{"component": "clause", "props": {"groups": [{"snippet": "(a) In addition to the Purchase Consideration, Sungy shall pay each of the Additional Payments, if any, to Seller in accordance with this Section 2.04.", "size": 2, "snippet_links": [{"key": "purchase-consideration", "type": "definition", "offset": [23, 45]}, {"key": "additional-payments", "type": "definition", "offset": [75, 94]}, {"key": "to-seller", "type": "definition", "offset": [104, 113]}, {"key": "in-accordance-with", "type": "definition", "offset": [114, 132]}], "samples": [{"hash": "gnJQrSVocZk", "uri": "/contracts/gnJQrSVocZk#earnouts", "label": "Purchase Agreement", "score": 31.340862423, "published": true}, {"hash": "8pjOQEwL3e1", "uri": "/contracts/8pjOQEwL3e1#earnouts", "label": "Purchase Agreement (Sungy Mobile LTD)", "score": 25.3230663929, "published": true}], "hash": "851f54f03d839dddcd8270446992d06a", "id": 3}, {"snippet": "Seller and Purchaser hereby acknowledge and agree that the Property is not one hundred percent (100%) occupied at the time of Closing with all tenants occupying their space, open for business and paying full rent, including CAM, taxes and insurance current. Notwithstanding anything to the contrary set forth in the Contract, Seller shall have until December 31, 2014 (\u201cEarnout Period\u201d) to receive additional proceeds of $320,000.00 (\u201cEarnout Purchase Price\u201d) by leasing the vacant space shown on Exhibit A attached hereto and made a part hereof (\u201cEarnout Space\u201d) to America\u2019s Best Contacts & Eye Glasses or such other tenant acceptable to Purchaser (\u201cEarnout Tenant\u201d) upon lease terms reasonably acceptable to Purchaser and with a minimum five (5) year lease term and an annual base rent of at least $20.00 per square foot; provided, however, in no event shall the overall purchase price for the Property exceed $27,313,000.00. During the Earnout Period, it shall be Seller\u2019s responsibility and sole cost and expense for leasing out and paying all costs related to placing the Earnout Tenant into the Earnout Space, including, but not limited to, any commissions, tenant improvement allowances and concessions; provided, however, no tenant shall be Seller or an affiliate of Seller. The lease for the Earnout Space shall be subject to Purchaser\u2019s prior written consent, such consent may be withheld by Purchaser in its reasonable discretion, and Seller is not entitled to any portion of the Earnout Purchase Price until a Purchaser-approved tenant under a Purchaser-approved lease for an Earnout Space has accepted its space \u201cas is\u201d and takes total possession, has opened for business and commences full rental payments, including CAM, taxes and insurance on a pro rata basis, and Purchaser has received an estoppel letter reasonably acceptable to Purchaser from the Earnout Tenant (\u201cEarnout Requirements\u201d). The Earnout closing shall occur upon ten (10) business days advance written notice to Purchaser that the Earnout Requirements have been satisfied and provided that the Earnout Period has not expired; provided, however, (a) Seller hereby acknowledges that Seller waives its right to the Earnout Purchase Price if the Earnout Requirements have not been fully satisfied during the Earnout Period, and (b) at the Earnout closing, Seller shall deliver to Purchaser (if not previously delivered) a down date endorsement to Purchaser\u2019s Owner\u2019s Policy of Title Insurance showing that there are no mechanic\u2019s or materialmens\u2019 liens affecting Purchaser\u2019s title to the Property caused by Seller. Purchaser shall act in a commercially reasonable manner and in good faith during its review and determination of the approval of the Earnout Tenant and/or lease presented to Purchaser. Also, Purchaser agrees to respond to any request for the approval of any new proposed Earnout Tenant and/or lease presented to Purchaser within seven (7) business days after receipt of such request and all reasonable documentation required to evaluate such request by Purchaser. If Purchaser fails to respond to such request within such 7-business day period and such failure continues for a period in excess of five (5) business days after Purchaser\u2019s receipt of notice of such failure, then such proposed Earnout Tenant and/or lease shall be deemed approved by Purchaser.", "size": 5, "snippet_links": [{"key": "seller-and-purchaser", "type": "clause", "offset": [0, 20]}, {"key": "acknowledge-and-agree", "type": "clause", "offset": [28, 49]}, {"key": "time-of-closing", "type": "clause", "offset": [118, 133]}, {"key": "open-for-business", "type": "clause", "offset": [174, 191]}, {"key": "taxes-and-insurance", "type": "clause", "offset": [229, 248]}, {"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [258, 298]}, {"key": "in-the-contract", "type": "clause", "offset": [309, 324]}, {"key": "seller-shall", "type": "clause", "offset": [326, 338]}, {"key": "until-december", "type": "definition", "offset": [344, 358]}, {"key": "earnout-period", "type": "definition", "offset": [370, 384]}, {"key": "to-receive", "type": "definition", "offset": [387, 397]}, {"key": "additional-proceeds", "type": "clause", "offset": [398, 417]}, {"key": "earnout-purchase-price", "type": "definition", "offset": [435, 457]}, {"key": "vacant-space", "type": "definition", "offset": [475, 487]}, {"key": "exhibit-a", "type": "clause", "offset": [497, 506]}, {"key": "eye-glasses", "type": "clause", "offset": [593, 604]}, {"key": "other-tenant", "type": "definition", "offset": [613, 625]}, {"key": "lease-terms", "type": "definition", "offset": [674, 685]}, {"key": "annual-base-rent", "type": "clause", "offset": [772, 788]}, {"key": "square-foot", "type": "definition", "offset": [812, 823]}, {"key": "in-no-event-shall", "type": "clause", "offset": [844, 861]}, {"key": "purchase-price-for-the-property", "type": "clause", "offset": [874, 905]}, {"key": "the-earnout", "type": "clause", "offset": [936, 947]}, {"key": "cost-and-expense", "type": "clause", "offset": [1001, 1017]}, {"key": "for-leasing", "type": "clause", "offset": [1018, 1029]}, {"key": "all-costs", "type": "definition", "offset": [1045, 1054]}, {"key": "related-to", "type": "clause", "offset": [1055, 1065]}, {"key": "not-limited", "type": "clause", "offset": [1132, 1143]}, {"key": "tenant-improvement-allowances", "type": "definition", "offset": [1165, 1194]}, {"key": "tenant-shall", "type": "clause", "offset": [1234, 1246]}, {"key": "affiliate-of-seller", "type": "clause", "offset": [1263, 1282]}, {"key": "the-lease", "type": "clause", "offset": [1284, 1293]}, {"key": "subject-to", "type": "definition", "offset": [1325, 1335]}, {"key": "prior-written-consent", "type": "clause", "offset": [1348, 1369]}, {"key": "by-purchaser", "type": "clause", "offset": [1400, 1412]}, {"key": "reasonable-discretion", "type": "definition", "offset": [1420, 1441]}, {"key": "not-entitled", "type": "definition", "offset": [1457, 1469]}, {"key": "approved-tenant", "type": "definition", "offset": [1533, 1548]}, {"key": "approved-lease", "type": "definition", "offset": [1567, 1581]}, {"key": "rental-payments", "type": "definition", "offset": [1705, 1720]}, {"key": "pro-rata-basis", "type": "definition", "offset": [1762, 1776]}, {"key": "estoppel-letter", "type": "definition", "offset": [1808, 1823]}, {"key": "business-days", "type": "clause", "offset": [1955, 1968]}, {"key": "notice-to-purchaser", "type": "definition", "offset": [1985, 2004]}, {"key": "and-provided-that", "type": "clause", "offset": [2055, 2072]}, {"key": "right-to", "type": "definition", "offset": [2182, 2190]}, {"key": "fully-satisfied", "type": "definition", "offset": [2260, 2275]}, {"key": "deliver-to-purchaser", "type": "definition", "offset": [2348, 2368]}, {"key": "down-date", "type": "definition", "offset": [2401, 2410]}, {"key": "policy-of-title-insurance", "type": "definition", "offset": [2446, 2471]}, {"key": "title-to-the-property", "type": "clause", "offset": [2554, 2575]}, {"key": "by-seller", "type": "clause", "offset": [2583, 2592]}, {"key": "commercially-reasonable-manner", "type": "definition", "offset": [2619, 2649]}, {"key": "in-good-faith", "type": "definition", "offset": [2654, 2667]}, {"key": "approval-of", "type": "clause", "offset": [2711, 2722]}, {"key": "presented-to", "type": "definition", "offset": [2755, 2767]}, {"key": "agrees-to", "type": "clause", "offset": [2795, 2804]}, {"key": "respond-to", "type": "definition", "offset": [2805, 2815]}, {"key": "request-for", "type": "clause", "offset": [2820, 2831]}, {"key": "after-receipt-of", "type": "clause", "offset": [2947, 2963]}, {"key": "documentation-required", "type": "definition", "offset": [2996, 3018]}, {"key": "business-day-period", "type": "clause", "offset": [3118, 3137]}, {"key": "notice-of", "type": "clause", "offset": [3243, 3252]}, {"key": "approved-by", "type": "definition", "offset": [3330, 3341]}], "samples": [{"hash": "9alwM20f4l7", "uri": "/contracts/9alwM20f4l7#earnouts", "label": "Post Closing and Indemnity Agreement (Inland Real Estate Income Trust, Inc.)", "score": 23.5995893224, "published": true}], "hash": "40ac250b081e6a1834b7e5fb2999f423", "id": 1}, {"snippet": "Company Shareholder will receive and be issued additional PubCo Shares, up to a maximum aggregate of 10,000,000 PubCo Shares, for no additional consideration or payment by Company Shareholder, in the amounts and upon the occurrence of the events set forth as follows:", "size": 2, "snippet_links": [{"key": "company-shareholder", "type": "definition", "offset": [0, 19]}, {"key": "pubco-shares", "type": "definition", "offset": [58, 70]}, {"key": "no-additional-consideration", "type": "clause", "offset": [130, 157]}, {"key": "payment-by-company", "type": "clause", "offset": [161, 179]}, {"key": "the-events", "type": "clause", "offset": [235, 245]}], "samples": [{"hash": "9D6fKBZVicU", "uri": "/contracts/9D6fKBZVicU#earnouts", "label": "Agreement and Plan of Reorganization (Artemis Strategic Investment Corp)", "score": 33.6872005476, "published": true}, {"hash": "5oSvliSsXbn", "uri": "/contracts/5oSvliSsXbn#earnouts", "label": "Agreement and Plan of Reorganization (Artemis Strategic Investment Corp)", "score": 33.6872005476, "published": true}], "hash": "00fb2defad71462d5bdcd6bde458ac79", "id": 2}, {"snippet": "Section 3.30 of the Strategix Disclosure Memorandum sets forth a. each agreement containing an earnout or similar provision or otherwise providing for a contingent payment by or to any Strategix Company or any Subsidiary in respect of the Strategix Business or otherwise included in the Strategix Liabilities that has not been satisfied in full as of the date hereof (the \"Earnout Agreements\") and b. a schedule of the amounts that Seller currently estimates will come due under the Earnout Agreements. There is no claim or dispute or, to the Knowledge of Seller, any basis for any such claim or dispute, under any Earnout Agreement. All payments under each Earnout Agreement have been paid when due in accordance with the terms of such Earnout Agreement. The Schedule referred to in clause (ii) hereof was prepared using the Seller's good faith estimates with respect to the Earnout Agreements and is not intended to be a basis for liability or indemnification hereunder absent a material misrepresentation.", "size": 2, "snippet_links": [{"key": "disclosure-memorandum", "type": "definition", "offset": [30, 51]}, {"key": "each-agreement", "type": "definition", "offset": [66, 80]}, {"key": "payment-by", "type": "clause", "offset": [164, 174]}, {"key": "in-respect-of", "type": "clause", "offset": [221, 234]}, {"key": "satisfied-in-full", "type": "definition", "offset": [327, 344]}, {"key": "date-hereof", "type": "clause", "offset": [355, 366]}, {"key": "earnout-agreements", "type": "definition", "offset": [373, 391]}, {"key": "schedule-of", "type": "clause", "offset": [403, 414]}, {"key": "seller-currently", "type": "clause", "offset": [432, 448]}, {"key": "the-earnout", "type": "clause", "offset": [479, 490]}, {"key": "no-claim", "type": "definition", "offset": [512, 520]}, {"key": "knowledge-of-seller", "type": "clause", "offset": [543, 562]}, {"key": "all-payments", "type": "clause", "offset": [634, 646]}, {"key": "in-accordance-with", "type": "definition", "offset": [700, 718]}, {"key": "terms-of", "type": "definition", "offset": [723, 731]}, {"key": "the-schedule", "type": "clause", "offset": [756, 768]}, {"key": "in-clause", "type": "clause", "offset": [781, 790]}, {"key": "the-seller", "type": "clause", "offset": [822, 832]}, {"key": "good-faith-estimates", "type": "clause", "offset": [835, 855]}, {"key": "with-respect-to", "type": "clause", "offset": [856, 871]}, {"key": "material-misrepresentation", "type": "definition", "offset": [981, 1007]}], "samples": [{"hash": "8JitpzJL7In", "uri": "/contracts/8JitpzJL7In#earnouts", "label": "Acquisition Agreement (Modis Professional Services Inc)", "score": 18.0, "published": true}, {"hash": "2UcrrypJ8T2", "uri": "/contracts/2UcrrypJ8T2#earnouts", "label": "Acquisition Agreement (Modis Professional Services Inc)", "score": 18.0, "published": true}], "hash": "900015ef2e8468e6640f3fe7a74b48df", "id": 4}, {"snippet": "(a) Within forty-five (45) days after the last day of each Earnout Period, Purchaser will cause to be prepared and delivered to Seller a statement (each, an \u201cEarnout Statement\u201d) setting forth in reasonable detail Purchaser\u2019s good faith calculations of (i) Revenue for such Earnout Period and (ii) the amount of any Earnout Payment to which Seller is entitled pursuant to Section 2.4(b). Within forty-five (45) days following Purchaser\u2019s delivery of each Earnout Statement to Seller, Seller will give Purchaser a written notice stating either (i) Seller\u2019s acceptance, without objection, of the Earnout Statement (an \u201cEarnout Acceptance Notice\u201d) or (ii) Seller\u2019s objections to the Earnout Statement as set forth in a Notice of Disagreement pursuant to Section 2.5(a). If Seller gives Purchaser an Earnout Acceptance Notice or does not give Purchaser a Notice of Disagreement within such 45-day period, then the Earnout Statement (including the Revenue calculation therein) will be conclusive and binding upon the parties, and the calculation of the Earnout Payment set forth in such Earnout Statement will constitute the final Earnout Payment for such Earnout Period. Any dispute arising out of or relating to the calculations of the Revenue for any Earnout Period and the Earnout Payments shall be resolved in accordance with the dispute resolution procedures set forth in Section 2.5.", "size": 2, "snippet_links": [{"key": "days-after", "type": "definition", "offset": [27, 37]}, {"key": "day-of", "type": "clause", "offset": [47, 53]}, {"key": "earnout-period", "type": "definition", "offset": [59, 73]}, {"key": "purchaser-will", "type": "clause", "offset": [75, 89]}, {"key": "be-prepared", "type": "clause", "offset": [99, 110]}, {"key": "seller-a", "type": "definition", "offset": [128, 136]}, {"key": "earnout-statement", "type": "clause", "offset": [158, 175]}, {"key": "good-faith", "type": "clause", "offset": [225, 235]}, {"key": "payment-to", "type": "clause", "offset": [323, 333]}, {"key": "pursuant-to-section", "type": "definition", "offset": [359, 378]}, {"key": "delivery-of", "type": "clause", "offset": [437, 448]}, {"key": "seller-will", "type": "clause", "offset": [483, 494]}, {"key": "purchaser-a", "type": "definition", "offset": [500, 511]}, {"key": "written-notice", "type": "definition", "offset": [512, 526]}, {"key": "the-earnout", "type": "clause", "offset": [589, 600]}, {"key": "earnout-acceptance-notice", "type": "definition", "offset": [616, 641]}, {"key": "notice-of-disagreement", "type": "clause", "offset": [715, 737]}, {"key": "day-period", "type": "definition", "offset": [888, 898]}, {"key": "revenue-calculation", "type": "clause", "offset": [942, 961]}, {"key": "binding-upon", "type": "clause", "offset": [994, 1006]}, {"key": "the-parties", "type": "definition", "offset": [1007, 1018]}, {"key": "calculation-of-the", "type": "clause", "offset": [1028, 1046]}, {"key": "payment-for", "type": "clause", "offset": [1133, 1144]}, {"key": "arising-out-of", "type": "definition", "offset": [1178, 1192]}, {"key": "relating-to", "type": "definition", "offset": [1196, 1207]}, {"key": "payments-shall-be", "type": "clause", "offset": [1279, 1296]}, {"key": "in-accordance-with", "type": "definition", "offset": [1306, 1324]}, {"key": "dispute-resolution-procedures", "type": "definition", "offset": [1329, 1358]}], "samples": [{"hash": "8dqK8z2WoxS", "uri": "/contracts/8dqK8z2WoxS#earnouts", "label": "Securities Purchase Agreement (Communications Systems Inc)", "score": 32.3237508556, "published": true}, {"hash": "4IIuWsNFeso", "uri": "/contracts/4IIuWsNFeso#earnouts", "label": "Securities Purchase Agreement (Lantronix Inc)", "score": 32.3237508556, "published": true}], "hash": "18cfd2f6658010ca19fe6fd2ad72c040", "id": 5}, {"snippet": "In addition to the cash amounts and shares of Parent -------- Common Stock to be paid to the Shareholders immediately following the Merger pursuant to Article I, each Shareholder shall be entitled to receive as additional consideration for such Shareholder's shares of Company Common Stock a share of the following contingent payments equal to such Shareholder's percentage ownership interest in the outstanding Company Common Stock (a \"Prorata Share\"): -------------\n(i) Cash equal to the product of (A) $1,250,000 multiplied by (B) the Gross Revenue (as defined below) in FY2000, divided by the projected Gross Revenue for FY2000 as provided in Schedule 2.1 (the \"Projected 2000 -------------- Revenue\"); and -------\n(ii) the number of shares of Parent Common Stock equal to the product of (A) the Gross Revenue in FY2000 divided by the Projected 2000 Revenue, times (B) 261,438 shares of Parent Common Stock; provided, however, in no event shall the quotient determined in clause (A) be greater than 1. All of the Gross Revenue in FY2000 is used in determining the earnout payments for each of Sections 2.1(a)(i) and 2.1(a)(ii).", "size": 2, "snippet_links": [{"key": "in-addition-to-the", "type": "clause", "offset": [0, 18]}, {"key": "cash-amounts", "type": "clause", "offset": [19, 31]}, {"key": "common-stock-to-be", "type": "clause", "offset": [62, 80]}, {"key": "to-the-shareholders", "type": "definition", "offset": [86, 105]}, {"key": "following-the-merger", "type": "clause", "offset": [118, 138]}, {"key": "article-i", "type": "definition", "offset": [151, 160]}, {"key": "to-receive", "type": "definition", "offset": [197, 207]}, {"key": "additional-consideration", "type": "definition", "offset": [211, 235]}, {"key": "shares-of-company", "type": "clause", "offset": [259, 276]}, {"key": "contingent-payments", "type": "definition", "offset": [315, 334]}, {"key": "equal-to", "type": "definition", "offset": [335, 343]}, {"key": "percentage-ownership-interest", "type": "definition", "offset": [363, 392]}, {"key": "outstanding-company-common-stock", "type": "definition", "offset": [400, 432]}, {"key": "prorata-share", "type": "clause", "offset": [437, 450]}, {"key": "the-product", "type": "clause", "offset": [486, 497]}, {"key": "gross-revenue", "type": "clause", "offset": [538, 551]}, {"key": "divided-by", "type": "clause", "offset": [582, 592]}, {"key": "projected-gross", "type": "clause", "offset": [597, 612]}, {"key": "shares-of-parent-common-stock", "type": "clause", "offset": [738, 767]}, {"key": "in-no-event-shall", "type": "clause", "offset": [931, 948]}, {"key": "in-clause", "type": "clause", "offset": [973, 982]}, {"key": "payments-for", "type": "clause", "offset": [1076, 1088]}], "samples": [{"hash": "79yFKm6Pqji", "uri": "/contracts/79yFKm6Pqji#earnouts", "label": "Merger Agreement (Marketfirst Software Inc)", "score": 18.0, "published": true}], "hash": "23e35d22e45c7584c77eaae81b8e6c80", "id": 6}, {"snippet": "As additional Purchase Price, at such times as provided in this Section 2.06, Buyer shall pay Seller, the following earnout payments subject to the terms of this Section 2.06: (i) the Cord Blood Cash Earnout; (ii) the Cord Blood Stock Earnout; (iii) the Tianhe Sales Earnout; (iv) the Tianhe Valuation Earnout; and (v) the Tianhe Recap Earnout (collectively hereinafter referred to as the \u201cEarnout Payments\u201d).", "size": 1, "snippet_links": [{"key": "additional-purchase-price", "type": "definition", "offset": [3, 28]}, {"key": "buyer-shall", "type": "clause", "offset": [78, 89]}, {"key": "earnout-payments", "type": "definition", "offset": [116, 132]}, {"key": "terms-of", "type": "definition", "offset": [148, 156]}, {"key": "cord-blood", "type": "definition", "offset": [184, 194]}], "samples": [{"hash": "5NFKK8r2L8V", "uri": "/contracts/5NFKK8r2L8V#earnouts", "label": "Asset Purchase Agreement (Cryo Cell International Inc)", "score": 29.4216290212, "published": true}], "hash": "a905e4a483a3ff9950b37ed6ad0703db", "id": 7}, {"snippet": "i. Seller may earn an additional payment from Purchaser of $100,000 (the \"$100,000 Earnout\") based on gross revenues (as defined by GAAP) associated with the Business calculated for a one (1) year period, beginning on the first day of the first full month after Closing (\"Annual Period\"). If at the end of the Annual Period, the aggregate of gross revenues associated with the Business for the total of the twelve months in the Annual Period are equal to or exceed $5,000,000, then the $100,000 Earnout shall be paid to Seller. If Seller earns the $100,000 Earnout, Purchaser shall make the $100,000 Earnout available to Seller via wire transfer within ten (10) business days following the end of the Annual Period.\nii. Seller may earn a second additional payment from Purchaser of $600,000 (the \"$600,000 Earnout\"), in an amount not to exceed $150,000 per quarter (or $600,000 total) (each an \"Earnout\") based on gross revenues associated with the Business (as defined by GAAP) calculated for each of the first four (4) consecutive ninety (90) day periods, with the first quarterly period beginning on the first day of the first full month after Closing (each a \"Quarterly Period\"). In any such Quarterly Period that gross revenues associated with the Business are: (i) less than $1,250,000, then such Quarterly Period Earnout shall be $0, (ii) between $1,250,000 and $1,375,000, then such Quarterly Period Earnout shall be $50,000, (iii) between $1,375,000 and $1,500,000, then such Quarterly Period Earnout shall be $100,000, (iv) more than $1,500,000, then such Quarterly Period Earnout shall equal $150,000. If Seller earns an Earnout, Purchaser shall make such Earnout available to Seller via wire transfer within ten (10) business days following the end of such applicable Quarterly Period. After each calendar month of each Quarterly Period, Purchaser shall certify and deliver to Seller a copy of Purchaser's financial records for the Business for that month, for the sole purpose of confirming gross revenue amounts. During the Annual Period, and including one month thereafter, Purchaser shall deliver the financial records (and certify that such records have been prepared in accordance with GAAP) applicable to a month to Seller by the fifteenth (15th) day of such month (the \"Records Due Date\"). Should Purchaser fail to deliver the financial records by the Records Due Date, Purchaser shall pay to Seller liquidated damages in the amount of $2,250 per every fifth (5th) day past the Records Due Date that Purchaser fails to deliver such financial records to Seller (the \"Liquidated Damages\"). Notwithstanding the aforementioned, Purchaser shall have no responsibility to deliver the financial records (until such time as Seller cures any applicable breach of a Seller representation or warranty in the Agreement, as described further in this sentence) or pay the Liquidated Damages in the event Seller's breach of a Seller representation or warranty in the Agreement is the cause for Purchaser's failure to meet the applicable Records Due Date; provided, however, that in the event such issue is determined by a court or other tribunal, then such decision making body will be permitted to fairly apportion the Liquidated Damages as it or they shall determine under the facts and circumstances. Not more than once after each Quarterly Period (a \"Prior Quarterly Period\"), Seller retains the right to audit Purchaser's books and records related to the Business for such Prior Quarterly Period. The results of any such audit shall be binding upon the parties. Seller will select the auditor subject to Purchaser's approval, which approval will not be unreasonably withheld. If any discrepancies discovered by an audit result in an Earnout payable to Seller for such Prior Quarterly Period that is larger than the Earnout, or lack thereof, alleged on Purchaser's financial records for such Prior Quarterly Period, then the Earnout as determined by the auditor's written report shall be made available to Seller via wire transfer within ten (10) business days following the issuance of such written report by the auditor. In the event a discrepancy as described above is discovered by an audit, Purchaser will pay the costs of the audit. In the event a discrepancy as described above is not discovered by an audit, Seller will pay the costs of the audit. In the event, however, that the Business is sold by Purchaser or Purchaser materially changes the scope or market of the Business during the Annual Period, Seller will be entitled to both the $100,000 Earnout and the $600,000 Earnout, via wire transfer, within fifteen days of such sale or material change.\n1. Within ten (10) business days following the conclusion of the Annual Period (the end of the fourth Quarterly Period), Purchaser shall pay Seller the difference, if any, between the sum of the Quarterly Period Earnouts paid or owing to Seller under Section 2.6(a)(ii) above and the following amounts: At the end of the Annual Period, if gross revenues (as defined by GAAP) associated with the Business calculated for the Annual Period are: (i) less than $5,000,000, then $0, (ii) between $5,000,000 and $5,500,000, then $200,000, (iii) between $5,500,000 and $6,000,000, then $400,000, (iv) more than $6,000,000, then $600,000. This paragraph shall in no event require Seller to return or refund any Quarterly Period Earnout paid Seller pursuant to Section 2.6(a)(ii) above.", "size": 1, "snippet_links": [{"key": "an-additional", "type": "clause", "offset": [19, 32]}, {"key": "based-on", "type": "clause", "offset": [93, 101]}, {"key": "gross-revenues", "type": "definition", "offset": [102, 116]}, {"key": "associated-with", "type": "definition", "offset": [138, 153]}, {"key": "year-period", "type": "definition", "offset": [192, 203]}, {"key": "beginning-on-the", "type": "clause", "offset": [205, 221]}, {"key": "day-of", "type": "clause", "offset": [228, 234]}, {"key": "full-month", "type": "definition", "offset": [245, 255]}, {"key": "after-closing", "type": "definition", "offset": [256, 269]}, {"key": "annual-period", "type": "clause", "offset": [272, 285]}, {"key": "the-annual", "type": "clause", "offset": [306, 316]}, {"key": "the-total", "type": "clause", "offset": [390, 399]}, {"key": "twelve-months", 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{"key": "sum-of", "type": "clause", "offset": [4856, 4862]}, {"key": "in-no-event", "type": "clause", "offset": [5323, 5334]}, {"key": "return-or-refund", "type": "clause", "offset": [5353, 5369]}, {"key": "pursuant-to-section", "type": "definition", "offset": [5411, 5430]}], "samples": [{"hash": "hMtWAdX3RcO", "uri": "/contracts/hMtWAdX3RcO#earnouts", "label": "Asset Purchase Agreement (Payment Data Systems Inc)", "score": 16.0, "published": true}], "hash": "4512b43d0369559a7c7261d1aadefd5e", "id": 8}, {"snippet": "(a) The parties agree that the Fourth Earnout shall be in the amount of $214,204, and that Buyer shall pay such amount to Seller by August 4, 1998.\n(b) The parties agree that Buyer will pay Seller the sum of $75,000 by August 4, 1998 as part payment of the Fifth Earnout.\n(c) The balance of the Fifth Earnout and all of the First, Second and Third Earnouts will be paid when due. 5.", "size": 1, "snippet_links": [{"key": "the-parties-agree-that", "type": "clause", "offset": [4, 26]}, {"key": "buyer-shall", "type": "clause", "offset": [91, 102]}, {"key": "to-seller", "type": "definition", "offset": [119, 128]}, {"key": "by-august", "type": "clause", "offset": [129, 138]}, {"key": "buyer-will-pay", "type": "clause", "offset": [175, 189]}, {"key": "sum-of", "type": "clause", "offset": [201, 207]}, {"key": "payment-of-the", "type": "clause", "offset": [242, 256]}, {"key": "balance-of-the", "type": "clause", "offset": [280, 294]}], "samples": [{"hash": "8U63Jtfz8OS", "uri": "/contracts/8U63Jtfz8OS#earnouts", "label": "Asset Purchase Agreement (Judge Group Inc)", "score": 16.0, "published": true}], "hash": "bae7f65a6388850aed16fac547d5eeea", "id": 9}, {"snippet": "(a) After the Closing, subject to the terms and conditions set forth herein, (I) the Company Stockholders shall have the contingent right to receive shares of ParentCo Common Stock with an aggregate value of up to $330,000,000 (II) the Sponsor shall have the contingent right to receive shares of ParentCo Common Stock with an aggregate value of up to $33,000,000 (in the case of each of (I) and (II), subject to adjustment for share splits, share dividends, combinations, recapitalizations and the like after the Closing, including to account for any equity securities into which such shares are exchanged or converted) (the \u201cEarnout Shares\u201d), as additional consideration from ParentCo based on ParentCo\u2019s revenue and EBITDA performance, as follows:\n(i) In the event ParentCo\u2019s revenue for any full 12-month period (each an \u201cEarnout Period\u201d) commencing on or after the Closing Date (the \u201cEarnout Start Date\u201d) and ending on or before the last day of the thirteenth full calendar quarter following the Closing Date (the \u201cEarnout End Date\u201d, and the period between the Earnout Start Date and the Earnout End Date, the \u201cEarnout Eligibility Period\u201d) is greater than or equal to $42,600,000 for the first time during the Earnout Eligibility Period, then, subject to the terms and conditions of this Agreement, ParentCo shall issue to each of the Company Stockholders such Company Stockholder\u2019s Pro Rata Share of Earnout Shares with a value equal to $66,000,000 and the Sponsor shall be issued Earnout Shares with a value equal to $6,600,000.\n(ii) In the event ParentCo\u2019s revenue for any Earnout Period is greater than or equal to $141,400,000 for the first time during the Earnout Eligibility Period, then, subject to the terms and conditions of this Agreement, ParentCo shall issue to each of the Company Stockholders such Company Stockholder\u2019s Pro Rata Share of Earnout Shares with a value equal to $66,000,000 and the Sponsor shall be issued Earnout Shares with a value equal to $6,600,000.\n(iii) In the event ParentCo\u2019s revenue for any Earnout Period is greater than or equal to $358,900,000 for the first time during the Earnout Eligibility Period, then, subject to the terms and conditions of this Agreement, ParentCo shall issue to each of the Company Stockholders such Company Stockholder\u2019s Pro Rata Share of Earnout Shares with a value equal to $66,000,000 and the Sponsor shall be issued Earnout Shares with a value equal to $6,600,000.\n(iv) In the event ParentCo\u2019s EBITDA for any Earnout Period is greater than or equal to $(19,300,000) for the first time during the Earnout Eligibility Period, then, subject to the terms and conditions of this Agreement, ParentCo shall issue to each of the Company Stockholders such Company Stockholder\u2019s Pro Rata Share of Earnout Shares with a value equal to $44,000,000 and the Sponsor shall be issued Earnout Shares with a value equal to $4,400,000.\n(v) In the event ParentCo\u2019s EBITDA for any Earnout Period is greater than or equal to $4,000,000 for the first time during the Earnout Eligibility Period, then, subject to the terms and conditions of this Agreement, ParentCo shall issue to each of the Company Stockholders such Company Stockholder\u2019s Pro Rata Share of Earnout Shares with a value equal to $44,000,000 and the Sponsor shall be issued Earnout Shares with a value equal to $4,400,000.\n(vi) In the event ParentCo\u2019s EBITDA for any Earnout Period is greater than or equal to $98,600,000 for the first time during the Earnout Eligibility Period, then, subject to the terms and conditions of this Agreement, ParentCo shall issue to each of the Company Stockholders such Company Stockholder\u2019s Pro Rata Share of Earnout Shares with a value equal to $44,000,000 and the Sponsor shall be issued Earnout Shares with a value equal to $4,400,000.\n(b) The CFO will monitor ParentCo\u2019s revenue and EBITDA regularly, and as soon as practicable (and in any event within ten (10) Business Days) after the end of each month following the Effective Date through the earlier of (x) ten (10) Business Days following the end of the Earnout Eligibility Period and (y) the date, if any, as of which all of the Earnout Shares have been finally determined pursuant to this Section 2.14 to have been earned, the CFO will prepare and deliver to each Representative Party a written statement (each, an \u201cEarnout Statement\u201d) that sets forth (i) the Company\u2019s revenue for the most recently completed Earnout Period, (ii) the Company\u2019s EBITDA for the previous Earnout Period and (ii) whether any Earnout Shares have been earned as a result of the Company\u2019s performance during the most recently completed Earnout Period. Each Representative Party will have ten (10) Business Days after its receipt of an Earnout Statement to review it. Each Representative Party, and its Representatives on its behalf, may make inquiries to the CFO and related ParentCo and Company personnel and advisors regarding questions concerning or disagreements with the Earnout Statement arising in the course of their review thereof, and ParentCo and the Company shall provide reasonable cooperation in connection therewith. If either Representative Party has any objections to an Earnout Statement, such Representative Party shall deliver to ParentCo (to the attention of the CFO) and the other Representative Party a statement setting forth its objections thereto (in reasonable detail). If such written statement is not delivered by a Representative Party within twenty (20) Business Days following the date of delivery of each Earnout Statement, then such Representative Party will have waived its right to contest such Earnout Statement and the calculation of the revenue and EBITDA calculations during the applicable portion of the Earnout Period (and whether the Earnout Shares have been earned) as set forth therein. If such written statement is delivered by a Representative Party within such twenty (20) Business Day period, then the Seller Representative and ParentCo Representative shall negotiate in good faith to resolve any such objections for a period of ten (10) Business Day thereafter. If the Representative Parties do not reach a final resolution within such ten (10) Business Day period, then upon the written request of either Representative Party, the Representative Parties will refer the dispute to arbitration in accordance with the provision of Section 10.4.\n(c) If there is a final determination in accordance with Section 2.14(b) that the Company Stockholders have earned Earnout Shares, the applicable Earnout Shares, will become due upon such final determination and ParentCo will deliver such shares within ten (10) Business Days thereafter.\n(d) Following the Closing, ParentCo and its Subsidiaries, including the Target Companies, will be entitled to operate their respective businesses based upon their respective business requirements. Each of ParentCo and its Subsidiaries, including the Target Companies, will be permitted, following the Closing, to make changes at its sole discretion to its operations, organization, personnel, accounting practices and other aspects of its business, including actions that may have an impact on, the share price of ParentCo Common Stock and the ability of the Company Stockholders to earn the Earnout Shares, and no Person will have any right to claim the loss of all or any portion of any Earnout Shares or other damages as a result of such decisions.", "size": 1, "snippet_links": [{"key": "subject-to-the-terms", "type": "clause", "offset": [23, 43]}, {"key": "company-stockholders", "type": "definition", "offset": [85, 105]}, {"key": "shares-of", "type": "clause", "offset": [149, 158]}, {"key": "parentco-common-stock", "type": "definition", "offset": [159, 180]}, {"key": "aggregate-value", "type": "definition", "offset": [189, 204]}, {"key": "the-sponsor", "type": "clause", "offset": 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