EARN-OUT Definition

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EARN-OUT refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement.

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NONCALLABLE is a bond exempt from call by the issuer for a stated period of time.

SETOFF is the discharge of a debt by setting against it a distinct claim in favor of the debtor.

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