Document:

Exhibit 10.2

 

EXECUTION COPY

 

ESCROW AGREEMENT

 

This Escrow Agreement (this
“Agreement”), dated as of November 29, 2018, is entered into by and among Nevada Gold & Casinos, Inc., a
Nevada corporation (the “Company”), Maverick Casinos LLC, a Nevada limited liability company (“Parent”),
and Mutual of Omaha Bank, as escrow agent (the “Escrow Agent”).

 

WITNESSETH

 

WHEREAS, Parent, the Company,
and Maverick Casinos Merger Sub, Inc., a Nevada corporation and a wholly owned subsidiary of Parent (“Acquisition Corp.”),
have entered into an Agreement and Plan of Merger dated as of September 18, 2018 (as amended by Amendment No. 1 to Agreement and
Plan of Merger Agreement dated as of November 29, 2018, and as it may be further amended, restated, supplemented, or otherwise
modified from time to time, the “Merger Agreement”), pursuant to which Acquisition Corp. will be merged with
and into the Company (the “Merger”), upon the terms and subject to the conditions set forth in the Merger Agreement;

 

WHEREAS, concurrently with
the execution and delivery of this Agreement, the Company and Parent are entering into the Securities Purchase Agreement date as
of November 29, 2018 (as it may be amended, restated, supplemented, or otherwise modified from time to time, the “Securities
Purchase Agreement”), pursuant to which the Company is issuing and selling to Parent 890,390 shares of common stock,
par value $0.12, of the Company (the “Escrow Shares”);

 

WHEREAS, concurrently with
or promptly following the execution of this Agreement, the Company and Parent are depositing the Escrow Shares (and the Stock Certificate
(as defined below) and Share Transfer Documents (as defined below)) with the Escrow Agent into a segregated escrow account (the
“Escrow Account”), to be held, released, and disposed of by the Escrow Agent in accordance with the terms of
this Agreement; and

 

WHEREAS, the Escrow Agent
is willing to establish the Escrow Account on the terms and subject to the conditions set forth herein;

 

NOW, THEREFORE, in consideration
of the mutual promises herein contained and for other good and valuable consideration, and intending to be legally bound, the parties
hereto agree as follows:

 

1.            Definitions.
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Merger Agreement.
For purposes of this Agreement:

 

(a)            “Business
Day” means any day Escrow Agent is open for business, other than Saturday, Sunday, Federal Reserve Bank holiday or any
other day Escrow Agent is authorized by law to be closed.

 

(b)            “Cut-Off
Time” means Escrow Agent’s designated time on any Business Day to receive instructions from a party or parties
to this Agreement and act upon it, which shall not in any event be earlier than 12:00 noon Mountain Time. If such instructions
are not received by the Escrow Agent’s Cut-Off Time, then such instructions shall be acted upon on the following Business
Day.

 

    	 	 	 

     

    

 

2.            Appointment
of Escrow Agent. The Company and Parent hereby appoint the Escrow Agent to act as escrow agent hereunder and the Escrow Agent
hereby accepts such appointment.

 

3.            Deposit
of Escrow Shares. Concurrently herewith, (a) the Company shall give American Stock Transfer & Trust Company, LLC, the Company’s
transfer agent, irrevocable instructions to issue a certificate representing the Escrow Shares (the “Stock Certificate”)
registered in the name of Parent and to deliver the Stock Certificate to the Escrow Agent on an expedited basis, and (b) Parent
shall deliver to the Escrow Agent a stock power, duly executed in blank, and a transfer of ownership form, duly executed in blank,
in a form acceptable to the Company’s transfer agent, in respect of all of the Shares (the documents described in this clause
(b) are referred to herein collectively as the “Share Transfer Documents”). Upon receipt, the Escrow Agent shall
acknowledge its receipt of the Stock Certificate and Share Transfer Documents. The Escrow Agent agrees to hold and dispose of the
Escrow Shares (and the Stock Certificate and Share Transfer Documents) in accordance with the terms and conditions of this Agreement.

 

4.            Voting
and Economic Rights. Subject to the terms of the Securities Purchase Agreement, during the period in which the Escrow Shares
are retained in the Escrow Account, Parent shall be entitled to vote the Escrow Shares and to receive the economic benefit of any
dividends or other distributions paid or made with respect to the Escrow Shares unless and until the Escrow Shares have been delivered
to the Company as provided herein. Subject to the other terms of this Agreement, none of the Escrow Shares or any interest therein
may be sold, assigned, disposed of, pledged, encumbered, hypothecated, or otherwise transferred, or taken or reached by legal or
equitable process in satisfaction of any debt or other liability of Parent prior to the release of the Escrow Shares by the Escrow
Agent pursuant to the terms hereof. The parties agree that, for purposes of United States federal and other taxes based on income,
Parent shall be treated as the owner of the Escrow Shares and that Parent shall report the income, if any, that is earned on, or
derived from, the Escrow Shares as its income, in the taxable year or years in which such income is properly includible and pay
any taxes attributable thereto.

 

5.            Release
of Escrow Shares.

 

(a)            In
the event that the Merger Agreement is terminated prior to the effective time of the Merger and Parent is required to pay the Parent
Termination Fee pursuant to the terms of the Merger Agreement, Parent will forfeit to the Company all of the Escrow Shares in satisfaction
of the Parent Termination Fee in accordance with the terms of the Securities Purchase Agreement and the Merger Agreement, and Parent
and the Company shall promptly (and in any event within two Business Days) following the date of the event giving rise to the obligation
to make such payment deliver a joint written instruction to the Escrow Agent by the Cut-Off Time to deliver all of the Escrow Shares
(and the Stock Certificate and Share Transfer Documents) held in the Escrow Account to the Company or its designee. In such case,
the Company and Parent agree among each other to fulfill or comply with all of their respective obligations and covenants under
the Securities Purchase Agreement and the Merger Agreement related to the forfeiture by Parent of the Escrow Shares to the Company,
including (i) in the case of Parent, delivery of all such other documents and instruments to the Company as are necessary to transfer
to the Company all of the Escrow Shares (including, if requested by the Company, a transfer of ownership form, duly executed in
blank (with a medallion guarantee), in a form acceptable to the Company’s transfer agent, in respect of all of the Escrow
Shares), free and clear of all Liens (as defined in the Securities Purchase Agreement), other than Liens imposed by applicable
federal and state securities laws, and (ii) in the case of the Company, payment to Parent of an amount equal to the Cash Payment
(as defined in the Securities Purchase Agreement).

 

    	 	2	 

     

    

 

(b)            In
the event the Merger Agreement is terminated in accordance with its terms prior to the effective time of the Merger and the Parent
Termination Fee is not payable, the Company will purchase from Parent, and Parent will sell to the Company, all of the Escrow Shares
for a cash purchase price equal to the Purchase Price (as defined in the Securities Purchase Agreement) in accordance with the
terms of the Securities Purchase Agreement and the Merger Agreement, and Parent and the Company shall promptly (and in any event
within two Business Days) following the date of termination deliver a joint written instruction to the Escrow Agent by the Cut-Off
Time to deliver all of the Escrow Shares (and the Stock Certificate and Share Transfer Documents) held in the Escrow Account to
the Company or its designee. In such case, the Company and Parent agree among each other to fulfill or comply with all of their
respective obligations and covenants under the Securities Purchase Agreement and the Merger Agreement related to the purchase and
sale of the Escrow Shares, including (i) in the case of Parent, delivery of all such other documents and instruments as are necessary
to transfer to the Company all of the Escrow Shares (including, if requested by the Company, a transfer of ownership form, duly
executed in blank (with a medallion guarantee), in a form acceptable to the Company’s transfer agent, in respect of all of
the Escrow Shares), free and clear of all Liens, other than Liens imposed by applicable federal and state securities laws, and
(ii) in the case of the Company, payment to Parent of an amount equal to the Purchase Price.

 

(c)            If
the Merger is consummated, in accordance with the terms of the Merger Agreement, Parent and the Company will deliver a joint written
instruction on a given Business Day to the Escrow Agent by the Cut-Off Time to deliver all of the Escrow Shares (and the Stock
Certificate and Share Transfer Documents) held in the Escrow Account to Parent, and the Escrow Shares, like all other shares of
common stock owned, directly or indirectly, by Parent or Merger Sub immediately prior to the effective time of the Merger, shall
be cancelled and shall cease to exist, without any conversion thereof and no payment or distribution shall be made with respect
thereto pursuant to Section 3.02 of the Merger Agreement.

 

(d)            Notwithstanding
anything to the contrary in this Agreement, the Escrow Agent shall dispose of all or a portion of the Escrow Shares (and the Stock
Certificate and Share Transfer Documents) held in the Escrow Account in accordance with a joint written instruction signed by Parent
and the Company, whether such disposition is pursuant to the terms of this Escrow Agreement or otherwise.

 

(e)            Notwithstanding
anything to the contrary in this Agreement, the Escrow Agent shall promptly release all or any portion of the Escrow Shares (and
the Stock Certificate and Share Transfer Documents) held in the Escrow Account, at any time or from time to time, in accordance
with an Order (as defined below) that is presented to the Escrow Agent by Parent or the Company. The Escrow Agent shall promptly
upon receipt of any such Order comply with such Order. The Escrow Agent shall be entitled to act on any such Order without further
inquiry, question, or consent. As used in this Agreement, the term “Order” means any final and non-appealable
order, judgment, or decree of any court of competent jurisdiction.

 

    	 	3	 

     

    

 

(f)            Escrow
Agent shall have no less than three (3) Business Days to act upon any instruction received by the Cut-Off Time pursuant to this
paragraph 5.

 

6.            Conflicting
Demands. If conflicting or adverse claims or demands are made or notices served upon the Escrow Agent, then the Escrow Agent
shall refrain from complying with any such claim or demand so long as such disagreement shall continue. In so doing, the Escrow
Agent shall not be or become liable for damages, losses, costs, expenses, or interest to any Person for its failure to comply with
such conflicting or adverse demands. The Escrow Agent shall continue to so refrain and refuse to act until it shall have received
certification satisfactory to it that such conflicting or adverse claims or demands shall have been finally determined by an Order,
or shall have been settled by agreement of Parent and the Company, in which case the Escrow Agent shall be notified thereof in
a written notice signed by Parent and the Company. The Escrow Agent may seek the advice of legal counsel in any dispute or question
as to the construction of any of the provisions of this Agreement or its duties hereunder, and it shall incur no liability and
shall be fully protected in respect of any action taken, omitted, or suffered by it in good faith in accordance with the opinion
of such counsel. The Escrow Agent may also elect to commence an interpleader or other action for declaratory judgment for the purpose
of having the respective rights of the claimants adjudicated, and may deposit with the court all Escrow Shares (and the Stock Certificate
and Share Transfer Documents), and if it so commences and deposits all Escrow Shares (and the Stock Certificate and Share Transfer
Documents), the Escrow Agent shall be relieved and discharged from any further duties and obligations under this Agreement.

 

7.            Termination.
This Escrow Agreement, except for paragraphs 8(c), 8(d), and 8(i), which shall continue in effect, shall terminate on the date
on which there are no remaining Escrow Shares held in the Escrow Account.

 

8.            Duties
of Escrow Agent; Exculpation and Indemnification of Escrow Agent.

 

(a)            The
Escrow Agent undertakes to perform only such duties as are expressly set forth herein.

 

(b)            The
Escrow Agent shall be under no duty to accept information from any person other than the Company and Parent and then only to the
extent and in the manner provided in this Agreement.

 

(c)            Except
in cases of the Escrow Agent’s bad faith, gross negligence, willful misconduct, fraud, or willful breach of this Agreement,
the Escrow Agent shall be protected in acting upon any written notice, opinion, request, certificate, approval, consent, or other
document believed by it to be genuine and to be signed by the proper party or parties.

 

    	 	4	 

     

    

 

(d)            Parent
and the Company hereby jointly and severally agree to indemnify and hold harmless the Escrow Agent from and against any claims,
losses, damages, liabilities, and expenses (including reasonable legal fees and expenses of attorneys) as and when incurred, arising
out of or based upon any act, omission, alleged act, or alleged omission by the Escrow Agent, or any other cause, in any case in
connection with the performance or non-performance by the Escrow Agent of any of the Escrow Agent’s duties under this Agreement,
except such claims losses, liabilities, and expenses arising out of or based upon the Escrow Agent’s bad faith, gross negligence,
willful misconduct, fraud, or willful breach of this Agreement; provided, however, that promptly after the receipt
by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit, or proceeding, the Escrow Agent shall,
if a claim in respect thereof is to be made by the Escrow Agent against Parent and the Company hereunder, notify Parent and the
Company in writing; and provided, further, that Parent and the Company shall be entitled, jointly or severally and
at their own expense, to participate in and/or assume the defense of any such action, suit, or proceeding. As between Parent and
the Company, all costs of indemnification of the Escrow Agent shall be borne 50% by Parent and 50% by the Company and if either
Parent or the Company incurs greater than 50% of any such costs of indemnification, Parent or the Company, as applicable, will
promptly make payment to the other such that each of Parent and the Company has borne 50% of all amounts which are paid to Escrow
Agent under this subparagraph (d).

 

(e)            The
Escrow Agent shall have no liability or duty to inquire into the terms and conditions of any agreements to which the Escrow Agent
is not a party, its duties under this Agreement being understood to be purely ministerial in nature.

 

(f)            The
Escrow Agent shall be permitted to consult with counsel of its choice and shall not be liable for any action taken, suffered, or
omitted by it in good faith in accordance with the written advice of such counsel; provided, however, that nothing
contained in this subparagraph (f), nor any action taken by the Escrow Agent, or of any counsel, shall relieve the Escrow Agent
from liability for any claims which are occasioned by its bad faith, gross negligence, willful misconduct, fraud, or willful breach
of this Agreement. The Company shall deposit a reserve of ten thousand dollars ($10,000) with the Escrow Agent for payment of any
legal expenses pursuant to this paragraph. Any un-used funds shall be returned to the Company upon termination of this Agreement.

 

(g)            The
Escrow Agent shall not be bound by any modification, amendment, termination, cancellation, rescission, or supersession of this
Agreement, unless the same shall be in writing and signed by the parties hereto.

 

(h)            The
Escrow Agent shall perform any acts ordered by a court of competent jurisdiction. The Escrow Agent shall if and to the extent it
is uncertain as to its duties and rights hereunder, be entitled to refrain from taking any action other than to keep all Escrow
Shares (and the Stock Certificate and Share Transfer Documents) in escrow until it shall be directed otherwise in writing by both
the Company and Parent, in accordance with this Agreement, or by an Order.

 

(i)             The
Escrow Agent shall have no liability for any act or omission done pursuant to the instructions contained or expressly provided
for herein, or written instructions given by both the Company and Parent pursuant hereto, except in cases of the Escrow Agent’s
bad faith, gross negligence, willful misconduct, fraud, or willful breach of this Agreement.

 

    	 	5	 

     

    

 

(j)            The
Escrow Agent shall have the right, at any time, to resign hereunder by giving written notice of its resignation to the Company
and Parent, at least thirty (30) Business Days prior to the date specified for such resignation to take effect; provided,
however, that no such resignation shall be effective unless and until Parent and the Company have selected a successor escrow
agent and such successor escrow agent shall have assumed all of the obligations of the Escrow Agent hereunder. Upon receipt of
written notice from Parent and the Company that a successor escrow agent has been selected and assumed the obligations of the Escrow
Agent hereunder, the Escrow Agent shall promptly deliver the Escrow Shares (and the Stock Certificate and Share Transfer Documents)
to such successor escrow agent. If Parent and the Company have failed to appoint a successor prior to the expiration of thirty
(30) Business Days following receipt of the Escrow Agent’s notice of resignation, the Escrow Agent may petition any court
of competent jurisdiction for the appointment of a successor escrow agent or for other appropriate relief, and any such resulting
appointment shall be binding upon all of the parties.

 

(k)            The
Company and Parent agree to reimburse the Escrow Agent upon its request for all reasonable expenses, disbursements, and advances
incurred or made by it in accordance with any provisions of this Agreement, except any such expenses, disbursements, or advances
as may be attributable to its gross negligence, willful misconduct, bad faith, fraud, or other breach of fiduciary duty. All reimbursements
pursuant to this subparagraph (k) shall be made one half by the Company and one half by Parent. The Escrow Agent shall deliver
to Parent and the Company upon request a detailed accounting as to all fees and reimbursable expenses claimed by the Escrow Agent.

 

(l)            The
Escrow Agent shall be entitled a one-time fee of $2,500 (“Set-Up Fee”) for the Escrow Agent’s initial review
of this Agreement and the Escrow Account set-up, and an annual fee of $9,500 (‘Annual Fee”) for its services as Escrow
Agent hereunder (it being understood and agreed that such fees are the only fees to which Escrow Agent is entitled) in connection
with the performance of its duties hereunder, and services required on account of disputes between Parent and the Company. Such
fees shall be paid one-half by the Company and one-half by Parent. The Set-Up Fee and the Annual Fee shall be due and payable upon
execution of this Agreement. The Set-Up Fee and Annual Fee are non-refundable and shall not be pro-rated or reduced due to any
termination event.

 

9.            Representations
and Warranties. Each party hereby represents and warrants to each other party hereto that:

 

(a)            this
Agreement has been duly authorized, executed, and delivered by such party and is the legal, valid, and binding agreement of such
party, enforceable against such party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium, or other laws relating to or affecting the rights and remedies of creditors generally and to general principles of
equity (regardless of whether in equity or at law); and

 

(b)            the
execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby will not violate
any provision of, or be an event that is or, with the passage of time will result in, a violation of, or result in the acceleration
of or entitle any party to accelerate (whether after the giving of notice or lapse of time or both) any obligation under or pursuant
to any mortgage, lien, lease, agreement, instrument, order, arbitration award, judgment, or decree to which such party is a party
or by which it or any of its assets are bound.

 

    	 	6	 

     

    

 

10.          Notices.
All requests, notices, or other communications hereunder shall be in writing and shall be given (and shall be deemed to have been
duly given upon receipt) by hand in a sealed envelope, by prepaid overnight courier (providing proof of delivery), by email, or
by registered or certified mail, return receipt requested, postage prepaid to the respective parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with this paragraph 10):

 

if to the Company:

 

Nevada Gold & Casinos, Inc.

133 E. Warm Springs Road, Suite 102

Las Vegas, Nevada 89119

Attention: Michael P. Shaunnessy, President & CEO

Email: mshaunnessy@nevadagold.com

 

with a copy to:

 

Hughes Hubbard & Reed LLP

One Battery Park Plaza

New York, NY 10004

Attention: James Modlin

Email: james.modlin@hugheshubbard.com

 

if to Parent:

 

Maverick Casinos LLC

2926 Montessouri Street

Las Vegas, NV 89117

Attention: Erick Persson

Email: erichpersson@gmail.com

 

with a copy to:

 

Lewis Roca Rothgerber Christie LLP

3993 Howard Hughes Parkway, Suite 600

Las Vegas, NV 89169

Attention: Don Martin, Esq.

Email: dmartin@lrrc.com

 

if to the Escrow Agent:

 

Mutual of Omaha Bank

Wealth Management

9200 E Pima Center Parkway, Suite 260

Scottsdale, AZ 85258

Attention: Bruce Fox

Email: Bruce.Fox@mutualofomahabank.com

 

    	 	7	 

     

    

 

with a copy to:

 

Mutual of Omaha Bank

Bank Law Group

4950 S. 48th Street

Phoenix, AZ 85040

Attn: Janet A. Ryan, Esq.

Email: janet.ryan@mutualofomahabank.com

 

11.          Governing
Law; Jurisdiction.

 

(a)            This
Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to the conflicts
of law rules of such state that would direct a matter to another jurisdiction.

 

(b)            Each
of the parties (i) agrees that any action, suit, or proceeding seeking to enforce any provision of, or based on any matter arising
out of or in connection with this Agreement or the transactions contemplated hereby (whether brought by any party or any of its
affiliates or against any party or any of its affiliates) shall be brought, heard, and determined exclusively in the state courts
located in the State of Nevada or, if such court shall not have jurisdiction, any of the federal courts of the United States of
America located in the State of Nevada, (ii) irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate
courts therefrom) in any such action, suit, or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection
that it may now or hereafter have to the laying of the venue of any such action, suit, or proceeding in any such court or that
any such action, suit, or proceeding brought in any such court has been brought in an inconvenient forum, (iii) agrees that it
will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such court, and (iv) agrees
not to bring any action, suit, or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby
in any other court. The parties agree that a final trial court judgment in any such action, suit, or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law; provided, however,
that nothing in the foregoing shall restrict any party’s rights to seek any post-judgment relief regarding, or any appeal
from, such final trial court judgment.

 

12.          Waiver
of Jury Trial. EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    	 	8	 

     

    

 

13.          Entire
Agreement. This Agreement, and solely with respect to Parent and the Company, the Merger Agreement and the Securities Purchase
Agreement, contain the entire agreement by and among the parties with respect to the subject matter hereof and all prior agreements
and undertakings, written or oral, relating to the subject matter of this Agreement are superseded by this Agreement and solely
with respect to Parent and the Company, the Merger Agreement and the Securities Purchase Agreement.

 

14.          Assignment.
Neither this Agreement nor any of the rights, interests, or obligations under this Agreement may be assigned by any of the parties
without the prior written consent of the other parties. Any purported assignment in violation of this paragraph 14 will be null
and void ab initio. Subject to the preceding sentences, this Agreement will be binding upon, inure to the benefit of, and
be enforceable by, the parties and their respective successors and assigns.

 

15.          Amendments;
Waiver. This Agreement may not be amended or modified except by written agreement of the parties. Any party hereto may, only
by an instrument in writing, waive compliance by any other party or parties hereto with any term or provision hereof on the part
of such other party or parties hereto to be performed or complied with. No failure or delay of any party in exercising any right
or remedy hereunder shall operate as a waiver thereof, nor will any single or partial exercise of any right or power, or any abandonment
or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any
other right or power. The waiver by any party hereto of a breach of any term or provision hereof shall not be construed as a waiver
of any subsequent breach. The rights and remedies of the parties hereunder are cumulative and are not exclusive of any rights or
remedies that they would otherwise have hereunder.

 

16.          Miscellaneous.
Nothing in this Agreement is intended to or shall confer upon anyone other than the parties hereto any legal or equitable right,
remedy, or claim. Except as otherwise set forth in this Agreement, all fees and expenses incurred in connection with this Agreement,
including all legal, accounting, financial advisory, consulting, and all other fees and expenses of third parties incurred by a
party in connection with this Agreement and the transactions contemplated hereby, shall be the obligation of the respective party
incurring such fees and expenses. This Agreement may be executed and delivered (including by facsimile or other form of electronic
transmission) in two or more counterparts, and by the different parties in separate counterparts, each of which when executed shall
be deemed to be an original but all of which taken together shall constitute one and the same agreement. Paragraph headings contained
in this Agreement are solely for convenience of reference and shall not affect the meaning or interpretation of any term or provision
hereof. If any provision of this Agreement or the application of any such provision to any person or circumstance shall be held
invalid, illegal, or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality, or unenforceability
shall not affect any other provision hereof.

 

[Signature page follows]

 

    	 	9	 

     

    

 

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

 

	 	NEVADA GOLD & CASINOS, INC.
	 	 	 
	 	By:	/s/ Michael P. Shaunnessy
	 	 	Name:  Michael P. Shaunnessy
	 	 	Title:  President & CEO
	 	 	 
	 	MAVERICK CASINOS LLC
	 	 	 
	 	By:	/s/ Eric Persson
	 	 	Name:  Eric Persson
	 	 	Title: Manager
	 	 	 
	 	MUTUAL OF OMAHA BANK
	 	 	 
	 	By:	/s/ Bruce Fox
	 	 	Name:  Bruce Fox
	 	 	Title:  Vice President

 

[Signature page to Escrow Agreement]icnb_ex101.htm

EXHIBIT 10.1
  
 DISTRIBUTION AGREEMENT
  
 This Distribution Agreement (“Agreement”), dated this 1st day of May, 2015, by and between Bivi LLC, a Nevada limited liability company (“Bivi”) and United Spirits, Inc. a New York corporation (“United”).
  
 WITNESSETH:
  
 WHEREAS, Bivi is the brand owner of “BiVi 100 percent Sicilian Vodka” an Alcoholic Beverage (as defined below) that desires to establish a market for such beverages in the United States and around the world;
  
 WHEREAS, Bivi desires to work with United to distribute and wholesale Bivi’s Alcoholic Beverages, acting as the licensed importer and wholesaler;
  
 NOW, THEREFORE, in consideration of the promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
  
 ARTICLE I
 DEFINITIONS
  
 1.1. For purposes of this Agreement, the following terms have the meanings set forth below:
  
 “Alcoholic Beverages” means Bivi brand vodka or such other alcoholic beverages as the parties agree in writing.
  
 “FOB” means “free on board” United’s warehouses in New York and New Jersey (“FOB Points”), meaning for purposes of this Agreement that (i) Bivi shall bear the expense and risk of loss of transporting Product to the FOB Points and (ii) that title to Product shall pass from Bivi to United at the FOB Point at which the Product is delivered.
  
 “Force Majeure” means the inability of Bivi to supply Product pursuant to Article IV as a direct result of: acts of God; strikes or other labor unrest; civil disorder; fire; explosion; perils of the sea; flood; drought; war; riots; sabotage; terrorism; accident; embargo; priority, requisition or allocation mandated by governmental action; changes in laws or regulations that impair the Production or export of Alcoholic Beverages into the Territory; shortage or failure of supply of ingredients or raw materials necessary to produce Product; or other cause beyond control of Bivi. The duration of any Force Majeure occurrence is limited to the period during which Bivi is unable to supply Product, or make reasonable alternative arrangements to supply Product, due of the event or condition giving rise to such Force Majeure occurrence.
  
  	 
	 
	 
 
	 

  
 “Law”, unless otherwise expressly stated in this Agreement, includes statutes, regulations, decrees, ordinances and other governmental requirements, whether federal, state, local or of other authority.
  
 “Product” means the Bivi brand vodka.
  
 “Territory” means the Globally.
  
 “Trademarks” means the trademarks described in Schedule A to this Agreement as belonging to Bivi, as such Exhibit may be supplemented from time to time pursuant to Section 3.
  
 (a) Unless the context of this Agreement otherwise requires, (i) words of any gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively; (iii) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement; (iv) the terms “Article”, “Section”, “Schedule” or “Exhibit” refer to the specified Article, Section, Schedule or Exhibit of this Agreement, unless otherwise specifically stated; (v) the words “include” or “including” shall mean “include, without limitation” or “including, without limitation;” and (vi) the word “or” shall be disjunctive but not exclusive.
  
 (b) References to agreements and other documents shall be deemed to include all subsequent amendments and other modifications thereto.
  
 (c) References to statutes shall include all regulations promulgated thereunder and, except to the extent specifically provided below, references to statutes or regulations shall be construed as including all statutory and regulatory provisions consolidating, amending or replacing the statute or regulation.
  
 (d) The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party. This Agreement is the joint drafting product of the parties hereto and each provision has been subject to negotiation and agreement and shall not be construed for or against any party as drafter thereof.
  
 (e) All accounting terms used herein and not expressly defined herein shall have the meanings given to them under GAAP.
  
 (f) All amounts in this Agreement are stated and shall be paid in United States dollars.
  
  	 
	 
	 
 
	 

  
  
 ARTICLE II
 CERTAIN UNDERTAKINGS OF BIVI
  
 BIVI represents and warrants that (a) BIVI has and will maintain throughout the term of this Agreement the exclusive right to sell Product for export to the Territory; (b) there is not in effect any agreement between BIVI and any other person or entity giving any right to any such other person or entity to sell Product in the Territory; and (c) BIVI has the full contractual and corporate power and authority to perform its obligations under this Agreement.
  
 ARTICLE III
 EXCLUSIVITY
  
 3.1. Subject to the terms of this Agreement, BIVI hereby grants to United the exclusive right during the Term (as such term is defined herein to sell Product within the Territory, including for resale.
  
 3.2. United agrees not to sell Product outside the Territory. United shall use its commercially reasonable efforts to prevent parties purchasing Product directly or indirectly from United from reselling such Product outside the Territory or in any manner not authorized by this Agreement.
  
 3.3. United may not use any of the Trademarks, including but not limited to use on labels, packaging, promotional materials, displays and in advertising and promotion, except in a form, color, style, manner and appearance and with surrounding content (“Form”) and in connection with such goods or items as previously approved by BIVI as provided below. For purposes of this Agreement, any materials supplied by or on behalf of BIVI to United bearing any of the Trademarks for use in connection with the performance of this Agreement, shall be deemed approved by BIVI for ordinary use in the performance of this Agreement. To the extent that United wishes to use a Trademark in a Form or for a use other than one that has been previously approved, it shall submit a written request to BIVI specifying the requested new Form or use along with a sample of the use. If BIVI approves such request in writing (such approval not to be unreasonably withheld) United may commence use of the Trademark in the Form or use requested pursuant to the terms of the Agreement and subject to any reasonable limitations that may be imposed by BIVI in connection with its approval. As described above, BIVI may from time to time prescribe reasonable changes in the approved Form or use of the Trademarks and United shall comply with such changes provided that it is either permitted a reasonable period to exhaust the existing inventory of material that would no longer be deemed to constitute an approved use or is otherwise compensated for any costs that it may incur if it is not permitted to exhaust such inventory. Any new trademarks created by United at the request of BIVI for BIVI’s Products shall belong exclusively to BIVI and shall be added to Schedule A.
  
  	 
	 
	 
 
	 

   
 3.4. BIVI shall be deemed to be the exclusive owner of all intellectual property used or developed in connection with this Agreement by United or any other party that a) incorporates the Trademarks or any variations thereof or derivative works based upon any of the Trademarks; b) in the absence of this Agreement, would infringe upon or otherwise violate the rights of BIVI in the Trademarks under the laws of the Territory, or c) is based upon confidential or proprietary information or such other names, marks, ideas, concepts or material created by or belonging to BIVI. To the extent United assists BIVI in creating new Trademarks As between the parties and unless contrary to applicable law, United shall be the owner of any intellectual property independently developed by United that does not pertain to the areas set forth above.
  
 3.5. United shall acquire no ownership rights in the Trademarks or variations thereon or derivative works based thereon or any intellectual property deemed to be owned by BIVI as a result of this Agreement. United shall, at any time requested by BIVI, whether during or subsequent to the term hereof, disclaim in writing any such property interest or ownership in the Trademarks. Upon the termination of the Joint Venture Agreement (as defined in the Company Agreement), all rights of United to use the Trademarks as provided herein and any other intellectual property belonging to BIVI shall be terminated and revert to BIVI. Notwithstanding the above, United shall be permitted, unless otherwise agreed, a reasonable time in which to exhaust any inventory of Product bearing or incorporating the Trademarks and United shall not be liable for any advertising and promotional activities that were scheduled in good faith prior to the termination and cannot be cancelled.
  
 3.6. If, for any reason or circumstances, United is deemed under any law or regulation to have acquired any right or interest with respect to the Trademarks, United shall, at the request of BIVI, promptly execute any document reasonably needed in order for United to transfer to BIVI any and all such rights, titles and interests in and to the Trademarks, including the goodwill which these represent. Such obligation shall continue after termination or expiration of this Agreement and any extensions thereof.
  
 3.7. United shall not, either directly or indirectly:
  
 (a) establish, form, be an owner of, operate, administer, authorize or control any company, division, corporation, association or business entity under any name which includes any of the Trademarks, either in whole or part, or under any name which is similar to the Trademarks;
  
  	 
	 
	 
 
	 

  
 (b) use (except as expressly authorized by this Agreement to use the Trademarks), register, or in any other manner claim the ownership of a trademark, trade name, commercial name, firm name or service mark which includes any of the Trademarks either wholly or partially, or which is similar to any of the Trademarks; or
  
 (c) use any Trademark on or in connection with any beer or other object other than a Product, except as expressly permitted by this Agreement.
  
 3.8. United shall comply with all reasonable instructions from BIVI as to requirements for the use, protection and maintenance of the Trademarks. United shall do nothing nor knowingly permit anything within its control to happen which will diminish or adversely affect the right and title of BIVI to the Trademarks, to the goodwill and the good name associated therewith, or to their value, and United shall comply with all reasonable instructions it may receive from BIVI on this subject.
  
 3.9. BIVI shall cause all of its suppliers of advertising, promotional materials or any other element that uses the Trademarks to identify the Products to obtain a license agreement from BIVI.
  
 ARTICLE IV
 SUPPLY OF PRODUCT LINE
  
 4.1. BIVI shall initially supply to United 1008 cases of vodka that conform to the sample of vodka submitted to TTB for approval and which has been approved by the TTB for sale in the United States. Such Product will be delivered FOB 44 Seabro Avenue Amityville, NY 11701. The warehousing of the Product delivered shall occur in accordance with the provisions of Article V below.
  
 4.2 After the initial supply, BIVI shall supply to United such volumes of Product as are required by United for importation and sale within the Territory pursuant to the Sales Budget agreed to in writing by BIVI. Such Product will also be distributed FOB 44 Seabro Avenue Amityville, NY 11701.
  
 4.3. All orders for Product under this Agreement shall be made by United specifying the type of Product ordered and the quantities thereof and the intended delivery dates. All orders shall comply with the lead times agreed to by BIVI and United in writing.
  
  	 
	 
	 
 
	 

  
 4.4. All Product delivered to United shall be delivered on a consignment basis. In the case of the initial supply, BIVI shall have no right to request and receive the return of such Product (“Reclaim such Product”) from United for a period of 360 days from the delivery to United. As to subsequent shipments, BIVI shall have no right to Reclaim such Product for 180 days. BIVI’s right to Reclaim such Product shall be limited solely to United’s failure to meet specified sales targets agreed to in writing by United.
  
 4.5. BIVI HEREBY REPRESENTS AND WARRANTS THAT THE PRODUCTS ARE NEW, FIRST CLASS PRODUCTS, THAT THEY ARE FIT FOR HUMAN CONSUMPTION, THAT THE PRODUCTS ARE UNADULTERATED, ARE MERCHANTABILITY AND ARE FIT FOR THE INTENDED PURPOSE. FURTHER, BIVI REPRESENTS AND WARRANTS THAT THE PRODUCT CONFORMS TO THE SAMPLE PRODUCT APPROVED BY TTB.
  
 4.6 BIVI shall supply United with a certificate of product liability insurance with the following limits: 1 million/3 million USD. Product liability insurance with these limits will be maintained at all times for so long as United acts as the importer/distributor of BIVI’s Brands and for a tail period of at least 2 years.
  
 4.7. In the event of any conflict between the provisions of any order and the provisions of this Agreement (including without limitation terms of payment and warranties concerning Product), the provisions of this Agreement shall govern.
  
 ARTICLE V
 WAREHOUSING
  
 5.1 United will warehouse the Products delivered by BIVI at warehouses to be approved by the BIVI Representative (as such term is defined herein. Title to such product shall remain in the name of BIVI. United shall not relocate the Products without the express written consent of the BIVI Representative.
  
 5.2 No product shall be removed from the warehouse without the approval of the BIVI Representative except for sales to wholesalers in the ordinary course of business. Such sales shall only be made in accordance with the payment requirement specified in Section VII below.
  
  	 
	 
	 
 
	 

  
 ARTICLE VI
 PAYMENTS TO UNITED ON SALES
  
 6.1 All payments to United from sales of the Product will be deposited for clearance into United’s account. After said deposits clear the proceeds will be deposited to the Account of BiVi LLC at Bank of America. Any checks that are delivered to United will be deposited into the BiVi LLC Bank of America account. No checks or withdrawals from this account shall occur except to BIVI or the parties identified by them. BIVI shall retain for its own use all Net Proceeds from sales of the Product by United. Net Sales shall mean gross proceeds from sales of the Product, less any charge backs incurred from third party distributers of the Product.
  
 6.2. United agrees to appoint Richard DeCicco as (“BIVI Representative”). In the event the BIVI representative ceases to serve in such capacity BIVI shall have the right to nominate another person to serve as the BIVI Representative and United agrees to promptly appoint such person. The BIVI Representative shall have full access during normal business hours to all books and records of United and United.
  
 6.3 Within 10 days of the end of each calendar month, United will provide a full accounting of sales and charge backs in the form of financial statements consisting of a bank statement and cash flow statement and make such statements available to the BIVI Representative.
  
 ARTICLE VII
 REPORTS
  
 7.1. United and the BIVI Representative shall agree on the contents and timing of such reports to be supplied by United.
  
 7.2. United shall deliver each report required by Section 7.1 both (a) in writing and (b) by such other means of electronic reproduction as BIVI Representative may reasonably request from time to time. United shall cause each such report in writing to be signed by an authorized representative of United or of the party who generated the report. In the event of inconsistency between a report in writing and a report by electronic means, the report in writing shall control.
  
 7.3. The BIVI Representative may at its own expense, upon reasonable advance notice to United, through accountants or other representatives designated by the BIVI Representative for such purposes, enter during normal business hours any storage facility or business office owned or controlled by United and examine such facilities, inventories and that portion of the books and records of United needed to determine the accuracy of any report delivered under this Agreement.
  
  	 
	 
	 
 
	 

  
 ARTICLE VIII
 COMPLIANCE WITH LAWS
  
 8.1. During the term of this Agreement, United shall obtain and maintain in good standing, or otherwise have valid access to, all U.S. (federal and state) licenses required for the performance of this Agreement by United, including without limitation all licenses required for the importation or sale of Product in the Territory (“Requisite Licenses”).
  
 8.2. United agrees to comply with all laws applicable to the selling of Product, including, without limitation, those relating to labels and identifying marks on Containers.
  
 83 As and when requested by United, BIVI shall use its commercially reasonable efforts to sign and deliver to United such documents as United requires for filing with governmental authorities to comply with laws applicable to the importation or sale of Product.
  
 ARTICLE IX
 TERM
  
 The term of this Agreement shall commence on the date hereof and shall continue for a period of Ten years from the date first above written.
  
 ARTICLE X
 GOVERNING LAW
  
 This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without reference to its principals of conflicts of laws that would require application of the substantive laws of any other jurisdiction. BIVI and United hereby irrevocably consent to the exclusive personal jurisdiction and venue of the courts of the State of New York or the federal courts of the United States, in each case sitting in New York County, in connection with any action or proceeding arising out of or relating to this Agreement. United and BIVI hereby irrevocably waive, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of such action or proceeding brought in such a court and any claim that any such action or proceeding brought in such court has been brought in an inconvenient forum. United and BIVI irrevocably consent to the service of process with respect to any such action or proceeding in the manner provided for the giving of notices under Section 10, provided, the foregoing shall not affect the right of either United or BIVI to serve process in any other manner permitted by law. United and BIVI hereby agree that a final judgment in any suit, action or proceeding shall be conclusive and may be enforced in any jurisdiction by suit on the judgment or in any manner provided by applicable law.
  
  	 
	 
	 
 
	 

  
 ARTICLE XI
 MISCELLANEOUS
  
 11.1. Neither party may assign any right under this Agreement without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns.
  
 11. 2. The captions used in this Agreement are for convenience of reference only and shall not affect any obligation under this Agreement.
  
 11.3. This Agreement may be executed in counterparts, each of which when so executed and delivered shall be deemed an original, and such counterparts, taken together, shall constitute one and the same instrument. Signatures sent by facsimile shall constitute and be binding to the same extent as originals. This Agreement may not be amended except by an instrument in writing signed by both parties.
  
 11.4. Any notice, claims, requests, (except for requests made under Section 3.6 hereof) demands, or other communications required or permitted to be given hereunder shall be in writing and will be duly given if: (a) personally delivered, (b) sent by facsimile or (c) sent by Federal Express or other reputable overnight courier (for next business day delivery), shipping prepaid as follows:
  
 11.5. During the term and for a period of 24 months after the termination of the agreement United will have no financial exposure of any actions, purchases, commitments, FET Taxes, or sny incumberances created by BiVi.
   
  	 If to United:
	 United Spirits Inc.
 44 Seabro Avenue
 Amityville, NY 11701

   
  	 
	 
	 
 
	 

  
  	 With a copy to:
	  

	  
	  

	 If to BIVI:
	 BiVi LLC
 44 Seabro Avenue
 Amityville, NY 11726

	  
	  

	 With a copy to:
	 Richard J DeCicco
 71 Shore Drive
 Copiague, NY 11726

   
 or such other address or addresses or facsimile numbers as the person to whom notice is to be given may have previously furnished to the others in writing in the manner set forth above. Notices will be deemed given at the time of personal delivery, if sent by facsimile, when sent with electronic notification of delivery or other confirmation of delivery or receipt, or, if sent by Federal Express or other reputable overnight courier, on the day of delivery.
  
 11.5. This Agreement and the various schedules and exhibits thereto embody all of the understandings and agreements of every kind and nature existing between the parties hereto with respect to the transactions contemplated hereby. This Agreement supersedes all prior discussions, negotiations and agreements between the parties concerning the subject matter of this Agreement.
  
  	 
	 
	 
 
	 

  
 11.6. To the extent that any provision of this Agreement is invalid or unenforceable in the Territory or any state or other area of the Territory, this Agreement is hereby deemed modified to the extent necessary to make it valid and enforceable within such state or area, and the parties shall promptly agree in writing on the text of such modification.
  
 11.7. The parties acknowledge that a breach or threatened breach by them of any provision of this Agreement will result in the other entity suffering irreparable harm which cannot be calculated or fully or adequately compensated by recovery of damages alone. Accordingly, the parties agree that any party may, in its discretion (and without limiting any other available remedies), apply to any court of law or equity of competent jurisdiction for specific performance and injunctive relief (without necessity of posting a bond or undertaking in connection therewith) in order to enforce or prevent any violations of this Agreement, and any party against whom such proceeding is brought hereby waives the claim or defense that such party has an adequate remedy at law and agrees not to raise the defense that the other party has an adequate remedy at law. provided, however, that the foregoing rights may not be exercised in the event that The failure of either party at any time to require performance of any provision of this Agreement shall in no manner affect such party’s right to enforce such provision at any later time. No waiver by any party of any provision, or the breach of any provision, contained in this Agreement shall be deemed to be a further or continuing waiver of such or any similar provision or breach.
  
 11.8. This Agreement is binding upon and shall inure to the benefit of the parties hereto and their successors and permitted assigns. Nothing in this Agreement shall give any other Person any legal or equitable right, remedy or claim under or with respect to this Agreement or the transactions contemplated hereby.
  
 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above.
  
  	 BIVI LLC 
	  
	 UNITED SPIRITS, INC.
	  

	  
	 	 	 	 	 
	 By:
	/s/ Richard J DeCicco	 	By:	/s/ Richard J DeCicco	 
	 Name:
	Richard J DeCicco	 	Name:	Richard J DeCicco	 
	 Title:
	President 	 	Title:	President	 

   
  	 
	 
	 
 
	 

  
 EXHIBIT A
  
 Trademarks
  
 Bivi Vodka

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