Amounts owing and Intercompany balances Sample Clauses

Amounts owing and Intercompany balances. Prior to Completion, the parties will procure that: 4.2.1 Subject to clause 4.2.2, the Subsidiaries make cash advances to the Vendor of amounts equal to the amount required to enable the Vendor to pay all amounts owing by the Vendor (including directors fees and salaries but excluding costs payable under clause 11.6) for the period up to 30 September 2015 without reducing the Vendor’s cash balances below $80,000. These cash advances are to be made and the amounts owing by the Vendor described in the preceding sentence are to be repaid as follows: (a) A cash advance of an amount sufficient to make payment of all amounts owed by the Vendor to creditors on 30 September 2015 is to made by 29 September 2015 and the Vendor is to make the relevant payments to creditors before Completion. 4.2.2 If the parties agree, the liability for all or any amounts owing by the Vendor that are to be repaid under clause 4.2.1 are instead assumed by the Subsidiaries by the Subsidiaries debiting the Vendor’s inter- company account with the Subsidiaries, thereby giving rise to a liability owed by the Vendor to the Subsidiaries. 4.2.3 After the cash advances to be made under clause 4.2.1 are made, and any liabilities as may be assumed under clause 4.2.2 have been assumed in accordance with that clause, the Subsidiaries declare and credit to the Vendor’s inter-company account with the Subsidiaries dividends sufficient to enable the Vendor to repay all amounts owing by the Vendor to the Subsidiaries (including all amounts owing as a result of the transactions described in clauses 4.2.1 and clause 4.2.2).