Common use of INSOLVENCY OF THE COMPANY Clause in Contracts

INSOLVENCY OF THE COMPANY. Escrow Agent shall not pay the Escrow Funds to the Officer if the Company is Insolvent. The Board of Directors and the Chief Executive Officer of the Company shall have the duty to inform Escrow Agent in writing of the Company’s Insolvency. If a person claiming to be a creditor of the Company alleges in writing to Escrow Agent that the Company has become Insolvent, Escrow Agent shall determine whether the Company is Insolvent and, pending such determination, Escrow Agent shall not make any payments under Section 4 hereof. If at any time Escrow Agent has determined that the Company is Insolvent, Escrow Agent shall hold the Escrow Funds for the benefit of the Company’s general creditors. Nothing in this Escrow Agreement shall in any way diminish any rights of the Officer to pursue his rights as a general creditor of the Company with respect to benefits due pursuant to this Escrow Agreement, the Employment Agreement or otherwise.