Multiple Offer Escalation Clause

ESCALATION CLAUSE ADDENDUM
This Escalation Clause Addendum ("Addendum") is entered into on [Date], and is attached to and incorporated into that certain Purchase Contract dated [Original Contract Date] between [Buyer Name] ("Buyer") and [Seller Name] ("Seller") for the purchase of the real property located at [Property Address], [City], [State] [ZIP] ("Property").
RECITALS
WHEREAS, Buyer and Seller have entered into a Purchase Contract for the Property with a purchase price of $[Original Purchase Price]; and
WHEREAS, Buyer desires to protect its offer in the event other competing offers are submitted by other potential buyers; and
WHEREAS, Seller desires to obtain the highest possible price for the Property; and
WHEREAS, Buyer and Seller wish to establish terms whereby Buyer's offer will automatically escalate above any competing offers, subject to certain limitations.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller agree as follows:
ESCALATION PROVISION
1. AUTOMATIC ESCALATION
Buyer shall automatically escalate its offer price above any bona fide competing written offer by the Escalation Increment of $[Escalation Increment], up to a maximum purchase price of $[Maximum Price Cap], without requiring further action or negotiation from Buyer.
Example: If a competing offer is received for $[Example Competing Offer], Buyer's offer shall automatically escalate to $[Example Competing Offer + Escalation Increment].
2. COMPETING OFFER VERIFICATION
In order to trigger the escalation provision, Seller must provide Buyer with a copy of the competing offer that includes:
- The competing offeror's name
- The competing offer purchase price
- Key material terms (earnest money, closing date, contingencies)
- Proof that the competing offer is a genuine, bona fide offer to purchase the Property

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[Additional clauses and provisions apply...]