Earn-Out Agreement

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Earn-Out Agreement

An agreement in which one pays a lump sum to buy a company and states that he/she will pay a further sum if certain, stated conditions are met. An earn-out agreement is a type of contingent contract.
References in periodicals archive ?
12, 2014 /PRNewswire/ - RDX Technologies Corporation ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE:RL7), a water treatment and energy technology company, today announces the acquisition of M2 Renewables ("M2R") previously located in southern California for cash and RDX common shares under an earnout agreement.
Each of these metrics can be manipulated by the buyer after the transaction, so the seller should include various protections in the purchase agreement or earnout agreement.
The primary subject matter of this case concerns the cross-cultural negotiation of an earnout agreement between Denshi Global Holdings, a publicly-traded Japanese company, and Informatica de Sistemas, S.
An earnout agreement based on future sales may contribute additional revenues.
As the result of Advocate, MD's better than originally projected performance during the first year of the performance period and the anticipated performance of Advocate, MD over the entire two-year performance period, FPIC has increased its estimate of additional consideration payable under the Earnout Agreement from $7.
THE LAST PHASE OF THE NEGOTIATIONS--THE EARNOUT AGREEMENT
Because Hub's current market price is significantly greater than the share price calculated under the Talbot earnout agreement, our company, with board approval, elected to make the first earnout payment in cash," said Martin P.
The Fund was also eligible for additional consideration of $11 million pursuant to an earnout agreement based on future performance.
In addition, the company will pay CGW up to 1,500,000 shares on an earnout agreement for value-added products and outside contracts based on one share per $10 of income generated.
Additional revenues may be derived from an earnout agreement that is based upon the buyer's future sales.
NASDAQ:VRSA) (AEX:VRSA), a rapidly growing, facilities-based, competitive provider of voice, data and Internet services in Europe, today announced that it has completed the closing of its recently announced acquisition of 100 percent of the outstanding stock of VEW TELNET, a wholly owned subsidiary of VEW ENERGIE AG, and a long term right to use the fiber optic network of VEW TELNET, which is owned by VEW ENERGIE, for a total purchase price EUR 120 million, consisting of EUR 65 million in cash and EUR 55 million of deferred payments under a three-year earnout agreement, subject to performance adjustments.
The earnout agreement is for three years and no payments will be made unless pretax income exceeds $225,000.