Document:

exv10w3

 

Exhibit 10.3

RENEWAL NOTICE

 

July 31, 2007

ROCKY
MOUNTAIN CHOCOLATE FACTORY, INC.

265 Turner Drive

Durango, CO 81303-7941

	 	 	 	 	 
	RE:

	 	Renewal of line of credit/loan
	 	 
	 

	 	Customer #: 765741844226	 	 

Dear Rocky Mountain Chocolate Factory, Inc.:

Wells Fargo Bank, National Association is pleased to inform you that your line of credit/loan, in
the amount of $5,000.000.00 (the “Credit”), has been approved for renewal. The new maturity date
will be July 31, 2008.

The Credit remains subject to all terms and conditions of existing loan documentation, as
modified by this Renewal Notice.

If you do not desire the renewal of the Credit on these terms, you must (i) deliver to WELLS
FARGO BANK, NATIONAL ASSOCIATION at 200 W College Drive, , .durango, CO 81301 a written rejection
of the extension within 10 days from the date of this letter, (ii) not draw additional funds
under the Credit, and (iii) promptly make arrangements with your loan officer to pay the matured
balance of the Credit.

If you have any questions, please do not hesitate to call me at (970)385-1515. We appreciate your
business and look forward to continuing to serve as your business bank.

Sincerely,

Wells Fargo Bank, National Association

	 	 	 	 	 
	/s/ John Francis

	 	 	 	 
	 

Name: John Francis

	 	 
	 	 
	Title: Vice-Presidentexv10w1

 

EXHIBIT 10.1

ESCROW AGREEMENT

This Escrow Agreement (“Agreement”) is made and entered into as of June 21, 2007 (“Effective
Date”), by and among LEGACYTEXAS BANK (“Escrow Agent”), a Texas state bank, PROSPERA FINANCIAL
SERVICES INC (“Managing Broker-Dealer”), a Texas corporation, and PROINVEST REALTY FUND LLC
(“Issuer”), a Delaware limited liability company.

RECITALS

The Issuer
proposes to offer (“Offering”) for sale to investors up to 2,000 units (any one,
“Unit;” all together, “Units”) of limited liability company membership interest in the Issuer at
a price of $50,000 per Unit.

The Managing Broker-Dealer proposes to sell the Units as the Issuer’s agent on a best-efforts
basis.

The Issuer and the Managing Broker-Dealer propose to establish an escrow account (“Escrow
Account”) with the Escrow Agent into which funds received from parties subscribing (any one,
“Subscriber;” all together, “Subscribers”) to a purchase of the Units will be deposited with the
Escrow Agent pending completion of the escrow period specified in the Form S-11 Registration
Statement and other documents and materials (all together, “Offering Materials”) to be filed by
the Issuer with the Securities and Exchange Commission.

The Escrow Agent agrees to serve as such in accordance with the terms and conditions set forth
herein.

For purposes of communications and directives, the Escrow Agent need only accept those signed
by the Issuer.

AGREEMENT

Now therefore, in consideration of the foregoing, it is hereby agreed as follows:

	1.	 	Establishment of the Escrow Account. On the Effective Date, the Managing
Broker-Dealer and the Issuer shall and do hereby establish the Escrow Account as an
interest-bearing escrow account with the Escrow Agent. The Escrow Account shall be styled
“Proinvest Realty Fund LLC Escrow Account.” All Subscribers shall be instructed to make checks
for subscriptions to a purchase of the Units payable to the Escrow Account. Any checks
received that are made payable to a party other than the Escrow Account shall be returned to
the Subscriber who submitted the check. The other terms and conditions of the Escrow Account
shall be as agreed among the Escrow Agent, the Managing Broker-Dealer, and the Issuer.

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	2.	 	The Escrow Period. The term of the Escrow Account (“Escrow Period”) shall begin on the
Effective Date and shall terminate upon the earlier to occur of the following dates:
	 
	

	A.	 	The date upon which the Escrow Agent confirms that the Escrow Agent has received
in the Escrow Account gross proceeds of $5,000,000 in deposited funds
(“Minimum Offering Amount”); or
	

	 
	

	B.	 	The date of October 1, 2008 (unless extended as specified in the Offering Materials for
an additional period of time with a copy of a letter from the Managing Broker-Dealer
and the Issuer advising the Escrow Agent of such extension); or
	

	 
	C.	 	The date upon which a determination is made by the Issuer to terminate the offering
prior to the sale of the minimum number of the Units specified in the Offering
Materials. During the Escrow Period, the Issuer is aware and understands that the
Issuer is not entitled to any funds received into the Escrow Account and no amounts
deposited in the Escrow Account shall become the property of the Issuer or any other
entity, or be subject to the debts of the Issuer or any other entity.
	 
	3.	 	Deposits into the Escrow Account. The Managing Broker-Dealer agrees that it shall
promptly deliver all monies received from Subscribers for the purchase of the Units to the
Escrow Agent for deposit into the Escrow Account, together with a written account of each
such sale of the Units setting forth, among other things, the Subscriber’s name and address,
the number of the Units purchased, the amount paid therefore, and whether the consideration
received was in the form of a check, draft, or money order. All monies so deposited into the
Escrow Account are hereinafter referred to as the “Escrow Amount.”
	 
	4.	 	Disbursements from the Escrow Account. In the event the Escrow Agent does not
receive the Minimum Offering Amount into the Escrow Account prior to the termination of the
Escrow Period, the Escrow Agent shall refund to each Subscriber the amount received from that
Subscriber, without deduction, penalty, or expense to the Subscriber, together with a prorata
portion of all interest accrued on the amount received from that Subscriber, and the Escrow
Agent shall notify the Issuer and the Managing Broker-Dealer of its distribution of the
Escrow Amount. The purchase money returned to each Subscriber shall be free and clear of any
and all claims of the Issuer or any of its creditors.
	 
	 	 	In the event the Escrow Agent does receive the Minimum Offering Amount into the Escrow Account
prior to termination of the Escrow Period, in no event will the Escrow Amount be released to the
Issuer until such amount is received by the Escrow Agent in collected funds. 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. Further, in the event
the Escrow Agent does receive the Minimum Offering Amount into the Escrow Account prior to
termination of the Escrow Period, then, concurrently with the conversion of the Escrow Account
as described in Section 7 below, the Escrow Agent shall disburse to the Managing Broker-Dealer
the 1% of Offering proceeds fee and the selling expenses then due from the Issuer to the
Managing Broker-Dealer.

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	5.	 	Collection Procedure. The Escrow Agent is hereby authorized to forward each check
from each Subscriber for collection and, upon collection of the proceeds of each such
check, deposit the collected proceeds into the Escrow Account. As an alternative, the
Escrow Agent may telephone the bank on which a check from a Subscriber is drawn to
confirm that such check has been paid. Any check returned unpaid to the Escrow Agent shall
be returned to the Managing Broker-Dealer. In such cases, the Escrow Agent will
promptly notify the Issuer of such returned check.
	 
	 	 	If the Issuer rejects any subscription for a purchase of the Units for which the Escrow Agent
has already collected funds, the Escrow Agent shall promptly issue a refund check to the
rejected Subscriber. If the Issuer rejects any such subscription for which the Escrow Agent has
not yet collected funds but has submitted the Subscriber’s check for collection, the Escrow
Agent shall promptly issue a check in the amount of the Subscriber’s check to the rejected
Subscriber after the Escrow Agent has cleared such funds. If the Escrow Agent has not yet
submitted a rejected Subscriber’s check for collection, the Escrow Agent shall promptly remit
the Subscriber’s check directly to the Subscriber.
	 
	6.	 	Investment of Escrow Amount. The Escrow Agent may, with the prior written approval
of the Managing Broker-Dealer and the Issuer, invest and re-invest the Escrow Amount
only in short term certificates of deposit issued by a federally insured bank or other
financial institution short-term securities issued or guaranteed by the United States of
America.
	 
	7.	 	Conversion of Escrow Account. Once the Minimum Offering Amount has been received by
the Escrow Agent into the Escrow Account, the Escrow Account shall automatically be converted
to an operating account of the Issuer (“Conversion”). No action on the part of any party to
this Agreement is necessary for the Conversion to take place and, once the Conversion has
taken place, such operating account shall be governed by a separate agreement between the
Escrow Agent and the Issuer in the form customary for commercial checking accounts.
	 
	8.	 	This Agreement is further subject to the following terms and conditions, which are
acceptable to and approved by all of the parties hereto:

	 	(a.)	 	the Escrow Agent is not a trustee for any party for
any purpose, and is merely acting as a depository and a ministerial
capacity hereunder with the limited duties herein described.
	 
	 	(b.)	 	the Escrow Agent has no responsibility with respect to
any instructions or notice delivered to it other than faithfully to carry
out its obligations under this Agreement.
	 
	 	(c.)	 	the Escrow Agent may conclusively rely upon and act in
accordance with any certificate, directive, instructions, notice, letter,
e-mail, facsimile or other written instrument believed to be

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	 	 	 	genuine and to have been signed or communicated by the proper party or
parties and consistent with the terms and conditions of this Agreement.

	 	(d.)	 	Each notice, instruction, directive or other communication
required or permitted by the terms hereof shall be in writing and shall be
communicated by personal delivery, facsimile, certified mail or e-mail to the
parties hereto at the addresses shown below its signature, or at such other
address as any of them may designate by notice to each of the others.
	 
	 	(e.)	 	the Escrow Agent, as part of the consideration for the
acceptance of the Escrow Account, shall be held harmless from any and all
liability, loss, cost, claim, demand, action or cause of action arising out
of or in any way connected with the Escrow Account except as may arise
through or be caused by the willful misconduct or gross negligence of the
Escrow Agent.
	 
	 	(g.)	 	Should a dispute arise as to the ownership of the Escrow
Account or the Escrow Amount, the Escrow Agent shall have the right, but not
the obligation, to file proceedings and to deposit any funds and/or documents
into the registry of a court of competent jurisdiction in Dallas County,
Texas, the cost of doing so to be reimbursed from the Escrow Amount, and be
released from any further duty or obligation pursuant to this Agreement other
than as specified in the preceding subpart (e) of this Section 8.
	 
	 	(h.)	 	The Escrow Agent shall have no right to attach or place any
lien, encumbrance, or security interest on the Escrow Account.

     THE ISSUER IS AWARE THAT FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”) COVERAGE APPLIES ONLY
TO A CUMULATIVE MAXIMUM AMOUNT OF $100,000.00 FOR EACH INDIVIDUAL DEPOSITOR FOR ALL OF THAT
DEPOSITOR’S ACCOUNTS AT THE SAME OR RELATED INSTITUTION. THE ISSUER FURTHER UNDERSTANDS THAT
CERTAIN BANKING INSTRUMENTS SUCH AS, BUT NOT LIMITED TO, REPURCHASE AGREEMENTS AND LETTERS OF
CREDIT ARE NOT COVERED AT ALL BY FDIC INSURANCE. THE ESCROW AGENT ASSUMES NO RESPONSIBILITY FOR,
NOR WILL THE ISSUER HOLD THE ESCROW AGENT LIABLE FOR, ANY LOSS WHICH MAY OCCUR IF THE AMOUNT OF THE
DEPOSIT CAUSES THE AGGREGATE AMOUNT OF ANY INDIVIDUAL DEPOSITOR’S ACCOUNTS IN THE ESCROW AGENT TO
EXCEED $100,000.00.

9.  This Escrow Agreement supersedes in its entirety
that other certain Escrow Agreement (“Prior Escrow Agreement”),
dated as of June 21, 2007, by and among the Escrow Agent, the Managing
Broker-Dealer, and the Issuer. Upon execution and delivery hereof by
all parties hereto, the Prior Escrow Agreement shall be deemed, for all purposes, to
be terminated as of the Effective Date.

     In witness whereof, this Agreement has been executed by the Escrow Agent, the Managing
Broker-Dealer, and the Issuer on or as of the Effective Date.

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	 	 	LEGACYTEXAS BANK, a Texas state bank	 	 
	 
	 	 	 	 	 	 
	

	 

	 	By:
	 	/s/ Dawn Velekei	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Dawn Velekei	 	 
	 

	 	 	 	Senior Vice President	 	 
	 

	 	 	 	and Controller	 	 
	 
	 	 	 	 	 	 
	

	 	 	1105 W 15th St	 	 
	 	 	Plano, Texas 75075-7247	 	 
	 
	 	 	 	 	 	 
	 	 	PROSPERA FINANCIAL SERVICES INC,	 	 
	 	 	a Texas corporation	 	 
	 
	 	 	 	 	 	 
	

	 

	 	By:
	 	/s/ Abel Garcia	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Able Garcia	 	 
	 

	 	 	 	Director of Finance	 	 
	 
	 	 	 	 	 	 
	

	 	 	5429 LBJ Freeway	 	 
	 	 	Suite 400	 	 
	 	 	Dallas, Texas 75240	 	 
	 
	 	 	 	 	 	 
	 	 	PROINVEST REALTY FUND LLC, a	 	 
	 	 	Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	

	 

	 	By:
	 	/s/ G N Olson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	G N Olson	 	 
	 

	 	 	 	Chief Executive Officer and	 	 
	 

	 	 	 	Chairman of Board of Managing	 	 
	 

	 	 	 	Directors	 	 
	

	 
	 	 	 	 	 	 
	 	 	8333 Douglas Avenue	 	 
	 	 	Suite 1450	 	 
	 	 	Dallas, Texas 75225-5852	 	 

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