RESTRICTED ACCOUNT AGREEMENT,Account Control Agreement |
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NORTH FORK BANK | DATALOGIC INTERNATIONAL, INC. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
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Search Account Control Agreement by:
Exhibit 10.9
RESTRICTED ACCOUNT AGREEMENT
This Restricted Account Agreement (this "Agreement") is entered into this
25th day of June 2004, by and among NORTH FORK BANK, a New York banking
corporation with offices at 275 Broadhollow Road, Melville, New York 11747
(together with its successors and assigns, the "Bank"), DATALOGIC
INTERNATIONAL, INC., a Delaware corporation with offices at 18301 Von Karman,
Suite 250, Irvine, California 92612 (together with its successors and assigns,
the "Company"), and LAURUS MASTER FUND, LTD., a Cayman Islands corporation
with offices at 825 Third Avenue, 14th Floor, New York, New York 10022
(together with its successors and assigns, "Laurus"). Unless otherwise
defined herein, capitalized terms used herein shall have the meaning provided
such terms in the Purchase Agreement referred to below.
WHEREAS, Laurus has provided financing to the Company, which financing is
evidenced by a Securities Purchase Agreement (as amended, modified or
supplemented from time to time, the "Purchase Agreement") and the Related
Agreements referred to therein;
WHEREAS, the Company and Laurus have retained the Bank to provide certain
services with respect to the Restricted Account (as defined below); and
WHEREAS, the Company and Laurus have agreed that an amount of cash equal
to $1,250,000 shall be deposited by Laurus on behalf of the Company by wire
transfer of immediately available funds into the Restricted Account, which
cash shall be held by the Bank for the benefit of Laurus, as security for the
Company's and its Subsidiaries' obligations under the Purchase Agreement and
the Related Agreements. For the purposes of this Agreement, the "Restricted
Account" shall mean that certain deposit account (as defined in Section 9-102
of the Uniform Commercial Code as in effect in the State of New York on the
date hereof) described on Exhibit B hereto, which Restricted Account shall be
maintained at the Bank and shall be in the sole dominion and control of
Laurus;
NOW THEREFORE, in consideration of the mutual promises contained herein
and for other good and valuable consideration the sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1. The Bank is hereby authorized to accept for deposit into the
Restricted Account the sum of $1,250,000. The Bank hereby agrees to hold any
and all monies, and other amounts from time to time on deposit and/or held in
the Restricted Account for the benefit of the Laurus and shall not release any
monies held in the Restricted Account until such time as the Bank shall have
received a notice from Laurus substantially in the form attached hereto as
Exhibit A (a "Release Notice"). Following the receipt of a Release Notice
from Laurus, the Bank agrees to promptly disburse the amount of cash referred
to in such Release Notice to such account as Laurus shall determine in its
sole discretion. The Bank hereby agrees that it will only comply with written
instructions originated by Laurus directing disposition of funds in the
Restricted Account. The Company hereby irrevocably authorizes the Bank to
comply with any and all instructions given to the Bank by Laurus with respect
to the Restricted Account without further consent by the Company. The Bank,
the Company and Laurus agree that the Restricted Account is in Laurus' sole
dominion and control.
2. Each of the Company, Laurus and the Bank hereby agrees that the
Restricted Account shall not be closed, and the account name and account
number in respect thereof shall not be changed, in any case, without the
consent of the Laurus, except as specifically provided for in Section 9 below.
3. The Bank hereby subordinates any claims and security interests it
may have against, or with res






