Document:

Exhibit 10.3 Escrow Agreement

EXHIBIT 10.3

ESCROW AGREEMENT

This Escrow Agreement is made as of the 24th day of August, 2012, by and among Therapeutic Solutions International, Inc., a Nevada corporation (“TSOI”), James P. Boyd (“Boyd”) and Chicago Title Company, as escrow agent (the “Escrow Agent”).  This Agreement is irrevocable.  It is designed and intended to implement certain provisions of the Master Dispute Resolution Agreement of even date herewith among TSOI, Boyd and others.

1.

Boyd herewith hands to the Escrow Agent (or causes to be handed to the Escrow Agent on his behalf), in escrow, TSOI common stock certificates NS1-1044 and NS1-1058, duly endorsed in blank by Boyd (or accompanied by stock powers duly executed in blank by Boyd), with signatures guaranteed with Medallion stamp by a commercial bank or by a member firm of the New York Stock Exchange (all together, the “Certificates”).  TSOI and Boyd each hereby designate and appoint the Escrow Agent to serve as the Escrow Agent, and the Escrow Agent accepts the appointment to act as the Escrow Agent, in accordance with the terms and conditions of this Agreement. 

2.

The Escrow Agent agrees to accept said Certificates in escrow.

3.

Upon the satisfaction of all of the seven conditions set forth below, the Escrow Agent shall forthwith deliver the Certificates to TSOI:

(a)  On or before August 31, 2012, TSOI shall have delivered $46,000 to the Escrow Agent in respect of the Estimated Minimum Royalties for Net Sales of July 2012.

(b)  On or before October 1, 2012, TSOI shall have delivered $53,000 to the Escrow Agent in respect of the Estimated Minimum Royalties for Net Sales of August 2012.

(c)  On or before October 31, 2012, TSOI shall have delivered $48,000 to the Escrow Agent in respect of the Estimated Minimum Royalties for Net Sales of September 2012.

(d)  On or before December 1, 2012, TSOI shall have delivered $53,000 to the Escrow Agent in respect of the Estimated Minimum Royalties for Net Sales of October 2012.

(e)  On or before December 31, 2012, TSOI shall have delivered $48,000 to the Escrow Agent in respect of the Estimated Minimum Royalties for Net Sales of November 2012.

(f)  On or before January 18, 2013, TSOI shall have delivered $53,000 to the Escrow Agent in respect of the Estimated Minimum Royalties for Net Sales of December 2012.

(g)  On or before January 4, 2013, TSOI shall have paid (and/or delivered to the Escrow Agent for the account of Boyd) a total of $50,000 in partial reimbursement of attorneys’ fees incurred, pursuant to Section 20 of a Master Dispute Resolution Agreement among TSOI, Boyd and others, and (in the case of payments toward such $50,000 made other than directly to escrow) shall provide to escrow proof of such payments in the form of cancelled checks or bank statements demonstrating ACH transfer or successful wire transmissions of funds.

It is expressly agreed that the foregoing seven conditions are the sole and only preconditions for the delivery of the Certificates to TSOI. Moreover, it is expressly agreed that allegations by any party of contract breaches or other wrongs (other than complete performance of the seven conditions set forth above) shall be of no concern to the Escrow Agent and shall have no effect whatever on this Agreement and the Escrow Agent’s obligation to timely deliver the Certificates hereunder.

If any of the foregoing seven conditions is not satisfied, the Escrow Agent shall forthwith deliver the Certificates to Boyd.

TSOI agrees to (in the case of payments under Section 3(g) made other than directly to escrow) provide by email to tim@tprglaw.com, copies of the same proof (as TSOI provides to escrow) of such payments in the form of cancelled checks or bank statements demonstrating ACH transfer or successful wire transmissions of funds, forthwith after TSOI provides such proof to escrow.

4.

As and when TSOI delivers to escrow each of the payments pursuant to Section 3(a)-(f) above and/or any payments pursuant to Section 3(g) above, the Escrow Agent shall within 24 hours remit the full amount of such payments to Boyd by ACH transfer to Boyd’s Wells Fargo Bank account as follows: Bank routing number: 121000248; Acct: 0923910038.

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5.

It is expressly agreed by Boyd and TSOI that if and when the Escrow Agent delivers the Certificates to TSOI as contemplated by Section 3, TSOI shall proceed forthwith to cancel all such shares (and/or claims with regard to share overissue) represented by the Certificates.

6.

(a)  The Escrow Agent shall be indemnified, jointly and severally, and saved harmless by Boyd and TSOI, from and against any and all liability, including all expenses reasonably incurred in its defense, to which the Escrow Agent shall be subject by reason of any action taken or omitted or any investment or disbursement of any part of the Escrow Account made by the Escrow Agent pursuant to this Escrow Agreement, except as a result of the Escrow Agent’s own negligence or misconduct.  The costs and expenses of enforcing this right of indemnification shall also be paid by TSOI and Boyd.  This right of indemnification shall survive the termination of this Escrow Agreement and the removal or resignation of the Escrow Agent.

(b)

The Escrow Agent undertakes to perform such duties as are specifically set forth in this Escrow Agreement, and the Escrow Agent shall not be liable except for the performance of such duties as are specifically set forth in this Escrow Agreement and no implied covenants or obligations shall be read into this Escrow Agreement against the Escrow Agent.  The Escrow Agent shall be fully protected in acting in accordance with any written instructions given to it hereunder and believed by it to have been executed by the proper party or parties.  The Escrow Agent’s duties shall be determined only with reference to this Escrow Agreement and applicable laws and is not charged with any duties or responsibilities in connection with any other documents or agreements.  

(c)

As set forth above in Section 3, if any one of the 7 conditions in Section 3 are not fully satisfied, the Escrow Agent must promptly return all of the Certificates to Boyd regardless of arguments to the contrary between the parties.  Further, it is understood and agreed that in the event of any other disagreement between Boyd and TSOI or in the event the Escrow Agent in good faith is in doubt as to what action it should take hereunder, the matter shall be resolved by final and binding arbitration in accordance with Section 13 below.  In such an event, the Escrow Agent shall retain the Certificates until the Escrow Agent shall have received (i) a Judicate West arbitration award directing delivery of the Certificates or (ii) a written agreement executed by the parties hereto (other than the Escrow Agent) directing delivery of the Certificates, in which event Escrow Agent shall disburse the Certificates in accordance with such arbitration award or agreement.  

(d)

The Escrow Agent may resign at any time by giving written notice thereof to the other parties hereto, but such resignation shall not become effective until a successor Escrow Agent shall have been appointed and shall have accepted such appointment in writing.  If an instrument of acceptance by a successor Escrow Agent shall not have been delivered to the Escrow Agent within 30 days after the giving of such notice of resignation, the resigning Escrow Agent may, at the expense of Boyd, petition any court of competent jurisdiction for the appointment of a successor Escrow Agent.  Subject to Section 6(c) hereof, if any property subject hereto is at any time attached, garnished or levied upon, under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property, or any part thereof, then in any of such events, the Escrow Agent is authorized, in its sole discretion, to rely upon and comply with any such order, writ judgment or decree, which it is advised by legal counsel (of its own choosing) is binding upon it, and if it complies with any such order, writ, judgment or decree, it shall not be liable to any of the parties hereto or to any other person, firm, or corporation by reason of such compliance, even though such order, writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated.

(e)

In no event shall the Escrow Agent be liable to any party hereto for any special, indirect or consequential loss or damage of any kind whatsoever hereunder, even if the Escrow Agent has been previously advised of such loss or damage.

7.

All deliveries, notices, requests or other communications to a party under this Agreement shall be in writing, and shall be sent to the party at the address set forth below in this Section (or such other address as he/it shall designate by written notice given to the other parties pursuant to this Section), and shall be deemed to have been duly given on the earliest of the date actually received, the same day if sent by email, the business day following dispatch if sent by hand courier or overnight air courier service with next day delivery, or three days after mailing if sent by first class, registered or certified mail, return receipt requested; provided, that each party may change its address for notice, by written notice given pursuant to this Section.

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If to Boyd:

7060 Via del Charro [to be used only for notices and deliveries sent by hand courier or overnight air courier service]

P.O. Box 2145 [to be used only for notices and deliveries sent by first class, registered or certified mail]

Rancho Santa Fe, California 92067-2145

Email: jimboyddds@gmail.com

with copy to:

 

Timothy R. Pestotnik

Pestotnik + Gold LLP

501 West Broadway Suite 1850

San Diego, CA  92101

Email:  tim@tprglaw.com

If to TSOI: 

4093 Oceanside Blvd., Suite B 

Oceanside, California 92056

Attn:  President

Email:  timdixon@therapeuticsolutionsint.com

If to the Escrow Agent: 

Chicago Title Company 

701 B Street, Suite 760

Attn:  Della Ducharme

Email:  Della.DuCharme@ctt.com

The wire transfer information for wiring funds to the Escrow Agent is: 

Union Bank

1980 Saturn Street

Monterey Park, California  91755

ABA:  122 000 496

Credit to Chicago Title C & I Escrow

San Diego Account No.  91002-67494

Credit Escrow No.  930018286-U42

Della DuCharme, ESCROW OFFICER

8.

If any provision of this Escrow Agreement or the application thereof to any person or circumstances shall be determined to be invalid or unenforceable, the remaining provisions of this Escrow Agreement or the application of such provision to persons or 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.

9.

This Escrow Agreement shall be construed in accordance with and governed by the laws of the State of California.

10.

This Escrow Agreement may be executed in several counterparts or by separate instruments and all of such counterparts and instruments shall constitute one agreement, binding on all the parties hereto.

11.

TSOI and Boyd shall each pay 50% of all fees and costs incurred by or charged by Escrow Agent hereunder.

12.

The Escrow Agent shall have no security interest in the Certificates. 

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13.

Any matter for which arbitration is indicated by Section 6(c) above shall be exclusively and finally resolved by binding arbitration in San Diego, California in accordance with the commercial arbitration rules of Judicate West then in effect, by a single arbitrator appointed in accordance with such rules; provided, that each party shall have only 7 days to strike names from the list of potential arbitrators provided by Judicate West.  Such arbitrator shall be directed to commence the arbitration hearing within 60 days after arbitration is filed, and the arbitrator shall impose limited discovery procedures and hearing schedules consistent with such objective.  The ruling of the arbitrator shall be final and binding on all parties.  The costs of the arbitration forum shall initially be borne 1⁄2 by Boyd and 1⁄2 by TSOI, subject to shifting based on the outcome of the arbitration.  It shall be mandatory for the arbitrator to designate either Boyd or TSOI (but not both) as the “prevailing party” and it shall further be mandatory for the arbitrator to award to such “prevailing party,” in addition to all other appropriate relief, 100% of such “prevailing party”’s costs of the arbitration forum and 100% of such “prevailing party”’s reasonable attorneys fees, costs and expenses.  The arbitrator’s award may be entered as a judgment in any court having competent jurisdiction including but not limited to the San Diego County Superior Court, to which each party hereto submits to personal jurisdiction.

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

Therapeutic Solutions International, Inc.:

By /s/Tim G. Dixon                                                            

James P. Boyd

/s/ James P. Boyd                                                               

Chicago Title Company:

By /s/ Joyce Karmazin                                                        

4Exhibit 10.4 Voting Agreement

EXHIBIT 10.4

VOTING AGREEMENT

This VOTING AGREEMENT (this “Agreement”), is made and entered into on and as of August 24, 2012, by and between Therapeutic Solutions International, Inc., a Nevada corporation (“TSOI”), and James P. Boyd (“Stockholder”). 

RECITALS

A.

Concurrently with the execution of this Agreement, TSOI, Stockholder and/or certain other parties are entering into a Master Dispute Resolution Agreement, an Escrow Agreement (“Escrow Agreement”), and a License Agreement (collectively, the “Related Agreements”). Capitalized terms used but not defined herein shall have the meanings given to them in the Related Agreements. 

B.

As of the date hereof, Stockholder is the owner of shares of TSOI common stock represented, or ostensibly represented, by TSOI common stock certificates NS1-1044 and NS1-1058 (all such shares, the “Shares”). 

C.

As a material inducement to TSOI to enter into the Related Agreements, TSOI desires Stockholder to agree, and Stockholder is willing to agree, to vote the Shares as specified herein. 

AGREEMENT

In consideration of the foregoing and the representations, warranties, covenants and agreements set forth in this Agreement, the parties agree as follows: 

1. 

Voting of Shares. 

1.1 

Agreement to Vote Shares. Stockholder hereby covenants and agrees that during the period commencing on the date hereof and continuing until February 1, 2013, at any meeting (whether annual or special and whether or not an adjourned or postponed meeting) of the stockholders of TSOI, however called, and in any action by written consent of the stockholders of TSOI, Stockholder shall appear at the meeting or otherwise cause any and all Shares to be counted as present thereat for purposes of establishing a quorum and vote (or cause to be voted) any and all Shares: (i) in favor of any proposal which is hereafter approved by TSOI’s Board of Directors, to amend TSOI’s articles of incorporation solely to change the number of authorized shares of common stock of TSOI to any number of shares which is designated in such proposal and which is at least 100,000,000; and (ii) to abstain as to any and all other proposals of any kind and on any subject whatsoever. 

1.2 

Irrevocable Proxy. Concurrently with the execution of this Agreement, Stockholder agrees to deliver to TSOI a proxy in the form attached hereto as Exhibit A (the “Proxy”), which shall be irrevocable, with respect to the Shares, subject to the other terms of this Agreement. 

2. 

Transfer and Other Restrictions. Stockholder represents, covenants and agrees that, except for the proxy granted in Section 1.2 hereof and as contemplated by this Agreement: (i) Stockholder shall not, directly or indirectly, during the period commencing on the date hereof and continuing until February 1, 2013, offer for sale or agree to sell, transfer, tender, assign, pledge, hypothecate or otherwise dispose of or enter into any contract, option or other arrangement or understanding with respect to, or consent to, the offer for sale, sale, transfer, tender, pledge, hypothecation, encumbrance, assignment or other disposition of, or create any encumbrance of any nature whatsoever with respect to, any or all of the Shares or any interest therein; (ii) Stockholder shall not grant any proxy or power of attorney, or deposit any Shares into a voting trust or enter into a voting agreement or other arrangement, with respect to the voting of Shares (each a “Voting Proxy”) except as provided by this Agreement; and (iii) Stockholder has not granted, entered into or otherwise created any Voting Proxy which is currently (or which will hereafter become) effective, and if any Voting Proxy has been created, such Voting Proxy is hereby revoked. Notwithstanding the foregoing, and for avoidance of doubt, Stockholder is not restricted by this Agreement from transferring or otherwise disposing of any shares of common stock of TSOI, other than the Shares.

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3. 

Representations and Warranties of Stockholder. Stockholder represents and warrants to TSOI that: 

3.1 

Non-Contravention. The execution, delivery and performance of this Agreement does not, and the consummation of the transactions contemplated hereby and compliance with the provisions hereof will not, violate any agreement to which Stockholder is a party. .

3.2 

Litigation. To the knowledge of Stockholder there is no action pending or threatened with respect to his ownership of the Shares, nor to the knowledge of Stockholder is there any judgment, decree, injunction or order of any applicable governmental entity or arbitrator outstanding which would prevent the carrying out by Stockholder of his obligations under this Agreement or any of the transactions contemplated hereby, declare unlawful the transactions contemplated hereby or cause such transactions to be rescinded. 

3.3 

Title. The Shares are free and clear of any encumbrances that, individually or in the aggregate, would impair the ability of Stockholder to perform Stockholder’s obligations hereunder or prevent, limit or restrict in any respect the consummation of any of the transactions contemplated hereby. 

3.4 

Power. Stockholder has sole voting power and sole power to issue instructions with respect to the matters set forth in Section 1 and Section 2 hereof and sole power to agree to all of the matters set forth in this Agreement, in each case with respect to all of the Shares, with no limitations, qualifications or restrictions on such rights. 

4. 

Representations and Warranties of TSOI. TSOI represents and warrants to Stockholder that: 

4.1 

Non-Contravention. The execution, delivery and performance of this Agreement does not, and the consummation of the transactions contemplated hereby and compliance with the provisions hereof will not, violate any agreement to which TSOI is a party. 

4.2 

Litigation. To the knowledge of TSOI there is no action pending or threatened with respect to Stockholder’s ownership of the Shares, nor to the knowledge of TSOI is there any judgment, decree, injunction or order of any applicable governmental entity or arbitrator outstanding which would prevent the carrying out by Stockholder of his obligations under this Agreement or any of the transactions contemplated hereby, declare unlawful the transactions contemplated hereby or cause such transactions to be rescinded.

5. 

Further Assurances. Subject to the terms of this Agreement, from time to time, Stockholder shall execute and deliver such additional documents and use commercially reasonable efforts to take, or cause to be taken, all such further actions, and to do or cause to be done, all things reasonably necessary, proper or advisable under applicable laws and regulations to consummate and make effective the transactions contemplated by this Agreement. 

6. 

Miscellaneous. .

6.1 

Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

6.2 

Amendments and Modification. This Agreement may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement executed by the parties hereto. 

6.3 

Specific Performance; Injunctive Relief; Attorneys Fees. The parties hereto acknowledge that TSOI may be irreparably harmed and that there will be no adequate remedy at law for a violation of any of the covenants or agreements of Stockholder set forth herein. Therefore, it is agreed that, in addition to any other remedies that may be available to TSOI upon any such violation, TSOI shall have the right to enforce such covenants and agreements by specific performance, injunctive relief or by any other means available to TSOI at law or in equity and Stockholder hereby irrevocably and unconditionally waives any objection to TSOI seeking so to enforce such covenants and agreements by specific performance, injunctive relief and other means. If any action, suit or other proceeding (whether at law, in equity or otherwise) is instituted concerning or arising out of this Agreement or any transaction contemplated hereunder, the prevailing party shall recover, in addition to any other remedy granted to such party therein, all such party’s costs and attorneys fees incurred in connection with the prosecution or defense of such action, suit or other proceeding. 

6.4 

Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. 

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6.5

 Entire Agreement. The Related Agreements, this Agreement and the Proxy granted hereunder constitute and contain the entire agreement and understanding of the parties with respect to the subject matter hereof and supersede any and all prior negotiations, correspondence, agreements, understandings, duties or obligations between the parties respecting the subject matter hereof. 

6.6

 Extension of Date. In the event that TSOI has satisfied all seven of the conditions set forth in Section 3 of the Escrow Agreement but, nonetheless, as a result of an objection, claim or demand presented by Stockholder or any Affiliate of Stockholder (or any lawyer for Stockholder or any Affiliate of Stockholder), the Escrow Agent has not by January 28, 2013 delivered the Shares pursuant to the Escrow Agreement to either TSOI or Stockholder (i.e., neither TSOI nor Stockholder receives the Shares from the Escrow Agent), then all references herein to “February 1, 2013”shall be deemed to refer instead to the 5th day after the Escrow Agent delivers the Shares pursuant to the Escrow Agreement either to TSOI or to Stockholder. 

6.7

No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in TSOI any direct or indirect ownership or incidence of ownership of or with respect to the Shares. 

IN WITNESS WHEREOF, the parties hereto have caused this Voting Agreement to be executed as of the date first above written. 

		
	 
	 

	THERAPEUTIC SOLUTIONS INTERNATIONAL, INC.

	 

	

	 

	By: /s/ Tim G. Dixon                                      

	/s/ James P. Boyd                                                   

	Title: President                                               

	JAMES P. BOYD

	 
	 

	 
	 

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EXHIBIT A

IRREVOCABLE PROXY

The undersigned stockholder (“Stockholder”) of Therapeutic Solutions International, Inc, a Nevada corporation (“TSOI”), hereby irrevocably appoints and constitutes the Chief Financial Officer of TSOI (the “Proxyholder”), the agent, attorney-in-fact and proxy of the undersigned, with full power of substitution and resubstitution, to the extent of the undersigned’s rights with respect to all shares of TSOI common stock represented, or ostensibly represented, by TSOI common stock certificates NS1-1044 and NS1-1058, (the “Shares” as defined in that certain Voting Agreement of even date herewith between TSOI and Stockholder (the “Voting Agreement”), to vote and only to vote the Shares as follows: the Proxyholder named above is empowered at any time before termination of this proxy to exercise all voting and other rights (including, without limitation, the power to execute and deliver written consents with respect to the Shares) of the undersigned at every annual, special or adjourned meeting of TSOI’s stockholders, and in every written consent in lieu of any such meeting, or otherwise, (i) in favor of any proposal which is hereafter approved by TSOI’s Board of Directors, to amend TSOI’s articles of incorporation solely to change the number of authorized shares of common stock of TSOI to any number of shares which is designated in such proposal and which is at least 100,000,000; and (ii) to abstain as to any and all other proposals of any kind and on any subject whatsoever. 

The proxy granted by Stockholder to the Proxyholder hereby is granted as of the date of this Irrevocable Proxy in order to secure the obligations of Stockholder set forth in Section 1.1 of the Voting Agreement, and is irrevocable in accordance with subsection (5) of Section 355 of Chapter 78 of the Nevada Revised Statutes. 

Upon the execution hereof, all prior proxies given by the undersigned with respect to the Shares are hereby revoked and no subsequent proxies will be given until such time as this proxy shall be terminated in accordance with its terms. Any obligation of the undersigned hereunder shall be binding upon the successors and assigns of the undersigned. The undersigned Stockholder authorizes the Proxyholder to file this proxy and any substitution or revocation of substitution with the Secretary of TSOI and with any Inspector of Elections at any meeting of the stockholders of TSOI.

This proxy shall terminate on February 1, 2013, unless the date references to “February 1, 2013” in the Voting Agreement have, by operation of Section 6.6 of the Voting Agreement, been changed, in which case this proxy shall terminate on the date to which such date references in the Voting Agreement have, by operation of Section 6.6 of the Voting Agreement, been so changed.

This proxy is irrevocable and shall survive the insolvency, incapacity, death, liquidation or dissolution of the undersigned. 

		
	 
	 

	Dated:  August 24, 2012

	 

	 
	JAMES P. BOYD

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