Purchase Price Adjustment and Earn-Out Clause Pack - Alaska - Free Editor
PURCHASE PRICE ADJUSTMENT & EARN-OUT CLAUSE PACK
Closing Working Capital Adjustment (Sample)
- Target and Mechanic: The Purchase Price will be adjusted dollar-for-dollar to the extent Closing Net Working Capital differs from the Target Net Working Capital of $[TARGET].
- Definitions: Net Working Capital = Current Assets minus Current Liabilities, excluding Cash, Debt, and Transaction Expenses, calculated per GAAP.
- Process: Buyer delivers Closing Statement within [X] days after Closing; Seller has [Y] days to review/objection; disputes to Independent Accountant.
State-Law Considerations (Alaska)
- Confirm Alaska law treatment of implied covenant obligations in earn-out covenants.
- Alaska courts generally enforce contractual earn-out provisions subject to good faith requirements.
[// GUIDANCE: Align with escrow/holdback terms; ensure funds flow ties to these definitions.]
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