Question from Dre Dre, What does this project financing clause mean in plain English?
Answer from AI:
This clause is about how much money (compensation) a person or company (referred to as the “Finder”) will get if they help secure financing for a project. The amount they get depends on how much money is raised for the project.
Understanding the Compensation Structure
If the project raises $650,000 or more: The Finder will get 5% of the total compensation for the project.
If the project raises less than $650,000: The Finder’s compensation will be reduced. The reduction will be proportional to how much less the project financing is compared to $650,000.
For example, if the project raises $325,000 (which is half of $650,000), the Finder will get 2.5% of the total compensation (which is half of 5%).
Defining Contingent Compensation
The term “contingent compensation” refers to the money that the Finder will receive. The exact definition of this term will be negotiated in good faith. However, if any other participant in the project gets a more favorable definition of contingent compensation, the Finder will also get that more favorable definition.
This clause is governed by the laws of Canada.
Seeking Legal Advice
This is a general explanation of the clause. The specific details and implications can vary depending on the exact wording and context of the contract. It’s recommended to consult with a legal professional for personalized advice.