Initial Equity Clause Examples
The Initial Equity clause defines the amount and ownership percentage of equity that each party holds at the outset of a business arrangement or company formation. It typically specifies the number of shares or units allocated to each founder or investor and may outline the terms under which these shares are issued, such as vesting schedules or payment requirements. This clause is essential for establishing clear ownership stakes from the beginning, thereby preventing future disputes and ensuring all parties understand their rights and obligations regarding company equity.
Initial Equity. A certificate of an Authorized Officer of Borrower certifying that Borrower shall have provided the Initial Equity and itemizing the uses of the Initial Equity, such certificate to be accompanied by backup materials evidencing such Initial Equity and the use of same.
Initial Equity. Subject to approval by the Board, Executive shall be granted an option to purchase 800,000 shares of common stock of the Company (the “Option”) with an exercise price equal to the fair market value of the common stock as of the date of grant. The Option shall be subject to and governed in all respects by the terms of the governing equity plan documents and grant agreement(s) between Executive and the Company thereunder and shall be subject to a vesting schedule whereby one-quarter (1/4) of the shares subject to the Option shall vest one year after grant, with the remaining shares vesting in equal monthly installments over the following three years thereafter, subject to Executive’s continuous service.
Initial Equity. The Agent shall have received evidence acceptable to it that ALC shall have raised equity that yields to ALC, on an aggregate basis, at least $800,000,000 in net cash proceeds.
Initial Equity. In the event of the occurrence of a Maturity Event or an Event of Default, the Property’s Initial Equity is in the amount of _______________________ ($_____). [Insert amount equivalent to: The lesser of--(i) the appraised value of the Property that was used at the time of origination of the HOPE for Homeowners (H4H) Mortgage to underwrite the mortgage and to determine compliance with the maximum loan-to-value ratio at origination established by 12 U.S.C. § 1715z-23(e)(2)(B); or (ii) the outstanding amount due under all existing senior mortgages, existing subordinate mortgages, and non-mortgage liens on the Property; minus the original principal amount of the H4H Mortgage.]
Initial Equity. In addition to the requirements set forth above in the section captioned “Borrower’s Equity; Controlled Funds Account” prior to any Advance under the Loan, Borrower shall have injected equity in the Project consisting of Borrower Funds in accordance with the Budget (as hereinafter defined) and the Plans and Specifications in an amount not less than $12,041,003.00 (the “Initial Equity”). At the closing of the Loan, Lender shall review all amounts injected into the Project by Borrower as of the date of closing (“Pre-Closing Equity”). All Pre-Closing Equity approved Lender as being in accordance with the Budget and the approved Plans and Specifications shall be credited to the Initial Equity required to be injected into the Project by Borrower. Thereafter, Borrower shall submit to Lender on a monthly basis all information required in connection with a draw request under the Loan for review and approval by Lender. Upon approval of such amounts by Lender, Borrower shall be authorized to expend Initial Equity funds for the purposes and in the amounts set forth in the draw request approved by Lender. Lender shall not be required to make any Advances under the Loan until the full amount of the Initial Equity is injected into the Project. LETTER OF CREDIT FACILITY. Provided no Event of Default shall have occurred and be continuing, upon the written request of Borrower, Lender agrees to issue one of more standby letters of credit in connection with the Project provided that each of the following conditions set forth below are met in a manner satisfactory to Lender. The amount of the Loan available for disbursement shall be reduced by the face amount of each letter of credit issued on behalf of Borrower as long as each such letter of credit remains outstanding.
Initial Equity. The Borrower shall have evidenced to the satisfaction of the Administrative Agent cash capital contributions from its members in an amount not less than twenty-five percent (25%) of the aggregate budgeted costs and expenses of the acquisition and construction of such Project and the operation thereof as reflected in the Project Summary & Feasibility Report with respect to such Project as initially approved, or deemed approved, by the Administrative Agent and the Lenders.
Initial Equity. In consideration of the Services to be provided by Consultant, its affiliates and any third party suppliers under this Agreement and subject to Stock Restrictions, within 5 days following the termination of the cease trade order issued by the Alberta Securities Commission on April 3, 2013, Petrosonic will issue to Consultant 9,000,000 Shares of common stock (the “Share Consideration”). Subject to the terms of this Section 5.1, Petrosonic will have the option to purchase from Consultant up to 3,000,000 Shares of the Share Consideration, at par value, upon the occurrence of the following:
(a) If this Agreement is terminated by Petrosonic under Section 6.2(a) or otherwise is terminated under Section 6.2(b) within 360 days after the Effective Date (the “Expiration Date”), Petrosonic will, upon the date of such termination, have an irrevocable, exclusive option to repurchase (the “Repurchase Option”) any of the Share Consideration which has not yet been released from the Repurchase Option as set forth in Section 5.1(b) (the “Unreleased Shares”), at par value (the “Repurchase Price”). The Repurchase Option will be deemed to be terminated as of the Expiration Date and in any case where such exercise would result in a violation of applicable law. In the event that Consultant terminates this Agreement under Section 6.2(a), the Repurchase Option shall be automatically and immediately deemed terminated.
(b) So long as this Agreement has not been terminated, the Unreleased Shares will be released from the Repurchase Option according to the schedule outlined below, such that no Shares will remain subject to the Repurchase Option after 360 days after the Effective Date. 1-90 12.5 % 91-180 12.5 % 181-270 12.5 % 271-360 12.5 %
(c) If Petrosonic decides to exercise its Repurchase Option, within 90 days of termination of this Agreement, Petrosonic must deliver payment to Consultant by wire transfer to an account designated by Consultant, immediately available funds in the amount of the aggregate Repurchase Price for the applicable Unreleased Shares. Upon delivery of the payment of the aggregate Repurchase Price, Petrosonic shall become the legal and beneficial owner of the Unreleased Shares being repurchased, and Petrosonic may transfer to its own name the number of such Unreleased Shares.
Initial Equity. Executive will be granted a non-statutory stock option under the Company’s 2000 Stock Option Plan to acquire 12,500 shares of the Company’s common stock at a per share exercise price equal to the fair market value of a share of the Company’s common stock on the date the option is granted. The option will be granted at the first meeting of the Compensation Committee of the Board occurring on or after the commencement date of Executive’s employment hereunder, provided the Compensation Committee has by that time received an updated valuation report to be submitted by the third-party valuation firm retained by the Company. The option shall vest and become exercisable as to one-third of the shares subject to the option on June 1 of 2012, 2013 and 2014, and shall otherwise be subject to the terms and conditions contained in the Company’s current form of non-statutory stock option agreement.
Initial Equity. On the Effective Date, the Company shall grant to the Executive an option under and subject to the Company’s 2006 Stock Plan (the “2006 Plan”) to purchase 150,000 shares of Common Stock of the Company at an exercise price equal to the “Fair Market Value” (as defined in the 2006 Plan) of the Company’s Common Stock on the Effective Date (the “Option”). The Option shall be subject to all terms, vesting schedules, limitations, restrictions and termination provisions set forth in the 2006 Plan and the option agreement delivered by the Company to evidence the grant of such Option, provided that the Option shall become exercisable in four equal installments beginning on the one-year anniversary of the Effective Date and continuing on each of the following three anniversary dates, so long as the Company continues to employ the Executive on each such anniversary date.
Initial Equity. In addition to the requirements set forth above in the section captioned “Borrower’s Equity; Controlled Funds Account” prior to any Advance under the Loan, Borrower shall have injected equity in the Project consisting of Borrower Funds in accordance with the Budget (as hereinafter defined) and the Plans and Specifications in an amount not less than $12,041,003.00 (the “Initial Equity”). At the closing of the Loan, Lender shall review all amounts injected into the Project by Borrower as of the date of closing (“Pre-Closing Equity”). All Pre-Closing Equity approved Lender as being in accordance with the Budget and the approved Plans and Specifications shall be credited to the Initial Equity required to be injected into the Project by Borrower. Thereafter, Borrower shall submit to Lender on a monthly basis all information required in connection with a draw request under the Loan for review and approval by Lender. Upon approval of such amounts by Lender, Borrower shall be authorized to expend Initial Equity funds for the purposes and in the amounts set forth in the draw request approved by Lender. Lender shall not be required to make any Advances under the Loan until the full amount of the Initial Equity is injected into the Project.