Document:

ex10-4.htm

    
      

      

    

    Exhibit 10.4

    

    

     

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    
      InnerLight
Worldwide, Inc. - Independent Representative Agreement

      

      I hereby
request application to become an Independent Business Consultant (“IBC”) for
InnerLight Worldwide, Inc. (“The Company”), and agree to be bound by the terms
and conditions set forth in this Independent Business Consultant Agreement, the
Company Policies and Procedures as well as the Company Compensation Plan which
are incorporated herein by reference.

      

      
        	
                1. I
      am of legal age, in the state or Country in which I currently reside, to
      enter into this Agreement.

                I
      understand that this Application and Agreement is not effective until it
      is accepted by the Company.
      I acknowledge that the acceptance of this Agreement the Company does not
      institute the sale
      of a franchise or the grant of a specific right to a particular
      territory.

                 

                2.
      As an Independent Business Consultant (“IBC”), I understand and agree that
      the term of this Agreement
      is for a period of twelve (12) months from the date of acceptance by the
      Company, and  

                must
      apply for a renewal of my contract annually in accordance with the
      Company’s Policies and Procedures.
      In the event I fail to renew my Independent Business Consultant (“IBC”)
      status, all of my
      rights and privileges to commissions, performance bonuses, and products
      will terminate upon the expiration
      of this Agreement, and I may not apply for Independent Business Consultant
      (“IBC”) status
      for a period of six (6) months. Upon expiration of this Agreement, all of
      my rights and benefits as
      an Independent Business Consultant (“IBC”), shall return to and become the
      property of the Company.

                 

                3.
      Upon acceptance of my application by the Company, I will be eligible to
      contract for the sale of products
      and services offered by the Company as well as receive commissions in
      therewith in accordance
      with this Agreement, the Policies and Procedures, and the Compensation
      Plan. I am at liberty
      to set my own hours of operation and to determine my own locations and
      methods of selling as
      long as they do not violate the Company’s Policies and Procedures. For
      notification purposes, my address
      as indicated on this Agreement shall be deemed to be my correct address
      unless and until written
      notification of a change of address is provided in writing by me to the
      Company. 

                 

                4. I
      acknowledge that I am an independent contractor, not an agent, employee,
      or franchise of the Company,
      and that I will not be treated as an employee in regard to any laws
      covering employees, including
      but not limited to the Federal Unemployment Tax Act, the Federal Insurance
      Contribution Act,
      the Social Security Act, State Unemployment Tax Acts or State Employment
      Security Acts. I agree
      that I am responsible for all applicable federal and state income taxes,
      self-employment taxes, sales
      taxes, and/or local license fees, which may become due as a result of my
      activities under this Agreement.

                 

                5.
      As an Independent Business Consultant (“IBC”), I understand and
      acknowledge that my earnings or
      profits will consist solely of commissions, performance bonuses and/or
      overrides directly relating to
      the sale of the Company’s products and services. I am not guaranteed any
      earnings or profits and I certify
      that neither the Company nor any other person has made any warranty claims
      of profits or expected
      earnings that might be derived from my involvement as an Independent
      Business Consultant
      (“IBC”). I hereby agree to represent the Company’s Compensation Plan , its
      products and/or
      services fairly and completely, emphasizing that retail sales are a
      requirement, that no purchase
      of products or services is required at any level and that no earnings are
      guaranteed by participating
      in the Company’s marketing program. I agree to refrain from making any
      representation
      that an Independent Business Consultant (“IBC”) may earn a guaranteed or
      specified amount
      of income, that sponsoring in any way is easy to obtain or retain or that
      an Independent Business
      Consultant (“IBC”) is guaranteed to succeed in this Company’s marketing
      program.

                 

                6. I
      acknowledge that the Company’s marketing program is built upon retail
      sales to the consumer. The
      Company also understands that Independent Business Consultants (“IBCs”)
      may wish to purchase
      product and or service in reasonable amounts for their own personal or
      family consumption.
      With this in mind, a retail sale shall include sales of purchase products
      and services to Independent
      Business Consultants (“IBCs”) for personal or family use which are not
      made for purposes
      of qualification, advancement or earning of commissions and or performance
      bonuses, as well
      as sales to non-participants. It is a policy of the Company, however, to
      strictly prohibit the purchase
      of a product or large quantities of inventory in unreasonable amounts
      solely for the purpose of
      qualifications, advancement or earning of a commission and or performance
      bonus under the Compensation
      Plan. As an Independent Business Consultant (“IBC”), I understand and
      agree that I shall
      not inventory load and/or encourage others to load up on inventory. I
      further agree that Independent
      Business Consultants (“IBCs”), must fulfill all Qualification Rules,
      including all published
      personal and downline retail sales requirements, as well as supervisory
      responsibilities, to qualify
      for performance bonuses, overrides or advancements. Independent
      Representative (” IR”)
      purchases shall automatically be modified to comply with the exemption
      requirements set forth in any
      applicable state laws regulating business opportunities.

                 

                7. I
      understand that the Company may instantaneously terminate any Independent
      Business Consultant
      (“IBC”) who discredits the Company’s name, violates any requirement set
      forth in this Agreement,
      the Policies and Procedures, the Compensation Plan or other literature of
      the Company, or
      misrepresents the Company’s products and services or business opportunity
      by making claims contrary
      to the company’s literature.

                 

                8. I
      have the right to cancel my involvement in this marketing program at any
      time and for any reason
      by providing written notice to the Company. Upon notification of my
      termination, the Company
      will repurchase any inventory I may have in accordance with the then
      current Policies and Procedures.
      All of my rights and privileges to compensation, performance bonuses,
      commissions, and
      products or services will terminate upon cancellation of this Agreement,
      and I may not renew my
      status as an Independent Business Consultant (“IBC”) for a period of six
      (6) months. Upon termination
      of this Agreement, all of my rights and benefits as an Independent
      Business Consultant (“IBC”),
      shall return to, and become the property of, the Company.

                 

                9.
      As an Independent Business Consultant (“IBC”) of the Company, I agree to
      keep accurate records and
      to avoid any misleading, or unethical practices. Furthermore, I agree to
      comply with all Federal, State
      and local laws and/or statutes governing the sale or distribution of the
      products and services offered
      by the Company, including but not limited to, licenses or permits which
      may be required of me
      to perform my duties under this Agreement.

                 

                10.
      (A) I have carefully reviewed the Company’s Policies and Procedures and
      Compensation Plan. I further
      acknowledge that they are incorporated as part of this Agreement in their
      present form and as they
      may hereafter be amended from time to time. I further agree and understand
      that the Company may,
      in its sole discretion, make periodic changes to its Policies and
      Procedures and Compensation Plan
      and I agree to be bound by said changes when notified by the
      Company.

                (B)
      Notification may be given by updates available at the Company website at
      www.innerlightinc.com
      . As an Independent Business Consultant (“IBC”) you are responsible to
      maintain
      Company updates, including but not limited to, Policies and Procedures and
      the Compensation
      Plan.

              	 	
                11.
      I acknowledge the specific provisions of the Policies and Procedures
      regarding: a) Non-
      Competition; b) Confidentiality; c) Sale of my position, and I
      specifically agree to be bound thereby.

                 

                12.
      I agree that I will place emphasis on the sales of the Company’s products
      and services to the retail
      customers. I further agree that I will comply with the Seventy Percent
      rule (as outlined in the Compensation
      Plan), regarding requisite levels of sales to retail customers. In
      addition, I agree that the
      Company may randomly require me to provide proof of my retail sales
      activities.

                 

                13.
      I understand that no purchases or investments are necessary to enroll as
      an Independent Business Consultant
      (“IBC”). The Company will make available various sales and marketing
      literature and /or promotional
      materials from time to time. However, I am not obligated to purchase any
      materials offered
      by the Company at any time. Product purchases may be returned for a refund
      in accordance with
      the then current Policies and Procedures.

                 

                14.
      As an Independent Business Consultant (“IBC”), I may elect to sponsor
      other Independent Business
      Consultants (“IBCs”), to the Company. I understand that I must perform a
      bona fide supervisory,
      distributive and selling function in the sale or delivery of products and
      services to the consumer
      and in the training of those Independent Business Consultants (“IBCs”) I
      sponsor. I agree I must
      have ongoing communication and contact with, and provide a management
      supervisory role to the
      people in my sales organization. I must be able to provide the Company
      with evidence of ongoing
      fulfillment of my Sponsor duties upon request. I acknowledge that: (a)
      distributor purchases by
      resident Independent Business Consultants (“IBCs”) in Georgia, Maine,
      North Dakota, Michigan, Indiana,
      and West Virginia during the first six (6) months of distributorship are
      limited to the sum of $495.00:
      and (b) purchases during the first 180 days of distributorship or six (6)
      months whichever period
      is longer, are limited as follows: Oklahoma, Indiana, South Dakota and
      Georgia residents the sum
      of $245.00: Texas, Indiana, and Iowa residents the sum of
      $496.00:Washington and Louisiana residents
      the sum of $295.00 and; Connecticut residents the sum of $195.00 during
      the first year of distributorship.

                 

                15.
      From time to time, I may come in contact with information concerning the
      Company, its products
      and services, its business, Independent Business Consultant (“IBC”) status
      and other matters
      associated with various individuals, groups or organizations other than
      the Company, including
      my Sponsor and other Independent Business Consultants (“IBCs”). To the
      extent that any such
      information conflicts with the terms and conditions set forth in this
      Agreement, the Policies and Procedures
      or the Compensation Plan, or other written or oral directives issued by
      the Company, I agree
      the Company’s terms and conditions shall be controlling in every
      case.

                 

                
                  16.
      The Company specifically reserves its sole proprietary interest in its
      name, logo, trademarks and copyrighted
      material to use items for its own business purposes. Therefore, I agree
      that I will not use the
      Company’s name, logo trademarks or copyrighted material in any form or
      fashion without the prior
      written permission of the Company. I understand that I can not repackage
      or re-label the Company’s
      products and services, or sell said products and services under any other
      name or label. I further
      agree not to reproduce, sell or use, for the purpose of advertising,
      promoting, or describing the
      Company’s products and services or other programs, any written, recorded,
      or other materials that
      have been approved or provided by the Company.

                   

                  17.
      I understand and agree that prior written approval from the Company is
      required for the following:
      a) To advertise Company products and services; b) For there to be more
      than one Independent
      Business Consultant (“IBC”) in an immediate family, household or business;
      or, c)
      Issuance of a position in a partnership or corporate name. In any case the
      Company reserves the right
      to approve or refuse such action.

                   

                  18.
      I agree to indemnify and hold the company, its officers, members,
      stockholders, employees and any
      vendor or supplier of the Company harmless from any and all claims damages
      and expenses, including
      any reasonable attorneys fees, arising out of my actions or conduct in
      violation of this Agreement,
      the Policies and Procedures and the Compensation Plan.

                   

                  19.
      I agree that neither the Company, nor any supplier, vendor or other
      company with whom the Company
      does business shall be liable under any circumstances for any indirect,
      special, punitive, compensatory
      or consequential damages or loss of production or profits which may result
      from any cause,
      including, but not limited to, breach of warranty, delay, act, error or
      omission. The obligations of
      the Company and any such supplier, vendor or company are limited to the
      use of best efforts to process
      customer orders.

                   

                  20.
      This Agreement shall be governed by the laws of the state of Utah.
      Disputes, claims and other matters
      between the parties to this Agreement shall be exclusively resolved by an
      action commenced in
      the 4th
      District Court of the State of Utah, located in Provo Utah.
      The Independent Representative
      (IR) and the Company agree to the jurisdiction and venue of this court for
      any disputes that may arise
      between them.

                   

                  21.
      I understand that federal, state and/or local regulatory agencies do not
      endorse or approve any product,
      service, membership program or compensation program of direct marketing
      companies such as
      the one provided by the Company. Therefore, I agree that I will not
      represent that the Company, its
      products and services, or the Compensation Plan has been approved by any
      regulatory agency. 

                   

                  22.
      This Agreement, together with the Policies and Procedures and the
      Compensation Plan, constitutes
      the entire agreement between myself and the Company, and shall not be
      modified or amended
      except in writing and signed by the Company. I understand that this
      Agreement may not be transferred
      or assigned without the prior written consent of the Company. This
      agreement shall be binding
      upon and inure to the benefit of the heirs, successors and permitted
      assigns of the parties hereto.
      If any provision of this Agreement is determined by any authority of
      competent jurisdiction to
      be invalid or unenforceable in part, or in whole for any reason
      whatsoever, the validity of the remaining
      provisions or portions hereof shall not be affected thereby.

                   

                  ANYONE
      PARTICIPATING IN THIS MULTILEVEL MARKETING PROGRAM HAS THE RIGHT TO CANCEL
      HIS/HER
      PARTICIPATION, FOR ANY REASON AT ANY TIME, REGARDLESS OF THE REASON, BY
      PROVIDING
      WRITTEN NOTICE TO THE COMPANY AT ITS PRINCIPAL PLACE OF
      BUSINESS.

                   

                  REV
      030308/052101W

                  Page
      2 of 2ex10-5.htm

    
      

      

    

    
      Exhibit
10.5

      ESCROW
AGREEMENT

      

      

           AGREEMENT
made this 18th day of
July, 2008 by and between INNERLIGHT HOLDINGS, INC., 867 East 2260 South, Provo
UT 84606 (the “Issuer”), and William J. Reilly, Esq., 401 Broadway, Suite 912,
New York, NY 10013 (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 (the "Registration Statement") covering a
proposed public offering of its Securities (collectively, the "Securities", and
individually, a "Unit") as described on the Registration Statement;
and

      

           WHEREAS,
the Issuer proposes to offer the Securities, for sale to the public on a "best
efforts, all or none basis" directly by its Officers and Directors, at the price
per Unit all as set forth in the Registration Statement; and

      

           WHEREAS,
the Issuer proposes to establish an escrow account with the Escrow Agent in
connection with such public offering and the Escrow Agent is willing to
establish such escrow account on the terms and subject to the conditions
hereinafter set forth;

      

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

      

           1. 
   Registration Statement. Each capitalized term not otherwise
defined in this Agreement shall have the meaning set forth for such term on the
Registration Statement which is attached to this Agreement and is incorporated
by reference herein and made a part hereof (the "Registration
Statement").

      

           2.   
 Establishment of Escrow Account.

      

           2.1  
The Escrow Agent shall establish a non- interest-bearing, FDIC-Insured Escrow
account at Sovereign Bank, New York, NY, and bearing the designation, set forth
on the Registration Statement (the "Escrow Account").

      

           2.2   The
Issuer 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 amount for deposit in the Escrow Account prior to its
receipt of such notification.

      

           2.3   The
Offering Period, which shall be deemed to commence on the Effective Date, shall
consist of the number of calendar days or business days set forth on the
Registration Statement. The Offering Period shall be extended by an Extension
Period only if the Escrow Agent shall have received written notice thereof at
least five (5) 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
the 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." After the Termination Date, the
Issuer shall not deposit, and the Escrow Agent shall not accept, any additional
amounts representing payments by prospective purchasers.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

           3.  
 Deposits in the Escrow Account.

      

           3.1  Upon
receipt, the Issuer shall promptly deposit all monies received from investors to
the Escrow Agent. All of these deposited proceeds (the "Deposited Proceeds")
shall be in the form of checks or money orders. All checks or money orders
deposited into the Escrow Account shall be made payable to "William J. Reilly,
Esq., as Escrow Agent." Any check or money order 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 Issuer
(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.
The Deposited Proceeds and interest or dividends thereon, if any, shall be held
for the sole benefit of the purchasers of the securities.

      

           3.2  The
Deposited Proceeds shall be invested in either

      

              (a)
an obligation that constitutes a "deposit" as that term is defined in Section
(3)(1) of the Federal Deposit Insurance Act;

      

              (b)
securities of any open-end investment company registered under the Investment
Company Act of 1940 that holds itself out as a money market fund meeting the
conditions of paragraphs (c)(2), (c) (3), and (c)(4) of Rule 2a-7 under the
Investment Company Act; or

      

              (c)
securities that are direct obligations of, or obligations guaranteed as to
principal or interest by, the United States.

      

           3.3  Simultaneously
with each deposit into the Escrow Account, the Issuer shall inform the Escrow
Agent by confirmation slip or other writing of the name and address of the
prospective purchaser, the number of Securities subscribed for by such
purchaser, and the aggregate dollar amount of such subscription (collectively,
the "Subscription Information").

      

           3.4  The
Escrow Agent shall not be required to accept for deposit into the Escrow Account
checks which are not accompanied by the appropriate Subscription Information.
Checks and money orders 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.

      

           3.5  The
Escrow Agent shall be required to accept any amounts representing payments by
prospective purchasers, whether by check or money order, and to deposit same
into the Escrow Account not later than the second business day following
receipt.

      

           3.6  Interest
or dividends earned on the Deposited Proceeds, if any, shall be held in the
Escrow Account until the Deposited Proceeds are released in accordance with the
provisions of Section 4 of the Escrow Agreement. If the Deposited Proceeds are
released to a purchaser of the securities, the purchaser shall receive interest
or dividends earned, if any, on such Deposited Proceeds up to the date of
release. If the Deposited Proceeds held in the Escrow Account are released to
the Company, any interest or dividends earned on such funds up to the date of
release may be released to the Company.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

           3.7  The
Issuer shall deposit the Securities directly into the Escrow Account promptly
upon issuance (the "Deposited Securities"). The identity of the purchaser of the
Securities shall be included on the Common Stock and Warrant
certificates.

      

           3.8  The
Deposited Securities shall be held for the sole benefit of the purchasers. No
transfer or other disposition of Securities held in the Escrow Account or any
interest related to such Securities shall be permitted other than by will or the
laws of descent and distribution, or pursuant to a qualified domestic relations
order as defined by the Internal Revenue Code of 1986, as amended, or Title I of
the Employee Retirement Income Security Act, or the rules
thereunder.

      

           3.9  The
Escrow Agent shall refund any portion of the Deposited Proceeds prior to
disbursement of the Deposited Proceeds in accordance with Section 4 hereof upon
instructions in writing signed by the Issuer.

      

           4. 
  Disbursement from the Escrow Account.

       

           4.1  The
Deposited Proceeds may be released to the Company and the Securities delivered
to the purchaser or other registered holder only at the same time as or
after:

      

              (a)
the Escrow Agent has received a signed representation from the Company, together
with an opinion of counsel that the following events have already occurred and
the following requirements have already been met:

      

             (i)
Discloses the results of the initial offering, including but not limited
to:

      

           (A) 
The gross offering proceeds received to date, specifying the amounts paid for
underwriter commissions, underwriting expenses and dealer allowances, if any,
amounts disbursed to the Company, and amounts remaining in the Escrow Account;
and

      

           (B) 
The specific amount, use and application of funds disbursed to the Company to
date, including, but not limited to, the amounts paid to officers, directors,
promoters, controlling Unitholders or affiliates, either directly or indirectly
specifying the amounts and purposes of such payments; and

      

        
   (iii) Discloses the terms of the offering as described
pursuant to Section 4 of this Escrow Agreement.

      

                (2)
The terms of the offering provided, and the Company satisfied, the following
conditions:

      

         (i)
Within five business days after the effective date of the post-effective
amendment(s), the Company shall send by first class mail or other equally prompt
means, to each purchaser of securities held in escrow, a copy of the prospectus
contained in the post-effective amendment and any amendment or supplement
thereto;

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

         (ii)
Each purchaser shall have no fewer than 20 business days and no more than 45
business days from the effective date of the post-effective amendment to notify
the Company in writing that the purchaser elects to remain an investor. If the
Company has not received such written notification by the 45th business day
following the effective date of the post-effective amendment, funds and interest
or dividends, if any, held in the Escrow Account shall be sent by first class
mail or other equally prompt means to the purchaser within five business
days;

      

         (iii)
The acquisition(s) meeting the criteria set forth in paragraph (a) (1) of this
Section 4 will be consummated if a sufficient number of purchasers confirm their
investments; and

      

         (iv)
If a consummated acquisition(s) meeting the requirements of this section has not
occurred by a date 18 months after the Effective Date, the Deposited Funds shall
be returned by first class mail or equally prompt means to the purchaser within
five business days following that date.

      

         (b)
Funds held in the Escrow Account may be released to the Company and securities
may be delivered to the purchaser or other registered holder identified on the
deposited securities only at the same time as or after consummation of an
acquisition(s) meeting the requirements set forth in Section 4.1(a)(1)(iii) of
this Escrow Agreement.

      

           4.2  In
the event that at the close of regular banking hours on the Termination Date
less than all of the Units have been sold, the Escrow Agent shall promptly
refund to each prospective purchaser the amount of payment received from such
purchaser held in Escrow without interest thereon or deduction therefrom, and
the Escrow Agent shall notify the Issuer of its distribution of the Deposited
Proceeds.

      

           4.3  In
the event that at any time up to the close of banking hours on the Termination
Date all of the Units have been sold, the Escrow Agent shall notify the Issuer
of such fact in writing within a reasonable time thereafter. The Escrow Agent
shall hold the Deposited Proceeds until the events described in Section 4.1 of
this Escrow Agreement take place.

      

           4.4  Upon
disbursement of the Deposited Proceeds pursuant to the terms of this Section 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 Deposited Proceeds.

      

           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 not be responsible for the performance by the Issuer of its
obligations under this Agreement.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

           5.2  The
Escrow Agent shall not be required to accept from the Issuer any Subscription
Information pertaining to prospective purchasers unless such Subscription
Information is accompanied by checks or money orders representing the payment of
money, nor shall the Escrow Agent be required to keep records of any information
with respect to payments deposited by the Issuer except as to the amount of such
payments; however, the Escrow Agent shall notify the Issuer within a reasonable
time of any discrepancy between 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.

      

           5.3  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 Issuer any check received which is dishonored, together with
the Subscription Information, if any, which accompanied such check.

      

           5.4  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 of any
person purporting to give any such notice or instructions or to execute any such
certificate, instrument or other document. The Escrow Agent must, however,
determine for itself whether the conditions permitting the release of the funds
in the Escrow Account have been met.

      

           5.5  In
the event that the Escrow Agent shall be uncertain as to its duties or rights
hereunder or shall receive instructions with respect to the Escrow Account or
the Deposited Proceeds which, in its sole determination, are in conflict either
with other instructions received by it or with any provision of this Agreement,
the Escrow Agent, at its sole option, may deposit the Deposited Proceeds (and
any other amounts that thereafter become part of the Deposited Proceeds) with
the registry 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
Deposited Proceeds with the registry of any court, the Escrow Agent shall be
relieved of all further obligations and released from all liability
hereunder.

      

           5.6  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. 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.

      

           5.7  The
Escrow Agent shall have no responsibility at any time to ascertain whether or
not any security interest exists in the Deposited Proceeds or any part thereof
or to file any financing statement under the Uniform Commercial Code with
respect to the Deposited Proceeds or any part thereof.

      

           5.8  The
Escrow Agent shall determine whether or not the Offering has been successful,
and if it determines that less than all of the Securities being offered have
been sold, thus rendering the Offering unsuccessful, the Escrow Agent shall
return the proceeds of the Offering to the investors on a pro-rata
basis.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

           6.  
 Amendment; Resignation. This Agreement may be altered or amended only with
the written consent of the Issuer and the Escrow Agent. The Escrow Agent may
resign for any reason upon seven (7) business days written notice to the Issuer.
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 Deposited
Proceeds, but its only duty shall be to hold the Deposited Proceeds for a period
of not more than ten (10) 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 and such successor escrow agent, the resigning Escrow Agent shall pay
over to the successor escrow agent the Deposited Proceeds, 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 and a successor escrow agent, then the resigning Escrow Agent shall
promptly refund the amount in the Deposited Proceeds to each prospective
purchaser without interest thereon or deduction therefrom, and the resigning
Escrow Agent shall notify the Issuer in writing of its liquidation and
distribution of the Deposited Proceeds; 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 for any expenses incurred in connection with its resignation, transfer of
the Deposited Proceeds to a successor Escrow Agent or distribution of the
Deposited Proceeds pursuant to this Section 6.

      

           7. 
  Representations and Warranties. The Issuer hereby represents and
warrants 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 Deposited Proceeds 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 Deposited Proceeds or any part thereof.

      

           7.3  The
Subscription Information submitted with each deposit shall, at the time of
submission and at the time of the disbursement of the Deposited Proceeds, be
deemed a representation and warranty that such deposit represents a bona fide
sale to the purchaser described therein of the amount of Securities set forth in
such Subscription Information.

      

           7.4  All
of the information contained in the Registration Statement is, as of the date
hereof and will be, at the time of any disbursement of the Deposited Proceeds,
true and correct.

      

           8.  
 Fees and Expenses. The Escrow Agent shall be entitled to the Escrow Agent
Fee set forth in the Registration Statement, payable upon execution of this
Agreement. In addition, the Issuer agrees to reimburse the Escrow Agent for any
reasonable expenses incurred in connection with this Agreement, including, but
not limited to, reasonable counsel fees, but not including the review of this
Agreement.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

           9.
   Indemnification and Contribution.

      

           9.1  The
Issuer (referred to as the "Indemnitor") agrees to indemnify the Escrow Agent
and its officers, directors, employees, agents and Unitholders (jointly and
severally 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 of the Indemnitees.

      

           9.2  If
the indemnification provided for in this Section 9 is applicable, but for any
reasons held to be unavailable, the Indemnitor 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 Indemnitor.

      

           9.3  Any
Indemnitee which proposes to assert the right to be indemnified under this
Section 9, promptly after receipt of notice of commencement of any action, suit
or proceeding against such Indemnitee in respect of which a claim is to be made
against the Indemnitor under this Section 9, will notify the Indemnitor of the
commencement of such action, suit or proceeding, enclosing a copy of all papers
served, but the omission so to notify the Indemnitor of any such action, suit or
proceeding shall not relieve the Indemnitor from any liability which they may
have to any Indemnitee otherwise than under this Section 9. In case any such
action, suit or proceeding shall be brought against any Indemnitee and it shall
notify the Indemnitor of the commencement thereof, the Indemnitor shall be
entitled to participate in and, to the extent that they shall wish, to assume
the defense thereof, with counsel satisfactory to such Indemnitee. The
Indemnitee shall have the right to employ its counsel in any such action, but
the fees and expenses of such counsel shall be at the expense of such Indemnitee
unless (i)the employment of counsel by such Indemnitee has been authorized by
the Indemnitor, (ii) the Indemnitee shall have concluded reasonably that there
may be a conflict of interest among the Indemnitor and the Indemnitee in the
conduct of the defense of such action (in which case the Indemnitor shall not
have the right to direct the defense of such action on behalf of the Indemnitee)
or (iii) the Indemnitor in fact shall not have employed counsel to assume the
defense of such action, in each of which cases the fees and expenses of counsel
shall be borne by the Indemnitor.

      

           9.4  The
Indemnitor agrees to provide the Indemnitees with copies of all registration
statements pre- and post-effective amendments to such registration statements
including exhibits, whether filed with the SEC prior to or subsequent to the
disbursement of the Deposited Proceeds.

      

           9.5  The
provisions of this Section 9 shall survive any termination of this Agreement,
whether by disbursement of the Deposited Proceeds, 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 York 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 Deposited Proceeds 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 Issue, at its address set forth on
the Registration Statement, and if to the Escrow Agent, to its office address
set forth above.

      

           12.  Severability.
If any provision of this Agreement or the application thereof to any person or
circumstance shall be determined to be unpaid 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.  Closing.
The closing shall take place in accordance with the Terms of The Offering set
forth in the Registration Statement.

      

           14.  Pronouns.
All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular, or plural as the context may
require.

      

           15.  Captions.
All captions are for convenience only and shall not limit or define the term
thereof.

      

           16.  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 herein.

      

           17.  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
herewith.

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

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

      

      
        	 
      	
                THE
      ISSUER: INNERLIGHT HOLDINGS, INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                By:__/S/ Kevin P.
      Brogan__________

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                ESCROW
      AGENT: WILLIAM J. REILLY, ESQ.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                By: /S/ William J.
      Reilly_____       
      ___

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