Common use of Grant of Profits Interest Clause in Contracts

Grant of Profits Interest. Purchaser does hereby grant to Seller a profits interest in the sales of the Shares payable under the following circumstances: All proceeds (net of any brokerage commissions, sales fees and transfer taxes) from sale of any or all of the Shares, regardless of the per Share sales price, shall first be applied to payment of all principal and interest on the Promissory Note, until the Promissory Note is paid in full. Next, all proceeds (net of any brokerage commissions, sales fees and transfer taxes) from any additional sales of any or all of the Shares, regardless of the per Share sales price, up to a cumulative total of $880,000 shall be retained by NHLT Equity Partners, L. P. Upon satisfaction of the requirements of paragraphs 4.1.1 and 4.1.2 above, Seller shall be entitled to receive a "Profits Interest" equal to twenty percent (20%) of all proceeds (net of any brokerage commissions, sales fees and transfer taxes) from the sales, if any, of the remaining balance of the Shares. Purchaser shall remit to Seller the profits interest amount within five (5) business days of receipt of good (collected) funds from each sale.