A refundable deposit clause requires a party to provide an upfront payment that is held as security for the duration of the contract. Upon fulfillment of the contract terms or conditions specified, this deposit is returned to the depositor, ensuring protection against non-compliance or potential damages.
Pursuant to the Tai He Agreements, Tai He agreed to invest a minimum of $35 million in the IPO subject to the Company making a $7.0 million refundable deposit (the “Refundable Deposit”) and advancing a $3.0 million service fee for investor relations and other services (together, the “Services”) payable to Tai He. The Company, its affiliates and individual shareholders paid the $7.0 million Refundable Deposit and $3.0 million service fee to Tai He in several installments from January 27, 2022 to March 11, 2022. After March 11, 2022, the Company has made no other payments to, nor had any direct interaction with, Tai He, and, in actuality, the Company never directly communicated with Tai He, only communicating about Tai He and the Tai He Agreements through Shengang.
(a)REFUNDABLE DEPOSIT: As a portion of the Purchase Price and within two (2) business days of acceptance of this Offer, the sum of Twenty Five Thousand Dollars ($25,000) (the “Refundable Deposit”), by way of a cheque or bank draft shall be paid to Colliers Macaulay Nicolls Inc., in trust, to be held as contemplated in this Offer;
By September 28th, 2023, Purchaser shall make an additional non-refundable deposit payment to in the amount of USD $50,000.00, to bring total non-refundable deposit prior to closing and delivery to $300,000.00. Payment shall be made in United States Dollars and shall be made by wire transfer, certified check or bank cashier’s check and held in escrow by AIC Title Company.
2.3.1. First Order. Within two (2) business days of the Initial Order becoming a Binding Commitment, the Purchaser will make a non-refundable deposit for the purchase of five (5) Units to Taronis in an amount equal to twenty-five percent (25%) of the Unit Purchase Price per Unit, which amount is $3,515,625 (“First Order”).
2.3.2. Second Order. Within ninety (90) days of the delivery of the Units comprising the First Order into the Territory, the Purchaser will make a second non-refundable deposit for the purchase of five (5) additional Units to Taronis in an amount equal to twenty-five percent (25%) of the Unit Purchase Price per Unit, which amount is $3,515,625 (“Second Order”).
(i) Not later than five (5) Business Days after the Effective Date, Buyer shall deposit with Westcor Land Title Insurance Company, Inc., 600 West Germantown Pike, Ste. 450, Plymouth Meeting, PA 19462, Attn: Anthony Spangler, 321-214-6860, [email protected] (the “Escrow Holder”) by wire transfer in immediately available good funds in United States dollars (“Cash”) the amount of ELEVEN MILLION FOUR HUNDRED TWENTY-SEVEN THOUSAND FOUR HUNDRED EIGHTY AND NO/DOLLARS ($11,427,480.00) (the “Deposit”), of which, TWO MILLION EIGHT HUNDRED SIXTEEN THOUSAND SIX HUNDRED FORTY-THREE AND 53/100 DOLLARS ($2,816,643.53) (the “Non-Refundable Deposit”) shall be non-refundable to Buyer other than in the event of (i) a Seller Default which has not been timely cured pursuant to and in accordance with Section 14(b) or (ii) the failure of the Loan Assumption Conditions to be satisfied as a result of any reason other than a Buyer’s default under this Agreement which has not been timely cured in accordance with Section 14(a), in either of which events, the Deposit (including the Non-Refundable Deposit) shall be fully refundable to Buyer. In the event Buyer fails to deliver the Deposit in accordance with the terms herein, then this Agreement shall automatically be deemed null and void and of no further effect without the necessity of confirmation by either party, except Buyer and Sellers shall have such rights and obligations as are set forth herein to survive termination hereof.
2.1. Non-Refundable Deposit. Buyer shall make a SEVENTY FIVE JHOUSAND DOLLAR AND 00/100 ($75,000.00) non-refundable deposit by wire and/or certified funds no later than October 30th, 2018. The Deposit shall be entirely non-refundable. Buyer shall wire funds or bring certified check as follows: Chase Bank 1955 156th Avenue NE Bellevue, Washington 98007 Dot Corn LLC Routing:325070760 Account: 676313880 This will leave a balance of THREE HUNDRED FIVE THOUSAND DOLLARS AND 00/100 ($305,000.00).
On June 10, 2021, A9 Technologies made a $45,000 non-refundable deposit towards the stock purchase, and on July 9, 2021, A9 Technologies made an additional non-refundable deposit of $13,850 towards amounts paid by the former President on behalf of the Company subsequent to the date of the agreement.
The Purchase Price shall be paid and satisfied as follows: (a) as to $1,206,418.31 (the "Deposit Amount"), by payment of the Deposit Amount in one or more installments by the Purchaser to the Vendor, such Deposit Amount to be a non-refundable deposit against the Purchase Price; (b) unless the transaction contemplated by this Agreement shall be completed before payment of such amount, by payment of $700,000 (the "Extension Amount") by the Purchaser to the Vendor on or before October 10, 2019, such Extension Amount to be a non-refundable deposit against the Purchase Price;
(b) Non-Refundable Good Faith Deposit. Upon the execution of this Agreement, Buyer agrees to deposit by wire transfer of immediately available funds into the trust account of The Corporate Law Firm (the "Escrow Agent") an amount equal to One Million Five Hundred Thousand Dollars and 00/100 (US $1,500,000.00)(the "Non-Refundable Deposit") to evidence Buyer’s good faith intention to purchase the Shares in accordance with the provisions hereof. Buyer acknowledges and agrees that (i) the Non-Refundable Deposit is non-refundable, and (ii) if (A) the Closing does not occur on or before April 30, 2024, or (B) Seller terminates this Agreement pursuant to Section 9(a)(iii) hereof, the Non-Refundable Deposit shall immediately be disbursed by the Escrow Agent to Seller without any Liability on the part of Seller therefor. At the Closing, the Non-Refundable Deposit shall be credited against the Purchase Price. Buyer further acknowledges and agrees that the Escrow Agent represents Seller in this transaction and waives any and all conflicts of interest.
Upon receipt of the non-refundable deposit by the Seller from the Buyer, for 30 days from the date of signing this Term Sheet, none of the Company, its shareholders, its directors, or its officers will conduct or solicit any discussions or negotiations with any third party regarding any sale of a material number of shares in the Company or any sale of a material part of the business and assets of the Company, unless approved in advance by the Buyer in writing.
A refundable deposit is a sum of money paid in advance as part of a contract or agreement, which is intended to serve as security for the fulfillment of an obligation. This deposit is refundable to the payer upon the completion of specified conditions or terms outlined in the agreement, assuming no breaches or damage occur. Refundable deposits are commonly used to protect the interests of a service provider or property owner and encourage the proper upkeep of rented or borrowed items and spaces.
A refundable deposit should be used in situations where you want to ensure commitment and responsibility from the other party in a transaction or agreement. Here are some typical scenarios where a refundable deposit may be appropriate:
Using a refundable deposit reduces the risk involved in contractual relationships and provides a financial incentive for parties to comply with the terms of an agreement.
When writing a refundable deposit clause, it should be clear and detailed, outlining the purpose, amount, conditions for refund, and any deductions that might apply. Here is a basic example of such a clause:
Refundable Deposit Clause
The Tenant agrees to pay a refundable deposit of [$Amount] to the Landlord. This deposit is intended to cover any damages or breach of the lease agreement beyond normal wear and tear. Upon termination of this lease, the Landlord will return the deposit to the Tenant, less any deductions for damages or unpaid rent, within [Number of Days] days, provided all conditions are met as per this agreement.
Ensure to include specifics regarding the timeframe for refund, acceptable conditions for refunds, and any process for disputing deductions.
Refundable deposits are commonly included in several types of contracts and agreements where there is a need to mitigate risk and ensure commitment. Typical contracts that might contain a refundable deposit clause include:
Including a refundable deposit in these agreements serves as a financial safeguard while promoting adherence to the terms set forth in the contract.
Try our AI contract analysis and extract important clauses and information from existing contracts.
< <
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The "Release of Obligations" clause frees one or both parties from certain duties or liabilities defined in the contract once specific conditions are met or after a certain event occurs. This clause ensures that obligations are concluded, allowing the parties to move forward without further responsibilities under those specific terms.
The "Remedies for Breach" clause outlines the legal consequences and available actions if one party fails to fulfill their obligations under the contract. It typically specifies the types of remedies, such as damages, specific performance, or termination, that the non-breaching party may pursue to address the breach and mitigate its impacts.
The "Remedies" clause in a contract outlines the actions or compensation available to a party when the other party fails to fulfill their contractual obligations. It specifies the rights and procedures for seeking redress, such as damages, specific performance, or termination of the contract, aimed at addressing breaches and restoring the affected party's interests.
Fill out the form and we will get in touch with you to give you a personal, customized demo of fynk.
Greetings!
I'm Markus, co-founder of fynk. After you've submitted the form, I'll swiftly get in touch with you.
Also, right after you submit your details, you can pick a time that works best for you for our meeting.
