Operational Advances Clause Samples

Operational Advances. (a) Until the earlier of: (a) the Closing; (b) six months from the date of the execution of this Agreement; or (c) the termination of this Agreement in accordance with Article 12, the Purchaser (or its subsidiary) will fund the operations of the Target (and its subsidiaries, as applicable) by way of cash advances of up to $80,000 per month (the “Operational Advances”). In consideration of the Operational Advances, the Target (and its subsidiaries, as applicable) will appoint the Purchaser (or its subsidiary) as its exclusive sales agent for all sales of products and/or services of the Target and its subsidiaries outside of the People’s Republic of China. The Target covenants to execute any agreement necessary for the appointment of the Purchaser as such exclusive sales agent. (b) In the event that this Agreement is terminated in accordance with Article 12, the Target will repay to the Purchaser any Operational Advances made pursuant to Section 10.1(a) within thirty (30) days of such termination. (c) The parties agree that all of the Operational Advances will be repaid on Closing.