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Escrow Agreement

 

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Title:

Escrow Agreement

Entities:

OmniCorder Technologies, Inc.

Date:

2006

Size:

Preview shows 4KB of 24KB total

Price:

$42

ID:

#2504435

 

 

► Legal ► Escrow Agreements
► Services ► Business Services

 

 

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                                ESCROW AGREEMENT


ESCROW AGREEMENT (the "Escrow Agreement") made as of the 12th day of
September, 2006, by and among Advanced Biophotonics, Inc., a Delaware
corporation (the "Company"), the Purchasers listed on Schedule A attached hereto
(each a "Purchaser" and collectively, the "Purchasers") and Owen Naccarato,
Esquire (the "Escrow Agent").

W I T N E S S E T H:

WHEREAS, the Company desires to raise capital in order to finance the
growth of its business operations and for other general corporate purposes;

WHEREAS, the Company and the Purchasers have agreed that, in order to
raise capital, the Company shall issue and sell to the Purchasers debentures
(the "Debentures"), convertible into shares of the Company's common stock, par
value $.001 per share (the "Common Stock"), and Warrants to purchase shares of
Common Stock (the "Warrants") for an aggregate purchase price of $775,000;

WHEREAS, the Company has entered into a Securities Purchase Agreement
dated as of September 12, 2006 (the "Purchase Agreement") with the Purchasers;

WHEREAS, the parties have agreed that all funds shall be paid into escrow
for the benefit of the Company and the Escrow Agent has agreed to receive, hold
and pay such funds, upon the terms and subject to the conditions hereinafter set
forth.

NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and legal sufficiency
of which is hereby acknowledged, the parties to this Escrow Agreement hereby
agree as follows:

1. Defined Terms. Capitalized terms used and not otherwise defined herein
shall have the meanings respectively assigned to them in the Purchase Agreement.

2. Escrow of Funds. On or prior to the Closing Date, the following shall
occur: the Purchasers shall remit by wire transfer $500,000 of the Purchase
Price to the Escrow Agent pursuant to this Escrow Agreement (the "Escrow
Amount"). The Escrow Agent shall hold the Escrow Amount only in accordance with
the terms and conditions of this Escrow Agreement.

3. Investment of Funds. The Escrow Agent shall invest the monies in the
Escrow Amount in an interest bearing bank account with, or certificates of
deposit or time deposits with, maturities of no more than thirty (30) days
issued by, a domestic commercial bank or such other bank or other financial
institution as it normally holds such funds.

4. Release of Funds. The Escrow Agent shall release the Escrow Amount in
accordance with the disbursement instructions on Schedule B attached hereto.

5. Further Assurances. The Company and the Purchasers agree to do such
further acts and to execute and deliver such statements, assignments,
agreements, instruments and other documents as the Escrow Agent from time to
time reasonably may request in connection with the administration, maintenance,
enforcement or adjudication of this Escrow Agreement in order (a) to give the
Escrow Agent confirmation and assurance of the Escrow Agent's rights, powers,
privileges, remedies and interests under this Escrow Agreement and applicable
law, (b) to better enable the Escrow Agent to exercise any such right, power,
privilege, remedy or interest, or (c) to otherwise effectuate the purpose and
the terms and provisions of this Escrow Agreement, each in such form and
substance as may be reasonably acceptable to the Escrow Agent.


 

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