Vary sentence in a Change in Control Agreement - Online Editor

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How to vary sentence in the Change in Control Agreement

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A change of control clause in a contract outlines the procedures and implications when one party undergoes a change in ownership or management. This clause is particularly crucial during transactions such as mergers, acquisitions, or company sales. While it may seem like standard boilerplate language, experienced contract drafters emphasize its importance to ensure a smooth transition during future ownership changes. Parties engaged in sophisticated contract negotiations focus on precisely drafting these clauses to protect their interests during potential changes in corporate control.

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What is the change of control clause in practical law?

In employment contracts, a change of control clause usually entitles the employee to a specified payment or enhanced notice period if their employer is taken over and the takeover results in dismissal by their employer or a material reduction in the employees responsibilities leading to constructive dismissal within a

What is an example of a change of control clause?

Change of Control Clause: Example The Customer shall have the right, without prejudice to its other rights or remedies, to terminate this Agreement by 3 months written notice to the Supplier, if there is a Change of Control of the Supplier.

What constitutes change of control?

What is Change of Control? In finance, a Change of Control occurs when there is a material change in the ownership of a company. The exact criteria that determine such a change can vary and are defined by law and through contractual agreements.

What does change of control mean in a credit agreement?

Change of Control means any event, transaction or occurrence as a result of which (a) the equity owners of Borrower on the date hereof shall cease to own and control, directly orindirectly, at least fifty percent (50%) of the economic or voting rights of the outstanding Capital Stock of Borrower on a fully-diluted

What is a good reason change in control?

Change in Control Good Reason means any of the following: (i) a material diminution in Employees authority, duties or responsibilities, (ii) a material diminution in Employees base salary, (iii) a material change in the geographic location at which Employee must perform services, (iv) a material diminution in the

What does change of control mean in an agreement?

Parties normally seek to include provisions in an agreement that allow for either termination or an adjustment of their rights, such as payment, upon a change of structure or ownership of the other party. This is known as a change of control clause.

What is the change of control clause in a supply agreement?

If there is a change in control in the ownership, control, and/or legal form of the Supplier, which results in more than 50% of the shares in the Supplier being controlled by another party and/or voting control of the Supplier being acquired by another party and/or control of the composition of the board of the

What is the change of control clause in a service agreement?

Also known as change of control. A provision in an agreement giving a party certain rights (such as consent, payment or termination) in connection with a change in ownership or management of the other party to the agreement. Not all change of control provisions are triggered by the same action.

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