Document:

Exhibit 10.2

PROCEEDS ESCROW AGREEMENT

 

This Proceeds Escrow Agreement (this “Agreement”) is made and entered into as of the ___ day of _______________ 2007, by and between New Castle Ventures, Inc., a Nevada corporation (the “Company”), and First Utah Bank, a Utah corporation (the “Escrow Agent”).

 

Premises

 

The Company proposes to offer for sale to the general public in certain states 1,000,000 shares of the Company’s common stock, par value $0.001, at an offering price of $0.40 per share, pursuant to a Registration Statement on Form SB-2 (the “Registration Statement”) on file with the Securities and Exchange Commission. The Shares are being offered on a “best efforts, 500,000 Share minimum - 1,000,000 Share maximum” basis. The Company and the Escrow Agent desire to provide for the escrow of the gross subscription payments for Shares in a segregated account until the amount, as set forth below, has been received.

 

	
             
 	
            Agreement
 

 

	
             
 	
            NOW, THEREFORE, the parties hereto agree as follows:
 

 

1.       Until termination of this Agreement, all funds collected by the Company from subscriptions for the purchase of Shares in the subject offering shall be delivered promptly to the Escrow Agent who shall promptly deposit such checks in a segregated bank account established for purposes of this Agreement. Checks shall be made payable to “First Utah Bank as Escrow Agent for New Castle Ventures, Inc.”  

 

2.       Concurrently with transmitting funds to the Escrow Agent, the Company shall also deliver to the Escrow Agent a schedule setting forth the name and address of each subscriber whose funds are included in such transmittal and the dollar amount paid. All funds so deposited shall remain the property of the subscriber and shall not be subject to any lien or charges by the Escrow Agent, or judgments or creditors’ claims against the Company until released to it in the manner hereinafter provided.

 

3.       If at any time prior to the expiration of the offering period, as specified in paragraph 4, $200,000 has been deposited in the account pursuant to this Agreement, the Escrow Agent shall confirm the receipt of such funds to the Company and, on written request of the Company, promptly transmit the amount deposited in escrow to the Company (such event is hereinafter referred to as the “Closing”).

 

4.       If, within five months after the effective date of the Registration Statement (unless the Escrow Agent receives written notice from the Company that such escrow period has been extended for one additional month) the Company has not deposited $200,000 in good funds with the Escrow Agent, the Escrow Agent shall so notify the Company and shall promptly transmit to those investors who subscribed for the purchase of Shares the amount of money each such investor so paid. The Escrow Agent shall furnish to the Company an accounting for the refund in full to all subscribers.

 

	
             
 	
            -1-
 

 

 

5.       If at any time prior to the termination of this escrow the Company is advised by the Securities and Exchange Commission that a stop order has been issued with respect to the Registration Statement, the Company shall notify the Escrow Agent of such event and the Escrow Agent shall return all funds to the respective subscribers.

 

6.       It is understood and agreed that the duties of the Escrow Agent are entirely ministerial, being limited to receiving monies from the Company and holding and disbursing such monies in accordance with this Agreement.

 

7.       The Escrow Agent acts hereunder as a depository only, and is not responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness, or validity of any instrument deposited with it, or with respect to the form or execution of the same, or the identity, authority, or rights of any person executing or depositing the same.

 

8.       The Escrow Agent shall not be required to take or be bound by notice of any default of any person or to take any action with respect to such default involving any expense or liability, unless notice in writing is given to an officer of the Escrow Agent of such default by the undersigned or any of them, and unless it is indemnified in a manner satisfactory to it against any expense or liability arising therefrom.

 

9.       The Escrow Agent shall not be liable for acting on any notice, request, waiver, consent, receipt, or other paper or document believed by the Escrow Agent to be genuine and to have been signed by the proper party or parties.

 

10.     The Escrow Agent shall not be liable for any error of judgment or for any act done or step taken or omitted by it in good faith, or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, except its own willful misconduct.

 

11.     The Escrow Agent shall not be answerable for the default or misconduct of any agent, attorney, or employee appointed by it if such agent, attorney, or employee shall have been selected with reasonable care.

 

12.     The Escrow Agent may consult with legal counsel in the event of any dispute or question as to the consideration of the foregoing instructions or the Escrow Agent’s duties hereunder, and the Escrow Agent shall incur no liability and shall be fully protected in acting in accordance with the opinion and instructions of such counsel.

 

13.     In the event of any disagreement between the undersigned or any of them, the person or persons named in the foregoing instructions, and/or any other person, resulting in adverse claims and/or demands being made in connection with or for any papers, money, or property involved herein or affected hereby, the Escrow Agent shall be entitled at its option to refuse to comply with any such claim, or demand so long as such disagreement shall continue and, in so refusing, the Escrow Agent shall not be or become liable to the undersigned or any of them or to any person named in the foregoing instructions for the failure or refusal to comply with such conflicting or adverse demands, and the Escrow Agent shall be entitled to continue to so refrain and refuse to so act until:

 

	
             
 	
            -2-
 

 

 

(a) the rights of adverse claimants have been finally adjudicated in a court assuming and having jurisdiction of the parties and the money, papers, and property involved herein or affected hereby; and/or

 

(b) all differences shall have been adjusted by agreement and the Escrow Agent shall have been notified thereof in writing signed by all of the persons interested.

 

14.     The fee of the Escrow Agent is $1,000 and $200 for each full month the escrow remains open (with the charge for any partial month being prorated). In addition, if the minimum of $200,000 is not received in escrow within the escrow period and the Escrow Agent is required to return funds to investors as provided in section 4, the Escrow Agent shall receive a fee of $10.00 per check for such service. The fee agreed on for services rendered hereunder is intended as full compensation for the Escrow Agent’s services as contemplated by this Agreement; however, in the event that the conditions of this Agreement are not fulfilled, the Escrow Agent renders any material service not contemplated by this Agreement, there is any assignment of interest in the subject matter of this Agreement, there is any material modification hereof, any material controversy
arises hereunder, or the Escrow Agent is made a party to or justifiably intervenes in any litigation pertaining to this Agreement or the subject matter hereof, the Escrow Agent shall be reasonably compensated for such extraordinary expenses, including reasonable attorneys’ fees, occasioned by any delay, controversy, litigation, or event and the same may be recoverable only from the Company.

 

15.       All communications required or permitted under this Agreement will be in writing and any communication or delivery under this Agreement will be deemed to have been fully made when received if actually delivered, transmitted by facsimile, or if mailed by registered or certified mail, postage prepaid, to the address for such party set forth below. Either party may change its address for purposes of this Section by giving notice of such change as provided by this section.

 

	
             
 	
            The Company:
 	
            New Castle Ventures, Inc.
 

	
             
 	
            1845 Baywood Drive
 

	
             
 	
            Salt Lake City, Utah 84117
 

 

	
             
 	
            Escrow Agent:
 	
            First Utah Bank
 

	
             
 	
            1991 South 3600 West
 

	
             
 	
            Salt Lake City, UT 84104
 

	
             
 	
            Attention: Marlene Johnson
 

 

16.       The terms, covenants and conditions herein contained shall be binding upon and inure to the benefit of the parties and their respective heirs, successors, transferees and assigns. Neither the Company nor the Escrow Agent shall assign this Agreement or any rights hereunder to anyone except with the prior written consent of the other party. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and may only be modified by a subsequent writing executed by both parties. If any term, covenant, condition or agreement of this Agreement or the application of it to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such 

 

	
             
 	
            -3-
 

 

term, covenant, condition or agreement to persons or circumstances, other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition or agreement of this Agreement shall be valid and shall be enforced to the extent permitted by law. This Agreement shall be construed and enforced in accordance with, and governed by, the laws of the state of Utah.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers, as of the date first above written.

 

	
             
 	
            New Castle Ventures, Inc.
 

 

 

	
             
 	
            By_____________________
 

	
             
 	
            R. Scott Beebe, Secretary
 

 

 

	
             
 	
            First Utah Bank
 

 

 

	
             
 	
            By_____________________
 

	
             
 	
            Duly Authorized Officer
 

 

 

 

	
             
 	
            -4-exhibit4-1.htm

    Exhibit
      4.1

     

    FIRST
      AMENDMENT TO

     

    RIGHTS
      AGREEMENT

     

    

     

    This
      FIRST AMENDMENT TO RIGHTS AGREEMENT (the “Amendment”) is entered into as of July
      ___, 2007 between Tier Technologies, Inc., a Delaware corporation (the
“Company”), and American Stock Transfer & Trust Company, a New York
      corporation, as Rights Agent (the “Rights Agent”).

     

    WITNESSETH

     

    WHEREAS,
      the Company and the Rights Agent entered into a Rights Agreement dated January
      10, 2006 (the “Original Agreement”);

     

    WHEREAS,
      the Company and the Rights Agent wish to amend the Original Agreement to modify
      the definition of “Acquiring Person” set forth therein and to make a
      corresponding modification to Section 3(a), in each case so as to increase
      the
      10% threshold described in those provisions to a 15% threshold;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements herein
      set
      forth, the parties hereby agree as follows:

     

                 
      1.           Section 1(a)
      of the Original Agreement shall be deleted in its entirety and the following
      Section 1(a) shall be substituted therefor:

     

    (a)           “Acquiring
      Person” shall mean any Person who or which, together with all Affiliates and
      Associates of such Person, shall be the Beneficial Owner of 15% or more of
      the
      shares of Common Stock then outstanding, but shall not include (i) the Company,
      (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the
      Company or of any Subsidiary of the Company, or (iv) any Person organized,
      appointed or established by the Company for or pursuant to the terms of any
      such
      plan.  Notwithstanding the foregoing, (x) no Person shall become an
“Acquiring Person” as the result of an acquisition of Common Stock by the
      Company which, by reducing the number of shares outstanding, increases the
      proportionate number of shares beneficially owned by such Person to 15% or
      more
      of the shares of Common Stock of the Company then outstanding; provided, however
      that if a Person shall become the Beneficial Owner of 15% or more of the shares
      of Common Stock of the Company then outstanding as the result of an acquisition
      of Common Stock by the Company and shall, following written notice from, or
      public disclosure by the Company of such share purchases by the Company become
      the Beneficial Owner of any additional Common Stock of the Company and shall
      then beneficially own 15% or more of the shares of Common Stock then
      outstanding, then such Person shall be deemed to be an “Acquiring Person” and
      (y) if the Board determines 

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    in
      good
      faith that a Person who would otherwise be an “Acquiring Person,” as defined
      pursuant to the foregoing provisions of this paragraph (a), has become such
      inadvertently, and such Person divests as promptly as practicable (as determined
      in good faith by the Board of Directors), but in any event within 15 Business
      Days, following receipt of written notice from the Company of such event, of
      Beneficial Ownership of a sufficient number of shares of Common Stock so that
      such Person would no longer be an “Acquiring Person,” as defined pursuant to the
      foregoing provisions of this paragraph (a), then such Person shall not be deemed
      to be an “Acquiring Person” for any purposes of this Agreement unless and until
      such Person shall again become an “Acquiring Person.”

     

    2.           Section
      3(a) of the Original Agreement shall be deleted in its entirety and the
      following Section 3(a) shall be substituted therefor:

     

    (a)           Until
      the earlier of (i) the close of business on the tenth Business Day (or such
      later date as may be determined by the Board) after the Stock Acquisition Date
      (or, if the tenth Business Day after the Stock Acquisition Date occurs before
      the Record Date, the close of business on the Record Date), or (ii) the
      close of business on the tenth Business Day (or such later date as may be
      determined by action of the Board) after the date that a tender or exchange
      offer by any Person (other than the Company, any Subsidiary of the Company,
      any
      employee benefit plan of the Company or of any Subsidiary of the Company, or
      any
      Person organized, appointed or established by the Company for or pursuant to
      the
      terms of any such plan) is first published or sent or given within the meaning
      of Rule 14d-2 of the General Rules and Regulations under the Exchange Act,
      if upon consummation thereof, such Person would be the Beneficial Owner of
      15%
      or more of the shares of Common Stock then outstanding (the earlier of (i)
      and
      (ii) being herein referred to as the “Distribution Date”), (x) the Rights will
      be evidenced by the certificates for the Common Stock registered in the names
      of
      the holders of the Common Stock (which certificates for Common Stock shall
      be
      deemed also to be certificates for Rights) and not by separate certificates,
      and
      (y) the Rights will be transferable only in connection with the transfer of
      the underlying shares of Common Stock (including a transfer to the
      Company).  As soon as practicable after the Distribution Date, the
      Rights Agent will send by first-class, insured, postage prepaid mail, to each
      record holder of the Common Stock as of the close of business on the
      Distribution Date, at the address of such holder shown on the records of the
      Company, one or more rights certificates, in substantially the form of
Exhibit B hereto (the “Rights Certificates”), evidencing one Right
      for each share of Common Stock so held, subject to adjustment as provided
      herein.  With respect to certificates for the Common Stock outstanding
      as of the close of business on the Record Date, until the Distribution Date,
      the
      Rights will be evidenced by such certificates for the Common Stock and the
      registered holders of the Common Stock shall also be the registered holders
      of
      the associated Rights.  In addition, in connection with the issuance
      or sale of shares of Common Stock following the Distribution Date and prior
      to
      the redemption or expiration of the Rights, the Company (i) shall, with respect
      to shares of Common Stock so issued or sold pursuant to the exercise of stock
      options or under any employee benefit plan or arrangement, or upon the exercise,
      conversion or exchange of securities granted or issued by the Company prior
      to
      the Distribution Date, and (ii) may, in any other case, if deemed necessary
      or
      appropriate by the Board, issue Rights Certificates representing the appropriate
      number of Rights in connection with such issuance or sale; provided, however,
      that (x) no such Rights

    
      
         

      

      
         

        
        

      

      
         

      

    

     

    Certificate
      shall be issued if, and to the extent that, the Company shall be advised by
      counsel that such issuance would create a significant risk of material adverse
      tax consequences to the Company or the Person to whom such Rights Certificate
      would be issued, and (y) no such Rights Certificate shall be issued if, and
      to
      the extent that, appropriate adjustment shall otherwise have been made in lieu
      of the issuance thereof.  In the event that an adjustment in the
      number of Rights per share of Common Stock has been made pursuant to Sections
      11(i) or 11(p) hereof, at the time of distribution of the Rights Certificates,
      the Company shall make the necessary and appropriate rounding adjustments (in
      accordance with Section 14(a) hereof) so that Rights Certificates
      representing only whole numbers of Rights are distributed and cash is paid
      in
      lieu of any fractional Rights.  As of and after the Distribution Date,
      the Rights will be evidenced solely by such Rights Certificates.

    
       

                   
        3.           This Amendment
        may be executed in any number of counterparts and each of such counterparts
        shall for all purposes be deemed to be an original, and all such counterparts
        shall together constitute but one and the same instrument.

    

     

    4.           This
      Amendment shall for all purposes be governed by and construed in accordance
      with
      the laws of Delaware applicable to contracts made and to be performed entirely
      within Delaware.

     

    IN
      WITNESS WHEREOF, the parties hereto
      have caused this First Amendment to Rights Agreement to be duly executed and
      their respective corporate seals to be hereunto affixed and attested, all as
      of
      the day and year first above written.

     

    
      	
              ATTEST:

            	
              TIER
                TECHNOLOGIES, INC.

            
	
              By:___________________________                                                                

              Name:  Deanne
                M. Tully

              Title:    Vice
                President, General Counsel and Secretary

            	
              By:_________________________                                                              

              Name:  Ronald
                L. Rossetti

              Title:    Chief
                Executive Officer and Chairman

                             of
                the Board of Directors

            
	
               

               

               

               

              ATTEST:

            	
               

               

               

              AMERICAN
                STOCK TRANSFER & TRUST

              COMPANY

            
	
              By:___________________________                                                                

              Name:

              Title:

            	
              By:__________________________                                                                

              Name:

              Title:

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