Common use of Escrow of Units Clause in Contracts

Escrow of Units. If any portion of the Purchase Price is evidenced by a promissory note, the certificate(s), if any, for such portion or all of the Offered Units shall be endorsed in blank, or accompanied by a duly executed, blank stock power, and delivered, in escrow, to an entity which customarily acts as an escrow agent. The escrow agent shall hold such documents as security for repayment of the promissory note. The other Owners shall execute a stock pledge agreement which is reasonably acceptable to the Seller (or Personal Representative) and the other Owners that grants the Seller (or Personal Representative) a security interest in such Units. Upon receipt of notice from the other Owners that the promissory note has been paid in full, the escrow agent shall deliver all deposited certificates and related stock powers, if any, to the appropriate other Owners. As long as the other Owners are not in default under the payment of any promissory note given for the purchase of the Units, the other Owners will enjoy all of the rights accruing from the ownership of such Units.