Corporate & Business

Earnout Agreement

Standalone earnout for an acquisition: measurement metric and definition, targets and tiers, payment timing, buyer operating covenants, acceleration on change of control or termination of a key person, set-off, and an accountant referral to resolve disputes. Two signers (buyer and seller).

📄 2 signers📅 45-day expiry🏷 Corporate & Business🔖 two-signers, agreement, m-and-a, earnout

About this template

The Earnout Agreement is a ready-to-use corporate & business template you can send for signature in minutes. It is written for 2 signers (buyer and seller) and, by default, expires 45 days after it is sent if left unsigned. It covers two signers, agreement, m and a, earnout. Like every Abundera Sign template it is a convenience draft structured for ESIGN Act and UETA compliance, not a substitute for legal advice. Each signed copy is sealed with PAdES-LTA digital signatures, dual RFC 3161 timestamps, and a tamper-evident evidence package in WORM storage.

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# Earnout Agreement **Effective Date:** ___________ This Earnout Agreement ("Agreement") is entered into by and between: **Buyer:** ___________ ("Buyer") **Seller:** ___________ ("Seller") **Target business acquired:** ___________ **Purchase agreement this earnout relates to:** ___________ This Agreement sets out the contingent consideration payable to Seller in addition to the closing consideration under the purchase agreement identified above. ## 1. Earnout Period **Start of the earnout period:** ___________ **Length of the earnout period:** ___________ **Measurement frequency:** ___________ ## 2. The Metric **Metric the earnout is measured on:** ___________ **Precise definition of the metric, including inclusions, exclusions, and adjustments:** ___________ **Accounting standard applied:** ___________ The metric shall be calculated consistently across every measurement period. Changes in Buyer's group accounting policies shall be disregarded to the extent they would otherwise change the result. **Costs expressly excluded from the calculation:** ___________ Buyer's group overhead allocations, management charges, and acquisition or integration costs are excluded unless expressly listed as included above. ## 3. Targets and Amounts

Fields (41)

effective date
date · required
buyer name
text · required
seller name
text · required
target name
text · required
purchase agreement
text · required
earnout start date
date · required
earnout length
select · required
measurement frequency
select · required
metric type
select · required
metric definition
textarea · required
accounting standard
select · required
excluded costs
textarea · required
max earnout
currency · required
earnout structure
select · required
target schedule
textarea · required
below threshold
select · required
statement days
select · required
objection days
select · required
payment days
select · required
payment method
select · required
covenant standard
select · required
specific covenants
textarea
resourcing commitment
textarea
information rights
radio · required
acceleration events
select · required
acceleration amount
select · required
key person linked
radio · required
key person name
text · required
key person effect
select · required
setoff permitted
select · required
security provided
radio · required
security form
textarea · required
negotiation days
select · required
expert fees
select · required
governing law state
select · required
dispute forum
select · required
additional terms
textarea
buyer signer name
text · required
buyer signer title
text · required
seller signer name
text · required
seller signer title
text · required

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Every signed document gets PAdES-LTA digital signatures, dual RFC 3161 timestamps, and a tamper-evident evidence package sealed in WORM storage.

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