Document:

The Millennium Group Worldwide, Inc. Exhibit 10.1

EXHIBIT 10.1

ESCROW AGREEMENT (PUBLIC OFFERING)

AGREEMENT made this day of 28 day of May, 2007 by and among The Millennium Group Worldwide, Inc., whose address is: 2825 North 10th Street, St. Augustine, Florida 32084, (the "lssuer") and Miami Escrow Services, Inc., whose address is: 2520 SW 22nd Street, Suite 2-143, Coral Gables, Florida 33145, (the "Escrow Agent").

WITNESSETH:

WHEREAS, the lssuer has filed with the Securities and Exchange Commission (the "Commission") a registration statement (the "Registration Statement") covering a proposed public offering of its securities as described on the information Sheet;

WHEREAS the lssuer proposes to offer the Securities for sale to the public with respect to the Minimum Securities Amount and Minimum Dollar Amount and at the price per share or other unit all as set forth on the information Sheet;

WHEREAS the lssuer proposes to establish an .escrow account (the "Escrow Account"), to which subscription monies which are received by the Escrow Agent and the Escrow Agent is willing to establish the Escrow Account on the terms and subject to the conditions hereinafter set forth; and

WHEREAS, the Escrow Agent will establish a bank account (the "Bank Account") at an FDlC insured financial institution located in the State of Florida into which the subscription monies received by the Escrow Agent are to be deposited to the Escrow Account;

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto hereby agree as follows:

1.

 Information Sheet. Each capitalized term not otherwise defined in this Agreement shall have the meaning set forth for such term on the information sheet which is attached to this Agreement and is incorporated by reference herein and made a part hereof (the "information Sheet").

2.

 Establishment of the Bank Account.

2.1  The Escrow Agent shall establish a non-interest-bearing bank account at an FDlC insured financial institution located in the State of Florida selected by the Escrow Agent, and bearing the designation set forth on the Information Sheet (heretofore defined as the "Bank Account"). The purpose of the Bank Account is for (a) the deposit of all subscription monies (checks, cash or wire transfers) which are received by the Escrow Agent from prospective purchasers of the Securities, (b) the holding of amounts of 

subscription monies which are collected through the banking system, and (c) the disbursement of collected funds, all as described herein.

2.2  On or before the date of the initial deposit in the Bank Account pursuant to this Agreement, the lssuer shall notify the Escrow Agent in writing of the effective date of the Registration Statement (The "Effective Date"), and the Escrow Agent shall not be required to accept any amounts for credit to the Escrow Account or for deposit in the Bank Account prior to its receipt of such notification.

2.3  The Offering Period, which shall be deemed to commence on the Effective Date, shall consist of the number of calendar days or business days set forth on the information Sheet. The Offering Period shall be extended by an Extension Period only if the Escrow Agent shall have received written notice thereof at least five (5) business days prior to the expiration of the Offering Period. The Extension Period, which shall be deemed to commence the next calendar day following the expiration of the Offering Period, shall consist of the number of calendar days or business days set forth on the information Sheet. The last day of the Offering Period, or the last day of the Extension Period (if the Escrow Agent has received written notice thereof as hereinabove provided), is referred to herein as the "Termination Date". Except as provided in Section 4.3 hereof, after the Termination Date the lssuer shall not deposit, and the Escrow Agent shall not accept, any additional amounts representing payments by prospective purchasers.

3. Deposits to the Bank Account.

3.1  Upon the Escrow Agent's receipt of such monies, they shall be credited to the Escrow Account. All checks delivered to the Escrow Agent shall be made payable to "Miami Escrow Services, Inc., as Escrow Agent for the offering by the Issuer". Any check payable other than to the Escrow Agent as required hereby shall be returned to the prospective purchaser, or if the Escrow Agent has insufficient information to do so, then to the lssuer (together with any Subscription Information, as defined below or other documents delivered therewith) as soon as practicable following receipt of such check by the Escrow Agent, and such check shall be deemed not to have been delivered to the Escrow Agent pursuant to the terms of this Agreement.

3.2  Promptly after receiving subscription monies as described in Section 3.1, the Escrow Agent shall deposit the same into the Bank Account. Amounts of monies so deposited are hereinafter referred to as "Escrow Amounts". Simultaneously with each deposit to the Escrow Account or the Issuer, shall inform the Escrow Agent in writing of the name and address of the prospective purchaser, the amount of Securities subscribed for by such purchaser, and the aggregate dollar amount of such subscription deposit into the Bank Account checks which are not accompanied by the appropriate Subscription Information. Wire transfers representing payments by prospective purchasers shall not be deemed deposited in the Escrow Account until the Escrow Agent has received in writing the Subscription information required with respect to such payments.

3.4  The Escrow Agent shall not be required to accept in the Escrow Account any amounts representing payments by prospective purchasers, whether by check, or wire, except during the Escrow Agent's regular business hours.

3.5  Only those Escrow Amounts, which have been deposited in the Bank Account and which have cleared the banking system and have been collected by the Escrow Agent, are herein referred to as the "Fund".

3.6  If the proposed offering is terminated before the Termination Date, the Escrow Agent shall refund any portion of the Fund prior to disbursement of the Fund in accordance with Article 4 hereof upon instructions in writing signed by the Issuer.

4. Disbursement from the Bank Account.

4.1 Subject to Section 4.3 below, if by the close of regular banking hours on the Termination Date the Escrow Agent determines that the amount in the Fund is less than the Minimum Dollar Amount or the Minimum Securities Amount, as indicated by the Subscription information submitted to the Escrow Agent, then in either such case, the Escrow Agent shall promptly refund to each prospective purchaser the amount of payment received from such purchaser which is then held in the fund or which thereafter clears the banking system, without interest thereon or deduction therefrom, by drawing checks on the Bank Account for the amounts of such payments and transmitting them to the purchasers. In such event, the Escrow Agent shall promptly notify the lssuer of its distribution of the Fund.

4.2  Subject to Section 4.3 below, if at any time up to the close of regular banking hours on the Termination Date, the Escrow Agent determines that the amount in the Fund is at least equal to the Minimum Dollar Amount and represents the sale of not less than the Minimum Securities Amount, the Escrow Agent shall promptly notify the lssuer of such fact in writing. The Escrow Agent shall promptly disburse the Fund, by drawing checks on the Bank Account in accordance with instructions in writing signed by both the lssuer as to the disbursement of the Fund, promptly after it receives such instructions.

4.3  [This provision applies only if a Collection Period has been provided for by the appropriate indication on the information Sheet.] If the Escrow Agent has on hand at the close of business on the Termination Date any uncollected amounts which when added to the fund would raise the amount in the Fund to the Minimum Dollar Amount, and result in the Fund representing the sale of the Minimum Securities Amount, the Collection Period (consisting of the number of business days set forth on the information Sheet) shall be utilized to allow such uncollected amounts to clear the banking system.  During the Collection Period the Issuer shall not deposit, and the Escrow Agent shall not accept, any additional amounts; provided, however, that such amounts as were received by the lssuer by the close of business on the Termination Date may be deposited with the Escrow Agent by noon of the next business day following the Termination Date. If at the close of business on the last day of the Collection Period an amount sufficient to raise the amount in the fund to the Minimum Dollar Amount and which would result in the fund 

representing the sale of the Minimum Securities Amount shall not have cleared the banking system, the Escrow Agent shall promptly notify the lssuer in writing of such fact and shall promptly return all amounts then in the fund, and any amounts which thereafter clear the banking system, to the prospective purchasers as provided in Section 4.2 hereof.

4.4  Upon disbursement of the Fund pursuant to the terms of this Article 4, the Escrow Agent shall be relieved of all further obligations and released from all liability under this Agreement. It is expressly agreed and understood that in no event shall the aggregate amount of payments made by the Escrow Agent exceed the amount of the Fund.

5.  Rights, Duties and Responsibilities of Escrow Agent. It is understood and agreed that the duties of the Escrow Agent are purely ministerial in nature, and that:

5.1  the Escrow Agent shall notify the lssuer of the Escrow Amounts which have been

deposited in the Bank Account and of the amounts, constituting the Fund, which have cleared the banking system and have been collected by the Escrow Agent.

5.2  The Escrow Agent shall not be required to accept from the lssuer any Subscription information pertaining to prospective purchasers unless such Subscription information is accompanied by checks or wire transfers meeting the requirements of Section 3.1, nor shall the Escrow Agent be required to keep records of any information with respect to payments deposited by the lssuer except as to the amount of such payments; however, the Escrow Agent shall notify the lssuer within a reasonable time of any discrepancy between the amount set forth in any Subscription information and the amount delivered to the Escrow Agent therewith. Such amount need not be accepted for deposit in the Escrow Account until such discrepancy has been resolved.

5.3  The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder. The Escrow Agent, within a reasonable time, shall return to the Subscriber any check received which is dishonored, together with the Subscription information, if any, which accompanied such check.

5.5  The Escrow Agent shall be entitled to rely upon the accuracy, act in reliance upon the contents, and assume the genuineness of any notice, instruction, certificate, signature, instrument or other document which is given to the Escrow Agent pursuant to this Agreement without the necessity of the Escrow Agent verifying the truth or accuracy thereof. The Escrow Agent shall not be obligated to make any inquiry as to the authority, capacity, existence or identity of any person purporting to give any such notice or instructions or to execute any such certificate, instrument or other document.

5.6  If the Escrow Agent is uncertain as to its duties or rights hereunder or shall receive instructions with respect to the Bank Account, the Escrow Amounts of the Fund which, in its sole determination, are in conflict either with other instructions received by 

it or with any provision of this Agreement, it shall be entitled to hold the Escrow Amounts, the fund, or a portion thereof, in the Bank Account pending the resolution of such uncertainty to the Escrow Agent's sole satisfaction, by final judgment of a court or courts of competent jurisdiction or otherwise; or the Escrow Agent, at its sole option, may deposit the fund (and any other Escrow Amounts that thereafter become part of the fund) with the Clerk of a court of competent jurisdiction in a proceeding to which all parties in interest are joined.  Upon the deposit by the Escrow Agent of the Fund with the Clerk of any court, the Escrow Agent shall be relieved of all further obligations and released from all liability hereunder.

5.7  The Escrow Agent shall not be liable for any action taken or omitted hereunder, or for the misconduct of any employee, agent or attorney appointed by it, except in the case of willful misconduct or gross negligence. The Escrow Agent shall be entitled to consult with counsel of its own choosing and shall not be liable for any action taken, suffered or omitted by it in accordance with the advice of such counsel.

5.8  The Escrow Agent shall have no responsibility at any time to ascertain whether or not any security interest exists in the Escrow Amounts, the fund or any part thereof or to file any financing statement under the Uniform Commercial Code with respect to the fund or any part thereof.

6.      Amendment; Resignation. This Agreement may be altered or amended only with the written consent of the lssuer and the Escrow Agent. The Escrow Agent may resign for any reason upon three (3) business days' written notice to the Issuer. Should the Escrow Agent resign as herein provided, it shall not be required to accept any deposit, make any disbursement or otherwise dispose of the Escrow Amounts or the Fund, but its only duty shall be to hold the Escrow Amounts until they clear the banking system and the Fund for a period of not more than five (5) business days following the effective date of such resignation, at which time (a) if a successor escrow agent shall have been appointed and written notice thereof (including the name and address of such successor escrow agent) shall have been given to the resigning Escrow Agent by the lssuer and such successor Escrow Agent, then the resigning Escrow Agent shall pay over to the successor escrow agent the Fund, less any portion thereof previously paid out in accordance with this Agreement; or (b) if the resigning Escrow Agent shall not have received written notice signed by the lssuer and a successor escrow agent, then the resigning Escrow Agent shall promptly refund the amount in the Fund to each prospective purchaser, without interest thereon or deduction therefrom, and the resigning Escrow Agent shall promptly notify the lssuer in writing of its liquidation and distribution of the fund; whereupon, in either case, the Escrow Agent shall be relived of all further obligations and released from all liability under this Agreement. Without limiting the provisions of Section 8 hereof, the resigning Escrow Agent shall be entitled to be reimbursed by the lssuer for any expenses incurred in connection with its resignation, transfer of the Fund to a successor escrow agent or distribution of the fund pursuant to this Section 6.

7.      Representations and Warranties. The Issuer hereby jointly and severally represent and warrant to the Escrow Agent that:

7.1 No party other than the parties hereto and the prospective purchasers have, or shall have, any line, claim or security interest in the Escrow Amounts or the fund or any part thereof.

7.2 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 Amounts or the fund or any part thereof.

7.3 The Subscription information submitted with each deposit shall, at the time of submission and at the time of the disbursement of the Fund, be deemed a representation and warranty that such deposit represents a bona fide payment by the purchaser described therein for the amount of Securities set forth in such Subscription Information.

7.4 All of the information contained in the information Sheet is, as of the date hereof, and will be, at the time of any disbursement of the Fund, true and correct.

8.

Fees and Expenses. The Escrow Agent shall be entitled to the Escrow Agent Fees set forth on the information Sheet, payable as and when stated therein. In addition, the lssuer agrees to reimburse the Escrow Agent for any reasonable expenses incurred in connection with this Agreement, including, but not limited to, reasonable counsel fees. Upon receipt of the Minimum Dollar Amount, the Escrow Agent shall have a lien upon the Fund to the extent of its fees for services as Escrow Agent.

9. 

Indemnification and Contribution.

9.1 The lssuer referred to as the "lndemnitor” agrees to indemnify the Escrow Agent and its officers, directors, employees, agents and shareholders (collectively referred to as the "lndemnitees") against, and hold them harmless of and from, any and all loss, liability, cost, damage and expense, including without limitation, reasonable counsel fees, which the lndemnitees may suffer or incur by reason of any action, claim or proceeding brought against the lndemnitees arising out of or relating in any way to this Agreement or any transaction to which this Agreement relates, unless such action, claim or proceeding is the result of the willful misconduct or gross negligence of the indemnitees.

9.2 If the indemnification provided for in Section 9.1 is applicable, but for reason is held to be unavailable, the lndemnitor shall contribute such amounts as are just and equitable to pay, or to reimburse the Indemnities for, the aggregate of any and all losses, liabilities, costs, damages and expenses, including counsel fees, actually incurred by the lndemnitees as a result of or in connection with, and any amount paid in settlement of, any action, claim or proceeding arising out of or relating in any way to any actions or omissions of the Indemnitor.

9.3 The provisions of this Article 9 shall survive any termination of this Agreement, whether by disbursement of the Fund, resignation of the Escrow Agent or otherwise.

10.    Governing Law and Assignment. This Agreement shall be construed in accordance with and governed by the laws of the State of Florida and shall be binding upon the parties hereto and their respective successors and assigns; provided, however, that any assignment or transfer by any party of its rights under this Agreement or with respect to the Escrow Amounts or the Fund shall be void as against the Escrow Agent unless (a) written notice thereof shall be given to the Escrow Agent; and (b) the Escrow Agent shall have consented in writing to such assignment or transfer.

     11.   Notices. All notices required to be given in connection with this Agreement shall be sent

by registered or certified mail, return receipt requested, or by hand delivery with receipt acknowledged, or by the Express Mail service offered by the United States Post Office, and addressed, if to the Issuer at their respective address set forth on the Information Sheet, and if to the Escrow Agent, at its address set forth above.

12.

   Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall be determined to be invalid or unenforceable, the remaining provisions of this Agreement or the application of such provision to persons of circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law.

13.    Execution in Several Counterparts. This Agreement may not be executed in several

counterparts or by separate instruments, all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

14.      Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings (written or oral) of the parties in connection therewith.

IN WITNESS THEREOF, the undersigned have executed this Agreement as of the day and year first above written.

Signed, sealed and delivered

ISSUER:

in the presence of:

THE MILLENNIUM GROUP 

 WORLDWIDE, INC

_____________________________

By:_____________________________

Print Name:____________________

Print 

Name:______________________

Title:____________________________

_____________________________

Print Name:_____________________

(ESCROW AGENT3 SIGNATURE ON THE FOLLOWING PAGE)

ESCROW AGENT:

ESCROW AGREEMENT INFORMATION SHEET

1.

The lssuer

Name: Millennium Group Worldwide, Inc.

Address: 2825 North 10th street, St. Augustine, Florida 32084

State of Incorporation of Organization: Florida

2.

The Securities

Description of the securities to be offered (e.g., shares of or warrants for common stock, debentures, units

Consisting of 6,250,000 common share and 0 warrants, etc.)

Par .001 value, Offering $12.00 price per common share

3. 

Minimum Amounts Required for Disbursement of the Escrow Account

Aggregate dollar amount which must be collected before the Escrow Account may be disbursed to the lssuer

("Minimum Dollar Amount") 

$3,000,000.00

Total amount of securities which must be subscribed for before the Escrow Account may be disbursed to the Issuer ("Minimum Securities Amount") $3,000,000.00 or 250,000 common shares.

4.

Plan of Distribution of the Securities

Offering Period:  one calendar month days

Extension Period, if any; eight calendar months

Collection Period, if any four (4) business days

5. 

Title of Escrow Account: 

Miami Escrow Services, Inc.

Escrow Agent for the offering by: Millennium Group Worldwide, Inc.

6. Professional Accounting Fees

$10,000.00 based on approximately 500 subscribers plus out of pocket

costs subject to adjustment if more than 500 subscribers. Out of pocket costs

incurred by the Escrow Agent including postage and stationery.Millennium Group Worldwide, Inc.  Exhibit 10.2

EXHIBIT 10.2

JOINT VENTURE

AGREEMENT

THIS JOINT VENTURE AGREEMENT is made as of November 16th, 2007, by and between the MILLENNIUM GROUP WORLDWIDE, INC, a Florida corporation located at 2825 North 10th Street, St. Augustine, Florida 32084 (the “MGW”), and FRANKLIN AUTO MALL, INC. d/b/a Champion Chevrolet, Buick, Potomac, GMC. located at 1201 Armory Drive, Franklin, Virginia 23851 (“Franklin Auto”), (individually or collectively referred to hereinafter as “Partner” or “Partners” respectively).

           RECITALS:

WHEREAS, MGW is in the business of business development, real estate development and finance and Franklin Auto has substantial business experience in development and management of automotive dealerships,

WHEREAS, the MGW and Franklin Auto hereby agree to form a joint venture with respect to the acquisition, ownership and development of automotive dealerships throughout the United States and internationally in accordance with the conditions and terms stated below,

WHEREAS, the Partners hereby agree that the first automotive dealership to be acquired by the joint venture will be Champion Cheverolet, Buick, Pontiac, and GMC Truck (“First Dealership”); 

WHEREAS, the Partners have agreed that their respective performances required under this Agreement, a majority of the funding required to fund the joint venture and the acquisition of the First Dealership shall be contingent on the completion of an Initial Public Offering (“IPO”) placed by MGW (Form S-1, filed August 18, 2007 for $75,000,000.00); and

WHEREAS, with respect to the above stated funding for the acquisition of the First Dealership and the IPO funding contingency, the Partners further agree to the following:

a.

That all times during the IPO approval process and funding the terms of this Agreement shall remain enforceable between the Partners; and

b.

The Partners shall not be obligated to perform any of their respective duties and responsibilities required under the terms of this Agreement unless a minimum of $10,000,000 is raised in the IPO.    

NOW, THEREFORE, it is mutually agreed by and between the parties hereto as follows:

1.

PURPOSE: the MGW and Franklin Auto hereby enter into a joint venture (the “Venture”) for the purpose of acquiring, developing and operating the First Dealership, together with all rights therein and thereto.

2.

TERM: The term of the Venture shall commence as of the effective date of this 

Agreement and, unless sooner terminated in accordance with the provisions of Clause 14 below, shall continue for the aggregate term of any and all agreements relating to the First Dealership (the “Term”).

3.

FORMATION AND NAME OF LIMITED LIABILITY CORPORATION: Prior to or upon execution of this Agreement, the Partners shall form a limited liability corporation (“LLC”) as the legal corporate entity that will own, control, operate and manage all rights in the First Dealership and conduct the business of the Venture. The name of the Venture shall be the “Millennium Auto Group, LLC”. The Partners shall enter into an LLC operating agreement pursuant to which they would be granted certain rights as described herein and will work together to develop, operate and finance the First Dealership.

4.

TITLE: Any and all property and assets of the Venture as well as all rights, including without limitation, all copyrights, trade names and trademarks, in and to the First Dealership and all other business related to the First Dealership, and all ancillary rights, shall be owned by and title held in the name of the Venture. Each Partner agrees to execute any assignment of rights that is required to implement this provision.  

5.

PRINCIPAL OFFICE: The location of the principal office of the Venture shall

be at 1201 Armory Drive, Franklin, Virginia, 23851or at such other place or places as the Partners shall from time to time determine.

6.

NAME AND ADDRESS OF EACH PARTNER: 

a.

Millennium Group Worldwide, Inc.

Julius Jackson, Chairman

2825 North 10th Street,

St. Augustine, Florida 32084

b.

Franklin Auto Mall, Inc.

James J. Hayden, Jr., CEO

1201 Armory Drive

Franklin, Virginia 23851

7.

CONTRACTS AND AGREEMENTS: All contracts or agreements to be entered into by, on behalf of, or for the benefit of the Venture must be signed by the Partners hereto, it being understood that no Partner shall have the right to bind the Venture with respect to the First Dealership without the express written consent of the other Partner. It is understood that if any contract or agreement is entered into by a Partner without the express written consent of the other Partner, the Partner purporting to enter into such unauthorized contract or agreement on behalf of the Venture will indemnify and hold harmless the non-contracting Partner from all claims, liabilities, damages and costs (including attorneys’ fees and court costs) arising out of or pertaining to such unauthorized contract or agreement.

8.

CAPITAL CONTRIBUTIONS, SERVICES PROVIDED AND ADDITIONAL CONTRIBUTIONS:  (Subject to the IPO funding contingency stated above) The Partners agree to collectively, use best efforts, to secure financing for the development and operations of the First Dealership and to provide the following specific services to the Venture:  

a.

It is understood that MGW will be required to make an initial capital contribution in the amount of $4,000,000.00 to the Venture and for its capital contribution MGW shall own Eighty point One Percent (80.1%) of the Venture. 

b.

It is understood that the Franklin Auto will be required to make a cash contribution of $1,800,000.00 to the Venture. It is further understood that Franklin Auto’s contribution shall also consist of providing professional services and experience as an automotive dealership company to the Venture. Franklin Auto shall (1) develop the overall concept and activities involved in the First Dealership, (2) provide administrative services in the management and operations of the First Dealership and (3) secure the services of other professionals and solicit individuals who will participate in the First Dealership. For its contributions to the Venture, Franklin Auto shall own Nineteen point Nine Percent (19.9%) of the Venture. Franklin Auto shall also assign and transfer to the Venture of all its right, title and interest in the First Dealership.

c.

The Partners shall not be obligated to make any additional contributions to the capital of the Venture. If a need for additional capital arises, each Partner may contribute whatever portion of the total sum required that each elects to contribute, in its sole discretion or at such times and in such amounts as they mutually agree.

9.

ALLOCATION OF PROFITS AND LOSSES; TAX CREDITS AND 

DEDUCTIONS:

a.

The Partners agree that for the Term of this Agreement, the net profits or net losses of the Venture shall be allocated, credited or charged as the case may be, to the Partners in the following shares:

(1)

Eighty point one percent (80.1%) to MGW.

(2)

Nineteen point one percent (19.1%) to the Franklin Auto.

The Partners further agree that the above stated allocation of net profits or net losses may be re-allocated at any time during the Term of this Agreement by mutual consent of the Partners. The terms “net profits” and “net losses” as used herein shall be defined as gross receipts received by the Venture from any and all sources in connection with the First Dealership and all uses thereof and ancillary rights thereto, less the aggregate of all costs, charges, fees and expenses of the Venture including, without limitation, third party gross or net profit participations. For purposes of computing net profits and net losses only the costs and expenses approved by both Partners and incurred by either Partner directly on behalf of the First Dealership or the Venture shall be a charge against and shall reduce the gross receipts of the Venture in calculating net profits or net losses of the Venture.

b.

Any and all tax credits and/or deductions to which the Venture shall

be entitled shall be allocated equally between the Partners in their respective shares as stated above.

     10.  BOOKS, RECORDS AND BANK ACCOUNTS:

(a)

At all times during the term hereof, the Venture shall keep or cause to be

kept, at the principal place of business of the Venture or at such other place as the Venture may determine, books and accounting records for the business and operations of the Venture. Such books shall be open to inspection by the Partners, or their authorized representatives, during reasonable working hours upon Fifteen (15) days advance written notice. The accounting for Venture purposes, including the determination of “net profits” and “net losses” shall be in accordance with generally accepted accounting principles consistently applied. The venture shall engage the services of an accountant who shall be selected with the mutual approval of both parties.

(b)

There shall be maintained for each Partner a capital account and an

income account. Each Partner’s distributive share of profits and losses, and monthly and end-of –the-year withdrawals not previously posted shall be 

credited or debited to the respective Partner’s income account as of the close of the calendar year. Thereafter, any debit or credit balance remaining in the income account of a Partner shall be debited, or credited, as the case may be, to their respective capital account.

(c)

The Venture shall be on a calendar year basis for accounting purposes (the

“tax year”). As soon after the close of each tax year as is reasonably practical, a full and accurate accounting shall be made of the affairs of the Venture as of the close of each tax year. On such accounting being made, the net profit or net loss sustained by the Venture during such tax year shall be ascertained and credited or charged, as the case may be, in the books of account of the Venture in the proportions hereinabove specified.

(d)

From time to time, but no less than annually, the Venture shall make

distributions from the capital of the Venture which shall be in excess of the reasonable needs of the Venture for working capital and reserves as mutually determined by the Partners in accordance with Clause 15(a), provided, however, that so long as any Partner has any indebtedness or other outstanding obligations to the Venture, any distribution that would be otherwise be made shall first be applied toward any such indebtedness or other obligation.

(e) All funds of the Venture shall be deposited in an account or accounts in the name of the Venture at such bank or banks as may from time to time be selected by the Venture. All withdrawals from any such account or accounts shall be made by check or other written instrument and shall require the signature of a representative of the MGW and the signature of a representative of Franklin Auto.

11.

 MANAGEMENT AND RESPONSIBILITIES OF THE PARTIES: The 

Partners shall have equal power, authority and control over all business, financial and legal matters in connection with the Venture and the development, management, and exploitation of the First Dealership, and all subsidiary and ancillary rights thereto and all exploitation thereof including, without limitation, decisions regarding the management, budget, location of the Venture and the consideration for any rights granted or services rendered hereunder by Partners and others, and all decisions regarding the foregoing shall be made only by unanimous agreement of the Partners.

12.

 WARRANTIES AND INDEMIFICATIONS:

a.

Each Partner hereby warrants and represents to the other that he or it:

1.

Has the right and capacity to enter into this Agreement;

2.

Shall not encumber or sell any property, assets or intangible rights of the Venture without the written consent of the other Partner;

3.

Shall not assign, mortgage, hypothecate or encumber his or its interest in the Venture without the written consent of the other Partner;

4.

Shall not loan any funds or extend the credit of the Venture to any person or entity without the written consent of the other Partner;

5.

Shall not incur any cost, expense, liability or obligation in the name or on the credit of the Venture without the written consent of the other Partner;

6.

Shall not draw any checks on the Venture without the signature of both Partners thereon.

b.

Each Partner hereby indemnifies and holds harmless the other Partner

from and against any and all claims, liabilities, damages and costs (including but not limited to reasonable attorneys’ fees and court costs) arising from any breach by such Partner of any representation, warranty, or agreement made by such Partner hereunder.

13.

 EXCLUSIVITY: None of the Partners shall be exclusive to the Venture and each Partner may develop other businesses and engage in other activities that are separate and apart from the Venture and the other Partner. However, it is agreed by the Partners that each Partner shall devote as much time as shall be reasonably necessary to fulfill his or its duties and obligations in connection with the Venture and the First Dealership.

14.

 DISSOLUTION AND TERMINATION OF THE VENTURE:

a.

The Venture shall be dissolved and terminated and its business wound up upon the first to occur of the following:

1.

The expiration of the term referred to in Clause 2, above;

2.

Mutual agreement of the Partners at any time during the Term of this Agreement ;

3.

Operation of law;

4.

Material breach of this Agreement by any Partner, which breach is not cured within fifteen (15) days after written notice thereof from the non-defaulting Partner; provided, however, it is understood that only the non-defaulting Partner shall have the right to terminate the Venture pursuant to this Clause 14(a) (4). Such termination shall not release the defaulting Partner from any obligations or liabilities to the other Partner, whether pursuant to the provisions of this Agreement or at law or in equity.

b.

Upon termination of the Venture, the business of the Venture shall be wound up and assets and properties of the Venture shall be liquidated. Upon the happening of any one of the events mentioned in Clause 14(a) hereof, the Venture shall engage in no further business, other than that necessary to protect the assets of the Venture, wind-up its business and distribute its assets as provided herein.

c.

In the event of a dissolution or termination of the Venture, the Partners hereby agree that all contracts, trademarks and any underlying property rights in the First Dealership, shall be equally owned fifty percent (50%) by each Partner. 

    15.  DISTRIBUTIONS:

d.

Distributions Other than Upon Liquidation. Distributions of available cash shall be made at such time and in such amounts as in the discretion of the Partners, the business, the affairs and the financial circumstances of the Venture permit.

e.

Distributions of Assets on Dissolution and Liquidation. Upon any dissolution and liquidation of the Venture, the assets of the Venture shall be liquidated in an orderly manner, with a view toward maximizing the proceeds from such liquidation, and the proceeds thereof shall be distributed in the following order of priority:

1.

The expenses of liquidation and the debts of the Venture,

other than debts owing to the Partners, shall be paid;

2.

Debts owing to Partners, if any, shall be paid;

3.

Distribution shall be made to Partners of amounts equal to their respective capital account balances, if any, which shall be made in the ratio of their respective account balances;

4.

Any funds remaining after the amounts described in the foregoing Sub-clauses (1), (2) and (3) have been paid shall be distributed to the Partners in the proportion in which the Partners share the net profits of the Venture at the time of such distribution.

5.

If the Partners have not sold the assets of the Venture (i.e. non-monetary assets other than rights in the Property) within one (1) year following dissolution, then there shall be distributed to the Partners as tenants in common, subject to the foregoing Sub-clauses (1), (2), (3) and (4) of this Clause 15(b), undivided interests in the assets of the Venture, as valued and constituted on the date.

15.

 GAIN OR LOSS DURING DISSOLUTION: Any gain or loss arising out of the disposition of the assets of the Venture during the course of dissolution shall be borne by the Partners in the same proportions as such gain or loss was shared by the Partners hereunder immediately prior to dissolution.

16.

 OPPORTUNITIES AND CONFLICTS OF INTEREST: Any Partners may engage or possess an interest in any other business Venture of every kind, nature and description, including ventures or enterprises which may be competitive in nature with the Venture, and neither the Venture nor any of the Partners shall have any rights in and to said business ventures, or to the income or profits derived therefrom.

17.

 DEATH, INCAPACITY, DISABILITY OF A PARTNER: 

a.

Upon the death, legal incapacity or total disability of a Partner leaving the other Partner surviving, this joint venture shall not dissolve but shall continue as a limited partnership with the successor(s) in interest of such deceased, incapacitated or disabled Partner as a limited partner thereof, which limited partner shall not be entitled to vote on the partnership business except that such limited partner’s written approval and signature shall be required for any sale or other disposition of the Production.

b.

If in the opinion of legal counsel for the deceased, incapacitated or disabled Partner cannot be converted to a limited partnership interest without adverse tax consequences, then upon the death, incapacity or disability of such Partner, this joint venture shall not dissolve but shall continue with the remaining Partner and the legal representative(s) or successor(s) in interest of such deceased, incapacitated or disabled Partner, shall thereafter be deemed a Class B Partner in the Venture. Such Class B Partner shall be entitled to the same economic rights, preferences as to distribution, capital and profits interest in the Venture as was the deceased, incapacitated or disabled Partner, including the right to approve all withdrawals; provided, however that such Class B Partner(s) shall not be entitled to vote on Venture matters or to participate in the management of the venture business, except that such Class B Partner’s written approval shall be required for any sale or other disposition of the Production.

18.

 NOTICES: All such notices which any party is required or may desire to serve

hereunder shall be in writing and shall be served by personal delivery to the other party or by prepaid registered or certified mail addressed to the parties at their respective addresses as set forth in Clause 6 hereof, or at such other address as the parties may from time to time designate in writing upon the books of the Venture, or by facsimile with written verification of receipt.  

19.

 ARBITRATION: Any controversy or dispute arising out of or relating to the    Venture or the breach or alleged breach of any provision of this Agreement shall be settled by arbitration at                         __ County, Florida, in accordance with the rules of the American Arbitration Association and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The prevailing party in any such arbitration shall be entitled to recover from the other party reasonable attorney fees and costs incurred in connection therewith. The determination of the arbitrator in such proceeding shall be final, binding and non-appealable. Nothing contained in this clause shall preclude any 

party from seeking and obtaining any injunctive or other provisional remedy available in a court of law.

20.

 GOVERNING LAW: This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State of Florida applicable to agreements executed and to be wholly performed within such state.

21.

 ILLEGALITY: Nothing contained in this Agreement shall be construed so as to require the commission of any act or the payment of any compensation that is contrary to law or to require the violation of any guild or union agreement applicable hereto that may, from time to time, be in effect and by its terms controlling of this Agreement. If there is any conflict between any provision of this Agreement and any applicable law and the latter shall prevail, then the provision or provisions of this Agreement affected shall be modified to the extent (but only to the extent) necessary to remove such conflict and permit such compliance with the law.

22.

NO WAIVER: No waiver by any party hereof of any failure by any other party to keep or perform any covenant or condition hereof shall be deemed a waiver of any preceding or succeeding breach of the same or any other covenant or condition.

23.

 AMENDMENT: This Agreement may not be amended or changed except by a written instrument duly executed by each of the Partners.

24.

 ADDITIONAL DOCUMENTS: Each Partner shall execute and deliver any and all additional papers, documents, and other instruments and shall do any and all further acts and things reasonably necessary in connection with the performance of his or its obligations hereunder to carry out the intent of the Venture.

25.

 DOCUMENTATION: Any and all consents and agreements provided for or permitted by this Agreement shall be in writing and a signed copy thereof shall be filed and kept with the books of the Venture.

26.

 ENTIRE AGREEMENT: This Agreement contains the sole and only agreement of the Partners relating to the Venture and correctly sets forth the rights, duties and obligations of each to the other as of its date. Any prior agreements, promises, amendments, negotiations or representations not expressly set forth in this Agreement are of no force and effect.

27.

 RESTRICTIONS: No Partner shall sell, assign, mortgage, hypothecate or encumber his interest, or portion thereof, in the Venture without the prior written consent of the other Partner.

IN WITNESS WHEREOF, this Agreement is executed as of the date and year first above written.

ATTEST:

MILLENNIUM GROUP WORLDWIDE, INC.

             

__________________

BY: _______________________

 

                               Julius Jackson, Chairman

    

ATTEST:

FRANKLIN AUTO MALL, INC.

    

__________________

BY: __________________________

 

                                James J. Hayden, Jr., CEO

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