Common use of Deferred Consideration Clause in Contracts

Deferred Consideration. In connection with a Company Sale, if any portion of the transaction consideration to be received by equityholders of Chloe is subject to any contingency or future event including, without limitation, transaction escrow arrangement, holdback, installment arrangements or earnouts (“Deferred Consideration”) is received by equityholders of Chloe in connection with a Company Sale, a portion of the proceeds (representing the incremental dollars to be distributed under Chloe’s distribution waterfall then in effect) to be received by the Grantee in respect of the Incentive Units may be made subject to such deferral arrangement on the same basis as the transaction consideration to be received by such equityholders is made subject to such arrangement (taking into account any applicable requirements under Section 409A of the Code).

Appears in 3 contracts

Sources: Incentive Unit Award and Contribution Agreement (Signify Health, Inc.), Incentive Unit Award and Contribution Agreement (Signify Health, Inc.), Incentive Unit Award Agreement (Signify Health, Inc.)