AMENDEDANDRESTATEDSUBSCRIPTIONESCROWAGREEMENT
THISAMENDEDANDRESTATEDSUBSCRIPTIONESCROWAGREEMENT(this
“EscrowAgreement”),datedasofAugust2,2016isenteredintobyandbetweenExquisiteAcquisition,Inc.(the“Company”)andWilmingtonTrust,NationalAssociation,asescrowagent(the“EscrowAgent”).
WHEREAS,theCompanyintendstoraisefundsfrominvestors(the“Purchasers”)pursuanttoaprivateoffering(the“Offering”)ofcommonstockwithaparvalueof$.0001at$.025pershareofnotlessthan$25,000(the“MinimumAmountofOfferingProceeds”)for1,000,000sharesofCommonStockor$100,000(the“MaximumAmount”)for4,000,000sharesofCommonStockoftheCompany(the“Shares”).
WHEREAS,inconnectionwiththeOfferingtheCompanyandtheEscrowAgententeredintothatcertainSubscriptionEscrowAgreementdatedasofJune29,2016(the“OriginalEscrowAgreement”)pursuanttowhichtheCompanyagreedtodepositfundspaidbythePurchaserswiththeEscrowAgent,tobeheldforthesolebenefitofthePurchasersuntilcertain conditionshavebeenmetbytheCompanyinaccordancewiththetermsofitsofferingandtheOriginalEscrowAgreement.
WHEREAS,theCompanyandtheEscrowAgenthaveagreedtoamendandrestatetheOriginalEscrowAgreementinitsentiretyallasmorefullydetailedherein.
WHEREAS,uponexecutionofthisEscrowAgreement,theOriginalEscrowAgreementwillbereplacedandterminatedinitsentirety.
WHEREAS,theEscrowAgentiswillingtoamendandrestatetheOriginalEscrowAgreementandaccepttheappointmentasescrowagentunderthisEscrowAgreementuponthetermsandconditionssetforthherein.
NOW,THEREFORE,inconsiderationofthepremisessetforthaboveandothergoodandvaluableconsideration,thereceiptofwhichisherebyacknowledged,thepartiesheretoagreeasfollows:
1. EscrowofInvestorFunds.
(a) OnorbeforethecommencementoftheOffering,theCompanyshallestablishthefollowingescrowaccountwiththeEscrowAgent(the“EscrowAccount”)inaccordancewith17CFR230.419Sections(b)(1)(i)(A)and(b)(1)(ii):
WilmingtonTrust
ABA# 031100092
A/C#116925-000
A/C Name:ExquisiteAcquisitionEscrowAttn:DebDaniello617-457-2020
(b) EscrowAgentshallhavenodutytomakeanydisbursement,investmentorotheruseofInvestorFundsuntilandunlessithasgoodandcollectedfunds.IntheeventthatanychecksdepositedintheEscrowAccountarereturnedorproveuncollectibleafterthefundsrepresentedtherebyhavebeenreleasedbytheEscrowAgent,thentheCompanyshallpromptlyreimbursetheEscrowAgentforanyandallcostsincurredforsuch,uponrequest,andtheEscrowAgentshalldeliverthereturnedcheckstotheCompany. TheEscrowAgentshallbeundernodutyorresponsibility toenforcecollectionofanycheckdeliveredtoithereunder. TheEscrowAgentreservestherighttodeny,suspendorterminateparticipationbyan InvestortotheextenttheEscrowAgentdeemsitadvisableornecessarytocomplywithapplicablelawsortoeliminatepracticesthatarenotconsistentwiththepurposesoftheOffering.
| 2. | DepositofEscrowedFunds;InvestmentofEscrowedFunds;IssuanceofSecurities. |
(a) Allofferingproceeds,afterdeductionofcashpaidforunderwritingcommissions,underwritingexpensesanddealerallowances,andamountspermittedtobereleasedtotheCompanypursuanttothetermsof17CFR230.419(b)(2)(vi),(the“EscrowedFunds”)shallbedepositedpromptlyintotheescrowaccount;provided,however,thatnodeductionmaybemadeforunderwritingcommissions,underwritingexpensesordealerallowancespayabletoanaffiliateoftheCompany.
(b) EscrowedFundsshallbeintheformofchecks,drafts,moneyorders,wiretransfer,andpayabletotheorderoftheEscrowAgent.
(c) EscrowedFundstogetherwithinterestordividendsthereon,ifany,shallbeheldforthesolebenefitofthepurchasersoftheShares.
(d) EscrowedFundsshallnotbeinvestedandshallbeheldincashuntildeterminedotherwisebytheCompany.EscrowedFunds,uponthewrittendirectionoftheCompany,maybedepositedinoneofthefollowing:
(i) Anobligationthatconstitutesa“deposit”asthattermisdefinedinsection3(1)oftheFederalDepositInsuranceAct.
(ii) Securitiesofanyopen-endinvestmentCompanyregisteredundertheInvestmentCompanyActof1940.
(iii) Securitiesthataredirectobligationsof,orobligationsguaranteedastoprincipalorinterestbytheUnitedStates.
(e) Allsecuritiesissuedinconnectionwiththeoffering,whetherornotforcashconsideration,andanyothersecuritiesissuedwithrespecttostocksplits,stockdividends,orsimilarorrightsshallbedepositeddirectlyintotheescrowaccountpromptlyuponissuanceinaccordancewith17CFR230.419(b)(3).
| 3. | DisbursementofEscrowedFunds. |
(a) IntheeventtheEscrowAgentreceiveswrittennoticefromtheCompanysubstantiallyintheformofExhibitAhereto(a“PurchaserRejectionDisbursementNotice”)theEscrowAgentshalldisbursetothePurchasersolelyinaccordancewithandpursuanttothetermsofthePurchaserRejectionDisbursementNoticeallcollectedsumspaidbythePurchaserforSharesandreceivedbytheEscrowAgent.
(b) IntheeventtheEscrowAgentreceivesawrittennoticefromtheCompanysubstantiallyintheformofExhibitBhereto(an“EscrowedFundsDisbursementNotice”,andasusedherein,theterm“WrittenDirection”mayrefer,variably,toaPurchaserRejectionDisbursementNotice,anEscrowedFundsDisbursementNotice,oraTerminationDateDisbursementNotice(assuchtermisdefinedbelow),asthecontextmayrequire)theEscrowAgentshalldisbursetheEscrowedFundstotheCompanysolelyinaccordancewithandpursuant tothetermsofsuchEscrowedFundsDisbursementNotice.
(c) TheCompanyherebydesignates,onExhibitChereto,itsauthorizedrepresentativesforpurposesofthisEscrowAgreement(eachsuchindividual,an“AuthorizedRepresentative”oftheCompany),andconfirmsthatthetitle,contactinformationandspecimensignatureofeachsuchAuthorizedRepresentativeassetforthonExhibitCistrueand correct.EachAuthorizedRepresentativeisauthorizedtoinitiateandapprovetransactionsofalltypesfortheEscrowAccount(s)establishedunder thisEscrowAgreement.
(d) TheCompanymay,atanytime,amendExhibitCbysigningandsubmittingtoEscrowAgentanamendedExhibitC.AnysuchamendedExhibitCshallnotbeeffectiveunlessanduntiltheEscrowAgentacknowledgessuchamendmentbycountersigningtheamendedExhibitC.EscrowAgentshallbeentitledtoareasonabletimetoacttoimplementanychangesonanupdatedExhibitC.
(e) EscrowAgentwillonlyreleasetheEscrowedFunds(including,butnotlimitedto,areleaseofEscrowedFundspursuanttothetermsofSection6below)inaccordancewithaWrittenDirectionsignedbyanAuthorizedRepresentativetheCompanysubstantiallyinoneoftheformsattachedhereto.SuchWrittenDirectionmustbedeliveredandauthenticatedinaccordancewithSection4.
| 4. | AuthenticationandSecurityProcedures. |
(a) AWrittenDirectionmustbedeliveredtoEscrowAgentbyoneofthedeliverymethodssetforthinSection9(Notices).
(b) EscrowAgentshallhavenoobligationordutytoactuponaWrittenDirectiondeliveredtoEscrowAgentforthedisbursementofEscrowedFundsunderthisEscrowAgreementifsuchwrittenDirectionisnot(i)inwriting,(ii)signedbyanAuthorizedRepresentativeoftheCompany,and(iv)deliveredto,andabletobeauthenticatedby,theEscrowAgentinaccordancewiththisSection4.
(c) EscrowAgentisauthorizedtofollowandrelyuponanyWrittenDirectiondeliveredtoEscrowAgent.EscrowAgentshallhavenodutyorobligationtoverifythatthepersonwhosignstheWrittenDirectiononbehalfoftheCompanyis,infact,dulyauthorizedtogiveinstructionsonbehalfoftheCompanyotherthantoverifythatthenameand signatureofthepersonsigningtheWrittenDirectionappearstobethesameasthenameandsignatureofanAuthorizedRepresentativeoftheCompanyassetforthonExhibitChereto. TheCompanyacknowledgesandagreesthatitisfullyinformedoftheprotectionsandrisksassociatedwiththevariousmethodsoftransmittingaWrittenDirectiontoEscrowAgent, andthattheremaybemoresecuremethodsoftransmittingaWrittenDirectionotherthanthemethodselectedbytheCompany(suchas,forexample,todelivertheWrittenDirectiontoEscrowAgentin-person).EscrowAgentshallhavenoresponsibilityorliabilityforanylossesordamagesofanynaturethat mayarisefrom(i)anyactiontakenornottakenbyEscrowAgentinrelianceonaWrittenDirection,(ii)as aresult theCompany’srelianceuponoruseofanyparticularmethodofdeliveringinstructionstoEscrowAgent,includingtheriskofinterceptionofsuchinstructionand misusebythirdparties,or(iii)anyofficerorAuthorizedRepresentativeoftheCompanynamed inanincumbencycertificateorExhibitCdeliveredhereunderpriortoactualreceiptbyEscrowAgentofamorecurrentincumbencycertificateoranupdatedExhibitC,andareasonabletimeforEscrowAgenttoactuponsuchupdatedormorecurrentcertificateorExhibit.
(d) TheCompanyandEscrowAgentherebyagreethatthefollowingsecurityproceduresshallbeusedtoverifytheauthenticityofaWrittenDirectiondeliveredtoEscrowAgentunderthisEscrowAgreement:
| (i) | TheWrittenDirectionmustincludethenameandsignatureofanAuthorizedRepresentativeoftheCompany.TheEscrowAgentwillcheckthatthenamesandsignaturesofthepersonsidentifiedontheWrittenDirectionappeartobethesameasthenameandsignatureofanAuthorizedRepresentativeoftheCompany; |
| (ii) | EscrowAgentwillmakeatelephonecalltoanAuthorizedRepresentativeoftheCompany(whichAuthorizedRepresentativemaybethesamepersonastheAuthorizedRepresentativewhosignedtheWrittenDirection)atanytelephonenumberforsuchAuthorizedRepresentativeoftheCompanyassetforthonExhibitCinordertoobtainoralconfirmationofdelivery oftheWrittenDirection;and |
| (iii) | IftheWrittenDirectionissenttoEscrowAgentbyemail,EscrowAgentalsoshallreviewsuchemailaddresstoverifythattheWrittenDirectionappearstohavebeenemailedfromanemailaddressforanAuthorizedRepresentativeoftheCompanyassetforthonExhibitC(orfromanemailaddressforapersonauthorizedunderExhibitCtoemailaWrittenDirectiontoEscrowAgentonbehalfoftheAuthorizedRepresentativeof theCompany. |
(e) TheCompanyacknowledgesandagreesthatgivenitsparticularcircumstances,includingthenatureofitsbusiness,thesize,typeandfrequencyofitsinstructions,transactionsandfiles,internalproceduresandsystems,thealternativesecurityproceduresofferedbyEscrowAgent(e.g.,in-persondeliveryoftheWrittenDirectiontoEscrowAgent)andthesecurityproceduresingeneralusebyothercustomersandbankssimilarlysituated, thesecurityproceduressetforthinthisSection4area commerciallyreasonablemethodofverifyingtheauthenticityofapaymentorderinaWrittenDirection.
(f) EscrowAgentisauthorizedtoexecute,andtheCompanyexpresslyagreestobeboundbyanypaymentorderinaWrittenDirectionissuedinitsname(andassociatedfundstransfer)(i)thatisacceptedbyEscrowAgentinaccordancewiththesecurityproceduressetforthinthisSection4,whetherornotauthorizedbytheCompany,and/or(ii)thatisauthorizedbyoronbehalfoftheCompany,orforwhichtheCompanyisotherwiseboundunderthelawofagency,whetherornotthesecurityproceduressetforthinthisSection4werefollowed,andtodebitanyrelevantaccountatEscrowAgentfortheamountofthepaymentorder.Notwithstandinganythingelse,EscrowAgentshallbedeemedtohaveactedingoodfaithandwithoutnegligence,grossnegligence ormisconductifEscrow Agentisauthorizedtoexecute thepaymentorderunderthisSection4. AnyactiontakenbyEscrowAgentpursuanttothisparagraphprior toEscrowAgent’sactualreceiptandacknowledgementofanotice ofrevocation,cancellationoramendmentofaWritten Directionshallnotbeaffectedbysuchnotice.
(g) ThesecurityproceduressetforthinthisSection4areintendedtoverifytheauthenticityofapaymentorderinaWrittenDirectionprovidedtoEscrowAgentandarenotdesignedto,anddonot,detecterrorsinthetransmissionorcontentofanypaymentorder.EscrowAgentisnotresponsiblefordetectinganerrorinapaymentorder,regardlessofwhethertheCompanybelievestheerrorwasapparent,andEscrowAgentisnotliableforanydamagesarisingfromanyfailuretodetectanerror.
(h)Wheninstructedtocreditorpayapartybybothnameandauniquenumericoralpha-numericidentifier(e.g.ABAnumberoraccountnumber),EscrowAgent,andanyotherbanksparticipatinginthefundstransfer,mayrelysolelyonthenumericalidentifier,evenifitidentifiesapartydifferentthanthepartynamed. TheCompanyagreesto beboundbytherules ofanyfundstransfernetworkusedinconnectionwithanypaymentorderacceptedbyEscrowAgenthereunder.
(i)EscrowAgentshallnotbeobligedtomakeanypaymentrequestedinaWrittenDirectionifitisunabletovalidatetheauthenticityoftherequestbythesecurityproceduressetforthinthisSection4.EscrowAgent’sinabilitytoconfirmapaymentordermayresultinadelayorfailuretoactonthatpaymentorder.NotwithstandinganythingelseinthisEscrowAgreement,EscrowAgentshallnotberequiredtotreatapaymentorderashavingbeenreceived untilEscrowAgenthasauthenticateditpursuanttothesecurityproceduresinthisSection4andshallnotbeliableorresponsibleforanylossesorliability arisinginconnectionwithsuchdelay orfailuretoact.
5. IdentityofSubscribers.TheCompanyshallfurnishtotheEscrowAgentwitheachdeliveryofInvestorFunds,alistofthePurchaserswhohavepaidfortheSharesshowingthe
name,address,taxidentificationnumber,numberofSharessubscribedforandtheamountpaidanddepositedwiththeEscrowAgent.ThisinformationcomprisingtheidentityofPurchasersshallbeprovidedtotheEscrowAgentintheformatsetforthonExhibitDtothisEscrowAgreement,(the“ListofPurchasers”).AllInvestorFundssodepositedshallnotbesubjecttoanyliensorchargesby theCompany ortheEscrowAgent,orjudgmentsorcreditors’claimsagainsttheCompany,untilreleasedtotheCompanyashereinafterprovided.TheCompanyunderstandsandagreesthattheCompany shallnotbeentitledtoanyInvestorFundsondepositin theEscrowAccountandnosuchfundsshallbecomethepropertyofthe CompanyexceptwhenreleasedtotheCompanypursuanttoSection3ofthisEscrowAgreement.TheCompanyandtheEscrowAgentwilltreatallInvestorinformationasconfidential. TheEscrowAgentshallnotberequiredtoacceptanyInvestorFundswhicharenotaccompaniedbytheinformationon theListofPurchasers.
6. TermofEscrow.The“TerminationDate”shallbetheearlierof(i)thedatetheEscrowAgentreceiveswrittennoticefromtheCompanythatanacquisition(s)meetingtherequirementsof17CFR230.419(e)hasnotoccurredwithineighteen(18)monthsfollowingtheeffectivedateoftheinitialregistrationstatement.Uponreceiptofawritten instructionsubstantiallyintheformofExhibitEattachedhereto(a“TerminationDateDisbursementNotice”),fundsheldintheescrowaccountshallbereturnedtoeachPurchaserasspecifiedonsuchTerminationDateDisbursementNotice;(ii)thedatetheEscrowAgentreceiveswrittennoticefromtheCompanythatitisterminatingitsofferingofsecurities;(iii)thedatetheEscrowAgentreceivesnoticefromtheSecuritiesandExchangeCommissionorany otherfederalorstateregulatory authoritythatastoporsimilarorderhasbeenissuedwithrespecttotheOffering,or(iv)thedatetheEscrowAgentinstitutesaninterpleaderorsimilaraction.AftertheTerminationDate,the Companyshallnotdeposit,andtheEscrowAgentshallnotaccept,anyadditionalamountsrepresenting paymentsbyprospectivePurchasers.
| 7. | DutyandLimitationonLiabilityoftheEscrowAgent. |
(a) TheEscrowAgent’srightsandresponsibilitiesshallbegovernedsolelybythisEscrowAgreement.NeithertheOfferingdocument,noranyotheragreementordocumentshallgoverntheEscrowAgentevenifsuchotheragreementordocumentisreferredtoherein,isdepositedwith,orisotherwiseknownto,theEscrowAgent.
(b) TheEscrowAgentshallbeundernodutytodeterminewhethertheCompanyiscomplyingwiththerequirementsoftheOfferingorapplicablesecuritiesorotherlawsintenderingtheInvestorFundstotheEscrowAgent.TheEscrowAgentshallnotberesponsiblefor,orberequiredtoenforce,anyofthetermsorconditionsofanyOfferingdocumentorotheragreementbetweentheCompanyandanyotherparty.
(c) TheEscrowAgentmayconclusivelyrelyuponandshallbefullyprotectedinactinguponanystatement,certificate,notice,request,consent,orderorotherdocumentbelievedbyittobegenuineandtohavebeensignedorpresentedbytheproperpartyorparties.TheEscrowAgentshallhavenodutyorliabilitytoverifyanysuchstatement,certificate,notice,
request,consent,orderorotherdocument.UponorbeforetheexecutionofthisEscrowAgreement,theCompanyshalldelivertotheEscrowAgentanAuthorizedRepresentativeslistintheformofExhibitCtothisEscrowAgreement.
(d) TheEscrowAgentshallbeundernoobligationtoinstituteand/ordefendanyaction,suitorproceedinginconnectionwiththisEscrowAgreementunlessfirstindemnifiedtoitssatisfaction.
(e) TheEscrowAgentmayconsultcounselofitsownchoicewithrespecttoanyquestionarisingunderthisEscrowAgreementandtheEscrowAgentshallnotbeliableforanyactiontakenoromittedingoodfaithupontheadviceofsuchcounsel.
(f) TheEscrowAgentshallnotbeliableforanyactiontakenoromittedbyitexcepttotheextentthatacourtofcompetentjurisdictiondeterminesthattheEscrowAgent’sgrossnegligenceorwillfulmisconductwastheprimarycauseofloss.
(g) TheEscrowAgentisactingsolelyasescrowagenthereunderandowesnoduties,covenantsorobligations,fiduciaryorotherwise,toanypersonbyreasonofthisEscrowAgreement,exceptasotherwiseexplicitlysetforthinthisEscrowAgreement,andnoimpliedduties,covenantsorobligations,fiduciaryorotherwise,shallbereadintothisEscrowAgreementagainsttheEscrowAgent.
(h) IntheeventofanydisagreementbetweenanyofthepartiestothisEscrowAgreement,orbetweenanyofthemandanyotherperson,includinganyInvestor,resultinginadverseorconflictingclaimsordemandsbeingmadeinconnectionwiththematterscoveredbythisEscrowAgreement,orin theeventthattheEscrowAgentisindoubtastowhatactionit shouldtakehereunder,theEscrowAgentmay,atitsoption,refusetocomplywithanyclaimsordemandsonit,orrefusetotakeanyotheractionhereunder,solongassuchdisagreementcontinuesorsuchdoubtexists,andinanysuchevent,theEscrowAgentshallnotbeorbecomeliableinanywayortoanypersonforitsfailureorrefusaltoact,andtheEscrowAgentshallbeentitledtocontinuesotorefrainfromactinguntil(i)therightsofallinterestedpartiesshallhavebeenfullyandfinallyadjudicatedbyacourtofcompetentjurisdiction,or(ii)alldifferencesshallhavebeenadjudgedandalldoubtresolvedbyagreementamongalloftheinterestedpersons,and theEscrowAgentshallhavebeennotifiedthereofinwritingsignedbyallsuchpersons.Notwithstandingtheforegoing,the EscrowAgentmayinitsdiscretionobeytheorder,judgment,decreeorlevyofanycourt,whetherwithorwithoutjurisdictionandtheEscrowAgentisherebyauthorizedinitssolediscretiontocomplywithandobeyanysuchorders,judgments,decreesorlevies.
(i) IntheeventthatanycontroversyshouldarisewithrespecttothisEscrowAgreement,theEscrowAgentshallhavetheright,atitsoption,toinstituteaninterpleaderactioninanycourtofcompetentjurisdictiontodeterminetherightsoftheparties.
(j) INNOEVENTSHALLTHEESCROWAGENTBELIABLE,DIRECTLYORINDIRECTLY,FORANYSPECIAL,INDIRECTORCONSEQUENTIALLOSSESORDAMAGESOFANYKINDWHATSOEVER(INCLUDINGWITHOUTLIMITATIONLOST
PROFITS),EVENIFTHEESCROWAGENTHASBEENADVISEDOFTHEPOSSIBILITYOFSUCHLOSSESORDAMAGESANDREGARDLESSOFTHEFORMOFACTION.
(k) ThepartiesagreethattheEscrowAgenthadnoroleinthepreparationoftheOfferingdocuments,hasnotreviewedanysuchdocuments,andmakesnorepresentationsorwarrantieswithrespecttotheinformationcontainedthereinoromittedtherefrom.
(l) TheEscrowAgentshallhavenoobligation,dutyorliabilitywithrespecttocompliancewithanyfederalorstatesecurities,disclosureortaxlawsconcerningtheOfferingdocumentsortheissuance,offeringorsaleoftheShares.
(m) TheEscrowAgentshallhavenodutyorobligationtomonitortheapplicationanduseoftheInvestorFundsoncetransferredtotheCompany,thatbeingthesoleobligationandresponsibilityoftheCompany.
8. EscrowAgent’sFee.TheEscrowAgentshallbeentitledtocompensationforitsservicesasstatedinthefeescheduleattachedheretoasExhibitF,whichcompensationshallbepaidbytheCompany.ThefeeagreeduponfortheservicesrenderedhereunderisintendedasfullcompensationfortheEscrowAgent’s servicesascontemplatedbythisEscrowAgreement;provided,however,thatintheeventthattheconditionsforthedisbursementoffundsunderthisEscrowAgreementarenotfulfilled,ortheEscrowAgentrendersanymaterialservicenotcontemplatedinthisEscrowAgreement,orthereisanyassignmentofinterestinthesubjectmatterofthisEscrowAgreement,oranymaterialmodificationhereof,orifanymaterial controversyariseshereunder,ortheEscrowAgentismadeaparty toanylitigationrelatingtothisEscrowAgreement,orthesubjectmatterhereof,thentheEscrowAgentshallbereasonablycompensatedforsuchextraordinaryservicesandreimbursedforallcostsandexpenses,includingattorney’sfeesandexpenses,occasionedbyany delay,controversy,litigationorevent,andthesameshallbepaidbytheCompany. TheCompany’sobligationsunderthisSection6shallsurvivetheresignationorremovaloftheEscrowAgentandtheassignmentorterminationof thisEscrowAgreement.
9. Notices.Allnotices,requests,demands,andothercommunicationsunderthisEscrowAgreementshallbeinwritingandshallbedeemedtohavebeendulygiven(a)onthedateofserviceifservedpersonallyonthepartytowhom noticeistobegiven,(b)onthedayoftransmissionifsentbyfacsimiletothefacsimilenumbergivenbelow,withwrittenconfirmationofreceipt,(c)onthedayafterdelivery toFederalExpressorsimilarovernightcourierorthe ExpressMailservicemaintainedby theUnitedStatesPostalService,or(d)onthefifthdayaftermailing,ifmailedtothepartytowhomnoticeistobegiven,byfirstclassmail,registeredorcertified,postageprepaid,andproperlyaddressed,returnreceiptrequested,tothepartyasfollows:
IftotheCompany:
ExquisiteAcquisition,Inc.
Attn:ThomasDeNunzio
780ReservoirAvenue,123
Cranston,RI02910
Phone:(401)-641-0405
Facsimile:(401)-633-7300
IftoEscrowAgent:
WilmingtonTrust,NationalAssociation
Attn:DebDaniello
280CongressStreet,Suite1300
Boston,MA02210
Phone:(617)457-2020
Facsimile:(617)457-2001
Anypartymaychangeitsaddressforpurposesofthissectionbygivingtheotherpartywrittennoticeofthenewaddressinthemannersetforthabove.
10. IndemnificationofEscrowAgent.TheCompanyherebyindemnifies,defendsandholdsharmlesstheEscrowAgentfromandagainst,anyandallloss,liability,cost,damageandexpense,including,withoutlimitation,reasonablecounselfeesandexpenses,whichtheEscrowAgentmaysufferorincurbyreasonofanyaction,claimorproceedingbroughtagainsttheEscrowAgentarisingoutoforrelatinginanywaytothisEscrowAgreementoranytransactiontowhichthisEscrowAgreementrelatesunlesssuchloss,liability,cost,damageorexpenseis finallydeterminedbyacourtofcompetentjurisdictiontohavebeenprimarilycausedbythegrossnegligenceorwillfulmisconductoftheEscrowAgent. Thetermsof thisSection10shallsurvivetheassignmentorterminationofthisEscrowAgreementandtheresignationorremovalof theEscrowAgent.
11. Resignation.TheEscrowAgentmayresignuponthirty(30)days’advancewrittennoticetotheCompany.Ifasuccessorescrowagentisnotappointedwithinthethirty(30)dayperiodfollowingsuchnotice,theEscrowAgentmaypetitionanycourtofcompetentjurisdictiontonameasuccessorescrowagentorinterpleadtheInvestorFundswithsuchcourt,whereupontheEscrowAgent’sdutieshereundershallterminate.
12. SuccessorsandAssigns.ExceptasotherwiseprovidedinthisEscrowAgreement,nopartyheretoshallassignthisEscrowAgreementoranyrightsorobligationshereunderwithoutthepriorwrittenconsentoftheotherpartiesheretoandanysuchattemptedassignmentwithoutsuchpriorwrittenconsentshallbevoidandofnoforce andeffect.ThisEscrowAgreementshallinuretothebenefitofandshallbebindinguponthesuccessorsandpermittedassignsofthepartieshereto.AnycorporationorassociationintowhichtheEscrowAgentmaybeconvertedormerged,orwithwhichitmaybeconsolidated,ortowhichitmaysellortransferallor substantiallyallofitscorporate trustbusinessandassetsinwholeorinpart,oranycorporationorassociationresultingfromany suchconversion,sale,merger,consolidationortransfertowhichtheEscrowAgent isaparty,shallbeandbecomethesuccessorescrowagentunderthisEscrowAgreementandshallhaveandsucceedtotherights,powers,duties,immunitiesand
privilegesasitspredecessor,withouttheexecutionorfilingofanyinstrumentorpaperortheperformanceanyfurtheract.
13. GoverningLaw;WaiverofJuryTrial.ThisEscrowAgreementshallbeconstrued,performed,andenforcedinaccordancewith,andgovernedby,theinternallawsoftheStateofDelaware,withoutgivingeffecttotheprinciplesofconflictsoflawsthereof.THEESCROWAGENTANDTHECOMPANYHEREBYWAIVEATRIALBYJURYOFANYANDALLISSUESARISINGINANYACTIONORPROCEEDINGBETWEENTHEMOR THEIRSUCCESSORSORASSIGNS,UNDERORINCONNECTIONWITHTHIS AGREEMENTORANYOFITSPROVISIONSORANYNEGOTIATIONSIN CONNECTION HEREWITH.
14. Severability.IntheeventthatanypartofthisEscrowAgreementisdeclaredbyanycourtorotherjudicialoradministrativebodytobenull,void,orunenforceable,saidprovisionshallsurvivetotheextentitisnotsodeclared,andalloftheotherprovisionsofthisEscrowAgreementshallremaininfullforceand effect.
15. Amendments;Waivers.ThisEscrowAgreementmaybeamendedormodified,andanyoftheterms,covenants,representations,warranties,orconditionshereofmaybewaived,onlybyawritteninstrumentexecutedbythepartieshereto,orinthecaseofawaiver,bythepartywaivingcompliance.Anywaiverbyanypartyofanycondition,orofthebreachofanyprovision,term,covenant,representation,orwarrantycontainedinthisEscrowAgreement,in anyoneormoreinstances,shallnotbedeemedto benorconstruedasfurtherorcontinuingwaiverofanysuchcondition,orofthebreachofanyotherprovision,term,covenant,representation,orwarrantyofthisEscrowAgreement. TheCompanyagreesthatanyrequestedwaiver,modificationoramendmentofthisEscrowAgreementshallbeconsistentwiththeterms oftheOffering.
16. EntireAgreement.ThisEscrowAgreementcontainstheentireunderstandingamongthepartiesheretowithrespecttotheescrowcontemplatedherebyandsupersedesandreplacesallpriorandcontemporaneousagreementsandunderstandings,oralorwritten,withregardtosuchescrow.
17. ReferencestoEscrowAgent.Noprintedorothermatterinanylanguage(including,withoutlimitation,theOfferingdocument,anysupplementoramendmentrelatingthereto,notices,reportsandpromotionalmaterial)whichmentionstheEscrowAgent’snameortherights,powers,orduties oftheEscrowAgentshallbeissuedbytheCompanyorontheCompany’sbehalfunlesstheEscrowAgentshallfirsthavegivenitsspecificwrittenconsentthereto.
18. SectionHeadings.ThesectionheadingsinthisEscrowAgreementareforreferencepurposesonlyandshallnotaffectthemeaningorinterpretationofthisEscrowAgreement.
19. Counterparts.ThisEscrowAgreementmaybeexecutedincounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichshallconstitutethesameinstrument.
| 20. | TaxReporting;TaxIndemnification. |
(a) TheCompanyacknowledgesthatforfederalincometaxpurposestheowneroftheEscrowedFundsistheCompanyandconsequently,theCompanyshallbesolelyresponsibleforpaymentofallfederal,stateorlocalincometaxesattributabletoearningsontheEscrowAccount.TheEscrowAgentisauthorizedanddirectedtopreparesendoneormoreForm1099stotheCompanyandtotakesuchotheractionastheEscrowAgentdeemsappropriateinitsreasonablyjudgmentinconnectionwiththereportingofearningsontheEscrowAccount.
(b) TheEscrowAgentshallhavenoobligationsimposednoworhereafterbyanyapplicabletaxlawwithrespecttoanypaymentordistributionoftheEscrowedFundsorperformanceofotheractivitiesunderthisEscrowAgreement.TheCompanyagrees(i)toinstructtheEscrowAgentinwritingwithrespecttotheEscrowAgent’sresponsibilityforwithholdingandothertaxes,assessmentsorothergovernmentalcharges,andtoinstructtheEscrowAgentwithrespecttoanycertificationsandgovernmentalreportingthatmayberequiredunderanylawsorregulationsthatmaybeapplicableinconnectionwithitsactingasEscrowAgentunderthisEscrowAgreement,and(ii)toindemnifyandholdtheEscrowAgentharmlessfromanyactualliability orobligationonaccount oftaxes,assessments,additionsforlatepayment,interest,penalties,actualandreasonableoutofpocketexpensesandothergovernmentalchargesthatmaybeassessedorassertedagainsttheEscrowAgentinconnectionwith,onaccountoforrelating totheEscrowedFunds,themanagementestablishedhereby,anypaymentordistributionoforfromtheEscrowedFundspursuanttothetermshereoforotheractivitiesperformedunderthetermsofthisEscrowAgreement,includingwithoutlimitationany liability forthewithholdingordeductionof(orthefailuretowithholdordeduct)thesame,and anyliabilityforfailuretoobtainpropercertificationsortoreportproperlytogovernmental authoritiesinconnectionwiththisEscrowAgreement,includingactualandreasonableoutofpocketcostsandexpenses(includingreasonablelegalfeesandexpenses),interestandpenalties. TheforegoingindemnificationandagreementtoholdharmlessshallsurvivetheterminationofthisEscrowAgreement.
[REMAINDEROFPAGEINTENTIONALLYLEFTBLANK]
INWITNESSWHEREOF,thepartiesheretohavecausedthisEscrowAgreementtobeexecutedthedayand yearfirstsetforthabove.
EXQUISITEACQUISITION,INC.
/s/ Thomas DeNunzio
By:ThomasDeNunzio
Its: President
WILMINGTONTRUST,NATIONALASSOCIATION,asEscrowAgent
/s/ Deborah M. Daniello
By:DeborahM.Daniello
Its:VicePresident
EXHIBITA
FormofPurchaserRejectionDisbursementNotice
[Date]
WilmingtonTrust,NationalAssociation(asEscrow Agent)
280CongressStreet,Suite1300
Boston,MA 02210
Attention:DeborahDanielloLadies andGentlemen
Re:EscrowAccountNo:116925-000,ExquisiteAcquisitionSubscriptionEscrow
Reference ismade totheEscrow Agreement,datedasofAugust2,2016enteredintobetweenExquisiteAcquisition,Inc.(the“Company”)and[WT entity],asescrow agent(the“EscrowAgent”)(the“EscrowAgreement”).Capitalizedtermsdefined intheEscrow Agreementshallhavethesamemeaningswhenusedherein.
Thisletteris aPurchaserRejectionDisbursementNoticereferred toinSection3(a)oftheEscrowAgreement.Pursuanttotheforegoingsection,theCompanyrejectsthesubscriptionproceedsof
(“Purchaser”).TheCompanyauthorizestheEscrowagenttotransferfunds toPurchaserwithinterestordividendsearnedon thefunds uptothedateofrelease,ifany.
Fundsshallbereturned byfirstclassmailorequallypromptmeans tothePurchaserwithinfivebusinessdays followingthedateofrelease.
ExquisiteAcquisition,Inc. herebyinstructsEscrow Agenttorelease[alloftheEscrow Fundsincludinginterestordividendincome, ifany]tothefollowingaccount:
| Amount: | [All funds in the Escrow Account] |
| Beneficiary Bank Name: | |
| Beneficiary Bank Address Line 1: | |
| Beneficiary Bank Address Line 2: | |
| Beneficiary Bank Address Line 3: | |
| ABA#: | |
| SWIFT#: | |
| Beneficiary Account Title: | |
| Beneficiary Account No./IBAN: | |
| Beneficiary Address Line 1: | |
| Beneficiary Address Line 2: | |
| Beneficiary Address |
| Line 3: | |
| Additional Information: |
ExquisiteAcquisition,Inc.
By:_______________
Name:ThomasDeNunzio
Title:President
Date:
EXHIBITB
FormofEscrowedFundsDisbursementNotice
[Date]
WilmingtonTrust,NationalAssociation(asEscrow Agent)
280CongressStreet,Suite1300
Boston,MA 02210
Attention:DeborahDaniello
Ladies andGentlemen
Re:EscrowAccountNo:116925-000,ExquisiteAcquisitionSubscriptionEscrow
Reference ismade totheEscrow Agreement,datedasofAugust2,2016enteredintobetweenExquisiteAcquisition,Inc.(the“Company”)and[WT entity],asescrow agent(the“EscrowAgent”)(the“EscrowAgreement”).Capitalizedtermsdefined intheEscrow Agreementshallhavethesamemeaningswhenusedherein.
Thisletteris anEscrowedFundsDisbursementNoticereferredtoinSection3(b)oftheEscrowAgreement.Pursuanttotheterms andconditionsof17CFR 230.419(e),theCompanyherebyrepresentsthattherequirementsof17CFR230.419Sections(e)(1),(e)(2),(e)(3)and(e)(4)have beenmetwhereastheCompanyhasfiled aPost-effectiveamendmentforacquisitionagreement.
(1) TheCompanyexecutedanagreement(s)fortheacquisitionsofbusiness(es)orassetsthatconstitutethebusiness(oraline ofbusiness)oftheCompanyandforwhichthefairvalue ofthebusiness(es)ornetassetsto beacquiredrepresentsatleast80percentofthemaximumofferingproceeds,includingproceedsreceived ortobereceivedupontheexerciseorconversionofanysecuritiesoffered, butexcludingamountspayabletonon-affiliatesforunderwritingcommissions,underwritingexpenses, anddealerallowances,theCompanyhasfiled apost-effectiveamendmentthat:
(2) Disclosestheinformationspecified bytheapplicableregistrationstatementformandIndustryGuides,includingfinancialstatementsoftheCompanyandthecompanyacquiredortobeacquiredandproformafinancialinformationrequired bytheformandapplicablerules andregulations;
| (3) | Disclosestheresultsoftheinitialoffering,includingbutnotlimitedto: |
(4) Thegrossofferingproceedsreceivedtodate,specifyingtheamountspaidforunderwritercommissions,underwritingexpensesanddealerallowances,amountsdisbursedtotheCompany, andamountsremainingintheescrow account;and
(5) Thespecificamount,useandapplicationoffundsdisbursed totheCompanyto date,including,butnotlimitedto,theamountspaidtoofficers,directors,promoters,controllingshareholdersoraffiliates,eitherdirectlyorindirectly,specifyingtheamountsandpurposesofsuchpayments;and
(6) Theprospectusshallbesupplemented toindicatetheamountoffundsandsecuritiesreleased andthedateofrelease.
(7) TheCompanyagrees tofurnishsecurityholdersauditedfinancialstatementsforthefirstfullyearofoperationsfollowingconsummation ofanacquisitiontogetherwiththeinformationrequired byItem303(a)ofRegulationS-K,nolaterthan 90daysafterthe endofsuchfiscalyear;and
(8) FilethefinancialstatementsandadditionalinformationwiththeCommissionundercoverofForm8K;providedhowever,thatsuchfinancialstatementsandrelatedinformation neednotbefiledseparatelysincetheCompanyisfilingreportspursuanttoSection15(d)oftheExchange Act.
| (9) | Theterms oftheofferingprovides, andtheCompanyhassatisfiedthefollowingconditions. |
(i) Withinfivebusinessdaysaftertheeffectivedate ofthepost-effectiveamendment(s),theCompanysentbyfirstclassmailorotherequallypromptmeans, toeachPurchaserofsecuritiesheldinescrow,acopyoftheprospectuscontainedinthepost-effectiveamendmentand anyamendmentorsupplementthereto;
(ii) EachPurchaserhadnofewerthan 20businessdaysand nomorethan 45businessdaysfromtheeffectivedate ofthepost-effectiveamendmenttonotifytheCompanyin writingthatthePurchaserelectstoremainaninvestor.IftheCompanydidnotreceive suchwrittennotificationbythe45thbusiness dayfollowingtheeffectivedateofthepost-effectiveamendment,fundsandinterestordividends,ifany,held intheescrow accountwassentbyfirstclassmailorotherequallypromptmeans tothePurchaserwithinfivebusinessdays;
(iii) Theacquisition(s)meetingthecriteriasetforthinparagraph (1)ofthissectionwereconsummatedwhereas asufficientnumberofPurchasershaveconfirmed theirinvestments;and
(iv) TheCompanyhasconsummated anacquisition(s)meetingtherequirements of17CFR230.419(e)within18monthsaftertheeffectivedateoftheinitialregistrationstatement.
ExquisiteAcquisition,Inc. herebyinstructsEscrow Agenttorelease[alloftheEscrow Funds]tothefollowingaccount:
| Amount: | [All funds in the Escrow Account] |
| Beneficiary Bank Name: | |
| Beneficiary Bank Address Line 1: | |
| Beneficiary Bank Address Line 2: | |
| Beneficiary Bank Address Line 3: | |
| ABA#: | |
| SWIFT#: | |
| Beneficiary Account Title: | |
| Beneficiary Account No./IBAN: | |
| Beneficiary Address Line 1: | |
| Beneficiary Address Line 2: | |
| Beneficiary Address |
| Line 3: | |
| Additional Information: |
ExquisiteAcquisition,Inc.
By:___________
Name:ThomasDeNunzio
Title:President
Date:
EXHIBITC
CERTIFICATEASTOAUTHORIZEDREPRESENTATIVESOFEXQUISITEACQUISITION,INC.
ExquisiteAcquisition,Inc.,(the“Company”)herebydesignateseachofthefollowingpersonsasitsAuthorizedRepresentativesforpurposesofthisEscrowAgreement,andconfirmsthatthetitle,contactinformationandspecimensignatureofeachsuchpersonassetforthbelowistrueandcorrect.EachsuchAuthorizedRepresentative isauthorizedtoinitiateand approvetransactions ofalltypesfor the Escrow Account[s]establishedunder theAgreement towhich thisExhibitCisattached,onbehalfoftheCompany
| Name (print): | Thomas DeNunzio | |
| Specimen Signature: | ||
| Title: | President | |
Telephone Number (required): If more than one, list all applicable telephone numbers. | Office: 401-641-0405 Cell: 401-641-0405 Home: Other: | |
E-mail (required): If more than one, list all applicable email addresses. | Email 1: tom@vfinancialgroup.com Email 2: | |
| Facsimile: | ||
| Country of Citizenship: U.S.A | Country of Residence: U.S.A | |
| Date of Birth: | Social Security Number (optional): | |
| Name (print): | ||
| Specimen Signature: | ||
| Title: | ||
Telephone Number (required): If more than one, list all applicable telephone numbers. | Office: Cell: Home: Other: | |
E-mail (required): If more than one, list all applicable email addresses. | Email 1: Email 2: | |
| Facsimile: | ||
| Country of Citizenship: | Country of Residence: | |
| Name (print): | ||
| Specimen Signature: | ||
| Title: | ||
Telephone Number (required): If more than one, list all applicable telephone numbers. | Office: Cell: Home: Other: | |
E-mail (required): If more than one, list all applicable email addresses. | Email 1: Email 2: | |
| Facsimile: | ||
| Country of Citizenship: | Country of Residence: | |
| Date of Birth: | Social Security Number (optional): | |
AdditionalEmailAddresses:
ThefollowingadditionalemailaddressesalsomaybeusedbyEscrowAgenttoverify theemailaddressusedtosendtheEscrowFundsReleaseNoticetoEscrowAgent:
Email1: _________Email2: _____________Email3: _____________
COMPLETE BELOWTOUPDATE EXHIBITC
IfExquisiteAcquisition,Inc.wishestoupdatethisExhibitC,thentheCompanymustcomplete,signandsendtoEscrowAgentanupdatedcopyofthisExhibitCwithsuchchanges.AnyupdatedExhibitCshallbeeffectiveoncesignedbytheCompanyandEscrowAgentandshallentirelysupersedeandreplaceanypriorExhibitCtothisEscrow Agreement.
ExquisiteAcquisition,Inc.
By: _______________
Name:ThomasDeNunzio
Title:President
Date:
WilmingtonTrust,NationalAssociation(asEscrow Agent)
By: _______________
Name:
Title:
Date:
EXHIBITD
ListofPurchasers
PursuanttotheEscrowAgreementdatedAugust2,2016byandbetweenExquisiteAcquisition,Inc.,(the“Company”),andWilmingtonTrust,NationalAssociation,asescrowagent(the“EscrowAgent”),theCompanyherebycertifiesthatthefollowingPurchasershavepaidmoneyforthepurchaseof(the“Shares”),andthemoneyhasbeendepositedwiththeEscrowAgent:
| 1. | NameofSubscriberAddress |
TaxIdentificationNumberNumberofSharessubscribedfor
AmountofmoneypaidanddepositedwithEscrowAgent
| 2. | NameofSubscriberAddress |
TaxIdentificationNumberNumberofSharessubscribedfor
AmountofmoneypaidanddepositedwithEscrowAgent
EXQUISITEACQUISITION,INC.
________________________
By:ThomasDeNunzio
Its:President
Date:
EXHIBITE
FORMOFTERMINATIONDATEDISBURSEMENTNOTICE
[Date]
WilmingtonTrust,NationalAssociation(asEscrow Agent)280CongressStreet,Suite1300
Boston,MA 02210Attention:DeborahDanielloLadies andGentlemen:
Re:EscrowAccountNo:116925-000,ExquisiteAcquisitionSubscriptionEscrow
PursuanttoSection6(i)oftheEscrow AgreementbetweenExquisiteAcquisition,Inc.(“Company”)andWilmingtonTrust,NationalAssociation(“EscrowAgent”),datedasofAugust2,2016(“EscrowAgreement”),thisistoadviseyouthattheCompanyhas beenunabletoeffectabusinesscombinationwith aTargetBusiness(“BusinessCombination”)withineighteen(18)monthsaftertheeffectivedateoftheinitialregistrationstatementfiled bytheCompany.
Inaccordancewiththeterms oftheEscrow Agreement,weherebyauthorizeyou toliquidatealloftheassetsintheEscrow AccountasofthedateofthisNotice ofTerminationandtotransferthefundstothePurchasersofrecordentitledtoreceive theirshareoftheliquidationproceedsincludinginterestordividendsearned,ifanywithinfivebusinessdaysfollowingthedateofnotice.Upon thedistribution ofallthefunds,yourobligationsundertheEscrow Agreementshallbeterminated.
Verytrulyyours,
ExquisiteAcquisition,Inc.
____________________
By:Name:ThomasDeNunzio
Title:President
EXHIBITF
ESCROWAGENTFEES
EscrowAgentServices
One-TimeEscrowAgentAdministrationFee$4,000
ForordinaryadministrativeservicesbyEscrowAgent–includesdailyroutineaccountmanagement;investmenttransactions;cashtransactionprocessing(includingwireandcheckprocessing);monitoringnoticespursuanttotheagreement;disbursementoffundsinaccordancewiththeagreement;andmailingoftrustaccountstatementstoallapplicableparties.
AdministrationFeepayableattimeofEscrowAgreementexecution
Out-of-PocketExpenses: Ifany,BilledAtCost
