Application of funds clause: Copy, customize, and use instantly
Introduction
An application of funds clause outlines how the funds or financial resources provided under an agreement are to be allocated or used. This clause ensures that the parties involved have a clear understanding of how the funds will be utilized, helping to avoid misunderstandings or misuse of the provided capital. The clause typically includes specific purposes for which funds can be spent and may also outline any restrictions on the usage of the funds.
Below are templates for application of funds clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
General application of funds clause
This variation applies when the application of funds is broadly defined.
The funds provided under this agreement shall be applied solely for the purpose of [describe purpose, e.g., operational expenses, project development, etc.]. [Party Name] agrees not to use the funds for any purpose other than those explicitly outlined in this agreement, unless otherwise agreed in writing by [Other Party Name].
Application of funds for project-specific use clause
This variation applies when the funds are intended for a specific project.
The funds provided by [Party Name] under this agreement shall be applied exclusively for the execution of the project described in Exhibit [X]. These funds shall cover [list specific costs, e.g., materials, labor, legal fees, etc.]. Any deviation from this allocation must receive prior written approval from [Other Party Name].
Application of funds with limitations clause
This variation applies when there are limitations on how the funds can be used.
[Party Name] agrees to use the funds provided under this agreement solely for [describe specific purposes, e.g., product development, marketing, etc.]. The funds shall not be used for [list prohibited uses, e.g., personal expenses, capital improvements, etc.], unless otherwise agreed in writing by [Other Party Name].
Application of funds with milestone-based allocation clause
This variation applies when funds are allocated based on milestones.
The funds provided under this agreement shall be applied in accordance with the following milestones:[Milestone 1]: [Amount] to be used for [specific use] upon completion of [milestone details].[Milestone 2]: [Amount] to be used for [specific use] upon completion of [milestone details]. Funds will be disbursed only upon the completion of each milestone, as determined by [Other Party Name].
Application of funds for operating expenses clause
This variation applies when funds are to be used for operational expenses.
[Party Name] shall apply the funds provided under this agreement solely for the payment of operating expenses, including but not limited to salaries, utilities, office supplies, and other day-to-day costs associated with the operation of [describe business or project]. Funds shall not be used for capital expenditures or other non-operational costs without written approval.
Application of funds with reporting requirements clause
This variation applies when funds must be applied with reporting obligations.
The funds provided under this agreement shall be applied in accordance with the budget outlined in Exhibit [X]. [Party Name] agrees to provide quarterly reports detailing the use of the funds, including expenses, progress, and any variances from the original plan. These reports must be submitted to [Other Party Name] within [X] days of each quarter’s end.
Application of funds for debt repayment clause
This variation applies when funds are designated for repaying debt.
[Party Name] agrees to apply the funds provided under this agreement exclusively for the repayment of outstanding debt, including [list specific debts, e.g., loans, credit lines, etc.], as detailed in Exhibit [X]. Any remaining funds, after the full repayment of these debts, shall be used for [alternative purpose, if applicable] or returned to [Other Party Name].
Application of funds with priority allocation clause
This variation applies when certain uses take priority over others.
The funds provided under this agreement shall be applied in the following order of priority:Payment of any outstanding obligations, including taxes, fees, and other liabilities.[Purpose 1, e.g., marketing, operational costs, etc.].[Purpose 2, e.g., equipment purchases, development, etc.]. Any funds remaining after these priorities are met may be used for [describe further purpose].
Application of funds for restricted purposes clause
This variation applies when funds are restricted for a specific purpose.
The funds provided under this agreement shall be used exclusively for [specific purpose, e.g., research, capital improvements, etc.]. No portion of the funds may be used for any other purpose, including general operating expenses, without the express written consent of [Other Party Name].
Application of funds with audit rights clause
This variation applies when funds usage is subject to audit.
[Party Name] agrees to use the funds provided under this agreement strictly in accordance with the outlined purposes. [Other Party Name] reserves the right to audit the use of the funds at any time to ensure compliance with the terms of this agreement. [Party Name] agrees to provide access to all records and documents related to the use of the funds.
Application of funds with reallocation clause
This variation applies when the funds may be reallocated under certain conditions.
The funds provided under this agreement may be reallocated between the categories listed in Exhibit [X], provided that [Party Name] receives prior written approval from [Other Party Name]. Any reallocation must be supported by a detailed explanation of the reason for the change and the expected impact on the project or purpose.
Application of funds with unused funds clause
This variation applies when unused funds must be returned.
If any funds provided under this agreement are not used by [Party Name] for the designated purposes, [Party Name] agrees to return the unused portion of the funds to [Other Party Name] within [X] days of the conclusion of the agreement or project. The unused funds must be returned with no deductions or adjustments.
Application of funds for specific purpose and reporting clause
This variation applies when funds are allocated to a specific purpose with regular reporting.
[Party Name] agrees to apply the funds solely for the purpose of [specific purpose]. In addition, [Party Name] must submit a bi-monthly report outlining the use of the funds and any deviations from the expected allocation. These reports must be submitted no later than [X] days after the end of each reporting period.
Application of funds for capital expenses clause
This variation applies when funds are designated for capital expenses.
[Party Name] agrees to apply the funds exclusively for capital expenses, including but not limited to [list capital expenses, e.g., equipment purchase, real estate, etc.]. Funds may not be used for operational costs or any other non-capital purposes unless prior written approval is obtained from [Other Party Name].
Application of funds with dispute resolution clause
This variation applies when funds are allocated but subject to dispute resolution.
The funds provided under this agreement shall be applied in accordance with the purpose outlined in this agreement. In the event of a dispute regarding the application of the funds, both parties agree to resolve the matter through mediation or arbitration as outlined in the dispute resolution section of this agreement.
Application of funds for tax-related purposes clause
This variation applies when funds are allocated for tax purposes.
[Party Name] agrees to apply the funds provided under this agreement for the purpose of paying taxes, including income, sales, or other taxes that may arise in the course of executing this agreement. Any funds not required for tax purposes will be used for the next prioritized purpose as outlined in the agreement.
Application of funds for project-related expenses clause
This variation applies when funds are designated for project-related expenses.
[Party Name] agrees to apply the funds solely for project-related expenses as described in Exhibit [X]. These expenses may include but are not limited to [list expenses, e.g., equipment, personnel costs, etc.]. Any surplus funds remaining at the end of the project will be returned to [Other Party Name].
Application of funds for operational and strategic initiatives clause
This variation applies when funds are used for both operational and strategic initiatives.
[Party Name] agrees to apply the funds in equal portions for operational expenses and strategic initiatives. The operational expenses will cover [describe costs], while the strategic initiatives will fund [describe initiatives]. A breakdown of expenses for both categories will be provided in the quarterly report.
Application of funds for debt reduction clause
This variation applies when funds are allocated to reduce debt.
[Party Name] agrees to apply the funds provided under this agreement solely for the purpose of reducing outstanding debt. The funds shall first be used to pay off high-interest obligations, followed by the reduction of other liabilities. Any remaining funds will be used for [alternative purpose].
Application of funds for charitable purposes clause
This variation applies when funds are allocated for charitable purposes.
[Party Name] agrees to apply the funds solely for charitable purposes, including donations, sponsorships, or community programs as described in Exhibit [X]. The funds may not be used for any other purpose without the express written consent of [Other Party Name].
Application of funds with third-party approval clause
This variation applies when third-party approval is required for fund use.
[Party Name] agrees to apply the funds provided under this agreement for the designated purposes, but all expenditures must first receive the approval of [third-party name or regulatory body]. The funds may not be disbursed without such approval.
Application of funds with overage clauses clause
This variation applies when funds have an overage clause.
If the application of the funds exceeds the estimated budget for any reason, [Party Name] agrees to obtain prior written approval from [Other Party Name] before any additional funds are applied. All overages will be clearly documented and explained in a monthly report.
Application of funds for joint investment clause
This variation applies when funds are jointly invested.
[Party Name] agrees to apply the funds under this agreement as part of a joint investment between [Party Name] and [Other Party Name]. The funds will be managed according to the terms of the joint investment agreement, and any deviations from the agreed investment strategy must be approved by both parties in writing.
Application of funds for operational costs clause
This variation applies when funds are exclusively for operational costs.
The funds provided under this agreement shall be applied exclusively for operational costs, including but not limited to payroll, rent, utilities, and other day-to-day expenses necessary for the ongoing business activities of [Party Name].
Application of funds for fixed asset purchases clause
This variation applies when funds are designated for purchasing fixed assets.
[Party Name] agrees to apply the funds provided under this agreement exclusively for the purchase of fixed assets, including [list assets such as equipment, machinery, etc.]. Any deviation from this purpose requires prior written approval from [Other Party Name].
Application of funds for salary and compensation clause
This variation applies when funds are designated for salary and compensation purposes.
The funds provided under this agreement shall be applied to pay the salaries and compensation of [Party Name]'s employees involved in the project. These funds may also be used to cover related employee benefits, taxes, and other compensation-related costs.
Application of funds for administrative overhead clause
This variation applies when funds are designated for administrative overhead.
[Party Name] agrees to apply the funds exclusively for administrative overhead costs, including office supplies, utilities, and other necessary operational expenses that are required to facilitate the execution of this agreement.
Application of funds for marketing and promotional activities clause
This variation applies when funds are designated for marketing and promotional activities.
The funds provided under this agreement shall be applied for marketing and promotional activities, including digital ads, print media, trade show expenses, and other outreach initiatives. Any use outside of these activities requires prior written consent from [Other Party Name].
Application of funds for technology upgrades clause
This variation applies when funds are designated for upgrading technology.
[Party Name] agrees to apply the funds for the upgrading of technology infrastructure, including the purchase of new software, hardware, and other related technology components required for the project. The funds shall not be used for any other purpose unless approved by [Other Party Name].
Application of funds for regulatory compliance activities clause
This variation applies when funds are designated for regulatory compliance activities.
[Party Name] agrees to apply the funds to meet regulatory compliance requirements, including fees, audits, training programs, and documentation necessary to adhere to industry regulations. Any surplus funds may be used for future compliance-related projects with written approval.
Application of funds for debt servicing clause
This variation applies when funds are designated for servicing debt.
The funds provided under this agreement shall be applied to the servicing of debt, including interest payments, principal reduction, and associated fees. Any excess funds will be retained for future debt obligations or reinvested as agreed upon by both parties.
Application of funds for expansion purposes clause
This variation applies when funds are designated for business expansion.
[Party Name] agrees to apply the funds exclusively for the purpose of expanding operations, including opening new locations, hiring additional staff, and increasing production capacity. Any use of the funds outside of these purposes requires prior approval.
Application of funds for emergency contingency clause
This variation applies when funds are designated for emergency contingencies.
[Party Name] agrees to apply the funds to cover emergency contingencies, including unforeseen operational disruptions, natural disasters, or other extraordinary events that may arise. These funds will be used solely to restore operations to normal conditions.
Application of funds for capital expenditure clause
This variation applies when funds are designated for capital expenditures.
The funds provided under this agreement shall be applied for capital expenditures, including the acquisition, maintenance, and improvement of fixed assets, such as real estate, equipment, or facilities. Any changes to the capital expenditure plan must be approved in writing.
Application of funds for project staffing clause
This variation applies when funds are designated for project-specific staffing.
[Party Name] agrees to apply the funds to cover the costs of staffing required for the execution of [specific project]. This includes salaries, benefits, training, and recruitment costs for the project team. Additional staffing expenses may require prior approval.
Application of funds for research and development clause
This variation applies when funds are designated for research and development.
The funds provided under this agreement shall be applied to research and development activities, including the design, testing, and enhancement of [specified products, services, or technologies]. These funds may not be used for marketing or operational purposes without prior written consent.
Application of funds for legal expenses clause
This variation applies when funds are designated for legal expenses.
[Party Name] agrees to apply the funds to cover legal expenses incurred during the execution of this agreement. This includes attorney fees, court costs, settlement fees, and any other legal expenses directly related to the agreement's performance.
Application of funds for insurance premiums clause
This variation applies when funds are designated for paying insurance premiums.
The funds provided under this agreement shall be applied to cover insurance premiums, including general liability, property, and employee health coverage necessary for the project. Any additional insurance coverage required outside the scope of this agreement will incur separate costs.
Application of funds for community outreach clause
This variation applies when funds are designated for community outreach.
[Party Name] agrees to apply the funds for community outreach initiatives, including charitable donations, sponsorships, and local event support aimed at benefiting the community or enhancing public relations. These funds may not be used for political contributions or unrelated activities.
Application of funds for debt reduction clause
This variation applies when funds are designated for reducing debt.
The funds provided under this agreement shall be applied to reduce existing debt obligations, with a priority on high-interest debts and overdue payments. Any funds remaining after debt repayment may be reinvested in the business as agreed upon by both parties.
Application of funds for project-related expenses clause
This variation applies when funds are designated for project-related expenses.
[Party Name] agrees to apply the funds exclusively for project-related expenses, including material procurement, subcontractor fees, transportation, and other necessary costs. Any funds remaining at the completion of the project shall be returned to [Other Party Name] or reinvested as agreed.
Application of funds for employee training clause
This variation applies when funds are designated for employee training.
The funds provided under this agreement shall be applied for employee training, development, and education, including tuition reimbursement, certification programs, and skills development initiatives. Any additional training not covered by this allocation must be approved in writing.
Application of funds for marketing campaigns clause
This variation applies when funds are designated for marketing campaigns.
The funds provided under this agreement shall be applied for marketing campaigns, including advertising, media placements, and public relations efforts. Any unused funds from the marketing budget will be redirected toward future campaigns or returned.
Application of funds for technology integration clause
This variation applies when funds are designated for technology integration.
[Party Name] agrees to apply the funds for the integration of [specified technology] into existing systems or processes. The funds will cover software, hardware, and any required training or consulting services. Any use outside of this scope requires approval.
Application of funds for capital investment clause
This variation applies when funds are designated for capital investment.
[Party Name] agrees to apply the funds provided under this agreement for capital investment in [specified assets or business units]. These investments may include real estate, machinery, or other infrastructure improvements necessary for the growth of the business.
Application of funds for administrative services clause
This variation applies when funds are designated for administrative services.
The funds provided under this agreement shall be applied to cover administrative services, including payroll processing, record-keeping, and other internal office operations. Any other uses of the funds for services not directly related to administration will require approval.
Application of funds for inventory purchases clause
This variation applies when funds are designated for inventory purchases.
[Party Name] agrees to apply the funds provided to purchase inventory needed for [specific products or services]. These funds will cover the cost of raw materials, finished goods, and related shipping expenses.
Application of funds for office supplies clause
This variation applies when funds are designated for office supplies.
[Party Name] agrees to use the funds solely for the purchase of office supplies, including stationery, computer equipment, and other necessary materials required for the operation of the business. Purchases for non-office related items will not be authorized.
Application of funds for environmental impact initiatives clause
This variation applies when funds are designated for environmental impact initiatives.
The funds provided under this agreement shall be applied for initiatives aimed at reducing environmental impact, such as waste management, energy efficiency, and sustainable sourcing practices. These funds may not be used for unrelated business activities.
Application of funds for customer service improvements clause
This variation applies when funds are designated for customer service improvements.
[Party Name] agrees to apply the funds to improve customer service operations, including hiring additional staff, implementing new systems, and upgrading service delivery tools. These funds are strictly for enhancing the customer experience and cannot be reallocated without approval.
Application of funds for strategic partnerships clause
This variation applies when funds are designated for forming strategic partnerships.
The funds provided under this agreement shall be used exclusively to form and maintain strategic partnerships, including joint ventures, collaborations, and business development efforts. These funds may cover travel, consultancy, and negotiation expenses related to the partnerships.
Application of funds for software development clause
This variation applies when funds are designated for software development.
[Party Name] agrees to apply the funds to the development, testing, and launch of new software or system upgrades. These funds may be used for hiring developers, purchasing necessary software licenses, and related expenses.
Application of funds for insurance coverage clause
This variation applies when funds are designated for insurance coverage.
The funds provided under this agreement shall be used to maintain the necessary insurance coverage, including [specify types of insurance] for the duration of the agreement. These funds will be applied to premiums, deductibles, and other associated insurance-related costs.
Application of funds for business expansion clause
This variation applies when funds are designated for business expansion.
[Party Name] agrees to apply the funds exclusively for expanding its business operations, including hiring new employees, expanding into new markets, and increasing production capacity. Any deviation from this use requires written approval.
Application of funds for project marketing clause
This variation applies when funds are designated for marketing a project.
[Party Name] agrees to apply the funds to market the specific project described in this agreement, including promotional campaigns, outreach activities, and advertising. Any additional marketing efforts outside this scope will require approval.
Application of funds for licensing fees clause
This variation applies when funds are designated for licensing fees.
The funds provided under this agreement shall be applied solely to cover licensing fees required for the use of [specified intellectual property, software, etc.]. These fees will be invoiced at the rates outlined in Exhibit [X] and must be paid on or before the due date specified by the licensing authority.
Application of funds for service fees clause
This variation applies when funds are designated for service fees.
[Party Name] agrees to apply the funds provided under this agreement to pay for service fees associated with [list specific services, e.g., consulting, maintenance, training, etc.]. Any additional service fees outside the scope of this agreement will require prior written approval.
Application of funds for fixed costs clause
This variation applies when funds are designated for fixed costs.
The funds provided under this agreement shall be applied to cover fixed costs associated with [describe fixed costs, such as rent, insurance, utilities, etc.]. These fixed costs are essential for the ongoing operation of [Party Name]'s business or project.
Application of funds for supplier payments clause
This variation applies when funds are designated for supplier payments.
[Party Name] agrees to apply the funds provided to settle outstanding supplier payments, including invoices for goods and services purchased in connection with the execution of this agreement. These payments will be made in accordance with the payment terms agreed upon with each supplier.
Application of funds for staff recruitment clause
This variation applies when funds are designated for staff recruitment.
The funds provided under this agreement shall be applied to staff recruitment efforts, including advertising job openings, hiring fees, and onboarding costs for new employees. These funds will be used specifically for staffing requirements outlined in Exhibit [X].
Application of funds for debt servicing clause
This variation applies when funds are designated for servicing existing debt.
[Party Name] agrees to apply the funds to service existing debt obligations, including the payment of interest, principal, and related fees as outlined in Exhibit [X]. The funds will not be used for any other purpose unless specifically agreed upon by both parties.
Application of funds for marketing and awareness clause
This variation applies when funds are designated for marketing and awareness activities.
The funds provided under this agreement shall be applied exclusively for marketing and awareness campaigns related to [specific products or services]. These funds will cover expenses such as advertising, promotional materials, and digital marketing efforts.
Application of funds for international expansion clause
This variation applies when funds are designated for international expansion.
[Party Name] agrees to apply the funds provided under this agreement for the purpose of expanding its operations into international markets. These funds will be used for market research, legal compliance, logistics, and other costs associated with establishing operations in new countries.
Application of funds for employee benefits clause
This variation applies when funds are designated for employee benefits.
The funds provided under this agreement shall be applied to cover employee benefits, including health insurance premiums, retirement contributions, and other benefits as outlined in Exhibit [X]. These funds are designated to ensure employee satisfaction and retention.
Application of funds for business continuity clause
This variation applies when funds are designated for business continuity efforts.
[Party Name] agrees to apply the funds to support business continuity efforts, including investments in backup systems, disaster recovery plans, and emergency preparedness activities. The funds will ensure the continued operation of [Party Name] in the event of unforeseen disruptions.
Application of funds for research initiatives clause
This variation applies when funds are designated for research initiatives.
The funds provided under this agreement shall be used exclusively for research initiatives aimed at [specific research focus]. These funds will cover expenses such as materials, labor, and data collection needed to advance the research project.
Application of funds for employee training clause
This variation applies when funds are designated for employee training.
[Party Name] agrees to apply the funds to cover the costs of employee training programs, including the development of training materials, facilitation fees, and any associated travel or accommodation costs for trainers and employees.
Application of funds for acquisition costs clause
This variation applies when funds are designated for acquisition-related costs.
The funds provided under this agreement shall be applied to cover the costs associated with the acquisition of [specified assets, property, or company]. These costs include legal fees, due diligence expenses, and acquisition-related consulting fees.
Application of funds for regulatory reporting clause
This variation applies when funds are designated for regulatory reporting.
[Party Name] agrees to apply the funds provided under this agreement for the purpose of fulfilling regulatory reporting requirements, including the preparation and submission of reports to [regulatory body]. These costs will cover the associated filing fees, legal consultations, and compliance activities.
Application of funds for marketing partnerships clause
This variation applies when funds are designated for marketing partnerships.
The funds provided under this agreement shall be applied to cover expenses related to marketing partnerships, including joint promotions, co-branded campaigns, and affiliate marketing efforts. These funds will support partnerships that align with [Party Name]'s business objectives.
Application of funds for business intelligence clause
This variation applies when funds are designated for business intelligence tools.
[Party Name] agrees to apply the funds provided to purchase business intelligence tools, software licenses, and analytics platforms needed to track and evaluate business performance. These funds will also cover any necessary training for staff to effectively use the tools.
Application of funds for operational upgrades clause
This variation applies when funds are designated for operational upgrades.
The funds provided under this agreement shall be applied to operational upgrades, including investments in new equipment, system enhancements, and workflow improvements. The goal is to increase efficiency and effectiveness across [Party Name]'s operations.
Application of funds for customer retention programs clause
This variation applies when funds are designated for customer retention programs.
[Party Name] agrees to apply the funds for customer retention programs, including loyalty rewards, retention-focused marketing, and customer service initiatives designed to retain existing customers and encourage repeat business.
Application of funds for environmental sustainability clause
This variation applies when funds are designated for environmental sustainability efforts.
The funds provided under this agreement shall be applied to environmental sustainability initiatives, including energy-efficient technologies, waste reduction programs, and sustainable sourcing practices. The funds will help reduce [Party Name]'s environmental impact.
Application of funds for new product development clause
This variation applies when funds are designated for new product development.
[Party Name] agrees to apply the funds for the development of new products, including research, prototyping, and testing. These funds will cover the design, production, and initial marketing costs for launching the new product line.
Application of funds for intellectual property protection clause
This variation applies when funds are designated for protecting intellectual property.
The funds provided under this agreement shall be applied for the protection of intellectual property, including trademark registration, patent filings, and legal defense costs. These funds will help secure [Party Name]'s proprietary assets.
Application of funds for software licenses clause
This variation applies when funds are designated for purchasing software licenses.
[Party Name] agrees to apply the funds exclusively for the purchase of software licenses required to carry out the activities outlined in this agreement. These funds will cover both one-time purchase costs and any necessary ongoing subscription fees.
Application of funds for debt financing clause
This variation applies when funds are designated for debt financing purposes.
[Party Name] agrees to apply the funds provided for the purpose of debt financing, including the repayment of outstanding loans, credit lines, and other financial obligations. The funds will help improve [Party Name]'s financial position and reduce overall liabilities.
Application of funds for operational expansion clause
This variation applies when funds are designated for operational expansion.
The funds provided under this agreement shall be used for the expansion of operational capacity, including the opening of new facilities, expansion of production lines, and hiring additional staff. These funds will help meet the growing demand for [Party Name]'s products or services.
Application of funds for contingency planning clause
This variation applies when funds are designated for contingency planning.
[Party Name] agrees to apply the funds to develop and implement contingency plans, including emergency response, risk management, and crisis communication strategies. These funds will be used to mitigate potential risks and ensure continuity of operations.
Application of funds for training and development clause
This variation applies when funds are designated for training and development programs.
[Party Name] agrees to apply the funds exclusively for the training and development of its workforce, including educational programs, workshops, and external certifications. These funds will be used to enhance employees' skills and improve productivity.
Application of funds for operating reserves clause
This variation applies when funds are designated for operating reserves.
[Party Name] agrees to apply the funds to maintain operating reserves, ensuring liquidity for unexpected expenses or cash flow needs. These funds will serve as a financial safety net for [Party Name] during periods of uncertainty.
Application of funds for strategic growth initiatives clause
This variation applies when funds are designated for strategic growth initiatives.
The funds provided under this agreement shall be used for strategic growth initiatives, including mergers, acquisitions, or joint ventures that will expand [Party Name]'s market presence and capabilities. These funds will be allocated to business development efforts.
Application of funds for capital formation clause
This variation applies when funds are designated for capital formation.
[Party Name] agrees to apply the funds exclusively for capital formation activities, including equity investments, fundraising efforts, and capital expenditure related to the growth of [Party Name]'s business.
Application of funds for contingency fund clause
This variation applies when funds are designated for a contingency fund.
The funds provided under this agreement shall be applied to create a contingency fund to cover unexpected costs or emergencies arising during the term of the agreement. This fund will be used at the discretion of [Party Name] to address unforeseen financial needs.
Application of funds for acquisition-related due diligence clause
This variation applies when funds are designated for due diligence during an acquisition.
The funds provided under this agreement shall be used for the due diligence process related to the acquisition of [specified target]. These funds will cover legal fees, accounting audits, market analysis, and any other costs associated with the acquisition process.
Application of funds for long-term investment clause
This variation applies when funds are designated for long-term investments.
[Party Name] agrees to apply the funds to long-term investment initiatives, including equity purchases, real estate investments, or strategic market entries. These funds will be invested with the goal of growing [Party Name]'s assets over time.
Application of funds for research grants clause
This variation applies when funds are designated for research grants.
[Party Name] agrees to apply the funds for research grants and scholarships, supporting academic studies, scientific research, or other initiatives that align with [Party Name]'s mission. These grants will be distributed to qualifying individuals or organizations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.