Contingent Call Options Sample Clauses
A Contingent Call Options clause grants one party the right to purchase an asset or security only if certain predefined conditions or events occur. In practice, this means the option becomes exercisable upon the happening of specific triggers, such as a change in control, a default, or the achievement of financial milestones. This clause is used to provide flexibility and protection, allowing parties to respond to changing circumstances and manage risk by securing the ability to act only when particular situations arise.
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Contingent Call Options. In consideration for the surrender of the Series A Warrant, and as partial consideration for entry into this Compromise Agreement and Release, Capstone hereby grants to Twinlab three separate contingent call option rights (“Contingent Call Option 2,” “Contingent Call Option 3,” and “Contingent Call Option 4”) to acquire from Capstone, at a call option exercise price of $0.01 per share, a number of shares of outstanding Company Common Stock owned by Capstone (free of all security interests, liens and adverse claims) as set forth on Exhibit B attached hereto and with the other terms and conditions as set forth on Exhibit B attached hereto, including the express condition that the respective contingent call option shall in no event be exercisable to any extent unless its respective applicable “Liquidity Condition” (as set forth on Exhibit B attached hereto) has been fully satisfied. The parties expressly agree that this Section 5 is an essential element of this Compromise Agreement and Release. Capstone agrees that to the degree and as of the date that any of Twinlab’s Contingent Call Option rights have been triggered and arise pursuant to the terms hereof (including without limitation the terms set forth in Exhibit B) that Capstone shall own a sufficient number of shares of Company Common Stock to be able to satisfy Capstone’s obligations with respect to each such Contingent Call Option as of the date it arises.