Business Discretion Clause Samples
The Business Discretion clause grants one party the authority to make decisions or take actions based on its own judgment and business interests, without requiring approval from the other party. In practice, this means that the party with discretion can determine how to allocate resources, set priorities, or modify procedures as it sees fit, provided such actions do not violate the overall agreement. This clause is essential for allowing flexibility and responsiveness in business operations, ensuring that a party can adapt to changing circumstances without being hindered by rigid contractual constraints.
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Business Discretion. Acquiror shall have sole discretion with regard to operation of the business of the Company from and after the Closing; provided, however, that following the Closing and during the Earn-Out Period, Acquiror hereby covenants and agrees (i) to not take (or omit to take), and to cause its applicable Affiliates (including the Company) not to take (or omit to take), any action with the primary intent of frustrating the achievement of the Earn-Out Target or the Earn-Out Threshold and (ii) to work in good faith business judgment to support and use commercially reasonable efforts to assist the Company and its management to achieve the both the Earn-Out Target and the Earn-Out Threshold.
Business Discretion. Subject to the last sentence of Section 2.5.3(d), Buyer shall have sole discretion with regard to operation of the business of the Company from and after the Closing; provided, however, that if the Closing occurs prior to the expiry of the Earn-Out Period, following the Closing and for the duration of the Earn-Out Period, Buyer hereby covenants and agrees to not take (or omit to take), and cause its applicable Affiliates (including the Group Companies) not to take (or omit to take), directly or indirectly, any action with the purpose or intent of avoiding, reducing, impairing, adversely impacting, or preventing the achievement of the Earn-Out Payment and the Earn-Out Milestone.
Business Discretion. The Company reserves the right to alter or expand its business operations at its discretion. This may include but is not limited to:
a. Starting new lines of business,
b. Acquiring or merging with other businesses,
c. Investing in new industries or ventures,
d. Changing operational structures or strategies, e. Incurring expenses for expansion or reorganization. There is no guarantee that such changes will result in financial gain or be beneficial to the Company or its Bondholders. Bondholders and shareholders acknowledge and agree that the Company’s management may make such changes as it deems beneficial for the future of the Company.