Document:

Unassociated Document

    PLEDGE
      AND ESCROW AGREEMENT

    

    THIS
      PLEDGE AND ESCROW AGREEMENT, dated as of August ___, 2007, is made by
bioMETRX
      Technologies, Inc. (the
      “Pledgor”) and ________________(the “Escrow Agent”) and
      Jane Petri and Joseph Panico
      (the
“Holders”).

    

    RECITALS

    

    
      	
              A.

            	
              The
                Holders loaned the Pledgor’s parent company bioMETRX, Inc., $800,000
                represented by two convertible notes, each in the amount of $400,000
                (the
                “Notes”) dated August 27, 2007 due May 27,
                2008.

            

    

    

    
      	
              B.
                

            	
              In
                order to induce the Holders to make the loan, the Pledgor has agreed
                to
                pledge an aggregate of 500,000 shares of bioMETRX, Inc. common stock
                owned
                by it represented by the certificates set forth on Schedule A hereto
                (the
                “Pledged Securities”) as security for the full payment and performance of
                his obligations under the Notes.

            

    

    

    
      	
              C.

            	
              The
                Holders has agreed to accept the Pledged Securities as security for
                such
                obligations.

            

    

    

    NOW,
      THEREFORE, it is agreed as follows:

    

    1. Pledge.
      As
      collateral security for the payment, performance and observance of the Note,
      the
      Pledgor herewith pledges, assigns, transfers, hypothecates, and grants to the
      Holders, a security interest in the Pledged Securities and the certificate(s)
      evidencing the same and such additional property at any time and from time
      to
      time receivable by the Pledgor as a dividend or in respect of or in exchange
      for
      any or all such shares, the Pledgor herewith pledges, together with any and
      all
      products and proceeds of any of the foregoing in whatever form. The Pledged
      Securities and the products and proceeds thereof may be referred to collectively
      as the “Pledged Collateral.”

    

    2. Delivery
      to Agent for Holders.
      Concurrently with the execution of this Pledge and Escrow Agreement, the Pledgor
      shall deliver the certificates representing the Pledged Securities to the Escrow
      Agent, acting as agent for the Holders solely for the purposes of perfecting
      the
      security interest granted hereby. Acting in such capacity, the Escrow Agent
      shall maintain possession of the Pledged Securities until they are required
      to
      be released to either the Pledgor or the Holders pursuant to the provisions
      of
      this Agreement. The Pledgor has deposited with the Escrow Agent five stock
      powers duly executed in blank with signatures guaranteed by a Medallion
      Participant, which shall be delivered with the Pledged Securities.

    

    3. Title.
      The
      Pledgor agrees to use reasonable efforts to defend the Holders's right, title,
      lien and security interest in and to the Pledged Collateral against the claims
      and demands of all persons whomsoever. The Pledgor also represents and warrants
      to the Holders that it has good title to all of the Pledged Collateral, free
      and
      clear of all claims, mortgages, pledges, liens, encumbrances and security
      interests of every nature whatsoever (“Liens”) except those granted to the
      Holders herein and that no consent or approval of any governmental or regulatory
      authority, or of any securities exchange is required to be obtained by the
      Pledgor in connection herewith.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    4.
       Delivery
      of the Pledged Securities by Escrow Agent.
      Upon
      the failure of the Pledgor to pay the interest or principal on the Note when
      due
      in accordance with the terms thereof or occurrence of an Event of Default
      defined in the Note (as amended by Section 6 of this Agreement or herein (an
      “Event of Default”) and upon two business days notice to the Escrow Agent and
      the other party, the Escrow Agent shall deliver, the certificate(s) representing
      the Pledged Securities and additional collateral held pursuant to Section 5
      hereof or otherwise to the Holders. Upon payment in full of the Note, the
      expiration of any applicable period (not to exceed 60 days) during which the
      Holders may be subject to third party claims with respect to the payment of
      the
      Note, and upon two business days notice to the Escrow Agent and the other party,
      the Escrow Agent shall deliver the certificate(s) for the Pledged Securities
      and
      additional collateral held pursuant to Section 5 hereof or otherwise to the
      Pledgor and the Pledge Collateral shall no longer be subject to the security
      interest granted hereby. 

    

    5.
       Dividends.
      If,
      upon the dissolution or liquidation (in whole or in part) of bioMETRX, Inc.,
      any
      sum shall be paid as a liquidating dividend or otherwise upon or with respect
      to
      any of the Pledged Securities, and if any other dividends of any kind shall
      be
      otherwise paid upon or with respect to any of the Pledged Securities under
      any
      other circumstances, such sum shall be paid over to the Escrow Agent, to be
      held
      as additional collateral hereunder. In case any stock or other dividend shall
      be
      declared on any of the Pledged Securities, or any shares of stock or fractions
      thereof shall be issued pursuant to any stock split involving any of the Pledged
      Securities, or any shares shall be distributed upon or with respect to the
      Pledged Securities pursuant to a recapitalization or reclassification of the
      capital of the Holders, or pursuant to the dissolution, liquidation (in whole
      or
      in part), bankruptcy or reorganization of the Holders, or to the merger or
      consolidation of the Holders with or into another Holders, the shares,
      obligations or other property so distributed shall be delivered to the Escrow
      Agent (together with stock powers executed in blank by each Pledgor, where
      appropriate), to be held by it as additional collateral hereunder, and all
      of
      the same shall constitute Pledged Collateral for all purposes
      hereof.

    

    6.
       Voting.
      Until
      there is an Event of Default, the Pledgor shall have the sole and absolute
      right
      to exercise all voting power with respect to the Pledged Securities. If an
      Event
      of Default occurs and is continuing, the Holders shall have the sole and
      absolute right, in addition to any other rights granted herein, to exercise
      any
      and all voting power with respect to the Pledged Securities. In such event,
      the
      Pledgor, upon the demand of Holders, appoint the Holders as the Pledgor’s true
      and lawful proxy to vote such shares in any manner which the Holders deems
      advisable for or against all matters which may be submitted to a vote of such
      stockholders.

    

    7. Rights
      of Secured Party.
      The
      Pledgor agrees that, upon an Event of Default, the Holders shall have the rights
      and remedies provided in the Uniform Commercial Code in force in the State
      of
      New York at the date of this Agreement and in this connection, the Holders
      may
      upon five days' notice to the Pledgor, sent by registered mail, and without
      liability for any diminution in price which may have occurred, sell all the
      Pledged Collateral in such manner and for such price as the Holders may
      determine or propose to retain the Pledged Collateral in lieu of repayment
      of
      the Note. At any bona fide public sale the Holders shall be free to purchase
      all
      or any part of the Pledged Securities. Out of the proceeds of any sale the
      Holders may retain an amount equal to the principal and interest then due on
      the
      Loan, plus the amount of the expenses of the sale.

     

    
      
        
        

      

      
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    8. Endorsement.
      Upon an
      Event of Default in respect of the Note, the Holders shall have the right,
      for
      and in the name, place and stead of the Pledgor, to execute endorsements,
      assignments or other instruments of conveyance or transfer with respect to
      all
      or any of the Pledged Collateral.

    

    9. Indemnification
      and Costs.
      

    

    (a) The
      Pledgor and the Holders release the Escrow Agent from any claims, causes of
      action and demands at any time arising out of or with respect to this Agreement,
      the Pledged Collateral and/or any actions, taken or omitted to be taken by
      the
      Escrow Agent with respect thereto, and the Pledgor and the Holders hereby agree
      to hold the Escrow Agent harmless from and with respect to any and all such
      claims, causes of action and demands other than those resulting from the gross
      negligence or willful misconduct of the Escrow Agent.

    

    (b) The
      Holders shall be exclusively responsible for all costs and expenses (if any)
      incidental to the performance by the Escrow Agent of its duties as agent
      hereunder.

    

    10. Rights
      Duties and Immunities.
      

    

    (a) The
      duties and obligations of the Escrow Agent shall be determined solely by the
      express provisions of this Agreement. The Escrow Agent shall not be liable
      except for the performance of such duties and obligations as are specifically
      set out in this Agreement and the Escrow Agent shall not be deemed to have
      any
      knowledge of, or responsibility for, the terms of any other agreement,
      instrument or document.

    

    (b) The
      Escrow Agent shall not be responsible in any manner whatsoever for any failure
      or inability of any party hereto, or of any one else, to deliver documents
      to
      the Escrow Agent or otherwise to honor any of the provisions of this
      Agreement.

     

    (c) The
      Escrow Agent shall be entitled to rely upon any judgment, certification, demand,
      notice, instrument or other writing delivered to it hereunder without being
      required to determine the authenticity of the correctness of any fact stated
      therein or the propriety or validity or the service thereof. The Escrow Agent
      shall be fully protected in acting on and relying upon any written notice,
      direction, request, waiver, consent, receipt or other paper or document which
      the Escrow Agent believes to be genuine. The Escrow Agent may act in reliance
      upon any instrument or signature it reasonably believes to be genuine and the
      Escrow Agent may assume that any person purporting to give any advice or make
      any statement in connection with the provisions hereof has been duly authorized
      to do so.

    

    (d) 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 bad faith, willful misconduct or gross negligence.

    

    (e) The
      Escrow Agent may seek the advice of legal counsel as to any question arising
      from or relating to the construction of any of the provisions of this Agreement
      or its duties or obligations hereunder or otherwise, and it shall incur no
      liability and shall be fully protected in respect of any action taken, omitted
      or suffered by it in good faith in accordance with the advice of such
      counsel.

     

    
      
        
        

      

      
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    (f) The
      Escrow Agent does not make and will not be required or deemed to make any
      representation as to the validity or genuineness of any agreement, document
      or
      other instrument held by or delivered to it.

    

    (g) If
      a
      dispute arises between one or more of the parties hereto, or between any of
      the
      parties hereto and any person not a party hereto, as to whether or not or to
      whom the Escrow Agent shall deliver any of the Pledged Securities or as to
      any
      other matter arising from or relating to this Agreement or any related
      agreement, the Escrow Agent shall not be required to determine such dispute
      and
      need not make any delivery of any of the Pledged Securities, but will retain
      the
      same until the rights of the parties to the dispute shall have finally been
      determined by written agreement among the parties to the dispute or by final
      non-appealable order of a court of competent jurisdiction. In the event that
      the
      Escrow Agent has received notice of such order or any such agreement, the Escrow
      Agent shall cause the Pledged Securities to be released and delivered in
      accordance with such agreement or order.

    

    (h) The
      Escrow Agent shall be entitled to assume that no dispute of the type referred
      to
      in Section 11(g) has arisen unless it has received a written notice that such
      a
      dispute has arisen, which written notice refers specifically to this Agreement
      and identifies by name and address the adverse claimants in such dispute. Any
      party delivering written notice of a dispute pursuant to this Section 11(h)
      shall simultaneously therewith deliver a copy of such notice to all parties.
      For
      purposes of this Section 11(h), the Escrow Agent shall not be deemed to have
      received a written notice until all parties to this Agreement have received
      such
      written notice. If a dispute of the type referred to in Section 11(g) arises,
      the Escrow Agent may, in its sole discretion (but shall not be obligated to),
      commence interpleader or similar actions or proceedings for determination of
      such dispute. 

    

    11. Successor
      Escrow Agent.
      

    

    (a)
       The
      Escrow Agent may, at any time, resign as such with or without the prior written
      consent of all the parties hereto, in which case the Escrow Agent (and any
      successor escrow agent) shall deliver the Pledged Securities, a copy of this
      Agreement and any other documents delivered to it hereunder to any successor
      escrow agent jointly designated by the Holders and Pledgor in writing, or to
      any
      court of competent jurisdiction, whereupon the Escrow Agent shall be discharged
      of and from any and all further duties and obligations arising in connection
      with this Agreement. The resignation of the Escrow Agent shall take effect
      on
      the earlier of (i) the appointment of a successor escrow agent, or (ii) the
      day
      which is two business days after the date of the delivery of the Pledged
      Securities, a copy of this Agreement and any other documents delivered to the
      Escrow Agent hereunder to any court of competent jurisdiction. In the event
      that
      a successor escrow agent has not been appointed at the expiration of such
      two-day period, the Escrow Agent’s sole responsibilities hereunder shall be: (i)
      to maintain the safekeeping of the Pledged Securities and any other documents
      delivered to it hereunder, if any, and (ii) to release and deliver the Pledged
      Securities and any such documents in accordance with Section 4 of this
      Agreement.

     

    
      
        
        

      

      
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    (b) If
      the
      Escrow Agent receives a written notice signed by the Holders and Pledgor stating
      that they have selected a successor escrow agent, the Escrow Agent shall deliver
      the Pledged Securities (and any other documents then held by it hereunder,
      if
      any) to the successor escrow agent named in the aforesaid notice within 15
      days
      after receipt of such written notice.

    

    12. Power
      of Attorney.
      Upon an
      Event of Default which is continuing, the Pledgor hereby appoints the Holders
      or
      Holders's designees, successors or assigns as such Pledgor's attorney-in-fact
      for the purpose of carrying out the provisions of this Agreement and taking
      any
      action and executing any instrument which the Holders may deem necessary or
      advisable to accomplish the purposes hereof. Without limiting the generality
      of
      the foregoing, the Holders shall have the right and power to receive, endorse
      and collect all checks and other orders for the payment of money made payable
      to
      the Pledgor representing any interest or dividend or other distribution payable
      in respect of the Pledged Collateral which the Holders is entitled to receive
      hereunder or any part thereof and to give full discharge for the
      same.

    

    13. Notices.
      Any
      notice or demand upon the Pledgor shall be deemed to have been sufficiently
      given for all purposes thereof if mailed, postage prepaid, by registered or
      certified mail, return receipt requested, or if delivered, to the addresses
      set
      out below or at such other address as the parties hereto may heretofore have
      designated in writing:

    

    If
      to the
      Pledgor:

    

    bioMETRX
      Technologies, Inc.

    c/o
      bioMETRX, Inc.

    500
      North
      Broadway, Suite 204

    Jericho,
      NY 11753

    

    If
      to the
      Holderss:

    

    Jane
      Petri

     

    ______________________________

     

    Joseph
      Panico

     

    ______________________________

     

    If
      to the
      Escrow Agent:

     

    _______________________________

    Attention:
      Mark Canizio 

     

    
      
        
        

      

      
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    14. Governing
      Law.
       EXCEPT
      AS
      OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS,
      INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT
      AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
      ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
      CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
      THEREOF REGARDING CONFLICT OF LAWS, AND ANY APPLICABLE LAWS OF THE UNITED STATES
      OF AMERICA. HOLDERS AND EACH PLEDGOR AGREE TO SUBMIT TO PERSONAL JURISDICTION
      AND TO WAIVE ANY OBJECTION AS TO VENUE IN THE COUNTY OF NASSAU, STATE OF NEW
      YORK. SERVICE OF PROCESS ON PLEDGOR OR HOLDERS IN ANY ACTION ARISING OUT OF
      OR
      RELATING TO ANY OF THE LOAN DOCUMENTS SHALL BE EFFECTIVE IF MAILED TO SUCH
      PARTY
      AT THE ADDRESS LISTED IN SECTION 14 HEREOF. NOTHING HEREIN SHALL PRECLUDE
      HOLDERS OR PLEDGOR FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER
      JURISDICTION.

    

    15. Submission
      to Jurisdiction.
      Each of
      the parties hereto hereby irrevocably and unconditionally consents to submit
      to
      the exclusive jurisdiction of the courts of the State of New York and of the
      United States of America, in each case located in Nassau County, for any action,
      proceeding or investigation in any court or before any governmental authority
      (“Litigation”) arising out of or relating to the Transaction Documents and the
      transactions contemplated thereby (and agrees not to commence any Litigation
      relating thereto except in such courts), and further agrees that service of
      any
      process, summons, notice or document by U.S. registered mail to its respective
      address set forth in this Agreement shall be effective service of process of
      any
      Litigation brought against it in any such court. Each of the parties hereto
      hereby irrevocably and unconditionally waives any objection to the laying of
      venue of any Litigation arising out of this Agreement or the transactions
      contemplated hereby in the courts of the State of New York or the United States
      of America, in each case located in the County of Nassau, and hereby further
      irrevocably and unconditionally waives and agrees not to plead or claim in
      any
      court that any such Litigation brought in any such court has been brought in
      an
      inconvenient forum.

    

    16. Counsel.
      The
      Pledgors represents and warrants that they have availed themselves of the advice
      of counsel.

    

    17. Multiple
      Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original and all of which taken together shall constitute but one
      and
      the same instrument.

    

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Pledgor has executed this Agreement as of the day and
      year
      first above.

    
      	 	 	 
	 	
              “PLEDGOR”

              

                bioMETRX,
                  Technologies, Inc.

              

            
	 
 	   

              

            
	
            	By:  	
               

              
                
 

            
	 	Title 	 

              

            
	 	 	 
	 	 	 

    

    
      
        	
                Accepted
                  and
                  Agreed this ____ day 

                of August, 2007.

              	 	 	
                Accepted
                  and
                  Agreed this ____ day

                of _________________, 2007.

              
	 	 	 	 
	“HOLDERSS”	 	 	“ESCROW
                AGENT”
	 	 	 	 
	
              	 	 	
              
	
                
JANE
                PETRI	 	 	
                
MARK
                CANIZIO

      

    

    
      	 	 	 	 
	
            	 	 	
            
	
              

              JOSEPH
                PANICO

            	 	 	
            

    

     

    
      
        
        

      

      
        7Unassociated Document

     

    ROYALTY
      A G R E E M E N T 

    

    THIS
      AGREEMENT executed August ____, 2007 (the
      “Effective Date”) by
      and
      between BIOMETRX, INC., a Delaware corporation with its principal place of
      business located at 500 North Broadway, Suite 204, Jericho, NY 11753
      (hereinafter referred to as “bioMETRX”), and Jane Petri and Joseph Panico with a
      mailing address located at __________________ (hereinafter,
      Jane
      Petri and Joseph Panico shall be
      referred
      to,
      jointly,
      as
“Petri and Panico”). bioMETRX and Petri and Panico are hereinafter sometimes
      referred to as the “parties”.

    

    WITNESSETH

    

    WHEREAS,
      bioMETRX is
      and/or
      will
      become
      the sole
      owner of all intellectual property rights in
      Patent
      # 7,043,060 (the “Patent”) relating
      to a biometric padlock
      of the
      type disclosed and/or illustrated by the Patent (collectively, the “Intellectual
      Property”);

     

    WHEREAS,
      Petri and Panico have been instrumental in assisting bioMETRX in its acquisition
      of the
      Patent;
      and

     

    WHEREAS,
      and
      for
      other good and valuable consideration, including the making of new loans, and
      extending existing various loans to bioMETRX, the receipt of which are hereby
      acknowledged by bioMETRX;
      and

     

    WHEREAS,
      bioMETRX
      desires to compensate Petri and Panico as
      defined
      and set forth below. 

    

    NOW,
      THEREFORE, in consideration of the mutual covenants contained
      herein
      and for
      other good and valuable consideration, the receipt and sufficiency of which
      is
      hereby acknowledged,
      the
      parties agree as follows:

    

    1.
      TERM
      OF THE AGREEMENT

     

    Subject
      to the parties’ limited rights to terminate, as defined hereinbelow, this
      Agreement shall take effect upon the Effective
      Date
      first
      set forth herein
      above, and, unless earlier terminated pursuant to the terms of this
      Agreement,
      shall
      continue in effect until
      the
      later of (a) August 31, 2017 or (b) the expiration date
      of the
      Patent
      (the
“Term”).
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.
      RENUMERATION

     

    A.
      In
      consideration for
      and
      as an inducement for Panico and Petri to enter into the Loan(s)
      and loan
      extensions,
      bioMETRX agrees to pay to Panico and Petri an
      amount
      equal to
      $0.13 per unit (the
      “Payment Amount”) for each Product (as defined below) sold, leased or licensed
      during the Term of this Agreement by bioMETRX, or its subsidiary, affiliate,
      sublicensee, contractor or other agent. For purposes of this Agreement,
“Product” means a product of the type disclosed and/or illustrated by the
      Patent, and/or designed, developed, manufactured or made utilizing the
      Patent

     

    B.
      The
      Payment Amount
      in this
      Article for
      the
      all Products sold, leased or licensed during a Calendar Quarter (as defined
      below) shall
      be
      payable to Panico and Petri within thirty (30) days after
      the
      last day of the Calendar Quarter in which such Products were sold, leased and/or
      licensed. For purposes of this Agreement, “Calendar Quarter” shall mean the
      period beginning on the Effective Date and ending on September 2007, and each
      subsequent three (3) month period (or portion thereof) while
      this
      Agreement is in effect.

     

    C.
      All
      payments by bioMETRX under this Agreement shall be free and clear of any
      deductions for taxes, assessments or other charges.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    3.
      RELATIONSHIP

     

    bioMETRX
      and Panico and Petri are separate and individual entities/persons. .
      This
      Agreement does not convey, transfer, assign or hypothecate any right, title
      or
      interest to Patent # 7,043,060 to Panico or Petri and bioMETRX is, and is the
      sole owner of any such rights.
      This
      Agreement does not convey any authority or power upon either to make any
      agreement or commitment in the name of or on behalf of the other, or for either
      party to incur any indebtedness whatsoever for the account of the other. This
      Agreement is
      not
      intended, and shall
      not
      be deemed,
      to
make
      the
      parties partners or joint venturers, and neither party, nor their respective
      agents and employees, shall under any circumstances be deemed the agent or
      representative of the other.

    

    4.
      ROYALTY
      & SALES RECORDS

     

    A.
      bioMETRX shall keep accurate and
      regular
      accounts and
      records currently
      maintained to record full entries and particulars covered by this Agreement
      and
      particulars of all such sale,
      leases and license of Products, in all events sufficient to allow calculation
      of
      the amounts to be paid by bioMETRX to Panico and Petri pursuant to
      this
      Agreement
      for each
      Calendar Quarter.
      With
      each bioMETRX payment hereunder,
      a report shall be submitted by bioMETRX to Panico and Petri regarding
      the number of Products sold, leased or licensed during, and the calculation
      of
      the applicable amounts to be paid to Panico and Petri for, the applicable
      Calendar Quarter or portion thereof, and from the Effective Date
      of this
      Agreement. The required report shall set forth the following: (l) The period
      for
      which the report is made; (2) Identification and number of items of Products
      sold, leased or licensed;
      and (3)
      Amount of related
      payments due to Panico and Petri for such Products.
      

     

    B.
      bioMETRX further gives Panico and Petri the right,
      at their
      own expense
      (except
      as otherwise provided in this Agreement),
      and/or
      with a duly authorized agent or auditor of Petri and Panico who has executed
      an
      appropriate nondisclosure agreement, upon reasonable prior notice, to examine
      such books and records of bioMETRX limited to the sale, lease or licensing
      of
      the product(s) covered by the Patent, but not more often than twice in any
      calendar year, for the purpose of verifying the reports submitted pursuant
      to
      this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    C.
      In the
      event such examination of bioMETRX’ books and records discloses a deficiency in
      the amount of Royalties paid to Panico and Petri, and if such deficiency is
      greater than five percent (5%), in such event bioMETRX shall pay to Panico
      and
      Petri the reasonable costs and
      expenses of
      such
      examination plus interest on the deficiency from the time due until paid of
      twelve percent (12%) simple interest per annum.

    

    5.
      INDUCEMENT FOR LOANS

     

    A.
      This
      Agreement has been entered by the parties as an inducement to Panico and Petri
      to make new Loans and extend existing loans. 

     

    B.
      bioMETRX acknowledges and agrees that Panico and Petri would not have agreed
      to
      make the Loans unless bioMETRX entered into this Agreement.

     

    6.
      TERMINATION
      EFFECTS

     

    A.
      Termination of this Agreement for
      any
      reason
      shall
      not relieve either party of its liabilities accruing up to the time of
      termination and shall not prejudice the right of either party to recover any
      and
      all sums then due it hereunder or in respect of any breach.

     

    B.
      Termination of this Agreement shall not affect the right of Panico and Petri
      to
      make a final audit of the books and records of bioMETRX, in accordance with
      the
      provisions of this Agreement, provided that such audit is made by Panico and
      Petri within twelve (12) months of such termination.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    7.
      BANKRUPTCY

     

    In
      the
      event bioMETRX shall make an assignment to or for the benefit of creditors,
      or
      if a liquidation or receiver of the affairs of bioMETRX is appointed, Panico
      and
      Petri, at their option, may upon sixty (60) days notice thereafter terminate
      this Agreement. The parties have considered the possibility and possible
      consequences of the terms of this Article and the possible loss and damages
      incident to them in the event of expiration or termination. 

    

    8.
      NOTICES
      AND REPORTS

     

    All
      notices and reports, wherever required in this Agreement, shall be in writing.
      Such notices and reports shall be deemed to have been sufficiently given if
      one
      copy is sent by a
      party
      via registered
      mail to the other
      party
      at the
      respective address
      for such other party
      set
      forth in the first paragraph of this Agreement. The date of mailing shall be
      deemed to be the date on which notice has been given. Any party hereto may
      give
      written notice of a change of address pursuant
      to this Article and,
      after
      such
      notice
      of such change has been received, any notice thereafter shall be given to such
      party at such changed address.

    

    9.
      CONSTRUCTION
      & VENUE

     

    This
      Agreement
      shall be
      deemed to be a New York contract subject to interpretation in accordance with
      the laws of the State of New York without giving effect to principles of
      conflict of laws. This Agreement shall be deemed drafted and prepared by both
      parties and their respective attorneys, and no adverse interpretation or
      inference shall be drawn against either party as the drafter or preparer of
      this
      Agreement or any provision herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    10.
      BENEFIT;
      ASSIGNMENT

     

    This
      Agreement shall be binding upon and shall inure to the benefit of the successors
      and assigns of the parties. 

    

    11.
      ENTIRE
      AGREEMENT

     

    This
      Agreement constitutes the entire understanding and agreement between the parties
      hereto
      with
      respect to the subject matter of this Agreement
      and
      supersedes any and all prior and collateral understandings and agreements
      between them relating to the specific subject matter hereof. There are no terms,
      obligations, covenants, representations, statements or conditions other than
      those contained herein. No variation or modification of this Agreement, or
      waiver of any of the terms or provisions hereof, shall be deemed valid unless
      in
      writing and signed by each party having a material interest in such variation,
      modification or waiver.

     

    12.
      SEVERABILITY

     

    If
      any
      provision of this Agreement is for any reason declared to be invalid, the
      validity of the remaining provisions shall not be affected thereby.

    

    13.
      SECTION
      AND OTHER HEADINGS

     

    The
      section and other headings contained in this Agreement are for reference
      purposes only and shall not in any way affect the meaning or interpretation
      of
      this Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have hereunto set their hands and seals as of the date and year first
      written above.

    

    BIOMETRX,
      INC.    

     

    

    By

    
      

    

        

    
      	JOSEPH
              PANICO	 	 	JANE
              PETRI
	By	 	 	By

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