Equity Holdback Sample Clauses
An Equity Holdback clause establishes that a portion of the equity due to a party in a transaction will be temporarily withheld by the other party or an escrow agent. Typically, this withheld equity serves as security for the satisfaction of certain obligations, such as indemnification for breaches of representations or warranties, or the achievement of specific milestones. By retaining a portion of the equity, this clause helps ensure that the party receiving the equity fulfills its commitments, thereby protecting the interests of the party providing the equity and mitigating potential risks.
Equity Holdback. During the Term, Executive shall be required to own Company stock in an aggregate then-current fair market value equal to Executive’s then-current Base Salary multiplied by two (the “Ownership Level”).
Equity Holdback. At the Registration Time, if the Equity Consideration Net Value is less than the Registration Consideration Value, (1) Parent shall permanently retain, and no Shareholder shall have further rights whatsoever to, the Equity Holdback Parent Amount, if any, and (2) each Accredited Shareholder, shall automatically be entitled to receive and shall receive, as soon as reasonably practicable the proportion of the Equity Holdback Company Amount, if any, as equal to the portion of the Equity Holdback withheld on behalf of such Shareholder pursuant to Section 1.7(b)(ii) hereof.