Common use of Restricted Cash Account Clause in Contracts

Restricted Cash Account. Bionova and Savia agree that Bionova will deposit $300,000.00 into a restricted cash account for a period not to exceed one (1) year from the date hereof, which funds will be used exclusively to satisfy any third-party claims against any of the individuals who are covered by the directors' and officers' liability insurance policy provided for directors and officers of Bionova and its Subsidiaries as of the date hereof and any litigation expenses directly related to such claims; provided that such funds shall not be released from such account and so disbursed to the extent that any such individual receives the benefit of any proceeds under such directors' and officers' liability policy to discharge any portion of such claim.

Restricted Cash Account. Bionova and Savia agree that Bionova will deposit $300,000.00 into a restricted cash account for a period not to exceed one (1) year from the date hereof, which funds will be used exclusively to satisfy any third-party claims against any of the individuals who are covered by the directors' ’ and officers' ’ liability insurance policy provided for directors and officers of Bionova and its Subsidiaries as of the date hereof and any litigation expenses directly related to such claims; provided that such funds shall not be released from such account and so disbursed to the extent that any such individual receives the benefit of any proceeds under such directors' ’ and officers' ’ liability policy to discharge any portion of such claim.