Stockholders’ Representative Reserve Sample Clauses
The Stockholders’ Representative Reserve clause establishes a fund set aside from the merger or acquisition proceeds to cover expenses and obligations incurred by the stockholders’ representative. Typically, a portion of the purchase price is withheld and managed by the representative to pay for things like legal fees, dispute resolution costs, or other post-closing matters on behalf of the selling stockholders. This clause ensures that the representative has the necessary resources to fulfill their duties and protects both the buyers and sellers by providing a clear mechanism for handling post-closing issues.
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Stockholders’ Representative Reserve. At or prior to the Closing, the Company shall deposit cash in the amount of $100,000 (together with any earnings thereon, the “Stockholders’ Representative Reserve”) into a separate account at a United States financial institution designated by the Stockholders’ Representative, provided that such deposit shall be insured by the Federal Deposit Insurance Corporation and, provided, further, that such account shall inure to the benefit of any successor Stockholders’ Representative hereunder. The