Exhibit
10.13
CONTROL ACCOUNT
AGREEMENT
(No Access by Borrower)
THIS CONTROL ACCOUNT AGREEMENT ("Agreement") is
made effective as of the 21st day of April, 2009 by and among Amber
Ready, Inc., a Nevada corporation having a principal place of
business at 101 Roundhill Drive, 2 nd Floor,
Rockaway, New Jersey 07866 (" Borrower "), Hudson Asset
Partners, LLC, a Delaware limited liability company having a
principal place of business at 14151 Magnolia Cove Road,
Jacksonville, Florida 32224 (" Collateral Agent
") and SIGNATURE BANK, a New York commercial bank, having a
principal place of business at 950 Third Avenue, New York, New York
10022 (" Depository ").
BACKGROUND
A. From
time to time on and after the date hereof, Borrower may issue up to
$12,000,000 of its 18% secured convertible three year promissory
notes (as each may be at any time amended, extended, restated,
renewed or modified, each a “Convertible Note,” and
collectively, the “Convertible Notes”), which are
convertible into Units upon the terms set forth in that certain
Confidential Private Placement Memorandum, dated March 19, 2009,
delivered by the Borrower to the holders of the Convertible Notes
(the “Holders”).
B. Pursuant
to the Subscription Agreement in the form attached to the
Memorandum, each Holder has appointed and authorized the Collateral
Agent to act as collateral agent under this Agreement.
C. Pursuant
to a Security Agreement by and between Borrower and the Collateral
Agent, Borrower has granted to the Collateral Agent, for the
benefit of the Holders, inter alia, a security interest in all
dividends, cash, securities, investment property, financial assets
and other property issued, paid, declared and/or distributed to
Borrower and all rights with respect to the Deposit Account (as
hereinafter defined) and all funds therein
D. It
is a condition precedent to the closing of the issuance and sale of
the Convertible Notes that Borrower shall have entered into this
Agreement for the benefit of the Holders.
E. Borrower has
opened a Deposit Account (as hereinafter defined) with
Depository.
F. The
parties are entering into this Agreement to set forth their rights
and obligations with respect to the Deposit Account.
NOW, THEREFORE, intending to be legally bound
hereby, the parties hereto agree as follows:
1. Defined
Terms . Capitalized terms used in this Agreement and
not specifically defined in this Agreement have the meaning
provided in the Security Agreement (as defined
below). The following terms have the respective meanings
set forth below.
(a) “
Business Day ” means any day other than a Saturday,
Sunday or any day on which Federal or state chartered banks in the
State of New York or in the state where the Deposit Account is
located are permitted to be closed for legal holidays or by
government directive.
(b) “ Deposit
Account ” means the non-interest bearing
demand deposit account that Borrower has opened with Depository in
the name of the Borrower , designated as Account Number
_____________ , together with all replacements, substitutions,
increases and decreases of such account and all items from time to
time on deposit therein.
(c) “
Security Agreement ” means the security agreement
between Borrower and Collateral Agent, of even date
herewith.
2. Name of
Account . The Deposit Account will be titled in the
name of the Borrower.
3. Control
. (a)Notwithstanding any separate agreement that
Borrower may have with Collateral Agent or Depository, Collateral
Agent shall be entitled and is hereby irrevocably authorized by
Borrower, for purposes of this Agreement, at any time, to give
Depository instructions as to the withdrawal or disposition of any
funds from time to time credited to the Deposit Account, or as to
any other matters relating to the Deposit Account, without
Borrower's further consent. Depository shall
comply with any such instructions without any further consent from
Borrower. Depository shall be fully entitled to rely
upon such instructions from Collateral Agent even if such
instructions are contrary to any instructions or demands that
Borrower may give to Depository. The Depository will not
be liable to Borrower for complying with Collateral Agent’s
instructions relating to the Deposit Account.
(b) Borrower
shall not be entitled to give to the Depository any instruction
pertaining to or concerning the Deposit Account or any funds in or
credited to the Deposit Account, except with the prior written
consent of Collateral Agent. The Depository shall not
comply with any instruction given by Borrower pertaining to or
concerning the Deposit Account or any funds in or credited to the
Deposit Account, except with the prior written consent of
Collateral Agent.
(c) The
Depository agrees to use reasonable efforts to promptly notify the
Collateral Agent and the Borrower in the event it receives any
written notice of any lien, encumbrance or adverse claim against
the Deposit Account or any of the funds therein, unless prohibited
from so doing by applicable law, judicial order or
decree.
4. Funds in Deposit Account as Security for
Secured Obligations; Grant of Security Interest . As
security for full payment of the Secured Obligations and timely
performance of Borrower’s obligations, the
agreements entered into by the Borrower in connection with the
issuance and sale of the Convertible Notes and this Agreement,
Borrower hereby pledges, transfers, assigns and sets over to
Collateral Agent, and grants to Collateral Agent, for the benefit
of the Holders, a continuing security interest in and to, the
Deposit Account, all money deposited therein from time to time, and
all profits and proceeds thereof. Borrower shall
execute, acknowledge, deliver, file or do, at its sole expense, all
other acts, assignments, notices, agreements or other instruments
as Collateral Agent may reasonably require in order to perfect the
foregoing security interest, pledge and assignment or otherwise to
fully effectuate the rights granted to Collateral Agent by this
section. This Agreement constitutes a “security
agreement” and the Deposit Account constitutes a
“deposit account” within the meaning of Article 9 of
the UCC. In addition to all other rights and remedies
provided for herein or otherwise available at law or in equity,
Collateral Agent shall have all rights of a secured party under
Article 9 of the UCC with respect to the Deposit Account and funds
deposited therein. Borrower and Depository acknowledge and
understand that all funds deposited in the Deposit Account are held
in Borrower’s name for the benefit of Collateral Agent and
Collateral Agent shall have sole right to access and withdraw such
funds. Borrower shall have no right of access to and
withdrawal from the Deposit Account. Borrower shall not assign or
otherwise encumber the Deposit Account or any funds
therein.
5. No Notice of
Other Assignment . Depository acknowledges and
understands that it has received no notice of any other assignment
or pledge of funds at any time on deposit in the Deposit Account
and it shall promptly notify Collateral Agent in the event that it
receives notice of any other assignment or pledge
thereof.
6. No Lien
. Depository hereby acknowledges that it has no lien
against or security interest in the Deposit Account or any funds
therein. Depository hereby waives any right of offset,
deduction, banker's lien or other claim against any and all
existing or future funds in the Deposit Account, except that the
Depository may, however, from time to time debit the Deposit
Account for (i) any of Depository’s customary charges
relating to the Deposit Account, (ii) the reversal of any
provisional credits to the Deposit Account for items returned
unpaid or (iii) the reversal of any amounts credited to the Deposit
Account in error. If the amount of available and collected funds in
the Deposit Account is insufficient to fully reimburse Depository
for any of the above amounts, Borrower shall pay such deficiency to
Depository.
7. Fees
. Borrower shall pay upon demand all taxes, fees and
charges due or owing with in connection with the maintenance of the
Deposit Account and this Agreement and the Depository’s
services hereunder. Borrower acknowledges and agrees
that it shall be, and at all times remains, liable to Depository
and Collateral Agent for all fees, charges, costs and expenses in
connection with the Deposit Account, this Agreement and the
enforcement hereof, including, without limitation,
the reasonable fees and expenses of legal counsel to
Depository and Collateral Agent as needed to enforce performance of
this Agreement. In the event that Borrower fails to pay
for the foregoing fees, charges, costs and expenses in connection
with the Deposit Account, Depository and Collateral
Agent may deduct their respective fees, charges, costs
and expenses from the Deposit Account. The standard fees
of the Depository currently in effect are set forth in the
Depository’s Business Account Fee Schedule, as amended from
time to time, and in Schedule 1 attached hereto. Collateral Agent
shall not be liable to the Depository for any such taxes, fees or
charges.
8.
Notices . Each notice or other communication
required or deemed desirable hereunder (other than statements and
information and documentation routinely provided by Depository with
respect to the Deposit Account) shall be in writing, shall be sent
by messenger or by registered or certified mail or by fax, shall be
effective when received and shall be sent to the relevant party at
its address appearing above or on the
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