The business contract agreement
The business contract agreement between William Smith Company LLC and Capital Edge company LLC aims at ensuring there is the provision of advice as far as William’s company ways of raising additional capital are concerned. Also, the company will be advised on suitable strategies for growth, methods of identifying other stakeholders such as contractors, vendors, strategic partners as well as the distributors for the company products. Similarly, the contract will ensure the William Smith company gets advice concerning how to identify and new opportunities in the environment, an aspect that the Capital Edge firm has agreed to help William Smith to secure. Also, the two firms will embark on other issues that they may mutually agree to undertake.
Duration and Amendments
Upon agreement, the deal is expected to run for 12 months with an additional six months that will be exercised after the first year unless either of the two parties terminates the contract. The execution of this agreement will lead to the acquisition of 9% non-diluted interest of Williamson Smith company by Capital Edge. Also, William company will have an option of purchasing the shares of Capital Edge shares for up to two-thirds of the total shares upon successful completion of the contract. Upon agreement, William company will amend its documents to reflect Capital Edge’s interest in the firm. The amendments will recognize Capital Edge’s benefits as profit interest at a rate of 9% before tax. The agreement will permit Capital Edge together with its partners to participate in William’s financing activities such as the issue of securities. Also, the deal will entitle Capital Edge to receive a 12% commission of the gross revenue earned in the course of William Smith business activities. The agreement will lead to William Smith Company paying for the expenses of Capital Edge as well as indemnify the company and its officers during and after the expiry of the agreed term. The agreement shall not bind the consultants as they will be free to undertake duties for other companies.
Disadvantages of the Agreement
Although the agreement may help the firm, it has a lot of detrimental effects to the firm, and you should consider rejecting the deal since the disadvantages outweigh the advantages.
