H1 Termination on Change of Control and Insolvency Sample Clauses

The 'Termination on Change of Control and Insolvency' clause allows a party to end the agreement if the other party undergoes a significant change in ownership or becomes insolvent. Typically, this means that if a company is acquired, merges with another entity, or enters bankruptcy or similar financial distress, the unaffected party can terminate the contract without penalty. This clause is designed to protect parties from being bound to agreements with entities whose ownership or financial stability has fundamentally changed, thereby managing risk and ensuring business continuity.