Document:

ATEL CAPITAL EQUIPMENT FUND IX, LLC

                                ESCROW AGREEMENT
                               _____________, 2000

U. S. Bank Trust National Association
San Francisco, California

Gentlemen:

         ATEL Capital  Equipment  Fund IX, LLC, a California  limited  liability
company (the "Fund"), proposes to make a public offering through ATEL Securities
Corporation  (the "Dealer  Manager") and other  registered  broker-dealers  (the
"Selected  Dealers")  of not  to  exceed  15,000,000  of its  units  of  limited
liability  company  member  interest (the "Units") at $10 per Unit. The offering
shall be conducted on a  best-efforts  all-or-none  basis for the first  120,000
Units and  thereafter  on a  best-efforts  basis for the  remaining  Units.  The
offering  shall  commence at such time as the Fund's  registration  statement on
Form S-1  with  respect  thereto  (the  "Registration  Statement")  is  declared
effective by the Securities and Exchange  Commission  ("SEC") which is currently
expected to occur on or about  _____________,  2000. We are requesting  that you
consent to act as Depository in connection with the offering.

         As  Depository,   you  shall  receive,  hold  in  escrow  and  disburse
subscription funds in accordance with the terms and conditions set forth in this
letter and in the "Plan of Distribution"  section of the prospectus  included in
the Registration  Statement,  as amended or supplemented (such prospectus in the
form first filed with the SEC pursuant to Rule 424 under the  Securities  Act of
1933, as amended, and any supplement or amendment to such prospectus  thereafter
so filed  pursuant  to such Rule 424 are  hereinafter  collectively  called  the
"Prospectus").

         Upon  request of ATEL  Financial  Corporation  (the  "Manager")  or the
Dealer Manager,  you shall provide reports to the Fund and the Dealer Manager as
to the number and amount of subscriptions received by you.

         The terms and conditions of your  engagement as Depository  shall be as
follows:

         1. On or before  the date of  commencement  of the  offering  you shall
establish an  interest-bearing  escrow  account which shall be entitled "ACEF IX
Escrow Account" (the "Escrow Account").  The Dealer Manager and Selected Dealers
shall  instruct  subscribers  to  make  checks  payable  to  the  order  of  the

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Depository. You shall return any checks received that  are  made  payable  to  a
party other than the  Depository  to the Dealer  Manager or Selected  Dealer who
submitted the check.

         2. The Dealer Manager and the Selected  Dealers shall promptly  deliver
all monies  received for the payment of Units to the  Depository  for deposit in
the Escrow Account. You shall receive and hold deposits of subscription funds in
the amount of $10 per Unit. The minimum subscription shall be 200 Units ($2,000)
for IRAs and Keogh Plans (as those terms are defined in the  Prospectus) and 250
Units  ($2,500)  for  all  others,  subject,  however,  to such  higher  minimum
subscriptions  as are described in the Prospectus as being applicable in certain
circumstances.  Each deposit shall be accompanied by a Subscription Agreement in
the form of that attached as Exhibit C to the Prospectus identifying by name and
address the  subscriber  whose funds are  deposited  and the amount of the funds
deposited by such subscriber.

         3.  Deposits  in the form of checks  which  fail to clear the bank upon
which they are drawn  shall be  returned by the  Depository  to the  subscriber,
together with the copy of the  Subscription  Agreement.  You shall  concurrently
furnish to the  Manager and the Dealer  Manager a copy of any such  Subscription
Agreement and check so returned.  The Depository shall have no further liability
therefor.

         If the Fund  rejects  any  subscription  for which the  Depository  has
already  collected  funds, the Depository shall promptly issue a refund check to
the  rejected  subscriber.  If the Fund rejects any  subscription  for which the
Depository has not yet collected funds but has submitted the subscriber's  check
for collection, the Depository shall promptly issue a check in the amount of the
subscriber's  check to the rejected  subscriber after the Depository has cleared
such funds.  If the  Depository  has not yet  submitted a rejected  subscriber's
check for collection, the Depository shall promptly remit the subscriber's check
directly to the subscriber.

         4. You shall place funds from the Escrow  Account only in the following
interest- bearing accounts and short-term  obligations as the Fund shall direct:
short-term  United  States  government  securities,  including  Treasury  bills,
securities   issued  or  guaranteed  by  United  States   government   agencies,
certificates  of deposit  and time or demand  deposits  in banks and savings and
loan  associations  which are insured by United  States  government  agencies or
deposits in members of the Federal  Home Loan Bank  System;  provided,  however,
that you shall not be  required  to place  any such  funds in a manner  which is
inconsistent with the Prospectus.  In the absence of express  instructions,  you
will invest such funds, to the extent  reasonably  practicable,  in a U. S. Bank
Money Market Account  insured by the FDIC. As Depository you shall not be liable
for any loss of  interest in the event funds are  withdrawn  prior to  maturity.
Interest  accrued on subscription  funds held in the Escrow Account shall not be
an asset of the Fund, but shall either (i) be paid to the respective subscribers
upon return of subscription  proceeds to subscribers  pursuant to paragraph 5 of
this Agreement in the event the Minimum  Subscriptions  (as defined in paragraph
5) are not received prior to  termination  of the offering);  or (ii) be paid to
the Fund upon release of subscription  proceeds to the Fund for  disbursement by
the Fund to subscribers, in either case to be divided among the subscribers on a
pro rata basis  according to the respective  numbers of days between the time of

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deposit of their  payments into the Escrow  Account  and  the  release  of  such
payments  to the Fund or the return  thereof to the  subscribers,  and in either
case with the amounts of interest  allocated among  subscribers to be calculated
by the Manager.

         5. If and at such  time as  amounts  in  collected  funds  representing
subscriptions for not less than 120,000 Units shall have been deposited with you
under this  Agreement  (the  "Minimum  Subscriptions"),  you shall so notify the
Manager and the Dealer  Manager and upon  receipt of written  instructions  from
each of the Fund and the  Dealer  Manager,  you shall  disburse  to the Fund all
subscription  funds held by you. If the offering is terminated  prior to receipt
of collected funds representing the Minimum Subscriptions, or if collected funds
representing the Minimum  Subscriptions  have not been received on or before the
date which is one year from the date that the Registration Statement is declared
effective by the SEC, you shall promptly disburse all subscription  funds to the
subscribers who transmitted  them without  deduction,  penalty or expense to the
subscriber,  and you shall advise the Fund and the Dealer  Manager that you have
done so. The  subscription  funds returned to each subscriber  shall be free and
clear of any and all  claims of the Fund or any of its  creditors.  In any case,
all interest earned on  subscription  proceeds held by you shall be disbursed to
subscribers  as  provided  in  paragraph  4,  with  the  Manager  providing  the
Depository with the calculation of interest  payable to each  subscriber.  After
all disbursements under this Agreement have been completed,  the escrow shall be
terminated;  provided,  however,  that an agreement  with a branch of Depository
will be  effective  upon  escrow  holder  notifying  the branch that the Minimum
Subscriptions  have been reached and escrow is closed.  The branch will agree to
facilitate  transfers of subscription funds to the Fund in the event subscribers
make checks payable to the Depository after the date Minimum  Subscriptions have
been received.  The branch's sole function in such event shall be to endorse any
such subscription checks to the account of the Fund.

         For purposes of the foregoing,  the term  "collected  funds" shall mean
all funds received by the Depository  which have cleared normal banking channels
and are in the form of cash.

         Notwithstanding the foregoing,  any and all subscription  proceeds from
Pennsylvania  investors  deposited with the  Depositary  will be maintained in a
separate  escrow account  entitled "ACEF IX  Pennsylvania  Escrow  Account." The
terms of the escrow for Pennsylvania  subscriptions will be the same as provided
for all subscription  proceeds under this Agreement,  except as expressly stated
in the following paragraphs.

         The amount of  subscription  proceeds held in the  Pennsylvania  Escrow
Account will not be counted in  determining  the Minimum  Subscriptions  defined
above in this Section 5, unless the  Pennsylvania  Minimum (as defined below) is
reached  prior to the date  that the  amount  of the  Minimum  Subscriptions  is
received from non-Pennsylvania subscribers. The funds in the Pennsylvania Escrow
Account will be retained in such  account,  and will not be released to the Fund
upon the release of other escrowed  funds at the time the Minimum  Subscriptions
are  reached  under  the  Agreement   unless  the   conditions  for  release  of
Pennsylvania  subscriptions set forth in this paragraph are first satisfied.  If
and at such time as the Fund and the Dealer Manager  deliver to the Depositary a
certificate,  together  with any other  documentation  that the  Depositary  may
reasonably require, which demonstrates that the Fund has received a total amount

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in  collected  funds  which,  when  added  to  the  total  amount  held  in  the
Pennsylvania Escrow Account, represent aggregate subscriptions for not less than
750,000  Units  (the  "Pennsylvania  Minimum"),  and  upon  receipt  of  written
instructions from each of the Fund and the Dealer Manager,  the Depositary shall
disburse  to the Fund all  subscription  funds held in the  Pennsylvania  Escrow
Account.

         If the  offering  is  terminated  prior to receipt of  collected  funds
representing the Pennsylvania  Minimum,  or if collected funds  representing the
Pennsylvania  Minimum have not been  received on or before the date which is 120
days after the date  hereof,  the Fund and the Dealer  Manager  will notify each
Pennsylvania  investor whose subscription  proceeds are held in the Pennsylvania
Escrow  Account  within 10 calendar  days  following the end of such period that
such investor has the right to have the escrowed  subscription proceeds returned
to the investor by notifying the  Depositary  that such return is desired within
10 calendar days after receipt of such notification of the right to such return.
The  subscription  proceeds held for investors so requesting a return,  together
with any interest accrued thereon, will be promptly forwarded to such investors,
but in no event later than 15 calendar days following  receipt by the Depositary
of the notice requesting such return.

         Any subscription  proceeds from Pennsylvania  investors which remain in
the escrow  after the  expiration  of the  periods  described  in the  foregoing
paragraph will be held until the earlier of the satisfaction of the Pennsylvania
Minimum  condition or the termination of the offering;  provided that at the end
of  each  subsequent   120-day  period  of  the  escrow,   the  investors  whose
subscription  proceeds  remain in the escrow will be offered  the return  rights
described  in  the  foregoing  paragraph;  and  provided  further  that,  if the
Pennsylvania  Minimum  is not  satisfied  within one year from the date that the
Registration  Statement is declared  effective by the SEC, the Depositary  shall
promptly disburse all subscription  funds in the Pennsylvania  Escrow Account to
the subscribers who transmitted  them without  deduction,  penalty or expense to
the subscriber,  and the Depositary shall advise the Fund and the Dealer Manager
that the  Depositary  has  done  so.  Any  such  disbursements  to  Pennsylvania
investors will be on the same terms as all disbursements under this Agreement.

         6. All fees,  costs, and charges of the Depository shall be paid by the
Fund.  Escrow  fees shall be as set forth in Exhibit A hereto.  No fees,  costs,
charges,  indemnification  for damages  suffered by the Depository or any monies
whatsoever  shall be paid out of or  chargeable  to the funds on  deposit in the
Escrow Account.

         7. The Fund and the Dealer  Manager  hereby  represent and warrant that
neither  they nor any of their  affiliates  has made,  nor will any such  person
make,  any  representation  which  might  imply  that you in any way  endorse or
recommend an investment in Units or guarantee  any  obligations  relating to the
Units except those expressly undertaken as Depositary under this Agreement.

         In consideration of your acting as Depository herein, it is agreed that
you shall in no case or event be liable for the failure of any of the conditions

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of  this  Agreement  or damage  caused by  the exercise  of your  discretion  in
any  particular  manner,  or for any other  reason,  except gross  negligence or
willful  misconduct with reference to the Escrow  Account,  and you shall not be
liable or responsible for your failure to ascertain the terms or conditions,  or
to comply  with any of the  provisions  of,  any  agreement,  contract  or other
document  filed  herewith  or  referred  to  herein,  nor shall you be liable or
responsible for forgeries or false personation.

         It is further agreed that if any controversy arises between the parties
hereto or with any third  person  with  respect  to the  subject  matter of this
Agreement, or its terms or conditions, you are entitled at your option to refuse
to comply with any claim or demand, so long as such controversy continues and in
so doing you shall not be or become  liable for damages or interest to any party
for your failure or refusal to comply with any  conflicting or adverse  demands.
You shall be entitled to continue so to refrain and refuse so to act until:

                  A.       The rights of the adverse claimants have been finally
         adjudicated in a court assuming and having jurisdiction of the  parties
         and the money, papers and property involved herein or affected  hereby;
         and/or

                  B.       All differences shall have been adjusted by agreement
         and you shall have been notified thereof  in  writing  by  all  of  the
         persons interested.

         In the event of any such controversy, you, in your discretion, may file
a suit in  interpleader  for the purpose of having the respective  rights of the
claimants  adjudicated,  and deposit with the court all  documents  and property
held  hereunder,  and the Fund agrees to pay all costs and counsel fees incurred
by you in such action and said costs and fees shall be included in the  judgment
in any such action.

         You shall not be  required to take or be bound by notice of any default
of any person,  or to take any action with respect to such default involving any
expense or  liability,  unless notice of such default is given to you in writing
by the Manager and unless you are  indemnified in a manner  satisfactory  to you
against such expense or liability.

         You shall be  protected  in acting  upon any notice,  request,  waiver,
consent,  receipt or other  paper or document  reasonably  believed by you to be
signed by the proper party or parties.

         You may consult with legal counsel if any controversy  arises,  and you
shall incur no liability  and shall be fully  protected in acting in  accordance
with the opinion and instructions of counsel.

         In the event that you perform any  service  not  specifically  provided
hereinabove,  or there is any  assignment  or  attachment of any interest in the
subject matter of this Agreement or  modification  thereof,  or any  controversy
arises hereunder,  or you are named a party to, or are required to intervene in,
any  litigation  pertaining to this escrow or the subject  matter  thereof,  you
shall be  reasonably  compensated  therefor  and  reimbursed  for all  costs and
expenses, including attorney's fees, occasioned thereby.

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         8. The Fund,  the Manager and the Dealer  Manager  represent  and agree
that none has made nor will any of them in the  future  make any  representation
that  states or  implies  that the Escrow  Agent has  endorsed,  recommended  or
guaranteed  the purchase,  value,  or repayment of the Units offered for sale by
the  Fund.  The Fund  further  agrees  that it will  insert  in any  prospectus,
offering circular, advertisement,  subscription agreement or other document made
available  to  prospective  purchasers  of the Units the  following in bold face
type: "U.S. Bank Trust National Association is acting only as an escrow agent in
connection with the offering of the Units, and has not endorsed,  recommended or
guaranteed the purchase,  value or repayment of such Units", and will furnish to
the  Escrow  Agent  a  copy  of  each  such   prospectus,   offering   circular,
advertisement, subscription agreement or other document at least 5 business days
prior to its distribution to prospective purchasers of the Securities".

         9. The Depository may resign upon the giving of 30 days' written notice
to the  Manager and the Dealer  Manager.  The  Depository  may be removed by the
Manager and the Dealer  Manager,  acting  jointly,  upon 30 days' prior  written
notice to the  Depository.  In such  event,  it shall be the  obligation  of the
Manager,  with the  consent  of the  Dealer  Manager,  to  appoint  a  successor
Depository.  The Depository shall turn over to such successor,  at the direction
of the Fund, all funds,  accounts and records held by the Depository pursuant to
this Agreement.

         Any change in the  aforesaid  terms and  conditions  shall  require the
consent of the Dealer  Manager.  In the event that any questions arise as to the
interpretation  of such terms and  conditions,  you shall be  authorized to rely
upon  telegraphic  or  written  instructions  from the  Dealer  Manager  and the
Manager.

         If you consent and  agree  to  act  as  Depository  on  the  terms  and
conditions set forth  above,  please so  signify by  causing  a duly  authorized
officer or employee to sign the enclosed copy of this letter as indicated  below
and return it  to  the  undersigned,  whereupon  the  terms  and  conditions  of
this letter shall constitute an agreement between  us.  This  agreement  may  be

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signed in separate  counterparts,  each of which when so executed and  delivered
shall  be an  original  for  all  purposes,  but  all  such  counterparts  shall
constitute one and the same instrument.

                                  Very truly yours,

                                  ATEL CAPITAL EQUIPMENT FUND IX, LLC,
                                  a California limited liability company

                                  By: ATEL Financial Corporation,
                                      a California corporation,
                                      Manager

                                      By: ___________________________
                                           A.J. Batt,
                                           Chairman of the Board

                                  ATEL SECURITIES CORPORATION,
                                  a California corporation, Dealer Manager

                                      By: ___________________________
                                           Dean L. Cash,
                                           President

We hereby  consent to act as  Depository on the terms and  conditions  set forth
above. Executed this ___ day of ________, 2000.

U. S. Bank Trust National Association

By: ____________________________

    ____________________________
    (Name and Title)

                                        7EXHIBIT 10.1

                              HITSGALORE.COM, INC.
                           YEAR 2000 STOCK AWARD PLAN

THIS 2000 STOCK AWARD PLAN (the "Plan") is made as of the 29th day of September
2000, by Hitsgalore.com, Inc. (the "Company"), for the Company's consultants and
employees ("the recipients).

R E C I T A L S:

The Company desires under agreement to grant compensation to recipients in
exchange for services provided to the Company, shares of the common stock of the
Company (the "Common Stock"), pursuant to the provisions set forth herein;

1.       Grant of Shares. The Company shall grant to the Recipients from time to
         time the following shares of Common Stock (the "Shares") in the
         Company.

         Class of Stock             Number of Shares
         -------------------------------------------
         Common                     10,000,000

2.       Services. Recipients shall provide bona fide services to the Company
         not in connection with capital raising activities.

3.       Compensation. Recipient's compensation is the Shares identified herein.
         The parties agree the Shares shall be valued at 80% of the bid price of
         the Company's Common Stock as reported on the Over the Counter Bulletin
         Board on the date of grant. Recipients are responsible for all income
         taxes.

4.       Registration or Exemption. Notwithstanding anything to the contrary
         contained herein, the Shares will be registered on Form S-8
         Registration Statement dated October 3, 2000.

5.       Delivery of Shares. The Company shall deliver to the Recipient such
         shares for services pursuant to the agreement for services between the
         Company and the recipient.

6.       Waiver. No waiver is enforceable unless in writing and signed by such
         waiving party, and any waiver shall not be construed as a waiver by any
         other party or of any other or subsequent breach.

7.       Amendments. This Plan may not be amended unless by the mutual consent
         of all of the parties hereto in writing.

8.       Governing Law. This Plan shall be governed by the laws of the State of
         Florida, and the sole venue for any action arising hereunder shall be
         Palm Beach County, Florida.

9.       Assignment and Binding Effect. Neither this Plan nor any of the rights,
         interests or obligations hereunder shall be assigned by any party
         hereto without the prior written consent of the other parties hereto,
         except as otherwise provided herein. This Plan shall be binding upon
         and for the benefit of the parties hereto and their respective heirs,
         permitted successors, assigns and/or delegates.

10.      Integration and Captions. This Plan includes the entire understanding
         of the parties hereto with respect to the subject matter hereof. The
         captions herein are for convenience and shall not control the
         interpretation of this Plan.

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11.      Legal Representation. Each party has been represented by independent
         legal counsel in connection with this Plan, or each has had the
         opportunity to obtain independent legal counsel and has waived such
         right, and no tax advice has been provided to any party.

12.      Construction. Each party acknowledges and agrees having had the
         opportunity to review, negotiate and approve all of the provisions of
         this Plan.

13.      Cooperation. The parties agree to execute such reasonable necessary
         documents upon advice of legal counsel in order to carry out the intent
         and purpose of this Plan as set forth herein above.

14.      Hand-Written Provisions. Any hand-written provisions hereon, if any, or
         attached hereto, which have been initialed by all of the parties
         hereto, shall control all typewritten provisions in conflict therewith.

15.      Fees, Costs and Expenses. Each of the parties hereto acknowledges and
         agrees to pay, without reimbursement from the other party(ies), the
         fees, costs, and expenses incurred by each such party incident to this
         Plan.

16.      Consents and Authorizations. By the execution herein below, each party
         acknowledges and agrees that each such party has the full right, power,
         legal capacity and authority to enter into this Plan, and the same
         constitutes a valid and legally binding Plan of each such party in
         accordance with the terms, conditions and other provisions contained
         herein.

17.      Gender and Number. Unless the context otherwise requires, references in
         this Plan in any gender shall be construed to include all other
         genders, references in the singular shall be construed to include the
         plural, and references in the plural shall be construed to include the
         singular.

18.      Severability. In the event anyone or more of the provisions of this
         Plan shall be deemed unenforceable by any court of competent
         jurisdiction for any reason whatsoever, this Plan shall be construed as
         if such unenforceable provision had never been contained herein.

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EXHIBIT "A"

Item 1 - Plan Information

(a) General Plan Information

         1. The title of the Plan is: Hitsgalore.com, Inc.-Year 2000 stock award
         plan ("Plan") and the name of the registrant whose securities are to be
         offered pursuant to the Plan is Hitsgalore.com, Inc. ("Company").

         2. The general nature and purpose of the Plan is to grant Employees and
         Consultants 10,000,000 shares of the Company as compensation for
         services rendered and services to be rendered to the Company.

         3. To the best of Company's knowledge, the Plan is not subject to any
         of the provisions of the Employee Retirement Income Security Act of
         1974.

         4. The Company shall act as Plan Administrator. The Company's address
         and telephone number are 10134 6th Street, Suite J, Rancho Cucamonga,
         CA 91730 and (909) 481-8821, respectively. The Company, as
         administrator of the Plan, will merely issue to the employees and
         Consultants shares of Common Stock pursuant to the terms of the Plan.

(b) Securities to be offered. Pursuant to the terms of the Plan, shares of the
Company's common stock will be offered.

(c) Employees Who May Participate in the Plan. Employees and Consultants who
provide bona fide services to the Company may participate in the plan. Employees
and Consultants are eligible to receive the securities provided the securities
have been registered or are exempt from registration under the Securities Act of
1933, as amended (the "Act").

(d) Purchase of Securities Pursuant to the Plan. The Company shall issue and
deliver the securities to Employees and Consultants as soon as practicable.

(e) Resale Restrictions. Employees and Consultants, after receipt of the Shares,
may assign, sell, convey or otherwise transfer the securities received, subject
to the requirements of the Act.

(f) Tax Effects of Plan Participation. The Hitsgalore.com, Inc. - Year 2000
Stock Award Plan is not qualified under Sec. 401 of the Internal Revenue Code of
1986, as amended.

(g) Investment of Funds. n/a

(h) Withdrawal from the Plan; Assignment of Interest. Withdrawal or termination
as to the Plan may occur upon mutual written consent of the parties. Employees
and Consultants have the right to assign or hypothecate Employees or
Consultant's interest in the Plan, subject to Plan provisions.

(i) Forfeitures and Penalties. n/a

(j) Charges and Deductions and Liens Therefore. n/a

                                       10

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Item 2 - Registrant Information and Employee Plan Annual Information.

Registrant, upon oral or written request by Employees and Consultants, shall
provide, without charge, the documents incorporated by reference in Part II,
Item 3 of Company's Form S-8 Registration Statement for the securities as well
as any other documents required to be delivered pursuant to SEC Rule 428(b) (17
CFR Section 230.428(b)). All requests are to be directed to the Company at the
address provided in paragraph (a)(4) above.

                                       11

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