Capital Increase and Additional Investment Clause Samples

Capital Increase and Additional Investment. 5.2.1 After completion of the equity transfer, Hurray! Music agree to make capital increase and additional investment (collectively, the “Capital Increase”) in an aggregate amount of US$ 5,400,000. After completion of the aforesaid Capital Increase, Hurray! Music shall hold 60% equity interest in ▇▇▇▇▇▇▇▇ Music, and Party B shall hold 40% equity interest in ▇▇▇▇▇▇▇▇ Music. The aforesaid Capital Increase in the amount of US$ 5,400,000 is based on the value of the company at US$ 7,200,000. If the amount of Capital Increase is N, the formula of the calculation shall be: (N + US$ 2,160,000) /(N + US$ 7,200,000) = 60%. 5.2.2 Payment of the Capital Increase The Capital Increase shall be paid in installments. The Parties agree, the Capital Increase shall be deposited in an escrow account supervised by the Parties. At the date of equity transfer, Hurray! Music shall pay to ▇▇▇▇▇▇▇▇ Music US$2,700,000 as the initial installment, in which RMB 750,000 shall be invested to increase the registered capital of ▇▇▇▇▇▇▇▇ Music, and the remaining portion of the Capital Increase shall be allocated to the capital reserve of ▇▇▇▇▇▇▇▇ Music. The second installment of the Capital Increase shall be in the amount of US$ 1,350,000. If the audited after-tax net profit of ▇▇▇▇▇▇▇▇ Music is more than US$ 600,000 during the period commencing from the Industrial and Commercial Registration Date and ending at six (6) months thereafter, Hurray! Music shall make the additional investment of US$ 1,350,000 to ▇▇▇▇▇▇▇▇ Music within thirty (30) days upon conclusion of the aforesaid six (6)-month period. The third installment of the Capital Increase shall be in the amount of US$ 675,000. If the audited after-tax net profit of ▇▇▇▇▇▇▇▇ Music is more than US$ 1,050,000 during the period commencing from the Industrial and Commercial Registration Date and ending at nine (9) months thereafter, Hurray! Music shall make the additional investment of US$ 675,000 to ▇▇▇▇▇▇▇▇ Music within thirty (30) days upon conclusion of the aforesaid nine (9)-month period. The fourth installment of the Capital Increase shall be in the amount of US$ 675,000. If the audited after-tax net profit of ▇▇▇▇▇▇▇▇ Music is more than US$ 1,700,000 during the period commencing from the Industrial and Commercial Registration Date and ending at twelve (12) months thereafter, Hurray! Music shall make the additional investment of US$ 675,000 to ▇▇▇▇▇▇▇▇ Music within thirty (30) days upon conclusion of the aforesaid twelve (12)-month ...