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Title: |
Escrow Agreement |
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Entities: |
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Date: |
2005 |
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Size: |
Preview shows 4KB of 17KB total |
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Price: |
$35 |
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ID: |
#1238407 |
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ESCROW AGREEMENT
THIS ESCROW AGREEMENT (this "Agreement") is dated as of May 9, 2005, by
and among Paid, Inc., a corporation organized under the laws of the State of
Delaware (the "Company"), Leslie Rotman ("Seller"), and Olde Monmouth Stock
Transfer Co., Inc., as escrow agent (the "Escrow Agent").
W I T N E S S E T H:
WHEREAS, the Company, formerly known as Sales Online Direct, Inc., and
Seller are parties to an Agreement and Plan of Merger ("Merger Agreement") dated
October 23, 2001, whereby Rotman Collectibles, Inc., a Massachusetts corporation
engaged in the movie poster business ("Target"), was merged with and into a
subsidiary of the Company. As consideration for such merger, Seller received a
6% Convertible Promissory Note equal to One Million Dollars ($1,000,000) (the
"Note"). The principal and interest due under the Note was convertible into
shares of common stock of the Company. Seller has converted the entire amount
due under the Note into shares of Common Stock of the Company ("Common Stock").
The Company does not owe any additional amount under the Note.
WHEREAS, pursuant to the Merger Agreement, Seller and the Company engaged
an appraiser to appraise the total retail value of certain movie posters (the
"Posters"), which were the primary asset of Target. The appraisal provided that
the total retail value of the Posters was $2,233,685.18 (the "Appraised Value").
WHEREAS, the Company anticipates that the posters will sell for an amount
that is less than the Appraised Value;
WHEREAS, Seller contends that the appraisal of the Posters was made
independently, based on knowledge at the time, and that the Posters sold for a
lower retail value because, in part, of timing of the sales and a general
economic decline.
WHEREAS, the parties entered into a Settlement Agreement and Mutual
Release ("Settlement Agreement and Mutual Release") to resolve all differences
related to the Merger Agreement;
WHEREAS, as part of the settlement terms, Seller agreed to either pay cash
consideration equal to Six Hundred Thousand Dollars ($600,000) ("Cash
Consideration"), or to grant to the Company certain option rights and, with
respect thereto, is required to deposit 2,000,000 shares of Common Stock of the
Company beneficially owned by Seller into escrow (the "Escrow Shares");
WHEREAS, the Escrow Agent is willing to act hereunder on the terms and
conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and obligations
set forth below, the parties hereto hereby agree as follows:
1
<PAGE>
I. ESCROW DEPOSIT
As of the date hereof, if Seller has not paid the Cash Consideration to
the Company, Seller shall promptly deposit the Escrow Shares with the Escrow
Agent, to be held in escrow with, and released by, the Escrow Agent, in
accordance with this Agreement.
II. MAINTENANCE OF ESCROW; RIGHTS WITH RESPECT TO ESCROW SHARES
A. The Escrow Agent shall hold the Escrow Shares in certificate form or
in a brokerage account, as the Escrow Agent deems appropriate to
fulfill its duties hereunder, in either case registered in the name
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