Document:

EXHIBIT 10.62

                                       15

                                ESCROW AGREEMENT
                                ----------------

     THIS  ESCROW  AGREEMENT  (this  "Agreement") is made and entered into as of
February  7,  2006  by  and  among  NS8 CORPORATION, a Delaware corporation (the
"Company");  the  Buyer(s)  listed  on  the Securities Purchase Agreement, dated
November  14,  2005,  as  amended  on the  date  hereof (also referred to as the
"Investor(s)"),  and  GALLAGHER, BRIODY & BUTLER, as Escrow Agent hereunder (the
"Escrow  Agent").

                                   BACKGROUND
                                   ----------

     WHEREAS, the Company and the Investor(s) entered into a Securities Purchase
Agreement  (the  "Securities  Purchase  Agreement"), dated November 14, 2005, as
                  -------------------------------
amended  on the date hereof, pursuant to which the Company has sold and proposes
to sell additional secured convertible debentures (the "Convertible Debentures")
                                                        ----------------------
which  shall  be  convertible into the Company's Common Stock, par value $0.0001
per  share  (the  "Common  Stock"),  for  a  total purchase price of up to Three
                   -------------
Million  One  Hundred  Sixty  Three  Thousand  Four  Hundred  Thirty  Dollars
($3,163,430).  Pursuant  to  the  Securities Purchase Agreement, the Investor(s)
have  deposited the purchase amount in a segregated escrow account to be held by
Escrow  Agent  in order to effectuate a disbursement to the Company at a closing
to  be  held  as set forth in the Securities Purchase Agreement (the "Closing").
                                                                      -------

     WHEREAS,  the  Company  intends  to  sell  Convertible  Securities  (the
"Offering").
--------

     WHEREAS,  the  Company,  the  Investors and David Gonzalez, Esq. (the"Prior
Escrow  Agent")  did  enter  into  an  Escrow Agreement, dated November 14, 2005
(the"Original  Escrow Agreement"), and the Company and the Investors delivered a
joint written direction to the Prior Escrow Agent on January 25, 2006 to deliver
all  amounts  subject  to  the  Original  Escrow  Agreement to the Escrow Agent.

     WHEREAS, Escrow Agent hereby agrees to accept, hold, and disburse the funds
deposited  with  it  in  accordance  with  the  terms  of  this  Agreement.

     WHEREAS,  in  order  to  establish  the  escrow  of funds and to effect the
provisions of the Securities Purchase Agreement, the parties hereto have entered
into  this  Agreement.

     NOW  THEREFORE,  in  consideration of the foregoing, it is hereby agreed as
follows:

     1.     Definitions.  The  following terms shall have the following meanings
            -----------
when  used  herein:

     a.     "Escrow  Funds"  shall  mean  the  funds deposited with Escrow Agent
             -------------
pursuant  to  this  Agreement.

<PAGE>

     b.     "Joint Written Direction" shall mean a written direction executed by
             -----------------------
the  Investor(s)  and  the  Company  directing Escrow Agent to disburse all or a
portion  of  the  Escrow  Funds  or  to  take  or refrain from taking any action
pursuant  to  this  Agreement.

     c.     "Escrow  Period"  shall  begin with the commencement of the Offering
            --------------
and shall  terminate  upon  the  earlier  to  occur  of  the  following  dates:

     (i)     The  date  upon which Escrow Agent confirms that it has received in
the  Escrow  Account  all  of  the  proceeds  of  the  sale  of  the Convertible
Debentures;

     (ii)     The date upon which a determination is made by the Company and the
Investor(s)  to  terminate the Offering prior to the sale of all the Convertible
Debentures.

     During  the  Escrow  Period, the Company and the Investor(s) are aware that
they are not entitled to any funds received into escrow and no amounts deposited
in  the  Escrow  Account  shall  become  the  property  of  the  Company  or the
Investor(s)  or  any  other entity, or be subject to the debts of the Company or
the  Investor(s)  or  any  other  entity.

     2.     Appointment  of  and Acceptance by Escrow Agent.  a. The Investor(s)
            -----------------------------------------------
and  the Company hereby appoint Escrow Agent to serve as Escrow Agent hereunder.
Escrow  Agent hereby accepts such appointment and, upon receipt by wire transfer
of  the  Escrow Funds in accordance with Section 3 below, agrees to hold, invest
and  disburse  the  Escrow  Funds  in  accordance  with  this  Agreement.

     b     The Company hereby acknowledges that the Escrow Agent is special
counsel  to  the  Investor  in  certain matters.  The Company agrees that in the
event  of  any  dispute  arising  in  connection  with  this Escrow Agreement or
otherwise  in  connection  with  any  transaction  or agreement contemplated and
referenced  herein, the Escrow Agent shall be permitted to continue to represent
the  Investor  and  the  Company  will not seek to disqualify such counsel.  The
Company  and  the  Investor hereby waive any conflict of interest arising out of
the  Escrow Agent's representation of the Investor and the escrow services to be
provided by the Escrow Agent under this Agreement.  The Investor and the Company
acknowledge  and  confirm  that  the  Escrow Agent is not serving in a fiduciary
capacity  under this Agreement but rather is providing the services at set forth
herein.

     3.     Creation  of  Escrow  Account.  On  or  prior  to  the  date  of the
            -----------------------------
commencement of the Offering, the parties shall establish an escrow account with
the Escrow Agent, which escrow account shall be entitled as follows:  Gallagher,
Briody  &  Butler  Attorney  Trust  Account,  NS8  Corporation/Cornell  Capital
Partners,  LP  Sub-Account for the deposit of the Escrow Funds.  The Investor(s)
will  instruct  subscribers  to wire funds to the account of the Escrow Agent as
follows:

<PAGE>

Bank:
Routing  #:
Account  #:
Name on Account:
Name  on  Sub-Account:

     4.     Deposits  into  the Escrow Account.  The Investor(s) and the Company
            ----------------------------------
agree  that  they  shall promptly deliver a joint written direction to the Prior
Escrow  Agent  instructing the Prior Escrow Agent to deliver all funds remaining
in  Account  #  2000014931134 subject to the Original Escrow Agreement to Escrow
Agent  for  deposit  in  the  Escrow  Account.

     5.     Disbursements  from  the  Escrow  Account.
            -----------------------------------------

     a.     The  Escrow  Agent  will  continue  to hold such funds until Cornell
Capital  Partners,  LP  on behalf of the Investor(s) and Company execute a Joint
Written  Direction  directing  the  Escrow  Agent  to  disburse the Escrow Funds
pursuant  to  Joint Written Direction signed by the Company and the Investor(s).
In  disbursing  such  funds,  Escrow Agent is authorized to rely upon such Joint
Written  Direction  from  the  Company  and  the  Investor(s) and may accept the
signature of any signatory from the Company listed on the signature page to this
Agreement  and the signature of any signatory from the Investor(s) listed on the
signature  page  to  this  Agreement.

     b.     Reserved.

     c.     In  the  event  Escrow  Agent does receive the amount of the Escrow
Funds  prior  to  expiration  of  the Escrow Period, in no event will the Escrow
Funds  be  released to the Company until such amount is received by Escrow Agent
in  collected  funds. For purposes of this Agreement, the term "collected funds"
shall  mean all funds received by Escrow Agent which have cleared normal banking
channels  and  are  in  the  form  of  cash.

     6.     Collection  Procedure.  Escrow Agent is hereby authorized to deposit
            ---------------------
the  proceeds  of  each  wire  in  the  Escrow  Account.

     7.     Suspension  of  Performance:  Disbursement  Into  Court.  If at any
            -------------------------------------------------------
time, there shall exist any dispute between the Company and the Investor(s) with
respect  to  holding  or  disposition  of any portion of the Escrow Funds or any
other  obligations  of Escrow Agent hereunder, or if at any time Escrow Agent is
unable to determine, to Escrow Agent's sole satisfaction, the proper disposition
of any portion of the Escrow Funds or Escrow Agent's proper actions with respect
to its obligations hereunder, or if the parties have not within thirty (30) days
of the furnishing by Escrow Agent of a notice of resignation pursuant to Section
9 hereof, appointed a successor Escrow Agent to act hereunder, then Escrow Agent
may,  in  its  sole  discretion,  take  either or both of the following actions:

<PAGE>

     a.     suspend the performance of any of its obligations (including without
limitation  any disbursement obligations) under this Escrow Agreement until such
dispute  or  uncertainty  shall  be  resolved to the sole satisfaction of Escrow
Agent or until a successor Escrow Agent shall be appointed (as the case may be);
provided  however,  Escrow  Agent  shall  continue to invest the Escrow Funds in
accordance  with  Section  8  hereof;  and/or

     b.     petition  (by  means  of  an  interpleader  action  or  any  other
appropriate  method) any court of competent jurisdiction in any venue convenient
to  Escrow  Agent, for instructions with respect to such dispute or uncertainty,
and  to  the  extent  required  by  law,  pay  into  such court, for holding and
disposition in accordance with the instructions of such court, all funds held by
it  in the Escrow Funds, after deduction and payment to Escrow Agent of all fees
and  expenses  (including  court costs and attorneys' fees) payable to, incurred
by, or expected to be incurred by Escrow Agent in connection with performance of
its  duties  and  the  exercise  of  its  rights  hereunder.

     c.     Escrow  Agent  shall  have  no  liability  to  the  Company,  the
Investor(s), or any person with respect to any such suspension of performance or
disbursement  into  court,  specifically  including  any  liability  or  claimed
liability that may arise, or be alleged to have arisen, out of or as a result of
any  delay in the disbursement of funds held in the Escrow Funds or any delay in
with  respect  to  any  other  action  required  or  requested  of Escrow Agent.

     8.     Investment  of  Escrow Funds.  Escrow Agent shall deposit the Escrow
            ----------------------------
Funds  in  a non-interest bearing sub-account within the Escrow Agent's attorney
trust  account.

     If Escrow Agent has not received a Joint Written Direction at any time that
an  investment  decision  must  be  made, Escrow Agent shall maintain the Escrow
Funds,  or such portion thereof, as to which no Joint Written Direction has been
received,  in  a  non-interest  bearing  sub-account  within  the Escrow Agent's
attorney  trust  account.

     9.     Resignation  and  Removal  of Escrow Agent.  Escrow Agent may resign
            ------------------------------------------
from  the  performance of its duties hereunder at any time by giving thirty (30)
days'  prior  written  notice  to the parties or may be removed, with or without
cause,  by  the parties, acting jointly, by furnishing a Joint Written Direction
to  Escrow  Agent,  at  any  time  by the giving of ten (10) days' prior written
notice  to  Escrow  Agent  as  provided  herein  below.  Upon any such notice of
resignation  or  removal, the representatives of the Investor(s) and the Company
identified  in  Sections  13a.(iv)  and 13b.(iv), below, jointly shall appoint a
successor  Escrow  Agent  hereunder,  which  shall  be  a commercial bank, trust
company  or  other  financial institution with a combined capital and surplus in
excess  of $10,000,000.00.  Upon the acceptance in writing of any appointment of
Escrow  Agent hereunder by a successor Escrow Agent, such successor Escrow Agent
shall  thereupon  succeed  to  and  become  vested  with all the rights, powers,
privileges  and  duties  of  the  retiring Escrow Agent, and the retiring Escrow
Agent  shall  be  discharged  from  its duties and obligations under this Escrow
Agreement,  but  shall not be discharged from any liability for actions taken as
Escrow  Agent  hereunder  prior  to  such succession.  After any retiring Escrow
Agent's  resignation  or  removal, the provisions of this Escrow Agreement shall
inure  to its benefit as to any actions taken or omitted to be taken by it while
it  was  Escrow  Agent  under  this Escrow Agreement.  The retiring Escrow Agent

<PAGE>

shall  transmit  all  records  pertaining  to the Escrow Funds and shall pay all
funds held by it in the Escrow Funds to the successor Escrow Agent, after making
copies  of  such  records as the retiring Escrow Agent deems advisable and after
deduction  and  payment  to  the  retiring Escrow Agent of all fees and expenses
(including court costs and attorneys' fees) payable to, incurred by, or expected
to  be  incurred by the retiring Escrow Agent in connection with the performance
of  its  duties  and  the  exercise  of  its  rights  hereunder.

10.     Liability  of  Escrow  Agent.
        ----------------------------

     a.     Escrow  Agent  shall have no liability or obligation with respect to
the  Escrow  Funds  except  for  Escrow  Agent's  willful  misconduct  or  gross
negligence.  Escrow  Agent's  sole  responsibility shall be for the safekeeping,
investment, and disbursement of the Escrow Funds in accordance with the terms of
this  Agreement.  Escrow  Agent  shall have no implied duties or obligations and
shall  not  be  charged with knowledge or notice or any fact or circumstance not
specifically  set  forth herein.  Escrow Agent may rely upon any instrument, not
only  as  to  its  due execution, validity and effectiveness, but also as to the
truth and accuracy of any information contained herein, which Escrow Agent shall
in  good  faith  believe  to be genuine, to have been signed or presented by the
person  or  parties purporting to sign the same and conform to the provisions of
this  Agreement.  In  no  event  shall  Escrow  Agent  be liable for incidental,
indirect,  special,  and  consequential or punitive damages.  Escrow Agent shall
not  be  obligated  to  take  any  legal  action  or  commence any proceeding in
connection  with  the  Escrow  Funds,  any  account  in  which  Escrow Funds are
deposited,  this Agreement or the Purchase Agreement, or to appear in, prosecute
or  defend  any such legal action or proceeding.  Escrow Agent may consult legal
counsel  selected  by  it  in  any  event  of  any  dispute  or  question  as to
construction  of  any  of the provisions hereof or of any other agreement or its
duties  hereunder,  or  relating  to any dispute involving any party hereto, and
shall  incur  no  liability  and  shall  be fully indemnified from any liability
whatsoever  in  acting  in  accordance  with the opinion or instructions of such
counsel.  The  Company  and the Investor(s) jointly and severally shall promptly
pay,  upon  demand,  the  reasonable  fees  and expenses of any such counsel and
Escrow  Agent is hereby authorized to pay such fees and expenses from funds held
in  escrow.

     b.     Escrow Agent is hereby authorized, in its sole discretion, to comply
with  orders  issued  or process entered by any court with respect to the Escrow
Funds, without determination by Escrow Agent of such court's jurisdiction in the
matter. If any portion of the Escrow Funds is at any time attached, garnished or
levied upon under any court order, or in case the payment, assignment, transfer,
conveyance  or  delivery of any such property shall be stayed or enjoined by any
court  order,  or  in  any  case  any  order judgment or decree shall be made or
entered  by  any  court affecting such property or any part thereof, then and in
any such event, Escrow Agent is authorized, in its sole discretion, to rely upon
and  comply  with any such order, writ judgment or decree which it is advised by
legal  counsel  selected  by it, binding upon it, without the need for appeal or
other  action;  and if Escrow Agent complies with any such order, writ, judgment
or  decree,  it shall not be liable to any of the parties hereto or to any other
person  or  entity  by  reason  of  such compliance even though such order, writ
judgment  or  decree may be subsequently reversed, modified, annulled, set aside
or  vacated.

     11.     Indemnification  of  Escrow Agent.  From and at all times after the
             ---------------------------------
date of this Agreement, the parties jointly and severally, shall, to the fullest
extent  permitted  by  law and to the extent provided herein, indemnify and hold

<PAGE>

harmless  Escrow  Agent and each partner, director, officer, employee, attorney,
agent  and  affiliate  of Escrow Agent (collectively, the "Indemnified Parties")
                                                           -------------------
against  any  and  all  actions, claims (whether or not valid), losses, damages,
liabilities,  costs  and  expenses  of  any kind or nature whatsoever (including
without  limitation  reasonable attorney's fees, costs and expenses) incurred by
or  asserted  against  any  of  the  Indemnified Parties from and after the date
hereof,  whether  direct,  indirect  or consequential, as a result of or arising
from  or  in  any way relating to any claim, demand, suit, action, or proceeding
(including  any  inquiry  or  investigation)  by  any  person, including without
limitation  the  parties  to  this  Agreement,  whether threatened or initiated,
asserting a claim for any legal or equitable remedy against any person under any
statute  or  regulation,  including,  but  not  limited to, any federal or state
securities  laws,  or  under  any  common  law  or equitable cause or otherwise,
arising  from  or  in  connection  with the negotiation, preparation, execution,
performance  or  failure  of  performance  of  this Agreement or any transaction
contemplated herein, whether or not any such Indemnified Party is a party to any
such  action  or  proceeding,  suit  or  the  target  of  any  such  inquiry  or
investigation; provided, however, that no Indemnified Party shall have the right
to  be  indemnified  hereunder  for  liability  finally determined by a court of
competent  jurisdiction, subject to no further appeal, to have resulted from the
gross  negligence  or willful misconduct of such Indemnified Party.  If any such
action or claim shall be brought or asserted against any Indemnified Party, such
Indemnified  Party  shall  promptly  notify  the  Company  and  the  Investor(s)
hereunder  in  writing,  and  the  Investor(s)  and the Company shall assume the
defense  thereof,  including  the  employment  of counsel and the payment of all
expenses.  Such  Indemnified Party shall, in its sole discretion, have the right
to employ separate counsel (who may be selected by such Indemnified Party in its
sole discretion) in any such action and to participate and to participate in the
defense thereof, and the fees and expenses of such counsel shall be paid by such
Indemnified  Party,  except  that  the  Investor(s)  and/or the Company shall be
required  to  pay  such  fees  and expense if (a) the Investor(s) or the Company
agree  to  pay such fees and expenses, or (b) the Investor(s) and/or the Company
shall  fail to assume the defense of such action or proceeding or shall fail, in
the  sole  discretion  of  such  Indemnified Party, to employ counsel reasonably
satisfactory  to the Indemnified Party in any such action or proceeding, (c) the
Investor(s)  and the Company are  the plaintiff in any such action or proceeding
or  (d)  the  named  or  potential  parties  to  any  such  action or proceeding
(including  any  potentially  impleaded  parties)  include  both the Indemnified
Party,  the  Company and/or the Investor(s) and the Indemnified Party shall have
been  advised  by counsel that there may be one or more legal defenses available
to  it  which are different from or additional to those available to the Company
or  the  Investor(s).  The  Investor(s)  and  the  Company  shall be jointly and
severally  liable  to pay fees and expenses of counsel pursuant to the preceding
sentence, except that any obligation to pay under clause (a) shall apply only to
the party so agreeing.  All such fees and expenses payable by the Company and/or
the  Investor(s)  pursuant  to the foregoing sentence shall be paid from time to
time  as  incurred,  both  in advance of and after the final disposition of such
action  or  claim.  The  obligations  of  the  parties  under this section shall
survive  any  termination  of  this Agreement, and resignation or removal of the
Escrow  Agent  shall  be  independent  of  any  obligation  of  Escrow  Agent.

     The parties agree that neither payment by the Company or the Investor(s) of
any  claim  by  Escrow  Agent for indemnification hereunder shall impair, limit,
modify,  or  affect,  as between the Investor(s) and the Company, the respective
rights  and obligations of Investor(s), on the one hand, and the Company, on the
other  hand.

<PAGE>

     12.     Expenses  of  Escrow  Agent.  (a) Except as set forth in Section 11
             ---------------------------
the Company shall reimburse Escrow Agent for all of its reasonable out-of-pocket
expenses,  including  attorneys'  fees, travel expenses, telephone and facsimile
transmission  costs,  postage  (including  express  mail  and overnight delivery
charges),  copying  charges  and  the  like.  All  of  the  compensation  and
reimbursement  obligations  set  forth  in  this Section shall be payable by the
Company, upon demand by Escrow Agent.  The obligations of the Company under this
Section  shall  survive any termination of this Agreement and the resignation or
removal  of  Escrow  Agent.

     (b)     The  Company shall pay the Escrow Agent's fees as follows: (i) $750
initial fee due upon receipt by the Escrow Agent of the Escrow Funds and (ii) as
billed  thereafter  (payment due within 30 days of receipt of invoice) at Escrow
Agent's  then  current  hourly  rates  plus  out-of-pocket  expenses.

     13.     Warranties.
             ----------

     a.     The  Investor(s)  makes the following representations and warranties
to  Escrow  Agent:

     (i)     The Investor(s) has full power and authority to execute and deliver
this  Agreement  and  to  perform  its  obligations  hereunder.

     (ii)     This  Agreement  has been duly approved by all necessary action of
the  Investor(s), including any necessary approval of the limited partner of the
Investor(s) or necessary corporate approval, as applicable, has been executed by
duly  authorized officers of the Investor(s), enforceable in accordance with its
terms.

     (iii)     The  execution,  delivery,  and performance of the Investor(s) of
this  Agreement  will  not  violate, conflict with, or cause a default under any
agreement of limited partnership of Investor(s) or the articles of incorporation
or  bylaws of the Investor(s) (as applicable), any applicable law or regulation,
any court order or administrative ruling or degree to which the Investor(s) is a
party  or any of its property is subject, or any agreement, contract, indenture,
or  other  binding  arrangement.

     (iv)     Mark  Angelo  has been duly appointed to act as the representative
of  the  Investor(s)  hereunder  and  has  full  power and authority to execute,
deliver,  and  perform  this  Escrow Agreement, to execute and deliver any Joint
Written  Direction,  to amend, modify, or waive any provision of this Agreement,
and  to take any and all other actions as the Investor(s)'s representative under
this Agreement, all without further consent or direction form, or notice to, the
Investor(s)  or  any  other  party.

     (v)     No  party other than  the parties hereto and the Investor(s)s have,
or  shall  have, any lien, claim or security interest in the Escrow Funds or any
part  thereof.  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  Funds  or  any  part  thereof.

     (vi)     All  of  the  representations  and  warranties  of the Investor(s)
contained  herein  are  true and complete as of the date hereof and will be true
and  complete  at  the  time  of  any  disbursement  from  the  Escrow  Funds.

<PAGE>

     b.     The  Company  makes  the following representations and warranties to
the  Escrow  Agent:

     (i)     The  Company is a corporation duly organized, validly existing, and
in  good standing under the laws of the State of Delaware and has full power and
authority  to  execute and deliver this Agreement and to perform its obligations
hereunder.

     (ii)     This  Agreement  has been duly approved by all necessary corporate
action  of  the  Company, including any necessary shareholder approval, has been
executed  by  duly authorized officers of the Company, enforceable in accordance
with  its  terms.

     (iii)     The  execution,  delivery,  and  performance  by  the  Company of
this  Agreement is in accordance with the Securities Purchase Agreement and will
not  violate,  conflict  with,  or  cause  a  default  under  the certificate of
incorporation  or  bylaws  of the Company, any applicable law or regulation, any
court  order  or administrative ruling or decree to which the Company is a party
or  any  of  its  property is subject, or any agreement, contract, indenture, or
other  binding  arrangement,  including  without  limitation  to  the Securities
Purchase  Agreement,  to  which  the  Company  is  a  party.

     (iv)     Anthony  Alda has been duly appointed to act as the representative
of  the  Company hereunder and has full power and authority to execute, deliver,
and  perform this Agreement, to execute and deliver any Joint Written Direction,
to  amend, modify or waive any provision of this Agreement and to take all other
actions  as  the  Company's  Representative  under  this  Agreement, all without
further consent or direction from, or notice to, the Company or any other party.

     (v)     No  party  other than the parties hereto and the Investor(s)s have,
or  shall  have, any lien, claim or security interest in the Escrow Funds or any
part  thereof.  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  Funds  or  any  part  thereof.

     (vi)     All of the representations and warranties of the Company contained
herein are true and complete as of the date hereof and will be true and complete
at  the  time  of  any  disbursement  from  the  Escrow  Funds.

     14.     Consent  to  Jurisdiction  and  Venue.  In the event that any party
             -------------------------------------
hereto  commences a lawsuit or other proceeding relating to or arising from this
Agreement,  the  parties  hereto agree that the United States District Court for
the  District  of New Jersey shall have the sole and exclusive jurisdiction over
any  such  proceeding.  If  all  such  courts  lack  federal  subject  matter
jurisdiction,  the parties agree that the Superior Court Division of New Jersey,
Chancery  Division  of Hudson County shall have sole and exclusive jurisdiction.
Any  of  these  courts  shall  be  proper venue for any such lawsuit or judicial
proceeding  and  the  parties  hereto  waive  any  objection to such venue.  The
parties  hereto consent to and agree to submit to the jurisdiction of any of the

<PAGE>

courts  specified  herein  and  agree  to  accept the service of process to vest
personal  jurisdiction  over  them  in  any  of  these  courts.

     15.     Notice.  All notices and other communications hereunder shall be in
             ------
writing and shall be deemed to have been validly served, given or delivered five
(5) days after deposit in the United States mails, by certified mail with return
receipt  requested  and  postage prepaid, when delivered personally, one (1) day
delivered  to  any  overnight  courier,  or  when  transmitted  by  facsimile
transmission  and  upon confirmation of receipt and addressed to the party to be
notified  as  follows:
If  to  Investor(s),  to:     Cornell  Capital  Partners,  LP
                              101  Hudson  Street  -  Suite  3700
                              Jersey  City,  NJ  07302
                              Attention:  Mark  Angelo
                              Portfolio  Manager
                              Telephone:  (201)  985-8300
                              Facsimile:   (201)  985-8266

If  to  Escrow  Agent,  to:   Gallagher,  Briody  Butler
                              Forrestal  Village,  155  Village  Boulevard
                              Suite  201
                              Princeton,  NJ  08540
                              Attention:       John  Butler
                              Telephone:  (609)  452-6000
                              Facsimile:  (609)  452-0090

If  to  the  Company,  to:    NS8  Corporation
                              600  University  Street  -  Suite  1525
                              Seattle,  WA  98101
                              Attention:  Anthony  Alda
                              Telephone:  (604)  677-6994
                              Facsimile:  (604)  677-7011

With  a  copy  to:            McGuireWoods,  LLP
                              1345  Avenue  of  the  Americas
                              New  York,  NY  10105
                              Attention:  Louis  W.  Zehil,  Esq.
                              Telephone:  (212)  548-2138
                              Facsimile:  (212)  680-2175

Or  to such other address as each party may designate for itself by like notice.

     16.     Amendments  or  Waiver.  This  Agreement  may  be  changed, waived,
             ----------------------
discharged  or  terminated  only  by a writing signed by the parties hereto.  No
delay or omission by any party in exercising any right with respect hereto shall
operate as waiver.  A waiver on any one occasion shall not be construed as a bar
to,  or  waiver  of,  any  right  or  remedy  on  any  future  occasion.

<PAGE>

     17.     Severability.  To  the  extent  any  provision of this Agreement is
             ------------
prohibited  by  or  invalid  under  applicable  law,  such  provision  shall  be
ineffective  to  the  extent  of  such  prohibition,  or  invalidity,  without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

     18.     Governing  Law.  This  Agreement shall be construed and interpreted
             --------------
in  accordance  with the internal laws of the State of New Jersey without giving
effect  to  the  conflict  of  laws  principles  thereof.

     19.     Entire  Agreement.  This Agreement constitutes the entire Agreement
             -----------------
between the parties relating to the holding, investment, and disbursement of the
Escrow  Funds and sets forth in their entirety the obligations and duties of the
Escrow  Agent  with  respect  to  the  Escrow  Funds.

     20.     Binding  Effect.  All  of  the  terms of this Agreement, as amended
             ---------------
from  time  to  time,  shall  be  binding  upon,  inure to the benefit of and be
enforceable  by the respective heirs, successors and assigns of the Investor(s),
the  Company,  or  the  Escrow  Agent.

     21.     Execution  of  Counterparts.  This  Agreement and any Joint Written
             ---------------------------
Direction  may  be  executed  in  counter  parts,  which  when so executed shall
constitute  one  and  same  agreement  or  direction.

     22.     Termination.  Upon  the  first  to occur of the disbursement of all
             -----------
amounts  in  the  Escrow  Account  pursuant  to  Joint Written Directions or the
disbursement of all amounts in the Escrow Account into court pursuant to Section
7  hereof, this Agreement shall terminate and Escrow Agent shall have no further
obligation  or liability whatsoever with respect to this Agreement or the Escrow
Funds.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN  WITNESS WHEREOF the parties have hereunto set their hands and seals the
day  and  year  above  set  forth.

                                       NS8  Corporation

                                       By: /s/ Ricardo Rosado
                                       Name:  Ricardo Rosado
                                       Title:  CFO

                                       Cornell  Capital  Partners,  LP

                                       By:  Yorkville  Advisors,  LLC
                                       Its:  General  Partner

                                       By: /s/ Mark Angelo
                                       Name:  Mark  Angelo
                                       Title:  Portfolio  Manager

                                       Gallagher,  Briody  &  Butler

                                       By: /s/ John Butler
                                       Name:  John  Butler
                                       Title: Partner

                              AUTHORIZED SIGNATURES
                            FOR THE ISSUANCE OF JOINT
                               WRITTEN DIRECTIONS

Company           Investors
-------           ---------

Anthony  Alda     Mark  Angelo
-------------     ------------

<PAGE>Letter Agreement

 Exhibit 10.1 
  
 [NCI Letterhead] 
  
 February 2, 2006 
  
 Richard F. Klein 
 NCI Building Systems, Inc. 
 10943 N. Sam Houston Parkway West 
 Houston, Texas 77064 
  

	Re:	Resignation as President and Chief Operating Officer of the Metal Coil Coating Division of NCI 

  
 Dear Dick: 
  
 This letter will memorialize our discussion and agreement today regarding your decision to
resign your current position as an officer of NCI Building Systems, Inc., as President and Chief Operating Officer of the Metal Coil Coating Division of NCI Building Systems, Inc. and any and all related entities (collectively, the
“Company” or “NCI”), although you will remain an employee of the Company through December 9, 2007. On behalf of the Company, I regretfully accept your decision, effective as of February 1, 2006 (the “Effective
Date”). We have agreed upon the following terms: 
  
 Salary and Bonus

  
 Beginning as of the Effective Date, your annual base salary shall be
reduced to $100,000, payable in accordance with NCI’s regular payroll practices. You will be eligible to continue to participate in the group health and medical benefit programs through December 9, 2007, that are generally made available
to active NCI employees at the applicable active employee premium rate and any other group insurance plans, if any, which are made available to NCI employees, subject to the terms and conditions of such coverage upon the payment of applicable
premiums. Following December 9, 2007, you will have the right to convert your health insurance coverage under the COBRA laws (a subsequent letter will be mailed to you explaining your rights thereunder). 
  
 In accordance with our discussions, you will be eligible to receive a bonus under the NCI
Cash Bonus Plan (the “Bonus Plan”) for fiscal years 2006 and 2007; provided, however, that there is no guarantee that the Company will pay bonuses. The payment of bonuses shall be determined in accordance with the standards as set forth in
the Bonus Plan. Your bonus, if any, shall be calculated as follows: 
  

						
	Period

	 	Bonus Rate

	 	Base Salary for
Bonus Computation

	FY2006	 	25% (Matrix)	 	$	235,000
	FY2007	 	75% (Matrix)	 	$	100,000

 Richard F. Klein 
 February 2, 2006 
 Page 2 of 3 
  
 You will not be eligible to
receive any further semi-annual grants of stock options under the 2003 Long-Term Stock Incentive Plan, as amended. 
  
 Time Commitment 
  
 In accordance with our discussions, beginning on the Effective Date and continuing through and including January 31, 2007, you have agreed to work up to a maximum of sixty (60) work days. For the period of
February 1, 2007, through and including December 9, 2007, you have agreed to work up to a maximum of fifty (50) work days. For the purposes of this provision, it is agreed that your participation in telephone calls and email
communications shall not be construed to be or count against the maximum work day commitment referenced above. Effective as of the Effective Date through and including December 9, 2007, you will not be required to report to NCI’s Corporate
Headquarters or other Company facilities other than as specifically requested. From time to time, the Company may become involved in special projects, such as the evaluation of a potential acquisition. In such event, the Company may request and you
hereby agree that you will make yourself available for an extended period of time (including consecutive days of service); provided, however, that you shall not be required to perform services beyond the maximum work day commitments for the periods
referenced herein. Similarly, to the extent that your assistance is requested in connection with legal proceedings, you agree to make yourself reasonably available to assist in or provide testimony on behalf of the Company. 
  
 Cooperation and Assistance 
  
 During the term of this agreement, you agree to provide such services as are reasonably
necessary to assist the Company in an orderly transition of your responsibilities as President and Chief Operating Officer of the Metal Coil Coating Division of NCI to Brad Robeson or any such other successor to such responsibilities and to perform
such other services for the Company as shall be reasonably requested by the Chief Executive Officer of the Company and are not inconsistent with your prior duties and responsibilities as an officer of the Company. 
  
 Miscellaneous 
  
 The Company shall reimburse you for reasonable and necessary out of pocket expenses incurred in connection with traveling to a Company plant
facility or other Company function that requires travel. 

 Richard F. Klein 
 February 2, 2006 
 Page 3 of 3 
  
 You agree to send an email to the
Chief Executive Officer of the Company indicating your personal travel itinerary and contact information prior to any extended periods during which you will be away from the Houston Metropolitan Area. 
  
 You agree that you will provide advance written notice to either Frances Powell or Todd Moore
of your intention to trade in NCI shares, including exercising options. 
  
 On a
personal note, I look forward to working with you during your continuing time at NCI and wish you the best of luck and prosperity in your new endeavors. 
  

	
	Sincerely,
	
	 /s/ A.R. Ginn, Jr.

	A.R. Ginn, Jr.
	
	ARG/rl
	
	ACCEPTED BY:
	
	 /s/ Richard F. Klein

	Richard F. Klein

  

	c:	Norman C. Chambers 

 Frances Powell 
 Todd R. Moore

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]