• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
ESCROWANDSECURITYAGREEMENT ThisEscrowandSec
UJ
ityAgn:<:mcnt
i.
enteredintoonJanuary15,2008
by
IlIld
amongKathlocnJ.Wick.trom.
whose
add",
..
i.11333BluffRoad,T,ave
r",
City.MI
4%86
CSollcr"),PetA.Wic
ks"
o""w
l>osc
addressis
6nl
N.W.TorchLakeDrive,Kewadin,
/>.-
11
4964g(the
~Pu
" ,
h
a s
e
r '
l
,
andCorporaleTitleAgency,
LtC,
AMichiganlimitodliabililycompany.
of
440E.FromSt.,TraverseCity,Michigan
4%
84(the"£SorowAgent"). INTRODUCTORYSTATEMENTS A.OnDecember13,2007,Sellerand
P
~
r c
h a s e t
c x o c
~
t
c
d
aceIlainSlockPu.chase Agreement(the"PurchaseAlI'C"ment"l,providingforthesalebySeller
on<!
purchasebyP
UfC
ha,er
of
30,000
,
hare,
ofSeller·s'lock(the"S
to<
k'1inTIACOrporalion,aMichigan corporation(\he
~ C o r p o
r . t
i o n ' 1
,
B.
InconnectionwithPllrthascr'.poymentobbg,tion.un<krthe
Pu:rch
,seAgreement,Pu
r<
haser.lsoexecutodaPromi,soryNotei,thepri
TlC
ipal
,"
m
of
SixHundredSe,..,nty-Feu. Thousand($674,000.00)Doll."
(the
"N
ote").infavorofSellor. C.
P""
\IIln
tto
Ih
ePu
r<
h,,,,
Agreemenl.Pllrthascragr<ed
to
pl
'e<:
Seller'sStockinescrowuntilPmeh
",
er'sobligationsumlerthe
P\U
chaseAgreement,including,without limitation.payment
of
theNole,havebeenfulfilled, E.TheEscrowAgentiswillingtoholdtheStockine.crowonthelenusandcondilions sotforthinthisEscrowAgreement. AGREEMENTInconsideration
of
lheInlroductorySlateme
n!.S
.bo
ve.nd
the
promi
..
.
on<!
provi.ion.se(forthinthi'Agreemenl,lheadequaeyandsufficiency
of
whi
Ch
the
partiesackoowlcdge,andasa condition
to
PurchaserandSellerenteringinlothe
trans.o.cl
ionsthatarethe,ubjecl
of
lheTransactionDocuments,Seller,
PUr<ha
ser,andlheEscrowAgenl.gree: L".<rowandF
...
.
Who'
lhisEscrowAgreemenli.executed,Selle,shalldeliver Certi
fi
cateNo.003for30,000shares,
t'C
prt"
senlingtheSlock{the
"E'
crowSM
",,'1.
totheEscrowAgenl,who'hallhold
the
certificotesP=U.1JII
10
thetern"
of
thi'
EscrowAgreemen\.Thecertifica
l<S
,eprt
,en
tingIheE,crowSharesshallheendorsedinblank(ortra
..
f
..
ondshali
be
accompanied
by.
llotherdocumentsthat.inlheEscrowAgent'sopinio
n,.re
necessaryforan
eff,;C
livetran.fer
of
theEscrow
Share.
totheEscrowAgent.TheEscrowShares,allother documentsnecessary
fo'
IlIl
e
ff
ectivetra,,,re,
oflhe
Escrow
Share.
10theEscrowAgenl,together with
.1JI
yandalldividendsandolhe,d
i'
lrib
U1
i
on'
paidwithrespeet10theEscrowShare.Shall collectively
be
referred10asthe"Collale",L"Any
.nd
all
of
the
Escrow
Agc,t',
tran.fer
COS!.S.
fee.,andexpensesshall
he
raid
by
Pureha.ser,
 
2.Es
t.
blishme
nt
fi
rEs<r
Gl
YTheE.erowAsent'S
"'
'''
to
occept.n
dholdtheCo
lI
.te
,,
1
.nd
torele.setheColl.teralin.ccordancewilh
the
leon.
ofthisEscrowAgreement. 3.SalisfactinnofC""diti"
",
.
PllJeha"'"
andSeller
agre<:
th.t
EscrowAgent.hall
OOld
aIld
administer
the
Collal
...
1asfollows:3.1Di
.lr
ibuti••ofth.Coll.t«.
1.
IfPurch
...
randSeUerjoinl1yfurni
sh.
signedsel;llcmcnt'greement
10
theEscrowAgellt,theE
",
rowAgentwillagreetoabidebytho agreement
and
10
di'tribute
the
Collateral,oraportion
of
it,asthe
agTCem
entdirects.Similarly,if
the
EscrowAgentisd
irecte
d
1(>
makedeliverybyafinalarbitrationawardororderofa
eO
lJr1
of
competentjurisdiction
lhat
eithor(aJi.
not
subjccttoanappealor
Slay
or,
(b)
ifil
i,
.ubjeel
10
anappeal
Of
slay,thenanerthetimehasoxpiredforinstitutingan appealorstay,
Of
afle,theaward
o'
orderbecomesfi'lalfollowing
the
appealo.expiration
of
the
Slay
(a"finalorder''),the
Es<:row
Agentwill.greeto.bide
by
the
finalorderandd
i'
tribute
the
Cnllat..,..l,oraportionofit.
a.
the
fmalorderdirects.Onsuch delivery,thenomeeipient
party
shallhavo
no>
furtherright
to,
litle
to,
orinterest
of
anykindin
the
Cnll.tc
raL
3,2Rightsin£.suowShare'WhenNollefault.Whilethe
E.
erowSharc,
areon
depositwiththeEselOwAgentandasInngas['lIrchase,is
n01
indefaultof
the
Tron,aetionD
<>e
uments,I'urc
h=r
shallhaveallrights
of
ownershipwithregard
to
the
Es<:row
Sharesdepo'itedwithlheEscrowAge"t. 3.3RightsinEscrowShare,Whenl)
,r
aDIIExisl'.WhilelheE
.emw
Sha....are ondepo,itwithIheEscrowAgentandaslo"gasPurchaserisindefaull
(.lic
ranyaWliea!>lecureperindlapses),Purchasershallhavenofurtherright
tn
,
litlo
to,
orinterest
of
anyki
rod
in
the
""'row
Share.exceptasmayotherwi'e
be
providedunderArticl
e'
8
'nd
9
of
lheMichiganUniformCom,nercialCode,and
Es<:row
Agent
.ha
llreleasef,omescrowanddeliverIheEscrowShare,
In
Seller.Totheextenl
tIl
altheCollateral'.valuei.
Ie",
thanth.tortheobligationsof
the
Purchaser
"
ill
outstal>ding,Seller.hallhavetheright
10
seckanyava
il.b
lelegalremedy
In
rcooverthe
def
,eiency.3.4NoJudgnt<nt
to
SeF.,e
rd
..
dby
~
;
' c r
o w
AgeDt.
In
noevenl.hall
the
EscrowAgenlhedeemedorrequired10makeanyindependentjudgmentasto
wilCther
ornoladefaultexistsin
the
TransactionDocnments, 4.NegativeCovenan
t<.
Solongasany
of
Purchaser
's
obligalionsscifnrthinlhe TronsaetionD
<>e
umentsre
m.
in
un,.
ti,lied,thePurchaser,CorporationOrany'hareholdc'or direcloroftheCorporalion,hallnotdn,.pprovenrconsent
to
anyofthefollowing' 4
.1
M
e.
g
e,
DrCon,ulid
Oli
on,
Tne
Corpt>nl
tion'hallnotparticipatelna
ntCfger,
con
SOlidat
ion,
Or
nthertransactionwithanyo'he'entilyunleSSlheCorporationis consideredto
be
thosurvivor
a,
lhistermis
use<!
undertheMichigan
Bu'
inessCorporationAct.
 
4.2
Anli-di
hu
iou.
TIle
Corporalion
ohaI
l
no!
issue
anystock0.
r i ~ l '
«
oplion.lo
ocqoirc
its
'lOC
k,4.3
U l t l
i
' ~ t i O l l
oa
( )
i s
l r i
1 >
o
'
' '
~
'
TIle
Corpontion
,,
'ill
not
voI0n0arily
Of
io-oh
.otarily
....
1.
1ranS
f
..
,lease.
Of
othcIwiM:
dispose
of
any
.....
"
of\he
Corpoo'aoion
(nc:epl
illY<fllOfy
Of
equipment
sold
ill.
\he
ordinory_
of
il$
busi
.....
"
Of
alIenIpllO
orr
...
01
00Il1noCt10
dosowithoul\he
prior
..
Tillca_
ofSe
I.....
4.4
C l l ~
.
~
..
i.
Co
.....
""
.
·.
NlrM.
TIle
Corpontioo
will_
choni<
il$
-.
ideatily.OI...,.
orpn;wiMo
l
_.
01
oompositioll
in
anym........
URIas
\he
CorJ»ntioll
sho1I1oav<:
giYc:I
Sellet
01
led
Ihirty
()O)
dayt
prior
wrinal
__
IhaU
ho...,
Ilk
...
all
-=tion
(or
modo
"
''''-
__
10
lab:
sud!
actioa
0"1"'·061
11
.y
simoltanc<Jusly
wUh
sud>
chanse
if
;1
is
impossible
10
\Ik.
such
0Cli0a
in
-.h
......
)
neccsNrY
01
...
....
lbIy
requcJIed
by
SOI
....
1O
proIeCt
itsinlen:st
ill
!be
Sted:.
4.S.Fa
"'",
L
iab
ililieo.
The
Co<porooboiJ
will
IJllt
<=Ile.
ma..
_•.
Of
IUfferlO
nill.
anyliabdily
for
bot
,n
..
oe<l
"""'""
_
puI
'
a.......,:'1
~
in
OD)''-''
of
Ibr;
~
Noooi
obotandin&
the
r ~
\he
Corp>r:oboiJ
"",y
in<
ur
add
i"""'"
iDd<b<cdness
lip
10III
aggregate
ofT_
HundredFifty
n.o..s...d
($2SO.000.00)
D<>llon.
pn>vided
_h
i
r>de
btedne
..
i.
UO<d
10
mloee
Seller'.
peronnal
liability
fOl
oblil"
'io
...
of
!heCo.po"'ion
in
aIik.
om<>Ulll.
4.6,la.'os'muts,LoU"
GO
Of
ln'
"'
.and
CO
olio(
<n1
Liahility.
The
C
oo
po.l
l
i""
willnolpurchaseoro!herwi
...leq
uirel
Oy
i
n,eu
m
.n
li
DCO
lne
01
Inak.any
1,,"0
o'
.d
,1lDCC
1<>
.
01
booom.
~
guann
h",
. u " , l ~ ,
0'
pkdll.iu"
.d
il
l<>
""comeliablef
Ol'
~
o d .
r t a
k
i
n l l '
of.
o.
othe
...
0.incur
ooy
contingenll
il
bilili
••
,4,7LimilalionOnI,l.n,OnColl
.tora
!.Porch.,er",illnolc
..
a'••pormil.or ,uff
..
10
..
i
Sl.
andwilldefendlbeStock
Ig
"insl
""
dtakesucho
'h
••
ac1iO<l
..
i.
neee
...
'Y
to
removeanylien.morlll"
&<
.pledge
...
,is
nmcnl,
scc:
uri
'1
iO
l
....
1.cllorg
•.
or
.ncu
mbranceoftmykindandany.srccmenl
to
Ii
"'"
~
",
frlin
from
givinSany
of
lbef
Ol'C
loi
nllon
lb<:
S
lOC
k,
and
willdefend
!he
ri&hl,
'ille,
and
inlcrcst
of
Scllcrioand10
lhc
Slock
and
in
and
I<>
lit<:
prca:eeds
and
produculll
m:o
f
,pin
slthecI.i
m.
anddctnanda
ofany
penon
01
party
.
4.1M.ll
..
..Rela
lia
l,..lh.CO
'l',
..
lMIa
.
I'IJr<:"-r
..
ill
perf
ormand
comply
in
011
rcsJ'O<"'S
,,;th
iu
obliplions
and
duli
..
\nJer
lb<:
byIo......
artid
..
0(
intofpontioD,!beMicbiganBusi
.....
COIponboiJ
Act
or
any
ogr
.........
cuoccmillll
t10e
\>usi.....
and
affai
..
of
lbr:
Corpontiofl
Of
Olbe.........,
imposed
Oft
Pwcloacr
II
,
m-hoIcIer
of
lhc
Corpnn.tiorI.
(!he"Corp::nle
ObIiplinao").
WilboulSell
....
prior
"';\kn
-..r.
Purchaser
....
ll
IJllt
(i)
oraond.
modify.
Icnninll
..
or
........
11'I)'
such
CorpOfIIe
Obliplions.
(Ii)
foil
,.,
......
isoc
pnlfflplIy
mel
dilill"f'1ly."
and
tvay
ricbl
....
;1
....
y
have
""""'
lhc
Cofporou:
ObIiplinm.,
(u
i)
fai.I
In
deliver
In
Setler,
copy
0(
ach
<Icm>Dd,
~ .
Of
documenl
~
by
il
rdIIinc
in
my
way
to
Illy
IUCh
Corponte
ObIiptions.
(iY)
~
aay
..
1cDSior>
of!he
time
0(
1'")=_
or
OD)'
dislribWon
l1nm
Ccopncotioo,
cmnjl<Olllite.
comp::>uDd,
Of..ctle
1hc
some
for
loess
!bon
the
full
_rd<oK.
"tdly
Of
ponly.
Illy
p<1""'I'
liable
or
who
....
y
bocoa>c
I ~
f ~
the
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...