New Hampshire Standstill Agreement of Grossmans, Inc. - Internal agreement regarding shareholders of single company
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FAQ
An agreement between two people or companies in which the person or company lending money agrees that the loan need not be paid back for a period of time: The company has a standstill agreement on its debt repayments.
A standstill agreement prevents a party from issuing proceedings during the currency of that agreement. As such a standstill agreement is a voluntary contractual arrangement between the parties to pause limitation for an agreed length of time (typically 3-6 months).
Example: if a party, in a trade agreement, commits to allowing 30% foreign ownership in domestic companies and later on decides unilaterally to allow 40%, the party can re-introduce the original level of 30% whenever it wishes (but it cannot restrict further below 30%).
What is a Standstill Agreement? A standstill agreement refers to a contract that contains provisions that direct how a bidder of a company can buy or sell a stock of the target company. It can effectively delay or stop the process of a hostile takeover if the parties cannot settle a friendly deal.
: an agreement under which litigation is forestalled between two parties. : an agreement under which a party agrees to refrain from taking further steps to acquire control of a corporation (as by additional purchases of stock)