<PAGE>

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "AGREEMENT") is made and entered into as of
January __, 2004 by NEWTECH BRAKE CORP., a Delaware corporation (the "COMPANY");
CORNELL CAPITAL PARTNERS,  LP, a Delaware limited  partnership (the "INVESTOR");
and BUTLER GONZALEZ LLP (the "ESCROW AGENT").


                                   BACKGROUND

         WHEREAS,  the Company and the Investor have entered into an Equity Line
of Credit Agreement (the "EQUITY LINE OF CREDIT AGREEMENT") dated as of the date
hereof, pursuant to which the Investor will purchase the Company's Common Stock,
par value $0.0001 per share (the "COMMON STOCK"),  at a price per share equal to
the  Purchase  Price,  as that  term is  defined  in the  Equity  Line of Credit
Agreement,  for an aggregate price of up to Ten Million  Dollars  ($10,000,000).
The Equity  Line of Credit  Agreement  provides  that on each  Advance  Date the
Investor, as that term is defined in the Equity Line of Credit Agreement,  shall
deposit  the  Advance  pursuant to the  Advance  Notice in a  segregated  escrow
account to be held by Escrow Agent and the Company shall  deposit  shares of the
Company's Common Stock, which shall be purchased by the Investor as set forth in
the  Equity  Line of  Credit  Agreement,  with  the  Escrow  Agent,  in order to
effectuate a disbursement  to the Company of the Advance by the Escrow Agent and
a  disbursement  to the Investor of the shares of the Company's  Common Stock by
Escrow  Agent at a closing to be held as set forth in the Equity  Line of Credit
Agreement (the "CLOSING").

         WHEREAS,  Escrow  Agent has agreed to accept,  hold,  and  disburse the
funds  and  the  shares  of the  Company's  Common  Stock  deposited  with it in
accordance with the terms of this Agreement.

         WHEREAS, in order to establish the escrow of funds and shares to effect
the provisions of the Equity Line of Credit  Agreement,  the parties hereto have
entered into this Agreement.

         NOW THEREFORE,  in consideration of the foregoing,  it is hereby agreed
as follows:

         1. DEFINITIONS.  The following terms shall have the following  meanings
when used herein:

                  a. "ESCROW FUNDS" shall mean the Advance funds  deposited with
the Escrow Agent pursuant to this Agreement.

                  b. "JOINT WRITTEN  DIRECTION"  shall mean a written  direction
executed by the Investor and the Company  directing Escrow Agent to disburse all
or a portion of the Escrow  Funds or to take or refrain  from  taking any action
pursuant to this Agreement.

                  c. "COMMON STOCK JOINT WRITTEN DIRECTION" shall mean a written
direction executed by the Investor and the Company directing  Investor's Counsel
to disburse all or a portion of the shares of the  Company's  Common Stock or to
refrain from taking any action pursuant to this Agreement.


<PAGE>

2. APPOINTMENT OF AND ACCEPTANCE BY ESCROW AGENT.

a. The Investor and the Company  hereby  appoint Escrow Agent to serve as Escrow
Agent hereunder.  Escrow Agent hereby accepts such appointment and, upon receipt
by wire transfer of the Escrow Funds in accordance with Section 3 below,  agrees
to hold, invest and disburse the Escrow Funds in accordance with this Agreement.

b. The Investor and the Company  hereby appoint the Escrow Agent to serve as the
holder of the shares of the  Company's  Common Stock which shall be purchased by
the Investor. The Escrow Agent hereby accepts such appointment and, upon receipt
via  D.W.A.C or the  certificates  representing  of the shares of the  Company's
Common Stock in accordance with Section 3 below, agrees to hold and disburse the
shares of the Company's Common Stock in accordance with this Agreement.

c. The  Company  hereby  acknowledges  that the  Escrow  Agent is counsel to the
Investor in connection with the transactions contemplated and referenced herein.
The Company agrees that in the event of any dispute  arising in connection  with
this Escrow  Agreement  or  otherwise  in  connection  with any  transaction  or
agreement  contemplated  and  referenced  herein,  the  Escrow  Agent  shall  be
permitted to continue to represent the Investor and the Company will not seek to
disqualify such counsel.

         3. CREATION OF ESCROW ACCOUNT/COMMON STOCK ACCOUNT.

                  a. On or prior to the date of this  Agreement the Escrow Agent
shall  establish an escrow  account for the deposit of the Escrow Funds entitled
as follows:  Newtech Brake Corp/Cornell Capital Partners,  LP. The Investor will
wire funds to the account of the Escrow Agent as follows:

BANK:                   Wachovia, N.A. of New Jersey
ROUTING #:              031201467
ACCOUNT #:              2020000659170
NAME ON ACCOUNT:        Butler Gonzalez LLP as Escrow Agent
NAME ON SUB-ACCOUNT:    Newtech Brake Corp /Cornell Capital Partners, LP Escrow
                        account

                  b. On or prior to the date of this  Agreement the Escrow Agent
shall establish an account for the D.W.A.C.  of the shares of Common Stock.  The
Company will D.W.A.C. shares of the Company's Common Stock to the account of the
Escrow Agent as follows:

BROKERAGE FIRM:          Crown Financial Group
CLEARING HOUSE:          Fiserv
ACCOUNT #:               56797702
DTC #:                   0632
NAME ON ACCOUNT:         Butler Gonzalez LLP Escrow Account

         4. DEPOSITS INTO THE ESCROW ACCOUNT.  The Investor agrees that it shall
promptly  deliver all monies for the  payment of the Common  Stock to the Escrow
Agent for deposit in the Escrow Account.

                                       2
<PAGE>

         5. DISBURSEMENTS FROM THE ESCROW ACCOUNT.

                  a. At such time as Escrow Agent has  collected  and  deposited
instruments  of payment in the total amount of the Advance and has received such
Common Stock via D.W.A.C from the Company which are to be issued to the Investor
pursuant to the Equity Line of Credit  Agreement,  the Escrow Agent shall notify
the Company and the Investor.  The Escrow Agent will continue to hold such funds
until the Investor  and Company  execute and deliver a Joint  Written  Direction
directing  the Escrow  Agent to  disburse  the Escrow  Funds  pursuant  to Joint
Written  Direction at which time the Escrow Agent shall wire the Escrow Funds to
the Company.  In disbursing such funds,  Escrow Agent is authorized to rely upon
such Joint Written  Direction from Company and may accept any signatory from the
Company  listed on the signature  page to this  Agreement and any signature from
the Investor that Escrow Agent already has on file.  Simultaneous  with delivery
of the  executed  Joint  Written  Direction to the Escrow Agent the Investor and
Company shall execute and deliver a Common Stock Joint Written  Direction to the
Escrow Agent  directing  the Escrow Agent to release via D.W.A.C to the Investor
the shares of the  Company's  Common Stock.  In releasing  such shares of Common
Stock the  Escrow  Agent is  authorized  to rely upon such  Common  Stock  Joint
Written  Direction  from Company and may accept any  signatory  from the Company
listed on the signature page to this Agreement and any signature from the Escrow
Agent has on file.

         In the  event the  Escrow  Agent  does not  receive  the  amount of the
Advance  from the  Investor or the shares of Common Stock to be purchased by the
Investor  from the  Company,  the Escrow  Agent shall notify the Company and the
Investor.

         In the event that the Escrow Agent has not received the Common Stock to
be purchased by the Investor from the Company, in no event will the Escrow Funds
be  released  to the  Company  until  such  shares  are  received  by the Escrow
Agreement.  For purposes of this Agreement, the term "Common Stock certificates"
shall mean Common Stock  certificates to be purchased pursuant to the respective
Advance Notice pursuant to the Equity Line of Credit Agreement.

         6. DEPOSIT OF FUNDS.  The Escrow Agent is hereby  authorized to deposit
the wire transfer proceeds in the Escrow Account.

         7. SUSPENSION OF PERFORMANCE: DISBURSEMENT INTO COURT.

                  a. ESCROW AGENT. If at any time, there shall exist any dispute
between the Company and the Investor with respect to holding or  disposition  of
any portion of the Escrow Funds or the Common Stock or any other  obligations of
Escrow Agent  hereunder,  or if at any time Escrow Agent is unable to determine,
to Escrow Agent's sole  satisfaction,  the proper  disposition of any portion of
the  Escrow  Funds  or  Escrow  Agent's  proper  actions  with  respect  to  its

                                       3
<PAGE>

obligations hereunder, or if the parties have not within thirty (30) days of the
furnishing  by Escrow  Agent of a notice of  resignation  pursuant  to Section 9
hereof,  appointed a successor Escrow Agent to act hereunder,  then Escrow Agent
may, in its sole discretion, take either or both of the following actions:

                  i.  Suspend  the   performance  of  any  of  its   obligations
(including  without  limitation any disbursement  obligations) under this Escrow
Agreement  until  such  dispute or  uncertainty  shall be  resolved  to the sole
satisfaction  of  Escrow  Agent  or  until a  successor  Escrow  Agent  shall be
appointed (as the case may be); provided however, Escrow Agent shall continue to
invest the Escrow Funds in accordance with Section 8 hereof; and/or

                  ii. petition (by means of an interpleader  action or any other
appropriate method) any court of competent  jurisdiction in any venue convenient
to Escrow Agent, for  instructions  with respect to such dispute or uncertainty,
and to the  extent  required  by law,  pay into  such  court,  for  holding  and
disposition in accordance with the instructions of such court, all funds held by
it in the Escrow Funds,  after deduction and payment to Escrow Agent of all fees
and expenses  (including  court costs and attorneys'  fees) payable to, incurred
by, or expected to be incurred by Escrow Agent in connection with performance of
its duties and the exercise of its rights hereunder.

                  iii. Escrow Agent shall have no liability to the Company,  the
Investor,  or any person with respect to any such  suspension of  performance or
disbursement  into  court,  specifically  including  any  liability  or  claimed
liability that may arise, or be alleged to have arisen, out of or as a result of
any delay in the  disbursement of funds held in the Escrow Funds or any delay in
with respect to any other action required or requested of Escrow Agent.

         8.  INVESTMENT  OF ESCROW  FUNDS.  The Escrow  Agent shall  deposit the
Escrow Funds in a non-interest bearing money market account.

         If Escrow Agent has not received a Joint Written  Direction at any time
that an  investment  decision  must be made,  Escrow Agent may retain the Escrow
Fund, or such portion thereof,  as to which no Joint Written  Direction has been
received, in a non-interest bearing money market account.

         9.  RESIGNATION  AND REMOVAL OF ESCROW  AGENT.  Escrow Agent may resign
from the  performance of its duties  hereunder at any time by giving thirty (30)
days' prior  written  notice to the  parties or may be removed,  with or without
cause, by the parties,  acting jointly,  by furnishing a Joint Written Direction
to Escrow  Agent,  at any time by the  giving of ten (10)  days'  prior  written
notice  to  Escrow  Agent as  provided  herein  below.  Upon any such  notice of
resignation  or removal,  the  representatives  of the  Investor and the Company
identified  in Sections  13a.(iv) and 13b.(iv),  below,  jointly shall appoint a
successor  Escrow  Agent  hereunder,  which shall be a  commercial  bank,  trust
company or other financial  institution  with a combined  capital and surplus in
excess of  $10,000,000.00.  Upon the acceptance in writing of any appointment of
Escrow Agent hereunder by a successor Escrow Agent,  such successor Escrow Agent
shall  thereupon  succeed  to and become  vested  with all the  rights,  powers,
privileges  and duties of the retiring  Escrow  Agent,  and the retiring  Escrow
Agent  shall be  discharged  from its duties and  obligations  under this Escrow
Agreement,  but shall not be discharged  from any liability for actions taken as
Escrow Agent  hereunder  prior to such  succession.  After any  retiring  Escrow
Agent's  resignation or removal,  the provisions of this Escrow  Agreement shall

                                       4
<PAGE>

inure to its benefit as to any actions  taken or omitted to be taken by it while
it was Escrow Agent under this Escrow Agreement. The retiring Escrow Agent shall
transmit all records pertaining to the Escrow Funds and shall pay all funds held
by it in the Escrow Funds to the successor Escrow Agent,  after making copies of
such records as the retiring  Escrow Agent deems  advisable and after  deduction
and payment to the retiring  Escrow  Agent of all fees and  expenses  (including
court costs and  attorneys'  fees)  payable to,  incurred  by, or expected to be
incurred by the retiring  Escrow Agent in connection with the performance of its
duties and the exercise of its rights hereunder.

         10. LIABILITY OF ESCROW AGENT.

                  a. Escrow  Agent shall have no liability  or  obligation  with
respect to the Escrow  Funds except for Escrow  Agent's  willful  misconduct  or
gross  negligence.   Escrow  Agent's  sole  responsibility   shall  be  for  the
safekeeping, investment, and disbursement of the Escrow Funds in accordance with
the terms of this  Agreement.  Escrow  Agent  shall  have no  implied  duties or
obligations  and shall not be charged  with  knowledge  or notice or any fact or
circumstance not  specifically set forth herein.  Escrow Agent may rely upon any
instrument,  not only as to its due execution,  validity and effectiveness,  but
also as to the truth and accuracy of any information  contained  therein,  which
Escrow Agent shall in good faith  believe to be genuine,  to have been signed or
presented  by the person or parties  purporting  to sign the same and conform to
the provisions of this  Agreement.  In no event shall Escrow Agent be liable for
incidental,  indirect,  special,  and consequential or punitive damages.  Escrow
Agent shall not be obligated to take any legal action or commence any proceeding
in  connection  with the Escrow  Funds,  any account in which  Escrow  Funds are
deposited,  this Agreement or the Equity Line of Credit Agreement,  or to appear
in,  prosecute or defend any such legal action or  proceeding.  Escrow Agent may
consult legal counsel  selected by it in the event of any dispute or question as
to construction of any of the provisions hereof or of any other agreement or its
duties  hereunder,  or relating to any dispute  involving any party hereto,  and
shall  incur no  liability  and shall be fully  indemnified  from any  liability
whatsoever  in acting in  accordance  with the opinion or  instructions  of such
counsel.  The Company and the Investor jointly and severally shall promptly pay,
upon  demand,  the  reasonable  fees and expenses of any such counsel and Escrow
Agent is hereby  authorized  to pay such fees and  expenses  from  funds held in
escrow.

                  b.  The  Escrow  Agent  is  hereby  authorized,  in  its  sole
discretion,  to comply with orders  issued or process  entered by any court with
respect to the Escrow Funds,  without  determination by the Escrow Agent of such
court's jurisdiction in the matter. If any portion of the Escrow Funds is at any
time  attached,  garnished or levied upon under any court order,  or in case the
payment, assignment, transfer, conveyance or delivery of any such property shall
be stayed or enjoined by any court order,  or in any case any order  judgment or
decree shall be made or entered by any court affecting such property or any part
thereof, then and in any such event, the Escrow Agent is authorized, in its sole
discretion, to rely upon and comply with any such order, writ judgment or decree
which it is advised by legal counsel  selected by it,  binding upon it,  without
the need for appeal or other action;  and if the Escrow Agent  complies with any
such  order,  writ,  judgment  or  decree,  it shall not be liable to any of the

                                       5
<PAGE>

parties  hereto  or to any other  person or entity by reason of such  compliance
even though such order,  writ judgment or decree may be  subsequently  reversed,
modified, annulled, set aside or vacated.

         11.  INDEMNIFICATION  OF ESCROW AGENT.  From and at all times after the
date of this Agreement, the parties jointly and severally, shall, to the fullest
extent  permitted by law and to the extent provided  herein,  indemnify and hold
harmless Escrow Agent and each director, officer, employee,  attorney, agent and
affiliate of Escrow Agent (collectively,  the "INDEMNIFIED PARTIES") against any
and all actions,  claims (whether or not valid), losses,  damages,  liabilities,
costs  and  expenses  of  any  kind  or  nature  whatsoever  (including  without
limitation  reasonable  attorney's  fees,  costs and  expenses)  incurred  by or
asserted against any of the Indemnified  Parties from and after the date hereof,
whether direct, indirect or consequential,  as a result of or arising from or in
any way relating to any claim,  demand,  suit, action, or proceeding  (including
any inquiry or  investigation) by any person,  including without  limitation the
parties to this Agreement,  whether  threatened or initiated,  asserting a claim
for any legal or  equitable  remedy  against  any  person  under any  statute or
regulation, including, but not limited to, any federal or state securities laws,
or under any common law or  equitable  cause or  otherwise,  arising  from or in
connection with the negotiation,  preparation, execution, performance or failure
of performance of this Agreement or any transaction contemplated herein, whether
or not any such  Indemnified  Party is a party to any such action or proceeding,
suit or the target of any such inquiry or investigation; provided, however, that
no  Indemnified  Party  shall  have the right to be  indemnified  hereunder  for
liability finally determined by a court of competent jurisdiction, subject to no
further  appeal,  to have resulted  solely from the gross  negligence or willful
misconduct  of such  Indemnified  Party.  If any such  action or claim  shall be
brought or asserted against any Indemnified  Party, such Indemnified Party shall
promptly notify the Company and the Investor  hereunder in writing,  and the and
the Company  shall  assume the defense  thereof,  including  the  employment  of
counsel and the payment of all expenses.  Such  Indemnified  Party shall, in its
sole discretion,  have the right to employ separate counsel (who may be selected
by such  Indemnified  Party in its sole  discretion)  in any such  action and to
participate and to participate in the defense thereof, and the fees and expenses
of such  counsel  shall  be paid by such  Indemnified  Party,  except  that  the
Investor  and/or the  Company  shall be required to pay such fees and expense if
(a) the Investor or the Company agree to pay such fees and expenses,  or (b) the
Investor  and/or the Company  shall fail to assume the defense of such action or
proceeding or shall fail, in the sole discretion of such  Indemnified  Party, to
employ counsel  reasonably  satisfactory  to the  Indemnified  Party in any such
action or proceeding,  (c) the Investor and the Company are the plaintiff in any
such  action or  proceeding  or (d) the named or  potential  parties to any such
action or proceeding  (including any potentially impleaded parties) include both
Indemnified  Party the Company and/or the Investor and  Indemnified  Party shall
have been  advised  by  counsel  that  there may be one or more  legal  defenses
available to it which are different from or additional to those available to the
Company or the  Investor.  The  Investor  and the  Company  shall be jointly and
severally  liable to pay fees and expenses of counsel  pursuant to the preceding
sentence, except that any obligation to pay under clause (a) shall apply only to
the party so agreeing.  All such fees and expenses payable by the Company and/or
the Investor pursuant to the foregoing  sentence shall be paid from time to time
as incurred,  both in advance of and after the final  disposition of such action
or claim.  The  obligations  of the parties under this section shall survive any
termination of this  Agreement,  and  resignation or removal of the Escrow Agent
shall be independent of any obligation of Escrow Agent.

                                       6
<PAGE>

         12.  EXPENSES  OF ESCROW  AGENT.  Except as set forth in Section 11 the
Company shall  reimburse  Escrow Agent for all of its  reasonable  out-of-pocket
expenses,  including  attorneys' fees, travel expenses,  telephone and facsimile
transmission  costs,  postage  (including  express mail and  overnight  delivery
charges), copying charges and the like as outlined in Section 12.4 of the Equity
Line of Credit  Agreement  dated the date hereof.  All of the  compensation  and
reimbursement  obligations  set forth in this  Section  shall be  payable by the
Company,  upon demand by Escrow Agent. The obligations of the Company under this
Section shall survive any  termination of this Agreement and the  resignation or
removal of Escrow Agent.

         13. WARRANTIES.

                  a.  The  Investor  makes  the  following  representations  and
warranties to the Escrow Agent and Investor's Counsel:

                  i. The  Investor  has full power and  authority to execute and
deliver this Agreement and to perform its obligations hereunder.

                  ii. This  Agreement  has been duly  approved by all  necessary
action of the Investor,  including any necessary approval of the limited partner
of the Investor, has been executed by duly authorized officers of the Investor's
general partner, enforceable in accordance with its terms.

                  iii. The execution,  delivery, and performance of the Investor
of this Agreement will not violate,  conflict with, or cause a default under the
agreement  of  limited  partnership  of  the  Investor,  any  applicable  law or
regulation,  any  court  order or  administrative  ruling or degree to which the
Investor  is a  party  or any of its  property  is  subject,  or any  agreement,
contract, indenture, or other binding arrangement.

                  iv.  Mark A.  Angelo  has been  duly  appointed  to act as the
representative  of  Investor  hereunder  and has full  power  and  authority  to
execute,  deliver, and perform this Agreement,  to execute and deliver any Joint
Written Direction,  to amend,  modify, or waive any provision of this Agreement,
and to take any and all other  actions as the  Investor's  representative  under
this Agreement, all without further consent or direction form, or notice to, the
Investor or any other party.

                  v. No party other than the parties hereto have, or shall have,
any lien, claim or security interest in the Escrow Funds or any part thereof. 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 Escrow Funds or any part thereof.

                  vi. All of the  representations and warranties of the Investor
contained  herein are true and  complete  as of the date hereof and will be true
and complete at the time of any disbursement from the Escrow Funds.

                  b.  The  Company  makes  the  following   representations  and
warranties to Escrow Agent and, the Investor:

                                       7
<PAGE>

                  i.  The  Company  is a  corporation  duly  organized,  validly
existing,  and in good standing under the laws of the State of Delaware, and has
full power and  authority to execute and deliver this  Agreement  and to perform
its obligations hereunder.

                  ii. This  Agreement  has been duly  approved by all  necessary
corporate action of the Company,  including any necessary  shareholder approval,
has been executed by duly  authorized  officers of the Company,  enforceable  in
accordance with its terms.

                  iii. The execution,  delivery,  and performance by the Company
of this  Escrow  Agreement  is in  accordance  with the  Equity  Line of  Credit
Agreement  and will not violate,  conflict  with,  or cause a default  under the
certificate  of  incorporation  or bylaws of the Company,  any applicable law or
regulation,  any  court  order or  administrative  ruling or decree to which the
Company  is a  party  or any of  its  property  is  subject,  or any  agreement,
contract, indenture, or other binding arrangement.

                  iv.  Yvon  Rancourt  has  been  duly  appointed  to act as the
representative  of the Company  hereunder  and has full power and  authority  to
execute,  deliver, and perform this Agreement,  to execute and deliver any Joint
Written Direction, to amend, modify or waive any provision of this Agreement and
to take all other actions as the Company's  Representative under this Agreement,
all without  further consent or direction from, or notice to, the Company or any
other party.

                  v. No party other than the  parties  hereto  shall  have,  any
lien,  claim or security  interest in the Escrow Funds or any part  thereof.  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 Escrow Funds or any part thereof.

                  vi. All of the  representations  and warranties of the Company
contained  herein are true and  complete  as of the date hereof and will be true
and complete at the time of any disbursement from the Escrow Funds.

         14.  CONSENT TO  JURISDICTION  AND  VENUE.  In the event that any party
hereto commences a lawsuit or other proceeding  relating to or arising from this
Agreement,  the parties  hereto agree that the United States  District Court for
the District of New Jersey shall have the sole and exclusive  jurisdiction  over
any  such   proceeding.   If  all  such  courts  lack  federal   subject  matter
jurisdiction,  the parties agree that the Superior Court Division of New Jersey,
Chancery  Division of Hudson County shall have sole and exclusive  jurisdiction.
Any of these  courts  shall be proper  venue for any such  lawsuit  or  judicial
proceeding and the parties hereto waive any objection to such venue. The parties
hereto consent to and agree to submit to the  jurisdiction  of any of the courts
specified  herein  and agree to accept the  service of process to vest  personal
jurisdiction over them in any of these courts.

         15. NOTICE. All notices and other communications  hereunder shall be in
writing and shall be deemed to have been validly served, given or delivered five
(5) days after deposit in the United States mail, by certified  mail with return
receipt requested and postage prepaid,  when delivered  personally,  one (1) day
delivery to any overnight courier, or when transmitted by facsimile transmission
and addressed to the party to be notified as follows:

                                       8
<PAGE>

If to Investor, to:                Cornell Capital Partners, LP
                                   101 Hudson Street - Suite 3606
                                   Jersey City, New Jersey 07302
                                   Attention:        Mark Angelo
                                   Facsimile:        (201) 985-8266

If to Escrow Agent, to:            Butler Gonzalez LLP
                                   1000 Stuyvesant Avenue - Suite 6
                                   Union, New Jersey 07083
                                   Attention:        David Gonzalez, Esq.
                                   Facsimile:        (908) 810-0973

If to Company, to:                 NewTech Brake Corp.
                                   779 Industrial Boulevard
                                   Blainville, Quebec Canada J7C 3V3
                                   Attention:        Yvon Rancourt
                                   Chairman
                                   Facsimile:        (450) 434-5071

With a copy to:                    Kirkpatrick & Lockhart LLP
                                   201 South Biscayne Boulevard - Suite 2000
                                   Miami, FL 33131-2399
                                   Attention:        Clayton E. Parker, Esq.
                                   Facsimile:        (305) 358-7095

         Or to such other address as each party may designate for itself by like
notice.

         16.  AMENDMENTS  OR WAIVER.  This  Agreement  may be  changed,  waived,
discharged or terminated  only by a writing  signed by the parties of the Escrow
Agent.  No delay or omission by any party in  exercising  any right with respect
hereto  shall  operate  as  waiver.  A waiver on any one  occasion  shall not be
construed as a bar to, or waiver of, any right or remedy on any future occasion.

         17.  SEVERABILITY.  To the extent any  provision  of this  Agreement is
prohibited  by  or  invalid  under  applicable  law,  such  provision  shall  be
ineffective  to  the  extent  of  such  prohibition,   or  invalidity,   without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

         18. GOVERNING LAW. This Agreement shall be construed and interpreted in
accordance with the internal laws of the State of Delaware without giving effect
to the conflict of laws principles thereof.

         19. ENTIRE AGREEMENT.  This Agreement  constitutes the entire Agreement
between the parties relating to the holding, investment, and disbursement of the
Escrow Funds and sets forth in their entirety the  obligations and duties of the
Escrow Agent with respect to the Escrow Funds.

                                       9
<PAGE>

         20. BINDING EFFECT. All of the terms of this Agreement, as amended from
time to time,  shall be binding upon, inure to the benefit of and be enforceable
by the respective heirs, successors and assigns of the Investor, the Company, or
the Escrow Agent.

         21.  EXECUTION OF  COUNTERPARTS.  This  Agreement and any Joint Written
Direction  may be  executed  in  counter  parts,  which when so  executed  shall
constitute one and same agreement or direction.

         22.  TERMINATION.  Upon the  first to occur of the  termination  of the
Equity Line of Credit Agreement dated the date hereof or the disbursement of all
amounts in the Escrow  Funds and Common  Stock into court  pursuant to Section 7
hereof,  this Agreement  shall  terminate and Escrow Agent shall have no further
obligation or liability  whatsoever with respect to this Agreement or the Escrow
Funds or Common Stock.



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<PAGE>




         IN WITNESS  WHEREOF the parties have hereunto set their hands and seals
the day and year above set forth.

                                   NEWTECH BRAKE CORP.

                                   By:
                                     ----------------------------------
                                   Name:  Yvon Rancourt
                                   Title: Chairman


                                   CORNELL CAPITAL PARTNERS, LP

                                   By:    Yorkville Advisors, LLC
                                     ----------------------------------
                                   Its:   General Partner

                                   By:
                                     ----------------------------------
                                   Name:  Mark A. Angelo
                                   Title: Portfolio Manager


                                   BUTLER GONZALEZ LLP

                                   By:
                                     ----------------------------------
                                   Name:  David Gonzalez, Esq.
                                   Title: Partner


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