Common use of Escrow Disbursements Clause in Contracts

Escrow Disbursements. The Escrow Deposit is comprised of two (2) components, (a) $239,653.00 (the "Leasing Deposit") representing minimum rent, common area maintenance, taxes and insurance payments for a twelve (12) month period, computed on the basis of 8,400 square feet of vacant space (the "Vacant Space"); and (b) an amount equal to $42,000.00 (the "TI/Leasing Deposit") for tenant improvement and leasing commissions costs computed on the basis of $6.00 per square foot vacant space at the Property. The Leasing Deposit shall be held in escrow by Chicago Title subject to the terms and conditions of this Agreement and shall be disbursed as hereinafter provided. Commencing on the day of closing, and continuing on the first day of each calendar month thereafter for twelve (12) months from the Closing Date (provided that if Closing occurs on a day other than the first day of the month, such first payment shall be prorated accordingly), Buyer shall be entitled to receive from the Leasing Deposit, an amount equal to one twelfth (1/12) of the initial balance of the Leasing Deposit, which monthly payment shall continue until the earlier of (x) the date the Leasing Deposit has been disbursed in full or (y) with respect to any portion of the Vacant Space, the date that that portion of the Vacant Space has been leased, all leasing commissions and tenant improvements costs and expenses incurred in connection therewith have been paid in full, the tenant has occupied the space, is open for business, has commenced regularly scheduled monthly rent payments, and a certificate of occupancy has been issued (with respect to each Vacant Space the "Lease Up Event"). At such time as the Lease Up Event has occurred with respect to a particular space and Buyer has received all requisite payments due hereunder, the balance of the Leasing Deposit, if any, with respect to such space, shall be released to Seller. The TI/Leasing Deposit shall be held in escrow by Chicago Title subject to the terms and conditions of this Purchase Agreement and shall be disbursed as hereinafter provided. In the event that a lease is entered into for any Vacant Space of the Property, then the leasing commissions and tenant improvement costs payable with respect to such lease shall be disbursed from the TI/Leasing Deposit to the party entitled to receive payment of the same; provided, however, (x) disbursements from the TI/Leasing Deposit with respect to tenant improvements costs shall be limited to the rate of $3.00 per square foot in any one Vacant Space, unless otherwise approved by Buyer, and (y) disbursements from the TI/Leasing Deposit with respect to leasing commissions shall be limited to the rate of $3.00 per square foot in any one Vacant Space, unless otherwise approved by Buyer. In the event that there are any sums remaining in the TI Leasing Deposit on the date which is 12 months from the Closing Date, then such sums shall be remitted to Buyer.

Escrow Disbursements. The Escrow Deposit is comprised of two (2) components,. (a) $239,653.00 429,525.00 (the "Leasing Deposit") representing minimum rent, common area maintenance, taxes and insurance payments for a twelve an eighteen (1218) month period, computed on the basis of 8,400 square feet of and allocated as follows: (i) $213,960.00 with respect to that certain vacant space (the "Vacant ▇▇▇▇▇ ▇▇▇▇ Space")) aggregating 8,000 square feet; (ii) $215,565.00 representing $20.53 per square foot for a certain 7,000 square foot vacant space at the property computed on the basis of 18 months; and, (b) an amount equal to $42,000.00 378,800.00 (the "TI/Leasing Deposit") for tenant improvement and leasing commissions costs computed on and allocated as follows: (i) $126,000.00 representing $18.00 per square foot for the basis of $6.00 per 7,000 square foot vacant space at the Property; and, (ii) $252,800.00 for tenant improvements and leasing commissions pursuant to an executed lease and leasing agreement pertaining to the ▇▇▇▇▇ ▇▇▇▇ Space which Seller represents and warrants to be the full amount due in respect thereof. Escrow Agent shall retain the Escrow Deposit in the account, and shall cause the same to be paid in the manner described herein. The ▇▇▇▇▇ ▇▇▇▇ Space and the 7,000 square foot vacant space referenced in 2(a)(ii) are hereinafter collectively referred to as the "Vacant Space"). Buyer shall receive a prorated credit (calculated in accordance with the allocations described in the immediately following sentence) from the Escrow Deposit on the date of Closing (as defined in the Contract) for the rent and reimbursable expenses attributable to the Vacant Space from the date of Closing through the end of the month in which Closing occurs. The Leasing Deposit shall be held in escrow by Chicago Title subject to the terms and conditions condition of this Agreement and shall be disbursed as hereinafter provided. Commencing on the day of closing, and continuing on the first day of each calendar month thereafter for twelve eighteen (1218) months from the Closing Date (provided that if Closing occurs on a day other than the first day of the month, such first payment shall be prorated accordingly)Date, Buyer shall be entitled to receive receive, without further direction from Seller, from the Leasing Deposit, an amount equal to one twelfth eighteenth (1/121/18) of the initial balance of the Leasing Deposit, which monthly payment shall continue until the earlier of (x) the date the Leasing Deposit has been disbursed in full or (y) with respect to any portion of the Vacant Space, the date that that portion of the Vacant Space has been leased, all leasing commissions and tenant improvements costs and expenses incurred in connection therewith have been paid in full, the tenant has occupied the space, is open for business, business and has commenced regularly scheduled monthly rent payments, and a certificate of occupancy has been issued payments (with respect to each Vacant Space the "Lease Up Event"). At such time as the Lease Up Event has occurred with respect to a particular space and Buyer has received all requisite payments due hereunder, the balance of the Leasing Deposit, if any, with respect to such space, shall be released to Seller. Notwithstanding anything to the contrary contained herein, in the event that a tenant in a Vacant Space has commenced paying rental under its lease but the other conditions for the Lease Up Event for such space has not occurred, the date of such first rental payment shall be known as the "Potential Escrow Release Date". Upon the occurrence of the earlier of (i) the date of the 3rd rental payment from such tenant (ii) the Lease Up Event, the balance of the Leasing Deposit, if any, with respect to such space, shall be released to Seller effective as of the Potential Escrow Release Date. Buyer and Seller agree to jointly instruct Escrow Agent upon the happening of a Lease Up Event and/or a Potential Escrow Release Date. The TI/Leasing Deposit shall be held in escrow by Chicago Title subject to the terms and conditions of this Purchase Agreement and shall be disbursed as hereinafter provided. In the event that a lease is entered into for any Vacant Space of the Property, then upon the direction of Buyer, the leasing commissions and tenant improvement costs payable with respect to such lease shall be disbursed from the TI/Leasing Deposit to the party entitled to receive payment of the same; provided, however, (x) disbursements from the TI/Leasing Deposit with respect to tenant improvements costs shall be limited to the rate of $3.00 15.00 per square foot in any one Vacant Space, unless otherwise approved by Buyer, and (y) disbursements from the TI/Leasing Deposit with respect to leasing commissions shall be limited to the rate of $3.00 per square foot in any one Vacant Space, unless otherwise approved by Buyer. In the event that there are any sums remaining in the TI Leasing Deposit on the date which is 12 18 months from the Closing Date, then such sums shall be remitted to Buyer.