Cam Cap Clause Samples
A Cam Cap clause sets a maximum limit on the amount of capital that can be converted into equity during a financing round, typically in convertible note or SAFE agreements. This cap ensures that, regardless of the total investment or valuation, the conversion of debt to equity will not exceed a predetermined threshold, protecting existing shareholders from excessive dilution. By establishing this upper boundary, the Cam Cap clause provides predictability and fairness in ownership distribution, addressing concerns about disproportionate equity allocation during future funding events.
POPULAR SAMPLE Copied 18 times
Cam Cap. Notwithstanding any provision of this Lease to the contrary, for the calendar year commencing on January 1, 2013 and each year thereafter during the Term, Controllable Operating Expenses charged as part of Operating Expenses for any calendar year shall be subject to and limited by a cap (the “Cam Cap”), which cap shall equal the aggregate amount of all Controllable Operating Expenses that were charged as part of Operating Expenses for the prior calendar year or with respect to the Base Year were included in the determination of Operating Expenses for the Base Year, as increased by four percent (4%).