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Earnout Provision Sample Clauses

Description: An earnout agreement entitles the seller of a company to ongoing compensation beyond the sale price if the company reaches certain benchmarks. The benchmarks may be based on EBITDA, net income or some other metric. This form provides a sample earnout agreement parties might use in the sale of a brand and contains standard definitions and payment terms.
Form Type: Contract Clauses, Contracts
Practice Area: Corporate & Securities, Employment, Intellectual Property

Date: May 2014
PLI Item #: 58416
Keywords: "earnout provision"; "company revenues"; "gross revenues"; buyer; affiliate; "company business"; sale; license; royalties; "license fees"; transfer; disposition; payments; seller; "net income"; EBITDA
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