Document:

exv10wxoy

 

Exhibit 10(o)

ESCROW AGREEMENT

ATLAS RESOURCES PUBLIC #16-2007(B) L.P.

 

 

ATLAS RESOURCES PUBLIC #16-2007(B) L.P.

ESCROW AGREEMENT

     THIS AGREEMENT is made to be effective as of                     , 2007, by and among Atlas
Resources, LLC, a Pennsylvania limited liability company (the “Managing General Partner”), Anthem
Securities, Inc., a Pennsylvania corporation (“Anthem”), the “Dealer-Manager,” Atlas Resources
Public #16-2007(B) L.P., a Delaware limited partnership (the “Partnership”) and National City Bank
of Cleveland, Ohio, as escrow agent (the “Escrow Agent”).

WITNESSETH:

     WHEREAS, the Managing General Partner intends to offer publicly for sale to qualified
investors (the “Investors”) up to                      investor general partner interests and up to                     
limited partner interests in the Partnership (the “Units”).

     WHEREAS, each Investor will be required to pay his subscription in full on subscribing by
check or wire (the “Subscription Proceeds”).

     WHEREAS, the cost per Unit will be $10,000 subject to certain discounts of up to 10% ($1,000
per Unit) for sales to the Managing General Partner, its officers, directors and affiliates,
registered investment advisors and their clients, Selling Agents and their registered
representatives and principals, and investors who buy Units through the officers and directors of
the Managing General Partner. Larger subscriptions are permitted in $1,000 increments.

     WHEREAS, the Managing General Partner and Anthem have executed an agreement (“Anthem
Dealer-Manager Agreement”) under which Anthem will solicit subscriptions for Units in all states on
a “best efforts” “all or none” basis for Subscription Proceeds of $2,000,000 and on a “best
efforts” basis for the remaining Units on behalf of the Managing General Partner and the
Partnership and under which Anthem has been authorized to select certain members in good standing
of the National Association of Securities Dealers, Inc. (“NASD”) to participate in the offering of
the Units (“Selling Agents”).

     WHEREAS, the Anthem Dealer-Manager Agreement, the “Dealer-Manager Agreement,” provides for
compensation to the Dealer-Manager to participate in the offering of the Units, subject to the
discounts set forth above for certain Investors, which compensation includes, but is not limited
to, for each Unit sold:

	 	•	 	a 2.5% Dealer-Manager fee;

	 
	 	•	 	a 7% sales commission; and

	 
	 	•	 	an up to .5% reimbursement of the Selling Agents’ bona fide due diligence expenses;

all or a portion of which will be reallowed to the Selling Agents and wholesalers.

     WHEREAS, under the terms of the Dealer-Manager Agreement the Subscription Proceeds are
required to be held in escrow subject to the receipt and acceptance by the Managing General Partner
of the minimum Subscription Proceeds of $2,000,000, excluding any optional subscription by the
Managing General Partner, its officers, directors, and Affiliates.

     WHEREAS, the Units may also be offered and sold by the officers and directors of the Managing
General Partner without receiving a sales commission or other compensation on their sales.

1

 

     WHEREAS, no subscriptions to the Partnership will be accepted after the “Offering Termination
Date,” which is the first to occur of either:

	 	•	 	receipt of the maximum Subscription Proceeds of $                    ; or

	 
	 	•	 	December 31, 2007.

     WHEREAS, to facilitate compliance with the terms of the Dealer-Manager Agreement and Rule
15c2-4 adopted under the Securities Exchange Act of 1934, the Managing General Partner and the
Dealer-Manager desire to have the Subscription Proceeds deposited with the Escrow Agent and the
Escrow Agent agrees to hold the Subscription Proceeds under the terms and conditions set forth in
this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions contained in this
Agreement, the parties to this Agreement, intending to be legally bound, agree as follows:

	1.	 	Appointment of Escrow Agent. The Managing General Partner, the Partnership, and the
Dealer-Manager appoint the Escrow Agent as the escrow agent to receive and to hold the
Subscription Proceeds deposited with the Escrow Agent by the Dealer-Manager and the Managing
General Partner under this Agreement, and the Escrow Agent agrees to serve in this capacity
during the term and based on the provisions of this Agreement.

	 
	2.	 	Deposit of Subscription Proceeds. Pending receipt of the minimum Subscription Proceeds of
$2,000,000, the Dealer-Manager and the Managing General Partner shall deposit the Subscription
Proceeds of each Investor to whom they sell Units with the Escrow Agent and shall deliver to
the Escrow Agent a copy of the “Subscription Agreement,” which is the execution and
subscription instrument signed by the Investor to evidence his agreement to purchase Units in
the Partnership. In this regard, the Selling Agents shall promptly transmit any and all
checks received by them from Investors and the original executed Subscription Agreement to the
Dealer-Manager by noon of the next business day following receipt of the check by them. By
noon of the next business day following the Dealer-Manager’s receipt of the check and the
original executed subscription documents, the Dealer-Manager shall transmit the check and a
copy of the executed Subscription Agreement to the Escrow Agent.

	 
	 	 	Payment for each subscription for Units shall be in the form of a check or wire made payable
to “National City Bank of Cleveland, Ohio, Escrow Agent, Atlas Resources Public #16-2007(B)
L.P.,” pending receipt of the Partnership’s minimum Subscription Proceeds of $2,000,000.

	 
	3.	 	Investment of Subscription Proceeds. The Subscription Proceeds shall be deposited in an
interest bearing account maintained by the Escrow Agent as directed by the Managing General
Partner. This may be a savings account, bank money market account, short-term certificates of
deposit issued by a bank, or short-term certificates of deposit issued or guaranteed by the
United States government. The interest earned shall be added to the Subscription Proceeds and
disbursed in accordance with the provisions of Paragraph 4 or 5 of this Agreement, as the case
may be.

	 
	4.	 	Distribution of Subscription Proceeds. If the Escrow Agent:

	 	(a)	 	receives proper written notice from an authorized officer of the Managing
General Partner that at least the minimum Subscription Proceeds of $2,000,000 have been
received and accepted by the Managing General Partner; and

	 
	 	(b)	 	determines that Subscription Proceeds for at least $2,000,000 are Distributable
Subscription Proceeds;

Escrow
Agreement

2

 

	 	 	then the Escrow Agent shall promptly release and distribute to the Managing General Partner
the Distributable Subscription Proceeds plus any interest paid and investment income earned
on the Subscription Proceeds while held by the Escrow Agent in the escrow account. For
purposes of the Agreement, “Distributable Subscription Proceeds” are Subscription Proceeds
which have been deposited in the escrow account (1) by wire transfer; and (2) by check, but
in the case of checks only at the time that the Escrow Agent believes an amount of time has
passed which would usually be sufficient for Subscription Proceeds paid by check to have
returned unpaid by the bank on which the check was drawn and after a 5 day period from the
date of deposit.

	 
	 	 	After the occurrence of 4(a) and (b) above, Escrow Agent will provide a letter to the
Managing General Partner confirming receipt of checks and/or wires representing Subscription
Proceeds totaling at least $2,000,000 have been received and the anticipated date the funds
will be considered Distributable Subscription Proceeds.

	 
	 	 	After the initial distribution, any remaining Subscription Proceeds, plus any interest paid
and investment income earned on the Subscription Proceeds while held by the Escrow Agent in
the escrow account, shall be promptly released and distributed to the Managing General
Partner by the Escrow Agent as the Subscription Proceeds become Distributable Subscription
Proceeds after a 10 day period from the date of deposit.

	 
	 	 	The Managing General Partner shall immediately return to the Escrow Agent any Subscription
Proceeds distributed to the Managing General Partner or refunded to an Investor to the
extent that such Subscription Proceeds were paid by a check which is returned or otherwise
not collected for any reason prior or subsequent to termination of this Agreement.

	 
	5.	 	Separate Partnership Account. During the continuation of the offering after the Partnership
is funded with cleared Subscription Proceeds of at least $2,000,000 and the Escrow Agent
receives the notice described in Paragraph 4 of this Agreement, and before the Offering
Termination Date, any additional Subscription Proceeds may be deposited by the Dealer-Manager
and the Managing General Partner directly in a separate Partnership account which shall not be
subject to the terms of this Agreement.

	 
	6.	 	Distributions to Subscribers.

	 	(a)	 	If the Partnership is not funded as contemplated because less than the minimum
Subscription Proceeds of $2,000,000 have been received and accepted by the Managing
General Partner by twelve (12:00) p.m. (noon), local time, EASTERN STANDARD TIME on the
Offering Termination Date, or for any other reason, then the Managing General Partner
shall notify the Escrow Agent, and the Escrow Agent promptly shall distribute to each
Investor, for which Escrow Agent has a copy of the subscription agreement, a refund
check made payable to the Investor in an amount equal to the Subscription Proceeds of
the Investor, plus any interest paid or investment income earned on the Investor’s
Subscription Proceeds while held by the Escrow Agent in the escrow account.

	 
	 	(b)	 	If a subscription for Units submitted by an Investor is rejected by the
Managing General Partner for any reason after the Subscription Proceeds relating to the
subscription have been deposited with the Escrow Agent, then the Managing General
Partner promptly shall notify in writing, the Escrow Agent of the rejection, and the
Escrow Agent shall promptly distribute to the Investor for which Escrow Agent has a
copy of a Subscription Agreement, a refund check made payable to the Investor in an
amount equal to the Subscription Proceeds of the Investor, plus any interest paid or
investment income earned on the Investor’s Subscription Proceeds while held by the
Escrow Agent in the escrow account.

Escrow
Agreement

3

 

	7.	 	Compensation and Expenses of Escrow Agent. The Managing General Partner shall be solely
responsible for and shall pay the compensation of the Escrow Agent for its services under this
Agreement, as provided in Appendix 1 to this Agreement and made a part of this Agreement,
and the charges, expenses (including any reasonable attorneys’ fees), and other
out-of-pocket expenses incurred by the Escrow Agent in connection with the administration of
the provisions of this Agreement. The Escrow Agent shall have no lien on the Subscription
Proceeds deposited in the escrow account unless and until the Partnership is funded with
cleared Subscription Proceeds of at least $2,000,000 and the Escrow Agent receives the
proper written notice described in Paragraph 4 of this Agreement, at which time the Escrow
Agent shall have, and is granted, a prior lien on any property, cash, or assets held under
this Agreement, with respect to its unpaid compensation and nonreimbursed expenses, superior
to the interests of any other persons or entities.

	 
	8.	 	Duties of Escrow Agent. The Escrow Agent shall not be obligated to accept any notice, make
any delivery, or take any other action under this Agreement unless the notice or request or
demand for delivery or other action is in writing and given or made by the Managing General
Partner or an authorized officer of the Managing General Partner. In no event shall the
Escrow Agent be obligated to accept any notice, request, or demand from anyone other than the
Managing General Partner.

	 
	9.	 	Liability of Escrow Agent. The Escrow Agent shall not be liable for any damages, or have any
obligations other than the duties prescribed in this Agreement in carrying out or executing
the purposes and intent of this Agreement. However, nothing in this Agreement shall relieve
the Escrow Agent from liability arising out of its own willful misconduct or gross negligence.
The Escrow Agent’s duties and obligations under this Agreement shall be entirely
administrative and not discretionary. The Escrow Agent shall not be liable to any party to
this Agreement or to any third-party as a result of any action or omission taken or made by
the Escrow Agent in good faith. The parties to this Agreement will jointly and severally
indemnify the Escrow Agent, hold the Escrow Agent harmless, and reimburse the Escrow Agent
from, against and for, any and all liabilities, costs, fees and expenses (including reasonable
attorney’s fees) the Escrow Agent may suffer or incur by reason of its execution and
performance of this Agreement. If any legal questions arise concerning the Escrow Agent’s
duties and obligations under this Agreement, then the Escrow Agent may consult with its
counsel and rely without liability on written opinions given to it by its counsel.

	 
	 	 	The Escrow Agent shall be protected in acting on any written notice, request, waiver,
consent, authorization, or other paper or document which the Escrow Agent, in good faith,
believes to be genuine and what it purports to be.

	 
	 	 	If there is any disagreement between any of the parties to this Agreement, or between them
or any other person, resulting in adverse claims or demands being made in connection with
this Agreement, or if the Escrow Agent, in good faith, is in doubt as to what action it
should take under this Agreement, then the Escrow Agent may, at its option, refuse to comply
with any claims or demands on it or refuse to take any other action under this Agreement, so
long as the disagreement continues or the doubt exists. In any such event, the Escrow Agent
shall not be or become liable in any way or to any person for its failure or refusal to act
and the Escrow Agent shall be entitled to continue to so refrain from acting until the
dispute is resolved by the parties involved.

	 
	 	 	National City Bank of Cleveland, Ohio is acting solely as the Escrow Agent and is not a
party to, nor has it reviewed or approved any agreement or matter of background related to
this Agreement, other than this Agreement itself, and has assumed, without investigation,
the authority of the individuals executing this Agreement to be so authorized on behalf of
the party or parties involved.

	 
	10.	 	Resignation or Removal of Escrow Agent. The Escrow Agent may resign as such after giving
thirty days’ prior written notice to the other parties to this Agreement. Similarly, the
Escrow Agent may be removed and replaced after receiving thirty days’ prior written notice
from the other parties to this

Escrow
Agreement

4

 

	 	 	Agreement. In either event, the duties of the Escrow Agent
shall terminate thirty days after the date of the notice (or as of an earlier date as may be
mutually agreeable); and the Escrow Agent shall then
deliver the balance of the Subscription Proceeds (and any interest paid or investment income
earned thereon while held by the Escrow Agent in the escrow account) in its possession to a
successor escrow agent appointed by the other parties to this Agreement as evidenced by a
written notice filed with the Escrow Agent.

	 
	 	 	If the other parties to this Agreement are unable to agree on a successor escrow agent or
fail to appoint a successor escrow agent before the expiration of thirty days following the
date of the notice of the Escrow Agent’s resignation or removal, then the Escrow Agent may
petition any court of competent jurisdiction for the appointment of a successor escrow agent
or other appropriate relief. Any resulting appointment shall be binding on all of the
parties to this Agreement.

	 
	 	 	On acknowledgment by any successor escrow agent of the receipt of the then remaining balance
of the Subscription Proceeds (and any interest paid or investment income earned thereon
while held by the Escrow Agent in the escrow account), the Escrow Agent shall be fully
released and relieved of all duties, responsibilities, and obligations under this Agreement.

	 
	11.	 	Termination. This Agreement shall terminate and the Escrow Agent shall have no further
obligation with respect to this Agreement after the distribution of all Subscription Proceeds
(and any interest paid or investment income earned thereon while held by the Escrow Agent in
the escrow account) as contemplated by this Agreement or on the written consent of all the
parties to this Agreement.

	 
	12.	 	Notice. Any notices or instructions, or both, to be given under this Agreement shall be
validly given if set forth in writing and mailed by certified mail, return receipt requested,
or by facsimile with confirmation of receipt (originals to be followed in the mail), or by a
nationally recognized overnight courier, as follows:

If to the Escrow Agent:

National City Bank of Cleveland, Ohio

c/o Allegiant Institutional Services

200 Public Square, 5th Floor

Cleveland, Ohio 44114

Attention: John McGregor LOC 01-86PS-01

Phone: (216) 222-2641

Facsimile: (216) 222-0178

If to the Managing General Partner:

Atlas Resources, LLC

311 Rouser Road

P.O. Box 611

Moon Township, Pennsylvania 15108

Attention: Karen A. Black

Phone: (412) 262-2830

Facsimile: (412) 262-7430

Escrow
Agreement

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If to Anthem:

Anthem Securities, Inc.

311 Rouser Road

P.O. Box 926

Moon Township, Pennsylvania 15108

Attention: Justin T. Atkinson

Phone: (412) 262-1680

Facsimile: (412) 262-7430

	 	 	Any party may designate any other address to which notices and instructions shall be sent by
notice duly given in accordance with this Agreement.

	 
	13.	 	Miscellaneous.

	 	(a)	 	This Agreement shall be governed by and construed in accordance with the laws
of the Commonwealth of Pennsylvania.

	 
	 	(b)	 	This Agreement shall be binding on and shall inure to the benefit of the
undersigned and their respective successors and assigns.

	 
	 	(c)	 	This Agreement may be executed in multiple copies, each executed copy to serve
as an original.

	14.	 	Acknowledgements. The parties hereto and subscribers acknowledge Escrow Agent has not reviewed and is not
making any recommendations with respect to the securities offered. During the escrow period, the proceeds from the offering are not
subject to claims by creditors, by the Partnership, the
Partnership’s affiliates, the escrow agent, or by the selling
agents until the proceeds have been released to the Partnership
pursuant to the terms of this Agreement.

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

	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK OF CLEVELAND, OHIO 
As Escrow Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

John McGregor, Administrator
	 	 
	 
	 	 	 	 	 	 
	 	 	ATLAS RESOURCES, LLC	 	 
	 	 	A Pennsylvania limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Karen A. Black, Vice President – Partnership Administration
	 	 

Escrow
Agreement

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	 	 	ANTHEM SECURITIES, INC.	 	 
	 	 	A Pennsylvania corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Justin T. Atkinson, President
	 	 
	 
	 	 	 	 	 	 
	 	 	ATLAS RESOURCES PUBLIC #16-2007(B) L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	ATLAS RESOURCES, LLC	 	 
	 

	 	 	 	Managing General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Karen A. Black, Vice President – Partnership Administration
	 	 

Escrow
Agreement

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APPENDIX I TO ESCROW AGREEMENT

Compensation for Services of Escrow Agent

			
	 	 	 
	REVIEW AND ACCEPTANCE FEE:
	 	$ waived

For providing initial review of the Escrow Agreement and all supporting documents and for initial
services associated with establishing the Escrow Account. This is a one (1) time fee payable upon
the opening of the account.

	 	 	 	 	 	 	 
	I.
	 	Annual Administrative Fee Payable in Advance (or any portion thereof)	 	$	3000.00	 
	 
	 	 	 	 	 	 
	II.
	 	Remittance of checks returned to subscribers (set out in section 6 of the governing agreement)	 	 	20.00	 
	 
	 	 	 	 	 	 
	III.
	 	Wire transfers	 	 	n/a	 
	 
	 	 	 	 	 	 
	IV.
	 	Purchase or Sale of Securities	 	 	100.00	 

V. Investments (document limits investment to a checking or savings account, or certificates of
deposit) such products offered by any National City Bank retail branch)- fees are subject to the
type of account the Managing General Partner directs the Escrow Agent to open and to be governed by
the Escrow Agreement.

EXTRAORDINARY SERVICES:

For any services other than those covered by the aforementioned, a special per hour charge will be
made commensurate with the character of the service, time required and responsibility involved.
Such services include but are not limited to excessive administrative time, attendance at closings,
specialized reports, and record keeping, unusual certifications, etc.

Managing General Partner agrees to report all funds in accordance with appropriate tax treatment.

FEE SCHEDULE IS SUBJECT TO ANNUAL REVIEW AND/OR ADJUSTMENT UPON AMENDMENT THERETO.

Escrow
Agreement

8Exhibit 10.1 to Insignia Systems, Inc. Form 8-K dated February 20, 2007

EXHIBIT 10.1

AMENDED CHANGE IN CONTROL SEVERANCE AGREEMENT

AGREEMENT made as of this 20th day of February, 2007 by and between Insignia Systems, Inc., a Minnesota corporation (the “Company”), and Scott Simcox (the “Executive”).

WHEREAS, the Company, as a publicly held corporation, recognizes the possibility of a change in control of the Company, and that such possibility and the uncertainty and questions which it may raise could result in Executive leaving the Company or in distraction of Executive in the performance of Executive's duties to the detriment of the Company and its shareholders; and

WHEREAS, it is in the best interests of the Company and its shareholders to encourage the availability of Executive's services to parties who may in the future acquire control of the Company and to provide an incentive for Executive to remain with the Company during any period of uncertainty leading up to a change in control;

WHEREAS, based on the foregoing, the Company wishes to provide that, in the event of a change in control of the Company, Executive will receive certain benefits if Executive's employment by the Company ceases for certain reasons within a specified period following the change in control;

NOW, THEREFORE, in consideration of the foregoing and the provisions of this Agreement, the parties hereto agree as follows:

1.     General Provisions. This Company shall pay Executive a lump sum severance payment if Executive ceases to be employed by the Company within two years following a Change in Control (as defined below) for certain reasons specified in this Agreement. Nothing in this Agreement alters the “at will” nature of Executive's employment by the Company. This means that either before or after a Change in Control, either the Company or the Executive may terminate Executive's employment by the Company, either with or without cause, for any reason or no reason. This Agreement relates only to whether Executive shall be entitled to certain severance payments following cessation of employment. No right to severance payments shall arise under this Agreement unless and until there occurs a Change in Control.

2.            Definition of Change in Control. For purposes of this Agreement, a “Change in Control” shall be considered to occur if any of the following occurs after the date of this Agreement:

	
             
 	
            (a)
 	
            the closing of the sale of all or substantially all of the assets of the Company;
 

	
             
 	
            (b)
 	
            the closing of a merger, consolidation or corporate reorganization of the Company which results in the stockholders of the Company immediately prior to such event owning less than 50% of the combined voting power of the Company's capital stock immediately following such event;
 

	
             
 	
            (c)
 	
            the acquisition by any person (or persons who would be considered a group under the federal securities laws) who as of the date of this Agreement own less than 
 

25% of the voting power of the Company's outstanding voting securities, of beneficial ownership of securities representing 40% or more of the combined voting power or the Company's then outstanding securities; or

	
             
 	
            (d)
 	
            the election to the Company's board of directors of persons who constitute a majority of the board of directors and who were not nominated for election by the board of directors as part of a management slate.
 

3.            Amount of Severance Payment. If a Change in Control occurs after the date of this Agreement and Executive subsequently ceases to be employed by the Company prior to the second anniversary of the Change in Control, then the Company shall pay Executive a lump sum severance payment equal to twenty-four (24) months of Executive's gross base salary which was in effect immediately prior to the Change in Control. The Company shall be entitled to deduct from the lump sum severance payment any amounts which the Company is required by law to withhold from such a payment.

Payment due under this Agreement shall be made immediately after Executive’s termination of employment except that if Executive is then a “key employee” of the Company, as defined in Section 409A of the Internal Revenue Code, payment shall be made on the date which is six months after termination of employment, or to his heirs upon his death if earlier.

4.            Circumstances in Which Severance Shall Not Be Paid. Notwithstanding the provisions of Section 3 above, the Company shall not be obligated to make any lump sum severance payment under this Agreement if, following a Change in Control, Executive ceased to be employed by the Company due to:

	
             
 	
            (a)
 	
            Executive's death; 
 

	
             
 	
            (b)
 	
            termination of Executive by the Company for Cause (as defined below); or
 

	
             
 	
            (c)
 	
            resignation by Executive for any reason other than a Good Reason (as defined below).
 

For purposes of this Section 4, the following defined terms have the meanings indicated:

“Cause” means termination by the Company of Executive's employment due to:

	
             
 	
            (1)
 	
            conviction of a felony;
 

	
             
 	
            (2)
 	
            the willful and continued failure of Executive to perform his essential duties; or
 

	
             
 	
            (3)
 	
            gross misconduct which is materially injurious to the Company;
 

provided, however, that the matters referred to in clause (2) or (3) shall not be deemed to constitute “Cause” unless the Company has first given Executive written notice specifying the conduct by Executive that constitutes such failure or gross misconduct and Executive has failed to remedy the same to the reasonable satisfaction of the Company's Board of Directors.

 

2

“Good Reason” shall mean any of the following, unless Executive gives his or her prior written consent:

	
             
 	
            (1)
 	
            the assignment to Executive of any duties inconsistent with Executive's status or position with the Company, or a substantial reduction in the nature or status of Executive's responsibilities from those in effect immediately prior to the Change in Control;
 

	
             
 	
            (2)
 	
            a reduction by the Company in Executive's annual base salary in effect immediately prior to the Change in Control;
 

	
             
 	
            (3)
 	
            the relocation of the Company's principal executive offices to a location more than fifty miles from Minneapolis, Minnesota or the Company requiring Executive to be based anywhere other than the Company's principal executive offices, except for required travel on the Company's business to an extent substantially consistent with Executive's prior business travel obligations;
 

	
             
 	
            (4)
 	
            the failure by the Company to continue to provide Executive with benefits at least as favorable to those enjoyed by Executive under any of the Company's pension, life insurance, medical, health and accident, disability, deferred compensation, incentive awards, incentive stock options, or savings plans in which Executive was participating at the time of the Change in Control, the taking of any action by the Company which would directly or indirectly materially reduce any of such benefits or deprive Executive of any material fringe benefit enjoyed at the time of the Change in Control, or the failure by the Company to provide Executive with the number of paid vacation days to which Executive is entitled at the time of the Change in Control, provided, however, that the Company may amend any such plan or programs as long as such
amendments do not reduce any benefits to which Executive would be entitled upon termination; or
 

	
             
 	
            (5)
 	
            any termination of Executive's employment which is not made pursuant to a Notice of Termination satisfying the requirements in Section 5 below.
 

5.            Notice of Termination. Any termination of Executive's employment by the Company or by Executive shall be communicated by written Notice of Termination to the other party hereto in accordance with the notice provisions of Section 6. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which indicates the specific facts and circumstances claimed to provide the basis for termination.

 

6.            Method of Giving Notice. All notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered or certified mail, return receipt requested, postage pre-paid, addressed to the last known residence address of the Executive, or in the case of the Company, to its principal office to the attention of each of the then directors of the Company with a copy to its Secretary, or to such other address as either party may have 

 

3

furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

 

7.            Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the parties. No waiver by either party thereto at any time of any breach by the other party to this Agreement, or of compliance with any condition or provision of this Agreement to be performed by such other party, shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or similar time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. This Agreement shall be governed by the laws of the State
of Minnesota. This Agreement supersedes all prior agreements on this subject matter.

 

8.            Arbitration of Disputes. Any and all disputes between the parties relating to this Agreement or any alleged breach of this Agreement shall be resolved by binding arbitration held in the City of Minneapolis pursuant to the Commercial Arbitration Rules of the American Arbitration Association before a single arbitrator. In the event that Executive is determined by the arbitrator to be the prevailing party in such an arbitration, the arbitrator shall award Executive, as an additional element of damages, his or her attorneys' fees and legal expenses actually incurred in the enforcement of this Agreement and in the arbitration proceeding. Judgment on the arbitration award may be entered by any court having jurisdiction.

 

9.            Successors. This Agreement shall be binding upon and inure to the benefit of the respective heirs, personal representatives, successors and assigns of the parties hereto.

 

10.          Executive Benefits.  The benefits provided by this Agreement are in lieu of all other severance, change in control, or similar benefits payable to Executive due to termination following a Change in Control.

 

11.          Release.  As a condition to receiving any benefits under this Agreement, Executive shall be required to deliver a release to the Company releasing the Company and its shareholder, directors, officers, employees, agents and affiliates from any and all claims relating to Executive’s employment and termination of employment.

 

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

	
            EXECUTIVE:
 	
            INSIGNIA SYSTEMS, INC.
 
	 
	
            /s/   Scott J. Simcox
 	
             
 	
            By   
 	
            /s/   Scott F. Drill
 
	 
	
             
 	
             
 	
            Its  
 	
            President and CEO
 

 

 

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