Buyout Settlement Clause
Buyout Settlement Clause
Standard Form:
“`Buyout Settlement Clause
In the event of a buyout offer, the parties agree to negotiate in good faith to reach a settlement that is mutually satisfactory to both parties. Such settlement may include, but is not limited to, cash payments, stock options, or other forms of compensation.
The following factors shall be considered in determining the buyout settlement:
- Company size and financial performance
- Market conditions
- Employee retention and morale
- The parties’ respective objectives and goals
- Any other relevant factors
The parties agree to engage in arm’s length negotiations and to disclose all relevant information in a timely manner. If negotiations fail, either party may walk away from the deal.
Additional Provisions:
- Non-binding offer: The buyout offer is non-binding on either party until a written agreement is executed.
- Deadlines: The parties may set deadlines for negotiations.
- Confidentiality: The parties agree to maintain confidentiality during negotiations.
- Dispute resolution: The parties agree to resolve any disputes arising from the buyout settlement clause through arbitration or mediation.
Example:
Buyout Settlement Clause:
In the event of a buyout offer, the Company and the Investor agree to negotiate in good faith to reach a settlement that is mutually satisfactory to both parties. Such settlement may include cash payments, stock options, or other forms of compensation. The Company and the Investor shall consider the following factors in determining the buyout settlement: Company size and financial performance, market conditions, employee retention and morale, the parties’ respective objectives and goals, and any other relevant factors. The parties agree to engage in arm’s length negotiations and to disclose all relevant information in a timely manner. If negotiations fail, either party may walk away from the deal.
