling Agent agree to complete and sign all forms or agreements required by the Deposit Account Agent for that purpose. The Company and Selling Agent each consent to the Deposit Account Agent’s release of such Deposit Account information to any of the individuals designated by Company or Selling Agent, which designation has been assigned in accordance with Section 3(a) by any of the persons in Schedule II. Further, the Company and Selling Agent have an option to receive e-mail notification of incoming and outgoing wire transfers. If this e-mail notification service is requested and subsequently approved by the Deposit Account Agent, the Company and Selling Agent agrees to provide a valid e-mail address and other information necessary to set-up this service and sign all forms and agreements required for such service. The Company and Selling Agent each consent to the Deposit Account Agent’s release of wire transfer information to the designated e-mail address(es). The Deposit Account Agent’s liability for failure to comply with this section shall not exceed the cost of providing such information.
6. Resignation and Termination of the Deposit Account Agent. The Deposit Account Agent may resign at any time by giving 30 days’ prior written notice of such resignation to Selling Agent and the Company. Upon providing such notice, the Deposit Account Agent shall have no further obligation hereunder except to hold as depositary the Deposit Funds that it receives until the end of such 30-day period. In such event, the Deposit Account Agent shall not take any action, other than receiving and depositing Investors’ checks and wire transfers in accordance with this Agreement, until the Company has designated a banking corporation, trust company, attorney or other person as successor. Upon receipt of such written designation signed by Selling Agent and the Company, the Deposit Account Agent shall promptly deliver the Deposit Funds to such successor and shall thereafter have no further obligations hereunder. If such instructions are not received within 30 days following the effective date of such resignation, then the Deposit Account Agent may deposit the Deposit Funds held by it pursuant to this Agreement with a clerk of a court of competent jurisdiction pending the appointment of a successor. In either case provided for in this Section, the Deposit Account Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Deposit Funds.
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7. Termination. The Company and Selling Agent may terminate the appointment of the Deposit Account Agent hereunder upon written notice specifying the date upon which such termination shall take effect, which date shall be at least 30 days from the date of such notice. In the event of such termination, the Company and Selling Agent shall, within 30 days of such notice, appoint a successor deposit account agent and the Deposit Account Agent shall, upon receipt of written instructions signed by the Company and Selling Agent, turn over to such successor deposit account agent all of the Deposit Funds; provided, however, that if the Company and Selling Agent fail to appoint a successor deposit account agent within such 30-day period, such termination notice shall be null and void and the Deposit Account Agent shall continue to be bound by all of the provisions hereof. Upon receipt of the Deposit Funds, the successor deposit account agent shall become the deposit account agent hereunder and shall be bound by all of the provisions hereof and Deposit Account Agent shall be relieved of all further obligations and released from all liability thereafter arising with respect to the Deposit Funds and under this Agreement.
8. Investment. All funds received by the Deposit Account Agent shall be held only in non-interest-bearing account at Banc of California.
9. Compensation. Deposit Account Agent shall be entitled, for the duties to be performed by it hereunder, to a fee as set forth on Schedule III. In addition, the Company shall be obligated to reimburse Deposit Account Agent for all fees, costs and expenses incurred or that become due in connection with this Agreement or the Deposit Account, including reasonable attorney’s fees. Neither the modification, cancellation, termination or rescission of this Agreement nor the resignation or termination of the Deposit Account Agent shall affect the right of Deposit Account Agent to retain the amount of any fee which has been paid, or to be reimbursed or paid any amount which has been incurred or becomes due, prior to the effective date of any such modification, cancellation, termination, resignation or rescission. To the extent the Deposit Account Agent has incurred any such expenses, or any such fee becomes due, prior to any closing, the Deposit Account Agent shall advise the Company and the Company shall direct all such amounts to be paid directly at any such closing.
10. Notices. All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if sent by hand-delivery, by facsimile (followed by first-class mail), by nationally recognized overnight courier service or by prepaid registered or certified mail, return receipt requested, to the addresses set forth below:
If to Selling Agent:
Boustead Securities, LLC
0 Xxxxxxx, Xxxxx 000
Irvine, CA 92618
Attention: Xxxxxxx Xxxxx
Email: xxxxxxx.xxxxx@xxxxxxxx0000.xxx
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With copy to:
ArentFox Schiff LLP
0000 X Xxxxxx, XX
Washington, DC 20006
Attn: Cavas Xxxxx
Email: xxxxx.xxxxx@xxxxxx.xxx
If to the Company:
0000 Xxxxxxx Xxxxx Xxxx., Xxxxx 000
Palm Bay, FL 32909
Attn: Xxxxxx Xxxxx
Email: xxxx@xxxxxxxxxx.xx
With copy to:
Xxxxxxxxxx PLLC
0000 Xxxxxxxxxxx Xxxxxx, X.X., Xxxxx 000
Washington, DC 20036
Attn: Xxx Xxxxxxxxxx, Esq.
Email: xxx@xxxxxxxxxxxxxx.xxx
If to Deposit Account Agent:
Xxxxxx Securities, Inc.
0 Xxxxxxx, Xxxxx 000
Irvine, CA 92618
Attention: Xxx Xxxx
Email: xxx.xxxx@xxxxxxxx.xxx
11. General.
(a) This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Nevada applicable to agreements made and to be entirely performed within such State, without regard to choice of law principles and any action brought hereunder shall be brought in the courts of the State of California, located in the County of Orange or Los Angeles. Each party hereto irrevocably waives any objection on the grounds of venue, forum non-conveniens or any similar grounds and irrevocably consents to service of process by mail or in any manner permitted by applicable law and consents to the jurisdiction of said courts. EACH OF THE PARTIES HERETO HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
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(b) This Agreement sets forth the entire agreement and understanding of the parties with respect to the matters contained herein and supersedes all prior agreements, arrangements and understandings relating thereto.
(c) All of the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the parties hereto, as well as their respective successors and assigns.
(d) This Agreement may be amended, modified, superseded or canceled, and any of the terms or conditions hereof may be waived, only by a written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to enforce the same. No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or of the breach of any other term of this Agreement. No party may assign any rights, duties or obligations hereunder unless all other parties have given their prior written consent.
(e) If any provision included in this Agreement proves to be invalid or unenforceable, it shall not affect the validity of the remaining provisions.
(f) This Agreement and any modification or amendment of this Agreement may be executed in several counterparts or by separate instruments and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.
12. Form of Signature. The parties hereto agree to accept a facsimile transmission copy of their respective actual signatures as evidence of their actual signatures to this Agreement and any modification or amendment of this Agreement; provided, however, that each party who produces a facsimile signature agrees, by the express terms hereof, to place, promptly after transmission of his or her signature by fax, a true and correct original copy of his or her signature in overnight mail to the address of the other party.
13. No Third-Party Beneficiaries. This Agreement is solely for the benefit of the parties and their respective successors and permitted assigns, and no other person has any right, benefit, priority, or interest under or because of the existence of this Agreement.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first set forth above.
| Reticulate Micro, Inc. | Boustead Securities, LLC | |||
| By: | /s/ Xxxxxx Xxxxx | By: | /s/ Xxxxxxx Xxxxx | |
| Name: | Xxxxxx Xxxxx | Name: | Xxxxxxx Xxxxx | |
| Title: | CEO | Title: | CEO | |
| Xxxxxx Securities, Inc. | ||||
| By: | /s/ Xxx Xxxx | |||
| Name: | Xxx Xxxx | |||
| Title: | CCO | |||
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Schedule I
OFFERING DOCUMENTS
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Schedule II
The Deposit Account Agent is authorized to accept instructions signed or believed by the Deposit Account Agent to be signed by any one of the following on behalf of the Company and Selling Agent.
Name and Title
Xxxxxx Xxxxx, CEO
Boustead Securities, LLC
Name and Title
Xxxxxxx Xxxxx, CEO
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Schedule III
Fee Schedule
| Service | Fee | |||
| Account Setup Fee | $ | 2,500.00 | ||
| Cash Management Fee | 25 bps (0.25%) on disbursed Proceeds | |||
| Wire Transfers – Incoming (Domestic or International) | $ | 10.00 | ||
| Wire Transfers – Outgoing (Domestic) | $ | 15.00 | ||
| Wire Transfers – Outgoing (International) | $ | 25.00 | ||
| NACHA Upload per file | $ | 10.00 | ||
| ACH per transaction (incoming or outgoing) | $ | 1.00 | ||
| ACH Exceptions (incoming or outgoing) | $ | 10.00 | ||
| Check Processing (incoming or outgoing) | $ | 10.00 | ||
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Exhibit A
FORM OF DEPOSIT RELEASE NOTICE
Date:
Xxxxxx Securities, Inc.
0 Xxxxxxx, Xxxxx 000
Irvine, CA 92618
Attention: Xxx Xxxx
Dear Xx. Xxxx:
In accordance with the terms of Section 2(b) of the Offering Deposit Account Agency Agreement dated as of [__________], 202[__], by and between Reticulate Micro, Inc. (the “Company”), Boustead Securities, LLC (the “Selling Agent”) and Xxxxxx Securities, Inc. (the “Deposit Account Agent”), the Company and Selling Agent hereby notify the Deposit Account Agent that the [No.] closing will be held on [__________], 202[__] for gross proceeds of $[Amount].
PLEASE DISTRIBUTE FUNDS BY WIRE TRANSFER AS FOLLOWS (wire instructions attached):
| Reticulate Micro, Inc.: | $ | [Amount] | ||
| [Payee 1]: | $ | [Amount] | ||
| [Payee 2]: | $ | [Amount] |
| Very truly yours, | ||||
| Reticulate Micro, Inc. | Boustead Securities, LLC | |||
| By: | By: | |||
| Name: | [Officer name] | Name: | Xxxxxxx Xxxxx | |
| Title: | [Officer title] | Title: | CEO | |
| Accepted: | ||
| Xxxxxx Securities, Inc. | ||
| By: | ||
| Name: | Xxx Xxxx | |
| Title: | CCO | |
Exhibit B
STANDING WIRE INSTRUCTIONS FOR COMPANY
In accordance with Section 3(f) of the Agreement disbursements to Company by wire transfer must be sent in accordance with the following wire instructions:
| Bank Name: | |||
| ABA Number: | |||
| Account Number: | |||
| Beneficiary Name: | Reticulate Micro, Inc. | ||
| Beneficiary Address: | 0000 Xxxxxxx Xxxxx Xxxx, Xxx. 000 | ||
| Palm Bay, FL 32909 |
