Common use of Escrow Disbursements Clause in Contracts

Escrow Disbursements. 3.1 In the event the Escrow Agent has not received and cleared a total of $125,000 in Subscription Funds on the Termination Date, or the Company has not delivered to the Escrow Agent a certificate that all other conditions precedent to the sale of the Common Stock have been satisfied, the Escrow Agent shall promptly refund to each Subscriber the Subscription Funds submitted on his behalf, together with interest, if any, earned on such Subscription Funds during the time the Subscription Funds have been collected and are available for investment. Escrow Agent shall distribute the interest earned on the Escrow Account to the Subscriber, pro rata, according to the amount and date of each deposit. Notwithstanding the foregoing, the Subscribers are not parties to this Escrow. No checks, funds or other property are to be disbursed to any Subscriber except in accordance with the provisions of this Section 3. 3.2 If the collected Subscription Funds on deposit in the escrow are more than $125,000 on the Termination Date, the Escrow Agent shall prepare a summary compilation that identifies each Subscriber, states the date when the Subscription was received by the Escrow Agent, and states the number of shares of common stock subscribed for. The Company shall then promptly review the compilation prepared by the Escrow Agent and reject sufficient subscriptions to eliminate any excess subscriptions and reduce the total Subscription Funds to exactly $125,000. The Company reserves the right to partially reject subscriptions and shall endeavor to reject subscriptions in a manner reasonably calculated to result in an even distribution of its Common Stock among the Subscribers. After completing this process, the Company shall prepare a definitive list that identifies each Subscriber and states the number of shares of Common Stock that will be sold to such Subscriber. 3.3 Upon receipt of the definitive subscription list prepared by the Company, Escrow Agent shall promptly remit to each Subscriber who has submitted a subscription that was rejected in whole or in part by the Company any excess Subscription Funds attributable to his Subscription, together with interest during the time the Subscription Funds have been collected and are available for investment. 3.2 When the Company has rejected any excess subscriptions, the excess Subscription Funds have been refunded to the Subscribers, the Escrow Agent has retained exactly $125,000 in Subscription Funds, and the Company has delivered to the Escrow Agent a certificate that all conditions precedent to the sale of the Common Stock have been satisfied, the Escrow Account shall close and all of the funds then on deposit in the Escrow Account shall then be promptly and directly transferred to the Rule 419 escrow that has been created by the Company and the Escrow Agent pursuant to an agreement of even date.

Escrow Disbursements. 3.1 In the event the Escrow Agent has not received and cleared a total of $125,000 20,000 in Subscription Funds on the Termination Date, or the Company has not delivered to the Escrow Agent a certificate that all other conditions precedent to the sale of the Common Stock have been satisfied, the Escrow Agent shall promptly refund to each Subscriber the Subscription Funds submitted on his behalf, together with interest, if any, earned on such Subscription Funds during the time the Subscription Funds have been collected and are available for investment. Escrow Agent shall distribute the interest earned on the Escrow Account to the Subscriber, pro rata, according to the amount and date of each deposit. Notwithstanding the foregoing, the Subscribers are not parties to this Escrow. No checks, funds or other property are to be disbursed to any Subscriber except in accordance with the provisions of this Section 3. 3.2 If the collected Subscription Funds on deposit in the escrow are more than $125,000 20,000 on the Termination Date, the Escrow Agent shall prepare a summary compilation that identifies each Subscriber, states the date when the Subscription was received by the Escrow Agent, and states the number of shares of common stock subscribed for. The Company shall then promptly review the compilation prepared by the Escrow Agent and reject sufficient subscriptions to eliminate any excess subscriptions and reduce the total Subscription Funds to exactly $125,00020,000. The Company reserves the right to partially reject subscriptions and shall endeavor to reject subscriptions in a manner reasonably calculated to result in an even distribution of its Common Stock among the Subscribers. After completing this process, the Company shall prepare a definitive list that identifies each Subscriber and states the number of shares of Common Stock that will be sold to such Subscriber. 3.3 Upon receipt of the definitive subscription list prepared by the Company, Escrow Agent shall promptly remit to each Subscriber who has submitted a subscription that was rejected in whole or in part by the Company any excess Subscription Funds attributable to his Subscription, together with interest during the time the Subscription Funds have been collected and are available for investment. 3.2 3.4 When the Company has rejected any excess subscriptions, the excess Subscription Funds have been refunded to the Subscribers, the Escrow Agent has retained exactly $125,000 20,000 in Subscription Funds, and the Company has delivered to the Escrow Agent a certificate that all conditions precedent to the sale of the Common Stock have been satisfied, the Escrow Account shall close and all of the funds then on deposit in the Escrow Account shall then be promptly and directly transferred to the Rule 419 escrow that has been created by the Company and the Escrow Agent pursuant to an agreement of even date.