ESCROW AGREEMENT
This Escrow Agreement (the "Agreement") is made and entered into by and
among The XxXxxx Law Firm ("MLF), Attorneys at Law, Fort Worth, Texas, and
XxxxXxxxx.xxx, Inc. ("GHI"), a Texas corporation, on behalf of all subscribers
(the "Investors") to the initial public offering (the "Offering") of common
stock by GHI, pursuant to a Registration Statement filed under the Securities
Act of 1933 on Form SB-1.
I
RECITALS
1.1 Purchase of Shares. The Investors, at a price of $1.00 per share,
desire to individually purchase from GHI, an aggregate of between 50,000 shares
and 500,000 shares (the "Shares") of the common stock of GHI pursuant to the
terms of the Offering. However, there is no certainty that any Shares may be
purchased under the Offering.
1.2 Purpose Hereof. In order to facilitate the purchase of the Shares,
GHI shall deposit all funds received by it from the sale of the Shares to
Investors (the "Escrow Funds") with MLF, and MLF shall hold the Escrow Funds and
not release them to GHI until such time as is described below.
II
ESCROW PROVISIONS
2.1 Appointment of MLF. MLF is hereby appointed as Escrow Agent to
receive, hold, and distribute all funds deposited by the Investors for Shares,
all as hereinafter provided.
2.2 Deposit and Receipt of Funds. MLF shall deposit all funds for
purchase of the Shares in its Attorney Trust Account (the "Escrow Account").
Concurrently with the delivery of the deposits by each Investor, MLF shall give
each Investor and GHI a receipt for the funds received by MLF.
2.3 Disbursement of Escrow Funds. Following deposit into the Escrow
Account of funds totaling $50,000.00, MLF shall disburse all such funds to GHI
and shall notify all Investors that placed Escrow Funds with MLF that such
disbursement has taken place.
2.4 MLF's Responsibility. MLF's sole responsibility under this
Agreement shall be for the recording of deposits by the Investors, the
safekeeping of the Escrow Funds, and the disbursement thereof in accordance with
Paragraph 2.3, and MLF shall not be required to take any other action with
reference to any matters which might arise in connection with the Escrow Funds
or this Agreement. MLF shall not be liable to GHI or any Investor for anything
which MLF may do or refrain from doing in connection herewith, so long as MLF is
acting in good faith in an attempt to perform its duties under this Agreement or
unless Xxxx is guilty of gross negligence or willful
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misconduct. MLF is not a party to, nor is it bound by, nor shall it give
consideration to the terms or provisions of, even though he may have knowledge
of, (i) any agreement or undertaking of any agreement with any other party or
parties, except for this Agreement, (ii) any agreement or undertaking which may
be evidenced or disclosed by this Agreement, and (iii) any other agreements
regarding the Escrow Funds that may now or in the future be deposited with MLF
in connection with this Agreement. MLF has no duty to determine or inquire into
any happening or occurrence or any performance or failure of performance of the
Investors or GHI or any other parties with respect to agreements or arrangements
with each other or with any other party or parties.
2.5 Indemnity to MLF. GHI agrees to indemnify and hold MLF harmless
against and from any and all costs, expenses, claims, losses, liabilities, and
damages (including reasonable attorneys' fees) that may arise out of or in
connection with MLF's acting as Escrow Agent under the terms of this Agreement,
except in those instances where MLF has been guilty of gross negligence or
willful misconduct.
2.6 Return of Escrow Funds. If $50,000.00 is not deposited in the
Escrow Account by the Investors on or before 180 days after the effective date
of the offering, MLF shall promptly return to each Investor from the Escrow
Funds, an amount equal to the amount deposited by such Investor.
2.7 Effective Date and Termination. This Escrow Agreement shall become
effective on the date the first deposit is made by an Investor into Escrow. All
of the provisions of this Agreement shall terminate 180 days after the effective
date of the offering by refunding all funds in escrow to the Investors, or by
the disbursement of all Escrow Funds as herein set out. If not so terminated,
MLF at any time after such date may disburse the allocable portion of the Escrow
Funds to each respective Investor, close his records, and withdraw all of MLF's
liability and obligations in connection with the Escrow Funds and this Agreement
shall terminate.
III
MISCELLANEOUS
3.1 Multiple Counterparts. It is intended that this Agreement shall be
executed in multiple counterparts, each of which, when so executed, shall be
considered an original, but all of which shall together constitute one and the
same instrument.
3.2 Entire Agreement. This instrument evidences the entire agreement
between MLF and GHI with respect to the purchase of the Shares by Investors
3.3 Controlling Law. The terms of this Agreement shall be governed by
and construed in accordance with the laws of the State of Texas.
3.4 Notices. Any notice, request, instruction, or other instrument to
be given or served hereunder upon any party shall be deemed given or served if
in writing and delivered personally or sent by United States Mail, postage
prepaid, certified, return receipt requested, to the respective party
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XxxxXxxxx.xxx, Inc.- MLF -Escrow Agrmt (C-17)
or parties at the following addresses:
a) If to MLF: The XxXxxx Law Firm
0000 Xxxxxx Xxxxx
Xxxx Xxxxx, Xxxxx 00000
Attn: Xxxxxx X. XxXxxx
b) If to GHI: XxxxXxxxx.xxx, Inc.
000 Xxxxx Xxxxxx
Xxxxx, Xxxxx 00000
Attn: Xxxxxxx X. Xxxxx
EXECUTED to be effective as of the 1st day of February, 2001.
THE XxXXXX LAW FIRM
By:________________________________
Xxxxxx X. XxXxxx
XXXXXXXXX.XXX, INC.
a Texas corporation
By:________________________________
Xxxxxxx X. Xxxxx, President
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