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Document Preview Escrow Agreement |
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Title: |
Escrow Agreement |
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Entities: |
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Date: |
2005 |
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Size: |
Preview shows 5KB of 24KB total |
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Price: |
$33 |
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ID: |
#1954582 |
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ESCROW AGREEMENT
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ESCROW AGREEMENT dated as of July 1, 2005 (this "Agreement"), by and among
Tejas Incorporated, a Delaware corporation ("Parent"), Capital & Technology
Advisors Inc., a Delaware corporation ("Target"), the persons and entities
listed on the Signature page hereto as "Sellers" (individually a "Seller" and
collectively, the "Sellers" and, with Parent, the "Parties") and HSBC Bank USA,
National Association, as escrow agent (the "Escrow Agent").
WHEREAS, pursuant to that certain Agreement and Plan of Merger among the
Parties dated the date hereof (the "Merger Agreement"), Tejas Acquisition Corp.,
a wholly owned subsidiary of Parent, has been merged with and into Target; and
WHEREAS, a portion of the consideration received by the former stockholders
of Target under the Merger Agreement is 3,157,895 shares (the "Consideration")
of Parent's common stock, $0.001 par value per share (the "Common Stock"); and
WHEREAS, pursuant to Section 2.02 of the Merger Agreement, ten percent
(10%) of the Consideration received by the Sellers (the "Escrowed Stock") is to
be deposited by the Sellers in escrow pursuant to the terms of this Agreement
(together with any dividends or other distributions relating thereto and any
proceeds from the sale of the Escrowed Stock as herein provided held under this
Agreement, the "Escrowed Property"); and
WHEREAS, the Sellers, the Target and Parent desire the Escrow Agent to
receive, hold and dispose of the Escrowed Property in accordance with the terms,
conditions and provisions of this Agreement, and the Escrow Agent is willing to
do so.
NOW, THEREFORE, the parties agree as follows:
1. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to those terms in the Merger Agreement.
2. The Escrow Agent agrees to hold and dispose of the Escrowed Stock and
any other Escrowed Property upon receipt of the same, and all interest earned
thereon, and to act as Escrow Agent, all in accordance with all of the terms,
conditions and provisions of this Agreement.
3. The Escrowed Stock and all other Escrowed Property, if any, received by
the Escrow Agent shall be deposited in an account (the "Escrow Account") at an
office of the Escrow Agent. The Escrow Agent agrees to invest and reinvest any
cash in the Escrow Account, in (i) obligations issued or guaranteed by the
United States Government, its agencies or instrumentalities or (ii) a money
market account managed by HSBC Bank USA or any of its subsidiaries or affiliates
with a stated investment objective of investing only in the foregoing overnight
deposits, as the Escrow Agent shall be advised from time to time in writing by
the Parent and Sellers provided. The earnings realized from investments and all
interest, if any, accruing on monies held in Escrow Account shall be added to
1
{PAGE}
the Escrow Account. Any loss incurred from an investment, including all costs of
investment or liquidation, including without limitation all withholding and
other taxes, will be borne by the Escrow Account. The Sellers agree to furnish
to the Escrow Agent upon execution of this Agreement and as subsequently
required all appropriate U.S. tax forms and information in order for the Escrow
Agent to comply with U.S. tax regulations. The Escrow Agent shall not be
accountable or liable for any losses resulting from the sale or depreciation in
the market value of such investments thereof.
4. (a) The Sellers shall have all the rights of a stockholder with respect
to the Escrowed Stock held in their names (including without limitation the
right to vote such shares and the right to receive dividends and distributions
thereon), except
(i) the right of possession thereof,
(ii) the right to sell, assign, pledge, hypothecate or otherwise
dispose of such shares or any interest therein, and
(iii) the right to possession of any dividends or other distributions
(including any stock split, share exchange, or consideration distributed in
connection with any merger, consolidation or similar recapitalization) received
in respect thereof which shall become additional Escrowed Property, provided,
that in the event of any tender offer for the equity of Parent that would result
in a Change of Control, the Sellers shall have the right to elect to accept the
offer made in connection with such bid, and the Escrow Agent, upon the written
direction of the Sellers, together with appropriate stock powers endorsed in
blank, shall deliver up pursuant to such written direction such shares of
Escrowed Stock then in its possession for delivery upon acceptance of such
offer, and the shares or other consideration provided in exchange therefore
shall be held by the Escrow Agent on the same basis as the Escrowed Stock, as
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