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SCOUT v. WEMAgreement Structure
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Price TermsNon-Price Terms
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HazardsUpfrontContingentOngoingAsset DefinitionPerformance RulesPerformance StandardsControl Rights[Redacted][Redacted][Redacted][Redacted]
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Deal Party EffectsExogenousCustomer Behavior Changes
("Demand Shocks")
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Input Availability Changes
("Supply Shocks")
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Is That a Death Star Up in the Sky?
("Force Majeure" Events)
Exhibit A 1.2Sec 12
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[Other anticipated Shocks]Sec 12 (insurance)Sec 8Sec 1Sec 6 (tax liability); Sec 9.6; Sec 4Sec 6 (tax liability); Sec 4
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Endogenous (Bilateral)Syncing the Dance Partners
("Coordination Problems")
Sec 11; Sec 10Sec 10
Sec 2; Sec 7 (Records); sec 9.3; Sec 6
Sec 2; Sec 2; Sec 3; Sec 6
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You Aren't Who You Said You Were
("Adverse Selection")
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You're Taking Risks, and I Bear the Costs
("Moral Hazard")
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You're Not Carrying Your Weight
("Shading Performance")
Sec 4; Sec 8; Sec 5; Sec 7; Sec 14Sec 5; Sec 5; Sec 7
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You're Holding Me Up for a Bigger Slice of the Pie
("Relationship Specific Investment")
Sec 3
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[Other bilateral effects]Sec 13
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Social EffectsPositive ExternalitiesOthers Are Riding My Coattails
("Reputational Spillovers")
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Others Are Taking My Ideas
("IP Spillovers")
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Others Are Poaching My Employees
("Agglomeration Effects")
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[Other]
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Negative ExternalitiesYour Balance Sheet Infected
My Balance Sheet
("Financial Contagion")
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Yes the planet got destroyed. But for a
brief moment in time we created a lot of value for shareholders.
("Environmental Harm")
Sec 8dSec 9.42/ 9.41/9.4Sec 18
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Employee WelfareSec 18
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[Other Special Harms]Sec 9.5; Sec 8e
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