Exit Events Expenses Clause Samples
The Exit Events Expenses clause defines how costs and expenses related to an exit event, such as a sale, merger, or public offering, are handled between the parties involved. Typically, this clause specifies which party is responsible for paying legal, accounting, and transaction-related fees incurred as part of the exit process, and may outline any caps or limitations on reimbursable expenses. Its core function is to allocate financial responsibility for these costs, ensuring transparency and preventing disputes over who bears the burden of expenses when an exit event occurs.
Exit Events Expenses. Subject to the Registration Rights Agreement, each of the Company, MCK, the MCK Members, Echo, and the Echo Shareholders shall bear their own costs and expenses in connection with any Qualified IPO, Qualified MCK Exit or Qualified Echo Sale; provided, that (i) the Company will bear all customary expenses relating to any registration of securities in connection with any Qualified IPO, Qualified Echo Sale or Qualified MCK Exit, and (ii) the Company will bear all expenses of the underwriters and/or other advisors in a Qualified IPO (where such Qualified IPO is structured entirely as a primary issuance of securities).
Exit Events Expenses. Subject to the terms of the Registration Rights Agreement, the Company shall bear all costs and expenses in connection with any Qualified IPO, including all customary expenses relating to any registration of securities in connection with any Qualified IPO and all expenses of the underwriters or other advisors in a Qualified IPO, and shall reimburse each Initial Member for any reasonable and documented third-party costs and expenses incurred by such Initial Member relating thereto.