Document:

Escrow Agreement

    EXHIBIT
      10.1

    

    ESCROW
      AGREEMENT

    

    This
      Escrow Agreement (the “Agreement”) is dated as of May 14, 2007 and is made by
      and between Palm Desert National Bank (the “Escrow Agent”), US Euro Securities,
      Inc., a California Corporation (the “Underwriter”) and U.S. Dry Cleaning
      Corporation, a Delaware corporation (the “Company”).

    

    WHEREAS,
      the
      Company proposes to issue up to 3,000,000 units (the “Units”) for aggregate
      proceeds of $7,500,000 (the “Maximum Amount”), each Unit consisting of one share
      of the common stock of the Company and one redeemable common stock purchase
      warrant, in a public offering on a best efforts basis, at the purchase price
      of
      $2.50 per Unit (the “Offering”);

    

    WHEREAS,
      the
      terms of the Offering provide that all proceeds received from the Offering
      will
      be placed into an interest-bearing escrow account and not be released to the
      Company until at least the minimum offering amount of 1,500,000 Units, for
      aggregate proceeds of $3,750,000 (the “Minimum Amount”), are subscribed for and
      paid for by the investors (the “Subscribers”) during the time period prescribed
      for the Offering; and

    

    WHEREAS,
      the
      Company and the Underwriter desire that the Escrow Agent be engaged for the
      purpose of receiving, depositing, and holding in a segregated account all funds
      received (the “Proceeds”) from the Subscribers in connection with the Offering
      until such time as such funds are to be released to the Company, the
      Underwriter, or returned to the Subscribers pursuant to the terms of this
      Agreement.

    

    NOW,
      THEREFORE,
      it is
      agreed as follows:

    

    Section
      1. Appointment
      of Escrow Agent

    

    The
      Company hereby appoints the Escrow Agent as escrow agent and custodian for
      the
      purposes of this Agreement, and the Escrow Agent accepts such appointment,
      each
      upon the terms and subject to the conditions set forth in this
      Agreement.

    

    Section
      2. Establishment
      of Escrow Account

    

    The
      Escrow Agent shall, prior to the effective date of the Offering, cause to be
      opened a fully segregated, escrow account entitled “Palm Desert National Bank
      for the benefit of U.S. Dry Cleaning Corporation Public Offering Escrow Account”
(the “Escrow Account”) for the purpose of holding in trust all Proceeds on
      behalf of the Company, the Underwriter, and the Subscribers. Checks and wires
      may come in with unintentional variations on this name such as, PDNB f/b/o
      USDC
      or USDC IPO Account or USDC Escrow Account. Any of these names will be deemed
      acceptable with reference to Sections 3 and Section 4 of this Agreement. The
      Escrow Agent shall invest funds in a non-interest-bearing Palm Desert National
      Bank Account, which is FDIC insured "to
      the
      fullest extent of the law.".
      Company
      acknowledges that the Palm Desert National Bank deposit account is designed
      to
      meet the needs of escrow and other corporate trust customers of Palm Desert
      National Bank.

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    Section
      3. Deposits

    

    (a) The
      Escrow Agent shall deposit the Proceeds in the Escrow Account on the terms
      and
      conditions of this Agreement.

    

    (b) Except
      as
      provided herein, the Escrow Agent is not authorized absent the Company’s and the
      Underwriter’s express written consent to accept instructions under this
      Agreement from anyone other than both the Company and the
      Underwriter.

    

    (c) The
      Company and/or its designees shall, in connection with all Proceeds received
      under the Offering, instruct each Subscriber to remit the purchase price in
      the
      form of checks or wire transfers payable to the Escrow Agent. Checks must list
      the name of the Subscriber and the Subscriber’s address and telephone number on
      its face. Checks must be certified if remitted during the last five business
      days of the offering period. Wire transfers shall be made in Federal Funds
      transferred as follows:

    

    Palm
      Desert National Bank

    f/b/o
      US
      Dry Cleaning Corporation Public Offering Escrow Account

    73-745
      El
      Paseo

    Palm
      Desert, CA 92260

    Attn:
      Julie Ortega

    ABA
      #:
      122238585

    Acct
      #:
      001-097040

    

    Wire
      transfers must be accompanied by the name of the Subscriber and the Subscriber’s
      address and telephone number. The Escrow Agent shall deposit promptly into
      the
      Escrow Account all of the Proceeds received in accordance herewith.

    

    (d) The
      Escrow Agent shall furnish to the Company and the Underwriter at least once
      a
      day the following information: (i) a copy of the subscription agreements and
      checks of all Subscribers who have tendered funds; (ii) the proceeds that the
      Escrow Agent has received from each Subscriber, and (iii) how much of the
      proceeds are held in good funds.

    

    (e) The
      Escrow Agent shall notify the Company and the Underwriter of any checks which
      are received by the Escrow Agent that are made payable to a party other than
      the
      Escrow Agent or do not otherwise meet the requirements set forth in Section
      3(c)
      above so that they may contact the Subscriber and take appropriate corrective
      action. If the Escrow Agent does not receive instructions from the Company
      or
      the Underwriter respecting the disposition of said check prior to the close
      of
      business on the fifth business day after notifying the Company and the
      Underwriter of receipt of said check, then the Escrow Agent shall return the
      funds to the prospective Subscriber.

    

    (f) The
      Escrow Agent shall notify the Company and the Underwriter in the event that
      the
      Escrow Agent receives a wire transfer that does not comport with the
      requirements set forth in Section 3(c) above. If the Escrow Agent does not
      receive instructions from the Company or the Underwriter respecting the
      disposition of said wire prior to the close of business on the fifth business
      day after notifying the Company and the Underwriter of receipt of said wire,
      then the Escrow Agent shall return the funds to the prospective
      Subscriber.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    Section
      4. Rejection
      of Subscriptions

    

    Since
      any
      subscriptions shall relate to the offering of the Units pursuant to a
      registration statement declared effective by the Securities and Exchange
      Commission (“SEC”), it will be presumed that all subscriptions received by the
      Escrow Agent will be acceptable to the Company. Notwithstanding the foregoing,
      the terms of the Offering provide that any subscription may be accepted or
      rejected in whole or in part by the Company or the Underwriter. The Escrow
      Agent
      shall furnish to the Company and the Underwriter at least once a week a list
      containing the names and addresses of Subscribers and the number of Units
      subscribed for by each Subscriber. With respect to each subscription which
      is
      rejected, the Company will notify the Underwriter and the Escrow Agent of such
      rejection in writing, and upon receipt of such notification, the Escrow Agent
      will within five business days, assuming the Subscriber’s funds have cleared,
      issue a check in the amount of the rejected Subscriber’s subscription with
      accrued interest directly to the rejected Subscriber.

    

    Section
      5. Disbursements
      from Proceeds

    

    (a) If
      subscriptions for the Minimum Amount have not been deposited in the Escrow
      Account and accepted by the Company on or before (i) 60 days after the effective
      date of the registration statement filed by the Company in connection with
      the
      Offering, if the Company has not extended the offering period by up to an
      additional 60 days; or (ii) in the event that the Company has extended the
      offering period by up to an additional 60 days, the date on which any such
      extension of the offering period will end as notified by the Company to the
      Escrow Agent; or (iii) the date upon which the Company elects to terminate
      the
      Offering (the “Termination Date”), then upon instruction by the Company as to
      the amounts and recipients of the funds then being held in escrow, the Escrow
      Agent shall terminate the Escrow Account and return the subscription funds
      to
      each Subscriber within five business days thereafter.

    

    (b) Upon
      receipt of (i) at least the Minimum Amount (or such greater amount as the
      Company may direct in writing) and (ii) receipt of the Escrow Release Letter,
      in
      a form substantially similar to Exhibit A attached hereto and incorporated
      herein by this reference, signed by the Company and Underwriter (the “Escrow
      Release Letter”) that funds may be released from escrow, the Escrow Agent shall
      release all of the Proceeds held in the Escrow Account to the Company and the
      Underwriter in accordance with Section 6.

    

    Section
      6. Procedure
      for Disbursement from the Escrow Account

    

    The
      Proceeds held in the Escrow Account shall be subject to and distributed in
      accordance with the following provisions:

    

    (a) The
      Escrow Agent may act in reliance upon any signature believed by it to be
      genuine, and may assume that that any person whose name appears on Schedule
      I,
      who has
      been designated by the Company and the Underwriter to give any written
      instructions, notice or receipt, or make any statements in connection with
      the
      provisions hereof has been duly authorized to do so. The Escrow Agent shall
      have
      no duty to make inquiry as to the genuineness, accuracy or validity of any
      statements or instructions or any signatures on statements or instructions.
      The
      names and true signatures of each individual authorized to act singly on behalf
      of the Company and the Underwriter are stated in Schedule
      I,
      which
      is attached hereto and made a part hereof. The Company and the Underwriter
      may
      each remove or add one or more of its authorized signatories stated in
Schedule
      I
      by
      notifying the Escrow Agent in writing of such change in accordance with this
      Agreement, which notice shall include the true signature for any new authorized
      signatories.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (b) If
      by the
      Termination Date, the Escrow Agent has not received a Escrow Release Letter
      for
      any particular amounts received from Subscribers and deposited in the Escrow
      Account, the Escrow Agent shall refund all of the Subscribers’ funds in the
      Escrow Account to the applicable Subscribers not earlier than five business
      days
      after the Company and the Underwriter receive written notice from Escrow Agent
      of Escrow Agent’s intent to return such Subscribers’
      funds
      to the
      applicable Subscribers.

    

    (c) Upon
      satisfaction of the applicable requirements of this Section, the Escrow Agent
      shall transfer by wire or interaccount transfer the Proceeds requested to be
      transferred on such date as directed in the Escrow Release Letter.

    

    (d) The
      Escrow Agent does not have any property interest in the funds deposited in the
      Escrow Account (the “Escrowed Property”) but is serving only as escrow holder
      and custodian thereof. Upon request, the Company shall pay or reimburse the
      Escrow Agent for any transfer taxes or other taxes relating to the Escrowed
      Property incurred in connection herewith and shall indemnify and hold harmless
      the Escrow Agent for any amounts that it is obligated to pay in the way of
      such
      taxes. This paragraph shall survive the termination of this Escrow Agreement
      or
      the resignation of the Escrow Agent.

    

    Section
      7. Termination
      of Escrow

    

    The
      Escrow Account will remain open until the earliest to occur of the following:
      (i) the release of the Maximum Amount in accordance with Sections 5 and/or
      6 of
      this Agreement; or (ii) the termination of the Offering by the Company. At
      which
      time, the Agreement shall terminate and the Escrow Agent shall be relieved
      of
      all responsibilities in connection with the Escrowed Property provided for
      in
      this Agreement, except for claims that are occasioned by its negligence, bad
      faith or willful misconduct.

    

    Section
      8. Compensation
      of Escrow Agent.

    

    (a) For
      its
      services hereunder, the Escrow Agent shall be entitled to receive from the
      Company: (i) a fee of $5,000.00 for escrow setup and maintenance upon the
      execution and delivery of this Agreement, and (ii) reimbursement for any
      reasonable out-of-pocket expenses incurred by the Escrow Agent in connection
      with the services provided in accordance with this Agreement and the Escrow
      Agent’s fee schedule.

    

    (b) The
      provisions of this Section shall survive the termination of this Agreement
      and/or the resignation or removal of the Escrow Agent.

    

    Section
      9. Responsibilities
      of Escrow Agent; Notices

    

    (a) The
      Escrow Agent shall be under no duty to enforce the payment of any subscription
      for which funds are tendered in connection herewith; provided, however, that
      the
      Escrow Agent must inform the Company and Underwriter within five business days
      in the event that any tendered payment is denied or deemed
      uncollectible.

    

    (b) The
      Escrow Agent shall be obligated to perform only such duties as are expressly
      set
      forth in this Agreement. No implied covenants or obligations shall be inferred
      from this Agreement against the Escrow Agent, nor shall the Escrow Agent be
      bound by the provisions of any agreement with the Company beyond the specific
      terms hereof.

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    (c) The
      Escrow Agent shall not be liable hereunder except for its own gross negligence,
      bad faith, or willful misconduct and the Company agrees to indemnify the Escrow
      Agent and hold it harmless as to any loss, liability, or expense, including
      reasonable attorney’s fees and expenses, incurred without gross negligence, bad
      faith, or willful misconduct on the part of the Escrow Agent and arising out
      of
      or in connection with the Escrow Agent’s duties under this
      Agreement.

    

    (d) The
      Escrow Agent shall be entitled to rely upon any order, judgment, certification,
      instruction, notice, opinion or other writing delivered to it in compliance
      with
      the provisions of this Agreement without being required to determine the
      authenticity or the correctness of any fact stated therein or the propriety
      or
      validity of service thereof. The Escrow Agent may act in reliance upon any
      instrument comporting with the provisions of this Agreement and upon signature
      believed by it to be genuine and may assume that any person purporting to give
      notice or receipt or advice or to make any statement or execute any document
      in
      connection with the provisions hereof has been duly authorized to do
      so.

    

    (e) The
      Escrow Agent may at any time request in writing, an instruction in writing
      from
      the Company and the Underwriter, and may at its own option include in such
      request the course of action that the Escrow Agent proposes to take and the
      date
      on which it proposes to act, regarding any matter arising in connection with
      its
      duties and obligations hereunder. The Escrow Agent shall not be liable for
      acting without the Company’s and the Underwriter’s consent in accordance with
      such a proposal on or after the date specified therein, provided that the
      specified date shall be at least five business days after the Company and the
      Underwriter receives the Escrow Agent’s request for instructions and its
      proposed course of action, and provided that, prior to so acting, the Escrow
      Agent has not received written instructions from the Company and the
      Underwriter.

    

    (f) The
      Escrow Agent may act pursuant to the advice of counsel chosen by it with respect
      to any matter relating to this Agreement.

    

    (g) The
      Escrow Agent shall not be called upon to advise any party as to selling or
      retaining, or taking or refraining from taking any action with respect to any
      securities or other property deposited hereunder.

    

    (h) No
      provision of this Agreement shall require the Escrow Agent to expend or risk
      its
      own funds or otherwise incur any financial liability in the performance of
      any
      of its duties hereunder.

    

    (i) The
      Escrow Agent shall be deemed conclusively to have given and delivered any notice
      required to be given or delivered to the Company and the Underwriter if it
      is in
      writing, signed by any one of the Escrow Agent’s authorized officers, five
      business days after it is deposited in the United States Mail, postage paid,
      express, registered or certified mail, return receipt requested, or one business
      day after it is deposited with a recognized national overnight delivery service,
      addressed to the Company and to the Underwriter at:

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    U.S.
      Dry
      Cleaning Corporation

    125
      Tahquitz Canyon Way, Suite 203

    Palm
      Springs, CA 92262

    Phone:
      (760) 322-7447

    Attention:
      Chief Executive Officer

    

    US
      Euro
      Securities

    Attn:
      Michael Roy Fugler, Chairman

    Penthouse
      Floor

    13661
      Perdido Key Drive

    Perdido
      Key, FL 32507

    Phone:
      (212) 631-7770

    

    (j) The
      Escrow Agent shall be deemed conclusively to have received any notice required
      to be given or delivered to the Escrow Agent if it is in writing, signed by
      any
      one of the authorized officers of the Company or Underwriter, when it is hand
      delivered by an officer of the Company or the Underwriter at or five business
      days after it is deposited in the United States Mail, postage paid, express,
      registered or certified mail, return receipt requested, or one business day
      after it is deposited with a recognized national overnight delivery service,
      addressed to the Escrow Agent at:

    

    Palm
      Desert National Bank

    73-745
      El
      Paseo

    Palm
      Desert, CA 92260

    Attn:
      Julie Ortega

    Phone:
      (760) 674-1447

    

    (k) The
      Escrow Agent hereby accepts its obligations under this Agreement, and represents
      and warrants that the Escrow Agent has the power and legal authority to enter
      into this Agreement and to perform the Escrow Agent’s obligations under this
      Agreement. The Escrow Agent covenants and agrees that all Escrowed Property
      shall be identified as being held in escrow in connection with this Agreement.
      The Escrow Agent further covenants and agrees that all documents and records
      with respect to the matters subject to and transactions contemplated by this
      Agreement will be available, upon reasonable written notice, for examination
      by
      the Company, the SEC or any state securities authorities.

    

    (l) The
      provisions of this Section shall survive termination of this Agreement and/or
      the resignation or removal of the Escrow Agent.

    

    Section
      10. Resignation
      of Escrow Agent; Successor

    

    Notwithstanding
      anything to the contrary herein, the Escrow Agent may resign at any time by
      giving at least 30 days written notice thereof. The Company may remove the
      Escrow Agent at any time by giving at least 15 days written notice thereof.
      Within ten days after receiving such notice, the Company shall appoint a
      successor escrow agent at which time the Escrow Agent shall either (i)
      distribute as directed by the Escrow Release Letter the funds held in the Escrow
      Account, less the Escrow Agent’s fees, costs and expenses or other obligations
      owed to the Escrow Agent, or (ii) hold such funds pending distribution until
      such fees, costs and expenses or other obligations are paid. If a successor
      escrow agent has not been appointed or has not accepted such appointment by
      the
      end of the ten day period, then the Escrow Agent may apply to a court of
      competent jurisdiction for the appointment of a successor escrow agent or for
      other appropriate relief, and the costs, expenses and reasonable attorneys
      fees
      which the Escrow Agent incurs in connection with such a proceeding shall be
      paid
      by the Company.

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    Section
      11. Claims
      Respecting Funds in Escrow

    

    In
      the
      event of any dispute or conflicting claims by, between or among the Company
      and/or the Underwriter and/or any other person or entity with respect to any
      Proceeds held in the Escrow Account, the Escrow Agent shall be entitled, at
      its
      sole discretion, to refuse to comply with any and all claims, demands or
      instructions with respect to such Proceeds so long as such dispute or conflict
      shall continue, and the Escrow Agent shall not be or become liable in any way
      to
      the Company for the Escrow Agent’s failure or refusal to comply with such
      conflicting claims, demands or instructions, except to the extent that such
      failure would constitute gross negligence, bad faith or willful misconduct
      on
      the part of the Escrow Agent. The Escrow Agent shall be entitled to refuse
      to
      act until, at its sole discretion, either such conflicting or adverse claims
      or
      demands shall have been finally determined in a court of competent jurisdiction
      or settled by agreement between the conflicting parties as evidenced in writing
      satisfactory to the Escrow Agent, or the Escrow Agent shall have received
      security or an indemnity reasonably satisfactory to the Escrow Agent sufficient
      to hold the Escrow Agent harmless from and against any and all loss, liability
      or expense which the Escrow Agent may incur by reason of the Escrow Agent’s
      acting. The Escrow Agent may in addition elect at its sole discretion to
      commence an interpleader action or seek other judicial relief or order as the
      Escrow Agent may deem necessary.

    

    Section
      12. Dispute
      Resolution

    

    Except
      as
      otherwise provided in this Agreement and except for ancillary measures in aid
      of
      arbitration and for proceedings to obtain provisional remedies and interim
      relief, including, without limitation, injunctive relief, any controversy,
      dispute or claim between the parties hereto arising out of or in connection
      with
      or relating to this Agreement shall be finally settled by arbitration conducted
      expeditiously in accordance with the Commercial Arbitration Rules then in force
      of the American Arbitration Association. The situs for any arbitration shall
      be
      Palm Springs, California.

    

    Section
      13. Extraordinary
      Expense

    

    (a) It
      is
      understood that fees and usual charges agreed upon for the Escrow Agent’s
      services shall be considered compensation for its services as contemplated
      by
      this Agreement, and if the Escrow Agent renders any service not provided for
      in
      this Agreement, or if there is any assignment of any interest in the subject
      matter of this Agreement by the Company, or if there is any modification of
      this
      Agreement, or if any controversy arises under this Agreement, or if the Escrow
      Agent is made a party to any litigation pertaining to this Agreement or the
      subject matter of this Agreement, then the Escrow Agent shall be reasonably
      compensated for those extraordinary services and shall be reimbursed for all
      costs and expenses occasioned by such services, controversy or litigation and
      the Company hereby promises to pay such sums upon demand.

    

    (b) The
      provisions of this Section shall survive termination of this Agreement and/or
      the resignation or removal of the Escrow Agent.

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    Section
      14. Governing
      Law; Counterparts

    

    This
      agreement shall be governed by and construed in accordance with the laws of
      the
      State of California without reference to its provisions respecting conflicts
      of
      laws. This Agreement may be executed in counterparts, each of which shall be
      deemed an original and all of which together shall constitute one and the same
      instrument. Each of the Parties hereby waives the right to trial by jury and
      to
      assert counterclaims in any such proceedings. Each Party waives personal service
      of process and consents to service of process by certified or registered mail,
      return receipt requested, directed to it at the address last specified for
      notices hereunder, and such service shall be deemed completed ten calendar
      days
      after the same is so mailed.

    

    Section
      15. Maintenance
      of Record.

    

    The
      Escrow Agent shall maintain accurate records of all transactions hereunder.
      Within three business days after the termination of this Agreement, and as
      may
      from time to time be reasonably requested by the Company or the Underwriter
      before such termination, the Escrow Agent shall provide the Company or the
      Underwriter with a copy of such records, certified by the Escrow Agent to be
      a
      complete and accurate account of all transactions hereunder. The authorized
      representatives of the Company and the Underwriter shall also have access to
      the
      Escrow Agent’s books and records to the extent relating to their duties
      hereunder, during normal business hours and upon reasonable notice to the Escrow
      Agent.

    

    Section
      16. Miscellaneous.

    

    (a) Nothing
      in this Agreement is intended or shall confer upon anyone other than the parties
      any legal or equitable right, remedy or claim.

    

    (b) The
      invalidity of any portion of this Agreement shall not affect the validity of
      the
      remainder hereof.

    

    (c) This
      Agreement is the final integration of the agreement of the parties with respect
      to the matters covered by it and supersedes any prior understanding or
      agreement, oral or written, with respect thereto.

    

    (d) The
      rights and obligations of each party hereto may not be assigned or delegated
      to
      any other person without the written consent of the other party hereto. Subject
      to the foregoing, the terms and provisions hereof shall be binding upon and
      inure to the benefit of the parties hereto and their respective successors
      and
      permitted assigns.

    

    (e) Escrow
      Agent shall not incur any liability for not performing any act or fulfilling
      any
      duty, obligation or responsibility hereunder by reason of any occurrence beyond
      the control of Escrow Agent (including but not limited to any act or provision
      of any present or future law or regulation or governmental authority, any act
      of
      God or war, or the unavailability of the Federal Reserve Bank wire or telex
      or
      other wire or communication facility).

    

    (f) In
      the
      event any party hereto shall commence legal proceedings against the other to
      enforce the terms hereof, or to declare rights hereunder, as the result of
      a
      breach of any covenant or condition of this Agreement, the prevailing party
      in
      any such proceeding shall be entitled to recover from the losing party its
      costs
      of suit, including reasonable attorneys' fees, as may be fixed by the
      court.

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (g) The
      section headings in this Agreement are for the convenience of the parties only,
      and in no way alter, modify, amend, limit or restrict the contractual
      obligations of the parties hereto.

    

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

     

    
      	
              US
                Euro Securities, Inc.

               

               

              By:     
                /s/ Michael Roy
                Fugler                                          
                             
                

              Name:
                Michael Roy Fugler

              Title:
                Chairman

            	
              U.S.
                Dry Cleaning Corporation

               

               

              By:     
                /s/ Robert Y.
                Lee                                                                   
                

              Name:
                Robert Y. Lee

              Title:
                Chief Executive Officer

            
	
               

               

              PALM
                DESERT NATIONAL BANK

              as
                Escrow Agent

               

               

              By:      /s/
                Julie K.
                Ortega                                                                  
                

              Name:
                Julie K. Ortega

              Title:
                Senior Vice President & Chief Compliance Officer

            	
               

            

    

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

        
          

        

      

    

    Schedule
      I

     

    The
      Escrow Agent is authorized to accept instructions signed or believed by the
      Escrow Agent to be signed by any one of the following on behalf of the Company
      and the Underwriter. 

    

    U.S.
      DRY CLEANING CORPORATION, INC.

    

    Name                                                  
         True
      Signature

    

    

    Robert
      Y.
      Lee                                       
_____________________________________     

    

    

    US
      EURO SECURITIES, INC.

    

    Name                                                    
        True
      Signature

    

    

    Michael
      Roy
      Fugler                             
_____________________________________

    
 

    -10-CHAPTER 9D

Assumption of Consulting Agreement

THIS AGREEMENT dated for reference January 31, 2007.

AMONG:

Lions Petroleum, Inc., a body corporate duly incorporated under the law of Delaware having an office at Suite 2800 South, 600 17th Street, Denver, Colorado, 80202 

 (“Lions”)

AND:

Providence Securities Ltd., a corporation under the laws of the Bahamas and having an office at P.O. Box H.M. 3062, Hamilton, HMNX Bermuda

 (“Offco”)

AND:

Meadow Vista Financial Corp. of 2710 Thomas Ave., Suite 636, Cheyenne, Wyoming 82001 

 (“Vista”)

WHEREAS:

A.

Lions and Offco entered into an agreement dated for reference the 31st day of January, 2007 (the “Consulting Agreement”) whereby Offco has agreed to perform certain consulting services for Lions;

B.

Vista has entered into an agreement with Offco to assume all of Offco’s obligations under the Consulting Agreement;

C.

Lions has agreed to Vista assuming all of Offco’s obligations under the Consulting Agreement.  

NOW THEREFORE in consideration of the covenants and consent contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties, the parties agree as follows:

1.

Defined Terms

For the purposes of this agreement:

(a)                                                                                                                        

“Agreement” means this agreement and any schedules or exhibits thereto; 

(b)                                                                                                                        

“Effective Date” means the date written above;

(c)                                                                                                                        

“Offco’s Covenants” means all obligations of Offco under the Consulting Agreement.

2.

Vista’s Covenants

From and after the Effective Date, Vista will:

(a)

provide the services to Lions in the manner provided for in the Consulting Agreement;

2

(b)

perform all of Offco’s Covenants as if Vista had covenanted to do so for valuable consideration and under seal pursuant to the terms the Consulting Agreement as and when  such agreement was executed and delivered by the parties thereto; and

(c)

indemnify and save harmless Offco from all actions, suits, costs, losses, damages, charges and expenses for or in respect of any breach or non-fulfillment by Vista of any of Offco’s Covenants arising on and after the Effective Date.

3.

Acknowledgement

By execution hereof, Lions and Offco acknowledge and agree that, from the Effective Date, all obligations of Offco in respect to the performance of any of Offco’s Covenants which have not accrued or arisen before the Effective Date will be at an end, and thereafter Vista will be solely responsible for performance of Offco’s Covenants and Lions will look solely to Vista therefore. 

4.

Notices

Any notice given in connection with this Agreement will be delivered to the respective addresses set out above or to such other address as any of the parties may designate in writing.

5.

Survival of Provisions

The provisions of the Consulting Agreement will survive the execution and delivery of this Agreement and will not merge in this Agreement.

6.

Further Assurances

Each party will, at all times hereafter at the request and cost of any other party, execute such further and other documents as such other party may reasonably require in order to evidence or give effect to the terms of this Agreement.

7.

Enurement

This Agreement will enure to the benefit of and be binding upon the parties and their respective heirs, administrators, personal representatives, successors and assigns.

8.

Counterparts

This Agreement may be executed in counterpart, each of which will be deemed to be an original and both of which will constitute one and the same instrument.

9.

Choice of Law

This Agreement shall be governed by and construed in accordance with the law of British Columbia and the parties will attorn to the Courts thereof and hereby select Vancouver, British Columbia as the proper forum for any action commenced by any party with respect to this Agreement or the transactions contemplated herein.

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

3

			
	The corporate seal of Lions Petroleum, Inc.

	)

	 

	was hereunto affixed in the presence of:

	)

	 

	/s/ Gordon L. Wiltse

Authorized Signatory

	)

	c/s

	

_______________________________

Authorized Signatory

	)

	 

			
	The corporate seal of Meadow Vista Financial Corp.  

	)

	 

	was hereunto affixed in the presence of:

	)

	 

	/s/Carol McKeown

Authorized Signatory

	)

	c/s

	

______________________________________

Authorized Signatory

	

)

	 

			
	The corporate seal of  Providence Securities Ltd. 

	)

	 

	was hereunto affixed in the presence of:

	)

	 

	/s/ Kenneth Taves

Authorized Signatory

	)

	c/s

	

__________________________________________

Authorized Signatory

	)

	 

CONSULTING AGREEMENT

THIS AGREEMENT dated for reference January 31, 2007.

BETWEEN:

PROVIDENCE SECURITIES LTD., a corporation under the laws of the Bahamas and having an office at P.O. Box H.M. 3062, Hamilton, HMNX Bermuda

(hereinafter called the "Consultant")

OF THE FIRST PART

AND:

LIONS PETROLEUM, INC., a corporation incorporated under the laws of Delaware and having an office at 600 17th Street, Suite 2800 South, Denver, Colorado 80202

(hereinafter called the “Company”)

OF THE SECOND PART

WHEREAS:

A.

The Company wishes to acquire and the Consultant wishes to supply the services described herein upon the terms and conditions set out in this Agreement;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual premises and covenants contained in this Agreement, the parties hereto covenant and agree as follows:

1.

Provision of Services

1.1

Subject to the terms of this Agreement, the Consultant shall provide to the Company the services listed in Schedule "A" hereto and all such other services as are necessarily incidental thereto that may be required by the Company (the "Services").

1.2

The Consultant shall use his best efforts to further the interests of the Company in providing the Services.

2

2.

Changes in Service

2.1

The Company shall be entitled to order changes and/or deletions from the Services as set out in Schedule "A" by giving written notice to the Consultant without invalidating this Agreement.  The Consultant shall be deemed to have agreed to such changes and/or deletions and the Services to be provided hereunder shall be modified accordingly.

3.

Remuneration of Consultant

3.1

In consideration of the Consultant's performance of the Services as required by this Agreement the Company shall pay the Consultant the following remuneration:

(a)

US$100,000

4.

Consultant Not Agent or Employee

4.1

The Consultant is not the employee or agent of the Company and accordingly, shall not purport to enter into any a contract or subcontract on behalf of the Company or otherwise purport to act on its behalf.  Nothing in this Agreement shall be deemed to require the Consultant to provide his services exclusively to the Company and the Consultant hereby acknowledges that the Company shall not be required to make any remittances or payments required of employers by statute on the Consultant's behalf and the Consultant shall not be entitled to the fringe benefits provided by the Company to its employees.

4.2

The Company acknowledges that since the Consultant is an independent contractor and not an employee of the Company, the Consultant shall have direction and control of the manner, methods, techniques and procedures used by the Consultant to perform the Services.

5.

Facilities

5.1

The Consultant shall provide all the facilities (including office space, typing, document reproduction, computer programming and other clerical assistance) that may be required by the Consultant to perform the Services.

6.

Books and Records

3

6.1

The Consultant shall keep proper accounts and records of all expenditures made by it in connection with the Services, and of the time expended by him in performing the Services and all invoices, receipts and vouchers relating thereto.

7.

Company's Obligations

7.1

The Company shall make available to the Consultant such information and data and shall permit the Consultant to have access to such documents or premises as are reasonably necessary to enable it to perform the Services.

8.

Confidentiality and Ownership of Work Product

8.1

All reports, documents, concepts, reports, financial records, products, technology, and processes together with any marketing schemes, business or financing contacts, or information pertaining to prospective acquisitions, joint ventures or business combinations or any business opportunities prepared, produced, developed, or acquired, by or at the direction of the Consultant, directly or indirectly, in connection with or otherwise developed or first reduced to practice by the Consultant in the course of performing Services pursuant to this Agreement including, without limiting the generality of the foregoing, all inventions, discoveries, designs, concepts and results of reach and development (whether or not reduced to writing and whether or not patentable or protectable by copyright), financial or accounting information, analysis, projections, data (whether in electronic or other form), contact lists, and contract sheets, financing leads, sales material and marketing, financial or technical information pertaining to the Company’s business (collectively, the “Work Product”) shall belong exclusively to and shall be the sole property of the Company and the Company shall be entitled to all right, title and interest therein, and all profits, or benefits therefrom.  No copies, summaries or other reproductions of any Work Product shall be made by the Consultant without the express permission of the Company and the Consultant shall, forthwith upon the Company’s request, deliver to the Company all Work Product in the possession of or otherwise available to or under the control of the Consultant notwithstanding a termination of this Agreement.

8.2

The Consultant shall not at any time either during the term of this Agreement or thereafter divulge to any person, firm or corporation, any information, documents or Work Product (other than information, documents or Work Product which the Company has authorized for public disclosure or which has previously been disclosed to the public) received by him during the course of his providing the Services to the Company with regard to the business, assets, interests, plans, opportunities, technical development, financial or other affairs or interests of the Company or any of it subsidiaries, or the Company’s directors, officers and employees, whether or not such information is marked or otherwise identified as confidential or proprietary to the Company, and all such information shall be kept confidential and shall not in any manner 

4

be used by the Consultant or revealed to anyone by the Consultant, except as may be required by law or otherwise permitted by the Company in writing.

8.3

The Consultant shall comply, and shall take proper measures to cause all employees of the Consultant or other persons under his direction or control to comply, with such directions as the Company shall make to ensure the safeguarding or confidentiality of all such information, documents, and Work Product and, without limiting the generality of the foregoing, shall execute and deliver and shall cause to be executed and delivered, such confidentiality or other agreements as the Company respecting same as the Company may from time to time require.

9.

Duties of Consultant

9.1

During the term of this Agreement, the Consultant shall devote such of his time, attention and abilities to the business of the Company as is reasonably necessary for the proper exercise of his duties pursuant to this Agreement.  Nothing contained herein shall be deemed to require the Consultant to devote his exclusive time, attention and ability to the business of the Company.

9.2

During the term of this Agreement, the Consultant agrees that it will:

(a)

at all times except when disabled by sickness or incapacity, faithfully and diligently perform his duties and use his best efforts to promote and advance the business of the Company;

(b)

devote such of his time, labour and attention to the business of the Company as is necessary for the proper exercise of the Consultant's duties hereunder and, except as otherwise provided herein, refrain from engaging in any business, venture, or other commercial or sales activities that in any way conflict with or detract from his ability to fulfill his duties in the manner contemplated in this paragraph; and

(c)

refrain from acting in any manner contrary to the interests of the Company or contrary to the duties of the Consultant as contemplated herein.

9.3

Without limiting the generality of the foregoing, the Consultant shall not during the term of this Agreement:

5

(a)

act in any manner contrary to the terms of this Agreement, or the best interests of the Company; or

(b)

take advantage for personal gain, either directly or indirectly, of a business opportunity, which opportunity arose because of the Consultant's relationship with the Company unless such opportunity is first presented to the Company and the Company expressly declines to take advantage of or pursue such opportunity and agrees in writing that the Consultant may take advantage thereof.

10.

Liability of Consultant

10.1

The Consultant shall indemnify and save the Company harmless from and against all costs, expenses, losses, damages and obligations it may suffer or incur as the result of the breach of any covenant or warranty made by the Consultant in this Agreement.

11.

Termination

11.1

The term of this Agreement shall be for one (1) year and shall commence upon the 31st day of January, 2007 and unless terminated earlier pursuant to the provisions hereof, or unless renewed in writing by the parties, shall expire on the 31st day of January, 2008.

11.2

This Agreement may be terminated prior to the completion of the Services as follows:

(a)

by the Consultant upon 30 days' prior written notice; or

(b)

immediately upon the Company giving written notice to the Consultant of the occurrence of an Event of Default as defined in clause 11.4.

If either party fails to give any such notice, this Agreement shall continue in full force and effect.

11.3

Upon the termination of this Agreement, the Company shall, subject to its right to set off any damages or other amounts claimed by the Company from the Consultant, pay to the Consultant all amounts accruing hereunder up to and including the effective date of termination.

6

11.4

An Event of Default shall be deemed to occur if:

(a)

the Consultant is in breach of any covenant, obligation or warranty hereunder and such breach continues for a period of seven (7) days after written notice thereof has been given to the Consultant; or

(b)

the Consultant becomes insolvent or unable to discharge his liabilities generally as they become due, makes an assignment for the benefit of his creditors, or is made subject to a petition or other proceedings in bankruptcy.

11.5

Notwithstanding the termination of this Agreement or any other provision herein, the covenants and obligations under section 8 hereof or contained in any agreement delivered hereunder with respect to the use of confidential information, work product or non-competition with the Company shall remain in full force and effect.

12.

Non-Assignability

12.1

The Consultant shall not subcontract to any person, any right, duty or obligation hereunder without the prior written consent of the Company.  This Agreement may not be assigned by either party without the prior written consent of the other party.

13.

Co-operation with Other Parties

13.1

The Consultant shall co-operate with all other parties engaged or employed by the Company from time to time and shall coordinate his activities with the activities of such parties as and when requested by the Company.

14.

Force Majeure

14.1

Notwithstanding anything herein to the contrary, neither party hereto shall be deemed to be in default with respect to the performance of the terms, covenants and conditions of this Agreement if the same shall be due to any strike, lock-out, civil commotion, invasion, rebellion, hostilities, sabotage, governmental regulations or controls, or acts of God.

15.

Notice

7

15.1

All notices, demands and payments required or permitted to be given hereunder shall be in writing and may be delivered personally, or sent by telegram or telex or other means of electronic communication providing a printed copy ("Electronic Communication") or may be forwarded by first class prepaid registered mail to the addresses set forth below.  Any notice delivered or sent by Electronic Communication deemed to have been given and received at the time of delivery.  Any notice mailed as aforesaid shall be deemed to have been given and received on expiration of 72 hours after it is posted, addressed to the Company or the Consultant at their respective addresses or telefax numbers set out above or such other address or addresses or telefax numbers as the parties may from time to time give notice of in writing; provided that if there shall be between the time of mailing and the actual receipt of the notice a mail strike, slow down or other labour dispute which may affect the delivery of such notice by the mails, then such notice shall be effective only if actually delivered.

16.

Entire Agreement

16.1

The provisions herein contained constitute the entire agreement between the parties and supersede all previous communications, representations and agreements, whether oral or written, between the parties with respect to the subject matter hereof.

17.

Further Assurances

17.1

Each of the parties shall execute such other documents and instruments and shall do such other acts as may be necessary to implement and carry out the intent of this Agreement.

18.

Proper Law, Attornment and Venue

18.1

This Agreement will be governed by and construed in accordance with the laws of British Columbia.  The Company and the Consultant hereby attorn to jurisdiction the Courts thereof and hereby select Vancouver, British Columbia as the proper forum for any action commenced by any party with respect to this Agreement or the transactions contemplated herein.

19.

Time of Essence

19.1

Time is of the essence of this Agreement.

20.

Waiver of Breach

8

20.1

The waiver by either the Company or the Consultant of a breach of any provisions of this Agreement by the other party to this Agreement shall not operate or be construed as a waiver of any subsequent breach by that party.

IN WITNESS WHEREOF the parties have affixed their common seal hereto in the presence of their officers duly authorized for that purpose.

			
	The corporate seal of Lions Petroleum, Inc.

	)

	 

	was hereunto affixed in the presence of:

	)

	 

	/s/ Gordon L. Wiltse

Authorized Signatory

	)

	c/s

	_____________________________________

Authorized Signatory

	)

	 

			
	The corporate seal of Providence Securities 

	)

	 

	Ltd. was hereunto affixed in the presence of:

	)

	 

	/s/ Kenneth Taves

Authorized Signatory

	)

	c/s

	________________________________________

Authorized Signatory

	)

	 

9

SCHEDULE "A" 

TO THE CONSULTING AGREEMENT DATED FOR REFERENCE JANUARY 31, 2007

BETWEEN LIONS PETROLEUM, INC. AND PROVIDENCE SECURITIES LTD.  

DUTIES

		
	TERM OF AGREEMENT 

	One year commencing JANUARY 31, 2007

	 
	 

	SERVICES AND DUTIES:

	 

	Title:

	International Finance and Trade Consultant

	 
	 

	Duties:

	1.

The Consultant shall, in co-operation with such other persons as the Company may specify:

a)

consult with and advise the Company with respect to international finance and trade matters; and

b)

introduce the Company to oil and gas companies and other persons who may assist the Company in its financing efforts and business affairs.

2.

Perform all the duties commonly associated with the position of international financial consultant. 

3.

Perform such other duties as the Consultant and the Company may from time to time mutually agreed upon in writing.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]