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Earn-In Provision
A clause in an acquisition agreement that allows the seller to earn additional compensation if the acquired business achieves specific milestones.
Implications
(Same as Earn-In Clause above) A legal provision in an agreement that allows one party to gradually increase their ownership stake based on predefined milestones or contributions, ensuring that the party�s involvement and success are rewarded with a greater share of the profits or control.
Example
Example: A biotech firm enters an agreement with a research partner, including an earn-in provision that grants the partner additional equity as they achieve key R&D milestones.
Related Terms
Same as above.
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