This form is an Asset Purchase Agreement. The buyer agrees to purchase from the seller certain assets which are listed in the agreement. The form also provides a listing of certain assets which will be excluded from the sale. The form must be signed in the presence of a notary public.
Asset Purchase Agreement With Earn Out Provision In Pima
Category:
State:
Multi-State
County:
Pima
Control #:
US-00418
Format:
Word;
Rich Text
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An earnout provision makes the purchase price (typically, some part of it) payable in the future dependent on the buyer's financial performance. An earn-out works as a mechanism that allows the buyer to defer a portion of the purchase price until the occurrence or failure of a predetermined metric.A seller also needs to separate its right to an earnout from the severance provisions of its employment agreement with the buyer. The typical earnout provision entitles the seller to receive further payments if the target, post-closing, meets prescribed benchmarks. Operating expenses are incurred in the normal operation of the College, including a provision for depreciation on capital assets.