Exhibit 4(i)(1)
ESCROW AGREEMENT
AGREEMENT made this day of ________, _____ between New Tech Ventures, Inc., a
Delaware corporation, with offices at 0000 Xxxxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx
Xxxx 00000 (the "Issuer") and Firstrust Savings Bank, a state chartered savings
bank with offices at 0000 Xxxxxxx Xxxxxx, Xxxxxxxxxxxx, XX 00000 (the "Escrow
Agent").
W I T N E S S E T H :
WHEREAS, the Issuer has filed with the Securities and Exchange Commission (the
"Commission") a registration statement (the "Registration Statement") covering a
proposed public offering of 4,000,000 shares of its common stock, $.001 par
value per share, as described on the Information Sheet (as defined herein); and
WHEREAS, the Issuer proposes to offer the 4,000,000 shares for sale to the
public on a "best efforts basis" at the price per share as set forth on the
Information Sheet; and
WHEREAS, the Issuer proposes to establish an escrow account with the Escrow
Agent in connection with such public offering and the Escrow Agent is willing to
establish such escrow account on the terms and subject to the conditions
hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and mutual covenants herein
contained, the parties hereto hereby agree as follows:
1. Information Sheet.
Each capitalized term not otherwise defined in this Agreement shall have
the meaning set forth for such term on the Information Sheet which is attached
to this Agreement and is incorporated by reference herein and made a part hereof
(the "Information Sheet").
2. Establishment of Escrow Account.
The parties hereto shall establish a money market escrow account at the
office of the Escrow Agent, and bearing the designation, set forth on the
Information Sheet (the "Escrow Account").
2.1 On or before the date of the initial deposit in the Escrow Account
pursuant to this Agreement, the Issuer shall notify the Escrow Agent in writing
of the effective date of the Registration Statement (the "Effective Date") and
the Escrow Agent shall not be required to accept any amount for deposit in the
Escrow Account prior to its receipt of such notification.
2.2 The Offering Period, which shall be deemed to commence on the Effective
Date, shall consist of the number of calendar days or business days set forth on
the Information Sheet. The Offering Period shall be extended by an Extension
Period only if the Escrow agent shall have received written notice thereof at
least five (5) business days prior to the expiration of the
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Offering Period. The Extension Period, which shall be deemed to commence on the
next calendar day following the expiration of the Offering Period, shall consist
of the number of the calendar days of business days set forth on the Information
Sheet. The last day of the Offering Period, or the last day of the Extension
Period (if provided), is referred to herein as the "Termination Date". After the
Termination Date, the Issuer shall not deposit, and the Escrow Agent shall not
accept, any additional amounts representing payments by prospective purchasers.
3. Deposits in the Escrow Account.
3.1 Upon receipt, the Issuer shall promptly deposit all monies received
from investors with the Escrow Agent. All of these deposited proceeds (the
"Deposited Proceeds") shall be in the form of checks or money orders. All checks
or money orders deposited into the Escrow Account shall be made payable to
Escrow Agent. Any check or money order payable other than to the Escrow Agent as
required hereby shall be returned to the prospective purchasers, or if the
Escrow Agent has insufficient information to do so, then to the Issuer (together
with any Subscription Information, as defined below, or other documents
delivered therewith) within five (5) business days following receipt of such
check by the Escrow Agent, and such check shall be deemed not to have been
delivered to the Escrow Agent pursuant to the terms of this Agreement. The
Deposited Proceeds and interest or dividends thereon, if any, shall be held for
the sole benefit of the purchasers of the securities.
3.2 The Deposited Proceeds shall be invested in an obligation that
constitutes a "deposit" as that term is defined in Section (3)(1) of the Federal
Deposit Insurance Act;
3.3 Simultaneously with each deposit into the Escrow Account, the Issuer
shall inform the Escrow Agent of the name and address of the prospective
purchaser, the number of Securities subscribed for by such purchaser, and the
aggregate dollar amount of such subscription (collectively, the "Subscription
Information").
3.4 The Escrow Account shall not be required to accept for deposit into the
Escrow Account checks which are not accompanied by the appropriate Subscription
Information.
3.5 Interest or dividends earned on the Deposited Proceeds, if any, shall
be held in the Escrow Account until the Deposited Proceeds are released in
accordance with the provisions of Section 4 of the Escrow Agreement. If the
Deposited Proceeds are released to a purchaser of the shares, the purchaser
shall receive interest or dividends earned, if any, on such Deposited Proceeds
up to the date of release. If the Deposited Proceeds held in the Escrow Account
are released to the Company, any interest or dividends earned on such funds up
to the date of release may be released to the Company.
3.6 The Issuer shall deposit the certificate(s) representing the shares
sold (the "Deposited Securities") directly into the Escrow Account promptly upon
issuance, which certificates or other documents evidencing such shares shall
identify the purchaser of the shares.
3.7 The Deposited Securities shall be held for the sole benefit of the
purchasers. No transfer or other disposition of Deposited Securities held in the
Escrow Account or any interest related to such Deposited Securities shall be
permitted other than by will or the laws of descent and distribution, or
pursuant to a qualified domestic relations order as defined by the Internal
Revenue Code of 1986, as amended, or Title I of the Employee Retirement Income
Security Act, or the rules thereunder.
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3.8 The Escrow Agent shall refund any portion of the Deposited Proceeds
prior to disbursement of the Deposited Proceeds in accordance with Section 4
hereof upon instruction in writing signed by the Issuer.
4. Disbursement from the Escrow Account.
4.1 The Deposited Proceeds may be released to the Company and the Deposited
Securities delivered to the purchaser or other registered owner only at the same
time as or after the Escrow Agent has received a signed representation letter
from the Company, together with an opinion of counsel that the requirements of
Rule 419 as promulgated pursuant to the Securities Act of 1933 as amended (the
"Act") as to the consummation of a business acquisition have been satisfied.
4.2 If a consummated acquisition(s) meeting the requirements of Rule 419
has not occurred by a date 18 months after the Effective Date, the Deposited
Proceeds, less amounts, delivered to the Company pursuant to Section 4.5 hereof,
shall be returned by first class mail or equally prompt means to the purchaser
and the Deposited Securities shall be delivered to the Subscription Agent within
five business days following that date.
4.3 Upon distribution of the Deposited Proceeds and Deposited Securities
pursuant to the terms of this Section 4, the Escrow Agent shall be relieved of
all further obligations and released from all liability under this Agreement.
4.4 Anything in this Escrow Agreement to the contrary notwithstanding,
after written notice is given by the Issuer to the Escrow Agent that the
Offering has been terminated, the Escrow Agent shall distribute to the Issuer an
amount equal to 10% of the aggregate Deposited Proceeds deposited by the Escrow
Agent (plus interest thereon). Upon receipt of the representation letter and
opinion referred to in Section 4.1 above, the balance of the Deposited Proceeds
(plus interest thereon) shall be delivered to the Company.
5. Rights, Duties and Responsibilities of Escrow Agent.
It is understood and agreed that the duties of the Escrow Agent are purely
ministerial in nature, and that:
5.1 The Escrow Agent shall not be responsible for the performance by Issuer
of its obligations under this Agreement.
5.2 The Escrow Agent shall not be required to accept from the Issuer any
Subscription Information pertaining to prospective purchases unless such
Subscription Information is accompanied by checks or money orders representing
the payment of money, nor shall the Escrow Agent be required to keep records of
any information with respect to payments deposited by the Issuer except as to
the amount of such payments; however, the Escrow Agent shall notify the Issuer
within a reasonable time of any discrepancy between the amount delivered to the
Escrow Agent therewith. Such amount need not be accepted for deposit in the
Escrow Account until such discrepancy has been resolved.
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5.3 The Escrow Agent shall be under no duty or responsibility to enforce
collection of any check delivered to it hereunder. The Escrow Agent, within a
reasonable time, shall return to the Issuer any check received which is
dishonored, together with the Subscription Information, if any, which
accompanied such check.
5.4 The Escrow Agent shall be entitled to rely upon the accuracy, act in
reliance upon the contents, and assume the genuineness of any notice,
instruction, certificate, signature instrument or other document which is given
to the Escrow Agent pursuant to this Agreement without the necessity of the
Escrow Agent verifying the truth or accuracy thereof. The Escrow Agent shall not
be obligated to make any inquiry as to the authority, capacity, existence or
identity of an person purporting to give any such notice or instructions or to
execute any such certificate, instrument or other document. The Escrow Agent
must, however, determine for itself whether the conditions permitting the
release of the funds in the Escrow Account have been met.
5.5 In the event that the Escrow Agent shall be uncertain as to its duties
or rights hereunder or shall receive instructions with respect to the Escrow
Account or the Deposited Proceeds which, in its sole determination, are in
conflict either with other instructions received by it or with any provision of
this Agreement, the Escrow Agent, at its sole option, may deposit the Deposited
Proceeds (and any other amounts that thereafter become part of the Deposited
Proceeds) with the registry of a court of competent jurisdiction in the Eastern
District of Pennsylvania, in a proceeding to which all parties in interest are
joined. Upon the deposit by the Escrow Agent of the Deposited Proceeds with the
registry of any court, the Escrow Agent shall be relieved of all further
obligations and released from all liability hereunder; and, the Escrow Agent
shall be reimbursed for its costs and expenses, including reasonable attorneys'
fees, incurred by it in connection therewith.
5.6 The Escrow Agent shall not be liable for any action taken or omitted
hereunder, or for the misconduct of any employee, agent or attorney appointed by
it, except in the case of willful misconduct. The Escrow Agent shall be entitled
to consult with counsel of its own choosing and shall not be liable for any
action taken, suffered or omitted by it in accordance with the advice of such
counsel.
5.7 The Escrow Agent shall have no responsibility at any time to ascertain
whether or not any security interest exists in the Deposited Proceeds or any
part thereof or to file any financing statement under the Uniform Commercial
Code with respect to the Deposited Proceeds or any part thereof.
5.8 The Escrow Agent hereby appoints Stocktrans, Inc., as its subscription
agent (the "Subscription Agent") for the purposes of maintaining complete and
accurate records of all subscription documentation and monies received; and for
the further purpose of facilitating distributions from the Escrow Account. The
Subscription Agent's fee, if any, will be paid directly by the Issuer.
6. Amendment; Resignation.
This Agreement may be altered or amended only with the written consent of
the Issuer and the Escrow Agent. The Escrow Agent may resign for any reason upon
thirty (30) business days written notice to the Issuer. Should the Escrow Agent
resign as herein provided, it shall not be required to accept any deposit, make
any disbursement or otherwise dispose of the Deposited Proceeds for a period of
not more than thirty (30) business days following the effective date of such
registration, at which time (a) if a successor escrow agent shall have been
appointed and written notice thereof (including the name and
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address of such successor escrow agent) shall have been given to the resigning
Escrow Agent by the Issuer and such successor escrow agent, the resigning Escrow
Agent shall pay over to the successor escrow agent the Deposited Proceeds, less
any portion thereof previously paid out in accordance with this Agreement, or
(b) if the resigning Escrow Agent shall not have received written notice signed
by the Issue and a successor escrow agent, then the resigning Escrow Agent shall
promptly refund the amount in the Deposited Proceeds to each prospective
purchaser without interest thereon or deduction therefrom, and the resigning
Escrow Agent shall notify the Issuer in writing of its liquidation and
distribution of the Deposited Proceeds; whereupon, in either case, the Escrow
Agent shall be relieved of all further obligations and released from all
liability under this Agreement. Without limiting the provisions of Section 8
hereof, the resigning Escrow Agent shall be entitled to be reimbursed by the
Issuer for any expenses incurred in connection with its resignation, transfer of
the Deposited Proceeds to a successor Escrow Agent or distribution of the
Deposited Proceeds pursuant to this Section 6.
7. Representations and Warranties.
The Issuer hereby represents and warrants to the Escrow Agent that:
7.1 No party other than the parties hereto and the prospective purchasers
have, or shall have any lien, claim or security interest in the Deposited
Proceeds or any part thereof.
7.2 No financing statement under the Uniform Commercial Code is on file in
any jurisdiction claiming a security interest in or describing (whether
specifically or generally) the Deposited Proceeds or any part thereof.
7.3 The Subscription Information submitted with each deposit shall, at the
time of submission and at the time of the disbursement of the Deposited
Proceeds, be deemed a representation and warranty that such deposit represents a
bona fide sale to the purchaser described therein of the amount of Securities
set forth in such Subscription Information and that the Securities and Exchange
Commission has declared effective the Registration Statement referred to in the
Information Sheet.
7.4 All of the information contained in the Information Sheet is, as of the
date hereof and will be, at the time of any disbursement of the Deposited
Proceeds, true and correct.
8. Indemnification and Contribution.
8.1 The Issuer (for purposes of this Section 8 hereof, referred to as the
"Indemnitor") agrees to indemnify the Escrow Agent and its officers, directors,
employees, agents and shareholders (jointly and severally the "Indemnitees")
against, and hold them harmless of and from, any and all loss, liability, cost,
damage and expense, including, without limitation, reasonable counsel fees,
which the Indemnitees may suffer or incur by reason of any action, claim or
proceeding brought against the Indemnitees arising out of or relating in any way
to this Agreement or any transaction to which this Agreement relates, unless
such action, claim or proceeding is the result of the willful misconduct of the
Indemnitees.
8.2 If the indemnification provided for in this Section 8 is applicable,
but for any reasons held to be unavailable, the Indemnitors shall contribute
such amounts as are just and equitable to pay, or to reimburse the Indemnitees
for, the aggregate of any and all losses, liabilities, costs, damages and
expenses, including counsel fees, actually incurred by the Indemnitees as a
result of or in connection with,
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and any amount paid in settlement of any action, claim or proceeding arising out
of or relating in any way to any actions or omissions of the Indemnitors.
8.3 Any Indemnitee which proposes to assert the right to be indemnified
under this Section 8, promptly after receipt of notice of commencement of any
action, suit or proceeding against such Indemnitee in respect of which a claim
is to be made against the Indemnitor under this Section 8, will notify the
Indemnitor of the commencement of such action, suit or proceeding, enclosing a
copy of all papers served, but the omission so to notify the Indemnitor of any
such action, suit or proceeding shall not relieve the Indemnitor from any
liability which they may have to any Indemnitee otherwise than under this
Section 8. In case any such action, suit or proceeding shall be brought against
any Indemnitee and it shall notify the Indemnitor of the commencement thereof,
the Indemnitor shall be entitled to participate in and, to the extent that they
shall wish, to assume the defense thereof, with counsel satisfactory to such
Indemnitee. The Indemnitee shall have the right to employ its counsel in any
such action, but the fees and expenses of such counsel shall be at the expense
of such Indemnitee unless (i) the employment of counsel by such Indemnitee has
been authorized by the Indemnitor, (ii) the Indemnitee shall have concluded
reasonably that there may be a conflict of interest among the Indemnitor and the
Indemnitee in the conduct of the defense of such action (in which case the
Indemnitor shall not have the right to direct the defense of such action on
behalf of the Indemnitee) or (iii) the Indemnitor in fact shall not have
employed counsel to assume the defense of such action, in each of which cases
the fees and expenses of counsel shall be borne by the Indemnitor.
8.4 The Indemnitor agrees to provide the Indemnitee with copies of all
registration statements pre and post-effective amendments and/or supplements to
such registration statements including exhibits, whether filed with the
Commission prior to or subsequent to the disbursement of the Deposited Proceeds.
8.5 The provisions of this Section 8 shall survive any termination of this
Agreement, whether by disbursement of the Deposited Proceeds and Deposited
Securities, resignation of the Escrow Agent or otherwise.
9. Governing Law and Assignment.
This Agreement shall be construed in accordance with and governed by the
laws of the Commonwealth of Pennsylvania and shall be binding upon the parties
hereto and their respective successors and assigns; provided, however, that any
assignment or transfer by any party of its rights under this Agreement or with
respect to the Deposited Proceeds shall be void as against the Escrow Agent
unless:
9.1 written notice thereof shall be given to the Escrow Agent; and
9.2 the Escrow Agent shall have consented in writing to such assignment or
transfer.
10. Notices.
All notices required to given in connection with this Agreement shall be
sent by registered or certified mail, return receipt requested, or by hand
delivery with receipt acknowledged, or by Express Mail service offered by the
United States Post Office or Federal Express, and addressed, if to the Issuer at
its address set forth on the Information Sheet, and if to the Escrow Agent, to
the address set forth on the
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Information Sheet, Attention of: Xxxxxx Xxxxxxx or to such other persons or such
other address as any party hereto may designate in writing to the other as
provided herein.
11. Severability.
If any provision of this Agreement or the application thereof to any person
or circumstances shall be determined to be unpaid or unenforceable, the
remaining provisions of this Agreement or the application of such provision to
persons or circumstances other than those to which it is held invalid or
unenforceable shall not be affected thereby and shall be valid and enforceable
to the fullest extent permitted by law.
12. Pronouns.
All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular, or plural as the context may require.
13. Captions.
All captions are for convenience only and shall not limit or define the
term thereof.
14. Execution in Several Counterparts.
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 herein.
15. Entire Agreement.
This Agreement constitutes the entire agreement between the parties hereto
with respect to the subject matter hereof and supersedes all prior agreements
and understandings (written or oral) of the parties in connection herewith.
IN WITNESS WHEREOF, undersigned have executed this Agreement as of the day
and year the first above written.
Intertech Ventures, Inc.
By:
--------------------------------
Xxxxxxx Xxxxxxx, President
Firstrust Savings Bank
By:
--------------------------------
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ESCROW AGREEMENT INFORMATION SHEET
1. The Issuer:
Name: New Tech Ventures, Inc.
0000 Xxxxxxxx, Xxxxx 0000
Xxx Xxxx, Xxx Xxxx 00000
2. Jurisdiction of Incorporation:
Delaware
3. The Securities:
4,000,000 shares of common stock, $.0O1 par value per share ("Common
Stock") at $.03 per share.
4. Type of Offering:
Registration Statement filed on Form SB-2 filed under the Securities Act of
1933, as amended (the "Act"). The offering shall terminate upon the earlier to
occur of (1) the sale of all of the Shares offered; (2) written notice given by
the Issuer terminating the Offering, which notice may be given at any time; or
(3) 150 days after the effective date of the Registration Statement unless
extended an additional 30 days by the Issuer (the "Termination Date"). The
offering will be considered a blank check offering in accordance with Rule 419
of the Act.
5. Escrow Agent:
Firstrust Savings Bank
0000 Xxxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
6. Fees: $500.00
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