Escalation Events Clause Samples
The Escalation Events clause defines specific circumstances or triggers that require an issue or dispute to be elevated to higher levels of management or authority within the involved organizations. Typically, this clause outlines the types of events that qualify for escalation, such as unresolved disputes, breaches, or persistent performance failures, and details the process for notifying relevant parties and the timeline for escalation. Its core practical function is to ensure that significant problems are addressed promptly and at the appropriate level, thereby facilitating resolution and preventing prolonged or unresolved conflicts.
Escalation Events. All controversies, disputes, differences or claims between the parties arising out of or relating to this Agreement, including but not limited to any question relating to the existence, validity, termination, interpretation, performance or enforcement of this Agreement, will be deemed an “Escalation Event” and subject to the following escalation process. An Escalation Event first will be discussed in good faith by the parties at a mutually convenient location in an attempt to resolve the Escalation Event amicably, in whole or in part. A senior director or vice president of business development with decision- making authority of each party (“Senior Business People”) will participate in these discussions. If the Senior Business People cannot resolve the Escalation Event within five days, then each party will designate a senior executive with decision-making authority (“Senior Executive”) to meet and confer in an effort to resolve the Escalation Event. If the Senior Executives cannot resolve the Escalation Event within 5 days, then the chief executive officers of the respective parties (“CEO”) will meet and confer in an effort to resolve the Escalation Event. Any decisions and resolutions of the Senior Business People, Senior Executives or CEOs will be final and binding on the parties once reduced to writing and signed by the parties. If the procedures outlined under this Section 13.12(a) fail to resolve an Escalation Event, then the parties hereby agree to submit the issue to binding arbitration pursuant to Section 13.12(b).