Equity Contingency Sample Clauses

An Equity Contingency clause sets conditions under which the issuance, transfer, or allocation of equity in a company is dependent on certain events or milestones being met. For example, this clause may specify that founders or employees receive shares only if the company achieves specific financial targets or completes a funding round. Its core practical function is to align the interests of stakeholders and manage risk by ensuring that equity is distributed only when predefined objectives are achieved, thereby protecting the company and its investors from premature or unwarranted dilution.
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Equity Contingency. In the event Borrower closes a private equity financing yielding net proceeds of at least $20 million at a price per share of at least $6.85 (the “Qualifying Private Equity Financing”), Borrower shall have the option to amend the Notes under Commitment Four such that the Loan Commencement Date (as that term is defined in the Note) for all Advances under Commitment Four is January 1, 2010. In the event the Qualifying Private Equity Financing does not occur prior to December 31, 2008, then the Notes may not be so amended and any Advance occurring after June 30, 2009 shall have a Loan Commencement Date equal to the first day of the calendar month next following such Advance.
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Equity Contingency. If prior to the expiration or termination of the SAFT and despite the best efforts of the Company, neither the Company nor any Nominated Entity is able to complete a Qualifying Token Sale, the Company may, at its sole option, elect to convert this SAFT into SAFT Shares. The Company would then issue to the Purchaser a number of SAFT Shares in the capital of the Company equal to the US dollar value of the Purchase Amount as of the date and time the Company received the Purchase Amount, such US dollar value then divided by issue price of $10.00 per SAFT Share; such SAFT Shares shall be Class A shares, of which there shall be a total of 10,000,000 Class A shares authorized for the Company. It will be a condition precedent to the issuance by the Company of the SAFT Shares under this SAFT that the Purchaser execute and deliver or otherwise become a party to any shareholder agreement of the Company then in force between the Company and its shareholders, or such other form of shareholder agreement including, but not limited to, any form of share transfer restriction agreement or voting trust agreement as required by the Company.
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Related to Equity Contingency

  • Financing Contingency The Buyer’s obligations herein are contingent on the Buyer’s obtaining financing to pay the balance on the Purchase Price. The Buyer must present to the Seller a binding commitment for financing the purchase of the Property within days from the Effective date. The terms of the financing must be acceptable to and approved by the Buyer who shall not unreasonably withhold such approval. In the event that the Buyer fails to obtain financing within the time allotted, this Agreement shall automatically terminated and all funds paid by the Buyer shall be returned to the Buyer after deducting all reasonable costs incurred by the Seller in good faith in relation this Agreement.

  • FUNDING CONTINGENCY a. In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of this Contract and prior to completion of the work in this Contract, DCYF may: (1) Terminate this Contract with ten (10) days advance notice. If this Contract is terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Contract prior to the effective date of termination; (2) Renegotiate the terms of the Contract under the new funding limitations and conditions; (3) After a review of project expenditures and deliverable status, extend the end date of this Contract and postpone deliverables or portions of deliverables; or (4) Pursue such other alternatives as the parties mutually agree to in writing. b. Any termination under this Section (FUNDING CONTINGENCY) shall be considered a Termination for Convenience.

  • Construction Contingency The proposed GMP Change Order shall include, as a separately identified item, a Construction Contingency sum in an initial amount (subject to increase or decrease) against which Design-Builder can draw at its election for the purposes set forth in Section 4 Part 4. The initial Construction Contingency sum shall include the contingency amounts stated in all accepted Component Change Orders.

  • No Financing Contingency By participating in this auction, bidders hereby agree that their bid shall NOT be subject to the bidder’s ability to obtain financing. Financing is NOT a contingency in the purchase agreement. However, if a bidder decides to purchase property with a loan, they should make sure they are approved for a loan and that lender is capable of completing on or before closing date.

  • MORTGAGE CONTINGENCY A. This agreement is contingent upon Purchaser obtaining approval of a Conventional, FHA or VA (if FHA or VA, see attached required addendum) or mortgage loan of $ for a term of no more than years at an initial fixed or adjustable nominal interest rate not to exceed % (percent). Purchaser agrees to use diligent efforts to obtain said approval and shall apply for the mortgage loan within business days after the Seller has accepted this contract. Purchaser agrees to apply for such mortgage loan to at least one lending institution or licensed mortgage broker. Upon receipt of a written mortgage commitment or in the event Purchaser chooses to waive this mortgage contingency, Purchaser shall provide notice in writing to of Purchaser’s receipt of the mortgage commitment or of Purchaser’s waiving of this contingency. Upon receipt of such notice this contingency shall be deemed waived or satisfied as the case may be. In the event notice as called for in the preceding sentence has not been received on or before , , then either Purchaser or Seller may within five business days of such date terminate, or the parties may mutually agree to extend, this contract by written notice to . Upon receipt of termination notice from either party, and in the case of notice by the Purchaser, proof of Purchaser’s inability to obtain said mortgage approval, this agreement shall be cancelled, null and void, and all deposits made hereunder shall be returned to the Purchaser.