Document:

Exhibit 4(c)

 

ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (this “Agreement”), dated as of December 12, 2013 is made by and among Hawaiian Electric Industries, Inc., a Hawaii corporation (the “Company”), the Shareholder Services Division of the Company in its capacity as “Administrator” under the Hawaiian Electric Industries, Inc. Dividend Reinvestment and Stock Purchase Plan, as in effect from time to time (the “Plan”), and Central Pacific Bank, a corporation having trust powers, in its capacity as escrow agent (the “Escrow Agent”). As used in this Agreement, the term “Administrator” shall mean the Shareholder Services Division of the Company or any other person or entity designated by the Company from time to time.

 

WHEREAS, the Company wishes to engage the Escrow Agent for the purpose of receiving certain funds designated for the purchase of common stock of the Company pursuant to the Plan, and for the purpose of depositing and holding such funds in an escrow account until it receives written instructions from the Administrator to release and distribute the funds in accordance with the written instructions;

 

WHEREAS, the Escrow Agent has agreed to act as escrow agent and to receive, hold and distribute the funds in accordance with and subject to the terms and conditions of this Agreement;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Creation of Escrow Account; Compensation. The Company and the Administrator hereby create with the Escrow Agent an interest bearing escrow account (the “Escrow Account”), to which certain dividends declared and paid by the Company, initial cash investments and optional cash investments will be promptly forwarded, deposited and held, pending investment in common stock of the Company pursuant to the Plan (or will be returned to investors in the manner instructed by the Administrator if common stock is not purchased within prescribed periods). The proceeds held in the Escrow Account are for the benefit of participants in the Plan in accordance with this Agreement. Any interest or other earnings on principal amounts shall belong to the Company. The Company shall pay to the Escrow Agent reasonable compensation for all services rendered by Escrow Agent, and reasonable expenses incurred by Escrow Agent pursuant to this Agreement, as agreed to by the Company and the Escrow Agent from time to time. Initially, the Company shall pay monthly to the Escrow Agent a fee of $250.00 with the understanding that disbursements for the investment in common stock of the Company shall be generally limited to the average of two per month. The monthly escrow fee is fixed for two years.  Any changes to the monthly escrow fee after such time are subject to mutual agreement by the parties.

 

2. General Duties and Powers of Escrow Agent. The Escrow Agent shall keep accurate and detailed records of the receipts, disbursements and other transactions affecting the Escrow Account, provide monthly account statements for such account summarizing the transactions, shall maintain such account statement records for a period of not less than two (2) years, and shall furnish the Company with such further information as may be reasonably requested by the Company (or Administrator) from time to time. Upon receiving written instructions from the Administrator, the Escrow Agent shall make disbursements from the Escrow Account at such

 

 

times, to such persons (including the Company, the broker-dealer appointed by the Company and Plan participants), and in such amounts, as the Administrator shall direct. The Escrow Agent shall not be liable for any loss sustained by reason of any act or omission of the Escrow Agent pursuant to this Agreement in the absence of gross negligence, willful misconduct or material breach of this Agreement on the part of the Escrow Agent. The Company agrees to indemnify and hold harmless the Escrow Agent against any and all claims, causes of action, liabilities, lawsuits, demands and damages, including without limitation, any and all court costs and reasonable attorneys’ fees, in any way related to or arising out of or in connection with this Agreement or any act or omission pursuant hereto, except to the extent caused by the gross negligence, willful misconduct, or material breach of this Agreement on the part of the Escrow Agent. The Escrow Agent shall have and shall discharge only the duties specifically set forth in this Agreement, shall not have any implied duties, and shall not be deemed to be a trustee or fiduciary. The obligations of the Company under this paragraph shall survive the termination of this Agreement.

 

3. Resignation and Removal; Successor. The Escrow Agent may resign its duties by delivering its written resignation to the Administrator. Such resignation shall be effective upon the earlier of the following dates: (a) the appointment of a successor escrow agent, as provided below; or (b) ninety (90) days after delivery of the written resignation to the Administrator. The Escrow Agent may be removed by the Administrator at any time, with or without cause, upon not less than thirty (30) days written notice to the Escrow Agent. The appointment of a successor escrow agent shall be accomplished by and shall take effect upon the delivery to the resigning or removed Escrow Agent, as the case may be, of (i) a written instrument appointing the successor escrow agent, executed by the Administrator and consented to by the Company, and (ii) an acceptance in writing, executed by the appointed successor escrow agent. Upon the appointment of the successor escrow agent, the resigning or removed Escrow Agent shall transfer and deliver all funds in the Escrow Account and any Escrow Account information reasonably requested to the successor escrow agent; provided, however, that if upon the effective date of the Escrow Agent’s resignation a successor escrow agent has not been appointed, the Escrow Agent may transfer and deliver all funds in the Escrow Account and any Escrow Account information reasonably requested to the Administrator.

 

4. Termination. This Agreement may be terminated by the Administrator and the Company at any time by written notice given to the Escrow Agent by the Administrator and the Company with instructions as to the disposition of any funds or other property then remaining in the Escrow Account.

 

5. Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered or if sent by registered mail or certified mail, postage prepaid, or by facsimile, if to the Escrow Agent, to Central Pacific Bank, 1030 Makolu Street, Pearl City, Hawaii 96782, Facsimile: (808) 544-5674, Attention: Leeward Commercial Banking or, if to the Company or the Administrator, to Hawaiian Electric Industries, Inc., P.O. Box 730, Honolulu, Hawaii 96808-0730, Facsimile: (808) 532-5868, Attention: Shareholder Services. Any such notice shall be deemed to have been given as of the date personally delivered or transmitted by facsimile, or five (5) business days after the date mailed. Any party hereto may change its address for purposes of this Section by written notice given in the manner provided above.

 

 

6. Confidentiality and Information Security.

 

(a)                                 Escrow Agent agrees to keep, maintain, secure from others and not to disclose or cause or permit to be disclosed, including but not limited to disclosure to other departments of Escrow Agent or to other companies for solicitation or other commercial purposes, any information in any form concerning the identity of participants, their ownership interests in the Company or the Plan or any financial, account or other personally identifiable information concerning participants (any and all such information is herein referred to as “Participant Information”) that may come into the possession of Escrow Agent by reason of this Agreement. Participant Information shall be accessed and used only in connection with Escrow Agent’s performance of its duties set forth in this Agreement and for no other purpose.  Escrow Agent shall not share, disclose, provide or permit access to Participant Information to, or allow Participant Information to be shared, disclosed, provided or accessed by, any of its agents, representatives, affiliates, sub-contractors, employees, shareholders, officers or directors (all of the foregoing collectively referred to as “Representatives”), except for those Representatives who are assisting Escrow Agent in performing its duties set forth in this Agreement and to such Representatives solely on an as needed basis.  Escrow Agent shall require its Representatives to comply with the restrictions of this Agreement with respect to Participant Information and shall require any third-party Representative to execute a confidentiality agreement containing restrictions no less stringent than those contained in this Section 6 prior to any Participant Information being shared, disclosed, or provided to any third party Representative or any third party Representative being permitted to access Participant Information.  Escrow Agent agrees that it will be responsible for any breach of this Section 6 by its Representatives.  Upon the termination of this Agreement or appointment of a successor escrow agent, the Escrow Agent agrees to transfer and deliver all Participant Information to the Administrator or successor escrow agent in accordance with the Administrator’s instructions and to destroy any reproductions or copies made thereof, regardless of the medium in which such copies or reproductions are maintained, provided, however, that Escrow Agent may retain certain copies of documents to satisfy regulatory requirements upon which the confidentiality obligations of this Agreement shall continue to apply.  Escrow Agent may disclose Participant Information as may be required by law or court order, provided however that Escrow Agent shall provide Company and Administrator reasonable notice of such disclosure and the opportunity to review the disclosure before it is made and to seek any appropriate protective order and/or take any other action.

 

(b)                                 Escrow Agent agrees that it has (or shall implement prior to Company or Administrator sharing, disclosing or providing Participant Information to Escrow Agent or permitting Escrow Agent to access Participant Information) and shall maintain throughout the term of this Agreement appropriate measures consistent with industry standards designed to ensure the security and confidentiality of Participant Information, to protect against any anticipated threats or hazards to the security or integrity of Participant Information, and to protect against unauthorized access to or use of Participant Information that could result in substantial harm or inconvenience to Participants, the Company or the Administrator.  Company and Administrator shall annually receive written confirmation acceptable to Company that Escrow Agent has satisfied its obligations under this Section 6(b).

 

(c)                                  Escrow Agent agrees to notify the Administrator immediately in writing in the event a system or area containing Participant Information is compromised or unauthorized

 

 

access is detected.  Such notice may be delayed where a law enforcement agency has determined that notification will interfere with a criminal investigation.

 

(d)                                 The obligations imposed on Escrow Agent by Sections 6(a) and 6(c) of this Agreement shall survive and continue beyond the term, termination, cancellation or expiration of this Agreement.

 

7. Miscellaneous. This Agreement is made and shall be construed and enforced in accordance with the laws of the State of Hawaii. This Agreement is not assignable by the Escrow Agent. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof, except for any other account agreements relating to or connected with the Escrow Account and rules governing such agreements. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. No failure or delay by either party in exercising any right, power or remedy under this Agreement shall operate as a waiver of any such right, power or remedy. This Agreement may be executed in any number of counterparts, each of which shall be deemed as original, but all of which together shall constitute one and the same instrument.

 

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

 

 

	
Hawaiian   Electric Industries, Inc.
    	
Central Pacific Bank
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
\s\ JAMES A.   AJELLO
    	
 
    	
By: 
    	
\s\ JEROME TSUDA
    
	
Name: 
    	
James A. Ajello
    	
 
    	
Name: 
    	
Jerome Tsuda
    
	
Title: 
    	
Executive Vice President & Chief   Financial Officer
    	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
By: 
    	
\s\ GREG C.   HAZELTON
    	
 
    	
 
    
	
Name: 
    	
Greg C. Hazelton
    	
 
    	
 
    
	
Title: 
    	
Vice President —   Finance, Treasurer & Controller
    	
 
    	
 
    

 

	
Shareholder Services   Division of Hawaiian Electric Industries, Inc. as Administrator of the   HEI Dividend Reinvestment and Stock Purchase Plan (HEI/DRIP)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
\s\ LAURIE   LOO-OGATA
    	
 
    	
 
    
	
Name: 
    	
Laurie Loo-Ogata
    	
 
    	
 
    
	
Title: 
    	
Director,   Shareholder ServicesExhibit 10.1 Debt Settlement Agreement

EXHIBIT 10.1

DEBT SETTLEMENT AGREEMENT

This Debt Settlement Agreement (the “Agreement”) is made and entered into as of September 23, 2014, by and between SmartData Corporation, a Nevada corporation (“SmartData”), and Petersen Incorporated, a Utah corporation (“Petersen”), with respect to the following.

RECITALS

A.

SmartData is the owner and holder of U.S. Patent No. 8,105,401 (“Parallel Path, Downdraft Gasifier Apparatus and Method”), and U.S. Patent No. 8,518,133 (“Parallel Path, Downdraft Gasifier Apparatus and Method”) (the “Patents”).

B.

Pursuant to other agreements, SmartData has assumed and agreed to pay certain indebtedness owed to Petersen, pertaining to the engineering and construction services provided by Petersen in connection with a prototype of the equipment that is described in the Patents, i.e., a 32 inch Downdraft Gasifier ("Gasifier").

C.

Petersen is owed approximately $156,900.08 (the “Debt”) for the engineering and construction services rendered in connection with the Gasifier.

D.

SmartData and Petersen agree to settle and resolve the Debt in full upon the following terms and conditions.

TERMS AND CONDITIONS

1.

Cash Payment.   Promptly after execution of this Agreement, SmartData shall pay or cause to be paid to Petersen the sum of $56,900.08 (the “Payment”).

2.

Stock.   Promptly after execution of this Agreement, SmartData shall cause to be issued to Petersen 40,000 shares of SmartData Corporation $0.001 par value common stock (the “Stock”).

3.

Release and Satisfaction.   Upon receipt of the Payment and the Stock, Petersen acknowledges and agrees that the Debt (including all interest, costs and attorney’s fees associated therewith) shall be deemed satisfied and paid in full.  Petersen agrees that, subject to receipt of the Payment and Stock, all claims of Petersen against SmartData and its predecessors, including SMS Management Services, LLC, shall be deemed released. 

4.

Representations and Covenants of SmartData.   SmartData represents and covenants to Petersen as follows:

A.

SmartData is the owner of the Patents.

B.

The issuance of the Stock has been duly authorized by all required corporate action and, when issued, will be fully paid and nonassessable.

C.

If at any time SmartData decides, in its sole discretion, to register securities with the Securities and Exchange Commission (the “Commission”), SmartData agrees that it shall cause the Stock to be registered along with whatever other securities it chooses to register on Form S-1, at no further cost to Petersen.

D.

SmartData shall indemnify Petersen from, and defend and hold Petersen harmless from and against, any losses suffered, incurred or sustained by Petersen or to which Petersen becomes subject, resulting from, arising out of or relating to any claim: (i) that the Gasifier does infringe upon any intellectual property rights of a third party; and (ii) of loss or damage resulting from the Gasifier and the use thereof.

5.

Acknowledgments and Representations of Petersen.   Petersen represents and acknowledges as follows:

A.

That Petersen is the sole holder of the Debt, and has full power and authority to enter into and perform the terms of this Agreement.  Petersen agrees and covenants not to institute or cause to be instituted any suit or other form of action or proceeding of any kind or nature against SmartData, or its predecessors, assigns, successors, officers, directors, agents, or affiliates to collect or attempt to collect the Debt.

B.

THAT EXCEPT FOR THE EXPRESS WARRANTY PROVISIONS CONTAINED IN THIS AGREEMENT, THE GASIFIER IS PROVIDED “AS IS” AND TO THE FULLEST EXTENT PERMITTED BY LAW, PETERSEN EXCLUDES ALL OTHER EXPRESS AND IMPLIED TERMS, CONDITIONS, WARRANTIES OR REPRESENTATIONS REGARING THE GASIFIER ARISING BY LAW OR OTHERWISE, INCLUDING WITHOUT LIMITATION ANY IMPLIED TERMS OF MERCHANTABILITY, SATISFACTORY QUALTIY, AND FITNESS FOR A PARTICULAR PURPOSE.

C.

That:

(a)

the Stock is “restricted securities” as that term is defined in Rule 144 promulgated by the Commission under the Securities Act of 1933, as amended (the “Securities Act”), the resale of the Stock is restricted by federal and state securities laws and, accordingly, the Stock must be held indefinitely unless its resale is subsequently registered under the Securities Act or an exemption from such registration is available for its resale;

(b)

Other than as contemplated herein, Petersen acknowledges that SmartData has not undertaken, and will have no obligation, to register any shares of the Stock under the Securities Act;

(c)

By completing the Questionnaire, attached hereto as Exhibit “A,” Petersen is representing and warranting that it is an accredited investor as the term is defined in Rule 501 of Regulation D under the Securities Act;

(d)

The decision to execute this Agreement and acquire the Stock agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of SmartData;

(e)

Petersen and Petersen’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from SmartData in connection with the issuance of the Stock hereunder, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information about SmartData;

(f)

The books and records of SmartData were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by Petersen during reasonable business hours at its principal place of business, and all documents, records and books in connection with the distribution of the Stock hereunder have been made available for inspection by Petersen, Petersen’s lawyer and/or advisor(s);

(g)

SmartData is entitled to rely on the representations and warranties of Petersen contained in this Agreement and the Questionnaire;

(h)

Petersen will indemnify and hold harmless SmartData and, where applicable, its directors, officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of Petersen contained in this Agreement, the Questionnaire or in any document furnished by Petersen to SmartData in connection herewith being untrue in any material respect or any breach or failure by Petersen to comply with any covenant or agreement made by Petersen to SmartData in connection therewith;

(i)

Petersen has been advised to consult Petersen’s own legal, tax and other advisors with respect to the merits and risks of an investment in the Stock and with respect to applicable resale restrictions, and it is solely responsible (and SmartData is not in any way responsible) for compliance with: (i) any applicable laws of the jurisdiction in which Petersen is resident in connection with the distribution of the Stock hereunder, and (ii) applicable resale restrictions; 

(j)

Neither the Commission nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Stock;

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(k)

No documents in connection with the sale of the Stock hereunder have been reviewed by the Commission or any state securities administrators; 

(l)

Petersen is aware that an investment in SmartData is speculative and involves certain risks, including the possible loss of the entire investment;

(m)

Petersen (i) has adequate net worth and means of providing for its current financial needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Stock for an indefinite period of time;

(n)

Petersen (i) is able to fend for itself; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Stock; and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

(o)

Petersen is not an underwriter of, or dealer in, the common shares of SmartData, nor is Petersen participating, pursuant to a contractual agreement or otherwise, in the distribution of the Stock;

(p)

Petersen is not aware of any advertisement of any of the Stock and is not acquiring the Stock as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising; and

(q)

Petersen acknowledges and agrees that SmartData shall not consider the Petersen’s subscription for acceptance unless the undersigned provides to SmartData, along with an executed copy of this Agreement: (i) a fully completed and executed Questionnaire in the form attached hereto as Exhibit A, and (ii) such other supporting documentation that SmartData or its legal counsel may request to establish Petersen’s qualification as a qualified investor.

D.

The Gasifier prototype is located on the premises of Petersen.  Upon receipt of the Payment and Stock, Petersen agrees that SmartData shall be given access to and permitted to remove the Gasifier from Petersen’s premises.

E.

Subsequent to receipt of the Payment and Stock, Petersen agrees to provide up to twenty hours of personnel time to assist SmartData in the initial start-up, calibration, and programming of the Gasifier, on the premises of a testing facility identified by SmartData.

[SIGNATURE PAGE FOLLOWS]

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SMARTDATA CORPORATION, a Nevada

corporation

By/s/ S. Matthew Schultz

S. Matthew Schultz, Its CEO

PETERSEN INCORPORATED, a Utah corporation

By/s/ Mark Jenkins

Mark Jenkins

Its CEO

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