Exhibit 10.2
ESCROW AGREEMENT
This
Closing Escrow Agreement, dated as of October 2, 2009 (this “
Agreement ”), is entered into by and among China
Security & Surveillance Technology, Inc., a Delaware
corporation (the “ Company ”), Brean Murray,
Carret & Co., LLC, with its principal offices at 570 Lexington
Avenue, New York, NY 10022 (the “ Placement
Agent ”), and Escrow, LLC, with an address at 20 Rock
Pointe, Suite 204, Warrenton, Virginia 20186 (the “ Escrow
Agent ”). The Placement Agent and the Company are
sometimes referred to herein as the Escrowing Parties.
WITNESSETH:
WHEREAS, the Company proposes to effect a take
down of an effective shelf registration statement on Form S-3 (the
“ Registration Statement ”) pursuant to a
prospectus supplement (the “ Supplement ”) and
has retained the Placement Agent to assist in such take down on a
best efforts basis;
WHEREAS, the Company and the Placement Agent
desire that certain investors (the “ Investors
”) deposit the monies to be invested in the Company (the
“ Escrowed Funds ”) pending a closing of
the takedown with the Escrow Agent (the “ Closing
”), to be held in escrow until written instructions are
received by the Escrow Agent from the Placement Agent, at which
time the Escrow Agent will disburse the Escrowed Funds in
accordance with the instructions; and
WHEREAS, Escrow Agent is willing to hold the
Escrowed Funds in escrow in subject to the terms and conditions of
this Agreement.
NOW,
THEREFORE, in consideration of the mutual promises herein contained
and intending to be legally bound, the parties hereby agree as
follows:
1.
Appointment of Escrow Agent
. The Company hereby appoints the
Escrow Agent as escrow agent for the Investors and the Escrowed
Funds in accordance with the terms and conditions set forth herein
and the Escrow Agent hereby accepts such appointment. Escrow
Agent.
2.
Delivery of the Escrowed Funds.
2.1
The Company will direct Investors to deliver the
Escrowed Funds to the Escrow Agent, addressed to the following
account of the Escrow Agent:
Domestic Wires
Virginia Commerce Bank Leesburg, VA
ABA# 056005253
Account Name: Escrow, LLC
Account #: 01194186
International Wires
Correspondent Bank: Wells Fargo Bank
San Francisco, CA
SWIFT# WFBIUS6S
Credit Acct: 412-11-08146
Virginia Commerce Bank
FBO Account Name: Escrow, LLC
Account #: 01194186
2.2
(a)
All Investors’ checks shall be made payable to “ESCROW,
LLC” and shall be delivered to the Escrow Agent at the
address set forth on Exhibit A hereto and shall be
accompanied by a written account of the subscription in the form
attached hereto as Exhibit B (the “ Subscription
Information ”). The Escrow Agent shall, upon receipt of
Escrowed Funds deposit such funds in escrow.
2.3
Any
checks which are received by Escrow Agent that are made payable to
a party other than the Escrow Agent shall be returned directly to
the Company together with any documents delivered therewith.
Simultaneously with each deposit, the Company shall provide the
Escrow Agent with the Subscription Information to include the name,
address and taxpayer identification number of each Investor. The
Escrow Agent is not obligated, and may refuse, to accept checks
that are not accompanied by Subscription Information.
2.4
In the
event a wire transfer is received by the Escrow Agent and the
Escrow Agent has not received Subscription Information, the Escrow
Agent shall notify the Company. If the Escrow Agent does not
receive the Subscription Information relating to an Investor prior
to the close of business on the third business day (days other than
a Saturday or Sunday or other day on which the Escrow Agent is not
open for business in the State of Virginia) after notifying Company
of receipt of said wire, the Escrow Agent shall return the funds to
the Investor.
3.
Escrow Agent to Hold and Disburse Escrowed
Funds. The Escrow Agent
will hold and disburse the Escrowed Funds received by it pursuant
to the terms of this Escrow Agreement, as follows:
3.1
Upon
receipt of joint instructions from the Company and the Placement
Agent, in substantially the form of Exhibit C hereto, the
Escrow Agent shall release the Escrowed Funds as directed in such
instructions. The Company, the Placement Agent and Escrow Agent
also hereby agree that in the event that any Investor requests the
return of Escrowed Funds deposited by it, such funds will be
returned by Escrow, LLC.
3.2
(i) In
the event this Agreement, the Escrowed Funds or the Escrow Agent
becomes the subject of litigation relating to this Agreement or the
Escrowed Funds, the Company and the Placement Agent authorize the
Escrow Agent to deposit the Escrowed Funds with the clerk of the
court in which the litigation is pending, or a court of competent
jurisdiction if no litigation is pending, or (ii) subject to
compliance with Section 5.2, the Escrow Agent desires to resign,
the Company and the Placement Agent authorize the Escrow Agent to
return the Escrowed Funds to the Investors from which they were
received, and thereupon the Escrow Agent shall be fully relieved
and discharged of any further responsibility with regard thereto.
The Company and the Placement Agent also authorize the Escrow
Agent, if it receives conflicting claims to the Escrow Funds, is
threatened with litigation or if the Escrow Agent shall desire to
do so for any other reason, to interplead all interested parties in
any court of competent jurisdiction and to deposit the Escrowed
Funds with the clerk of that court and thereupon the Escrow Agent
shall be fully relieved and discharged of any further
responsibility hereunder to the parties from which they were
received.
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3.3
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