Post Close - Contracting Company - Services or Management Agreement

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November 28, 2022

by a searcher from Brigham Young University in Kahului, HI, USA

Closing on a contracting company.

Our new entity will not be licensed in time,

Verbal agreement has been made to continue to use the seller license via a partnership, management agreement or services agreement. Anyone have experience with a similar situation or a draft agreement?

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Reply by a searcher
from University of Chicago in Chicago, IL, USA
Yes. We have done this several times. Basically you agree to manage the operations on behalf of the seller who still has the licenses. They want to make sure there is no liability, you want to make sure there is no interference. Pretty straightforward. I could probably rustle up an agreement on this from a while back if your lawyer doesnt have one
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Reply by a professional
from Dartmouth College in Los Angeles, CA, USA
Very common situation, often the agreement to utilize the license is baked into the purchase agreement, but it should be fairly simple to prepare a draft management agreement. You can look online or your lawyer should be able to put together pretty quickly.
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