Document:

f8k011408ex10iv_bednational.htm

    

    

    

    

    

    EXHIBIT
      C

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    ESCROW
      AGREEMENT

    

    

    THIS
      ESCROW AGREEMENT (“Agreement”) is
      made as of January 14, 2008, by and between Paul Patrizio (“Patrizio”) and
      Dutchess Private Equities Fund, Ltd.  (“Dutchess” or “Secured
      Party”) and Robert D. Frawley,
      Esq., (“Escrow Agent”) (singly a “Party” and cumulatively the
“Parties”).

    

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      on June 26, 2007, Dutchess
      made a loan of one million, three hundred seventy-five thousand dollars ($1.375)
      to Bedminster National Corp. (“Bedminster” or the “Company”) pursuant to certain
      terms and conditions in consideration for which the Company issued to Dutchess
      a
      Promissory Note (“Note”).

    

    WHEREAS,
      the Company and its subsidiaries and Dutchess executed a Security Agreement
      (“Security Agreement”), dated June 26, 2007, providing Dutchess with a security
      interest in any and all Collateral of the Company.

    

    WHEREAS,
      on January 14, 2008, the Company and Dutchess executed an Amendment to the
      Promissory Note and Security Agreement (the Note, Security Agreement, and
      Amendment are collectively referred to as the “Agreements”).

    

    WHEREAS,
      on January 14, 2008, Patrizio and Dutchess executed a Share Pledge Agreement,
      which is incorporated herein,

    

    WHEREAS
      Patrizio is providing the Shares as security for the obligations and
      indebtedness of the Company.

    

    WHEREAS,
      in order to facilitate
      delivery of shares upon any default of the Agreements and to provide comfort
      to
      Dutchess that the shares will be so delivered, Patrizio has agreed to issue
      and
      place in escrow 5 million shares of Class A Common Stock and 2.0 million shares
      of Class B Common Stock (“Shares”), to be held and released in accordance with
      the terms of this Agreement; and

    

    WHEREAS,
      Patrizio and Dutchess have requested that the Escrow Agent hold the Shares
      in
      escrow pursuant to the terms of this Agreement, and the Escrow Agent has agreed
      to so act.

    

    NOW,
      THEREFORE, in consideration of the
      covenants and mutual promises contained herein and other good and valuable
      consideration, the receipt and legal sufficiency of which are hereby
      acknowledged and intending to be legally bound hereby, the Parties agree as
      follows:

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      1

    

    TERMS
      OF THE ESCROW

    

    1.1           
      The Parties hereby agree to have Robert D. Frawley, Esq. act as Escrow Agent
      whereby the Escrow Agent shall hold the Shares in accordance with the terms
      of
      this Agreement, and the Escrow Agent has accepted such appointment.

    

    1.2           
      Patrizio shall immediately deliver to the Escrow Agent certificates representing
      the Shares in his name, the stock powers with a signature guarantee, and a
      transfer letter to the transfer agent, attached as Exhibit A to the Share Pledge
      Agreement, authorizing transfer of the Shares and stock powers to Dutchess
      in
      the Event of Default.

    

    1.3           
      Upon the Escrow Agent’s receipt of the Shares, the Escrow Agent shall
      immediately notify Dutchess and Patrizio.

    

    1.4           
      The Escrow Agent shall then hold the Shares at his office pending receipt of
      a
      notice of default from Dutchess.

    

    1.5           
      Upon receipt by the Escrow Agent of a notice of default from Dutchess, the
      Escrow Agent shall promptly notify Patrizio and send all Shares to Dutchess.
      A
      copy of all correspondence with the Escrow Agent shall be provided by the Escrow
      Agent to the other parties hereto.

    

    1.6           
      Upon payment in full of all amounts outstanding under the Note, Dutchess shall
      notify the Escrow Agent of the same, with a copy to Patrizio and the Company.
      The Escrow Agent shall thereupon promptly deliver the Shares to
      Patrizio.

    

    1.7 It
      is
      understood and agreed that the Shares shall not be delivered to Patrizio unless
      and until the Note is paid in full.

    

    1.8           
      This Agreement may be altered or amended only with the consent of all of the
      Parties hereto. Should any of the Parties attempt to change
      this
      Agreement in a manner which, in the Escrow Agent’s discretion, shall be
      undesirable, the Escrow Agent may resign as Escrow Agent by notifying the Parties in
      writing.  In the case of the Escrow Agent’s resignation or removal
      pursuant to the foregoing, his only duty, until receipt of notice from the
      Parties that a successor escrow agent has been appointed, shall be to hold
      and
      preserve the Shares that are in his possession.  Upon receipt by the
      Escrow Agent of said notice from the Parties of the appointment of a successor
      escrow agent, the name of a successor escrow account and a direction to transfer
      the Shares the Escrow Agent shall promptly thereafter transfer all of the Shares
      held in escrow to said successor escrow agent.  Immediately after said
      transfer of Shares, the Escrow Agent shall furnish the Parties with proof of
      such transfer.  The Escrow Agent is authorized to disregard any
      notices, requests, instructions or demands received by it from the Parties
      after
      notice of resignation or removal shall have been given, unless the same shall
      be
      the aforementioned notice from the Parties to transfer the Shares to a successor
      escrow agent or to return same to the respective Parties.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    1.9           
      The Escrow Agent shall be reimbursed by the Parties for any reasonable
      expenses incurred in the event there is a conflict between the Parties and
      the
      Escrow Agent shall deem it necessary to retain counsel. The Escrow Agent shall
      not be liable for any action taken or omitted by him in good faith in accordance
      with the advice of the Escrow Agent’s counsel; and in no event shall the Escrow
      Agent be liable or responsible except for the Escrow Agent’s own gross
      negligence or willful misconduct. The Escrow Agent shall be obligated only
      for
      the performance of such duties as are specifically set forth herein and may
      rely
      and shall be protected in relying or refraining from acting on any instrument
      reasonably believed by the Escrow Agent to be genuine and to have been signed
      or
      presented by the proper Party or Parties.  The Escrow Agent shall not
      be personally liable for any act the Escrow Agent may do or omit to do hereunder
      as the Escrow Agent while acting in good faith, and any act done or omitted
      by
      the Escrow Agent pursuant to the advice of the Escrow Agent's attorney-at-law
      shall be conclusive evidence of such good faith.

    

    1.10           
      The Escrow Agent has made no representations or warranties to Patrizio or
      Dutchess in connection with this transaction. The Escrow Agent has no liability
      hereunder to any Party other than to hold the Shares received by Patrizio and
      to
      deliver them under the terms hereof. The Escrow Agent shall have no
      responsibility at any time to ascertain whether or not any security interest
      exists in the Shares or any part thereof or to file any financing statement
      under the Uniform Commercial Code with respect to the Shares or any part
      thereof. Each Party hereto agrees to indemnify and hold harmless the Escrow
      Agent from and with respect to any suits, claims, actions or liabilities arising
      in any way out of this transaction including the obligation to defend any legal
      action brought which in any way arises out of or is related to this Agreement
      or
      the investment being made by Dutchess. Dutchess acknowledges and represents
      that
      it is not being represented in a legal capacity by Robert D. Frawley, and has
      had the opportunity to consult with its own legal advisors prior to the signing
      of this Agreement. Patrizio acknowledges that the Escrow Agent is not rendering
      personal advice to him with respect to this proposed transaction. Patrizio
      and
      Dutchess consent to Robert D. Frawley acting as the Escrow Agent. Patrizio
      understands that Dutchess and Escrow Agent are relying explicitly on the
      foregoing provisions contained in this Section in entering into this
      Agreement.

    

    1.11           
      The Escrow Agent is hereby expressly authorized to disregard any and all
      warnings given by any of the Parties hereto or by any other person or
      corporation, excepting only orders or process of courts of law and is hereby
      expressly authorized to comply with and obey orders, judgments or decrees of
      any
      court. In case the Escrow Agent obeys or complies with any such order, judgment
      or decree, the Escrow Agent shall not be liable to any of the Parties hereto
      or
      to any other person, firm or corporation by reason of such decree being
      subsequently reversed, modified, annulled, set aside, vacated or found to have
      been entered without jurisdiction.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
 

    1.12           
      The Escrow Agent shall not be liable in any respect on account of the identity,
      authorities or rights of the Parties executing or delivering or purporting
      to
      execute or deliver the Agreement or any documents or papers deposited or called
      for hereunder.

    

    1.13           
      If the Escrow Agent reasonably requires other or further documents in connection
      with this Agreement, the necessary Parties hereto shall join in furnishing
      such
      documents.

    

    1.14           
      It is understood and agreed that should any dispute arise with respect to the
      delivery and/or ownership or right of possession of the documents or the Shares
      held by the Escrow Agent hereunder, the Escrow Agent is authorized and directed
      in the Escrow Agent's sole discretion (a) to retain in the Escrow Agent's
      possession without liability to anyone all or any part of said documents or
      the
      Shares until such disputes shall have been settled either by mutual written
      agreement of the Parties concerned or by a final order, decree or judgment
      of a
      court of competent jurisdiction after the time for appeal has expired and no
      appeal has been perfected, but the Escrow Agent shall be under no duty
      whatsoever to institute or defend any such proceedings or (b) to deliver the
      Shares and any other property and documents held by the Escrow Agent hereunder
      to a state or federal court having competent subject matter jurisdiction and
      located in the Commonwealth of Massachusetts in accordance with the applicable
      procedure therefor.

    

    ARTICLE
      2

    

    MISCELLANEOUS

    

    2.1           
      No waiver of any breach of any covenant or provision herein contained shall
      be
      deemed a waiver of any preceding or succeeding breach thereof, or of any other
      covenant or provision herein contained. No extension of time for performance
      of
      any obligation or act shall be deemed any extension of the time for performance
      of any other obligation or act.

    

    2.2           
      Notices.  Any
      notices or other communications required or permitted to be given under the
      terms of this Agreement must be in writing and will be deemed to have been
      delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when
      sent by facsimile or electronic mail (provided confirmation of transmission
      is
      mechanically or electronically generated and kept on file by the sending Party);
      or (iii) one (1) day after deposit with a nationally recognized overnight
      delivery service, in each case properly addressed to the Party to receive the
      same. The addresses, facsimile numbers, and email addresses for such
      communications shall be:

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    If
      to
      Patrizio to:

    

    Mr.
      Paul Patrizio

    Chief
      Executive Officer

    Bedminster
      National Corp.

    90
      Washington Valley Road

    Bedminster,
      NJ 07921

    Phone:   908-234-0300

    Fax:        908-234-9355

    Email: 
paul@apogeepartners.com

    

    If
      to
      Dutchess to:

    

    Dutchess
      Private Equities Fund,
      Ltd.

    50
      Commonwealth Avenue

    Suite
      2

    Boston,
      MA 02116

    Phone:  617-301-4700

    Fax:      
      617-249-0947

    Email:  tsmith@dpef.com

    

    If
      to
      Escrow Agent to:

    

    Mr.
      Robert D. Frawley,
      Esq.

    Law
      Offices of Robert D. Frawley

    64
      Maple
      Avenue

    Morristown,
      NJ 07960

    Phone:   
      973-451-1100

    Fax:        
      973-451-1115

    Email:  rdf@law-corp.com

    

    2.2           
      This Agreement shall be binding upon and shall inure to the benefit of the
      permitted successors and assigns of the Parties hereto.

    

    2.3           
      This Escrow Agreement is the final expression of, and contains the entire
      agreement between, the Parties with respect to the subject matter hereof and
      supersedes all prior understandings with respect thereto. This Escrow Agreement
      may not be modified, changed, supplemented or terminated, nor may any
      obligations hereunder be waived, except by written instrument signed by the
      Parties to be charged or by its agent duly authorized in writing or as otherwise
      expressly permitted herein.

    

    2.4.           
      Whenever required by the context of this Escrow Agreement, the singular shall
      include the plural and masculine shall include the feminine. This Escrow
      Agreement shall not be construed as if it had been prepared by one of the
      Parties, but rather as if all the Parties had prepared the same. Unless
      otherwise indicated, all references to Articles are to this Escrow
      Agreement.

    

    2.5           
      Patrizio and Dutchess acknowledge and confirm that they have had the opportunity
      to consult with their own legal advisors prior to the signing of this
      agreement.

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    2.6           
      The Parties hereto expressly agree that this Escrow Agreement shall be governed
      by, interpreted under, and construed and enforced in accordance of the laws
      of
      the Commonwealth of Massachusetts. Any action to enforce, arising out of, or
      relating in any way to, any provisions of this Escrow Agreement shall be
      submitted to arbitration in Boston, Massachusetts before a single arbitrator
      of
      the American Arbitration Association. The arbitrator shall be selected by
      application of the rules of the AAA, or by mutual agreement of the parties,
      except that such arbitrator shall be an attorney admitted to practice law in
      the
      Commonwealth of Massachusetts. No party to this agreement will challenge the
      jurisdiction or venue provisions as provided in this section. Nothing in this
      section shall limit the Secured Party’s right to obtain an injunction for a
      breach of this Agreement from a court of law.

    

    

    2.7           
      This Escrow Agreement may be executed in one or more counterparts, each of
      which
      shall be deemed an original but all of which shall constitute one and the same
      agreement. This Escrow Agreement, once executed by a Party, may be delivered
      to
      the other Parties hereto by telephone line facsimile transmission bearing the
      signature of the Party so delivering this Escrow Agreement and such copy shall
      be deemed and original.

    

    

    IN
      WITNESS WHEREOF, the Parties hereto
      have executed this Agreement as of the 14th day of January, 2008.

    

    PAUL
      PATRIZIO.                                                                

    

    

    By:                                                                                                                                 
      

                   
      Paul Patrizio, individually

    

    

    

    DUTCHESS
      PRIVATE EQUITIES FUND,
      LTD.

    

    

    By:                                                                  
       

    Douglas
      H. Leighton ,
      Director

    

    

    

    ROBERT
      D. FRAWLEY, ESCROW
      AGENT

    

    

    By:                                                                                                                                               
      

                                                         
            Robert D. Frawley, Esq.

     

     

     

    6Unassociated Document

     

    FIRST
      AMENDMENT

     

     

    TO
      LLC MEMBERSHIP INTEREST PURCHASE AGREEMENT

     

    This
      FIRST AMENDMENT TO LLC MEMBERSHIP INTEREST PURCHASE AGREEMENT (this
“Amendment”) is made and entered into as of the 11 day of January, 2008, by and
      among MEDICAL RESOURCES, LLC, a Florida limited liability
      company (the “Company”), WALTER
      JANKE and
      LALITA JANKE, Florida residents (together, the “Sellers”),
      and PRIMACARE
      CORPORATION, a Florida corporation (the “Buyer”).

     

     

    RECITALS:

     

    A.           Pursuant
      to that certain LLC Membership Interest Purchase Agreement, dated September
      6,
      2007, among the Company, the Sellers and the Buyer (the “Purchase Agreement”),
      the Sellers agreed to sell to the Buyer, and the Buyer agreed to purchase from
      the Sellers, all of the issued and outstanding membership interests in the
      Company.

     

    B.           Pursuant
      to Section 12(e) of the Purchase Agreement, the parties may amend the Purchase
      Agreement by a written instrument signed by the parties.

     

    C.           The
      Company, the Sellers and the Buyer desire hereby to amend the Purchase Agreement
      as hereinafter set forth.

     

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

     

    1.  Recitals.  The
      foregoing recitals are true and correct and are incorporated herein by
      reference.

     

    2.  Defined
      Terms.  All capitalized terms used herein and not
      expressly defined shall have the meanings given to them in the Purchase
      Agreement.

     

    3.  Escrow
      Agreement.

     

    (a)           The
      Parties hereby agree that Section 2(b)(i) is hereby amended and restated as
      follows:

     

    “(i)           At
      the Closing, Buyer shall deliver 28 million IWWI shares (as defined below)
      as an
      estimate of the Purchase Price to Escrow Agent pursuant to an Escrow Agreement
      by and among the Jankes, Buyer, MR, and Escrow Agent (the “Escrow Agreement”),
      in the form attached as Exhibit A to the First Amendment to this
      Agreement among the Parties, dated January 11, 2008.”

     

    (b)           The
      Parties hereby agree that Section 2(c) is hereby amended and restated as
      follows:

     

    “(c)           Determination
      of Purchase Price.  Within thirty (30) calendar days after the
      completion of the audited review of MR’s financial statements for the 24-month
      period from January 1, 2008 through December 31, 2009, Buyer and MR shall
      prepare, or cause to be prepared, and deliver to the Jankes a preliminary
      determination of the Purchase Price (the “Preliminary
      Determination”).  The Preliminary Determination shall set forth (A)
      the amount of the Purchase Price, (B) the amount of the Weighted Average Price
      and the amount of IWWI Shares corresponding to the Purchase Price, (C) the
      amount of any adjustment to the Purchase Price in accordance with Sections
      5(f)
      and 9(f) hereof, and (D) the amount of IWWI Shares corresponding to the Purchase
      Price less such adjustments.  After the Preliminary Determination is
      delivered to the Jankes, if the Jankes determine that the Preliminary
      Determination has been prepared in accordance with Section 2(a) or (b), then
      the
      Jankes shall inform Buyer by delivering written notice to Buyer, and Buyer
      and
      the Jankes shall cooperate in executing joint written instructions (the “Joint
      Instructions”) to the Escrow Agent directing the Escrow Agent to release the
      IWWI Shares in accordance with the Preliminary
      Determination.  Notwithstanding anything set forth herein or in the
      Escrow Agreement to the contrary, such Joint Instructions shall not instruct
      any
      release of IWWI Shares to the Jankes until after March 31, 2012 (the “Escrow
      Termination Date”); provided, that such Joint Instruction may instruct
      release of IWWI Shares to Buyer prior to the Escrow Termination
      Date.  In addition, if the Escrow Agent shall not have received Joint
      Instructions by the Escrow Termination Date, the Escrow Agent shall file an
      action of interpleader in the appropriate court of competent jurisdiction and
      deposit the IWWI Shares with such court for determination or
      disposition.”

     

    4.  Transfer
      of Liabilities.  The Parties hereby agree that a new
      Section 5(f) is hereby amended to the Purchase Agreement, as
      follows:

     

    “(f)           Payment
      of Liabilities Incurred Prior to August 1, 2007.  Should MR make
      payment on any liabilities incurred prior to August 1, 2007 (“Prior Liability”),
      and such Prior Liability was not satisfied prior to Closing, then Buyer can
      reduce the Purchase Price by the amount of payment made by MR toward the Prior
      Liability and Buyer, upon delivery of Joint Instructions to the Escrow Agent
      directing the Escrow Agent to release the IWWI Shares to Buyer, may remove
      IWWI
      Shares held in Escrow and equal to the amount of payment made on such Prior
      Liability .  Seller acknowledges that payment by MR for any Prior
      Liability gives Buyer, in its sole discretion, the right to remove IWWI Shares
      equal to such payment, and Seller shall not unreasonably withhold execution
      and
      delivery of Joint Instructions to Escrow Agent regarding release of IWWI shares
      to Buyer.”

     

    5.  Indemnification
      Cap.  The Parties hereby agree that Section 9(f) of the
      Purchase Agreement is hereby amended to add:

     

    “Notwithstanding
      anything to the contrary in this Agreement, except for claims or actions based
      on fraud of the Jankes to the Buyer, the total aggregate liability of the Jankes
      under this Article 9 shall not exceed the Purchase Price paid and held
      under the Escrow Agreement.”

     

    6.  Schedules.  For
      all provisions herein and in the Purchase Agreement that reference any
      Schedules, such Schedules shall be those attached to this Amendment hereof
      and
      identified as Schedule Attachment .

     

    7.  Miscellaneous.

     

    a.  In
      the
      event any provision of this Amendment is found to be unenforceable, void,
      invalid or unreasonable in scope, such provision shall be modified to the extent
      necessary to make it enforceable, and as so modified, this Amendment shall
      remain in full force and effect.

     

    b.  This
      Amendment may be executed in counterparts, each of which shall be deemed an
      original of this Amendment and all of which, when taken together, shall be
      deemed to constitute one and the same Amendment.

     

    c.  The
      rights and obligations of the parties under this Amendment shall inure to the
      benefit of, and shall be binding upon, their respective heirs, executors,
      administrators, successors, assigns, subsidiaries, affiliates, directors,
      officers, employees, representatives and agents, as applicable.

     

    d.  To
      the
      extent any provisions contained herein conflict with the Purchase Agreement
      or
      any other agreements between the Parties, oral or otherwise, the provisions
      contained herein shall supersede such conflicting provisions contained in the
      Purchase Agreement or other agreements.  Except as modified herein,
      the Parties hereby represent and warrant that the Purchase Agreement remains
      in
      full force and effect and is hereby reaffirmed and ratified by each
      Party.

     

    e.  This
      Amendment shall be construed under, and governed by, the internal laws of the
      State of Florida.

     

    [Remainder
      of page intentionally left blank]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Amendment as of the day
      and year first above written.

     

    COMPANY:

    

    MEDICAL
      RESOURCES, LLC

    

    

    By:                  /s/
      Lalita Janke

    Name:              Lalita
      Janke

    Title:              Chief
      Executive Officer

    

    

    SELLERS:

    

    

    /s/
      Lalita
      Janke                                                           

    Lalita
      Janke

    

    

    /s/
      Walter
      Janke                                                           

    Walter
      Janke

    

    

    BUYER:

    

    PRIMACARE
      CORPORATION

    

    

    By:                  /s/
      Ashvin Mascarenhas

    Name:              Ashvin
      Mascarenhas

    Title:              Chief
      Executive Officer

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