Equity Consideration definition
Examples of Equity Consideration in a sentence
Sellers and Purchaser shall, and shall cause their respective Affiliates to, treat for U.S. federal (and applicable state, local, and non-U.S.) income tax purposes the issuance of any Units pursuant to this Section 2.08 as an adjustment to the Equity Consideration received in the Transactions, and the payment of any cash pursuant to this Section 2.08 as an adjustment to the Final Cash Consideration, except for any imputed interest or as otherwise required by Law.
Notwithstanding the foregoing, unless any requisite Parent stockholder approval is obtained, the number of Units to be paid in the Earnout Payment pursuant to this Agreement, when combined with the Equity Consideration, shall not equal or exceed an aggregate of 20% of the number of shares of Parent Common Stock issued and outstanding as of the date of this Agreement, and any Earnout Payment in excess of such amount shall be paid in cash in U.S. dollars.
Each Seller is acquiring the securities constituting its portion of the Equity Consideration and, if applicable, any Earnout Payment, solely for its own account with the present intention of holding such securities for investment purposes and not with a view to, or for sale in connection with, any distribution of such securities in violation of the Securities Act or other applicable securities Laws.
All Units of the Purchaser to be issued hereunder as Equity Consideration or an Earnout Payment will have been validly issued and will be fully paid and non-assessable when issued and delivered in accordance with the terms of this Agreement, and the issuance thereof will be free of preemptive rights.