The Consulting Agreement After Sale Of Business is utilized when a company acquires a business and wishes to retain the former owner's expertise during the transition period. This U.S. agreement is crucial for ensuring knowledge transfer, maintaining business continuity, and protecting both parties' interests. The document typically follows the closing of a business sale and outlines specific consulting duties, compensation terms, duration of service, and compliance with relevant state and federal regulations. It's particularly important for maintaining operational stability and preserving key business relationships during ownership transition.
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1. Parties: Identification of the consulting party (former owner) and the company receiving consulting services
2. Background: Context of the business sale and need for consulting services
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of consulting services to be provided
5. Term and Termination: Duration of the consulting arrangement and termination provisions
6. Compensation: Payment terms, rates, and reimbursement provisions
7. Confidentiality: Protection of confidential information and trade secrets
8. Independent Contractor Status: Clarification of relationship between parties
1. Non-Competition: Restrictions on competitive activities, typically included when additional protection beyond the sale agreement is needed
2. Intellectual Property Rights: Ownership of work product created during consulting, included when consultant will be creating new IP
3. Performance Metrics: Specific benchmarks or deliverables, included when consulting services need measurable outcomes
4. Insurance Requirements: Required insurance coverage specifications, included when consultant needs specific insurance
1. Schedule A - Services Description: Detailed outline of consulting services
2. Schedule B - Compensation Details: Detailed payment terms and calculations
3. Schedule C - Key Personnel: List of individuals involved in providing services
4. Schedule D - Restricted Activities: Specific activities prohibited under non-compete
5. Appendix 1 - Reporting Requirements: Format and frequency of progress reports
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