Closing Date and Payment Terms Clause Samples

Closing Date and Payment Terms. The purchase of Shares ------------------------------ pursuant to this Article IV shall be consummated on the applicable Restricted Stock Transfer Closing Date at the office of the Corporation and shall be paid as follows: (i) The Restricted Stock Transfer Purchase Price for Shares purchased by reason of an event described in Section 4.4 shall be paid as follows: (A) If such purchase price for the applicable Selling Stockholder is less than One Million Dollars ($1,000,000) then twenty-five percent (25%) of the Restricted Stock Transfer Purchase Price shall be paid within 60 days after its determination and the balance shall be paid in equal semi-annual installments over three years commencing on the first anniversary of the applicable Repurchase Event and continuing on each anniversary thereafter until payment in full. (B) If such purchase price for any Selling Stockholder equals or exceeds One Million Dollars ($1,000,000), then twenty five percent (25%) of the Restricted Stock Transfer Purchase Price shall be paid within 60 days after its determination and the balance shall be paid in equal annual installments over five years commencing on the first anniversary of the applicable Repurchase Event and continuing on each anniversary thereafter until payment in full. (C) The amount of such purchase price outstanding during the aforesaid three year or five year periods shall bear simple interest at the rate of ten percent (10%) per annum which interest shall be paid annually on the date of the applicable principal payments. The Corporation shall pledge the Shares being sold by the applicable Selling Stockholders as collateral to secure the prompt payment of all amounts due to such Selling Stockholder. (D) Notwithstanding the preceding provisions, if at the time any payment under this Section 4.6 is due, the Corporation is prohibited under the laws of the State of Delaware or any other competent jurisdiction from making the payment, the Corporation shall have a grace period for making the payment for the length of the prohibition period, provided that, in addition to accrual of interest on the principal portion of such payment as herein provided, interest shall accrue on the interest portion of each payment so deferred at the rate specified in Section 4.6(a)(i)(C) from the due date thereof without regard to the grace period through the payment thereof.