Document:

LICENSE AGREEMENT

 

LICENSE AGREEMENT

 

This AGREEMENT is made as of this ______ day
of _____________, 1997, between Unique Mobility, Inc., a corporation organized
and existing under the laws of the State of Colorado, with its principal offices
at 425 Corporate Circle, Golden, Colorado 80401 ("Unique"), and
Invacare Corporation, an Ohio corporation, with its principal office at
899 Cleveland Street, Elyria, Ohio 44036-2 125 ("Invacare").

 

RECITALS

Unique owns or possesses and has the right to disclose and
license certain Licensed Technology relating to Licensed Motors that may prove
useful in medical products.

 

Invacare desires to enter into a Supply Agreement with Unique
Power Products, Inc. ("UPP") pursuant to which Invacare intends to
purchase and UPP intends to sell Licensed Motors incorporating Licensed
Technology for use in wheelchairs produced by Invacare.

 

Subject to the terms of this Agreement, Invacare and Unique
desire to provide for Invacare to be granted a license so that Invacare may
manufacture and sell Medical Products incorporating such Licensed Motors.

 

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

 

  
    
      
        
          
            
              
                
                  
                    SECTION ONE

                    
                    DEFINITIONS

                    
                  

                

              

            

          

        

      

    

  

As used herein the following terms shall have the meanings
set forth below:

 

1.1 "Affiliate" shall mean a Person that, directly
or indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with, a party to this Agreement.

 

1.2 "Confidentiality Agreement" shall mean the
Confidentiality Agreement between Invacare and Unique and UPP of even date
herewith.

 

1.3 "Medical Products" shall mean all medical and
health care products including but not limited to motorized wheelchairs and
other mobility products and equipment for use by persons with disabilities
and/or for home health care.

 

1.4 "Licensed Patents" shall mean any and all
patents and patent applications with respect to the Licensed Technology.

 

1.5 "Licensed Technology" shall mean all of
Unique's trade secrets, confidential know-how and technical information in
whatever form, whether or not patentable including all of the same embodied in
the Licensed Patents, now known or that becomes known to Unique from whatever
source during the term of this Agreement (provided that Unique has the right to
use and disclose such information) and related to the development, design,
manufacture, use or sale of Licensed Motors for use in Medical Products.

 

1.6 "Licensed Motors" shall mean electric motors
made pursuant to Licensed Technology for use in Medical Products.

 

1.7 "Person" shall mean an individual, firm, trust,
partnership, joint venture, association, company, an unincorporated association
or a government or any department or agency thereof

 

1.8 "Supply Agreement" shall mean the Supply
Agreement between Invacare and UPP of even date herewith.

 

 

SECTION TWO

 

GRANT OF LICENSE

 

2.1 Effective Date. The license rights granted to
Invacare by Unique pursuant to this Agreement shall become effective on the date
the Supply Agreement and the Confidentiality Agreement are effective.

 

2.2 License to Invacare.

 

(a) Unique grants to Invacare, and Invacare accepts, a
royalty bearing license to undertake any and all of the following activities
worldwide during the term and in accordance with the provisions of this
Agreement: (i) to use and practice Licensed Technology in the manufacture
of Licensed Motors as part of Medical Products, (ii) to sell, offer to
sell, ship, distribute, advertise and promote the Licensed Motors manufactured
or incorporated pursuant to clause (i), and (iii) to subcontract any
of the activities described in clause (i) of this Section 2.2(a) to
UPP. Invacare may subcontract the activities described in clause (I) of
this Section 2.2(a) to another supplier or perform them itself provided
that: (1) Invacare shall have complied with its obligation to purchase the
"Minimum Quantity" from UPP as provided in Section 2.1 of the
Supply Agreement, if it is in effect, and (2) Invacare shall pay to Unique
royalties (the "Royalties") as provided in Section 2.3 below. In
addition, such other supplier shall be required to enter into a confidentiality
agreement containing terms substantially the same as the terms of the
Confidentiality Agreement prior to disclosure to such supplier of any
confidential information of Unique. A copy of any such confidentiality agreement
shall be delivered to Unique immediately after it is signed.

 

(b) The license rights granted to Invacare pursuant to
Sections 2.2(a) shall be (i) exclusive (except as to UPP's right to
use the Licensed Technology to manufacture Licensed Motors for Invacare) and
(ii) non-transferable but with the right of sub-license in the area of
Medical Products to any Invacare Affiliate provided such Invacare Affiliate
delivers to Unique such written assurances as Unique may reasonably request to
evidence the agreement of such Invacare Affiliate to be bound by the terms of
this Agreement and to relinquish all of its rights as sublicensee in the event
it ceases to be an Invacare Affiliate.

 

(c) Notwithstanding the exclusivity provision contained in
Section 2.2(b)(i), Unique reserves the right (i) to use and practice
Licensed Technology in the manufacture of Licensed Motors as part of Medical
Products and (ii) to sell, offer to sell, ship, distribute, advertise and
promote the Licensed Motors manufactured or incorporated pursuant to
clause (i), contingent upon Invacare's written consent, which shall not be
unreasonably withheld. Prior to granting such consent, Invacare shall have the
sole right to determine that such license, use or sale (A) will not
directly or indirectly benefit a competitor of Invacare, (B) will not be a
competitive disadvantage to Invacare or (C) is not materially adverse to
Invacare's best interest. Unique reserves the unrestricted right to sell,
practice or license the Licensed Technology in applications other than the
Medical Products area.

 

2.3 Royalties.

 

(a) Invacare shall pay Unique Royalties equal to (i) [*
MATERIAL OMITTED AND SEPARATELY FILED PURSUANT TO CONFIDENTIAL TREATMENT
REQUEST*]%
of the Net Sales Price (as defined below) of Medical Products incorporating
Licensed Motors obtained from any source other than UPP or any Unique Affiliate
or (ii) in the case of Licensed Motors sold by Invacare without
incorporation into Medical Products,

[* MATERIAL OMITTED AND SEPARATELY FILED PURSUANT TO CONFIDENTIAL TREATMENT
REQUEST*]% of the Net Sales Price of the Licensed
Motors acquired from any source other than UPP or any Unique Affiliate.
Notwithstanding anything contained in this Section 2.3 that may be
interpreted to the contrary, Royalties under this Agreement shall not apply to
Licensed Motors purchased from UPP or any Unique Affiliate. References to
Licensed Motors in this Section 2.3 shall mean Licensed Motors acquired
from any source other than UPP or any Unique Affiliate.

 

(b) The Net Sales Price in the case of Licensed Motors resold
by Invacare shall mean Invacare's entire gross receipts for Licensed Motors less
only such of the following as may be included in such gross receipts
(collectively, "Allowances"): (i) all normal trade discounts
actually allowed; (ii) all sales, use and value added taxes, all import or
export duties and freight, insurance, shipping or transportation charges paid or
payable by Invacare in connection with the particular transaction involved and
not reimbursed or reimbursable by the purchaser or customer; and
(iii) amounts actually credited or refunded to the purchaser or customer
for returned or defective goods. The Net Sales Price shall not be further
reduced by any discount, allowance, deduction, rebate or franchise, income or
other tax of any kind.

 

(c) The Net Sales Price in the case of Medical Products into
which Licensed Motors are incorporated shall mean the entire gross receipts for
such Medical Products, less only Allowances, multiplied by a fraction, the
numerator of which is the total cost to Invacare for the Licensed Motors, and
the denominator of which is the total cost to Invacare for manufacturing the
Medical Products into which the Licensed Motors are incorporated. In calculating
Invacare's costs for the foregoing, Invacare may use any reasonable method it
normally uses to determine costs for other purposes, provided that any such
method shall be consistently applied to the numerator and denominator. For the
purposes of this paragraph, rebates shall be deemed to be an Allowance.

 

(d) Invacare may sell or transfer a Licensed Motor or Medical
Product incorporating a Licensed Motor to an Affiliate for sale to a third
party, and such sale or transfer to an Affiliate shall not be subject to the
Royalties (provided that any subsequent sale or transfer by such Affiliate to a
third party shall be subject to Royalties hereunder).

 

(e) During each Contract Year of the Renewal Term of the
Supply Agreement, Invacare shall either pay a minimum royalty on

[* MATERIAL OMITTED AND SEPARATELY FILED PURSUANT TO CONFIDENTIAL TREATMENT
REQUEST*] Motors
(as defined in the Supply Agreement) less the number of Motors manufactured by
UPP or any of its affiliates multiplied by

[* MATERIAL OMITTED AND SEPARATELY FILED PURSUANT TO CONFIDENTIAL TREATMENT
REQUEST*]% of the Net Sales Price as defined
in 2.3(b.) of this Agreement or revert to a non-exclusive license on the Motors.
Royalties on other Licensed Motors manufactured or sold during the term of this
Agreement shall be mutually agreed upon by the parties to this Agreement.

 

2.4 Examination of Records.

 

(a) Invacare shall keep full, complete and accurate business
records, files and books of accounting containing all the data reasonably
necessary for the accurate computation and verification of the Royalties to be
paid and the information to be provided by Invacare in this Section 2.
Invacare shall maintain such records, files and books for a period of five (5)
years from the making thereof

 

(b) Should Unique's examination of the reports disclose a
discrepancy in an amount greater than 5% of any Royalty payments, Unique shall
have the right to retain an independent auditor to conduct an audit of
Invacare's books and records, but only to the extent related to the Licensed
Motors and/or Medical Products into which Licensed Motors are incorporated. If
such audit discloses an underpayment, Invacare shall pay (i) all overdue
amounts (plus late charges and interest as provided herein) and if such
underpayment is in excess of 5% of the amount due (ii) all costs and
expenses of such audit.

 

2.5 Quarterly Reports. Within forty-five (45) days
after the close of each calendar quarter ending after the quarter in which
Invacare makes its first sale of a Licensed Motor or Medical Product containing
a Licensed Motor, Invacare shall deliver to Unique a written statement in form
reasonably acceptable to Unique and certified as correct by Invacare showing the
quantity and description of the Licensed Motors sold or incorporated into
Medical Products during the calendar quarter immediately preceding and shall
calculate the Net Sales Price of all such products sold during such calendar
quarter and the amount of the Royalties payable to Unique with respect to such
sales. For the purpose of such reports the Licensed Motors or Medical Products
containing such Licensed Motors shall be considered to be sold as of the date of
shipment.

 

2.6 Payment. Invacare shall, within 45 days
following the end of each calendar quarter, submit the report and remit the full
amount of Royalties that are due for the preceding quarter. All late Royalty
Payments shall (i) be subject to a late charge equal to 5% of the overdue
amount

 

2.7 Patent Markings. Invacare shall mark the Licensed
Motors in accordance with such reasonable instruction as may be given by Unique
from time to time during the term hereof in order to indicate that they
incorporate Licensed Motors which are protected by pending patents or the
Licensed Patents.

 

 

  
    
      
        
          
            
              
                
                  
                    SECTION THREE

                     

                  

                

              

            

          

        

        
        DISCLOSURE OF IMPROVEMENTS BY INVACARE

        
         

      

    

  

Invacare shall promptly disclose to Unique any improvements
to the Licensed Technology which are developed by Invacare or which come to
Invacare's knowledge and which Invacare has the right to disclose. All said
improvements shall be owned by Unique.

 

 

SECTION FOUR

 

PATENT INFRINGEMENT

 

4.1 Representation and Warranty. Unique represents and
warrants to Invacare that, to Unique's best knowledge, the Licensed Technology
does not infringe on the patent or other intellectual property rights of any
third party.

 

4 2 Invacare Notification: If at any time during the
term of this Agreement, Invacare becomes aware that any Person is infringing any
of the rights of Unique which have been licensed to Invacare hereunder, Invacare
shall promptly notify Unique as to such infringement and shall provide to Unique
the name and address, if known, of the alleged infringer and a description of
the alleged acts of infringement. Unique shall, at its own discretion and
expense, have the right to commence or prosecute any claim or suit against such
infringer in its own name or in the name of Invacare as deemed necessary by
Unique under the circumstances. Unique shall have the exclusive right to employ
counsel of its own selection and to direct and control the litigation or
settlement of any such claim or suit and shall be entitled to retain all amounts
awarded as damages in connection therewith. Should Unique choose not to pursue
the alleged infringer, or abandon any action, claim or suit it has commenced
against any such infringer, Invacare shall, at its option, have the right under
this Agreement to pursue the claim in its or Unique's name as deemed necessary
or elect to pay royalties at 50%. Invacare shall, under these circumstances,
have the exclusive right to employ counsel of its own selection and to direct
and control the litigation or settlement of any such claim or suit and shall be
entitled to retain all amounts awarded as damages in connection therewith Each
party shall cooperate with and give full assistance to the other in connection
with any action taken pursuant to this Section 4.2.

 

4.3 Prevention of Infringement. If Unique determines,
in the absence of any notice, that the Licensed Technology infringes the claims
of the patent or other proprietary rights of third parties, then Unique has the
right and will use its best efforts to avoid such possible infringement by
attempting to alter the Licensed Motors or Licensed Technology to render them
non-infringing. Should Invacare or Unique receive any notice of an alleged
infringement on the claims or proprietary rights of third parties, then Invacare
and Unique shall meet to discuss the response to such notice. Invacare shall
cooperate with and assist Unique with respect to any such response but shall
have no obligation to participate in the defense against any claim or suit
brought by such third parties. Should any Licensed Patent be declared in whole
or in part invalid, unless specifically declared exempt as a Licensed Patent in
writing and signed by both parties, then Invacare's royalty under
Section 2.3 shall be reduced by 50%.

 

4.4 Disclaimers; Indemnifications. Except as provided
in Section 4.1, UNIQUE ASSUMES NO RESPONSIBILITY FOR ANY PRODUCT
MANUFACTURED OR SOLD BY OR FOR INVACARE AND MAKES NO REPRESENTATION OR
WARRANTIES CONCERNING THE LICENSED TECHNOLOGY, EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. Invacare shall indemnify Unique or UPP from and against any and all
claims, losses, damages, liabilities and expenses ("Losses") arising
out of or in connection with Invacare's sale of Medical Products except to the
extent any such Losses are caused by design or manufacturing defects in the
Licensed Motors, which are, in whole or in part, caused by the negligence or
intentional acts of Unique or UPP.

 

 

SECTION FIVE

 

TERM; TERMINATION

 

5.1 Term. This Agreement shall become effective as of
the date and year first above set forth and, Subject to the provisions of
Section 5.2, shall continue in effect for five (5) years or
until the Supply Agreement terminates, whichever is longer.

 

5.2 Termination.

 

(a) Each of the following shall constitute an "Event of
Default" under this Agreement:

 

(i) Invacare shall have materially defaulted in the
performance or observance of any of the terms or provisions of this Agreement
and such default

remains uncured for a period of thirty (30) days after
delivery of written notice of default by Unique;

 

(ii) Unique shall have materially defaulted in the
performance or observance of any of the terms or provisions of this Agreement
and such default remains uncured for a period of thirty (30) days after delivery
of written notice of default by Invacare;

 

(iii) Unique shall commence bankruptcy, insolvency or similar
proceedings; or their creditors commence such proceedings against them and such
proceedings are not dismissed within ninety (90) days;

 

(iv) Invacare shall commence bankruptcy, insolvency or
similar proceedings; or their creditors commence such proceedings against them
and such proceedings are not dismissed within (90) ninety days;

 

(v) Invacare contests or otherwise challenges or attacks in
any court of competent jurisdiction, the rights of Unique in or to the Licensed
Technology except in connection with a breach of this Agreement by Unique; or

 

(vi) The Supply Agreement is terminated by Unique as a result
of a material breach of the Supply Agreement by Invacare.

 

(b) If any Event of Default shall occur, the non-defaulting
party may, in

addition to all other rights and remedies available to it,
terminate this Agreement by giving the defaulting
party written notice of termination.

 

(c) Any termination of this Agreement pursuant to
Section 5.2 shall be effective immediately upon delivery of written notice
of termination pursuant to Section 6.1.

 

5.3 Effect of Expiration. Upon the expiration
of this Agreement as provided in Section 5.1, Invacare shall cease to have
the right to exercise the license granted in Section 2.2, except for those
Motors already sold to Invacare but, not yet resold by Invacare, and shall
discontinue use of the license technology provided that, at Invacare's request,
Unique shall negotiate in good faith and an extension of the said License on
mutually agreed terms.

 

5.4 Effect of Termination.

 

(a) If this Agreement is terminated by Invacare as a result
of an Event of Default pursuant to Sections 5.2(a)(ii) or 5.2(a) (iii),
then Invacare shall, subject to the continued performance of its obligations
hereunder, (including, without limitation, payment of Royalties), be permitted
to continue to exercise its rights under Section Two hereof, except that the
royalties shall be reduced by 50%.

 

(b) Except as provided in Section 5.4(a), if this
Agreement is terminated by either party pursuant to Section 5.2(a), then
Invacare shall immediately upon such termination cease and desist from using any
of the Licensed Technology and the Trademark and from making, promoting or
selling any products containing same.

 

 

SECTION SIX

 

MISCELLANEOUS

 

6.1 Notices. All notices, requests, consents and other
communications required or permitted hereunder shall be in writing and shall be
personally delivered, electronically delivered by facsimile or telex, mailed by
overnight mail service or mailed by certified mail, return receipt requested,
postage prepaid to the following addresses or to such other addresses as the
parties hereto may designate in writing:

 

  
    
      
        If to Unique:

         

      

    

  

Unique Mobility, Inc.

425 Corporate Circle

Golden, CO 80401

Attention: Donald A. French

Telecopy No.: 303/278-7007

 

  
    
      
        If to Invacare:

         

      

    

  

Invacare Corporation

899 Cleveland Street

Elyria, OH 44036-2125

Attention: Thomas R. Miklich

Telecopy No.: 216/366-9008

 

All such notices, requests, consents and other communications
shall be deemed to be properly given when delivered personally, or, if sent by
U.S. mail, as of the date on the return receipt, or if sent by overnight mail
service, the next business day after delivery to the overnight mail service, or
if sent electronically, upon verification of receipt.

 

6.2 Assignment. This Agreement shall inure to the
benefit of and be binding upon any permitted successor and assign of the parties
hereto, provided that (a) Invacare may not, except as otherwise provided in
Section 2.2(c), assign this Agreement or any rights or obligations
hereunder without the prior written consent of Unique and (b) Unique may
assign or transfer its rights and obligations hereunder to (i) any of its
Affiliates, or (ii) with Invacare's written permission, to any purchaser of
substantially all the assets and business of Unique.

 

6.3 Entire Agreement. This Agreement, the Supply
Agreement and the Confidentiality Agreement constitute the entire agreement and
understanding of the parties hereto with respect to its Subject matter and
supersede any and all prior written and oral agreements with respect thereto.
This Agreement may not be changed, waived or discharged except by written
instrument signed by duly authorized representatives of the parties.

 

6.4 Compliance with Applicable Law. Invacare shall at
all times conduct its activities under this Agreement so as to ensure that its
activities do not cause Unique or any of its Affiliates to be in violation of
any applicable laws or regulations. Invacare shall at all times (a) refrain from
any conduct, including specific sales, which, in the reasonable opinion of
Unique, might cause Unique or its Affiliates to be in violation of any
applicable laws or regulations and (b) take such actions and cause Invacare's
agents, employees and representatives to take such actions as Unique may
reasonably request in order to ensure Invacare's compliance with its obligations
under this Section 6.4.

 

6.5 Governing Law. This Agreement shall be construed
in accordance with and governed by the laws of the State of Colorado.

 

6.6 Severability. Each section, subsection, phrase and
sentence of this Agreement constitutes a separate and distinct undertaking,
covenant and/or provision hereof. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law. In the event that any provision of this Agreement shall be
finally determined to be unlawful, such provision shall be deemed severed from
this Agreement, but every other provision of this Agreement shall remain in full
force and effect, and in substitution for any such provision held unlawful,
there shall be substituted a provision of similar import reflecting the original
intent of the parties hereto to the extent permissible under law.

 

6.7 Waiver. Any waiver by either party hereto of any
breach of, or failure to comply with or failure to enforce at any time, any of
the provisions of this Agreement shall not be construed as or constitute a
continuing waiver of such provision or a waiver of any other breach of, or
failure to comply with, any other provision of this Agreement, nor shall it in
any way affect the validity of' this Agreement or any part thereof or the right
of any party hereto thereafter to enforce each and every provision of this
Agreement.

 

6.8 Captions. The captions of the Sections and
subsections contained in this Agreement are provided for convenience or
reference only and shall not be deemed to constitute a part hereof

 

6.9 Public Announcements. Neither party shall without
prior written consent of the other party, make any public announcements or issue
any press release except as may, in the opinion of counsel, be necessary to
comply with the requirements of any law, government order or regulation.

 

 

IN WITNESS WHEREOF, the following duly authorized
representatives of the parties have executed this Agreement in two originals as
of the date first above written and each party retains one fully executed
original.

UNIQUE MOBILITY, INC.

 

By: /s/

Title:

 

INVACARE CORPORATION

 

By: /s/

Title:Prepared by MERRILL CORPORATION

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EXHIBIT 10.1  

 ESCROW AGREEMENT  

 GEN-NET LEASE INCOME TRUST, INC.  

        This Agreement is entered into this            day
of                        , 2002, by and among Citizens First Savings Bank (the "Escrow Agent") and
Gen-Net Lease Income Trust, Inc., a Michigan corporation (the "Company"). 

 
 

W I T N E S S E T H:    
  

        WHEREAS, the Company proposes to arrange for the offer for sales to investors through one or more registered
broker-dealers of up to 2,500,000 shares ("Shares") of common stock of the Company at a price of $10.00 per Share (the "Proceeds"); and 

        WHEREAS, the Company, through selected broker-dealers that are members of the National Association of Securities Dealers, Inc.,
(individually, a "Selected Dealer" and collectively, the "Selected Dealers"), intends to cause the sale of the Shares in a public offering (the "Offering"); and 

        WHEREAS, the Shares are being offered pursuant to the Prospectus of the Company filed with the Securities and Exchange Commission on
October 29, 2001 (the "Prospectus"); and 

        WHEREAS, the Company desires to establish an escrow account into which funds received from subscribers will be deposited pending
completion of the escrow period and Escrow Agent agrees to serve as escrow agent in accordance with the terms and conditions set forth herein. 

        NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter contained, the parties hereby agree as follows: 

        1.    Establishment of Escrow Account. After the date hereof, the parties shall establish one or more general deposit accounts
which are interest-bearing, money market escrow accounts with or under the
name of the Escrow Agent, which escrow account or accounts shall be entitled "Gen-Net Lease Income Trust, Inc. Escrow Account" (collectively, the "Escrow Account"). Each Selected
Dealer will instruct its subscribers to make their checks for subscriptions payable to the order of "Gen-Net Lease Income Trust, Inc". The Selected Dealer will promptly send such
checks along with the Written Account (as defined herein) to the Escrow Agent. Any checks received that are made payable to a party other than as specifically set forth above shall be returned by the
Escrow Agent to the Selected Dealer who submitted the check. The Escrow Agent shall return to the Selected Dealer who submitted the check any checks that are not submitted along with the Written
Account or other information of similar content satisfactory to the Escrow Agent. If any checks are received by the Escrow Agent from a party other than a Selected Dealer, the Escrow Agent shall
return such check to the person submitting the same. The Company will assist the Selected Dealers in forwarding the checks to the Escrow Agent and will provide the names and addressees of Selected
Dealers approved by the Company to submit checks directly to the Escrow Agent. Any person or entity not named on such current list shall not be considered a Selected Dealer. 

        2.    Escrow Period. The escrow period (the "Escrow Period") shall begin on the date the Escrow Account is opened and shall
terminate upon the earlier to occur of the following dates: 

	a.
	Upon
satisfaction of the conditions established under Section 4 below permitting the release of the Escrow Amount (the "Minimum Conditions");

	b.
	The
date that is one year from the date of the Prospectus or one year from the date of the Order of Effectiveness applicable to the Prospectus as issued by the Securities and Exchange
Commission, whichever is first; or

	c.
	The
effective date in the written notification which the Escrow Agent receives from Company of its determination to terminate the offering prior to the satisfaction of the Minimum
Conditions. 

 

        During
the Escrow Period, the Company is aware and understands that it is not entitled to any funds received into escrow and no amounts deposited in the Escrow Account shall be withdrawn
or subject to check or otherwise used by it or any other entity, except as herein provided, or be subject to the debts of the Company or any other entity. 

        3.    Deposits into the Escrow Account. Each approved Selected Dealer shall deliver directly to the Escrow Agent by noon of the
next business day following receipt thereof all monies received from subscribers for the payment of the Shares to the Escrow Agent for deposit into the Escrow Account together with a written account
of each sale (the "Written Account"), which account shall set forth, among other things, the subscriber's name and address, social security number, the number of Shares purchased, the amount paid
therefor, whether the consideration received was in the form of a check draft or money order and the Selected Dealer's name and address. All collected funds so deposited in the Escrow Account prior to
satisfaction of the Minimum Conditions are herein referred to as the "Escrow Amount", except for interest earned thereon. Notwithstanding anything to the contrary contained herein, after
(i) satisfaction of the Minimum Conditions and (ii) written notification from the Company, Selected Dealers shall continue to promptly transmit such checks, drafts and money orders,
along with the appropriate subscription documents, to the Escrow Agent and Escrow Agent shall thereafter collect the funds and promptly thereafter remit such funds (less commission payments deducted
from the non-U.S. sales of Shares per written instructions from the Company) to the Company. 

        4.    Disbursements from the Escrow Account. In the event that the Escrow Period terminates without satisfaction of the Minimum
Conditions, the Escrow Agent shall promptly refund directly to each subscriber, at the address indicated on the Written Account or such other address that Escrow Agent can determine, the amount
received from the subscriber with interest actually earned thereon, without deduction, penalty or expense to the subscriber, and the Escrow Agent shall notify the Company and the Selected Dealer of
its distribution of the funds. The purchase money returned to each subscriber shall be free and clear of any and all claims of the Company or any of its creditors. 

        Before
the Escrow Agent shall be properly authorized and empowered pursuant to this Agreement to release the Escrow Amount the following conditions (the "Minimum Conditions") must be
satisfied as determined by the Escrow Agent: 

	a.
	The
Escrow Amount contains a minimum of $3,000,000 (the "Minimum Escrow Amount");

	b.
	The
aforementioned minimum Escrow Amount was achieved prior to the earlier of the dates set forth in Section 2B above;

	c.
	The
Company has certified in a written notification to the Escrow Agent that the Escrow Amount constitutes the proceeds from valid subscriptions of the Shares pursuant to the terms of
the Prospectus; and

	d.
	Counsel
for the Company as named in the Prospectus issues to the Escrow Agent a confirmation letter stating that, to its knowledge, neither the Company nor the Company's offering of
Shares is subject to any outstanding cease and desist order or stop order issued by the Securities and Exchange Commission or any state securities regulatory agency. 

        Subscriptions
received after satisfaction of the Minimum Conditions shall be held by the Escrow Agent until such time, and from time to time, as the Company requests the release thereof.
At such time as the Company requests the release of the escrowed funds, the Company shall designate to the Escrow Agent, in writing, the names of the subscribers whose funds are being withdrawn and
the entity or account to which such funds are to be paid. For purposes of this Agreement, the term "collected funds" shall mean all funds received by the Escrow Agent which have cleared normal banking
channels and are in the form of cash. If the Escrow Amount is released to the Company, each subscriber will receive his pro rata share of any interest actually earned on the Escrow Amount based on the
date of 

2

 

deposit of such subscriber's subscription payment. With respect to subscribed Funds received held in Escrow Account and thereafter released once the Minimum Escrow Amount has been received and the
Company gives notice to the Escrow Agent to release said funds, the Escrow Agent shall transmit directly to each subscriber his pro rata share of such interest, at the address indicated on the Written
Account or such other address that Escrow Agent can determine. With respect to subscribed funds received by the Escrow Agent after the Minimum has been released to the Company, the Escrow Agent shall
not be required to transmit any interest earned on said funds to the subscriber. 

        5.    Collection Procedure. The Escrow Agent is hereby authorized to forward each check for collection and, upon collection of
the proceeds of each check, deposit the collected proceeds in the Escrow Account. As an alternative, the Escrow Agent may telephone the bank on which the check is drawn to confirm that the check has
been paid. 

        Any
check returned unpaid to the Escrow Agent shall be returned to the Selected Dealer that submitted the check, at the address indicated on the Written Account or such other address
that Escrow Agent can determine. In such cases, the Escrow Agent will promptly notify the Company of such return. 

        If
the Company rejects any subscription for which the Escrow Agent has already collected funds and upon written notice of such rejection to the Escrow Agent from the Company, the Escrow
Agent shall promptly issue a refund check to the rejected subscriber in the amount of the subscriber's check plus any interest credited thereon. If the Company rejects any subscription for which the
Escrow Agent has not yet collected funds but has submitted the subscriber's check for collection and upon written notice of such rejection to Escrow Agent from the Company, the Escrow Agent shall
promptly issue a check in the amount of the subscriber's check to the rejected subscriber after the Escrow Agent is satisfied that such uncollected funds are collected. If the Escrow Agent has not yet
submitted a rejected subscriber's check for collection and upon written notice to Escrow Agent from the Company is rejecting such subscription, the Escrow Agent shall promptly return the subscriber's
check directly to subscriber. 

        6.    Compensation of Escrow Agent. The Company shall pay the Escrow Agent compensation for its escrow services as set forth in
the attachment to this Escrow Agreement, said attachment being incorporated herein by reference. If it is necessary for the Escrow Agent to return funds to the
subscribers or to a Selected Dealer or if Escrow Agent does any other act or provides any other service as requested by the Company, the Company shall pay to the Escrow Agent an additional amount
sufficient to reimburse it for its actual cost in disbursing such funds or in doing such acts or providing such services. However, no such fee, reimbursement for costs and expenses, indemnification
for any damages incurred by the Escrow Agent, or any monies whatsoever shall be paid out of or chargeable to the funds on deposit in the Escrow Account. 

        7.    Miscellaneous. The Escrow Agent represents that it is not affiliated with the Company. In receiving items for deposit or
collection, the Escrow Agent acts only as the collecting agent for the Company, and assumes no responsibility beyond the exercise of ordinary care. All items received by the Escrow Agent for the
purposes of deposit or collection and all credit for items are provisional and subject to final payment. Monies received by Escrow Agent shall be invested only in investments permissible under SEC
Rule 15c 2-4. No withdrawals shall be permitted from the Escrow Account except as provided herein or as required by law or court order. The Escrow Agent may not at any time set off
any sums credited to the Escrow Account against any indebtedness owed to the Escrow Agent by any party. The Escrow Agent will not liable for default or negligence of its duly selected correspondents,
nor for losses in transit, and each correspondent so selected shall not be liable except for its own negligence. The Escrow Agent or its correspondents may send any item, directly or indirectly, to
any bank including the payor, and accept its draft or credit as conditional payment in lieu 

3

 

of cash, it may charge back any item at any time before final payment, whether returned or not, or any item drawn on the Escrow Agent which is not good at the close of business on the date deposited. 

        All
notices, communications or transmissions required or permitted by this Agreement shall be mailed by United States mail, first class. All notices, communications or transmissions sent
by Escrow Agent to a subscriber or Selected Dealer shall be sent to the address indicated on the Written Account or such other address that Escrow Agent can determine. 

        As
to all checks, drafts and other items for the payment of money, which now or hereafter constitute, or which are intended to constitute, any part of (or which are attempted to be
deposited in) the Escrow Account, the Escrow Agent shall have the right (and is hereby authorized) to endorse the same in the name of any party hereto and deposit the same in the Escrow Account. In
general, Escrow Agent shall have all of the rights afforded a collecting bank or presenting bank under the Uniform Commercial Code in effect in the State of Michigan; provided, however, that Escrow
Agent shall not have the right of set-off. 

        All
of the terms and conditions in connection with the Escrow Agent's duties and responsibilities, and the rights of the undersigned or anyone else, with respect to the Escrow Account,
are contained solely in this Agreement and in any signature card required by the Escrow Agent pertaining to the Escrow Account, and the Escrow Agent is not expected or required to be familiar with the
provisions of any other writing, understanding or agreement, and shall not be charged with any responsibility or liability in connection with the observance or non-observance of the
provisions of any such other writing, understanding or agreement, and no implied covenant or obligation on the part of the Escrow Agent shall be read into this Agreement; and the Escrow Agent shall
not be responsible in any manner for
any depreciations in the value of the Escrow Account or any of the items attempted to be deposited therein or the proceeds thereof, nor shall the Escrow Agent have any duty or responsibility
whatsoever to take any necessary steps to preserve any rights or enforce collection of any of the items attempted to be deposited in the Escrow Account or the proceeds thereof by legal proceedings or
otherwise. 

        The
Escrow Agent may act or refrain from acting in respect of any matter referred to herein in full reliance upon any by any with the advice of counsel which may be selected by it, and
shall be fully protected in so acting or in refraining from acting upon the advise of such counsel. 

        The
Escrow Agent may rely and shall be protected in acting upon any writing which may be submitted to it in connection with its duties hereunder and which is believed by it to be genuine
and to have been signed or presented by the proper party or parties and shall have no liability or responsibility with respect to the form, content, execution or validity thereof. 

        The
Escrow Agent shall have no responsibility or liability for any act or omission on its part, notwithstanding any demand or notice to the contrary by any party hereto or any other
person or entity, all subject to the sole limitation that the Escrow Agent act in good faith, and upon the exercise of its best judgment. Except as herein expressly provided, none of the provisions of
this Agreement shall require the Escrow Agent to expend or risk its own funds or otherwise incur financial liability or expense in the performance of any of its duties hereunder. 

        The
Escrow Agent is hereby authorized to comply with and obey all orders, judgments, decrees or writs entered or issued by any court, and in the event the Escrow Agent obeys or complies
with any such order, judgment, decree or writ of any court, in whole or in part, it shall not be liable to any of the parties hereto, nor to any other person or entity, by reason of such compliance,
notwithstanding that it shall be determined that any such order, judgment, decree or writ be entered without jurisdiction or be invalid for any reason or be subsequently reversed, modified, annulled,
satisfied or vacated. 

        The
Escrow Agent shall not be required to institute or defend any action or legal process involving any matter referred to herein which in any manner affects it or its duties or
liabilities hereunder to 

4

 

take any other action with reference to the Escrow Account not specifically agreed to therein, and the Escrow Agent shall not be responsible for any act or failure to act on its part except in the
case of its own bad faith or gross negligence. 

        Company
promises and agrees to indemnify and save the Escrow Agent from any and all claims, liabilities, judgments, attorney fees and other expenses of every kind and nature which may be
incurred by the Escrow Agent in any manner pertaining to, connected with or emanating from the Escrow Agent's acceptance of, and its performance under, this Agreement. 

        Should
any controversy arise between the undersigned or between any of the undersigned and any other person or entity with respect to this Agreement, or with respect to the ownership of
or the right to receive any sums from the Escrow Account, Escrow Agent shall have the right to institute a bill of interpleader in any court of competent jurisdiction to determine the rights of the
parties. Should a bill of interpleader be instituted, or should Escrow Agent become involved in litigation in any manner whatsoever connected with or pertaining to this Agreement or the Escrow
Account, the Company hereby binds and obligates itself, its heirs and legal representatives, to pay Escrow Agent, on demand, in addition to any charge made hereunder for acting as escrow agent,
reasonable attorney fees incurred by Escrow Agent, and any other disbursements, expenses, losses, costs and damages in connection with or resulting from such litigation. 

        Escrow
Agent may resign as escrow agent by giving all of the parties hereto not less than 15 days prior written notice of the effective date of such resignation. If on or prior to
the effective date of such resignation, Escrow Agent has not received joint written instructions from the parties hereto, it will thereupon deposit the Escrow Amount into the registry of a court of
competent jurisdiction. The parties hereto intend that a substitute escrow agent will be appointed to fulfill the duties of the Escrow Agent hereunder for the remaining term of this Agreement in the
event of the Escrow Agent's resignation, and if the parties hereto cannot agree on a substitute escrow agent, they will use their best efforts to derive a procedure to appoint a substitute escrow
agent. 

        The
Escrow Agent is acting solely as an escrow agent hereunder and not as a trustee, and the Escrow Agent has no fiduciary duties, obligations or liabilities under this Agreement. 

        All
of the terms, conditions and agreements contained herein shall be binding on each of the undersigned, jointly and severally, and each of the undersigned's heirs, successors, legal
representatives and assigns. 

        The
name of the Escrow Agent shall not be used in any way which may infer an association with the Company, other than that of escrow agent. 

        This
Agreement is entered into for the express benefit of the Company and the subscribers for Shares. 

        The
laws of the State of Michigan shall govern the interpretation of this Agreement. 

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

	 	 	GEN-NET LEASE INCOME TRUST, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Jerry D. Bringard, President

Agreed
to and accepted this            day of                        , 2002.

5

 

Citizens
First Savings Bank 

	By:
	 	 	 	 
	Printed Name:
	 	 	 	 
	Title:
	 	 	 	 

6

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