Although provisions sometimes restrict the seller`s activities after the conclusion of the final purchase agreement, transactions may also be structured in such a way that a non-compete or non-debauchery agreement is entered into as an ancillary agreement at the time of conclusion. The purpose of these agreements is to prevent the seller from using its knowledge of the transferred transaction to take measures that may adversely affect the transaction after the conclusion. In the context of a competition remuneration agreement, a seller generally undertakes, for a specified period, not to exploit, directly or indirectly, competing undertakings operating in the same sector and on the same geographical site, to invest in or to provide services to them. Under a non-debauched or non-lease agreement, a seller undertakes, for a certain period, not to recruit or to recruit employees whose employment has been transferred to the buyer. Commercial agreements concluded after the conclusion, such as supply contracts, distribution contracts and real estate lease agreements, determine the terms of the commercial relations between the parties after the conclusion. These agreements are generally necessary to enable the buyer to operate the transaction in the same way as that which was operated by the seller just before the conclusion. For example, the parties may enter into a supply contract if the business for sale receives inventory from another business entity of the seller or a subsidiary of the seller that is not included in the transaction. Similarly, the parties may enter into a distribution agreement after the conclusion if the distributors who serve the target business are retained by the seller and are not included in the transaction. A real estate rental agreement after conclusion is usually concluded in cases where either the seller does not wish to sell the property used in the store, or the buyer prefers to rent the property rather than buy it. If you leave the company, you must resign from any job and/or office you will currently hold. As part of this process, you will be asked to waive any claims you have against the target company, its employees and senior managers, which is usually done through a compromise agreement. For the purposes of this guide, we assumed that your transaction would be structured as a sale of shares and not as a sale of the business or assets.
In the event of a sale of shares, the main transaction documents would be as follows: trust agreements are used when a seller has agreed to deposit part of the purchase price for a specified period after closing. Trust agreements usually exist between three parties – the seller, the buyer and the fiduciary agent, which is usually a bank or other financial institution. Trust agreements establish the trust account and provide for when and how the buyer can assert claims against those funds, either for a working capital adjustment, losses offset by the seller under the sales contract, or both. . . .