Acquisition Consulting Agreement

This is a consulting agreement designed for a situation in which an advisor seeks a buyer for the entire estate of a company. The advisor`s fee is set at 10% of the sale price. The agreement also allows the consultant to provide interim executives that are used by the company during the sale. 1.2 Time and availability. The advisor will devote hours per month to the performance of services to the company, as stated here in this book. The advisor is free to choose the dates and times at which he provides such consulting services during the month, taking due account of the needs of the company. If the company feels it is necessary for the advisor to provide more than hours in a month, the advisor is not required to do this work until the advisor and the company have agreed to a rate of pay. [The time spent can be hours a day, a week or a year. The company may also choose to pay a flat monthly fee, regardless of hours, but the company must be careful for this approach.] With the Tax Reform Act 1986, the ordinary income rate was lowered from 50% to 28% and the capital gain rate was increased to 28%. [The normal maximum income rate has been revised upwards several times since 1986. It is currently 39.6%]. As a result, the interest rate differential, combined with much of the seller`s incentive to prefer the allocation to the good re-commercial, has disappeared.

Buyers and sellers no longer had fiscal adversity. Non-competitive agreements and advisory agreements have thus become attractive in converting an otherwise non-deductible value payment into a tax deduction. 21. The ineffectiveness or inapplicability of a paragraph, clause or provision of this provision does not affect the validity or applicability of the other paragraphs, conditions or provisions of these provisions. Moreover, in such a case, the parties agree that they intend and accept that such a paragraph, clause or provision of this type, deemed unenforceable or unenforceable in the written form, is fully admissible and binding, as if that paragraph, clause or provision had been drafted in a manner and scope that is applicable in the circumstances. H has opened negotiations with W to acquire the W dealers. After a series of meetings, H agreed to acquire the assets of W traders at a price of $1,350,000 above the fair value of tangible assets.