ESCROW AGREEMENT
EXHIBIT 4.3
THIS ESCROW AGREEMENT (this “Agreement”) is made this ___ day of , 2007,
by and between Amaizing Energy Holding Company, LLC, an Iowa limited liability company (the
“Company”), and , , as escrow agent (the “Escrow Agent”).
W I T N E S S E T H:
WHEREAS, the Company proposes to offer a minimum of and a maximum of of
its Membership Units (the “Units”) at a price of $ per Unit, in minimum blocks of
Units in an offering (the “Offering”) conducted pursuant to a registration
statement (the “Registration Statement”) filed or to be filed with the Securities and Exchange
Commission and various states, including, without limitation, the states of Iowa, Kansas, Nebraska,
Missouri, and South Dakota, and potentially pursuant to exemptions in other states;
WHEREAS, the Company will allow investors in the Offering to deliver the purchase price of the
subscribed Units in installments; and
WHEREAS, the Company desires to comply with the requirements of federal and state securities
laws and regulations, and desires to protect the investors in the Offering by providing, under the
terms and conditions herein set forth, for the return to subscribers of the money which they may
pay on account of purchases of Units in the Offering if the “Minimum Escrow Deposit” (as
hereinafter defined) is not deposited with the Escrow Agent in accordance with the terms of this
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties
agree as follows:
1. Acceptance of Appointment. hereby agrees to act as the Escrow
Agent under this Agreement. The Escrow Agent shall have no duty to enforce any provision hereof
requiring performance by any other party hereunder.
2. Establishment of Escrow Account. An escrow account (the “Escrow Account”) is
hereby established with the Escrow Agent for the benefit of the investors in the Offering. Except
as specifically provided in this Agreement, the Escrow Account shall be created and maintained
subject to the customary rules and regulations of the Escrow Agent pertaining to such accounts.
3. Ownership of Escrow Account. Until such time as the funds deposited in the Escrow
Account (the “Escrow Funds”) shall equal the Minimum Escrow Deposit (as hereinafter defined), the
funds deposited in the Escrow Account by the Company shall not become the property of the Company
or be subject to the debts of the Company or any other person, but shall be held by the Escrow
Agent solely for the benefit of the investors who have subscribed for Units in the Offering.
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4. Deposit of Proceeds. All proceeds from subscriptions in the Offering shall be
delivered by the Company to the Escrow Agent, within forty-eight hours of receipt, endorsed (if
appropriate) to the order of the Escrow Agent, together with an appropriate written statement
setting forth the name, address and social security number of each person subscribing for Units,
the number of Units subscribed for, and the amount paid by each such subscriber. Any such proceeds
deposited with the Escrow Agent in the form of uncollected checks shall be promptly presented by
the Escrow Agent for collection through customary banking and clearing house facilities.
5. Investment of Escrow Funds. The Escrow Funds shall be credited by the Escrow Agent
and recorded in the Escrow Account. The Escrow Agent shall be permitted, and is hereby authorized
and directed to deposit transfer, hold and invest all Escrow Funds, including principal and
interest, in Federal Government Obligations or obligations issued and/or guaranteed as to principal
and interest by agencies or instrumentalities of the U.S. Government or common funds or mutual
funds which invest primarily in such obligations. Any interest received by Escrow Agent with
respect to the Escrow Funds shall be paid pursuant to the terms of this Agreement.
6. Termination of Escrow. Unless sooner terminated pursuant to Section 7 below, this
Agreement and the Escrow Account created hereunder shall terminate as of the date (the “Termination
Date”), which is one year and one day following the date upon which the Securities and Exchange
Commission authorizes the Offering (the “Offering Effective Date”); provided, however, that if
prior to the Termination Date, the Company has accepted subscriptions for Units equal to the
minimum offering amount, and the Company has advised the subscribers for those Units to remit to
the Escrow Agent the balance of the purchase price, then the Escrow Account may continue beyond the
Termination Date until all amounts payable by such subscribers have been paid and the conditions
for releasing the Escrow Funds have been satisfied. In no event shall this date be later than
three (3) months following the Termination Date.
7. Disposition of Escrow Funds. The Escrow Agent shall have the following duties and
obligations under this Agreement:
A. The Escrow Agent shall send to the Company every seven (7) days a written itemized
notice acknowledging the receipt and amount of the Escrow Funds.
B. The Escrow Agent shall give the Company prompt written notice when the Escrow
Funds, exclusive of interest, equal or exceed ten percent (10%) of the Minimum Escrow
Deposit, which is defined below. Following receipt of such notice, the Company will advise
the subscribers for Units to remit to the Escrow Agent the balance of the purchase price
within thirty (30) days. The Escrow Agent shall give the Company prompt written notice when
the Escrow Funds, exclusive of interest, equal or exceed the Minimum Escrow Deposit.
C. At the time (and in the event) that: (a) the Escrow Funds, exclusive of
interest, equal or exceed $40,000,000 (the “Minimum Escrow Deposit”); (b) the Escrow Agent
shall have received written confirmation from the Company that the Company has affirmatively
elected in writing to terminate this Agreement; (c) the Escrow Agent shall have provided to
each state securities department in which the Company has registered its
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securities, as communicated to the Escrow Agent by the Company, an affidavit stating
that the requirements of this Subsection 7.C have been satisfied; and (d) in each state in
which consent is required, the state securities commissioners have consented to release of
the funds on deposit, then this Agreement shall terminate, and the Escrow Agent shall
promptly disburse the Escrow Funds, including interest, to the Company to be used in
accordance with the provisions set out in the Registration Statement. Upon completing such
disbursement, the Escrow Agent shall be completely discharged and released of any and all
further responsibilities hereunder.
D. In the event the Escrow Funds do not equal or exceed the Minimum Escrow Deposit on
or before the Termination Date, the Escrow Agent shall return to each of the subscribers in
the Offering as promptly as possible after the Termination Date and on the basis of its
records pertaining to the Escrow Account: (a) the sum which each subscriber initially paid
on account of such subscriber’s subscription for Units, and (b) each subscriber’s portion of
the total interest earned on the Escrow Account as of the Termination Date, (c) reduced by
the transaction fees provided in Section 10 below. Computation of any subscriber’s share of
the net interest earned on the Escrow Account will be a weighted average based on the ratio
of such subscriber’s deposit in the Escrow Account to all such subscribers’ deposits
therein, and upon the length of time that such deposit was held in the Escrow Account as
compared to all such deposits. All computations with respect to each subscriber’s allocable
share of net interest shall be made by the Escrow Agent, which determinations shall be final
and conclusive. Any amount paid or payable to a subscriber pursuant to this Section shall
be deemed to be the property of such subscriber, free and clear of any and all claims of the
Company or its agents or creditors; and any further purchase obligation of such subscriber
in connection with the Offering shall thereupon be deemed, ipso facto, to be cancelled
without any further liability. At such time as the Escrow Agent shall have made all of the
payments called for in this Section, the Escrow Agent shall be completely discharged and
released of any and all further responsibilities hereunder, except that the Escrow Agent
shall be required to prepare and issue an IRS Form 1099 to each subscriber.
8. Agreement with Escrow Agent. To induce the Escrow Agent to act hereunder, it is
agreed by the Company that:
A. The Company will deliver a copy of the Registration Statement to the Escrow Agent
upon notice of the Securities and Exchange Commission’s declaration of effectiveness. The
Escrow Agent will have no responsibility to examine the Registration Statement with regard
to the Escrow Account or otherwise.
B. The sole duty of the Escrow Agent, other than as herein specified, shall be to
receive the Escrow Funds and hold them subject to disbursement in accordance herewith. The
Escrow Agent shall be under no duty to determine whether the Company is complying with the
requirements of this Agreement in tendering to the Escrow Agent proceeds from sales of or
subscriptions for Units. The Escrow Agent may conclusively rely upon and shall be protected
in acting in reliance upon, any statement, certificate, notice, request, consent, order or
other document believed by it to be genuine and to have been signed or presented
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by the proper party or parties. The Escrow Agent shall have no duty or liability to
verify any such statement, certificate, notice, request, consent, order or other document,
and its sole responsibility shall be to act only as expressly set forth in this Agreement.
The Escrow Agent shall be under no obligation to institute or defend any action, suit or
proceeding in connection with this Agreement unless first indemnified to its satisfaction.
The Escrow Agent may consult counsel in respect of any question arising under this
Agreement, and the Escrow Agent shall not be liable for any action taken or omitted in good
faith upon advice of such counsel.
C. The Company hereby indemnifies and holds harmless the Escrow Agent from and against
any and all loss, liability, cost, damage and expense, including, without limitation,
reasonable counsel fees, which the Escrow Agent may suffer or incur by reason of any action,
claim or proceeding brought against the Escrow Agent arising out of or relating to this
Agreement or any transaction to which this Agreement relates, unless such action, claim or
proceeding is the result of the gross negligence or willful misconduct of the Escrow Agent.
9. Resignation and Removal of Escrow Agent; Successors. The Escrow Agent may resign
upon thirty (30) days advance written notice to the Company. If a successor Escrow Agent is not
appointed within the 30-day period following such notice, the Escrow Agent may petition any court
of competent jurisdiction to name a successor Escrow Agent. Any commercial banking institution or
trust company with which the Escrow Agent may merge or consolidate, and any commercial banking
institution or trust company to which the Escrow Agent transfers all or substantially all of its
corporate trust business shall be the successor Escrow Agent without further act.
10. Fees and Expenses of Escrow Agent. The Company agrees to pay the Escrow Agent the
fees specified in the Escrow Agent’s fee schedule attached hereto as EXHIBIT A, in the
manner set forth therein, unless otherwise agreed to by the parties in writing. The parties
further agree that such fees shall be paid by the Company and not from interest on the Escrow
Account or from the principal. The Company shall be solely responsible for the payment of such
fees, and the Escrow Agent shall not seek payment of the fees from subscribers or apply any
interest or principal deposited by subscribers in the Escrow Account against such fees. The fee
agreed upon herein is intended as full consideration for the Escrow Agent’s services as
contemplated by this Agreement; provided, however, that in the event (a) the Escrow
Agent renders any material service not contemplated in this Agreement, (b) any material controversy
arises hereunder, or (c) the Escrow Agent is made a party to any litigation pertaining to this
Agreement, or the subject matter hereof, then the Escrow Agent shall be reasonably compensated for
such extraordinary services and reimbursed for all costs and expenses, including reasonable
attorney’s fees, occasioned by any delay, controversy, litigation or event, and the same shall be
recoverable from the Company, but not from the Escrow Account.
11. Notices. All notices, requests, demands, and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given, (b) on the day of
transmission if sent by facsimile transmission to the facsimile number given below, and telephonic
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confirmation of receipt is obtained promptly after completion of transmission, (c) on the next day
on which such deliveries are made in Denison, Iowa, when delivery is to Federal Express or similar
overnight courier or the Express Mail service maintained by the United States Postal Service, or
(d) on the fifth day after mailing, if mailed to the party to whom notice is to be given, by first
class mail, registered or certified, postage prepaid, and properly addressed, return receipt
requested, to the party as follows:
If to Escrow Agent:
If to the Company:
Amaizing Energy Holding Company, LLC
0000 Xxxx Xxxxxxx 00
Xxxxxxx, XX 00000
Attn: Xxx Xxxxxxx, CEO
Fax: 000-000-0000
Phone: 000-000-0000
0000 Xxxx Xxxxxxx 00
Xxxxxxx, XX 00000
Attn: Xxx Xxxxxxx, CEO
Fax: 000-000-0000
Phone: 000-000-0000
with a required copy to:
Brown, Winick, Graves, Gross, Xxxxxxxxxxx and Schoenebaum, P.L.C.
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxx, XX 00000
Attention: Xxxxxxxxx Xxxxxx
Fax: (000) 000-0000
Phone: (000) 000-0000
000 Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxx, XX 00000
Attention: Xxxxxxxxx Xxxxxx
Fax: (000) 000-0000
Phone: (000) 000-0000
12. Governing Law. This Agreement shall be construed, performed, and enforced in
accordance with, and governed by, the internal laws of the State of Iowa, without giving effect to
the conflicts of laws provisions.
13. Successors and Assigns. Except as otherwise provided in this Agreement, no party
hereto shall assign this Agreement or any rights or obligations hereunder without the prior written
consent to the other parties hereto, and any attempted assignment without such prior written
consent shall be void and of no force and effect. This Agreement shall inure to the benefit of,
and shall be binding upon, the successors and permitted assigns of the parties hereto.
14. Severability. In the event that any part of this Agreement is declared by any
court or other judicial or administrative body to be null, void, or unenforceable, said provision
shall survive to the extent it is not so declared, and all of the other provisions of this
Agreement shall remain in full force and effect.
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15. Further Assurances. Each of the parties shall execute such documents and other
papers and take such further actions, as may be reasonably required or desirable to carry out the
provisions hereof and the transactions contemplated hereby.
16. Amendments. This Agreement may be amended or modified, and any of the terms,
covenants, representations, warranties, or conditions hereof may be waived, only by a written
instrument executed by the parties hereto, or in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation, or warranty contained in this Agreement, in any one or more instances,
shall not be deemed to be nor construed as a further or continuing waiver of any such conditions,
or of the breach of any other provision, term, covenant, representation or warranty of this
Agreement.
17. Entire Agreement. This Agreement contains the entire understanding among the
parties hereto with respect to the transactions contemplated hereby and supersedes and replaces all
prior and contemporaneous agreements and understandings, oral or written, with regard to such
escrow.
18. Section Headings. The section headings in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement.
19. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument.
IN WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures as of the day
and year first written above.
| THE COMPANY: | ESCROW AGENT: | |||||||
| AMAIZING ENERGY HOLDING COMPANY, LLC |
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By:
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By: | |||||||
| Its: | ||||||||
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EXHIIBT A
[Attach Escrow Agent’s Fee Schedule]
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