Earnout Agreement Template for Malaysia

1. Tax Treatment: Specific provisions regarding the tax treatment of earnout payments, used when parties agree to specific tax allocation or treatment

2. Security Arrangements: Provisions for securing earnout payments, used when additional payment security is required

3. Employment Conditions: Terms relating to continued employment of key personnel, used when earnout is linked to employee retention

4. Acceleration Events: Circumstances triggering immediate payment of earnout, used when early payment conditions are desired

5. Anti-manipulation Provisions: Specific protections against manipulation of earnout metrics, used in complex financial calculations

6. Third Party Rights: Rights of third parties under the agreement, used when third parties have specific interests in the earnout

7. Parent Company Guarantee: Guarantee provisions from a parent company, used when additional financial security is required

1. Calculation Methodology: Detailed explanation and examples of earnout calculations

2. Financial Metrics Definitions: Specific definitions and formulas for financial metrics used in calculations

3. Form of Earnout Statement: Template for presenting earnout calculations and supporting information

4. Excluded Items: List of items to be excluded from earnout calculations

5. Key Personnel: List of key employees relevant to the earnout arrangement

6. Accounting Principles: Specific accounting principles and policies to be applied

7. Sample Calculations: Examples of earnout calculations under different scenarios