Collateral for the Note. (a) The Note will be secured by 300,000 shares of restricted common stock of Great American Family Parks, Inc., owned by ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇. (b) A total of 270,000 shares of said stock collateral for the Note will be provided to Seller at closing by ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ by his delivery at closing to Seller Great American Family Parks, Inc., stock certificate No. ____________ for 270,000 shares endorsed by him in blank, with his signature medallion bank guaranteed. (c) A total of 30,000 shares of said stock collateral for the Note will be provided to Seller within two (2) weeks after closing by ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ by his delivery during that time to Seller a stock certificate for 30,000 shares duly endorsed by him in blank, with his signature medallion bank guaranteed. (d) Said stock certificates will each be delivered with an executed stock power in the form of Exhibit “C” hereto. (e) Seller may at any time during the term of the Note sell the stock to pay the Note, except that Seller may not sell said stock if Buyer or ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ give Seller ten (10) days notice that the Note will be paid in cash and said payment is duly made. If Seller elects to sell said stock, then, in that event, the proceeds from the sale of the stock shall be deemed to pay the Note in full, and Seller may retain all of said proceeds, regardless of the amount of the proceeds received from the sale.
Appears in 2 contracts
Sources: Asset Purchase Agreement, Asset Purchase Agreement (Great American Family Parks Inc)