Residuals Clauses in NDAs

Another in a series of very helpful cartoons from our friends at the Hogan Lovells M&A team on the use of 'residuals' clauses in nondisclosure agreements. The explanation of how they work here is very clear. Residuals clauses are just one of those things sellers may have to live with.

    

-bjmq

 

Earlier M&A Cartoons here:

• Negotiating Accuracy of Representation Clauses
• Negotiating Specific Performance Clauses
• Key Employee Provisions
• Waivers of Consequential Damages
• MAE Carveouts
• Defining MACs
• Hell or High Water Provisions
• Use Restrictions in NDAs
• Indemnification Provisions
• Sandbagging Provisions