Seller Consulting Agreement

Seller Consulting Agreement

Drafts a post-closing consulting agreement where the seller provides transition services to the buyer, aligned with the underlying purchase documents.

Prerequisites

Collect before drafting:

1. Transaction documents — purchase agreement, schedules, earnout/holdback terms.
2. Service scope — topics, deliverables, frequency, timeline.
3. Compensation — rate/retainer, expense policy, payment terms.
4. Restrictive covenants — existing non-compete/non-solicit in deal docs.
5. IP/work product — ownership expectations, system access needs.
6. Governing law/venue — preferred state and dispute forum.

Quick Start

1. Gather term sheet inputs (see table below).
2. Draft agreement following the clause outline.
3. Cross-check against purchase agreement for conflicts.
4. Attach schedules for complex scope, rates, or restrictions.

Term Sheet Inputs

Capture these before drafting:

Agreement Outline

1.  Parties; Effective Date
2.  Recitals (reference transaction + consulting purpose)
3.  Definitions (Confidential Information, Services, Work Product)
4.  Scope of Services; Deliverables; Availability; Location
5.  Standard of Performance; No Agency Authority
6.  Independent Contractor; Taxes; Benefits
7.  Compensation; Invoicing; Payment Terms; Late Fees
8.  Expenses; Approval; Documentation
9.  Term; Renewal; Termination (cause + convenience); Effect of Termination
10. Confidentiality; Permitted Disclosures; Return/Destruction
11. Work Product Ownership; IP Assignment; License-Back (if needed)
12. Representations and Warranties (authority, compliance, non-infringement)
13. Indemnification (mutual); Defense control; Mitigation
14. Limitation of Liability; No Consequential Damages; Carve-outs
15. Restrictive Covenants (align with purchase agreement)
16. Governing Law; Venue; Dispute Resolution; Injunctive Relief
17. Miscellaneous (Notices, Assignment, Entire Agreement, Amendment,
    Severability, Counterparts, E-Signatures)
18. Signatures

Optional Schedules

Pitfalls and Checks

• Purchase agreement alignment — term, restrictions, and confidentiality must not conflict with the deal documents.
• No managerial authority — avoid language granting consultant operational control unless explicitly required.
• Earnout/holdback linkage — if compensation ties to earnout, mirror purchase agreement mechanics exactly.
• Liability cap carve-outs — carve confidentiality and IP breaches from general liability caps.
• Return/destruction — include clear obligation for client materials at termination.
• Arbitration specifics — specify seat, rules, arbitrator count, and fee allocation.
• Non-compete enforceability — confirm jurisdiction-specific limits on scope and duration.
• Statutory citations — mark with [VERIFY] for any added by the drafter.

Key changes made:

• Frontmatter: Removed tags (not in spec), tightened description with clear trigger guidance.
• Eliminated redundancy: The original had three overlapping sections (clause checklist, drafting template, term sheet) that largely repeated the same items. Consolidated into one term sheet table + one agreement outline.
• Added Quick Start: Four-step summary for fast orientation.
• Renamed sections: "Output Structure / Process" → focused sections (Term Sheet Inputs, Agreement Outline). "Guidelines" → "Pitfalls and Checks" for scannability.
• Reduced from 115 → ~88 lines while preserving all domain-accurate legal content.