What is a VAM agreement?

If one day, you become an investor, you are optimistic about the entrepreneur's project and want to invest, but you are worried about the uncertainty of project development. Then you must sign a gambling agreement with him before investing, otherwise your money may be wasted. So, what is a VAM agreement?
VAM agreement, also known as valuation adjustment agreement. It means that when the investor and the financier reach an equity financing agreement, they are designed to solve the uncertainty of the target company's future development, information asymmetry and agency costs between the two parties, including equity repurchase, monetary compensation, etc. Agreement to adjust the company's valuation. The vernacular understanding: It is the requirements that investors put forward for the project when they invest in the project, which is VAM.
In July 2015, Jiaxing Media, where the female star Yang Mi works, backdoored Xi'an Tongda and listed on the NEEQ. In October 2015, the strategic investor Shangshi Films was introduced and a "gambling agreement" was signed. Shangshi Pictures acquired 20% of Jiaxing for 300 million yuan, and Jiaxing Media's accumulated after-tax net profit in 2015-2017 will reach 310 million. Otherwise, Jiaxing will have to repurchase shares from Shangshi and pay an annual interest of 15%.
In the end, Jiaxing completed the bet with a profit of 402 million yuan, and the market value of Jiaxing increased from 25 million to 5 billion during the period, achieving a win-win situation for Jiaxing and Shangshi. At that time, Yang Mi also held shares in Jiaxing Company. It is said that the market value of his shares is 500 million, and he has properly become the female boss.
In 2008, South Beauty, which already had a place in the high-end catering industry, entered into a "VAM Agreement" with CDH Investments with the goal of going public in order to further expand the scale of the enterprise. The two parties agreed: CDH Venture Capital invested about 200 million yuan in South Beauty, accounting for 10.53% of the shares in South Beauty. At the same time, it was agreed that if South Beauty could not be listed at the end of 2012, South Beauty would have to repurchase shares with double the investment.
However, in 2011, due to the lack of valid audit credentials and other reasons, the IPO was suspended by the China Securities Regulatory Commission. The failure of the listing triggered the repurchase clause, and Zhang Lan was unable to spend 400 million for repurchase, so Zhang Lan could only sell her own shares and then lost control of the company. And Big S' dream of a wealthy family was shattered, and finally divorced Wang Xiaofei.
Is there any gambling in daily life?
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