Cash Takeout Transactions Clause Samples
The 'Cash Takeout Transactions' clause defines the terms under which a party can withdraw or receive cash proceeds from a transaction, typically in the context of financing or asset sales. This clause outlines the conditions, limitations, and procedures for such cash distributions, such as requiring lender approval or meeting certain financial covenants before funds can be taken out. Its core function is to regulate and control the flow of cash out of a transaction, thereby protecting the interests of stakeholders and ensuring that sufficient funds remain to meet ongoing obligations or repay debts.
Cash Takeout Transactions. In the event of a Takeout Major Transaction in which the consideration payable to the each holder of Common Stock of the Company consists of more than 50% cash (a “Cash Takeout Transaction”), the Company may, at its option, and within at least thirty (30) days prior to the consummation of the Cash Takeout Transaction, provide the Holder with written notice that it elects to terminate this Warrant upon the consummation of the Cash Takeout Transaction in exchange for payment to the Holder of the Successor Major Transaction Consideration (the “Company Termination Notice”), subject in each case to the Holder’s right to exercise this Warrant prior to such termination. The Company shall not effect a Cash Takeout Transaction with respect to which the Company has delivered a Company Termination Notice unless it shall first obtain the written agreement of the Successor Entity, naming the Holder as an express third party beneficiary, that payment of the Successor Major Transaction Consideration concurrently with the consummation of such Cash Takeout Transaction shall be a condition precedent to such Cash Takeout Transaction.