Document:

ex4_7.htm

    
      

    

    
      Exhibit
4.7

      

      STOCK
PLEDGE AGREEMENT

      

      

      STOCK
PLEDGE AGREEMENT (this "Agreement"), dated July 15, 2008 made by Lou Wood,
Pamela Jo Ross Wood, Louis Alfred Wood III and Nancy Seale in favor of La Jolla
Cove Investors, Inc., a California corporation (the "Pledgee").  Each
of Lou Wood, Pamela Jo Ross Wood, Louis Alfred Wood III and Nancy Seale may be
referred to herein individually as a "Pledgor," and collectively as the
"Pledgors."

      

      W
I T N E S S E T H:

      

      WHEREAS,
pursuant to the provisions of that certain Securities Purchase Agreement of even
date herewith between Espre Solutions, Inc. (the "Company") and the Pledgee (the
"Purchase Agreement"), the Pledgee has agreed to lend to the Company and the
Company has agreed to borrow from the Pledgee an aggregate of $2,000,000,
$250,000 of which shall be advanced in cash as of the date of the closing of the
Purchase Agreement (the "Cash Advance") under certain terms and conditions set
forth in the Purchase Agreement and as further set forth in the Debenture (as
defined in the Purchase Agreement);

      

      WHEREAS,
pursuant to the provisions of the Purchase Agreement, and as a condition to the
obligation of the Pledgee to lend thereunder, each Pledgor has agreed to make
the pledge contemplated by this Agreement in order to induce the Pledgee to
perform its obligations under the Purchase Agreement;

      

      WHEREAS,
each Pledgor is a shareholder of the Company, and as such, will derive direct
and indirect benefits from the Purchase Agreement; and

      

      WHEREAS,
all capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Purchase Agreement.

      

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

      

      SECTION
1.

      

      1.1           Pledge and Security
Interest.  Each Pledgor hereby pledges to the Pledgee, and
grants to the Pledgee a continuing security interest in, the following
(collectively, the "Pledged Collateral"):

      

      
        	
                 
      

              	
                (a)

              	
                An
      aggregate of Six Million (6,000,000) shares of common stock (the "Pledged
      Shares" or "Pledged Collateral") of the Company, in the aggregate, owned
      by the Pledgors, which shall, for the term of this agreement, be placed in
      the name of the Pledgee,  represented by the certificates
      identified in Schedule 1(a) annexed hereto representing the Pledged
      Shares, and all dividends, cash, instruments and other property from time
      to time received, receivable or otherwise distributed in respect of or in
      exchange for any or all of the Pledged Shares, provided however that
      Pledgee shall have no beneficial ownership interest (with beneficial
      ownership calculated in accordance with Section 13(d) of the Securities
      Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder) in the Pledged Shares unless and until an Event of
      Default (as defined below) has occurred and the Pledgee has elected to
      exercise the rights set forth in Section 13 of this Agreement;
      and

              

      

       

      
        	 
      	 
      	 
      
	
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                (b)

              	
                all
      proceeds of any and all of the foregoing Pledged Collateral, in whatever
      form (including, without limitation, proceeds that constitute property of
      the types described above).

              

      

      

      SECTION
2.   Security for
Obligations.  This Agreement secures the payment and
performance of the following obligations (collectively, the "Obligations"): all
present and future indebtedness, obligations, covenants, duties and liabilities
of any kind or nature of the Company to the Pledgee now existing or hereafter
arising under or in connection with this Agreement, the Purchase Agreement, the
Debenture, and any and all related agreements, documents and instruments, each
as now existing and as hereafter amended, modified and supplemented
(collectively, the "Transaction Documents"), provided however, that the
Obligations shall be limited at any given time to an amount not to exceed the
lesser of (i) the Cash Advance, or (ii) that portion of the Cash Advance that
has not been converted into the Company's Common Stock under the terms of the
Debenture and remains represented by the outstanding principal balance of the
Debenture.  THE PLEDGEE HEBERY EXPRESSLY CONFIRMS AND AGREES THAT
NOTWITHSTANDING THE PLEDGE OF THE PLEDGED SHARES, THE PLEDGEE SHALL HAVE NO
RECOURSE TO OR AGAINST ANY PLEDGOR FOR ANY OF THE COMPANY'S OBLIGATIONS TO THE
PLEDGOR, OTHER THAN AS TO THE PLEDGED SHARES, AS SET FORTH HEREIN, AND THAT NO
PLEDGOR SHALL BE PERSONALLY LIABLE TO THE PLEDGEE FOR OR ON ACCOUNT OF ANY
OBLIGATION OF THE COMPANY TO THE PLEDGEE, OTHER THAN AS TO THE PLEDGED SHARES,
AS SET FORTH HEREIN.

      

      SECTION
3.   Delivery of Pledged
Collateral.  Concurrently herewith, all certificates
representing or evidencing the Pledged Shares, in suitable form for transfer by
delivery, and in the name of the Pledgee are being deposited with and delivered
to the Pledgee represented by a stock certificate or certificates evidencing
6,000,000 shares of the Company's Common Stock (the aggregate of all such
certificates referred to herein as a "Pledged Shares Certificate").

      

      SECTION
4.   Representations and
Warranties.  Each Pledgor represents and warrants as
follows:

      

      
        	
                 
      

              	
                (a)

              	
                The
      Pledged Shares set forth opposite the Pledgor's name in Schedule 1(a)
      attached hereto have been beneficially owned by such Pledgor for at least
      twelve months prior to the date
hereof.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      Pledgor is the legal, record and beneficial owner of the Pledged
      Collateral represented opposite such Pledgor's name in Schedule 1(a)
      attached hereto, free and clear of any lien, security interest,
      restriction, option or other charge or encumbrance (each a "Lien", and
      collectively, "Liens") except for the security interest created by this
      Agreement.

              

      

       

      
        	 
      	 
      	 
      
	
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                (c)

              	
                The
      Pledgor has made necessary inquiries of the Company and believes that the
      Company fully intends to fulfill and has the capability of fulfilling
      Obligations to be performed by the Company in accordance with the terms of
      the Transaction Documents.

              

      

      

      
        	
                 
      

              	
                (d)

              	
                The
      Pledgor is not acting, and has not agreed to act, in any plan to sell or
      dispose of the Pledged Shares in a manner intended to circumvent the
      registration requirements of the Securities Act of 1933, as amended, or
      any applicable state law.

              

      

      

      
        	
                 
      

              	
                (e)

              	
                The
      Pledgor has been advised by counsel of the elements of a bona fide pledge
      for purposes of Rule 144(d)(3)(iv) under the Securities Act of 1933, as
      amended, including the relevant SEC interpretations and affirms the pledge
      of shares by such Pledgor pursuant to this Pledge Agreement will
      constitute a bona fide pledge of such shares for purposes of such
      Rule.

              

      

      

      
        	
                 
      

              	
                (f)

              	
                This
      Agreement constitutes a legal, valid and binding obligation of such
      Pledgor enforceable in accordance with its terms (except as the
      enforcement thereof may be limited by bankruptcy, insolvency, fraudulent
      conveyance, reorganization, moratorium, and similar laws, now or hereafter
      in effect).

              

      

      

      
        	
                 
      

              	
                (g)

              	
                The
      pledge of the Pledged Collateral pursuant to this Agreement creates a
      valid and perfected first priority security interest in the Pledged
      Collateral, securing payment and performance of the
      Obligations.

              

      

      

      
        	
                 
      

              	
                (h)

              	
                No
      consent of any other person or entity and no authorization, approval, or
      other action by, and no notice to or filing with, any governmental
      authority or regulatory body is required (i) for the pledge by the Pledgor
      of the Pledged Collateral pursuant to this Agreement or for the execution,
      delivery or performance of this Agreement by the Pledgor, (ii) for the
      perfection or maintenance of the security interest created hereby
      (including the first priority nature of such security interest), or (iii)
      for the exercise by the Pledgee of the voting or other rights provided for
      in this Agreement or the remedies in respect of the Pledged Collateral
      pursuant to this Agreement (except as may be required in connection with
      any disposition of any portion of the Pledged Collateral by laws affecting
      the offering and sale of securities
generally).

              

      

      

      
        	
                 
      

              	
                (i)

              	
                There
      are no conditions precedent to the effectiveness of this Agreement that
      have not been satisfied or waived.

              

      

      

      
        	
                 
      

              	
                (j)

              	
                The
      mailing address of the Pledgor is set forth in Section 17 of this
      Agreement and the Pledgor will not change its address except upon not less
      than thirty (30) days' prior written notice to the
  Pledgee.

              

      

      

      SECTION
5.   Further
Assurances.  Each Pledgor agrees that at any time and from time
to time, at the expense of such Pledgor, such Pledgor shall promptly execute and
deliver all further instruments and documents, and take all further action, that
may be necessary or desirable, or that the Pledgee may reasonably request, in
order to perfect and protect any security interest granted or purported to be
granted hereby or to enable Pledgee to exercise and enforce its rights and
remedies hereunder with respect to any Pledged Collateral.  The
Company and/or each Pledgor shall take all further action that may be necessary
or desirable, or that the Pledgee may reasonably request to assist in the
delivery to the Pledgee of any legal opinion(s) necessary for the Pledgee to
sell or otherwise dispose of the Pledged Collateral upon an Event of Default
(the "Legal Opinion Assistance").  In the event that any Pledgor
and/or the Company fail to provide the Legal Opinion Assistance, the Pledgee
shall have the right to seek legal remedy, including without limitation remedies
of specific performance and/or monetary damages, from such Pledgor and/or the
Company for the full amount of damages to the Pledgee resulting directly or
indirectly from such failure to provide the Legal Opinion Assistance, including
without limitation any damages to the Pledgee resulting from the inability of
the Pledgee to sell, dispose of, or transfer the Pledged Collateral due to the
failure of the Company and/or such Pledgor to provide the Legal Opinion
Assistance.

       

      
        	 
      	 
      	 
      
	
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      SECTION
6.    Voting Rights; Dividends;
Etc.

      

      
        	
                 
      

              	
                (a)

              	
                So
      long as:  (i) no Event of Default shall have occurred and been
      declared and (ii) the balance of the Debenture shall not have been
      accelerated:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                Each
      Pledgor shall be entitled to exercise or refrain from exercising any and
      all voting and other consensual rights pertaining to the Pledged
      Collateral or any part thereof for any purpose not inconsistent with the
      terms of this Agreement;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                Each
      Pledgor shall be entitled to receive and retain any and all cash dividends
      and interest paid in respect of the Pledged Collateral; provided, however,
      that any and all:

              

      

      

      
        	
                 
      

              	
                (A)

              	
                dividends
      and interest paid or payable other than in cash in respect of, and
      instruments and other property received, receivable or otherwise
      distributed in respect of, or in exchange for, any Pledged
      Collateral,

              

      

      

      
        	
                 
      

              	
                (B)

              	
                dividends
      and other distributions paid or payable in cash in respect of any Pledged
      Collateral in connection with a partial or total liquidation or
      dissolution or in connection with a reduction of capital, capital surplus
      or paid-in-surplus, and

              

      

      

      
        	
                 
      

              	
                (C)

              	
                cash
      paid, payable or otherwise distributed in respect of principal of, or in
      redemption of, or in exchange for, any Pledged
  Collateral,

              

      

      

      shall be,
and shall be forthwith delivered to the Pledgee to hold as Pledged Collateral,
and shall, if received by any Pledgor, be segregated from the other property or
funds of such Pledgor, and be forthwith delivered to the Pledgee as Pledged
Collateral in the same form as so received (with any necessary endorsement or
assignment).

       

      
        	 
      	 
      	 
      
	
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                (b)

              	
                After
      the occurrence of any Event of Default if within twenty four hours of
      delivery of written notice of such Event of Default (as hereinafter
      defined) from the Pledgee the Company has not paid all outstanding
      principal and accrued an unpaid interest and fees (including penalties)
      owed on the Debenture and any liquidated damages associated with such
      Event of Default, until the Debenture shall have been satisfied by
      conversion or payment in full:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                All
      rights of any and all Pledgors to exercise or refrain from exercising the
      voting and other consensual rights which it would otherwise be entitled to
      exercise pursuant to Section 6(a)(i) and to receive the dividends and
      interest payments which it would otherwise be authorized to receive and
      retain pursuant to Section 6(a)(ii) shall cease, and all such rights shall
      thereupon become vested in the Pledgee holding the applicable Pledged
      Collateral who shall thereupon have the sole right to exercise or refrain
      from exercising such voting and other consensual rights and to receive and
      hold as Pledged Collateral such dividends and interest
      payments.

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                All
      dividends and interest payments which are received by any Pledgor contrary
      to the provisions of paragraph (i) of this Section 6(b) shall be
      segregated from other funds of such Pledgor and shall be forthwith paid
      over to the Pledgee as Pledged Collateral in the same form as so received
      (with any necessary endorsement).

              

      

      

      SECTION
7.   Transfers and Other Liens;
Additional Shares.  Each Pledgor agrees that it shall not (i)
sell, assign (by operation of law or otherwise) or otherwise dispose of, or
grant any option with respect to, any of the Pledged Collateral, or (ii) create
or permit to exist any Lien upon or with respect to any of the Pledged
Collateral, except for the security interest granted pursuant to this
Agreement.

      

      SECTION
8.   Pledgee Appointed
Attorney-in-Fact.  Each Pledgor hereby appoints the Pledgee as
such Pledgor's attorney-in-fact, with full authority in the place and stead of
such Pledgor and in the name of such Pledgor or otherwise, from time to time in
Pledgee's discretion to take any action and to execute any instrument which
Pledgee may deem necessary or desirable to accomplish the purposes of this
Agreement, including, without limitation, to receive, endorse and collect all
instruments made payable to such Pledgor representing any dividend, interest
payment or other distribution in respect of the Pledged Collateral or any part
thereof and to give full discharge for the same.

      

      SECTION
9.   Pledgee May
Perform.  If any Pledgor fails to perform any agreement
contained herein, Pledgee may itself perform, or cause performance of, such
agreement, and the expenses of Pledgee incurred in connection therewith shall be
payable jointly and severally by the Pledgors to Pledgee along with any other
amounts due to be paid by any Pledgor to Pledgee hereunder.

      

      SECTION
10. The Pledgee's
Duties.  Except for the safe custody of any Pledged Collateral
in its possession and the accounting for moneys actually received by it
hereunder, Pledgee shall not have any duty as to any Pledged Collateral, as to
ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Pledged Collateral, whether
or not such party has or is to have knowledge of such matters, or as to the
taking of any necessary steps to preserve rights against any parties or any
other rights pertaining to any Pledged Collateral.  Pledgee shall be
deemed to have exercised reasonable care in the custody and preservation of any
Pledged Collateral in its possession if such Pledged Collateral is accorded
treatment substantially equal to that which such party accords its own
property.

       

      
        	 
      	 
      	 
      
	
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      SECTION
11. Event of
Default.  The occurrence of any of the following events, which
events occur prior to the date the Company pays or converts upon the request of
the Pledgee all amounts due on the Debenture in connection with the Cash
Advance, including any liquidated damages that may become due, shall constitute
an event of default under this Agreement (each, an "Event of
Default"):

      

      
        	
                 
      

              	
                (a)

              	
                the
      Company's breach of a material covenant under this Agreement or the
      occurrence of an Event of Default under the
  Debenture;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                if
      any representation or warranty of any Pledgor set forth in this Agreement
      shall be breached or shall be untrue or incorrect in any material respect
      or any Pledgor shall otherwise breach any term of this Agreement;
      or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                the
      filing of any financing statement with regard to any of the Pledged
      Collateral other than pursuant to this Agreement, or the attachment of any
      additional Lien to any portion of the Pledged Collateral in favor of any
      Person other than the Pledgee.

              

      

      

      SECTION
12. Cross-Default;
Cross-Collateralization.  Each Pledgor and the Company each
acknowledge and agree that any default under the terms of this Agreement shall
constitute a default by the Company under the Debenture.  The security
interests, liens and other rights and interests in and relative to any of the
personal property of any Pledgor now or hereafter granted to the Pledgee by any
Pledgor pursuant to any agreement, document or instrument, including, but not
limited to, this Agreement, the Purchase Agreement or the Debenture, shall serve
as security for any and all of the Obligations, and, for the repayment thereof,
Pledgee may resort to any such collateral in such order and manner as Pledgee
may elect.

      

      SECTION
13. Remedies upon
Event of Default.  After the occurrence of any Event of Default
if within twenty four hours of receiving written notice of such Event of Default
from the Pledgee the Company has not paid all outstanding principal and accrued
and unpaid interest and all other amounts owed on the Debenture to the extent of
the Cash Advance:

      

      
        	
                 
      

              	
                (a)

              	
                Pledgee
      may exercise in respect of the Pledged Collateral held by it, in addition
      to other rights and remedies provided for herein or otherwise available to
      the Pledgee (including, without limitation, the vesting in the Pledgee
      pursuant to Section 6(b)(i) of the sole right to exercise voting rights
      pertaining to the Pledged Collateral, including, without limitation,
      voting rights with respect to the sale of assets of the Company), all the
      rights and remedies of a secured party on default under the Uniform
      Commercial Code in effect in the State of California at that time (the
      "UCC") (whether or not the UCC applies to the affected Collateral), and
      may also, without notice except as specified below, to the extent required
      to pay all amounts due on the Debenture associated with such Event of
      Default (provided however that such amounts shall not exceed the Cash
      Advance), including without limitation principal, accrued but unpaid
      interest, liquidated damages, if any, that are due under the Debenture and
      fees, sell, in a commercially reasonable sale, the Pledged Collateral or
      any part thereof in one or more parcels at a public sale, provided that
      the Pledged Collateral is then trading on a Trading Market (as defined in
      the Debenture), or at a private sale, if the Pledged Collateral is no
      longer trading on a Trading Market, for cash, on credit or for future
      delivery, and upon such other terms as the Pledgee may deem commercially
      reasonable.  The application of the proceeds realized upon the
      sale of the Pledged Collateral may, in the sole discretion of the Pledgee,
      be applied to all or any portion of the amounts due on the Debenture
      associated with such Event of Default, in any order specified by the
      Pledgee, including without limitation the application of the proceeds
      realized upon the sale of the Pledged Collateral first to the liquidated
      damages, if any, owed in connection with the Debenture, and then to all
      other amounts due on the Debenture associated with such Event of Default,
      including without limitation principal, accrued and unpaid interest
      thereon and any other fees due under the Debenture, provided however, that
      such proceeds may only be applied to the satisfaction of the Cash Advance
      that is then outstanding under the Debenture, if any.  Each
      Pledgor agrees that, to the extent notice of sale shall be required by
      law, at least three (3) days' notice to such Pledgor of the time and place
      of any public sale or the time after which any private sale is to be made
      shall constitute reasonable notification.  Pledgee shall not be
      obligated to make any sale of Pledged Collateral regardless of notice of
      sale having been given.  The Pledgee may adjourn any public or
      private sale from time to time without notice.  Each Pledgor
      acknowledges and agrees that the Pledged Collateral consisting of the
      Pledged Shares, and/or any other shares of common stock of the Company, is
      of a type customarily sold on a recognized market, and accordingly that no
      notice of the sale thereof need be
given.

              

      

       

      
        	 
      	 
      	 
      
	
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                (b)

              	
                Any
      cash held by Pledgee as Pledged Collateral and all cash proceeds received
      by Pledgee in respect of any sale of, collection from, or other
      realization upon all or any part of the Pledged Collateral may, in the
      discretion of Pledgee, be held as collateral for, and/or then or at any
      time thereafter be applied (after payment of any amounts payable pursuant
      to Section 14) in whole or in part against all or any part of the
      Obligations.  Any surplus of such cash or cash proceeds held by
      Pledgee and remaining after payment in full of all the Obligations shall
      be paid over to the Pledgors or to whomsoever may be lawfully entitled to
      receive such surplus.

              

      

      

      SECTION
14. Fees.  In
the event an action is brought by Pledgee to enforce this Agreement, Pledgee
shall be entitled to recover its reasonable attorneys' fees and costs from the
Pledgors on a joint and several basis for such action.

       

      
        	 
      	 
      	 
      
	
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      SECTION
15. Continuing
Security Interest; Termination.  This Agreement shall create a
continuing security interest in the Pledged Collateral and shall remain in full
force and effect  until the indefeasible payment in full of the
Obligations.  Upon the indefeasible payment in full of the
Obligations, the security interest granted hereby shall terminate and all rights
to the Pledged Collateral shall revert to the Pledgors and all certificates
representing the Pledged Collateral shall be re-issued by the Company in the
name of the respective Pledgors, such the Pledgor's successors or assigns to the
extent such certificates are not already in such names.  Upon any such
termination, the Pledgee shall immediately but no later than three Business Days
after such termination, at the Company's expense, return to the Company such of
the Pledged Collateral as shall not have been sold or otherwise applied pursuant
to the terms hereof and execute and deliver to the Pledgors such documents as
the Pledgors shall reasonably request to evidence such
termination.  Notwithstanding the foregoing, within ten days of the
Cash Advance being repaid to the Pledgee or converted in full by the Pledgee,
either due to repayment by the Company or conversion of the Cash Advance into
the Company's Common Stock at the request of the Pledgee under the terms of the
Debenture, the Pledgee shall return to the Company the Pledged Shares
Certificate.

      

      SECTION
16. Governing
Law; Terms.  This Agreement shall be governed by, and construed
in accordance with, the laws of the State of California, without regard to
principles of conflict of laws.  Each Pledgor agrees to submit itself
to the in personam jurisdiction of the state and federal courts situated within
San Diego County, California with regard to any controversy arising out of or
relating to this Agreement.  Unless otherwise defined herein or in the
Purchase Agreement, terms defined in Article 9 of the UCC are used herein as
therein defined.

      

      SECTION
17. Notice.  All
notices and other communications hereunder shall be in writing and shall be
deemed to have been received when delivered personally (which shall include,
without limitation, via express overnight courier) or if mailed, three (3)
Business Days after having been mailed by registered or certified mail, return
receipt requested, postage prepaid, to the addresses of the parties as set forth
in the Purchase Agreement, and if to the Pledgors, to the following
addresses:

      

      Lou
Wood

      2 Maxwell
Glen

      San
Antonio, Texas 78257

      Facsimile:
210-687-1163

      

      Pamela Jo
Ross Wood

      2 Maxwell
Glen

      San
Antonio, Texas 78257

      Facsimile:
210-687-1163

      

      Louis
Alfred Wood III

      118 E.
French Place

      San
Antonio, Texas 78212

      Facsimile:
210-687-1163

      

      Nancy
Seale

      15834
Mission Ridge

      San
Antonio, Texas 78232

      Facsimile:
210-687-1163

       

      
        	 
      	 
      	 
      
	
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      or if by
facsimile, (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified below prior to 5:30
p.m. (Pacific Time), or (ii) the date immediately following the date of
transmission, if such notice or communication is delivered via facsimile between
5:30 p.m. (Pacific Time) on any date and earlier than 11:59 p.m. (Pacific Time)
on any such date the date immediately following the date of
transmission.

      

      SECTION
18.  Waivers.

      

      
        	
                 
      

              	
                (a)

              	
                Waivers.  Each
      Pledgor waives any right to require the Pledgee to (i) proceed against any
      person, (ii) proceed against any other collateral under any other
      agreement, (iii) pursue any other remedy, or (iv) make presentment,
      demand, dishonor, notice of dishonor, acceleration and/or notice of
      non-payment.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                Waiver of
      Defense.  No course of dealing between any Pledgor and
      the Pledgee, nor any failure to exercise nor any delay in exercising on
      the part of Pledgee, any right, power, or privilege under this Agreement
      or under any of the other Transaction Documents shall operate as a
      waiver.  No single or partial exercise of any right, power, or
      privilege under this Agreement or under any of the other Transaction
      Documents shall preclude any other or further exercise of such right,
      power, or privilege or the exercise of any other right, power, or
      privilege.

              

      

      

      SECTION
19. Rights Are
Cumulative.  All rights and remedies of the Pledgee with
respect to the Pledged Collateral, whether established by this Agreement, the
other Transaction Documents or by law, shall be cumulative and may be exercised
concurrently or in any order.

      

      SECTION
20.  Indemnity.  Each
Pledgor agrees jointly and severally:

      

      
        	
                 
      

              	
                (a)

              	
                to
      indemnify and hold harmless the Pledgee and its respective, employees,
      consultants, officers, directors, shareholder, partners, attorneys,
      successors and assigns against and from all liabilities, losses, and costs
      (including, without limitation, reasonable attorneys' fees) arising out of
      or relating to the taking or the failure to take action in respect of any
      transaction effected under this Agreement or in connection with the lien
      provided for herein, including, without limitation, any and all excise,
      sales or other taxes which may be payable or determined to be payable with
      respect to any of the Pledged
Collateral.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                to
      pay and reimburse the Pledgee upon demand for all reasonable costs and
      expenses (including, without limitation, reasonable attorneys' fees and
      expenses) that the Pledgee may incur in connection with (i) the custody,
      use or preservation of, or the sale of, collection from or other
      realization upon, any of the Pledged Collateral, including the reasonable
      expenses of re-taking, holding, preparing for sale or lease, selling or
      otherwise disposing of or realizing on the Pledged Collateral, (ii) the
      exercise or enforcement of any rights or remedies granted hereunder, under
      the Debenture or otherwise available to it (whether at law, in equity or
      otherwise), or (iii) the failure by any Pledgor to perform or observe any
      of the provisions hereof.

              

      

       

      
        	 
      	 
      	 
      
	
                Initials

              	 
      	
                Initials

              

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      The
liabilities of each of the Pledgors under this Section 20 shall survive the
termination of this Agreement.

      

      SECTION
21. Severability.  The
provisions of this Agreement are severable.  If any provision of this
Agreement is held invalid or unenforceable in whole or in part in any
jurisdiction, then such invalidity or unenforceability shall affect only such
provision, or part thereof, in such jurisdiction, and shall not in any manner
affect such provision or part thereof in any other jurisdiction, or any other
provision of this Agreement in any jurisdiction.

      

      SECTION
22. Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be
considered an original, but all of which together shall constitute one and the
same instrument and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart.  In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a
".pdf" format data file, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page
were an original thereof.

      

      SECTION
23. Amendments;
Entire Agreement.  This Agreement is subject to modification
only by a writing signed by the parties.  To the extent that any
provision of this Agreement conflicts with any provision of the Purchase
Agreement or the Debenture, the provision giving the Pledgee greater rights or
remedies shall govern, it being understood that the purpose of this Agreement is
to add to, and not detract from, the rights granted to the Pledgee under the
Purchase Agreement and the Debenture.  This Agreement, the Purchase
Agreement, the Debenture and the other Transaction Documents constitute the
entire agreement of the parties with respect to the subject matter of this
Agreement.

      

      [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        	 
      	 
      	 
      
	
                Initials

              	 
      	
                Initials

              

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      SECTION
24. Successors
and Assigns.  This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, executors, legal
representatives, successors and assigns; provided, however, that no Pledgor may,
without the prior written consent of the Pledgee, assign or delegate any rights,
powers, duties or obligations hereunder, and any such purported assignment or
delegation without such consent shall be null and void.  Pledgee may
assign or delegate any rights, powers, duties or obligations hereunder without
the consent of any of the Pledgors.

      

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

      

      
        	
                PLEDGORS:

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	/s/ Lou Wood	 
      	/s/
      Louis Alfred Wood III
	
                Lou
      Wood

              	 
      	
                Louis
      Alfred Wood III

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	/s/ Pamela
      Jo Ross Wood	 
      	/s/
      Nancy Seale  
	
                Pamela
      Jo Ross Wood

              	 
      	
                Nancy
      Seale

              

      

      

      

      
        	 
      	
                PLEDGEE:

              
	 
      	 
      	 
      
	 
      	
                La
      Jolla Cove Investors, Inc.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By: 
      

              	/s/ Travis W.
      Huff	 
	 
      	
                Name: 
      

              	
                Travis
      W. Huff

              
	 
      	
                Title: 
      

              	
                Vice
      President and Portfolio Manager

              

      

      

      

      
        	
                ACKNOWLEDGED
      AND AGREED:

              
	 
      	 
      	 
      
	 
      	
                Espre
      Solutions, Inc.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	/s/
      Peter Leighton	 
	 	 	Name: 
      Peter Leighton
	 	 	Title: 
      President

      

       

      
        	 
      	 
      	 
      
	
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                Initials

              

      

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      SCHEDULE
1(a)

      Pledged
Shares

      

      Six
million shares of Common Stock of Espre Solutions, Inc. in the aggregate,
certificated as follows:

      

      
        
          

        

      

      
        	
                Pledgor

              	
                Number
      of Shares

              	
                Certificate
      No.

              
	 
      	 
      	 
      
	
                Lou
      Wood

              	
                2,000,000

              	 
      
	
                Pamela
      Jo Ross Wood

              	
                2,000,000

              	 
      
	
                Louis
      Alfred Wood III

              	
                1,000,000

              	 
      
	
                Nancy
      Seale

              	
                1,000,000

              	 
      

      

      

         

        
          	 
      	 
      	 
      
	
                  Initials

                	 
      	
                  Initials

                

        

      

    

     

    12Unassociated Document

    

      Exhibit
        10.1

      

       

      Execution
        Copy

     

    ESCROW
      AGREEMENT

     

    THIS
      ESCROW AGREEMENT,
      dated as
      of July 18, 2008 (this “Escrow Agreement”), is by and among iCAD,
      Inc.,
      a
      Delaware corporation (“iCAD”); 3TP
      LLC (“Seller”)
      and
      U.S. BANK NATIONAL ASSOCIATION, a
      national banking association, as Escrow Agent hereunder (“Escrow
      Agent”).

     

    BACKGROUND

     

    A.  iCAD
      and
      Seller have entered into an Asset Purchase Agreement (the “Underlying
      Agreement”), dated as of June 20, 2008, between iCAD and Seller, pursuant to
      which Seller
      has
      agreed to sell and iCAD has agreed to purchase substantially all of the assets
      of Seller. The Underlying Agreement provides that iCAD shall deposit the Escrow
      Shares (defined below) in a segregated escrow account to be held by Escrow
      Agent.

     

    B.  Escrow
      Agent has agreed to accept, hold, and disburse the Escrow Shares deposited
      with
      it in accordance with the terms of this Escrow Agreement.

     

    C.  In
      order
      to establish the escrow of the Escrow Shares and to effect the provisions of
      the
      Underlying Agreement, the parties hereto have entered into this Escrow
      Agreement.

     

    STATEMENT
      OF AGREEMENT

     

    NOW
      THEREFORE,
      for good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto, for themselves, their successors and assigns,
      hereby agree as follows:

     

    1.    Definitions.
      The
      following terms shall have the designated meanings when used
      herein:

     

    (a)  “Business
      Day” shall mean any day on which banks are not required, or are authorized, to
      close in the City of New York, New York.

     

    (b)  “Claim”
      shall mean a claim for indemnification by iCAD pursuant to the Underlying
      Agreement.

     

    (c)  “Claim
      Amount” shall mean the amount designated by iCAD to be the amount (to the extent
      then known) of any Claim for which a Claim Notice has been delivered.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (d)  “Claim
      Notice” shall mean a written notification signed by iCAD and delivered which
      shall specify the representation or agreement in the Underlying Agreement with
      respect to which a Claim is being made, the facts giving rise to and the alleged
      basis for such Claim, the Claim Amount of such Claim, the date of such Claim
      Notice, and the aggregate Claim Amounts of all Claims as to which Claim Notices
      have been delivered, and shall attach copies of all material written evidence
      of
      such Claim. Each Claim Notice also shall include a certification by iCAD that
      the Claim is being made pursuant to the Underlying Agreement and this Escrow
      Agreement.

     

    (e)  “Claim
      Response” shall mean a written notification, signed by Seller, which shall set
      forth whether or not Seller disputes any matter with respect to a Claim Notice
      or the Claim described therein.

     

    (f)  “Escrow
      Shares” shall mean the 271,740 shares of common stock, par value $0.01 per
      share, of iCAD deposited with Escrow Agent pursuant to Section
      3
      of this
      Agreement.

     

    (g)  “Joint
      Written Direction” shall mean a written direction executed by iCAD and Seller
      and directing Escrow Agent to disburse all or a portion of the Escrow Shares
      or
      to take or refrain from taking an action pursuant to this Escrow
      Agreement.

     

    2.    Appointment
      of and Acceptance by Escrow Agent.
      iCAD
      and Seller hereby appoint Escrow Agent to serve as escrow agent hereunder.
      Escrow Agent hereby accepts such appointment and, upon receipt of the Escrow
      Shares in accordance with Section
      3
      below,
      agrees to hold and disburse the Escrow Shares in accordance with this Escrow
      Agreement.

     

    3.    Commencement
      of Duties.
      iCAD,
      on the date hereof, simultaneously with the execution and delivery of this
      Escrow Agreement, shall deliver to the Escrow Agent the Escrow Shares.

     

    4.    Disbursements
      of Escrow Shares.
      The
      Escrow Shares shall be distributed by the Escrow Agent in accordance with the
      following:

     

    (a)  On
      or
      promptly after the six month anniversary of the date hereof, Escrow Agent shall
      disburse
      to iCAD 181,160 Escrow Shares less (A) any Escrow Shares previously distributed
      to iCAD pursuant to Section
      5
      of this
      Agreement and (B) such
      number of Escrow Shares with a value (as calculated in accordance with
Section
      4(c))
      equal
      to an amount sufficient to satisfy in full all Claim Amounts, if any, that
      have
      not been resolved at such time and any amount due under Section
      5
      hereof
      which has been determined but not yet distributed, if any.

     

    (b)  On
      or
      promptly after the one year anniversary of the date hereof, Escrow Agent shall:
      (A) retain such number of Escrow Shares with a value (as calculated in
      accordance with Section
      4(c))
      sufficient to satisfy in full all Claim Amounts, if any, that have not been
      resolved at such time and any amount due under Section
      5
      hereof
      which has been determined but not yet distributed; and (B) distribute, as
      promptly as practicable, the balance of the Escrow Shares to
      Seller.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (c)  The
      calculation for determining the number of Escrow Shares which shall be
      distributed at any time under this Agreement shall be the quotient of (A) the
      dollar amount of the amount to be indemnified or otherwise in question divided
      by (B) $2.76. 

     

    5.    Indemnification
      Claims.

     

    (a)  During
      the term of this Agreement, iCAD shall deliver each Claim Notice to Seller
      and
      Escrow Agent, such delivery to be in accordance with the notice provisions
      of
      this Escrow Agreement.

     

    (b)  Upon
      receipt of any Claim Notice, Escrow Agent shall promptly make entries or
      notations in the Escrow Account records relating to the Escrow Shares,
      indicating that Escrow Shares with a value (as calculated in accordance with
      Section
      4(c))
      in the
      amount of the Claim Amount are reserved to satisfy such Claim, and identifying
      the date and number of such Claim Notice.

     

    (c)  Within
      twenty (20) days of receipt by Seller of any Claim Notice, Seller shall deliver
      a Claim Response to iCAD and Escrow Agent, such delivery to be in accordance
      with the notice provisions of this Escrow Agreement. If, in connection with
      a
      Claim Notice, Seller fails to deliver a Claim Response by the end of the
      twentieth (20th) day following receipt by Seller of a Claim Notice, Escrow
      Agent
      shall distribute to iCAD out of the Escrow Account Escrow Shares with a value
      (as calculated in accordance with Section
      4(c))
      equal
      to the lesser of the Claim Amount or the number of Escrow Shares remaining
      in
      the Escrow Account. Any such distribution shall be made on or before the third
      (3rd) Business Day following the expiration of such twenty (20) day period.
      Escrow Agent shall continue to hold any Escrow Shares remaining in the Escrow
      Account following the distribution of any Escrow Shares pursuant to any Claim
      Notice in accordance with the terms of this Escrow Agreement.

     

    (d)  If
      Seller
      delivers a timely Claim Response with respect to all or any portion of a Claim
      Notice, Escrow Agent shall not disburse, and shall continue to hold in the
      Escrow Account, the Escrow Shares with a value (as calculated in accordance
      with
Section
      4(c))
      equal
      to the Claim Amount or the disputed portion thereof, as the case may be, pending
      receipt of either (i) a Joint Written Direction or (ii) a notice from either
      iCAD or Seller stating that such Claim Notice has been submitted to a court
      of
      competent jurisdiction for judgment and that a judgment with respect to such
      matters has been rendered (a “Judgment Notice”) which is accompanied by a copy
      of a final order of such court, pursuant to which such court has determined
      whether and to what extent iCAD is entitled to the amount requested in the
      Claim
      Notice. Upon receipt of a Joint Written Direction or a Judgment Notice, as
      applicable, Escrow Agent shall thereafter act in accordance with Section
      5(e),
      or
Section
      5(f)
      below,
      as applicable.

     

    (e)  Upon
      receipt by Escrow Agent of a Joint Written Direction, if such Joint Written
      Direction indicates that iCAD is entitled to a distribution of Escrow Shares
      in
      respect of all or any portion of the Claim Notice, then Escrow Agent shall
      release from the Escrow Account and distribute to iCAD the number of Escrow
      Shares with a value (as calculated in accordance with Section
      4(c))
      equal
      to the amount indicated in such Joint Written Direction (up to a maximum of
      the
      number of the Escrow Shares then remaining in the Escrow Account). Such
      distribution shall be made on or before the third (3rd) Business Day following
      the date on which such Joint Written Direction is received by Escrow Agent.
      If
      such Joint Written Direction indicates that iCAD is not entitled to all or
      any
      portion of the amount claimed in such Claim Notice (a “Discharge Notice”), then
      the Escrow Agent shall (i) distribute to iCAD that number of Escrow Shares,
      if
      any, with a value (as calculated in accordance with Section
      4(c))
      equal
      to the amount claimed in such Claim Notice that Escrow Agent is instructed
      to
      distribute to iCAD pursuant to such Joint Written Direction (as set forth in
      the
      foregoing sentence) and (ii) continue to hold Escrow Shares with a value (as
      calculated in accordance with Section
      4(c))
      equal
      to which iCAD was determined not to be entitled in accordance with the terms
      of
      the Joint Written Direction until such Escrow Shares are to be disbursed in
      accordance with the terms of this Escrow Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (f)  If
      Escrow
      Agent has received a Judgment Notice with respect to any Claim Notice, then
      Escrow Agent shall release from the Escrow Account and distribute to iCAD Escrow
      Shares with a value (as calculated in accordance with Section
      4(c))
      equal
      to the amount due iCAD, as explicitly set forth in such Judgment Notice (up
      to a
      maximum of the Escrow Shares then remaining in the Escrow Account). Such
      distribution will be made on or before the third (3rd) Business Day following
      the date on which Escrow Agent receives such Judgment Notice. If such Judgment
      Notice indicates that iCAD is not entitled to all or any portion of the Escrow
      Shares with a value (as calculated in accordance with Section
      4(c))
      equal
      to the amount claimed in the Claim Notice, then Escrow Agent shall continue
      to
      hold the Escrow Shares with a value (as calculated in accordance with
Section
      4(c))
      equal
      the amount to which iCAD was determined not to be entitled in accordance with
      the Judgment Notice until such Escrow Shares are to be disbursed in accordance
      with the terms of this Escrow Agreement.

     

    6.    Suspension
      of Performance; Disbursement Into Court.
      If, at
      any time, (i) there shall exist any dispute between iCAD and Seller with respect
      to the holding or disposition of all or any portion of the Escrow Shares or
      any
      other obligations of Escrow Agent hereunder, (ii) Escrow Agent is unable to
      determine, to Escrow Agent’s sole but reasonable satisfaction, the proper
      disposition of all or any portion of the Escrow Shares or Escrow Agent’s proper
      actions with respect to its obligations hereunder, or (iii) iCAD and Seller
      have
      not within thirty (30) days of the furnishing by Escrow Agent of a notice of
      resignation pursuant to Section
      7
      hereof,
      appointed a successor Escrow Agent to act hereunder, then Escrow Agent may,
      in
      its sole discretion, take either or both of the following actions:

     

    (a)  suspend
      the performance of any of its obligations (including without limitation any
      disbursement obligations) under this Escrow Agreement until such dispute or
      uncertainty shall be resolved to the sole but reasonable satisfaction of Escrow
      Agent or until a successor Escrow Agent shall have been appointed (as the case
      may be).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (b)  petition
      (by means of an interpleader action or any other appropriate method), at the
      joint and several expense of iCAD and Seller, any court of competent
      jurisdiction in any venue convenient to Escrow Agent, for instructions with
      respect to such dispute or uncertainty, and to the extent required or permitted
      by law, pay into such court, for holding and disposition in accordance with
      the
      instructions of such court, all Escrow Shares, after deduction and payment
      to
      Escrow Agent of all fees and expenses (including court costs and attorneys’ fees
      and expenses) payable to, incurred by, or expected to be incurred by Escrow
      Agent in connection with the performance of its duties and the exercise of
      its
      rights hereunder. 

     

    The
      Escrow Agent shall have no liability to Seller, iCAD, its shareholders or
      members or any other person with respect to any such suspension of performance
      or disbursement into court, specifically including any liability or claimed
      liability that may arise, or be alleged to have arisen, out of or as a result
      of
      any delay in the disbursement of the Escrow Shares or any delay in or with
      respect to any other action required or requested of Escrow Agent. 

     

    7.    Resignation
      of Escrow Agent.
      Escrow
      Agent may resign and be discharged from the performance of its duties hereunder
      at any time by giving thirty (30) days prior written notice to iCAD and Seller
      specifying a date when such resignation shall take effect. Upon any such notice
      of resignation, iCAD and Seller jointly shall appoint a successor Escrow Agent
      hereunder prior to the effective date of such resignation. The retiring Escrow
      Agent shall transmit all records pertaining to the Escrow Shares and shall
      deliver all Escrow Shares to the successor Escrow Agent, after making copies
      of
      such records as the retiring Escrow Agent deems advisable and after deduction
      and payment to the retiring Escrow Agent of all fees and expenses (including
      court costs and attorneys’ fees and expenses) payable to or incurred by the
      retiring Escrow Agent in connection with the performance of its duties and
      the
      exercise of its rights hereunder. After any retiring Escrow Agent’s resignation,
      the provisions of this Escrow Agreement shall inure to its benefit as to any
      actions taken or omitted to be taken by it while it was Escrow Agent under
      this
      Escrow Agreement. Any corporation or association into which the Escrow Agent
      may
      be merged or converted or with which it may be consolidated, or any corporation
      or association to which all or substantially all of the escrow business of
      the
      Escrow Agent’s corporate trust line of business may be transferred, shall be the
      Escrow Agent under this Escrow Agreement without further act.

     

    8.    Liability
      of Escrow Agent.
      The
      Escrow Agent undertakes to perform only such duties as are expressly set forth
      herein and no duties or obligations shall be implied. The Escrow Agent shall
      have no liability under and no duty to inquire as to the provisions of any
      agreement other than this Escrow Agreement. The Escrow Agent shall not be liable
      for any action taken or omitted by it in good faith except to the extent that
      a
      court of competent jurisdiction determines that the Escrow Agent’s gross
      negligence or willful misconduct was the cause of any loss to iCAD or Seller.
      Escrow Agent’s sole responsibility shall be for the safekeeping and disbursement
      of the Escrow Shares in accordance with the terms of this Escrow Agreement.
      Escrow Agent shall not be charged with knowledge or notice of any fact or
      circumstance not specifically set forth herein. Escrow Agent may conclusively
      rely upon any notice, instruction, request or other instrument, not only as
      to
      its due execution, validity and effectiveness, but also as to the truth and
      accuracy of any information contained therein, which Escrow Agent shall
      reasonably believe to be genuine and to have been signed or presented by the
      person or parties purporting to sign the same. In no event shall Escrow Agent
      be
      liable for incidental, indirect, special, consequential or punitive damages
      (including, but not limited to lost profits), even if the Escrow Agent has
      been
      advised of the likelihood of such loss or damage and regardless of the form
      of
      action. Escrow Agent shall not be obligated to take any legal action or commence
      any proceeding in connection with the Escrow Shares, this Escrow Agreement
      or
      the Underlying Agreement, or to appear in, prosecute or defend any such legal
      action or proceeding. Escrow Agent may consult legal counsel selected by it
      in
      the event of any dispute or question as to the construction of any of the
      provisions hereof or of any other agreement or of its duties hereunder, or
      relating to any dispute involving any party hereto, and shall incur no liability
      and shall be fully indemnified from any liability whatsoever in acting in
      accordance with the opinion or instruction of such counsel. iCAD and Seller,
      jointly and severally, shall promptly pay, upon demand, the reasonable fees
      and
      expenses of any such counsel. Escrow Agent shall have no liability or
      responsibility to question or determine the accuracy or reasonableness of any
      Claim Amount.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    The
      Escrow Agent is authorized, in its sole but reasonable discretion, to comply
      with orders issued or process entered by any court with respect to the Escrow
      Shares, without determination by the Escrow Agent of such court’s jurisdiction
      in the matter. If any portion of the Escrow Shares 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 and in any such event, the Escrow Agent is authorized, in its
      sole
      discretion, to conclusively rely upon and comply with any such order, writ,
      judgment or decree which it is advised by legal counsel selected by it is
      binding upon it without the need for appeal or other action; and if the Escrow
      Agent 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 or entity by reason
      of such compliance even though such order, writ, judgment or decree may be
      subsequently reversed, modified, annulled, set aside or vacated. 

     

    9.    Indemnification
      of Escrow Agent.
      From
      and at all times after the date of this Escrow Agreement, iCAD and Seller,
      jointly and severally, shall, to the fullest extent permitted by law, defend,
      indemnify and hold harmless Escrow Agent and each director, officer, employee,
      attorney, agent and affiliate of Escrow Agent (collectively, the “Indemnified
      Parties”) against any and all actions, claims (whether or not valid), losses,
      damages, liabilities, costs and expenses of any kind or nature whatsoever
      (including without limitation reasonable attorneys’ fees, costs and expenses)
      incurred by or asserted against any of the Indemnified Parties from and after
      the date hereof, whether direct, or indirect, as a result of or arising from
      or
      in any way relating to any claim, demand, suit, action or proceeding by any
      person, including without limitation iCAD or Seller, whether threatened or
      initiated, asserting a claim for any legal or equitable remedy against any
      person under any statute or regulation, including, but not limited to, any
      federal or state securities laws, or under any common law or equitable cause
      or
      otherwise, arising from or in connection with the performance or failure of
      performance of this Escrow Agreement or any transactions contemplated herein,
      whether or not any such Indemnified Party is a party to any such action,
      proceeding, suit or the target of any such inquiry or investigation;
provided,
      however,
      that no
      Indemnified Party shall have the right to be indemnified hereunder for any
      liability finally determined by a court of competent jurisdiction, subject
      to no
      further appeal, to have resulted from the gross negligence or willful misconduct
      of such Indemnified Party. Each Indemnified Party shall have the right to select
      and employ counsel with respect to any action or claim brought or asserted
      against it, and the reasonable fees and expenses of such counsel shall be paid
      upon demand by each of iCAD and Seller, jointly and severally. The obligations
      of iCAD and Seller under this Section
      9
      shall
      survive any termination of this Escrow Agreement and the resignation or removal
      of Escrow Agent. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    The
      parties agree that neither the payment by iCAD or Seller of any claim by Escrow
      Agent for indemnification hereunder nor the disbursement of any Escrow Shares
      to
      Escrow Agent from the in respect of a claim by Escrow Agent for indemnification
      shall impair, limit, modify, or affect, as between iCAD and Seller, the
      respective rights and obligations of iCAD, on the one hand, and Seller, on
      the
      other hand, under the Underlying Agreement.

     

    10.    Fees
      and Expenses of Escrow Agent.
      iCAD
      and Seller shall compensate Escrow Agent for its services hereunder in
      accordance with Schedule
      A
      attached
      hereto and, in addition, shall reimburse Escrow Agent for all of its reasonable
      out-of-pocket expenses, including attorneys’ fees and expenses, travel expenses,
      telephone and facsimile transmission costs, postage (including express mail
      and
      overnight delivery charges), copying charges and the like. The additional
      provisions and information set forth on Schedule
      A
      are
      hereby incorporated by this reference, and form a part of this Escrow Agreement.
      The compensation and reimbursement obligations set forth in this Section
      10
      shall be
      payable by iCAD and Seller, jointly and severally upon demand by Escrow Agent.
      The obligations of iCAD and Seller under this Section
      10
      shall
      survive any termination of this Escrow Agreement and the resignation or removal
      of Escrow Agent. Escrow Agent is authorized to, and may, disburse to itself
      from
      the Escrow Shares, from time to time, Escrow Shares equal to the value (as
      calculated in accordance with Section
      4(c))
      of any
      compensation and reimbursement of out-of-pocket expenses due and payable
      hereunder (including any amount to which Escrow Agent or any Indemnified Party
      is entitled to seek indemnification pursuant to Section
      9
      hereof).
      Escrow Agent shall notify iCAD and Seller of any disbursement from the Escrow
      Shares to itself or any Indemnified Party in respect of any compensation or
      reimbursement hereunder and shall furnish to iCAD and Seller copies of all
      related invoices and other statements. Seller and iCAD hereby grant to Escrow
      Agent and the Indemnified Parties a security interest in and lien upon the
      Escrow Shares to secure all obligations with respect to the right to offset
      the
      amount of any compensation or reimbursement due any of them hereunder (including
      any claim for indemnification pursuant to Section
      9
      hereof)
      against the Escrow Shares. If for any reason the value (as calculated in
      accordance with Section
      4(c))
      of the
      Escrow Shares are insufficient to cover such compensation and reimbursement,
      iCAD and Seller shall promptly pay, on a joint and several basis, such amounts
      to Escrow Agent or any Indemnified Party upon receipt of an itemized invoice.
      

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    11.    Representations
      and Warranties.
      Each of
      iCAD and Seller respectively makes the following representations and warranties
      to Escrow Agent:

     

    (a)  As
      applicable, it is duly organized, validly existing, and in good standing under
      the laws of the state of its incorporation or organization, and has full power
      and authority to execute and deliver this Escrow Agreement and to perform its
      obligations hereunder.

     

    (b)  This
      Escrow Agreement has been duly approved by all necessary action, including
      any
      necessary shareholder or membership approval, has been executed by its duly
      authorized officers, and constitutes its valid and binding agreement enforceable
      in accordance with its terms.

     

    (c)  As
      applicable, the execution, delivery, and performance of this Escrow Agreement
      is
      in accordance with the Underlying Agreement and will not violate, conflict
      with,
      or cause a default under its articles of incorporation, certificate of
      formation, articles of organization, bylaws, limited liability company
      agreement, management agreement or other organizational document, as applicable,
      any applicable law or regulation, any court order or administrative ruling
      or
      decree to which it is a party or any of its property is subject, or any
      agreement, contract, indenture, or other binding arrangement, including without
      limitation the Underlying Agreement, to which it is a party or any of its
      property is subject.

     

    (d)  No
      party
      other than the parties hereto has, or shall have, any lien, claim or security
      interest in the Escrow Shares or any part thereof. No financing statement under
      the Uniform Commercial Code is on file in any jurisdiction claiming a security
      interest in or describing (whether specifically or generally) the Escrow Shares
      or any part thereof.

     

    (e)  All
      of
      its representations and warranties contained herein are true and complete as
      of
      the date hereof and will be true and complete at the time of any disbursement
      of
      the Escrow Shares.

     

    12.    Identifying
      Information.
      iCAD
      and Seller acknowledge that a portion of the identifying information set forth
      on Schedule
      A
      is being
      requested by the Escrow Agent in connection with the USA Patriot Act,
      Pub.L.107-56 (the “Act”). To help the government fight the funding of terrorism
      and money laundering activities, federal law requires all financial institutions
      to obtain, verify, and record information that identifies each person who opens
      an account. For a non-individual person such as a business entity, a charity,
      a
      trust, or other legal entity, the Escrow Agent may ask for documentation to
      verify its formation and existence as a legal entity. The Escrow Agent may
      also
      ask to see financial statements, licenses, identification and authorization
      documents from individuals claiming authority to represent the entity or other
      relevant documentation. iCAD and Seller agree to provide any additional
      information requested by the Escrow Agent in connection with the Act or any
      similar legislation or regulation to which Escrow Agent is subject, in a timely
      manner. iCAD and Seller each represent that all identifying information set
      forth on Schedule
      A,
      including without limitation its Taxpayer Identification Number assigned by
      the
      Internal Revenue Service or any other taxing authority, is true and complete
      on
      the date hereof and will be true and complete at the time of any disbursement
      of
      the Escrow Shares.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    13.    Consent
      to Jurisdiction and Venue; Waiver of Jury Trial.
      In the
      event that any party hereto commences a lawsuit or other proceeding relating
      to
      or arising from this Escrow Agreement, the parties hereto agree that the
      Southern District of New York shall have the sole and exclusive jurisdiction
      over any such proceeding. If such court lacks federal subject matter
      jurisdiction, the parties agree that the any state court within New York County,
      City of New York, New York shall have sole and exclusive jurisdiction. Any
      of
      these courts shall be proper venue for any such lawsuit or judicial proceeding
      and the parties hereto waive any objection to such venue. The parties hereto
      consent to and agree to submit to the jurisdiction of any of the courts
      specified herein and agree to accept service of process to vest personal
      jurisdiction over them in any of these courts. THE PARTIES HERETO HEREBY WAIVE
      A
      TRIAL BY JURY OF ANY AND ALL ISSUES ARISING IN ANY ACTION OR PROCEEDING BETWEEN
      THEM OR THEIR SUCCESSORS OR ASSIGNS, UNDER OR IN CONNECTION WITH THIS ESCROW
      AGREEMENT OR ANY OF ITS PROVISIONS OR ANY NEGOTIATIONS IN CONNECTION
      HEREWITH.

     

    14.    Notice.
      All
      notices, approvals, consents, requests, and other communications hereunder
      shall
      be in writing (including facsimile) and shall be deemed to have been given
      when
      actually received if delivered personally, sent by registered mail, return
      receipt requested, postage prepaid to, or if sent by facsimile to, the address
      or facsimile number set forth on Schedule A
      hereto,
      or to such other address as each party may designate for itself by like
      notice.

     

    15.    Amendment
      or Waiver.
      This
      Escrow Agreement may be changed, waived, discharged or terminated only by a
      writing signed by iCAD and Seller and Escrow Agent. No delay or omission by
      any
      party in exercising any right with respect hereto shall operate as a waiver.
      A
      waiver on any one occasion shall not be construed as a bar to, or waiver of,
      any
      right or remedy on any future occasion.

     

    16.    Severability.
      To the
      extent any provision of this Escrow Agreement is prohibited by or invalid under
      applicable law, such provision shall be ineffective to the extent of such
      prohibition or invalidity, without invalidating the remainder of such provision
      or the remaining provisions of this Escrow Agreement.

     

    17.    Governing
      Law.
      This
      Escrow Agreement shall be construed and interpreted in accordance with the
      internal laws of the State of New York without giving effect to the conflict
      of
      laws principles thereof. 

     

    18.    Entire
      Agreement.
      This
      Escrow Agreement and the Underlying Agreement constitute the entire agreement
      between the parties relating to the holding, investment and disbursement of
      the
      Escrow Shares and sets forth in their entirety the obligations and duties of
      Escrow Agent with respect to the Escrow Shares.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    19.    Binding
      Effect.
      All of
      the terms of this Escrow Agreement, as amended from time to time, shall be
      binding upon, inure to the benefit of and be enforceable by the respective
      successors and assigns of iCAD, Seller and Escrow Agent. 

     

    20.    Execution
      in Counterparts.
      This
      Escrow Agreement and any Joint Written Direction may be executed in two or
      more
      counterparts, which when so executed shall constitute one and the same agreement
      or direction.

     

    21.    Termination.
      Upon
      the disbursement of all Escrow Shares pursuant to Joint Written Direction or
      the
      disbursement of all the Escrow Shares into court pursuant to Section
      5
      or
Section 7
      hereof,
      this Escrow Agreement shall terminate and Escrow Agent shall have no further
      obligation or liability whatsoever with respect to this Escrow Agreement or
      the
      Escrow Shares.

     

    22.    Dealings.
      The
      Escrow Agent and any stockholder, director, member, manager, officer or employee
      of the Escrow Agent may buy, sell, and deal in any of the securities of iCAD
      or
      Seller and become pecuniarily interested in any transaction in which iCAD or
      Seller may be interested, and contract and lend money to iCAD or Seller and
      otherwise act as fully and freely as though it were not Escrow Agent under
      this
      Agreement. Nothing herein shall preclude the Escrow Agent from acting in any
      other capacity for iCAD or Seller or for any other entity.

     

    23.    Certain
      Tax Matters.
      Each
      of
      iCAD and Seller agree to provide the Escrow Agent with such information as
      the
      Escrow Agent may reasonably request in order for it to comply with any
      information reporting and withholding obligations imposed by applicable laws
      or
      regulations, if any. Except to the extent otherwise required pursuant to a
      “determination” (within the meaning of Section 1313(a) of the Internal Revenue
      Code of 1986, as amended), the parties hereto will treat iCAD as owning the
      Escrow Shares for U.S. federal income tax purposes.

     

    24.    Force
      Majeure.
      The
      Escrow Agent shall not be responsible for delays or failures in performance
      resulting from acts beyond its control, such as (but not limited to) acts of
      God, riots, wars, strikes, epidemics, governmental regulations
      superimposed after the fact, fire, communication line failures, computer
      viruses, power failures, earthquakes or other disasters.

     

     

    [REMAINDER
      OF PAGE INTENTIONALLY BLANK]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

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

     

    

    
      	 	iCAD,
              INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	
              /s/
                Kenneth Ferry

            	 
	 	Title:	
               CEO

            	 
	 	 	 	 
	 	 	 	 
	 	3TP LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	
              /s/
                Raymond E. Joslin

            	 
	 	Title:	
              Chief
                Executive Officer

            	 
	 	 	 	 
	 	 	 	 
	 	U.S. BANK NATIONAL
              ASSOCIATION,	 
	 	as Escrow
              Agent	 
	 	 	 	 
	 	By:	
              /s/
                Thomas Tabor

            	 
	 	Title:	
              Vice
                President

            	 
	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    
      	1.	
              Escrow
                Shares.

            

    

     

    Escrow
      Shares:   271,740   

     

    

     

    
      	2.	
              Escrow
                Agent Fees.

            

    

     

    
      	Acceptance
              Fee:	$	 
	Annual
              Escrow Fee:	$	5,000
	Out-of-Pocket
              Expenses:	$	 
	Transactional
              Costs:	$	 
	Other
              Fees/Attorney, etc.:	$	 
	
              TOTAL

            	$	 

    

       

    The
      Acceptance Fee and the Annual Escrow Fee are payable upon execution of the
      escrow documents. In the event the escrow is not funded, the Acceptance Fee
      and
      all related expenses, including attorneys’ fees and expenses, remain due and
      payable, and if paid, will not be refunded. Annual fees cover a full year in
      advance, or any part thereof, and thus are not pro-rated in the year of
      termination.

     

    The
      fees
      quoted in this schedule apply to services ordinarily rendered in the
      administration of an Escrow Account and are subject to reasonable adjustment
      based on final review of documents, or when the Escrow Agent is called upon
      to
      undertake unusual duties or responsibilities, or as changes in law, procedures,
      or the cost of doing business demand. Services in addition to and not
      contemplated in this Agreement, including, but not limited to, document
      amendments and revisions, non-standard cash and/or investment transactions,
      calculations, notices and reports, and legal fees and expenses, will be billed
      as extraordinary expenses.

     

    Unless
      otherwise indicated, the above fees relate to the establishment of one escrow
      account. Additional sub-accounts governed by the same Escrow Agreement may
      incur
      an additional charge. Transaction costs include charges for wire transfers,
      checks, internal transfers and securities transactions.

     

    
      	
              3.

            	
              Taxpayer
                Identification Numbers.

            

    

     

    iCAD:  02-0377419

     

    Seller:  03-0413446

     

    
      	
              4.

            	
              [Reserved.]

            

    

     

    
      	
              5.

            	
              [Reserved.]

            

    

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    

     

    
      	6.	
              Notice
                Addresses.

            

    

     

    If
      to
      iCAD at:   

     

    iCAD,
      Inc.

    98
      Spit
      Brook Road, Suite 100

    Nashua,
      New Hampshire 03062 

    Attention:
      Kenneth Ferry, President and Chief Executive Officer

    Facsimile:
      (603) 880-3843

     

    With
      a
      required copy to:

     

    Blank
      Rome LLP

    405
      Lexington Avenue

    New
      York,
      New York 10174

    Attention:
      Robert J. Mittman, Esq.

    Facsimile:
      (212) 885-5001

    If
      to
      Seller at:  

    

    3TP
      LLC

    5
      Cowdray
      Park Drive

    Greenwich,
      Connecticut 06831

    Facsimile:
      (212) 779-9928

     

    

    With
      a
      required copy to:

    

    Eaton
      & Van Winkle LLP

    3
      Park
      Avenue

    New
      York,
      New York 10016

    Attention:
      Vincent J. McGill, Esq.

    

    

    If
      to the
      Escrow

    
      	Agent
              at:	
              U.S.
                Bank National Association, as Escrow
                Agent

            

    

    100
      Wall
      Street, 16th
      floor

    New
      York,
      NY 10005

    ATTENTION:
      Corporate Trust Services

    Facsimile:
      212-809-5459

     

    
      
        
        

      

      
        A-2

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