Document:

Unassociated Document

    EXHIBIT
      10.4

     

    Hawk
      Associates, Inc.

    227
      Atlantic Blvd

    Key
      Largo, FL 33037

    Tel:
      (305) 852-2383

    Fax:
      (305) 852-2378

    
      

       

    

    Frank
      N.
      Hawkins. Jr. Chief Executive Officer

    Julie
      W.
      Marshall, President

    Info@
      hawkassociates.com

    

    AGREEMENT
      made as of August 1, 2005 (the “Effective Date”) between Hawk
      Associates. Inc.,
      a
      Florida investor relations firm having its place of business at 227 Atlantic
      Blvd, Key Largo, FL 33037 (hereinafter referred to as “Hawk”) and IQ
      Micro
      with an
      address at 500 Australian Avenue South, Suite, 700, West Palm Beach, FL 33401
      (herein after referred to as the “Company”).

    

    WITNESSETH:

    

    WHEREAS,
      Hawk is engaged in the business of providing company identity, investor
      relations, financial media relations arid other appropriate consulting and
      advisory services; and

    

    WHEREAS,
      the Company is desirous of entering into an agreement utilizing Hawk services
      and expertise; and

    

    WHEREAS,
      the Company desires to accept such a relationship upon the terms and conditions
      hereinafter set forth;

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants herein
      contained, it is agreed as follows:

    

    1. The
      Company desires to retain the services of Hawk as an independent contractor
      to
      provide company identity, investor relations consulting and advisory services
      in
      numerous areas and Hawk desires to accept such engagement by Company, pursuant
      to the terms and conditions of this Agreement. These areas include providing
      the
      following services, but are not limited to:

    

    
      	 	
              ·

            	
              Development
                of a complete identity package that will include a company logo,
                stationery, business cards and other appropriate
                materials.

            

    

    
      	 	
              ·

            	
              Development
                of an Investor/Media Relations Wall Street Branding
                Strategy.

            

    

    
      	 	
              ·

            	
              Regular
                exposure on a Hawk investor-oriented website. Company has the unrestricted
                rights to link to the Hawk websites from its
                website.

            

    

    
      	 	
              ·

            	
              Creation
                and Regular Updating of Investment
                Profiles.

            

    

    
      	 	
              ·

            	
              Hawk
                Associates Website Virtual Investor Kit/Virtual Media
                Kit.

            

    

    
      	 	
              ·

            	
              Email
                Alerts

            

    

     

    
      Initials:
        /s/
        RR _____

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Hawk
                  Associates Consulting Agreement

              	
                Page
                  2 of
                  4

              

      

    

     

    
      	 	
              ·

            	
              Drafting
                and Management of Press Releases

            

    

    
      	 	
              ·

            	
              Road
                Shows/Investor Meetings

            

    

    
      	 	
              ·

            	
              PowerPoint
                Investor Presentation

            

    

    
      	 	
              ·

            	
              Quarterly
                Conference Calls (as appropriate)

            

    

    
      	 	
              ·

            	
              Crisis
                Management Consulting (as
                appropriate)

            

    

    
      	 	
              ·

            	
              Development
                and Maintenance of Investor/Media Email and Contact
                Database

            

    

    
      	 	
              ·

            	
              Annual
                Reports/Quarterly Reports to Shareholders (as
                appropriate)

            

    

    
      	 	
              ·

            	
              Expanded
                Company Backgrounder or Fact Sheets

            

    

    
      	 	
              ·

            	
              Mailings
                to Targeted Members of the Investment Community and Media (as
                appropriate)

            

    

    
      	 	
              ·

            	
              Handling
                of Investor information Queries

            

    

    

    2. In
      consideration for such services, Company will provide the following compensation
      to Hawk:

    

    
      	 	
              A.

            	
              Hawk
                will be granted five-year warrants on 250,000 shares of the Company’s
                common stock that will he priced at the closing price of the first
                full
                day of trading of IQ Micro with full piggy back rights to be registered
                with the company’s next registration statement after August 1, 2005. The
                warrants will expire at midnight July 31,
                2010.

            

    

    

    
      	 	
              B.

            	
              Hawk
                will be paid a retainer fee of $7,000 per month. In addition, Hawk
                will be
                reimbursed for normal out of pocket operating expenses such as phones,
                faxes, Fedexes, routine printing and routine postage incurred by
                Hawk on
                behalf of Company. These expenses will be invoiced at a rate of $400
                per
                month. These cash payments will begin with an initial payment of
                $14,800
                representing the first two months of the retainer covering August
                2005
                through September 2005 and basic expenses for that period. The next
                invoice will be issued on October 1, 2005. All subsequent billings
                will be
                one month in advance with travel expenses and other non-routine expenses
                billed in arrears. Invoices will be paid in full within 15
                days.

            

    

    

    
      	 	
              C.

            	
              Hawk
                will be paid a one-time payment of $4,000 for the creation of an
                identity
                package that will include a company logo and designs for stationary,
                business cards, etc.

            

    

    

    
      	 	
              D.

            	
              Company
                shall reimburse Hawk and its representatives for such reasonable
                out-of-pocket expenses as Hawk may incur in connection with the rendition
                of the services. Such items shall include, but not be limited to,
                all
                travel related expenses for Hawk to visit the Company facilities
                as well
                as business and entertainment expenses incurred with financial analysts,
                fund managers, brokers, potential investors, members of the media
                and/or
                financing candidates.

            

    

    

    
      	 	
              E.

            	
              Third
                party vendor expenses such as design fees, printing costs and related
                materials, database acquisitions, PR Newswire fees, conference calls
                and
                special promotions will be billed directly to Company by the vendors.
                Hawk
                will not benefit financially from a markup of these
                services.

            

    

    

      Initials:
        /s/
        RR _____

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Hawk
                Associates Consulting Agreement

            	
              Page
                3 of
                4

            

    

     

    3.
      The
      initial term (“Term”) of this Agreement shall be for a period of six months
      commencing on the Effective Date hereof and ending on January 31, 2006.
      Effective January 31, 2006, this contract will automatically renew for a period
      of 30 days every successive 30 days. After December 31, 2005, either party
      will
      have the right to terminate this agreement with 30 days notice.

    

    4.
      All
      proprietary information furnished to Hawk by Company shall be deemed to be
      confidential and shall be kept in strict confidence under appropriate
      safeguards. Company agrees that the Hawk website and profiles are protected
      by
      applicable copyright laws and will not be copied or otherwise used by Company
      without the written permission of Hawk.

    

    5.
      This
      consulting agreement, acceptable to both parties and representing the full
      and
      final execution of this document, contains the full agreement of the parties
      hereto concerning the subject matter hereof and shall not be modified, altered,
      changed or terminated except pursuant to a writing signed by all of the
      parties.

    

    6.
      This
      agreement shall be binding upon and inure to the benefit of the respective
      heirs, executors, administrators, successors and assigns of the parties
      below.

    

    7.
      The
      validity of this agreement shall be determined in accordance with the internal
      laws of the State of Florida.

    

    8.
      Any
      and all notices, requests, demands or other communications hereunder shall
      be in
      writing, and deemed given and received if delivered personally or sent by
      certified or registered mail, postage prepaid, return receipt requested to
      each
      of the parties hereto at the addresses hereinabove first written or such other
      addresses as may from time to time be designated by any of them in
      writing.

    
      
        Initials:
          /s/
          RR _____

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Hawk
                Associates Consulting Agreement

            	
              Page
                4 of
                4

            

    

    

    IN
      WITNESS WHEREOF, the Company and Hawk have executed and delivered this agreement
      as of the day ear first above written.

     

    
      	 	 	 
	 	By:  	/s/ Frank
              N.
              Hawkins
	 	Frank N. Hawkins, Jr.
	 	
              CEO

              Hawk Associates,
                Inc.

            

    

     

    Dated:
      Aug 11/05

    

    THE
      UNDERSIGNED HAVE READ

    AND
      HEREBY CONSENT AND
      AGREE

    TO
      THE
      TERMS OF THE FOREGOING

    AGREEMENT.

     

    
      
        	
                By:

              	
                /s/
                  Robert Rudman

              
	 	
                Robert
                  Rudman

              
	 	
                Chief
                  Financial Officer

              
	 	
                IQ
                  Micro Corp.

              

      

       

    

    

    cc:
      Julie
      W. Marshall, President, Hawk Associates, Inc.

    

    

    
      Initials:
        /s/
        RR _____EXHIBIT
          10.5

        

        ESCROW
          AGREEMENT

         

        THIS
          ESCROW AGREEMENT
          (this
“Agreement”)
          is
          made and entered into as of August 12, 2005 by and among IQ
          MEDICAL CORP., a
          Colorado corporation (the “Company”);
          the
          Buyer(s) listed on the Securities Purchase Agreement, dated the date
          hereof (also referred to as the “Investor(s)”),
          and
DAVID
          GONZALEZ, ESQ.,
          as
          Escrow Agent hereunder (the “Escrow
          Agent”).

         

         

        BACKGROUND

         

        WHEREAS,
          the
          Company and the Investor(s) have entered into a Securities Purchase Agreement
          (the “Securities
          Purchase Agreement”),
          dated
          as of the date hereof, pursuant to which the Company proposes to sell 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 Five Hundred Thousand Dollars ($500,000).
          The
          Securities Purchase Agreement provides that the Investor(s) shall deposit
          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,
          Escrow
          Agent has agreed 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.

         

        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
          expiration of twenty (20) days from the date of commencement of the Offering
          (unless extended by mutual written agreement between the Company and the
          Investor(s) with a copy of such extension to Escrow Agent); or

         

        (iii)          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.
          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.

         

        a.          The
          Company hereby acknowledges that the Escrow Agent is general counsel to
          the
          Investor(s), a partner in the general partner of the Investor(s), and counsel
          to
          the Investor(s) in connection with the transactions contemplated and referred
          herein. 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 referred herein, the Escrow Agent
          shall be permitted to continue to represent the Investor(s) and the Company
          will
          not seek to disqualify such counsel. 

         

        3.          Creation
          of Escrow Funds.
          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: IQ Medical Corp./Cornell Capital Partners, LP Escrow
          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:

         

        
          	
                  Bank:

                	
                  Wachovia,
                    N.A. of New Jersey

                
	
                  Routing
                    #:

                	
                  031201467

                
	
                  Account
                    #:

                	
                  2000014931134

                
	
                  Name
                    on Account:

                	
                  David
                    Gonzalez Attorney Trust Account

                
	
                  Name
                    on Sub-Account:

                	
                  IQ
                    Medical Corp./Cornell Capital Partners, LP Escrow
                    Account

                

        

         

        4.          Deposits
          into the Escrow Account.
          The
          Investor(s) agrees that they shall promptly deliver funds for the payment
          of the
          Convertible Debentures to Escrow Agent for deposit in the Escrow
          Account.

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        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 any signatory from the Company
          listed on the signature page to this Agreement and any signature from the
          Investor(s) that the Escrow Agent already has on file.

         

        b.          In
          the event Escrow Agent does not receive the amount of the Escrow Funds
          from the
          Investor(s), Escrow Agent shall notify the Company and the Investor(s).
          Upon
          receipt of payment instructions from the Company, Escrow Agent shall refund
          to
          each subscriber without interest the amount received from each Investor(s),
          without deduction, penalty, or expense to the subscriber. The purchase
          money
          returned to each subscriber shall be free and clear of any and all claims
          of the
          Company, the Investor(s) or any of their creditors.

         

        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:

         

        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.

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        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 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 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
          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.

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        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 harmless Escrow Agent and each 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.

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        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.

         

        12.          Expenses
          of Escrow Agent.
          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.

         

        13.          Warranties.

         

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

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        (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.

         

        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 Colorado 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.

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        (iv)          Robert
          V. Rudman 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 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

                

        

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        
          	
                  If
                    to Escrow Agent, to:

                	
                  Troy
                    Rillo, Esq.

                
	 	
                  101
                    Hudson Street - Suite 3700

                
	 	
                  Jersey
                    City, NJ 07302

                
	 	
                  Telephone:        (201)
                    985-8300

                
	 	
                  Facsimile:          (201)
                    985-8266

                
	 	 
	
                  If
                    to the Company, to:

                	
                  IQ
                    Medical Corp.

                
	 	
                  500
                    Australian Avenue South - Suite 700

                
	 	
                  West
                    Palm Beach, Florida 33401

                
	 	
                  Attention:          Robert
                    V. Rudman

                
	 	
                  Telephone:        (561)
                    514-0018

                
	 	
                  Facsimile:          (561)
                    514-0195

                
	 	 
	
                  With
                    a copy to:

                	
                  Gunster
                    Yoakley & Stewart, P.A.

                
	 	
                  Broward
                    Financial Centre - Suite 1400

                  500
                    East Broward Blvd.

                
	 	
                  Fort
                    Lauderdale, Florida 33394

                
	 	
                  Attention:          Robert
                    C. White, Jr. Esq.

                
	 	
                  Telephone:        (954)
                    468-1360

                
	 	
                  Facsimile:          (954)
                    888-2037

                

        

         

        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.

         

        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.

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        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 Funds pursuant
          to Joint Written Directions or the disbursement of all amounts in the Escrow
          Funds 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]

        

        

        

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

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

         

        
          	 	
                  IQ
                    Medical Corp.

                
	 	 
	 	
                  By:          /s/
                    Robert V.
                    Rudman                              

                
	 	
                  Name:          Robert
                    V. Rudman

                
	 	
                  Title:          CFO

                
	 	 
	 	 
	 	 
	 	
                  Cornell
                    Capital Partners, LP

                
	 	 
	 	
                  By:          Yorkville
                    Advisors, LLC

                
	 	
                  Its:          General
                    Partner

                
	 	 
	 	
                  By:          /s/
                    Mark
                    Angelo                              

                
	 	
                  Name:          Mark
                    Angelo

                
	 	
                  Title:          Portfolio
                    Manager

                
	 	 
	 	 
	 	
                  Escrow
                    Agent

                
	 	 
	 	
                  By:          /s/
                    David
                    Gonzalez                              

                
	 	
                  Name:          David
                    Gonzalez, Esq.

                

        

        

        
          
            
            

          

            11

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