Document:

ex10x1.htm

Exhibit 10.1

 

 

ESCROW AGREEMENT

This Agreement, dated November 17, 2011 by and between Full Throttle Indoor Kart Racing, Inc., (hereinafter referred to as "Issuer") and Land Title Guarantee Company (hereinafter referred to as the "Depository"). The Depository is located at 5975 Greenwood Plaza Blvd., Suite 125, Greenwood Village, CO 80111.

The Issuer warrants that it has applied for authority from the Commissioner of Securities of the State of Colorado to sell certain securities and the Issuer intends that if it is unable to sell securities in the sum of $1,900,000 by XXXX XX, 2011, (the "Closing Date") the offering shall be terminated and the proceeds paid in by each of the subscribers shall be returned to them pursuant to this Agreement.

The Depository is willing to act as the depository hereunder.

In consideration of the mutual covenants and of other good and valuable consideration the parties agree as follows:

1.  The Issuer shall deposit all monies received from the sale of securities in a special impound account in the depository to be designated the " Land Title as Escrow Agent for Full Throttle Indoor Kart Racing Inc." (the "Impound Account"). The Issuer and its agents shall cause all checks received by it for the payment of securities to be made payable to the Depository Impound Account. The Issuer agrees to include with the deposits made in the Impound Account a copy of each subscription agreement which shall include the name, address and social security or other tax identification number of each Subscriber and the date and amount of each subscription. All funds so deposited shall be held in escrow by the Depository and shall not be subject to judgment or creditors' claims against the Issuer unless and until released to said Issuer in accordance with the Agreement.

2.  Unless the Commissioner directs to the contrary the funds deposited in the Impound Account may be invested as directed by the Issuer in bank certificates of deposit, United States government obligations or placed in an interest bearing savings account.

3.  The Depository shall return deposits in the form of checks that fail to clear the bank, upon which they are drawn, together with the related subscription agreement, to the Subscriber. A copy thereof shall be sent to the company.

4.  If, on or before the Closing Date, the funds deposited in the Impound Account amount to or exceed $1,900,000 (The Minimum Subscription) the Depository shall pay such funds and all other funds deposited thereafter to the Issuer.

 

5.  Upon receipt by the Depository of written notification signed by the Issuer advising that it was unable to sell the Minimum Subscription within the specific offering period the funds deposited in the Impound Account shall be returned by the Depository to the Subscribers according to the amount each contributed.  Depository costs and fees will be paid by the Issuer.

 

 

  

  

  

6.  This Impound Agreement shall terminate upon the disbursement of funds pursuant to Paragraphs 4 or 5 provided, however, the Issuer may abandon the public offering. Upon the receipt of a letter from the Issuer stating that the offering has been abandoned, the Depository is authorized to return the monies received hereunder to the subscribers according to the amount each subscriber contributed without interest.  Depository costs and fees shall be paid by the Issuer.  This Agreement shall terminate upon said distribution.

7.  The sole duty of the Depository other than as herein specified shall be to establish and maintain the Impound Account and receive and hold the funds deposited by the Company pursuant to all applicable securities laws and regulations.

8.  The Issuer acknowledges that the Depository is performing the limited function of Depository and that this fact in no way means the Depository has passed in any way upon the merits or qualifications of or has recommended or given approval to any person, security or transaction.

9.  The terms and conditions of this Agreement shall be binding on the heirs, executors and assigns, creditors or transferees, or successors in interest, whether by operation of law or otherwise, of the parties hereto. If for any reason the Depository named herein should be unable or unwilling to continue as such depository then the Company may substitute, with the consent of the Commissioner, another person to serve as Depository.

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

 

	 
Full Throttle Indoor Kart Racing, Inc.

 

 

	 	 	Land Guarantee Title Company	 
	
/s/ Richard Herrera,

	 	 	
/s/ Paul Holloway

	 
	
Richard Herrera, President

	 	 	
Paul Holloway

	 
	
Title 

	 	 	
Long Term Escrow Officer.8226561 13.COMBINATION SETTLEMENT AGREEMENT, SECURITY

AGREEMENT,
AND ASSIGNMENT OF PROCEEDS

          THIS COMBINATION SETTLEMENT AGREEMENT, SECURITY AGREEMENT,
AND ASSIGNMENT OF PROCEEDS (hereinafter, "this Agreement"), made and entered into
this 6th day of June, 2011, is by and between Grant Hartford Corporation, a corporation
organized and existing under the laws of the State of Montana, whose mailing address is 2620
Connery Way, Missoula, Montana 59808 (hereinafter, "GHC"), and CDM Constructors, Inc., a
corporation organized and existing under the laws of the Commonwealth of Massachusetts and
authorized to do business in the state of Montana, whose mailing address is 50 West 14th Street,
2nd Floor, Helena, Montana 59601, (hereinafter, "CDM"). GHC and CDM may be referred to
collectively herein as the "Parties")

RECITALS:

A.   GHC is a gold exploration and development company that holds certain mining rights
and assets, including, but not limited to, patented mining claims and leasehold mining rights,
located in the Garnet Mining District, Granite County, Montana. GHC has produced and
recovered certain valuable minerals that are currently unrefined I unprocessed and remain as ore
stockpiled on the following described real property (the "Minerals" which term includes, but is
not limited to, gold and other valuable minerals):

Description of Parcel Containing the Minerals:

A parcel of land in Section 3, Township 12 North, Range 14 West, P.M.M., consisting of
portions of the following Mineral Surveys: Free Coin MS 4652, Lead King MS 4811, Bull's Eye
MS 4651, Bull's Eye Fraction MS 9405, Grant and Hartford MS 7327, White Cloud MS 5631,
Red Cloud MS 5451; the following unpatented claims: GHC 50 and GHC 52; and more
particularly described as follows:

Beginning at a point that bears N 81 ° 06' 35" W, 1971.39 feet from the Section Corner common
t;o Section 2,3, 10 and 11, Township 12 North, Range 14 West, P.M.M.; then N 61° 10' 02" W,
811.00 feet to a point; then N 43° 13' 59" E, 1954.35 feet to a point; S 67° 05' 56" E, 361.48
feet to a point; then S 29 51' 33" W, 1930.62 feet to the Point of Beginning.

The parcel contains 25.57 Acres.

          B.   GHC intends to enter into an agreement with the Golden Sunlight mine, located
near Whitehall, Montana, or other similar facility, for refining and processing of the Minerals.

1

          C.   CDM is an engineering and consulting firm. CDM and ORC entered into that
certain Agreement between Owner and Design/Builder for Design/Build Project dated April 20,
2009 (the "Contract") for, among other things, the provision of certain engineer services from
CDMto GRC.

          D.   GHC is in default under the terms and conditions of the Contract for, among other
things, failing to make payments to CDM for its services. As of May 24, 2011, there is due and
owing CDM from GHC the sum of $674,370.94, with interest thereon at the Contract rate of
12 per annum until paid in full (the "Debt).

          E.   The Parties have agreed to an orderly plan for the payment of the Debt and the
continued performance under the Contract, as provided herein.

          NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants
herein contained and other good and valuable considerations, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereby agree as follows:

          1.   RECITALS AND RATIFICATION.  GHC acknowledges and agrees that the
foregoing recitals are true and correct, and by this reference, the recitals shall become part of
GRC's warranties, representations, covenants, and conditions of this Agreement. GRC further
warrants, represents, acknowledges, and ratifies that it owes the Debt and that its obligation for
the payment of the Debt is not subject to any claim or defense.

          2.   MILLINGIREFINING OF MINE MINERALS.  GHC shall, as soon as is
practicable after execution of this Agreement, transport (or cause to be transported) the Minerals
to the Golden Sunlight mine (or other refining or processing facility) for refining.

          3.   ASSIGNMENT OF REVENUE AND PROCEEDS.  GHC hereby absolutely
and unconditionally bargains, sells, transfers, assigns, warrants and conveys to CDM sixty
percent (60) of the net revenue and proceeds due GHC from Golden Sunlight, from any other
refining or processing facility, or from any third-party (the "Payor") from GHC's sale or transfer
of the Minerals (the "Assignment of Proceeds"), after deduction for loading costs, trucking costs,
unloading costs and milling/refining costs, arising from the refining or processing of the
Minerals as provided in Section A above. In the event GHC receives such payments "in kind",
that is, in the form of refined bullion, the Assignment of Proceeds shall include such in kind
payments. CDM shall have all rights and powers of the owner of the Assignment of Proceeds,
including, but not limited to, the right to receive, collect, and demand the same directly from the
Payor. The Parties shall execute irrevocable pay order instructions necessary to effectuate the
intent of this section, including the right to receive directly from the Payor regular statements as
to the amount of Minerals processed and the amount of revenues due GHC and CDM as
provided for herein. The Assignment of Proceeds shall continue until the concurrent happening

2

of each of the following: (a) the Debt is paid in full; (b) no default exists under the Contract; and
(c) no default exists under this Agreement.

          4.   GRANT OF SECURITY INTEREST.  To secure payment of the Debt and
performance of the Contract and this Agreement, GHC hereby grants to CDM a security interest
in the Minerals and all proceeds, products, and accounts from or relating to said Minerals
(collectively the "Collateral"), whether now owned or hereafter acquired. CDM is hereby
authorized to file, in any jurisdiction, a financing statement or statements covering the Collateral,
and at the reasonable request of CDM, GHC will join CDM in executing one or more such
financing statements pursuant to the applicable Uniform Commercial Code in form satisfactory
to CDM.

GHC hereby appoints CDM as its true and lawful attorney in fact, irrevocably, with full power of
substitution to do the following: (a) to demand, collect, receive, receipt for, sue and recover all
sums of money other property which may now or hereafter become due, owing or payable from
the Collateral; (b) to execute, sign and endorse any and all claims, instruments, receipts, checks,
drafts or warrants issued in payment for the Collateral; (c) to settle or compromise any and all
claims arising under the Collateral, and, in the place and stead of GHC, to execute and deliver its
release and settlement for the claim; and (d) to file any claim or claims or to take any action or
institute or take part in any proceedings, either in its own name or in the name of GHC, or
otherwise, which in the sole discretion of CDM may deem necessary or advisable.

          5.   COVENANTS, REPRESENTATIONS AND WARRANTIES OF GHC.  GHC
makes the following covenants, representations and warranties as a material part of this
Agreement:

	
 
	
 
	 

	
 

	
(A)
	
All representations heretofore made by GHC to CDM are true and correct,
to the best of GHC's knowledge;

	
 
	
 
	
 

	
 
	
(B)
	
GHC is a corporation organized and validly existing under the laws of the
State of Montana and is good standing in respect of the filing of annual
returns under the laws of the State of Montana; its name on the public
records of the State of Montana is "Grant Hartford Corporation"

	
 
	
 
	
 

	
 
	
(C)
	
GHC has the power, capacity and authority to enter into and perform this
Agreement and all transactions contemplated herein and all corporate and
other actions required to authorize it to enter into and perform this
Agreement have been properly taken;

	
 
	
 
	
 

	
 
	
(D)
	
GHC has all necessary corporate power to own the assets subject to the
terms of this Agreement and to carry on its business as now conducted by
it; 

3

	
 
	
 
	 

	
 

	
(E)
	
GHC, at all times material to this Agreement shall have good and
marketable title to the Minerals and Collateral assets subject to the terms
of this Agreement;

	
 
	
 
	
 

	
 
	
(F)
	
This Agreement and any other agreement, certificate, document or
instrument executed by GHC and delivered pursuant hereto have been or
will have been duly executed and delivered and all such agreements are or
will be valid, binding and enforceable obligations of GHC in accordance
with their respective terms;

	
 
	
 
	
 

	
 
	
(G)
	
The execution, delivery and performance of this Agreement will not result
in any violation of or be in conflict with or constitute a default under any
other document or instrument to which GHC is a party.

	
 
	
 
	
 

	
 
	
(H)
	
GHC is unaware of any material facts or circumstances which have not
been disclosed in this Agreement, which should be disclosed to CDM, in
order to prevent the representations in this Section 5 from being
misleading. 

          6.   COVENANTS, REPRESENTATIONS AND WARRANTIES OF CDM.
CDM makes the following covenants, representations and warranties as a material part of this
Agreement:

	
 
	
 
	 

	
 

	
(A)
	
All representations heretofore made by CDM to GHC are true and correct,
to the best of CDM's knowledge;

	
 
	
 
	
 

	
 
	
(B)
	
CDM is a corporation organized and validly existing and in good standing
in respect of the filing of annual returns under the laws of its jurisdiction
of incorporation;

	
 
	
 
	
 

	
 
	
(C)
	
CDM has the power, capacity and authority to enter into and perform this
Agreement and all transactions contemplated herein and all corporate and
other actions required to authorize it to enter into and perform this
Agreement have been properly taken;

	
 
	
 
	
 

	
 
	
(D)
	
This Agreement and any other agreement, certificate, document or
instrument executed by CDM and delivered pursuant hereto have been or
will have been duly executed and delivered and all such agreements are or
will be valid, binding and enforceable obligations of CDM in accordance
with their respective terms; and

	
 
	
 
	 

	
 

	
(E)
	
CDM is unaware of any material facts or circumstances which have not
been disclosed in this Agreement, which should be disclosed to GHC, in
order to prevent the representations in this Section 6 from being
misleading. 

4

          7.   INDEMNITY.

             (a)   GHC shall defend and indemnify CDM and hold harmless CDM, its
successors, assigns, affiliates, subsidiaries, employees, officers and directors, agents and
attorneys (collectively the "Indemnified Parties"), from and against all demands, claims, liability,
loss, damage and expenses (including reasonable attorney fees and costs) asserted against,
suffered or incurred by any or all of the Indemnified Parties in any way relating to, arising out of,
or occurring because of: (i) the Minerals; (ii) the Assignment of Proceeds; (iii) the Collateral; or
(iv) any Environmental Laws or any similar laws or regulations. It is the intent of the parties
hereto that the indemnifications provided herein shall be interpreted in its broadest sense, and
shall cover such matters as may have occurred from the beginning of time until the expiration of
the longest applicable statute of limitations period.

             (b)   As used herein, the following terms shall have the following meaning:
(i) "Environmental Laws" means all federal, state or local laws, ordinances, rules, regulations
or policies covering the use, storage, treatment, transportation, manufacture, refinement,
handling, production or disposal of Hazardous Materials; and (ii) "Hazardous Materials" means
any flammable substance, explosives, radioactive materials, hazardous wastes, toxic substances,
pollutants, pollutions, or related materials specified as such in, or regulated under, any of the
Environmental Laws, including without limitation any "hazardous waste" as defined by the
Resource Conservation and Recovery Act of 1976, as amended from time to time, and
regulations promulgated thereunder and any "hazardous substance" as defined by the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the
Superfund Amendment and Authorization Act of 1986, as amended from time to time, and
regulations promulgated under it.

          8.   FURTHER ASSURANCES.  GHC shall take all further actions, and shall
execute and deliver all other documents, instruments, and agreements requested by CDM in
order to effectuate the intent of this Agreement, including, but not limited to, providing CDM
with reasonable access to the Minerals upon an event of default herein.

          9.   BREACH OF AGREEMENT AND INVOCATION OF REMEDIES. Failure
of GHC to perform its obligations under the Contract or this Agreement shall constitute a default
under this Agreement. In the event of default, CDM may invoke any and all remedies which it
may have at law, equity or otherwise by statute, including, but not limited to, all remedies
available under the applicable Uniform Commercial Code.

          10.   RIGHTS AND REMEDIES.  The rights and remedies of CDM shall not be
mutually exclusive, and the exercise of one or more of the provisions of this Agreement shall not
preclude the exercise of any other provisions. GRC confirms that damages at law may not be an
adequate remedy for a breach or threatened breach of any provisions hereof and that the breach
of any portion of this Agreement will cause irreparable harm and significant injury to CDM
which may be difficult to ascertain. GHC's obligations hereunder shall be enforceable by
specific performance, injunction or other equitable remedy.

5

          11.   GOVERNING LAW; JURISDICTION; VENUE.  This agreement has been
executed in the State of Montana and shall be deemed to have been drawn in accordance with the
laws of the State of Montana, to be performed in the County of Missoula, State of Montana, and
that proper venue for all judicial actions shall be in the County of Missoula.

          12.   PARAGRAPH OR SECTION HEADINGS.  Paragraph or section headings are
provided for convenience only. In the event of any inconsistency between the paragraph
headings and the body of the document, the body of the document shall control.

          13.   GRAMMATICAL CONSTRUCTION.  In this Agreement, whenever the
context so requires, the masculine gender includes the feminine and/or neuter, the singular
number includes the plural, and words importing persons shall include firms or corporations and
VIce versa.

          14.   NO RULE OF CONSTRUCTION APPLIED AGAINST DRAFTING
PARTY.  No provision of this Agreement shall be "construed against" or interpreted in a manner
that is unfavorable to a party to this Agreement on the basis that such party may have drafted or
participated in the drafting of such provision.

          15.   COUNTERPARTS.  This Agreement may be executed simultaneously in two or
more counterparts, all of which together shall constitute one and the same instrument and when
so signed shall be deemed to bear the date first written above.

          16.   SUCCESSORS.  This Agreement shall extend to and be binding upon the
successors and assigns of the Patties.

          17.   WARRANTY OF AUTHORITY.  The persons executing and delivering this
Agreement on behalf of the parties represent and warrant that each of them is duly authorized to
do so and that the execution of this Agreement is the lawful and voluntary act of the Parties.

          18.   NOTICES.  All notices, consents and demands under this Agreement shall be in
writing and may be delivered personally, sent by telegram, telex, air courier or facsimile or may
be forwarded by first class pre-paid registered or certified mail to the address for each party set
forth above, or to such address as each patty may from time to time specify by notice. Any notice
delivered or sent by telegraph, telex or facsimile shall be deemed to have been given and
received on the business day next following the date of delivery. Any notice mailed as aforesaid
shall be deemed to have been given and received on the third business day following the date it is
posted; provided that if between the time of mailing and the actual receipt of the notice there
shall be a mail strike, slowdown or other labor dispute which might affect delivery of the notice
by mails, then the notice shall be effective only if actually delivered. Each party's proper address
shall be the address first set forth above, until such party specifies another address written notice
to the other party.

6

          19.   COSTS AND ATTORNEYS' FEES.  In the event that either party institutes
legal action for the enforcement of any right, obligation, provision or covenant ofthis agreement,
the prevailing party shall be entitled to a reasonable attorney's fee in addition to costs of suit.

          20.   TIME; WAIVER OF BREACH.  It is agreed by the Parties that time is of the
essence to this Agreement. The failure of either party to enforce for any time or for any period of
time any of the provisions of this Agreement shall not be construed as a waiver of such provision
or of the right of such party thereafter to enforce each and every such provision.

          21.   MODIFICATION OF AGREEMENT.  It is expressly understood and agreed by
and between the Parties hereto that this Agreement may be modified only by a written
instrument, which written instrument must be signed by all of the Parties to this Agreement.

          22.   SEVERABILITY.  If any provision of this Agreement, or the application thereof
to any person or circumstance, shall for any reasons or to any extent, be invalid or unenforceable,
such invalidity or unenforceability shall not in any manner affect or render invalid or
unenforceable the remainder of this Agreement, and the application of that provision to other
persons or circumstances shall not be affected but, rather, shall be enforced to the extent
permitted by law.

          23.   ENTIRE AGREEMENT.  All of the terms and conditions of this Agreement
between the parties are contained herein, and NO REPRESENTATIONS OR INDUCEMENTS
HAVE BEEN MADE OTHER THAN THOSE SPECIFICALLY SET FORTH.

          IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and
year first above written.

	
GRANT HARTFORD CORPORATION:
	

	
CDM Constructors, Inc.:

	
 
	

	
 

	
By:/s/J. Robert Flesher
Eric Sauve, President
sign for Eric Sauve
	

	
By:/s/Robert Vince     
Name:Robert J. Vince
Title:Principal     
          

 

 

 

 

Page 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]