The phrase "a contingent payment" is correct and usable in written English.
It can be used in financial or legal contexts to refer to a payment that is dependent on certain conditions being met.
Example: "The contract stipulates that a contingent payment will be made upon the successful completion of the project."
Alternatives: "conditional payment" or "dependent payment".
CPAM implies that the buyer should first design and announce a contingent payment function that specifies a payment for each possible quality level before the bidding begins.
Commerzbank will take the hit on first losses on these assets of up to €275m, but has put another €975m into the vehicle to cover additional losses and earmarked this amount as a contingent payment to Allianz.
Lyondell, based in Houston, will pay Occidental 30 million to 34 million shares, give it five-year warrants to buy Lyondell stock for $25 a share, and make a contingent payment of as much as $35 million.
The overall deal includes a cash consideration of $2.65bn £1.69bnn) and a "contingent payment".
In addition to this, Exxon will have to make a contingent payment of about $1 billion to the Bass family post 2020.
According to the release, "AT&T will acquire all the equity of NextWave for approximately $25 million plus a contingent payment of up to approximately $25 million and, through a separate agreement with NextWave's debt holders, all of the company's outstanding debt will be acquired by AT&T or retired by NextWave, for a total of $600 million in cash".
The deal would entail Sillerman purchasing at $3.25/per all the shares in the company he doesn't already own, with an upfront payment of $1.75 a share, up to $50 million in pro-rata payments, and a $1 a share contingent payment right if he succeeds in selling the company within five years.
A company commits itself to a future contingent payment but does not account for the liability.
For his work for Global Crossing, Mr. Perle's fee, outlined in papers that the company is preparing to file in as part of a bankruptcy proceeding, is $725,000, including a unusual contingent payment of $600,000 if the company succeeds in obtaining approval to complete the deal.
Stock works better than cash because (1) its value is partially correlated with the value of the merged firm, thereby reducing the burden of having to structure a large contingent payment; and (2) with respect to post-closing moral hazard, the parties partly internalize the deadweight loss from engaging in earnings management (signal manipulation).
The total value of $15.75 a share is a premium of about 19 percent to Optimer's closing price of $13.29 on Tuesday, but it represents a discount minus the contingent payment.
