ESCROW AGREEMENT
This
Escrow Agreement made and entered into this 9th day
of April, 2010, by and between JBM Energy Company, LLC, a Delaware limited
liability company ("JBM"), Xxxxxxx X. Xxxx, Xx. ("Xxxx"), Teen Glow Makeup, Inc.
(name change to American Power Corp. in process), a Nevada corporation
("Buyer"), and Realty Title Company, Inc. a Montana corporation ("Escrow
Agent"),
WITNESSETH:
WHEREAS,
JBM and Pace have entered into agreements with Buyer whereby they are conveying
certain coal and other mineral rights in Xxxxxx Basin County, Montana to Buyer
and have executed Quit Claim Deeds to Buyer for said coal and other mineral
rights, and
WHEREAS,
Buyer, JBM and Pace have executed a Mortgage which secures the payments and
other obligations due from Buyer to JBM and Pace under said agreements,
and
WHEREAS,
under the terms of said agreements, the parties agreed that the Quit Claim Deeds
and the Mortgage would be placed in escrow and held in escrow until the
satisfaction of certain conditions, at which time they would be delivered to the
parties entitled thereto and recorded.
NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants and
conditions hereinafter set forth, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged. the parties hereto
agree as follows:
|
1.
Subject to the provisions and conditions herein, the following documents
are deposited in Escrow with Realty Title Company, of Lewistown, Montana,
hereinafter called Company. Realty Title Company is instructed to hold
said instruments and accept payments and stock for application as
hereinafter provided, and to deliver the described two Quit Claims Deeds
to the purchaser or his agent upon satisfaction of all conditions set
forth in paragraph 2 below, or, in the event of default, to deliver the
contents of the escrow to the seller or his
agent.
|
a.
|
Quit
Claim Deed dated April 9, 2010, from JBM to Buyer conveying coal rights in
Xxxxxx Basin County, Montana.
|
b.
|
Quit
Claim Deed dated April 9, 2010, from Pace to Buyer conveying other mineral
rights in Xxxxxx Basin County,
Montana.
|
c.
|
Mortgage
and Security Agreement dated April 9, 2010, which secures the payments and
other obligations due from Buyer to JBM and Pace under the following
agreements:
|
1)
|
Coal
Buy and Sell Agreement between Buyer and JBM dated as of February 4, 2010,
and the Promissory Note executed by Buyer dated April 9,
2010.
|
2)
|
Mineral
Buy and Sell Agreement between Buyer and Pace dated as of February 4,
2010, and the Promissory Note executed by Buyer dated April 9,
2010.
|
3)
|
Stock
Agreement between Buyer and Pace dated as of February 4,
2010.
|
4)
|
Consulting
Agreement between Buyer and Pace dated as of February 4,
2010.
|
The terms
and conditions of the Company’s agreement to hold the escrow documents are as
follows:
A.
|
The
Company shall be liable as a depository only and shall not be responsible
for the sufficiency or accuracy of any description of property, nor of the
form, execution or validity of Documents deposited
hereunder.
|
B.
|
The
Company shall not be responsible in any respect for the identity,
authority or rights of the persons depositing or purporting to deposit any
property hereunder. The Company may rely upon any paper, document or other
writing believed by it to be authentic in making any delivery of money or
escrow documents.
|
C.
|
The
Company will allow examination of the escrow documents by the parties at
any reasonable time during the Company's regular business hours. The
Company may, at its option, require written authorization from either
party before allowing the examination of the contents of this escrow by
anyone other than a party.
|
D.
|
The
Company reserves the right to change service fees from time to time in
accordance with its schedule of fees in effect at the time service is
performed. The parties acknowledge that the Company may so alter its
charges at any time in accordance with its scheduled charges, effective
upon written notice by the Company to the
parties.
|
E.
|
The
Company may employ counsel for the reasonable protection of the escrow
documents and of the Company, and if not at fault, shall have the right to
reimburse itself out of escrow documents and proceeds for costs, expenses,
counsel fees and cover such items, and in no event shall the Company be
required to release or deliver any of the escrow documents until the
Company has been paid in full.
|
|
2.
The following events and conditions must all occur and be fully satisfied
before the Escrow Agent is authorized to deliver the two (2) Quit Claims
Deeds to the Buyer and the Mortgage to JBM and Pace, and to record the two
Deeds and the Mortgage.
|
|
a.
The following cash funds will be bank wired by Buyer to the Escrow Agent
on or before the following dates for the benefit of either JBM or Pace as
indicated:
|
Amount
|
Date
|
Beneficiary
|
$200,000
|
July
9, 2010
|
JBM
|
$200,000
|
October
9, 2010
|
Pace
|
$200,000
|
January
9, 2011
|
JBM
|
$200,000
|
April
9, 2011
|
Pace
|
$100,000
|
90
days following delivery of Reserve
|
JBM
|
Study
and Mining Plan to Escrow Agent, but no later than 90 days
following
April 9, 2012.
|
||
$100,000
|
90
days following delivery of Reserve
|
Pace
|
Study
and Mining Plan to Escrow Agent, but no later than 90 days following April
9, 2012.
|
||
$200,000 | 180 days following delivery Pace of Reserve Study and Mining | |
Plan to Escrow Agent, but no later than 180 days following April 9, 2012. | ||
$5,500 |
On
the first day of each month Pace commencing on May 1,
2010
|
|
through April 1, 2011, but continuing each month thereafter | ||
if Pace gives notice that he has executed his option to extend the | ||
Consulting Agreement for 2 successive one year terms, said notice to be given | ||
60 days prior to the expiration of the initial 1 year term or of any extended | ||
term. |
b.
|
The
following shares of the common voting stock of Buyer shall be delivered to
the Escrow Agent for the benefit of Pace on or before the following
dates:
|
250,000
shares on October 9, 2010
250,000 shares on April 9, 2011
250.000
shares on October 9, 2011
c.
|
Not
later than April 9, 2012, Buyer shall deliver to Escrow Agent for the
benefit of JBM (1) a Reserve Study setting forth the quantity and
classification of proven and probable coal reserves and a valuation
thereof, and (2) a Mine Feasibility Study which includes a Mining Plan to
produce a minimum of fifty (50) million tons of
coal.
|
If the
Buyer fails to make timely any one of the above cash payments, or fails to make
timely delivery of the stock, or fails to make timely delivery of the Reserve
Study and the Mine Feasibility Study with the Mining Plan, at the option of JBM
or Pace and upon written request of JBM or Pace, the Escrow Agent shall deliver
the two Quit Claim Deeds and the Mortgage (without recording them), including
copies of all records of the Escrow, to JBM and Pace, at which time the Escrow
is terminated.
3.
|
Escrow
Agent will provide Buyer with bank wire instructions for the transfer of
cash funds from Buyer to Escrow Agent. JBM and Pace will provide Escrow
Agent with bank wire instructions for the transfer of cash funds from
Escrow Agent to JBM and Pace.
|
4.
|
INTEGRATIONS: SURVIVAL
OF WARRANTIES; AMENDMENT
|
Unless
otherwise agreed in writing, this Escrow Agreement represents the entire
understanding of the parties with respect to the subject matter referenced, and
supersedes all prior understandings and agreements heretofore made by and
between the parities: Neither this Escrow Agreement nor any provision hereof may
be amended, waived, modified or discharged except by an agreement in writing
signed by all parties.
5.
|
ATTONNEY'S
FEES
|
In the
event of any litigation to construe and/or enforce the terms of this Escrow
Agreement, the party prevailing in such action shall be entitled to recover its
reasonable attorney's fees and costs in addition to any other damages or relief
to which such party may be entitled.
6. FACSIMLE
SIGNATURES
Both
parties agree that facsimile signatures by any party will be treated as original
signatures for the purpose of this transaction.
7. NOTICES
Any and
all notices required under this Escrow Agreement shall be in writing and shall
be served upon the respective parties at the addresses shown below or to such
other address as the parties may designate by written notice to the
other.
JBM
JBM
Energy Company, LLC C/0 Xxxxxxx X. Xxxx, Xx.
0000
Xxxxx'x Xxxxxx Xxxx Xxxxxxx, XX 00000
XXXX
Xxxxxxx
X. Xxxx, Xx.
0000
Xxxxx'x Xxxxxx Xxxx Xxxxxxx, XX 00000
BUYER:
Xxxxxxxx
Xxxxxxxx
Teen Glow
Makeup, Inc. 00 Xxxxxx Xxxxxx Xxxxxx 0000 00xx Xxxxxx, Xxxxx 000 Xxxxxx, XX
00000
ESCROW
AGENT
|
Realty
Title Company, Inc.
|
Lewistown, MT
Any
notice to be given under this Escrow Agreement shall be sent by:
a.
|
Certified
mail, return receipt requested, in which case notice shall be deemed
delivered five (5) days after deposit, postage prepaid in the United
States Mail; or
|
b.
|
a
nationally recognized overnight courier, in which case notice shall be
deemed delivered three (3) business days after deposit with that
courier.
|
8.
|
EXECUTION IN
COUNTERPARS: TELEFACSIMILE
SIGNATURES
|
This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same
instrument; and the parties may execute copies sent by telefacsimile, and return
signed copies by telefacsimile. Copies signed and returned by telefacsimile
shall be deemed and considered executed counterparts, but a party executing a
copy and transmitting same by telefacsimile shall promptly mail or overnight to
the other parties copies bearing the transmitting party's original
signature.
9.
|
TIME IS OF THE
ESSENCE
|
Time is
of the essence in this Escrow Agreement.
10.
CONFIDENTIALITY
|
|
The
parties' hereto shall not disclose any terms or provisions of this Escrow
Agreement to
any other
persons except to professionals who require such information in the performance
of this Escrow Agreement, and both parties will treat all information disclosed
to it as confidential information and will not make further disclosure to third
parties without the consent of the disclosing party.
Executed
as of this 9th day of April, 2010.
BUYER:
Teen Glow
Makeup, Inc. (name change to American Power Corp. in process)
By: /s/ Xxxxxxxx
Xxxxxxxx
Xxxxxxxx
Xxxxxxxx
President
By:
/s/ Xxxxxxx X. Xxxx,
Xx.
Xxxxxxx
X. Xxxx, Xx.
Individually
ESCROW
AGENT
JBM
Energy Company, LLC Realty Title Company, Inc.
By:
/s/Xxxxxxx X. Xxxx,
Xx.
Xxxxxxx
X. Xxxx. Jr. Sole Manager
By:/s/Realty
Title Company, Inc.