Binding on Affiliates Clause Samples
The "Binding on Affiliates" clause ensures that the obligations and rights outlined in an agreement extend not only to the primary parties but also to their affiliated entities, such as subsidiaries or parent companies. In practice, this means that if a company enters into a contract, its affiliates are also required to comply with the contract’s terms, and may benefit from its protections or be subject to its restrictions. This clause is essential for preventing parties from circumventing contractual responsibilities by acting through their affiliates, thereby ensuring comprehensive coverage and accountability across related business entities.
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Binding on Affiliates. To the extent, if any, that this Agreement is not automatically binding on an Affiliate of a Party on or before the Effective Date, such Party will cause such Affiliate to be bound by the terms and conditions of this Agreement applicable to Affiliates to the same extent as if such Affiliate were a party to this Agreement. For avoidance of doubt, if an Affiliate of a Party ceases to be an Affiliate of such Party, all licenses and other rights granted to such Affiliate under the terms of this Agreement shall terminate effective on the date such Affiliate status ceases to exist. Notwithstanding such event or any term or condition of this Agreement to the contrary, all licenses granted by a Party on behalf of such Affiliate to a Grantee and its Affiliates prior to the date such entity ceases to be an Affiliate shall continue in full force and effect for the term of this Agreement.
Binding on Affiliates. Each Stockholder agrees with the other Stockholders and the Company that prior to any transfer of Company Shares to any of its Affiliates (as hereinafter defined), it shall cause such Affiliate to agree in writing to be bound by the provisions of this Agreement. "