Document:

f8k101011ex10vi_redrock.htm

Exhibit 10.6

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

OFFICE SUPPLY LINE, INC.

 

PROMISSORY NOTE

 

	Date of Issuance: October 10, 2011	Principal Amount: $240,000

 

FOR VALUE RECEIVED Office Supply Line, Inc., a Nevada company (the “Company”), promises to pay to Crisnic Fund, S.A. (“Holder”), or its registered assigns, the principal sum of two hundred and forty thousand dollars ($240,000) (the “Principal”) when due, whether upon the Due Date (as defined below), acceleration, prepayment or otherwise (in each case in accordance with the terms hereof).  This promissory note (this “Note”) is issued pursuant to the Securities Exchange Agreement dated as of the date set out above as the Issuance Date (the “Issuance Date”), by and among the Holder, the Company, Red Rock Pictures Holdings Inc., a Nevada corporation and the shareholders of the Company, as may be amended from time to time (the “Exchange Agreement”).  Capitalized terms not otherwise defined herein shall have the same meanings ascribed to them in the Exchange Agreement.

 

Section 1.   Payment of Principal.  On the Due Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal.  For purposes of this Note, “Due Date” means the schedule of payment dates listed on Schedule A.

 

Section 2.   Payment.  Payments due hereunder shall be made in lawful tender of the United States.  All payments due hereunder shall be made by the Company to Holder at the address set forth in Section 13 below, or at such other place as the Holder may from time to time designate in writing.

 

Section 3.   Events of Default.  The occurrence of any of the following shall constitute an “Event of Default” under this Note:

 

(a) The Company shall fail to pay any principal payment required under the terms of this Note within five (5) days of the Due Date thereof.

 

  

  

  

 

Section 4.   Notice of Default; Cure; Remedies.  Upon an Event of Default, the Holder shall deliver written notice of the Event of Default to the Company in accordance with Section 13 hereof (a “Default Notice”).  The Company shall have the right to cure, within the thirty (30) days following the Company’s receipt of a Default Notice (the “Cure Period”), any Event of Default.  If the Company fails to cure an Event of Default within the Cure Period, then at any time following the end of the Cure Period (the “Demand Date”) the Holder may declare all outstanding obligations payable by the Company hereunder to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived and, in addition to the foregoing remedies, the Holder may exercise any other right, power or remedy granted to it or otherwise permitted to it by law, either by suit in equity or by action at law, or both.

 

Section 5.   Escrow Agreement.  The obligations of the Company under this Promissory Note are secured by 650,001 preferred shares of Red Rock Pictures Holdings, Inc. (“Red Rock”) pursuant to the Escrow Agreement, dated as of October 10, 2011 between the Company, Red Rock, the Holder and Sichenzia Ross Friedman Ference Anslow LLP.

 

Section 6.   Subordination.  All payments due under this Note shall rank pari passu with all Other Notes; provided, however, that any and all payments due under this Note shall become subordinate to any future Indebtedness of the Company relating to the consummation of any business combination through purchase, sale, merger, joint venture or otherwise in one or more transactions.  For purposes of this Note, “Indebtedness” means (x) any liabilities for borrowed money or amounts owed in excess of $1,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $1,000 due under leases required to be capitalized in accordance with GAAP.

 

Section 7.   No Voting or Dividend Rights; Limitation of Liability.  Nothing contained in this Note shall be construed as conferring upon the Holder the right to vote or to consent or to receive notice as a member of the Company or any other matters or any rights whatsoever as a member of the Company.  No dividends shall be payable or accrued in respect of this Note, the interest represented hereby or the underlying securities until, and only to the extent that, the conversion rights of this Note shall have been exercised.

 

Section 8.   Successors and Assigns.  The Company may not sell, transfer or otherwise dispose of this Note without the prior written consent of the Holder.  The rights and obligations of the Company and the Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

Section 9.   Construction; Headings.  This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of, this Note.

 

Section 10.   Severability.  Any provision of this Note that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable in any respect.

 

  

  

  

 

Section 11.   Cancellation.  After all principal, accrued interest, late charges and other amounts at any time owed on this Note have been converted or paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

 

Section 12.   Amendments; Waivers.  Any term of this Note may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Purchaser.

 

Section 13.   Notices.  Any notice required or permitted by this Note shall be made in accordance with the Exchange Agreement.

 

Section 14.   Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Note shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to the choice of law principles thereof.  Each of the Company and the Holder irrevocably submits to the exclusive jurisdiction of the courts of the State of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Note and the transactions contemplated hereby.  Service of process in connection with any such suit, action or proceeding may be served on the Company and the Holder, as applicable, anywhere in the world by the same methods as are specified for the giving of notices under the Exchange Agreement.  Each of the Company and the Holder irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  Each of the Company and the Holder irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.  EACH OF THE COMPANY AND THE HOLDER WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS NOTE AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

[Signature Follows On Next Page]

 

  

  

  

 

IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the date first written above.

 

	 	OFFICE SUPPLY LINE, INC.	 
	 	 	 	 
	 	
By: 

	/s/ 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 

 

  

  

  

 

Schedule A

 

	
Amount Due

	
Due Date

	
$50,000

 

	
November 8, 2011

	
$25,000

 

	
November 15, 2011

	
$25,000

 

	
November 22, 2011

	
$25,000

 

	
November 29, 2011

	
$25,000

 

	
December 6, 2011

	
$25,000

 

	
December 13, 2011

	
$25,000

 

	
December 20, 2011

	
$25,000

 

	
December 27, 2011

	
$15,000

 

	
January 3, 2012f8k101011ex10vii_redrock.htm

Exhibit 10.7

 

ESCROW AGREEMENT

           ESCROW AGREEMENT dated as of this 10th day of October, 2011, by and among Office Suply Line, Inc., a Nevada limited liability company (the “Company”), Sichenzia Ross Friedman Ference Anslow LLP, a New York limited liability partnership (the “Agent”), Crisnic Fund, S.A., a Costa Rica company (the “Holder”), and Red Rock Pictures Holdings, Inc., a Nevada limited liability company (the “Parent”).

W I T N E S S E T H:

 

WHEREAS, the Company has entered into a promissoty note with the Holder for two hundred and forty thousand dollars ($240,0000) as recorded in the Promissory Note executed October 10, 2011 (the “Promissory Note”);

 

WHEREAS, the Parent will issue 650,001 shares of its Series A Convertible Preferred Stock (the “Shares”) to the Holder to be placed in escrow as a security against the payment of the Promissory Note; and

 

WHEREAS,  the Shares shall be held in escrow by the Agent pending the payment of the Promissory Note in full.

 

NOW, THEREFORE, in consideration of the mutual promises herein contained and intending to be legally bound, the parties hereby agree as follows:

 

1.           Appointment of Agent.  The Company, the Holder and the Parent hereby appoints the Agent as escrow agent in accordance with the terms and conditions set forth herein, and the Agent hereby accepts such appointment.

 

2.           Agent to Hold and Disburse Shares.  The Agent will hold the Shares and executed stock powers (the “Stock Powers”) in its office at the address given below and disburse the Shares pursuant to the terms of this Escrow Agreement, as follows:

 

2.1           In the event that the Company has paid the Promissory Note in full, the shares shall be cancelled and the Agent will disburse the Shares, including Stock Powers, to the Parent, provided that the Company’s counsel, the Parent’s counsel and the Holder’s counsel has confirmed in writing that all conditions for the release of the escrow funds have been met and that the monies reflected in the Promissory Note have been paid to the Holder.

 

2.2           In the event that the Demand Date, as defined in the Promissory Note, has passed and the Holder has not been paid in full, as provided in the Promissory Note,  the Agent will release all the Shares to the Holder.

 

3.           Exculpation and Indemnification of Agent.

 

3.1           The Agent shall have no duties or responsibilities other than those expressly set forth herein.  The Agent shall have no duty to enforce any obligation of any person to make any delivery, or to direct or cause any delivery to be made, or to enforce any obligation of any person to perform any other act.  The Agent shall be under no liability to the other parties hereto or to anyone else by reason of any failure on the part of any party hereto or any maker, guarantor, endorser or other signatory of any document or any other person to perform such person’s obligations under any such document.  Except for amendments to this Agreement referred to below, and except for instructions given to the Agent by the Company, the Parent and the Holder relating to the Shares deposited with the Agent under this Agreement, the Agent shall not be obligated to recognize any agreement between any and all of the persons referred to herein, notwithstanding that references thereto may be made herein and whether or not it has knowledge thereof.

 

  

  

  

 

3.2           The Agent shall not be liable to the Company, the Parent or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and in the exercise of its own best judgment.  The Agent may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained), which is believed by the Agent to be genuine and to be signed or presented by the proper person or persons.  The Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement or any of the terms thereof, unless evidenced by a writing delivered to the Agent signed by the proper party or parties and, if the duties or rights of the Agent are affected, unless it shall give its prior written consent thereto.

 

3.3           The Agent shall not be responsible for the sufficiency or accuracy of the form of, or the execution, validity, value or genuineness of, any document or property received, held or delivered by it hereunder, or of any signature or endorsement thereon, or for any lack of endorsement thereon, or for any description therein; nor shall the Agent be responsible or liable to the other parties hereto or to anyone else in any respect on account of the identity, authority or rights of the persons executing or delivering or purporting to execute or deliver any document or property or this Agreement.  The Agent shall have no responsibility with respect to the use or application of any funds or other property paid or delivered by the Agent pursuant to the provisions hereof.

 

3.4           The Agent shall have the right to assume in the absence of written notice to the contrary from the proper person or persons that a fact or an event by reason of which an action would or might be taken by the Agent does not exist or has not occurred, without incurring liability to the other parties hereto or to anyone else for any action taken or omitted, or any action suffered by it to be taken or omitted, in good faith and in the exercise of its own best judgment, in reliance upon such assumption.

 

3.5           To the extent that the Agent becomes liable for the payment of taxes, including withholding taxes, in respect of income derived from the investment of funds held hereunder or any payment made hereunder, the Agent may pay such taxes.  The Agent shall be indemnified and held harmless against any liability for taxes and for any penalties or interest in respect of taxes, on such investment income or payments in the manner provided in Section 3.6.

 

  

  

  

 

3.6           The Agent will be indemnified and held harmless by the Company and the Parent from and against any and all expenses, including reasonable counsel fees and disbursements, or loss suffered by the Agent in connection with any action, suit or other proceeding involving any claim, or in connection with any claim or demand, which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Agent hereunder, the monies or other property held by it hereunder or any income earned from investment of such monies, except for the Escrow Agent’s gross negligence or misconduct.  Promptly after the receipt by the Agent or notice of any demand or claim or the commencement of any action, suit or proceeding, the Agent shall, if a claim in respect thereof is to be made against the Company or Parent, notify the Company or Parent thereof in writing, but the failure by the Agent to give such notice shall not relieve the Company or Parent from any liability which the Company or Parent may have to the Agent hereunder.

 

3.7           For the purposes hereof, the term “expense or loss” shall include all amounts paid or payable to satisfy any claim, demand or liability, or in settlement of any claim, demand, action, suit or proceeding settled with the express written consent of the Agent, and all costs and expenses, including, but not limited to, reasonable counsel fees and disbursements, paid or incurred in investigating or defending against any such claim, demand, action, suit or proceeding.

 

4.           Termination of Agreement and Resignation of Agent.

 

4.1           This Escrow Agreement shall terminate on the final disposition of the Shares held in escrow hereunder, provided that the rights of the Agent and the obligations of the other parties hereto under Sections 3 and 6 shall survive the termination hereof.

 

4.2           The Agent may resign at any time and be discharged from its duties as Agent hereunder by giving the Company, the Parent and the Holder at least 30 days notice thereof.  As soon as practicable after its resignation, the Agent shall turn over to a successor escrow agent appointed by the Company and the Parent all Shares held hereunder upon presentation of the document appointing the new escrow agent and its acceptance thereof.  If no new Agent is so appointed within the 60-day period following such notice of resignation, the Agent may deposit the aforesaid Shares with any court it deems appropriate.

 

5.           Form of Payments by Agent.  Any payments by the Agent to Holder or to persons other than the Company pursuant to the terms of this Agreement shall be made by the issuing of the Shares.

 

6.           Compensation of Agent.  For services rendered, the Agent shall receive as compensation $1,500.00, which shall be paid by the Company and the Holder at the time this Agreement is entered into.  The Agent shall also be entitled to reimbursement from the Company for all expenses paid or incurred by it in the administration of its duties hereunder, including, but not limited to, all counsel, advisors’ and Agents’ fees and disbursements and all reasonable taxes or other governmental charges.  It is anticipated that such disbursement shall not exceed $500.00 barring any unforeseen circumstances.

 

  

  

  

 

7.           Notices.  All notices, requests, demands and other communications provided for herein shall be in writing, shall be delivered by hand or by first-class mail, shall be deemed given when received and shall be addressed to the parties hereto at their respective addresses listed below or to such other persons or addresses as the relevant party shall designate as to itself from time to time in writing delivered in like manner.

	
  

	If to the Company:	Office Supply Line, Inc	
.

	
  

	
Attn: Eric Kotch

	
  

	
1710 First Avenue

	
  

	
New York, NY 10028

	
  

	
Tel:

	
  

	
Fax:

	
  

	With a copy to:	
Sichenzia Ross Friedman Ference Anslow LLP

	 

	
  

	
195 Route 9 South

	
  

	
Manalapan, NJ 07726

	
  

	
Attention:  Gregg E. Jaclin

	
  

	
Tel.: (732) 409-1212

	
  

	 	Fax: (732) 577-1188

	
  

	If to the Parent:	
Red Rock Pictures Holdings, Inc.

	 

	
  

	
Attn: Chief Executive Officer

	
  

	
1710 First Avenue

	
  

	
New York, NY 10028

	 	
Tel:

	
  

	
Fax:

	
  

	
If to the Agent:

	
Sichenzia Ross Friedman Ference Anslow LLP

	 	
195 Route 9 South

	 	
Manalapan, NJ 07726

	
  

	
Attention:  Gregg E. Jaclin

	 	
Tel.: (732) 409-1212

	 	
Fax: (732) 577-1188

	
  

	If to the Holder:	
Crisnic Fund, S.A

	 
	 	 	In care of Lexperts, SA	 

	 	
ConHotel Office Center

	
  

	
Office 5 Sabaa Norte

	
  

	
San Jose Costa rica

	
  

	
Tel:

	
  

	
Fax:

 

8.           Further Assurances:  From time to time on and after the date hereof, the Company shall deliver or cause to be delivered to the Agent such further documents and instruments and shall do and cause to be done such further acts as the Agent shall reasonably request (it being understood that the Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

 

  

  

  

 

9.           Consent to Service of Process.  Each of the Company, the Parent and the Holder hereby irrevocably consents to the jurisdiction of the courts of the State of New York and of any federal court located in such State in connection with any action, suit or other proceeding arising out of or relating to this Agreement or any action taken or omitted hereunder, and waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by certified or registered mail directed to each of the Company, the Parent and the Holder at its address for purposes of notices hereunder.

 

10.           Miscellaneous.

 

10.1           This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing such instrument to be drafted.  The terms “hereby”, “hereof”, “hereto”, “hereunder” and any similar terms, as used in this Agreement, refer to the Agreement in its entirety and not only to the particular portion of this Agreement where the term is used.  The word “person” shall mean any natural person, partnership, company, government and any other form of business or legal entity.  All words or terms used in this Agreement, regardless of the number or gender, in which they are used, shall be deemed to include any other number and any other gender as the context may require.  This Agreement shall not be admissible in evidence to construe the provisions of any prior agreement.

 

10.2           Succession and Assignment.  This Agreement and the rights and obligations hereunder of the Company may be assigned by the Company only to a successor to the Company’s entire business.  This Agreement and the rights and obligations hereunder of the Agent may be assigned by the Agent only to a successor to its entire business.  This Agreement shall be binding upon and inure to the benefit of each party’s respective successors, heirs and permitted assigns.  No other person shall acquire or have any rights under or by virtue of this Agreement.  This Agreement may not be changed orally or modified, amended or supplemented without an express written agreement executed by the Agent, the Company and the Holder.  This Agreement is intended to be for the sole benefit of the parties hereto, and (subject to the provisions of this Section 11.2) their respective successors, heirs and assigns, and none of the provisions of this Agreement are intended to be, nor shall they be construed to be, for the benefit of any third person.

 

10.3           Amendments and Waivers.  This Agreement may be amended only with the written consent of the Agent, the Company, the Parent  and the Holder.  No waiver of any right or remedy hereunder shall be valid unless the same shall be in writing and signed by the party giving such waiver.  No waiver by any party with respect to any condition, default or breach of covenant hereunder shall be deemed to extend to any prior or subsequent condition, default or breach of covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

  

  

  

 

10.4           Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.  The representations and warranties contained in this Agreement shall survive the execution and delivery hereof and any investigations made by any party.  The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect any of the terms hereof.

 

11.           Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signature of all of the parties reflected hereon as the signatures.

[Signatures to Follow on Next Page]

 

  

  

  

 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the day and year first above written.

 

 

	 	SICHENZIA ROSS FRIEDMAN FERENCE ANSLOW LLP	 
	 	 	 
	 	 	 	 
	 	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

	 	OFFICE SUPPLY LINE, INC.	 
	 	 	 
	 	 	 	 
	 	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

	 	CRISNIC FUND, S.A.	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

	 	RED ROCK PICTURES HOLDINGS, INC.	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title

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