Initial Equity Payment Clause Samples

Initial Equity Payment. In connection with the purchase of the Purchased Shares, the Purchaser agrees to pay to the Corporation its pro rata share of the historical expenditures borne by the Corporation in relation to the Boleo Project from June 1, 2007 to May 30, 2008. The Purchaser acknowledges having received from the Parent prior to the date of this Agreement a schedule setting out such expenditures in sufficient detail to permit Closing. As soon as reasonably practicable following Closing, the Parent will cause the Corporation, at the Corporation’s expense, to have the Corporation’s financial statements from January 1, 2008 to May 30, 2008 reviewed by the Corporation’s statutory auditors, and the amount of the Initial Equity Payment will be adjusted for any discrepancy between the Purchaser’s pro rata share of the amount of such expenditures for such period as set out in the summary to be provided to the Purchaser pursuant to Section 6.1(k) and the Purchaser’s pro rata share of the amount determined pursuant to such review. Promptly following the completion of such review, the Parent will cause the Corporation to pay to the Purchaser, or the Purchaser will pay to the Corporation, as the case may be, the amount of such discrepancy to the extent that the Purchaser’s pro rata share of the expenditures in the summary exceed or are exceeded by, respectively, the Purchaser’s pro rata share of the amount determined pursuant to the review.

Initial Equity Payment. Upon the terms and subject to the conditions hereof, at the Closing, ID Cayman shall issue and deliver to each SM Shareholder and the Non-signing SM Shareholder the number of ID Cayman Shares set forth opposite the name of each such Person on Schedule C in the column entitled “Initial Equity Payment,” representing, in the aggregate 6,865,341 ID Cayman Shares (the “Initial Equity Payment”).

Initial Equity Payment. Upon the terms and subject to the conditions hereof, at the Closing, MK Cayman shall issue and deliver to each Pypo Shareholder the number of MK Cayman Shares and 3,400,000 MK Cayman Class B Warrants set forth opposite such Pypo Shareholder’s name on Schedule C in the column entitled “Initial Equity Payment,” representing, in the aggregate 45,000,000 MK Cayman Shares (the “Initial Equity Payment”).