Buyout provisions in a contract outline the terms and conditions under which one party can terminate the agreement prior to its natural expiration, often involving a financial payment to the other party. These provisions are commonly used to provide flexibility, allowing parties to exit the contract under specified conditions, while compensating the other party for any potential loss.
Buyout Provisions. Except with respect to an Option whose Exercise Price exceeds the Fair Market Value of the Shares subject to the Option, the Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish.”
Buyout Provisions. The Committee may at any time (i) offer to buy out for a payment in cash or cash equivalents a SAR previously granted, or (ii) authorize a Participant to elect to cash out a SAR previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish; provided, however, that except as permitted under Section 12(c) in connection with a merger or reorganization, the Committee shall take no such action unless such action has been approved by the Company’s stockholders.”
Buyout Provisions. Within the limitations of the Plan, including the limitations in Section 5.6, the Administrator may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Administrator shall establish.
Buyout Provisions. Upon the termination of Optionee’s Continuous Status as an Employee or Consultant, the Board may, in lieu of the issuance of Shares upon the exercise of an Option, pay to Optionee the difference between the Exercise Price and the Fair Market Value of the Shares as of the date of exercise.
Buyout Provisions. Subject to Section 9(b), the Administrator may offer to buy out for a payment in cash or Shares an SAR previously granted based on such terms and conditions as the Administrator shall establish and communicate to the Participant at the time that such offer is made; provided that the Administrator shall not make such offer without the consent of the Company’s stockholders with respect to an SAR with a per share exercise price that is greater than Fair Market Value on the date of such offer.
Buyout Provisions. The Board may at any time (a) offer to buy out for a payment in cash or cash equivalents an Award previously granted, or (b) authorize a Participant to elect to cash out an Award previously granted, in either case at such time and based upon such terms and conditions as the Board shall establish.
Buyout Provisions. Upon approval of the Committee, the Company may repurchase a previously granted Option from a Participant by mutual agreement before such Option has been exercised by payment to the Participant of the amount per Common Share by which: (i) the fair market value of the Common Shares subject to the Option on the business day immediately preceding the date of purchase exceeds (ii) the Exercise Price; provided, however, that no such buyout shall be permitted if prohibited by Section 6.7.
A Buyout Provision is a clause included in some contracts that outlines the conditions under which one party can purchase the interest, shares, or stake of another party involved in a business or property. These provisions are commonly seen in business partnership agreements, shareholder agreements, and real estate contracts. They serve to protect the interests of all parties by providing a clear process for buyouts, thereby preventing potential disputes and ensuring a smooth transition of ownership.
Incorporate a Buyout Provision when you are entering into a partnership or any business agreement where there is joint ownership or shared interest. These provisions are particularly useful in situations where:
When drafting a Buyout Provision, clarity and comprehensiveness are key. Here are some steps and elements that should typically be included:
Buyout Provisions are commonly found in the following types of contracts:
These provisions are critical in providing a clear path forward when one party wants to extricate themselves from the business relationship, minimizing potential disruptions and disagreements.
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
A buyout clause is a contractual provision that allows one party to terminate the agreement by paying a predetermined amount to the other party, essentially permitting the purchase of rights or release from obligations. Typically utilized in employment contracts, sports agreements, or partnership terms, a buyout clause provides financial security and predictability by outlining the conditions and costs associated with ending the relationship early.
A call right is a contractual clause that grants a party the ability to buy a specific asset or financial instrument at a predetermined price within a certain period. This provision is often used to provide flexibility and control to the party holding the right, allowing them to capitalize on favorable market conditions or strategic opportunities.
A cancellation of promissory note clause outlines the conditions under which a promissory note, which is a financial instrument detailing a borrower's obligation to repay a loan, can be canceled or deemed null and void. This clause typically specifies circumstances such as full repayment, mutual agreement, or certain legal events that would lead to the termination of the borrower's obligations under the note.
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