Common use of Financing Event Clause in Contracts

Financing Event. An initial public offering by CNC or, in the alternative, some other private financing in either event totaling no less than $40 million (including for such purposes an aggregate of $15 million to be invested in CNC by WCG as further described in this sentence) to be completed no later than October 31, 1997 in which WCG agrees to purchase at least $12 million of CNC common stock and, if requested by CNC, to convert the $3 million loan in accordance with the Convertible Promissory Note of even date herewith. In the event that an initial public offering is not consummated, but a private Financing Event occurs, WCG will, subject to the satisfactory completion of due diligence and the receipt of necessary corporate and other approvals, invest $12 million and, if requested by CNC, convert the $3 million loan, if the terms and conditions as set by the lead investor of the private Financing Event are acceptable to WCG. WCG's investment participation in the Financing Event is expressly contingent upon CNC's satisfaction of all the conditions set forth in Sections 3, 4, 5, and 6 of the Memorandum of Understanding between CNC and WCG dated May 30, 1997.