Purchase Agreement: Earn-Out with Milestones | Practical Law

Purchase Agreement: Earn-Out with Milestones | Practical Law

This Standard Clause provides for contingent earn-out payments after the closing that become payable to the seller if certain specified events occur. These types of contingent payments are often referred to as milestone payments. This Standard Clause can be used in connection with a private stock purchase, asset purchase, or merger. It has integrated notes with important explanations and drafting and negotiating tips.

Purchase Agreement: Earn-Out with Milestones

Practical Law Standard Clauses w-000-7538 (Approx. 15 pages)

Purchase Agreement: Earn-Out with Milestones

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
This Standard Clause provides for contingent earn-out payments after the closing that become payable to the seller if certain specified events occur. These types of contingent payments are often referred to as milestone payments. This Standard Clause can be used in connection with a private stock purchase, asset purchase, or merger. It has integrated notes with important explanations and drafting and negotiating tips.