Document:

Point Acquisition Corp.: Exhibit 10.3 - Prepared by TNT Filings Inc.

  

Exhibit 10.3

 

MAKE GOOD ESCROW AGREEMENT  

 

This Make Good Escrow Agreement (the “Make Good Agreement”), dated effective as of April 25, 2007, is entered into by and among Point Acquisition Corporation, a Nevada corporation (the “Company”), Brean Murray, Carret & Co., LLC, as agent (“Brean Murray”), Mr. Shunqing Zhang, in his individual capacity (“Make Good Pledgor”), and Securities Transfer Corporation, as escrow agent (“Escrow Agent”).

 

WHEREAS, each of the investors in the private offering of securities of the Company (the “Investors”) has entered into a Securities Purchase Agreement, dated April 25, 2007 (the “Purchase Agreement”), evidencing their participation in the Company's private offering (the “Offering”) of securities.  As an inducement to the Investors to participate in the Offering and as set forth in the Purchase Agreement, Make Good Pledgor agreed to place the Escrow Shares (as defined in Section 2 hereto) into escrow for the benefit of the Investors in the event the Company failed to satisfy certain After-Tax Net Income thresholds.
 

 

WHEREAS, pursuant to the requirements of the Purchase Agreement, the Company and Make Good Pledgor have agreed to establish an escrow on the terms and conditions set forth in this Make Good Agreement;
 

 

WHEREAS, Brean Murray has agreed to act as agent for the Investors in connection with this Make Good Agreement pursuant to the terms and conditions of that certain Agency Agreement, dated as of the date hereof, by and among Brean Murray and the Investors;

 

WHEREAS, the Escrow Agent has agreed to act as escrow agent pursuant to the terms and conditions of this Make Good Agreement; and
 

 

WHEREAS, all capitalized terms used but not defined herein shall have the meanings assigned them in the Purchase Agreement;
 

 

NOW, THEREFORE, in consideration of the mutual promises of the parties and the terms and conditions hereof, the parties hereby agree as follows:
 

 

1. Appointment of Escrow Agent. Make Good Pledgor and the Company hereby appoint Escrow Agent to act in accordance with the terms and conditions set forth in this Make Good Agreement, and Escrow Agent hereby accepts such appointment and agrees to act in accordance with such terms and conditions.
 

 

2. Establishment of Escrow.  Within three Business Days following the closing of the Offering, Make Good Pledgor shall deliver, or cause to be delivered, to the Escrow Agent certificates evidencing an aggregate of 2,673,796 shares of the Company’s common stock, par value $0.001 per share (the “Escrow Shares”), along with bank signature stamped stock powers executed in blank (or such other signed instrument of transfer acceptable to the Company’s Transfer Agent).  One-half of the Escrow Shares (the “Potential 2007 Make Good Shares”) shall be pledged to secure the Company’s commitment to achieve the 2007 Guaranteed ATNI (as defined below) and one-half of the Escrow Shares (the “Potential 2008 Make Good Shares”) shall be pledged to secure the Company’s commitment to achieve the 2008 Guaranteed ATNI (as defined below).  As used in this Make Good Agreement, “Transfer Agent” means PacWest Transfer, LLC, or such other entity hereafter retained by the Company as its stock transfer agent as specified in a writing from the Company to the Escrow Agent and Brean Murray.

 

 

3. Representations of Make Good Pledgor.  Make Good Pledgor hereby represents and warrants to Brean Murray as follows:
 

 

(i) All of the Escrow Shares are validly issued, fully paid and nonassessable shares of the Company, and free and clear of all pledges, liens and encumbrances.  Upon any transfer of Escrow Shares to Investors hereunder, Investors will receive full right, title and authority to such shares as holders of Common Stock of the Company.

 

(ii) Performance of this Make Good Agreement and compliance with the provisions hereof will not violate any provision of any applicable law and will not conflict with or result in any breach of any of the terms, conditions or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon, any of the properties or assets of Make Good Pledgor pursuant to the terms of any indenture, mortgage, deed of trust or other agreement or instrument binding upon Make Good Pledgor, other than such breaches, defaults or liens which would not have a material adverse effect taken as a whole.
 

 

4. Disbursement of Escrow Shares.  

 

a.    Fiscal Year Ended December 31, 2007.  Make Good Pledgor agrees that if the After-Tax Net Income for the fiscal year ended December 31, 2007 reported in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2007, as filed with the Commission (the “2007 Annual Report”) is less than $8,200,000 (the “2007 Guaranteed ATNI”), Brean Murray shall provide written instruction (with a copy to the Company) and direct the Escrow Agent to instruct the Transfer Agent to transfer to each Investor (in such Investor’s name), on a pro rata basis (based upon such Investor’s Investment Amount specified on Exhibit A attached hereto relative to the aggregate Investment Amounts of all Investors specified on Exhibit A attached hereto), for no additional consideration, a number of shares of Common Stock (as equitably adjusted for any stock splits, stock combinations, stock dividends or similar transactions) in accordance with the table below, based on the level of After-Tax Net Income reported in the 2007 Annual Report (such shares issuable to the Investors, the “2007 Make Good Shares”):

 

	Percentage of
    Potential 2007 Make Good	After Tax Net
    Income Reported in
	
    Shares Issuable to Investors	
    2007 Annual Report
	 	 
	25%	
    $7,000,000-$8,199,999.99
	 	 
	50%	
    $6,000,000-$6,999,999.99
	 	 
	75%	
    $5,000,000-$5,999,999.99
	 	 
	100%	Less than
    $5,000,000 

2

 

The Escrow Agent need only rely on the letter of instruction from Brean Murray in this regard and will disregard any contrary instructions.  The Escrow Agent shall be entitled to rely on the calculations provided by Brean Murray in releasing the Escrow Shares for disbursement, with no further responsibility to calculate or confirm amounts.  If the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2007 specify that the 2007 Guaranteed ATNI shall have been achieved, no transfer of the 2007 Make Good Shares shall be required by this Section 4(a) and Brean Murray shall provide written instruction (with a copy to the Company) to the Escrow Agent to return all 2007 Make Good Shares deposited with the Escrow Agent to the Make Good Pledgor within 7 Business Days after the date on which the 2007 Annual Report is filed with the Commission; provided that Escrow Agent is given notice of the 2007 Annual Report’s filing and results.  Subject to the timing of the Transfer Agent, transfers of 2007 Make Good Shares required under this Section 4(a) shall be made to Investors within 7 Business Days after the date on which the 2007 Annual Report is filed with the Commission; provided that Escrow Agent is given notice of the 2007 Annual Report’s filing and results.  In the event that the 2007 Guaranteed ATNI is not achieved based on the Company's consolidated financial statements for the fiscal year ended December 31, 2007, as filed with the Commission, the Company has agreed that Brean Murray will provide written instruction to the Escrow Agent and the Company with regard to the distribution of 2007 Make Good Shares, up to an amount to each Investor as set forth on Exhibit A attached hereto.  The Escrow Agent need only rely on the letter of instruction from Brean Murray in this regard and will disregard any contrary instructions.  The Escrow Agent shall be entitled to rely on the calculations provided by Brean
Murray in releasing the Escrow Shares for disbursement, with no further
responsibility to calculate or confirm amounts. 

 

b.    Fiscal Year Ending December 31, 2008.  Make Good Pledgor agrees that if the After-Tax Net Income for the fiscal year ended December 31, 2008 reported in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2008, as filed with the Commission (the “2008 Annual Report”) is less than $13,500,000 (the “2008 Guaranteed ATNI”), Brean Murray shall provide written instruction (with a copy to the Company) and direct the Escrow Agent to instruct the Transfer Agent to transfer to each Investor (in such Investor’s name), on a pro rata basis (based upon such Investor’s Investment Amount specified on Exhibit A attached hereto relative to the aggregate Investment Amounts of all Investors specified on Exhibit A attached hereto), for no additional consideration, a number of shares of Common Stock (as equitably adjusted for any stock splits, stock combinations, stock dividends or similar transactions) in accordance with the table below, based on the level of After-Tax Net Income reported in the 2008 Annual Report (such shares issuable to the Investors, the “2008 Make Good Shares”):

 

	Percentage of
    Potential 2008 Make Good	After Tax Net
    Income Reported in
	
    Shares Issuable to Investors	
    2008 Annual Report
	 	 
	25%	
    $12,000,000-$13,499,999.99
	 	 
	50%	
    $10,500,000-$11,999,999.99
	 	 
	75% 	
    $9,000,000-$10,499,999.99 
	 	 
	100%	Less than
    $9,000,000 

3

 

The Escrow Agent need only rely on the letter of instruction from Brean Murray in this regard and will disregard any contrary instructions.  The Escrow Agent shall be entitled to rely on the calculations provided by Brean Murray in releasing the Escrow Shares for disbursement, with no further responsibility to calculate or confirm amounts.  If the Company’s audited consolidated financial statements for the fiscal year ended December 31, 2008 specify that the 2008 Guaranteed ATNI shall have been achieved, no transfer of the 2008 Make Good Shares shall be required by this Section and Brean Murray shall provide written instruction (with a copy to the Company) to the Escrow Agent to return all 2008 Make Good Shares deposited with the Escrow Agent to the Make Good Pledgor within 7 Business Days after the date on which the 2008 Annual Report is filed with the Commission, provided that Escrow Agent is given notice of the 2008 Annual Report’s filing and results.  Subject to the timing of the Transfer Agent, transfers of 2008 Make Good Shares required under this Section shall be made to Investors within 7 Business Days after the date on which the 2008 Annual Report is filed with the Commission, provided that Escrow Agent is given notice of the 2008 Annual Report’s filing and results.  In the event that the 2008 Guaranteed ATNI is not achieved based on the Company's consolidated financial statements for the fiscal year ended December 31, 2008, as filed with the Commission, the Company has agreed that Brean Murray will provide written instruction to the Escrow Agent and the Company with regard to the distribution of 2008 Make Good Shares, up to an amount to each Investor as set forth on Exhibit A attached hereto.  The Escrow Agent need only rely on the letter of instruction from Brean Murray in this regard and will disregard any contrary instructions.  The Escrow Agent shall be entitled to rely on the calculations provided by Brean Murray in releasing the Escrow Shares for disbursement, with no further responsibility to calculate or confirm amounts.

 

c.    Notwithstanding anything to the contrary contained herein, in the event that the release of any of the 2007 Make Good Shares or the 2008 Make Good Shares to the Investors or the Make Good Pledgor or any other party is deemed to be an expense or deduction from revenues/income of the Company for the applicable year, as required under GAAP, then such expense or deduction and any expense, charge or deduction relating thereto, shall be excluded for purposes of determining whether or not the 2007 Guaranteed ATNI or the 2008 Guaranteed ATNI has been achieved by the Company.

 

d.    The Make Good Pledgor’s obligation to transfer shares of Common Stock to Investors pursuant to Section 4.11 of the Purchase Agreement shall run only to the benefit of the Investors who hold Shares when the 2007 Guaranteed ATNI and the 2008 Guaranteed ATNI are calculated, and any release of the 2007 Make Good Shares or the 2008 Make Good Shares to the Investors shall be distributed on a pro rata basis, based on the number of Shares then held by each such Investor, for no additional consideration.

 

e.    The Company and Make Good Pledgor covenant and agree to provide the Escrow Agent with certified tax identification numbers by furnishing appropriate forms W-9 or W-8 and such other forms and documents that the Escrow Agent may request, including appropriate W-9 or W-8 forms for each Investor.  The Company and Make Good Pledgor understand that if such tax reporting documentation is not provided and certified to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue Code of 1986, as amended, and the Regulations promulgated thereunder, to withhold a portion of any interest or other income earned on the investment of the Escrow Shares.

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5. Duration. This Make Good Agreement shall terminate upon the distribution of all the Escrow Shares.  The Company agrees to promptly provide the Escrow Agent written notice of the filing with the Commission of any financial statements or reports referenced herein.

 

6. Escrow Shares.  If any Escrow Shares are deliverable to the Investors pursuant to the Purchase Agreement and in accordance with this Make Good Agreement, (i) Make Good Pledgor covenants and agrees to execute all such instruments of transfer (including stock powers and assignment documents) as are customarily executed to evidence and consummate the transfer of the Escrow Shares from Make Good Pledgor to the Investors, to the extent not done so in accordance with Section 2, and (ii) following its receipt of the documents referenced in Section 6(i), the Company and Escrow Agent covenant and agree to cooperate with the Transfer Agent so that the Transfer Agent promptly reissues such Escrow Shares in the applicable Investor’s name and delivers the same as directed by such Investor.  Until such time as (if at all) the Escrow Shares are required to be delivered pursuant to the Purchase Agreement and in accordance with this Make Good Agreement, any dividends payable in respect of the Escrow Shares and all voting rights applicable to the Escrow Shares shall be retained by Make Good Pledgor.  Should the Escrow Agent receive dividends or voting materials, such items shall not be held by the Escrow Agent, but shall be passed immediately on to the Make Good Pledgor and shall not be invested or held for any time longer than is needed to effectively re-route such items to the Make Good Pledgor.  In the event that the Escrow Agent receives a communication requiring the conversion of the Escrow Shares to cash or the exchange of the Escrow Shares for that of an acquiring company, the Escrow Agent shall solicit and follow the written instructions of the Make Good Pledgor; provided that the cash or exchanged shares are instructed to be redeposited into the Escrow Account.  Make Good Pledgor shall be responsible for all taxes resulting from any such conversion or exchange.

 

7. Interpleader.  Should any controversy arise among the parties hereto with respect to this Make Good Agreement or with respect to the right to receive the Escrow Shares, Escrow Agent and/or Brean Murray shall have the right to consult and hire counsel and/or to institute an appropriate interpleader action to determine the rights of the parties. Escrow Agent and/or Brean Murray are also each hereby authorized to institute an appropriate interpleader action upon receipt of a written letter of direction executed by the parties so directing either Escrow Agent or Brean Murray.  If Escrow Agent or Brean Murray is directed to institute an appropriate interpleader action, it shall institute such action not prior to thirty (30) days after receipt of such letter of direction and not later than sixty (60) days after such date. Any interpleader action instituted in accordance with this Section 7 shall be filed in any court of competent jurisdiction in the State of New York, and the Escrow Shares in dispute shall be deposited with the court and in such event Escrow Agent and Brean Murray shall be relieved of and discharged from any and all obligations and liabilities under and pursuant to this Make Good Agreement with respect to the Escrow Shares and any other obligations hereunder.
 

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8.  Exculpation and Indemnification of Escrow Agent and Brean Murray.
 

 

a.    Escrow Agent is not a party to, and is not bound by or charged with notice of any agreement out of which this escrow may arise.  Escrow Agent acts under this Make Good Agreement as a depositary only and is not responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of the subject matter of the escrow, or any part thereof, or for the form or execution of any notice given by any other party hereunder, or for the identity or authority of any person executing any such notice. Escrow Agent will have no duties or responsibilities other than those expressly set forth herein.  Escrow Agent will be under no liability to anyone by reason of any failure on the part of any party hereto (other than Escrow Agent) or any maker, endorser or other signatory of any document to perform such person's or entity's obligations hereunder or under any such document.  Except for this Make Good Agreement and instructions to Escrow Agent pursuant to the terms of this Make Good Agreement, Escrow Agent will not be obligated to recognize any agreement between or among any or all of the persons or entities referred to herein, notwithstanding its knowledge thereof.  Brean Murray’s sole obligation under this Make Good Agreement is to provide written instruction to Escrow Agent (following such time as the Company files certain periodic financial reports as specified in Section 4 hereof) directing the distribution of the Escrow Shares.  Brean Murray will provide such written instructions upon review of the relevant After-Tax Net Income amount reported in such periodic financial reports as specified in Section 4 hereof.  Brean Murray is not charged with any obligation to conduct any investigation into the financial reports or make any other investigation related thereto.  In the event of any actual or alleged mistake or fraud of the Company, its auditors or any other person (other than Brean Murray) in connection with such financial reports of the Company, Brean Murray shall have no obligation or liability to any party hereunder.

 

b.    Escrow Agent will not be liable for any action taken or omitted by it, or any action suffered by it to be taken or omitted, absent gross negligence or willful misconduct.  Escrow Agent may rely conclusively on, and will be protected in acting upon, any order, notice, demand, certificate, or opinion or advice of counsel (including counsel chosen by Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is reasonably believed by Escrow Agent to be genuine and to be signed or presented by the proper person or persons.  The duties and responsibilities of the Escrow Agent hereunder shall be determined solely by the express provisions of this Make Good Agreement and no other or further duties or responsibilities shall be implied, including, but not limited to, any obligation under or imposed by any laws of the State of New York upon fiduciaries.  THE ESCROW AGENT SHALL NOT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (I) DAMAGES, LOSSES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN DAMAGES, LOSSES OR EXPENSES WHICH HAVE BEEN FINALLY ADJUDICATED TO HAVE DIRECTLY RESULTED FROM THE ESCROW AGENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II) SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR LOSSES OF ANY KIND WHATSOEVER (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM OF ACTION.

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c.    The Company and Make Good Pledgor each hereby, jointly and severally, indemnify and hold harmless each of Escrow Agent, Brean Murray and any of their principals, partners, agents, employees and affiliates from and against any expenses, including reasonable attorneys' fees and disbursements, damages or losses suffered by Escrow Agent or Brean Murray in connection with any claim or demand, which, in any way, directly or indirectly, arises out of or relates to this Make Good Agreement or the services of Escrow Agent or Brean Murray hereunder; except, that if Escrow Agent or Brean Murray is guilty of willful misconduct or gross negligence under this Make Good Agreement, then Escrow Agent or Brean Murray, as the case may be, will bear all losses, damages and expenses arising as a result of its own willful misconduct or gross negligence.  Promptly after the receipt by Escrow Agent or Brean Murray of notice of any such demand or claim or the commencement of any action, suit or proceeding relating to such demand or claim, Escrow Agent or Brean Murray, as the case may be, will notify the other parties hereto in writing.  For the purposes hereof, the terms “expense” and “loss” will include all amounts paid or payable to satisfy any such claim or demand, or in settlement of any such claim, demand, action, suit or proceeding settled with the express written consent of the parties hereto, and all costs and expenses, including, but not limited to, reasonable attorneys' fees and disbursements, paid or incurred in investigating or defending against any such claim, demand, action, suit or proceeding.  The provisions of this Section 8 shall survive the termination of this Make Good Agreement, and the resignation or removal of the Escrow Agent.

 

9. Compensation of Escrow Agent.  Escrow Agent shall be entitled to compensation for its services as stated in the fee schedule attached hereto as Exhibit B, which compensation shall be paid by the Company. The fee agreed upon for the services rendered hereunder is intended as full compensation for Escrow Agent's services as contemplated by this Make Good Agreement; provided, however, that in the event that Escrow Agent renders any material service not contemplated in this Make Good Agreement, or there is any assignment of interest in the subject matter of this Make Good Agreement, or any material modification hereof, or if any material controversy arises hereunder, or Escrow Agent is made a party to any litigation pertaining to this Make Good Agreement, or the subject matter hereof, then Escrow Agent shall be reasonably compensated by the Company for such extraordinary services and reimbursed for all costs and expenses, including reasonable attorney's fees, occasioned by any delay, controversy, litigation or event, and the same shall be recoverable from the Company.  Prior to incurring any costs and/or expenses in connection with the foregoing sentence, Escrow Agent shall be required to provide written notice to the Company of such costs and/or expenses and the relevancy thereof and Escrow Agent shall not be permitted to incur any such costs and/or expenses which are not related to litigation prior to receiving written approval from the Company, which approval shall not be unreasonably withheld.

 

10. Resignation of Escrow Agent.  At any time, upon ten (10) days' written notice to the Company, Escrow Agent may resign and be discharged from its duties as Escrow Agent hereunder. As soon as practicable after its resignation, Escrow Agent will promptly turn over to a successor escrow agent appointed by the Company the Escrow Shares held hereunder upon presentation of a document appointing the new escrow agent and evidencing its acceptance thereof.  If, by the end of the 10-day period following the giving of notice of resignation by Escrow Agent, the Company shall have failed to appoint a successor escrow agent, Escrow Agent may interplead the Escrow Shares into the registry of any court having jurisdiction.
 

7

 

11. Records.  Escrow Agent shall maintain accurate records of all transactions hereunder.  Promptly after the termination of this Make Good Agreement or as may reasonably be requested by the parties hereto from time to time before such termination, Escrow Agent shall provide the parties hereto, as the case may be, with a complete copy of such records, certified by Escrow Agent to be a complete and accurate account of all such transactions.  The authorized representatives of each of the parties hereto shall have access to such books and records at all reasonable times during normal business hours upon reasonable notice to Escrow Agent and at the requesting party’s expense.
 

 

12. Notice.  All notices, communications and instructions required or desired to be given under this Make Good Agreement must be in writing and shall be deemed to be duly given if sent by registered or certified mail, return receipt requested, or overnight courier, to the addresses listed on the signature pages hereto.

 

13. Execution in Counterparts.  This Make Good Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 

 

14. Assignment and Modification.  This Make Good Agreement and the rights and obligations hereunder of any of the parties hereto may not be assigned without the prior written consent of the other parties hereto.  Subject to the foregoing, this Make Good Agreement will be binding upon and inure to the benefit of each of the parties hereto and their respective successors and permitted assigns.  No other person will acquire or have any rights under, or by virtue of, this Make Good Agreement.  No portion of the Escrow Shares shall be subject to interference or control by any creditor of any party hereto, or be subject to being taken or reached by any legal or equitable process in satisfaction of any debt or other liability of any such party hereto prior to the disbursement thereof to such party hereto in accordance with the provisions of this Make Good Agreement.  This Make Good Agreement may be amended or modified only in writing signed by all of the parties hereto.
 

 

15. Applicable Law.  This Make Good Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to the principles of conflicts of laws thereof.
 

 

16. Headings.  The headings contained in this Make Good Agreement are for convenience of reference only and shall not affect the construction of this Make Good Agreement.
 

 

17. Attorneys' Fees.  If any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Make Good Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees from the other party (unless such other party is the Escrow Agent), which fees may be set by the court in the trial of such action or may be enforced in a separate action brought for that purpose, and which fees shall be in addition to any other relief that may be awarded.

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18. Merger or Consolidation.  Any corporation or association into which the Escrow Agent may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which the Escrow Agent is a party, shall be and become the successor escrow agent under this Make Good Agreement and shall have and succeed to the rights, powers, duties, immunities and privileges as its predecessor, without the execution or filing of any instrument or paper or the performance of any further act.

 

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IN WITNESS WHEREOF, the parties have duly executed this Make Good Agreement as of the date set forth opposite their respective names.

 

COMPANY:

POINT ACQUISITION CORPORATION

 

By: /s/ Shunqing Zhang________________

Name: Shunqing Zhang

Title: CEO and President

 

Address:

No. 88 Gengsheng Road, Dayugou Town

Gongyi, Henan China  451271

Facsimile: Attn: Shunqing Zhang

Attn: Shunqing Zhang

 

MR. SHUNQING ZHANG:

 

/s/ Shunqing Zhang____________________

Address:

No. 88 Gengsheng Road, Dayugou Town

Gongyi, Henan China  451271

Facsimile: Attn: Shunqing Zhang

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE FOR OTHER PARTIES FOLLOWS]

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ESCROW AGENT:

SECURITIES TRUST CORPORATION,              as Escrow Agent

By:_/s/ Kevin Halter, Jr._________

     Name:  Kevin Halter, Jr.
 

     Title:  President

 

Address: 2591 Dallas Parkway, Suite 102

   Frisco, TX 75034

AGENT:

BREAN MURRAY, CARRET & CO., LLC

By:_/s/ John Fletcher__________________

     Name: John Fletcher

     Title: Managing Partner

 

Address:

570 Lexington Avenue

New York, New York 10022

Attn.:  John Fletcher

Facsimile:  (212) 702-6548

 

 

11Point Acquisition Corporation -Exhibit 10.4 - Prepared By TNT Filings
Inc.

Exhibit 10.4 

ESCROW AGREEMENT 

This Escrow Agreement
(the "Agreement"), dated April 25, 2007, is entered into by and among Point
Acquisition Corporation, a Nevada corporation (the "Company"), HFG
International, Limited, a Hong Kong corporation ("HFG"), Mr. Shunqing Zhang, in
his individual capacity ("Make Good Pledgor"), and Securities Transfer
Corporation (hereinafter referred to as "Escrow Agent"). 

BACKGROUND 

HFG, Powersmart
Holdings Corporation and the Make Good Pledgor entered into that certain
Financial Advisory Agreement and that certain Financing Agreement, effective as
of November 28, 2006 (the originals and each amendment thereto being
collectively referred to as the "Advisory Agreements"). As an inducement to HFG
to enter into the Advisory Agreements, the Make Good Pledgor agreed to place the
Escrow Shares (as defined in Section 2 hereto) into escrow for the benefit of
HFG and its affiliates, in the event the Company failed to satisfy the
"Performance Thresholds" (as hereinafter defined). This Agreement is in
accordance with the terms and conditions of a Make Good Escrow Agreement of the
same date granted to the investors in the private offering of securities of the
Company (the "Investors") pursuant to a Securities Purchase Agreement, dated
April 25, 2007 (the "Purchase Agreement"). The Company, the Make Good Pledgor
and HFG have agreed to establish an escrow on the terms and conditions set forth
in this Agreement and the Escrow Agent has agreed to act as escrow agent
pursuant to the terms and conditions of this Agreement. All capitalized terms
used but not defined herein shall have the meanings assigned them in the
Purchase Agreement. 

AGREEMENT 

NOW, THEREFORE, in
consideration of the mutual promises of the parties and the terms and conditions
hereof, the parties hereby agree as follows: 

1.
Appointment of Escrow Agent.
HFG, Make Good Pledgor and the Company hereby appoint Securities Transfer
Corporation as Escrow Agent to act in accordance with the terms and conditions
set forth in this Agreement, and Escrow Agent hereby accepts such appointment
and agrees to act in accordance with such terms and conditions. 

2.
Establishment of Escrow.
Upon the execution of this Agreement, the Make Good Pledgor shall deliver to the
Escrow Agent a stock certificate evidencing 638,338 shares (the "Escrow
Shares") along with bank signature stamped stock powers executed in blank (or
such other signed instrument of transfer acceptable to the Company’s Transfer
Agent). One-half of the Escrow Shares (the "Potential 2007 Make Good Shares")
shall be pledged to secure the Company’s commitment to achieve the 2007
Guaranteed ATNI (as defined below) and one-half of the Escrow Shares (the
"Potential 2008 Make Good Shares") shall be pledged to secure the Company’s
commitment to achieve the 2008 Guaranteed ATNI (as defined below). As used in
this Agreement, "Transfer Agent" means PacWest Transfer, LLC, or such other
entity hereafter retained by the Company as its stock transfer agent as
specified in a writing from the Company to the Escrow Agent and HFG. 

3.
Representations of the Make Good Pledgor.
The Make Good Pledgor hereby represents and warrants to HFG as follows: 

a. The Escrow Shares are validly
issued, fully paid and nonassessable shares of the Company, and free and clear
of all pledges, liens and encumbrances. 

b. Performance of this
Agreement and compliance with the provisions hereof will not violate any
provision of any applicable law and will not conflict with or result in any
breach of any of the terms, conditions or provisions of, or constitute a default
under, or result in the creation or imposition of any lien, charge or
encumbrance upon, any of the properties or assets of the Make Good Pledgor
pursuant to the terms of any indenture, mortgage, deed of trust or other
agreement or instrument binding upon the Make Good Pledgor, other than such
breaches, defaults or liens which would not have a material adverse effect taken
as a whole. 

4.
Disbursement of Escrow
Shares. 

a. Fiscal Year
Ended December 31, 2007. Make Good Pledgor agrees that if the After-Tax
Net Income for the fiscal year ended December 31, 2007 reported in the Company’s
Annual Report on Form 10-K for the fiscal year ending December 31, 2007, as
filed with the Commission (the "2007 Annual Report") is less than $8,200,000
(the "2007 Guaranteed ATNI"), HFG shall provide written instruction (with a copy
to the Company) and direct the Escrow Agent to instruct the Transfer Agent to
transfer to HFG or its affiliates, for no additional consideration, a number of
shares of Common Stock (as equitably adjusted for any stock splits, stock
combinations, stock dividends or similar transactions) in accordance with the
table below, based on the level of After-Tax Net Income reported in the 2007
Annual Report (such shares issuable to HFG, being referred to herein as the
"2007 Make Good Shares"): 

	Percentage of
    Potential 2007 Make Good	After Tax Net Income
    Reported in
	
    Shares Issuable to HFG	
    2007 Annual Report
	
    25%	
    $7,000,000-$8,199,999.99
	 	 
	50%	
    $6,000,000-$6,999,999.99
	 	 
	75%	
    $5,000,000-$5,999,999.99
	 	 
	100%	Less than $5,000,000

The Escrow Agent need only rely on the letter
of instruction from HFG in this regard and will disregard any contrary
instructions. The Escrow Agent shall be entitled to rely on the calculations
provided by HFG in releasing the Escrow Shares for disbursement, with no further
responsibility to calculate or confirm amounts. If the Company’s audited
consolidated financial statements for the fiscal year ended December 31, 2007
specify that the 2007 Guaranteed ATNI shall have been achieved, no transfer of
the 2007 Make Good Shares shall be required by this Section 4(a) and HFG shall
provide written instruction (with a copy to the Company) to the Escrow Agent to
return all 2007 Make Good Shares deposited with the Escrow Agent to the Make
Good Pledgor within 7 Business Days after the date on which the 2007 Annual
Report is filed with the Commission; provided that Escrow Agent is given notice
of the 2007 Annual Report’s filing and results. Subject to the timing of the
Transfer Agent, transfers of 2007 Make Good Shares required under this Section
4(a) shall be made to HFG or its affiliates within 7 Business Days after the
date on which the 2007 Annual Report is filed with the Commission; provided that
Escrow Agent is given notice of the 2007 Annual Report’s filing and results.

2 

b. Fiscal Year
Ending December 31, 2008. Make Good Pledgor agrees that if the After-Tax
Net Income for the fiscal year ended December 31, 2008 reported in the Company’s
Annual Report on Form 10-K for the fiscal year ending December 31, 2008, as
filed with the Commission (the "2008 Annual Report") is less than $13,500,000
(the "2008 Guaranteed ATNI"), HFG shall provide written instruction (with a copy
to the Company) and direct the Escrow Agent to instruct the Transfer Agent to
transfer to HFG, for no additional consideration, a number of shares of Common
Stock (as equitably adjusted for any stock splits, stock combinations, stock
dividends or similar transactions) in accordance with the table below, based on
the level of After-Tax Net Income reported in the 2008 Annual Report (such
shares issuable to HFG being referred to herein as the "2008 Make Good Shares"):

	Percentage of
    Potential 2008 Make Good	After Tax Net Income
    Reported in
	
    Shares Issuable to HFG	
    2008 Annual Report
	
    25%	
    $12,000,000-$13,499,999.99
	 	 
	50%	
    $10,500,000-$11,999,999.99
	 	 
	75%	
    $9,000,000-$10,499,999.99
	 	 
	100%	Less than $9,000,000

The Escrow Agent need only rely on the letter
of instruction from HFG in this regard and will disregard any contrary
instructions. The Escrow Agent shall be entitled to rely on the calculations
provided by HFG in releasing the Escrow Shares for disbursement, with no further
responsibility to calculate or confirm amounts. If the Company’s audited
consolidated financial statements for the fiscal year ended December 31, 2008
specify that the 2008 Guaranteed ATNI shall have been achieved, no transfer of
the 2008 Make Good Shares shall be required by this Section and HFG shall
provide written instruction (with a copy to the Company) to the Escrow Agent to
return all 2008 Make Good Shares deposited with the Escrow Agent to the Make
Good Pledgor within 7 Business Days after the date on which the 2008 Annual
Report is filed with the Commission, provided that Escrow Agent is given notice
of the 2008 Annual Report’s filing and results. Subject to the timing of the
Transfer Agent, transfers of 2008 Make Good Shares required under this Section
shall be made to HFG or its affiliates within 7 Business Days after the date on
which the 2008 Annual Report is filed with the Commission, provided that Escrow
Agent is given notice of the 2008 Annual Report’s filing and results. 

c. Notwithstanding
anything to the contrary contained herein, in the event that the release of any
of the 2007 Make Good Shares or the 2008 Make Good Shares to HFG or the Make
Good Pledgor or any other party, or the release of any of the make good shares
deliverable to the Investors in accordance with the Purchase Agreement is deemed
to be an expense or deduction from revenues/income of the Company for the
applicable year, as required under 
GAAP, then such expense or deduction and any expense, charge or deduction
relating thereto, shall be
excluded for purposes of determining whether or not the 2007 Guaranteed ATNI or
the 2008 Guaranteed ATNI has been achieved by the Company. 

3 

d. The Make Good
Pledgor’s obligation to transfer shares of Common Stock to HFG shall run only to
the benefit of HFG and its affiliates to the extent that they hold Shares when
the 2007 Guaranteed ATNI and the 2008 Guaranteed ATNI are calculated, and any
release of the 2008 Make Good Shares and the 2008 Make Good Shares to HGF or its
affiliates shall be distributed on a pro rata basis based on the number of
Shares then held by HFG or its affiliates, for no additional consideration.

e. The Company and
Make Good Pledgor covenant and agree to provide the Escrow Agent with certified
tax identification numbers by furnishing appropriate forms W-9 or W-8 and such
other forms and documents that the Escrow Agent may request, including
appropriate W-9 or W-8 forms for each Investor. The Company and Make Good
Pledgor understand that if such tax reporting documentation is not provided and
certified to the Escrow Agent, the Escrow Agent may be required by the Internal
Revenue Code of 1986, as amended, and the Regulations promulgated thereunder, to
withhold a portion of any interest or other income earned on the investment of
the Escrow Shares. 

5.
Duration. This
Agreement shall terminate on the distribution of all the Escrow Shares. 

6.
Escrow Shares. If any
Escrow Shares are deliverable to HFG in accordance with this Agreement, (i) Make
Good Pledgor covenants and agrees to execute all such instruments of transfer
(including stock powers and assignment documents) as are customarily executed to
evidence and consummate the transfer of the Escrow Shares from Make Good Pledgor
to HFG, to the extent not done so in accordance with Section 2, and (ii)
following its receipt of the documents referenced in Section 6(i), the Company
and Escrow Agent covenant and agree to cooperate with the Transfer Agent so that
the Transfer Agent promptly reissues such Escrow Shares in HFG’s name and
delivers the same as directed by HFG. Until such time as (if at all) the Escrow
Shares are required to be delivered pursuant to the Purchase Agreement and in
accordance with this Agreement, any dividends payable in respect of the Escrow
Shares and all voting rights applicable to the Escrow Shares shall be retained
by Make Good Pledgor. Should the Escrow Agent receive dividends or voting
materials, such items shall not be held by the Escrow Agent, but shall be passed
immediately on to the Make Good Pledgor and shall not be invested or held for
any time longer than is needed to effectively re-route such items to the Make
Good Pledgor. In the event that the Escrow Agent receives a communication
requiring the conversion of the Escrow Shares to cash or the exchange of the
Escrow Shares for that of an acquiring company, the Escrow Agent shall solicit
and follow the written instructions of the Make Good Pledgor; provided that the
cash or exchanged shares are instructed to be redeposited into the Escrow
Account. Make Good Pledgor shall be responsible for all taxes resulting from any
such conversion or exchange. 

7.
Interpleader. Should any
controversy arise among the parties hereto with respect to this Agreement or
with respect to the right to receive the Escrow Shares, Escrow Agent shall have
the right to consult and hire counsel and/or to institute an appropriate
interpleader action to determine the rights of the parties. Escrow Agent is
hereby authorized to institute an appropriate interpleader action upon receipt
of a written letter of direction executed by the parties so directing Escrow
Agent. If Escrow Agent is directed to institute an appropriate interpleader
action, it shall institute such action not prior to thirty (30) days after
receipt of such letter of direction and not later than sixty (60) days after
such date. Any interpleader action instituted in accordance with this Section 7
shall be filed in any court of competent jurisdiction in the State of New York,
and the Escrow Shares in dispute shall be deposited with the court and in such
event Escrow Agent shall be relieved of and discharged from any and all
obligations and liabilities under and pursuant to this Agreement with respect to
the Escrow Shares and any other obligations hereunder. 

4 

8.
Exculpation and
Indemnification of Escrow Agent. 

a. Escrow Agent is not
a party to, and is not bound by or charged with notice of any agreement out of
which this escrow may arise. Escrow Agent acts under this Agreement as a
depositary only and is not responsible or liable in any manner whatsoever for
the sufficiency, correctness, genuineness or validity of the subject matter of
the escrow, or any part thereof, or for the form or execution of any notice
given by any other party hereunder, or for the identity or authority of any
person executing any such notice. Escrow Agent will have no duties or
responsibilities other than those expressly set forth herein. Escrow Agent will
be under no liability to anyone by reason of any failure on the part of any
party hereto (other than Escrow Agent) or any maker, endorser or other signatory
of any document to perform such person’s or entity’s obligations hereunder or
under any such document. Except for this Agreement and instructions to Escrow
Agent pursuant to the terms of this Agreement, Escrow Agent will not be
obligated to recognize any agreement between or among any or all of the persons
or entities referred to herein, notwithstanding its knowledge thereof. 

b. Escrow Agent will
not be liable for any action taken or omitted by it, or any action suffered by
it to be taken or omitted, absent gross negligence or willful misconduct. Escrow
Agent may rely conclusively on, and will be protected in acting upon, any order,
notice, demand, certificate, or opinion or advice of counsel (including counsel
chosen by Escrow Agent), statement, instrument, report or other paper or
document (not only as to its due execution and the validity and effectiveness of
its provisions, but also as to the truth and acceptability of any information
therein contained) which is reasonably believed by Escrow Agent to be genuine
and to be signed or presented by the proper person or persons. The duties and
responsibilities of the Escrow Agent hereunder shall be determined solely by the
express provisions of this Agreement and no other or further duties or
responsibilities shall be implied, including, but not limited to, any obligation
under or imposed by any laws of the State of New York upon fiduciaries. THE
ESCROW AGENT SHALL NOT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (I) DAMAGES,
LOSSES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN
DAMAGES, LOSSES OR EXPENSES WHICH HAVE BEEN FINALLY ADJUDICATED TO HAVE DIRECTLY
RESULTED FROM THE ESCROW AGENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II)
SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR LOSSES OF ANY KIND WHATSOEVER
(INCLUDING, WITHOUT LIMITATION, LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM
OF ACTION. 

5 

c. Escrow Agent will
be indemnified and held harmless, jointly and severally, by the Company, the
Make Good Pledgor and HFG from and against any expenses, including reasonable
attorneys’ fees and disbursements, damages or losses suffered by Escrow Agent in
connection with any claim or demand, which, in any way, directly or indirectly,
arises out of or relates to this Agreement or the services of Escrow Agent
hereunder; except, that if Escrow Agent is guilty of willful misconduct, fraud
or gross negligence under this Agreement, then Escrow Agent will bear all
losses, damages and expenses arising as a result of such willful misconduct,
fraud or gross negligence. Promptly after the receipt by Escrow Agent of notice
of any such demand or claim or the commencement of any action, suit or
proceeding relating to such demand or claim, Escrow Agent will notify the other
parties hereto in writing. For the purposes hereof, the terms "expense"
and "loss" will
include all amounts paid or payable to satisfy any such claim or demand, or in
settlement of any such claim, demand, action, suit or proceeding settled with
the express written consent of the parties hereto, and all costs and expenses,
including, but not limited to, reasonable attorneys’ fees and disbursements,
paid or incurred in investigating or defending against any such claim, demand,
action, suit or proceeding. The provisions of this Section 7 shall survive the
termination of this Agreement. 

9.
Compensation of Escrow Agent.
The Company will pay Escrow Agent $500 for all services rendered by Escrow Agent
hereunder. The fee agreed upon for the services rendered hereunder is intended
as full compensation for Escrow Agent's services as contemplated by this
Agreement; provided, however, that in the event that Escrow Agent renders any
material service not contemplated in this Agreement, or there is any assignment
of interest in the subject matter of this Agreement, or any material
modification hereof, or if any material controversy arises hereunder, or Escrow
Agent is made a party to any litigation pertaining to this Agreement, or the
subject matter hereof, then Escrow Agent shall be reasonably compensated by the
Company for such extraordinary services and reimbursed for all costs and
expenses, including reasonable attorney's fees, occasioned by any delay,
controversy, litigation or event, and the same shall be recoverable from the
Company. Prior to incurring any costs and/or expenses in connection with the
foregoing sentence, Escrow Agent shall be required to provide written notice to
the Company of such costs and/or expenses and the relevancy thereof and Escrow
Agent shall not be permitted to incur any such costs and/or expenses which are
not related to litigation prior to receiving written approval from the Company,
which approval shall not be unreasonably withheld. 

10.
Resignation of Escrow Agent.
At any time, upon ten (10) days’ written notice to the Company, Escrow Agent may
resign and be discharged from its duties as Escrow Agent hereunder. As soon as
practicable after its resignation, Escrow Agent will promptly turn over to a
successor escrow agent appointed by the Company the Escrow Shares held hereunder
upon presentation of a document appointing the new escrow agent and evidencing
its acceptance thereof. If, by the end of the 10-day period following the giving
of notice of resignation by Escrow Agent, the Company shall have failed to
appoint a successor escrow agent, Escrow Agent may interplead the Escrow Shares
into the registry of any court having jurisdiction. 

11.
Records. Escrow Agent
shall maintain accurate records of all transactions hereunder. Promptly after
the termination of this Agreement or as may reasonably be requested by the
parties hereto from time to time before such termination, Escrow Agent shall
provide the parties hereto, as the case may be, with a complete copy of such
records, certified by Escrow Agent
to be a complete and accurate account of all such transactions. The authorized
representatives of each of the parties hereto shall have access to such books
and records at all reasonable times during normal business hours upon reasonable
notice to Escrow Agent and at the requesting party’s expense. 

6 

12.
Notice. All notices,
communications and instructions required or desired to be given under this
Agreement must be in writing and shall be deemed to be duly given if sent by
registered or certified mail, return receipt requested, or overnight courier to
the following addresses: 

	If to Escrow Agent:	 
	 	Securities Transfer
    Corporation
	 	2591 Dallas Parkway,
    Suite 102
	 	Frisco, Texas 75034
	 	Attention: Kevin
    Halter
	 	 
	If to the
    Company or the Make Good Pledgor:
	 	 
	 	c/o Powersmart
    Holdings Limited
	 	No. 88 Gengsheng Road,
    Dayugou Town
	 	Gongyi, Henan China
    451271
	 	 
	If to HFG:	 
	 	c/o Timothy P. Halter
	 	12890 Hilltop Road
	 	Argyle, Texas 76226

or to such other address and to the attention of such other person as any of
the above may have furnished to the other parties in writing and delivered in
accordance with the provisions set forth above. 

13.
Execution in Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. Facsimile execution and delivery of this Agreement is legal, valid
and binding for all purposes. 

14.
Assignment and Modification.
This Agreement and the rights and obligations hereunder of any of the parties
hereto may not be assigned without the prior written consent of the other
parties hereto. Subject to the foregoing, this Agreement will be binding upon
and inure to the benefit of each of the parties hereto and their respective
successors and permitted assigns. No other person will acquire or have any
rights under, or by virtue of, this Agreement. No portion of the Escrow Shares
shall be subject to interference or control by any creditor of any party hereto,
or be subject to being taken or reached by any legal or equitable process in
satisfaction of any debt or other liability of any such party hereto prior to
the disbursement thereof to such party hereto in accordance with the provisions
of this Agreement. This Agreement may be changed or modified only in writing
signed by all of the parties hereto. 

7 

15. Applicable Law.
This Agreement shall be governed by and construed in accordance with the laws of
the State of New York without giving effect to the principles of conflicts of
laws thereof. 

16. Headings.
The headings contained in this Agreement are for convenience of reference only
and shall not affect the construction of this Agreement. 

17. Attorneys’ Fees.
If any action at law or in equity, including an action for declaratory relief,
is brought to enforce or interpret the provisions of this Agreement, the
prevailing party shall be entitled to recover reasonable attorneys’ fees from
the other party (unless such other party is the Escrow Agent), which fees may be
set by the court in the trial of such action or may be enforced in a separate
action brought for that purpose, and which fees shall be in addition to any
other relief that may be awarded. 

18. Registration
Rights. If any Make Good Shares are distributed to HFG
hereunder, then the Company shall use commercially reasonable efforts to file a
registration statement relating to the resale by HFG of the Make Good Shares so
distributed within 30 days following the date that the Company is obligated
hereunder to deliver any such Make Good Shares to HFG and the Company shall
thereafter use commercially reasonable efforts to cause such registration
statement to become effective. HFG shall provide such information to the Company
as the Company may reasonably request in order to prepare such registration
statement, including, without limitation, delivery to the Company of Selling
Stockholder questionnaires. The Company shall cause such registration statement
to remain effective until HFG has sold any Make Good Shares received by it
thereunder or until HFG is permitted to resell all of the Make Good Shares
received hereunder at one time pursuant to Rule 144 of the Securities Act of
1933, as amended. 

19. Merger or
Consolidation. Any corporation or association into
which the Escrow Agent may be converted or merged, or with which it may be
consolidated, or to which it may sell or transfer all or substantially all of
its corporate trust business and assets as a whole or substantially as a whole,
or any corporation or association resulting from any such conversion, sale,
merger, consolidation or transfer to which the Escrow Agent is a party, shall be
and become the successor escrow agent under this Agreement and shall have and
succeed to the rights, powers, duties, immunities and privileges as its
predecessor, without the execution or filing of any instrument or paper or the
performance of any further act. 

20. Entire Agreement.
This Agreement contains the entire understanding of the parties with respect to
the subject matter hereof and supersedes all prior agreements, understandings,
discussions and representations, oral or written, to the extent they related in
any way to the subject matter hereof, which the parties acknowledge have been
merged into this Agreement, including, without limitation, any provision in any
agreement entered into by and among Powersmart Holdings, Limited, Smarthigh
Holdings Limited and HFG International, Limited with respect to such matters.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

8 

IN WITNESS WHEREOF, the parties have duly executed
this Agreement as of the date set forth opposite their respective names. 

	 	 	POWERSMART HOLDING
    LIMITED
	 	 	 
	 	 	 
	 	 	/s/ Shunqing Zhang                     
    
	 	
    By:   
    
	Shunqing Zhang
	 	 	Chairman & CEO

Signature Page to Halter Make Good Escrow Agreement 

	 	 	 	 
	 	 	POINT ACQUISITION CORPORATION.	 
	 	 	 	 
	 	 	 	 
	 	
    By:
	
    /s/ Timothy Halter	 
	 	
    Its:
	
    President	 
	 	
    Dated: 
	
    April 25, 2007	 
	 	
     
	 	 
	 	
     
	 	 
	 	
     
	SECURITIES TRANSFER CORPORATION	 
	 	
     
	 	 
	 	
     
	 	 
	 	
    By:
	
    /s/ Kevin Halter Jr.	 
	 	
    Its:
	
    President	 
	 	
    Dated:
	
     April 25, 2007	 
	 	
     
	 	 
	 	
     
	HFG:	 
	 	
     
	 	 
	 	
    By:
	
    /s/ Timothy P. Halter	 
	 	
     
	
    Timothy P. Halter, President	 
	 	
     
	HFG International, Limited	 

Signature Page to Halter Make Good Escrow Agreement

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