Exhibit
10.2
COLLATERAL ASSIGNMENT
OF
ESCROW AGREEMENT AND ESCROW
FUNDS
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America West
Resources, Inc. , a
Nevada corporation
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Denly ACI
Partners, Ltd. , a Texas
limited partnership (the " Partnership "), and Dennis C.
von Waaden, Co-Trustee ofThe von Waaden 2004 Revocable Trust and
Sally A. von Waaden, Co-Trustee ofThe von Waaden 2004 Revocable
Trust (the " Trust ")
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Those two
certain Secured Promissory Notes dated October 7, 2008, in the
aggregate amounts of $2,800,000.00 made payable to the order of
Lenders ($1,866,666.66 to the Partnership and $933,333.33 to the
Trust) from Debtor, as the same may be renewed, extended, modified
or rearranged from time to time.
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LOAN
AGREEMENT :
The Loan Agreement dated
October 9, 2008, executed by Debtor and Lenders, as the same may be
amended, modified, restated or replaced from time to
time.
COLLATERAL:
All of Debtor
=
s right, title, interest, claim and
demand (but not Debtor = s duties or obligations) in and to the following
described contracts and all payments (direct or indirect, whether
in cash or otherwise), distributions, and rights to payment of
every kind under and by virtue of (i) that certain Escrow and
Account Control Agreement dated as of October 9, 2008, by and among
the Debtor; and Wells Fargo Bank, National Association (as
Escrow Agent), as now or hereafter amended or modified (the “
Escrow Agreement ”), and (ii) all accounts and general
intangibles consisting of, relating to or otherwise arising out of
the Escrow Agreement and Debtor’s right, title, interest, or
claim (but not Debtor’s duties or obligations) in and to the
Escrow Property (as defined therein) and all payments,
distributions, and rights to payment of every kind, under and by
virtue of the Escrow Agreement.
PROCEEDS:
Any and all proceeds of
the Collateral, as the term “proceeds” is defined in
the Chapter 9 of the Texas Business and Commerce Code as now or
hereafter adopted or amended (the " Texas UCC "), including
without limitation all accounts, general intangibles, instruments,
documents, moneys, insurance, chattel paper, income and other
property, benefits or rights of whatever kind or nature arising
from, attributable to, or accruing from any and all sales, leases,
or other dispositions of any or all of the Collateral.
1.
Agreement . Subject to the terms and conditions of
this Assignment, in consideration of the sum of Ten and No/100
Dollars ($10.00) and other good and valuable consideration, the
receipt and sufficiency of which Debtor acknowledges, Debtor hereby
grants, assigns, transfers, and conveys, to Lenders, their
successors and assigns, and grants to Lenders, their successors and
assigns as security for the Obligations (as defined below) the
Escrow Agreement and all other Collateral, and Debtor hereby grants
to Lenders, as security for the Obligations, a security interest in
and to the Collateral and Proceeds and all powers, benefits, right,
title, and interest accruing and to accrue, and all revenues,
moneys, fees, commissions, profits, payments, and other sums
payable and to be payable to Debtor and to which Debtor is or may
hereafter become entitled to by virtue of the
Collateral.
2.
Secured Obligations . This security
interest is granted to Lenders to secure the following (the “
Obligations ”):
(a)
Payment of the principal sum, interest and indebtedness evidenced
by the Notes;
(b)
Payment of all other sums with interest thereon becoming due and
payable to Lenders under the provisions of this Assignment or the
Notes; and
(c)
Performance and discharge of each and every obligation, covenant
and agreement of Debtor contained in this Assignment, the Notes,
the Loan Agreement, as amended from time to time, and any and all
other Loan Documents (as that term is defined in the Loan
Agreement).
3.
Debtor’s Representations and Warranties
. Debtor represents and warrants to Lenders and
covenants as follows:
(a)
The execution, delivery and performance of this Assignment does not
require the consent or approval of any governmental body or other
regulatory authority and are not in contravention of, or in
conflict with, any law or regulation or any term or provision of
the Escrow Agreement. This Assignment is a valid, binding and
legally enforceable obligation of Debtor in accordance with its
terms except only as enforceability may be affected or limited by
creditors’ rights, legislation and court decisions of general
application.
(b)
The execution and delivery of this Assignment is not, and the
performance of this Assignment will not be, in contravention of, or
in conflict with, any agreement, indenture or undertaking to which
Debtor is a party or by which Debtor or any of its property is or
may be bound or affected, and do not and will not cause any
security interest, lien or other encumbrance to be created or
imposed or accelerated upon or in connection with any such
property.
(c)
Except for Lenders’ security interest therein (which Debtor
has authority to grant): (i) Debtor has not previously
assigned, transferred, conveyed, sold, pledged or hypothecated any
part of the Collateral; (ii) Debtor is, and as to any Collateral
acquired after the date hereof, Debtor shall and will be the owner
of all the Collateral, free from any liens, security interests,
encumbrances or other right, title or interest of any other person,
firm or corporation; and (iii) Debtor shall defend the Collateral
against all claims and demands of all persons at any time claiming
the same or interest therein adverse to Lenders.
(d)
No setoff or counterclaim to any money due or to become due to
Debtor by virtue of the Collateral exists as of the date of this
Assignment, and Debtor has not made any agreement pursuant to which
any deduction or discount may be claimed on the Collateral, except
as embodied in the express terms of the Escrow Agreement;
and
(e)
There is no financing statement (or other evidence of lien or
security interest) now on file in any public office covering any of
the Collateral in which Debtor is named or signs as Debtor, and so
long as any amount remains unpaid on the Obligations, Debtor will
not execute and there will not be on file in any public office any
such financing statement or statements (or other evidence of lien
or security interest) except the Financing Statement filed or to be
filed in respect of and for the security interest to Lenders
granted or provided for in this Assignment or any other security
agreement or security agreements by and between Debtor and
Lenders.
(f)
The Escrow Agreement is presently in full force and effect and
binding upon all the parties thereto. No defaults or breaches have
occurred in the Escrow Agreement, including but not limited to such
defaults or breaches which would result in the reduction or
termination of Debtor’s interest or rights to payments and
proceeds under the Escrow Agreement.
4.
Debtor’s Agreements . Debtor agrees
as follows:
(a)
To do, make, procure, execute and deliver all acts, things,
writings and assurances as Lenders may at any time reasonably
request, to protect, assure or enforce its interests, rights and
remedies pursuant to this Assignment.
(b)
At any time while a Default exists or after the occurrence of an
Event of Default (as those terms are defined in , upon
Lenders’ request, to notify the Escrow Agent in writing of
the fact of this Assignment and direct such parties to make payment
direct to Lenders of any monies, accounts and general intangibles
included in the Collateral; provided that the foregoing shall in no
manner impair Lenders’ right to notify such obligors as
elsewhere herein provided.
(d)
At any time while a Default exists or after the occurrence of any
Event of Default, to apply all proceeds of the Collateral,
including without limitation the Proceeds received by Lenders, on
the Obligations, in any order of preference which Lenders, in their
discretion, choose, whether or not the Obligations shall have by
their terms matured, such application to be made at such intervals
as Lenders may determine.
(e)
To authorize, and Debtor does hereby authorize, Lenders to contact
directly any party to the Escrow Agreement to verify information
furnished by Debtor.
(f)
To at all times perform or cause to be performed each and every
obligation and duty imposed upon Debtor by the Escrow Agreement and
applicable law, and to not do any act or not omit to do any act
which would constitute a breach of, default under or noncompliance
with the Escrow Agreement and applicable law.
(g)
Not to execute any amendment or modification of the Escrow
Agreeme
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