Exhibit 10.31


 





THIS
ESCROW AGREEMENT (this “Agreement”) is made this ___ day of ____ 2015 by and among Ominto, Inc. (the “Issuer”),
Chardan Capital Markets, LLC as placement agent, whose name and address appears on the Information Sheet (as defined herein) attached
to this Agreement and Olde Monmouth Stock Transfer Co., (the “Escrow Agent”).


 


W
I T N E S S E T H:


 


WHEREAS,
the Issuer has filed with the Securities and Exchange Commission (the “Commission”) a Registration Statement No ______
(the “Registration Statement”) covering a proposed public offering of its securities as described on the Information
Sheet (the "Securities");


  


WHEREAS
the Issuer and the Placement Agent propose to establish an Escrow Account (the “Escrow Account”), to which
subscription monies which are received by the Escrow Agent from the Placement Agent in connection with such public offering are
to be credited, and the Escrow Agent is willing to establish the Escrow Account and the terms are subject to the conditions hereinafter
set forth;


 


WHEREAS,
the Escrow Agent has an agreement with  Two River Community Bank to establish a special Bank Account (the “Bank
Account”) into which the subscription monies, which are received by the Escrow Agent from the Placement Agent and
credited to the Escrow Account, are to be deposited;


 


NOW,
THEREFORE in consideration of the premises and mutual covenants herein contained, the parties hereto hereby agree as follows:


 


	1	Information
    Sheet. Each capitalized term not otherwise defined in this Agreement shall have the meaning set forth for such term
    on the information sheet which is attached to this Agreement and is incorporated by reference herein and made a pact hereof
    (the “Information Sheet”).
	 	 
	2	Establishment
    of the Bank Account. 
	 	 
	2.1	The
    Escrow Agent shall establish a non-interest bank account at the branch of Two River Community Bank   selected by the Escrow
    Agent, and bearing     the designation set forth on the Information Sheet (heretofore defined as the “Bank
    Account”). The purpose of     the Bank Account is for (a) the deposit of all subscription monies (checks, or wire
    transfers) which are received by     the Placement Agent from prospective purchasers of the Securities and are delivered by
    the Placement Agent to the Escrow Agent,     (b) the holding of amounts of subscription monies which are collected
    through the banking system, and (c) the disbursement     of collected funds, all as described herein.
	 	 
	2.2	On
    or before the date of the initial deposit in the Bank Account pursuant to this Agreement, the Placement Agent shall
    notify the Escrow Agent in writing of the Effective Date of the Registration Statement (the “Effective Date”),
    and the Escrow Agent shall not be required to accept any amounts for credit to the Escrow Account or for deposit in the Bank
    Account prior to its receipt of such notification.



 






    


     

    

 


	2.3	The
    Offering Period, which shall be deemed to commence no sooner than the Effective Date, shall consist of the number of calendar
    days or business days set forth on the Information Sheet. The Offering Period shall be extended by an Extension Period only
    if the Escrow Agent shall have received written notice thereof at least two (2) business days prior to the expiration
    of the Offering Period. The Extension Period, which shall be deemed to commence on the next calendar day following the expiration
    of the Offering Period, shall consist of the number of calendar days or business days set forth on the Information Sheet.
    The last day of the Offering Period, or the last day of the Extension Period (if the Escrow Agent has received written notice
    thereof as hereinabove provided), is referred to herein as the “Termination Date”. Except as provided in
    Section 4.3 hereof, after the Termination Date the Placement Agent shall not deposit, and the Escrow Agent shall not
    accept, any additional amounts representing payments by prospective purchasers.
	 	 
	3	Deposits
    to the Bank Account. 
	 	 
	3.1	The
    Placement Agent shall promptly deliver to the Escrow Agent all monies in the form of checks or wire transfers which it receives
    from prospective purchasers of the Securities by the end of the next business day following receipt where internal supervisory
    review is conducted at the same location at which subscription documents and monies are received.  Upon the Escrow Agent’s
    receipt of such monies, they shall be credited to the Escrow Account. All checks delivered to the Escrow Agent shall be made
    payable to “___________________ Escrow Account.” Any check payable other than to the Escrow Agent as required
    hereby shall be returned to the prospective purchaser, or if the Escrow Agent has insufficient information to do so, then
    to the Placement Agent (together with any Subscription Information, as defined below or other documents delivered therewith)
    by noon of the next business day following receipt of such check by the Escrow Agent, and such check shall be deemed not to
    have been delivered to the Escrow Agent pursuant to the terms of this Agreement.
	 	 
	3.2	Promptly
    after receiving subscription monies as described in Section 3.1, the Escrow Agent shall deposit the same into the Bank
    Account. Amounts of monies so deposited are hereinafter referred to as “Escrow Amounts”. The Escrow Agent
    shall cause the Bank to process all Escrow Amounts for collection through the banking system. Simultaneously with each deposit
    to the Escrow Account, the Placement Agent (or the Issuer, if such deposit is made by the Issuer) shall inform the Escrow
    Agent in writing of the name, address, and the tax identification number of the purchaser, the amount of Securities subscribed
    for by such purchase, and the aggregate dollar amount of such subscription (collectively, the “Subscription Information”).
	 	 
	3.3	The
    Escrow Agent shall not be required to accept for credit to the Escrow Account or for deposit into the Bank Account checks
    which are not accompanied by the appropriate Subscription Information, which at minimum shall include the name address, tax
    identification number and the number of shares/units. Wire transfers representing payments by prospective purchasers shall
    not be deemed deposited in the Escrow Account until the Escrow Agent has received in writing the Subscription Information
    required with respect to such payments.



 






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	3.4	The
    Escrow Agent shall not be required to accept in the Escrow Account any amounts representing payments by prospective purchasers,
    whether by check or wire, except during the Escrow Agent’s regular business hours.
	 	 
	3.5	Only
    those Escrow Amounts, which have been deposited in the Bank Account and which have cleared the banking system and have been
    collected by the Escrow Agent, are herein referred to as the “Fund”.
	 	 
	3.6	If
    the proposed offering is terminated before the Termination Date, the Escrow Agent shall refund any portion of the Fund prior
    to disbursement of the Fund in accordance with Article 4 hereof upon instructions in writing signed by both the Issuer and
    the Placement Agent.
	 	 
	4	Disbursement
    from the Bank Account. 
	 	 
	4.1	Subject
    to Section 4.3 below, if by the close of regular banking hours on the Termination Date the Escrow Agent determines that
    the amount in the Fund is less than the Minimum Dollar Amount, as indicated by the Subscription information submitted to the
    Escrow Agent, then in either such case, the Escrow Agent shall promptly refund to each prospective purchaser the amount of
    payment received from such purchaser which is then held in the Fund or which thereafter clears the banking system, without
    interest thereon or deduction therefrom, by drawing checks on the Bank Account for the amounts of such payments and transmitting
    them to the purchasers. In such event, the Escrow Agent shall promptly notify the Issuer and the Placement Agent of its distribution
    of the Fund.
	 	 
	4.2	Subject
    to Section 4.3 below, if at any time up to the close of regular banking hours on the Termination Date, the Escrow Agent
    determines that the amount in the Fund is at least equal to the Minimum Dollar Amount, the Escrow Agent shall promptly notify
    the Issuer and the Placement Agent of such fact in writing.   The Escrow Agent shall only be entitled to receive
    Funds until the Escrow Account reaches the Maximum Dollar Amount.  Any Funds received by the Escrow Agent in excess
    of the Maximum Dollar Amount shall be returned to the Placement Agent for distribution to the investor.  On the
    Termination Date, the Escrow Agent shall promptly disburse the Fund, by wiring funds from the Bank Account in accordance with
    instructions in writing signed by both the Issuer and the Placement Agent as to the disbursement of the Fund, promptly after
    it receives such instructions.  If the Minimum Dollar Amount is not reached by the Termination Date, the Escrow Agent
    shall return the deposits as directed in written instructions signed by Placement Agent and the Issuer.
	 	 
	4.3	If
    the Escrow Agent or the Placement Agent has on hand at the close of business on the Termination Date any uncollected amounts
    which when added to the Fund would raise the amount in the Fund to the Minimum Dollar Amount, and result in the Fund represent
    the sale of the Minimum Securities Amount, the Collection Period (consisting of the number of business days set forth on the
    Information Sheet) shall be utilized to allow such uncollected amounts to clear the banking system. During the Collection
    Period, the Placement Agent (and the Issuer) shall not deposit and the Escrow Agent shall not accept, any additional amounts;
    provided, however, that such amounts as were received by the Placement Agent (or the Issuer) by the close of business on the
    Termination Date may be deposited with the Escrow Agent by noon of the next business day following the Termination Date. If,
    at the close of business on the last day of the Collection Period, an amount sufficient to raise the amount in the Fund to
    the Minimum Dollar Amount shall not have cleared the banking system, the Escrow Agent shall promptly notify the Issuer and
    the Placement Agent in writing of such fact and shall promptly return all amounts then in the Fund, and any amounts which
    thereafter clear the banking system to the prospective purchasers as provided in Section 4.2 hereof.



 






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	4.4	Upon
    disbursement of the Fund pursuant to the terms of this Article 4, the Escrow Agent shall be relieved of all further obligations
    and released from all liability under this Agreement. It is expressly agreed and understood that in no event shall the aggregate
    amount of payments made by the Escrow Agent exceed the amount of the Fund.
	 	 
	5	Rights,
    Duties and Responsibilities of Escrow Agent. It is understood and agreed that the duties of the Escrow Agent are purely
    ministerial in nature, and that:
	 	 
	5.1	The
    Escrow Agent shall notify the Placement Agent, on a daily basis, of the Escrow Amounts which have been deposited in the Bank
    Account and of the amounts, constituting the Fund, which have cleared the banking system and have been collected by the Escrow
    Agent.
	 	 
	5.2	The
    Escrow Agent shall not be responsible for or be required to enforce any of the terms or conditions of the agreement between
    the Placement Agent and the Issuer nor shall the Escrow Agent be responsible for the performance by the Placement Agent or
    the Issuer of their respective obligations under this Agreement.
	 	 
	5.3	The
    Escrow Agent shall not be required to accept from the Placement Agent (or the Issuer) any Subscription Information pertaining
    to prospective purchasers unless such Subscription Information is accompanied by checks, or wire transfers meeting the requirements
    of Section 3.1, nor shall the Escrow Agent be required to keep records of any information with respect to payments deposited
    by the Placement Agent (or the Issuer) except as to the amount of such payments; however, the Escrow Agent shall notify the
    Placement Agent within a reasonable time of any discrepancy between the amount set forth in any Subscription Information and
    the amount delivered to the Escrow Agent therewith. Such amount need not be accepted for deposit in the Escrow Account until
    such discrepancy has been resolved.
	 	 
	5.4	The
    Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder. The Escrow
    Agent, within a reasonable time, shall return to the Placement Agent any check received which is dishonored, together with
    the Subscription Information, if any, which accompanied such check.
	 	 
	5.5	The
    Escrow Agent shall be entitled to rely upon the accuracy, act in reliance upon the contents, and assume the genuineness of
    any notice, instruction, certificate, signature, instrument or other document which is given to the Escrow Agent pursuant
    to this Agreement without the necessity of the Escrow Agent verifying the truth or accuracy thereof. The Escrow Agent shall
    not be obligated to make any inquiry as to the authority, capacity, existence or identity or any person purporting to give
    any such notice or instructions or to execute any such certificate, instrument or other document.



 






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	5.6	If
    the Escrow Agent is uncertain as to its duties or rights hereunder or shall receive instructions with respect to the Bank
    Account, the Escrow Amounts or the Fund which, in its sole determination, are in conflict either with other, instructions
    received by it or with any provision of this Agreement, it shall be entitled to hold the Escrow Amounts, the Fund, or a portion
    thereof, in the Bank Account pending the resolution of such uncertainty to the Escrow Agent’s sole satisfaction, by
    final judgment of a court or courts of competent jurisdiction or otherwise; or the Escrow Agent, at its sole option, may deposit
    the Fund (and any other Escrow Amounts that thereafter become part of the Fund) with the Clerk of a court of competent jurisdiction
    in a proceeding to which all parties in interest are joined. Upon the deposit by the Escrow Agent of the Fund with the Clerk
    of any court, the Escrow Agent shall be relieved of all further obligations and released from all liability hereunder.
		 
	5.7	The
    Escrow Agent shall not be liable for any action taken or omitted hereunder, or for the misconduct of any employee, agent or
    attorney appointed by it, except in the case of willful misconduct or gross negligence. The Escrow Agent shall be entitled
    to consult with counsel of its own choosing and shall not be Liable for any action taken, suffered or omitted by it in accordance
    with the advice of such counsel.
	 	 
	5.8	The
    Escrow Agent shall have no responsibility at any time to ascertain whether or not any security interest exists in the Escrow
    Amounts, the Fund or any part thereof or to file any statement under the Uniform Commercial Code with respect to the Fund
    or any part thereof.
	 	 
	6	Amendment;
    Resignation. This Agreement may be altered or amended only with the written consent of the Issuer, the Placement Agent
    and the Escrow Agent.
	 	 
	6.1	The
    Escrow Agent may resign for any reason upon thirty (30) business days’ written notice to the Issuer and the Placement
    Agent. Should the Escrow Agent resign as herein provided, it shall not be required to accept any deposit, make any
    disbursement or otherwise dispose of the Escrow Amounts or the Fund, but its only duty shall be to hold the Escrow Amounts
    until they clear the banking system and the Fund for a period of not more than five (5) business days following the effective
    date of such resignation, at which time (a) if a successor escrow agent shall have been appointed and written notice
    thereof (including the name and address of such successor escrow agent) shall have been given to the resigning Escrow Agent
    by the Issuer, the Placement Agent and such successor escrow agent, then the resigning Escrow Agent shall pay over to the
    successor escrow agent the Fund, less any portion thereof previously paid out in accordance with this Agreement; or (b) if
    the resigning Escrow Agent shall not have received written notice signed by the Issuer, the Placement Agent and a successor
    escrow agent, then the resigning Escrow Agent shall promptly refund the amount in the Fund to each prospective purchaser without
    interest thereon or deduction therefrom, and the resigning Escrow Agent shall promptly notify the Issuer and the Placement
    Agent in writing of its liquidation and distribution of the Fund; whereupon, in either case, the Escrow Agent shall be relieved
    of all further obligations and released from all liability under this Agreement. Without limiting the provisions of Section 8
    hereof, the resigning Escrow Agent shall be entitled to be reimbursed by the Issuer and the Placement Agent for any actual
    expenses incurred in connection with its resignation, transfer of the Fund to a successor escrow agent or distribution of
    the Fund pursuant to this Section 6.



 






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	7	Representations
    and Warranties. The issuer and the Placement Agent hereby jointly and severally represent and warrant to the Escrow
    Agent that:
	 	 
	7.1	No
    party other than the parties hereto and the prospective purchasers have, or shall have, any lien, claim or security interest
    in the Escrow Amounts or the Fund or any part thereof.
	 	 
	7.2	No
    financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing
    (whether specifically or Generally) the Escrow Amounts or the Fund or any part thereof.
	 	 
	7.3	The
    Subscription information submitted with each deposit shall, at the time of submission and at the time of disbursement of the
    Fund, be deemed a representation and warranty that such deposit represents a bona fide payment by the purchaser described
    therein for the amount of securities in such described as Subscription Information.
	 	 
	7.4	All
    of the information contained in the Information Sheet is, as of the date hereof, and will be, at the time of any disbursement
    of the Fund, true and correct.
	 	 
	7.5	Reasonable
    controls have been established and required due diligence performed to comply with “Know Your Customer” regulations,
    USA Patriot Act, Office of the Foreign Asset Control (OFAC) regulations and the Bank Secrecy Act.
	 	 
	8	Fees
    and Expenses. The Escrow Agent shall be entitled to the Escrow Agent Fees set forth on the Information Sheet, payable
    as and when stated therein. In addition, the Issuer and the Placement Agent jointly and severally agree to reimburse the Escrow
    Agent for any reasonable expenses incurred in connection with this Agreement, including, but not limited to, reasonable counsel
    fees. Upon receipt of the Minimum Dollar Amount, the Escrow Agent shall have a lien upon the Fund to the extent of its fees
    for services as Escrow Agent.
	 	 
	9	Indemnification
    and Contribution. 
	 	 
	9.1	The
    Issuer and the Placement Agent (collectively referred to as the “Indemnitors”) jointly and severally agree to
    indemnify the Escrow Agent and its officers, directors, employees, agents and shareholders (collectively referred to as the
    “ Indemnitees”) against, and hold them harmless of and from, any and all loss, liability, cost, damage and expense,
    including without limitation, reasonable counsel fees, which the Indemnitees may suffer or incur by reason of any action,
    claim or proceeding brought against the Indemnitees arising out of or relating in any way to this Agreement or any transaction
    to which this Agreement relates, unless such action, claim or proceeding is the result of the willful misconduct or gross
    negligence of the Indemnitees.



 






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	9.2	If
    the indemnification provided for in Section 9.1 is applicable, but for any reason is held to be unavailable, the Indemnitors
    shall contribute such amounts as are just and equitable to pay, or to reimburse the Indemnitees for, the aggregate of any
    and all losses, liabilities, costs, damages and expenses, including counsel fees, actually incurred by the Indemnitees as
    a result of or in connection with, and any amount paid in settlement of, any action, claim or proceeding arising out of or
    relating in any way to any actions or omissions of the Indemnitors.
	 	 
	9.3	The
    provisions of this Article 9 shall survive any termination of this Agreement, whether by disbursement of the Fund, resignation
    of the Escrow Agent or otherwise.
	 	 
	10	Governing
    Law and Assignment. This Agreement shall be construed in accordance with and governed by the laws of the State of
    New Jersey and shall be binding upon the parties hereto and their respective successors and assigns; provided, however, that
    any assignment or transfer by any party of its rights under this Agreement or with respect to the Escrow Amounts or the Fund
    shall be void as against the Escrow Agent unless (a) written notice thereof shall be given to the Escrow Agent; and (b) the
    Escrow Agent shall have consented in writing to such assignment or transfer.
	 	 
	11	Notices.
    All notices required to be given in connection with this Agreement shall be sent by registered or certified mail, return receipt
    requested, or by hand delivery with receipt acknowledged, or by the Express Mail service offered by the United States Post
    Office, and addressed, if to the Issuer or the Placement Agent, at their respective addresses set forth on the Information
    Sheet, and if to the Escrow Agent, at its address set forth above, to the attention of the Trust Department.
	 	 
	12	Severability.
    If any provision of this Agreement or the application thereof to any person or circumstance shall be determined to be invalid
    or unenforceable, the remaining provisions of this Agreement or the application of such provision to persons or circumstances
    other than those to which it is held invalid or unenforceable shall not be affected thereby and shall be valid and enforceable
    to the fullest extent permitted by law.
	 	 
	13	Execution
    in Several Counterparts. This Agreement may be executed in several counterparts or by separate instruments, and all
    of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.
	 	 
	14	Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements and understandings (written or oral) of the parties in connection therewith.



 






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IN WITNESS
WHEREOF, the undersigned have executed this Agreement as of the day and year first above written.


 





	ISSUER	 	ESCROW
	 	 	 	 	 
	 	 	 	Olde
    Monmouth Stock Transfer Co, Inc.
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Its:	 
	Ominto,
    Inc.  	 	 	 
	 	 	 	 
	By:	 	 	 	 
	Its:	 	 	 	 
	 	 	 	 	 
	THE
    PLACEMENT AGENT	 	 	 
	Chardan
    Capital Markets, LLC	 	 	 
	 	 	 	 
	By:	 	 	 	 
	Its:	 	 	 	 


 






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EXHIBIT
A


 


ESCROW
AGREEMENT INFORMATION SHEET


 


	1.	The
    Issuer


 


Name:
Ominto, Inc.


 


Address:


 


1110-112th
Avenue NE

Suite 350

Bellevue, WA 98004


 


	2.	The
    Placement Agent


 


Name: Chardan
Capital Markets, LLC


 


Address:


 


	3.	The
    Securities


 


Description
of the Securities to be offered: From $_____ to $_______ of shares of common stock of issuer and warrants to purchase common stock
as described in the Registration Statement.


 


	4.	Minimum/Maximum
    Amounts and Conditions Required for Disbursement of the Escrow Account


 


Aggregate
dollar amount which must be collected before the Escrow Account may be disbursed to the Issuer: US$18,000,000.00.


 


Aggregate
dollar amount which is the maximum that Escrow Agent shall collect in the Escrow Account: US$20,000,000.00


 


	5.	Plan
    of Distribution of the Securities


 


Initial
Offering Period: Through _________, 2015


 


Extension
Period, if any: At Discretion of Issuer and Placement Agent


 






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	6.	Title
    of Escrow Account


 


“Ominto,
Inc. Escrow Account”


 


	7.	Escrow
    Agent Fees and Charges


 


$______:
$______ payable at signing of the Escrow Agreement, plus $______ prior to the Closing.


 


Distribution
charges:


 


$____
per check


 


$____
per wire


 


$____
per check returned (NSF) check


 


$____
lost check replacement fee


 


	8.	Collection Period




 


Five
(5) business days


 


 


10