Document:

ex10_2.htm

    Exhibit
10.2

    

    ESCROW
AGREEMENT

    

    

    

    THIS ESCROW AGREEMENT (the “Agreement”) is made and entered into as of May
11, 2009, by and among Commonwealth Income & Growth Fund VII, LP, a
Pennsylvania limited partnership (the “Company”),
and BRANCH
BANKING AND TRUST COMPANY, a North Carolina banking corporation (the “Escrow Agent”).  This
Agreement shall be effective as provided in Paragraph 1
below.

    

               WHEREAS,
Commonwealth Income & Growth Fund, Inc., a Pennsylvania corporation, is
serving as the general partner (the “General Partner”) of the
Company;

     

        WHEREAS, the
Company proposes to offer and sell, on a
best-efforts basis through Commonwealth Capital Securities Corp. (the
“Placement Agent”) and selected broker-dealers who are registered with the Financial Industry
Regulatory Authority. or who are exempt from
broker-dealer registration (the Placement
Agent and such selected broker-dealers are hereinafter referred to
collectively as the “Soliciting Dealers”) up to
2,500,000 units of limited
partnership interest in the
Company at a Unit purchase price of
$20.00 (the “Units”) to investors
pursuant to the Company’s Prospectus,
dated
________, 2009; and

    

               WHEREAS,
the Company has agreed that the
subscription price paid by subscribers for
Units will be refunded to such subscribers if an aggregate of 57,500
Units or more of the Company have not been sold and paid for on or before the
second anniversary of the effective date of the Company’s registration statement
registering the Units, (the “Closing Date”); and

    

               WHEREAS,
in compliance with Rule 15c2-4 under the Securities Exchange Act of 1934, as
amended (“Rule 15c2-4”), the Company
desires to establish an escrow in which funds received from subscribers will be
deposited until the Closing Date or such earlier
date on which subscriptions for at least 57,500 Units have
been received, and the Escrow Agent is willing to serve as Escrow Agent
upon the terms and conditions herein set forth;
and

    

               WHEREAS, in order to subscribe for Units, a subscriber
must deliver the full amount of its subscription, subject to volume discounts or
net of commission sales as applicable: (i) by check in U.S. dollars, (ii) by
wire transfer of immediately available funds in U.S. dollars, or
(iii)  as otherwise agreed to by the Company (collectively, the
“Payment”).

    

               NOW,
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties, the parties covenant and agree as follows:

    

    
      	
              1.  

            	
              Establishment of
      Escrow Account.  On or prior to the commencement of the
      offering of Units pursuant to the Memorandum, the Company shall establish
      an escrow account with the Escrow Agent, which escrow account shall be
      entitled “Escrow Account for the Benefit of Subscribers to Units of
      Membership Interest of
      CIGF7            (the
      “Escrow Account”).  This Agreement shall be effective on the
      date monies and subscription documents received from subscribers for the
      subscription of Units are first deposited into the Escrow Account. All monies deposited in the Escrow Account are
      hereinafter referred to as the “Escrowed
      Funds.”  The Company will
      cause the Soliciting Dealers to instruct
      subscribers to make Payments for
      subscriptions payable to the order of the Escrow Agent. Any
      Payments received that are made
      payable to a party other than the
      Escrow Agent shall be returned to the Soliciting Dealer who submitted the
      Payment.  The Placement Agent may authorize certain Soliciting
      Dealers which are “$250,000 broker-dealers” to instruct their customers to
      make their Payments for Units subscribed for payable directly to the
      Soliciting Dealer.  In such case, the Soliciting Dealer will
      collect the proceeds of the subscribers’ Payments and issue a Payment made
      payable to the order of the Escrow Agent for the aggregate amount of the
      subscription proceeds. The escrow period shall commence on
      the effective date and shall terminate on the Closing
  Date.

            

    

    

    
      	
              2.  

            	
              Deposits into the
      Escrow Account. The Company
      will promptly deliver all monies received from subscribers for the payment of Units to the Escrow Agent for deposit in the Escrow Account.  Until such time
      that the Escrowed Funds are deliverable to the Company pursuant to the provisions of Paragraph 5(a) below, the Company or its designee also will deliver to the Escrow Agent a
      written account of each sale, which account shall set forth, among other
      things, the following information:  (i) the
      subscriber’s name and address, (ii)
      the number of Units purchased by such
      subscriber, and (iii) the amount paid by such subscriber for such
      Units.  The Company is aware and understands that, during the escrow period, it is not
      entitled to any funds received into the Escrow Account, and no amounts
      deposited in the Escrow Account shall become the property of the Company or any other entity, or be subject
      to the debts of the Company or any
      other entity.

            

    

    

    
      	
              3.  

            	
              Collection
      Procedure.

            

    

    

    
      	
              (a)  

            	
              The
      Escrow Agent is hereby authorized to forward each Payment for collection and, upon collection
      of the proceeds of each Payment, to
      deposit the collected proceeds in the Escrow
  Account.

            

    

    

    
      	
              (b)  

            	
              Any
      Payment returned unpaid to the Escrow
      Agent shall be returned to the  Soliciting Dealer that submitted the
      Payment. In such cases, the Escrow Agent will promptly notify the
      Company of such
    return.

            

    

    

    
      	
              (c)  

            	
              In the event
      that  the Company, the
      General Partner  or any agent acting on behalf of the
      Company rejects any subscription for Units
      and the Escrow Agent has already collected funds for such subscription, the Escrow Agent
      shall promptly issue a refund Payment
      to the drawer of the Payment submitted by or
      on behalf of the rejected or
      withdrawing subscriber.  If the Escrow Agent has not yet
      collected funds for such subscription
      but has submitted the Payment
      relating to such subscription for collection, the Escrow Agent
      shall promptly issue a Payment in the
      amount of such Payment to the
      rejected or withdrawing subscriber
      after the Escrow Agent has cleared such funds.  If the Escrow Agent has not yet submitted
      the Payment relating to the subscription of
      the rejected or withdrawing subscriber, the Escrow Agent shall
      promptly remit such Payment directly to the drawer of the Payment
      submitted by or on behalf of the
  subscriber.

            

    

    

    
      	
              4.  

            	
              Investment of
      Escrowed
      Funds.  The Escrow Agent, immediately upon receipt of
      each Payment remitted to it, shall deposit such Payment in the Federated U.S. Treasury Cash Reserve Fund
      #632, provided, however, that
      any deposits must be made into permissible investments under Rule 15c2-4,
      i.e., either (1) bank accounts, (2) bank money-market accounts, (3) short
      time certificates of deposit issued by a bank, or (4) short-term
      securities issued or guaranteed by the US Government.  Interest and dividends earned on
      such investments shall be similarly reinvested.  Following the
      distribution of Escrowed Funds to the Company pursuant to Paragraph 5
      below, any funds remaining in the Escrow Account shall be invested in
      Federated U.S. Treasury Cash Reserve Fund
#632.

            

    

    

    
      	
              5.  

            	
              Distribution of
      Escrowed
      Funds.  The Escrow Agent shall release from the Escrow Account to the Company any
      and all Escrowed Funds therein together with all interest earned thereon,
      upon written request of an officer of the
  Company.

            

    

    

    
      	
              (a)  

            	
              Subject to the last sentence of this Paragraph
      5(a), if at any time on or prior to the Closing Date, an aggregate
      of 57,500 Units of the Company have been sold, then upon the
      happening of such event, the Escrow Agent shall deliver the Escrowed Funds to the Company.  An affidavit or
      certification from an officer of the General Partner of the Company stating 57,500 Units
      have been timely sold, shall constitute sufficient evidence for the
      purpose of this Agreement that such
      event has occurred.  Thereafter, the Escrow Agent shall release
      from the Escrow Account to the Company any and all Escrowed Funds therein, together with all
      interest earned thereon, upon the written request from an officer of the General Partner of the Company as listed on the incumbency
      certificate provided to the Escrow
      Agent by the Company.

            

    

    

    
      	
              (b)  

            	
              If
      the Escrowed Funds do not, on or
      prior to the Closing Date, become deliverable to the Company pursuant to subparagraph (a) above,
      the Escrow Agent shall return the Escrowed Funds to the respective subscribers
      in amounts equal to the subscription amount theretofore paid by each of
      them, together with interest calculated as described in paragraph 6 below and without deduction,
      penalty or expense to the subscriber.  The Escrow Agent shall
      notify the Company of any such return
      of subscription
      amounts.  The purchase
      money returned to each subscriber shall be free and clear of any
      and all claims of the Company or any
      of its creditors.

            

    

    

    
      	
              6.  

            	
              Distribution of
      Interest.  If the Escrowed Funds become deliverable to
      subscribers pursuant to Paragraph 5(b) above, the Escrow Agent shall
      compute and distribute to each investor a pro rata share of the investment
      earnings of the Escrowed Funds.  Each subscriber’s pro rata share of investment earnings
      shall be computed as follows:

            

    

    

    Individual Subscription Amount  x  days
held

                        Investment
Earnings   x     Total subscription amounts  x  days
held

    

    Such pro
rata share of investment earnings shall be distributed to each subscriber with
the return of their subscription
amounts.

    

    
      	
              7.  

            	
              Liability of Escrow
      Agent.

            

    

    

    
      	
              (a)  

            	
              In
      performing any of its duties under this Agreement, or upon the claimed
      failure to perform its duties hereunder, the Escrow Agent shall not be
      liable to anyone for any damages, losses, or expenses which it may incur
      as a result of the Escrow Agent so acting, or failing to act; provided,
      however, the Escrow Agent shall be liable for damages arising out of its
      willful default or misconduct or its gross negligence under this
      Agreement.  Accordingly, the Escrow Agent shall not incur any
      such liability with respect to (i) any action taken or omitted to be taken
      in good faith upon advice of its counsel or counsel for the Company which is given with respect to any
      questions relating to the duties and responsibilities of the Escrow Agent
      hereunder, or (ii) any action taken or omitted to be taken in reliance
      upon any document, including any written notice or instructions provided
      for in this Escrow Agreement, not only as to its due execution and to the
      validity and effectiveness of its provisions but also as to the truth and
      accuracy of any information contained therein, if the Escrow Agent shall
      in good faith believe such document to be genuine, to have been signed or
      presented by a proper person or persons, and to conform with the provisions of
      this Agreement.

            

    

    

    
      	
              (b)  

            	
              The
      Company hereby agrees to indemnify
      and hold harmless the Escrow Agent against any and all losses, claims,
      damages, liabilities and expenses, including, without limitation,
      reasonable costs of investigation and counsel fees and disbursements which
      may be incurred by it resulting from any act or omission of the Company; provided, however, that the Company shall not indemnify the Escrow
      Agent for any losses, claims, damages, or expenses arising out of the
      Escrow Agent’s willful default,
      misconduct, or gross negligence under
      this Agreement.

            

    

    

    
      	
              (c)  

            	
              If
      a dispute ensues between any of the parties hereto which, in the opinion
      of the Escrow Agent, is sufficient to justify its doing so, the Escrow
      Agent shall be entitled to tender into the registry or custody of any
      court of competent jurisdiction, including the Circuit Court of Orange
      County, Florida, all money or property in its hands under the terms of
      this Agreement, and to file such legal proceedings as it deems
      appropriate, and shall thereupon be discharged from all further duties
      under this Agreement.  Any such legal action may be brought in
      any such court as the Escrow Agent shall determine to have jurisdiction
      thereof.  The Company shall
      indemnify the Escrow Agent against its reasonable court costs and
      attorneys’ fees incurred in filing such legal
  proceedings.

            

    

    

    
      	
              8.  

            	
              Inability to
      Deliver.  In the event that Payments for subscriptions delivered to the
      Escrow Agent by the Company pursuant
      to this Agreement are not cleared through normal banking channels within 5
      days after such delivery, the Escrow Agent shall deliver such uncleared
      Payments to the Company, unless the Escrowed Funds are returned to subscribers
      pursuant to Paragraph 5(b) above, in which case the Escrow Agent shall be
      reimbursed by the Company for the amount of all uncleared
      payments.

            

    

    

    
      	
              9.  

            	
              Notice.  All
      notices, requests, demands and other communications or deliveries required
      or permitted to be given hereunder shall be in writing and shall be deemed
      to have been duly given if delivered personally, given by facsimile confirmed by telephone call or deposited for mailing,
      first class, postage prepaid, registered or certified mail, as
      follows:

            

    

    

    

    

    
      	 
      	
              If
      to the subscriber for Units:

            
	 
      	
              To
      their respective addresses as

            
	 
      	
              Specified
      in their Subscribtion Apreements.

            
	 
      	 
      
	 
      	
              If
      to the Company:

            
	 
      	 
      
	 
      	
              Commonwealth
      Capital Corp.

            
	 
      	
              Attn:
      Investor Services Manager

            
	 
      	
              400
      Cleveland Street, 7th
      Floor

            
	 
      	
              Clearwater,
      FL 33755

            
	 
      	
              Ph:
      877-654-1500

            
	 
      	
              Fax:
      727-942-0406

            
	 
      	 
      
	 
      	
              If
      to the Escrow Agent:

            
	 
      	
              223
      West Nash Street

            
	 
      	
              Wilson,
      NC 27893

            
	 
      	
              Attention:
      Corporate Trust Services

            

    

    

    
      	
              10.  

            	
              Fees to Escrow
      Agent.  In consideration of the services to be provided
      by the Escrow Agent hereunder, the Company agrees to pay the fees to the
      Escrow Agent as outlined in ATTACHMENT
      (I).

            

    

    

    
      	
              11.  

            	
              General.

            

    

    

    
      	
              (a)  

            	
              This
      Agreement shall be interpreted,
      construed and enforced in all respects in
      accordance with the laws of the Commonwealth of
      Pennsylvania applicable to contracts to
      be made and performed entirely in said
  state.

            

    

    

    
      	
              (b)  

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

            

    

    

    
      	
              (c)  

            	
              This
      Agreement sets forth the entire agreement and understanding of the parties
      with regard to this escrow transaction and supersedes all prior
      agreements, arrangements and understandings relating to the subject matter
      hereof.

            

    

    

    
      	
              (d)  

            	
              This
      Agreement may be amended, modified, superseded or cancelled, and any of
      the terms or conditions hereof may be waived, only by a written instrument
      executed by each party hereto or, in the case of a waiver, by the party
      waiving compliance.  The failure of any party at any time or
      times to require performance of any provision hereof shall in no manner
      affect the right at a later time to enforce the same.  No waiver
      in any one or more instances by any party of any condition, or of the
      breach of any term contained in this Agreement, whether by conduct or
      otherwise, shall be deemed to be, or construed as, a further or continuing
      waiver of any such condition or breach, or a waiver of any other condition
      or of the breach of any other terms of this
  Agreement.

            

    

    

    
      	
              (e)  

            	
              This
      Agreement may be executed simultaneously in two or more counterparts, each
      of which shall be deemed an original, but all of which together shall
      constitute one and the same
instrument.

            

    

    

    
      	
              (f)  

            	
              This
      Agreement shall inure to the benefit of the parties hereto and their
      respective administrators, successors, and
  assigns.

            

    

    

    
      	
              12.  

            	
              Representation of the
      Company.  The
      Company hereby acknowledges that the
      status of the Escrow Agent with respect to the offering of the Units is that of agent only for the limited
      purposes herein set forth, and hereby agrees it will not represent or
      imply that the Escrow Agent, by serving as the Escrow Agent hereunder or
      otherwise, has investigated the desirability or advisability of an
      investment in the Units, or has
      approved, endorsed or passed upon the merits of the Units, nor shall the Company use the name of the Escrow Agent in
      any manner whatsoever in connection with the offer or sale of the Units, other than by acknowledgement that
      it has agreed to serve as Escrow Agent for the limited purposes herein set
      forth.

            

    

    

    
      	
              13.  

            	
              Resignation of Escrow
      Agent.  If, at any time, any attempt is made to modify this Agreement in a manner that
      would increase the duties and responsibilities of the Escrow Agent, or to
      modify the Escrow Agreement in any manner that the Escrow Agent shall deem
      undesirable, the Escrow Agent may resign by notifying the
      Company.  Such resignation shall become effective on the earlier
      to occur of (i) the acceptance by a successor Escrow Agent or (ii) sixty
      (60) days following the date upon which notice was
      mailed.  Until such time as the Escrow Agent has resigned in
      accordance herewith, the Escrow Agent shall perform its duties hereunder
      in accordance with the terms of this Escrow
    Agreement.

            

    

    

    
      	
              14.  

            	
              Force
      Majure.  The Escrow Agent
      shall not be responsible for any failure or delay in the performance of
      its obligations under this Agreement arising out of or caused, directly or
      indirectly, by circumstances beyond its reasonable control, including
      without limitation, acts of God, earthquakes, fires, floods, wars, civil
      or military disturbances, sabotage, epidemics, riots, interruptions, loss
      or malfunctions of utilities, computer (hardware or software) or
      communication service, accidents, labor disputes, acts of civil or
      military authority, or governmental
  actions.

            

    

    
 

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          IN
      WITNESS WHEREOF, the parties have duly executed this Agreement as of the
      date first above written.

                                        
	 
      	 
      
	 
      	
                                          “Company”

                                        
	 
      	 
      
	 
      	
                                          Commonwealth
      Income & Growth Fund VII, LP

                                        
	 
      	 
      
	 
      	
                                          By:
      Commonwealth Income & Growth Fund, Inc., its General
      PArtner

                                        
	 
      	 
      
	 
      	 
      	
                                          By: /s/ Kimberly A.
      Springsteen-Abbott

                                        
	 	 	 Name:
      Kimberly A. Springsteen-Abbott
	 
      	 	
                                          Title: CEO

                                        
	 
      	 
      
	 
      	
                                          “Excrow
      Agent”

                                        
	 
      	 
      
	 
      	
                                          BRANCH
      BANKING AND TRUST COMPANY

                                        
	 
      	 
      
	 	 By: /s/ Ryan J.
  Sladek
	 	 Name:
      Ryan J. Sladek
	 	 Title: Vice PresidentExhibit 10.4

 

ISLE OF CAPRI CASINOS, INC.

DEFERRED BONUS PLAN

Code Section 409A Compliance Amendment

 

Whereas, Isle of Capri
Casinos, Inc.,  a corporation organized and
existing under the laws of the State of Delaware (the “Company”), maintains the
Deferred Bonus Plan, which plan was first established as of April 26,
1998, and subsequently amended from time to time (the “Plan”);

 

Whereas, such Plan now
constitutes a “deferred compensation” arrangement within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended, and must be amended to comply
with the final regulations promulgated thereunder;

 

Now, Therefore, the Plan shall
be amended as follows, such amendment to be effective as of January 1, 2009, or at the earlier time or times set forth below.

 

1.                                      Bonus Deferrals and Payments:

 

Section 2
of the Plan shall be amended and restated in its entirety as follows:

 

“2.                                 The Deferred Bonus:

 

(a)                                  No portion of
any Cash Bonus shall be subject to deferral hereunder.

 

(b)                                 Any Cash Bonus
previously deferred hereunder (a “Deferred Bonus”) shall be paid in the form of
a single-sum upon the earlier of:

 

i.                                          An Eligible
Employee’s death or Disability;

 

ii.                                       The fifth
anniversary of the last day of the Company’s fiscal year immediately preceding
the Bonus Award Date; or

 

iii.            The occurrence
of an Extraordinary Transaction, provided that if such transaction does not
also constitute a “change in control” within the meaning of Code Section 409A
and the regulations promulgated hereunder, payment shall be made upon the
earlier of (x) the occurrence of a Separation From Service in connection
with such transaction or during the 24-month period thereafter, or (y) as
otherwise provided herein.

 

(c)                                  Notwithstanding
the generality of the foregoing, effective for any payment made on or after January 1,  2005, if an
Eligible Employee is a Specified Employee as of his or her Separation Date, the
commencement of any payment made on account of his or her Separation From
Service, as determined in accordance with Code Section 409A, shall be
delayed until the first business day of the seventh whole calendar month
following his or her Separation Date. In the event of any delay required
hereunder, payment shall be made without liability for interest or loss of
investment opportunity thereon.”

 

2.                                      Compliance Definitions:

 

Notwithstanding any
provision of the Plan to the contrary, the following Section 16 shall be added
to the Plan to read in its entirety as follows, effective as of January 1,
2005:

 

 

“16.                           Compliance
Definitions.  Capitalized
terms used herein shall have the meanings ascribed to them below; in the event
of a conflict between a definition included herein and the same or a similar
term defined elsewhere in the Plan, the terms of this Section 16 shall
govern.

 

(a)                                  The term “Disability”  shall mean that
an Eligible Employee, by reason of a medically determinable physical or mental
impairment that can be expected to result in death or last for a continuous
period of not less than 12 months, (i) has been receiving income replacement
benefits for a period of not less than three months under a separate long-term
disability plan or policy maintained by the Company or an Affiliate, or (ii) is
unable to engage in any substantial gainful employment.

 

(b)                                 The term “Specified
Employee” shall be determined in accordance with Code Section 409A
and shall generally mean that an Eligible Employee is a ‘key employee’ of the
Company or an Affiliate within the meaning of Code Section 416(i), (ii) or (iii), but
determined without regard to paragraph (i)(5) thereof, as of his or her
Separation Date. An Eligible Employee who satisfies such requirement as of a December 31st
shall be considered a Specified Employee hereunder during the 12-month period
commencing on the immediately following April lst.

 

(c)                                  The term “Separation
Date”  or  “Separation From Service”
shall mean the later of the date on which (a) an Eligible
Employee’s employment with the Company and its affiliates ceases, or (b) the
Company and such Eligible Employee reasonably anticipate that the Eligible
Employee will perform no further services for the Company and its affiliates,
whether as a common law employee or independent contractor. Notwithstanding the
foregoing, an Eligible Employee may be deemed to incur a Separation Date if he
or she continues to provide services to the Company or an affiliate, provided
such services are not more than 20% of the average level of services performed
by such Eligible Employee, whether as an employee or independent contractor,
during the immediately preceding 36-month period.”

 

This 409 Compliance Amendment  was adopted this 22nd day of December, 2008, to be effective as of
the date or dates set forth herein.

 

	
   

  	
  Isle of Capri Casinos, Inc.:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  R. Ronald Burgess 

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  SVP,
  Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  12/22/08

  

 

2

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