The Poison Pill Sample Clauses

The Poison Pill. As incentive to both parties, counsel may consider conditioning the monied spouse's obligation to pay an "exit bonus" on the non-monied spouse's waiver of contest of the agreement at the time of divorce. Of course, if a "poison pill" clause is inserted, the agreement should clearly stated that the non-monied spouse is not prospectively waiving any right to contest the validity of the agreement, and that the spouse is entitled under the law to attack the agreement at the time of divorce. However, the agreement should also clearly state that if the non-monied spouse contests the validity of the agreement, he or she waives any and all right to receive benefits under the "exit bonus" clause. Counsel for the non-monied spouse may consider inclusion of a provision stating that any contest to the agreement by the monied spouse does not relieve him or her of the obligation to pay the "exit bonus" to the non-monied spouse. The combination of the "exit bonus" and "poison pill" clauses creates additional incentive for the parties to abide by the terms of the agreement in the event of a subsequent divorce. Thus, it less likely that the premarital or postmarital agreement will be attacked and more likely that it will be enforced as the parties intended.
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Related to The Poison Pill

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