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Escrow Agreement

 

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Title:

Escrow Agreement

Entities:

Nine Mile Software, Inc.

Date:

2007

Size:

Preview shows 5KB of 20KB total

Price:

$35

ID:

#2867084

 

 

► Legal ► Escrow Agreements

 

 

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                                ESCROW AGREEMENT


This ESCROW AGREEMENT (the "Agreement") dated as of May 9th, 2007 is made
by and between, NINE MILE SOFTWARE, INC., a Nevada corporation (the "Company")
and ESCROW SPECIALISTS, INC., a Utah corporation (the "Escrow Agent"). The
"Escrow Agent," and the "Company," may also be hereinafter referred to as the
"Parties."

RECITALS

WHEREAS, the Company proposes to issue up to 714,290 shares of its common
stock, par value $0.001 per share (the "Common Shares"), for the aggregate
proceeds of $500,003 (the "Maximum Amount"), on a "best effort all or none"
basis up to the 214,290 shares for the aggregate proceeds of $150,003 (the
"Minimum Offering"), and on a "best efforts" basis thereafter up to the Maximum
Offering, at the offering price of $0.70 per Common Share (the "Offering").

WHEREAS, the Company desires to establish an escrow account with the Escrow
Agent into which certain monies will be deposited and held in escrow until a
minimum of $150,003 in Subscriptions has been raised in connection with that
certain Prospectus and Registration Statement on Form SB-2 dated May ___, 2007
and those certain "Subscription Agreement" in connection with the offering
(collectively, the "Offering Documents") by individuals or entities desiring to
purchase Common Shares ("Subscribers"); and Escrow Specialists, Inc. has agreed
to act as Escrow Agent on behalf of the Company on the terms and conditions set
forth in this Agreement;

NOW, THEREFORE, the Parties agree as follows:

1. Appointment of Escrow Agent. The Company hereby appoints the Escrow
Agent to act as the Company's escrow agent and custodian for the purposes of
this Agreement and the Escrow Agent accepts such appointment upon the terms and
subject to the conditions set forth in this Agreement.

2. Establishment of Escrow Account. The Escrow Agent shall, prior to the
effective date of the Offering, cause to be opened a fully segregated, escrow
account for the benefit of the Company (the "Escrow Account") for the purpose of
holding in trust all proceeds from the Offering on behalf of the Company and the
Subscribers. All checks, wires, drafts or money orders for payment of the
proceeds shall be made payable to "Escrow Specialists - Nine Mile Software,
Inc., Escrow Account." Checks, wires, drafts or money orders may come in with
unintentional nominal variations on this name, which may be deemed acceptable at
the discretion of the Escrow Agent.

3. Deposits. The Company will deliver to the Escrow Agent all checks,
drafts and money orders ("Subscription Payments") received by the Company from
the Subscribers in connection with the Offering. All checks, wires, drafts or
money orders for payment of the Proceeds will be delivered immediately to the
Escrow Agent who will deposit all such funds in a non-interest-bearing account,
which is FDIC insured "to the fullest extent of the law." The Company will keep
full and proper records (the "Records") of the names of subscribers, the number
of Common Shares purchased and amount of Subscription Payments paid by each
Subscriber.

4. Rejection of Subscriptions. Since any subscriptions shall relate to the
Offering pursuant to Offering Documents, it will be presumed that all
subscriptions received by the Escrow Agent will be acceptable to the Company.
Notwithstanding the foregoing, the terms of the Offering provide that any
subscription may be accepted or rejected in whole or in part by the Company. The
Escrow Agent shall furnish to the Company, at least once a week, a list
containing the names and addresses of Subscribers and the number of shares of
Common Stock subscribed for by each Subscriber. With respect to each
subscription which is rejected, the Company will notify the Escrow Agent of such
rejection in writing, and upon receipt of such notification, the Escrow Agent
will, within five business days, assuming the Subscriber's funds have cleared,
issue a check in the amount of the rejected Subscriber's subscription to the
rejected Subscriber.

-1-
{PAGE}

5. Termination Date. For purposes of this Agreement, the "Termination Date"
will be the earliest to occur of either (I) the satisfaction of the Minimum
Amount and disbursement of funds as set forth in Section 6 below; or (ii) 90
business days from the effective date of the Company's registration statement on

 

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