Sample Disclosure Schedule Asset Purchase Agreement


Because ill-prepared disclosure plans have the potential for significant liability, it is important that they be carefully and carefully developed. Last-minute disclosure plans are likely incomplete or insufficient, resulting in problems with finding or injecting unnecessary risks into the transaction. The second type of disclosure plan is an “exceptional” schedule. An “exceptional” schedule occurs when the seller qualifies an insurance or guarantee that he has provided in the acquisition contract. This information limits the scope of the seller`s insurance or warranty and limits the seller`s potential liability. Below is a link to an example of disclosure plans that are often required for an AM transaction. Note that the exact scope and language of the trading schedules can be deepened, so the final form of the disclosure plans will often be significantly different from the one shown below. But this is a good starting point for the seller`s staff to prepare the first draft of disclosure plans. Exclusions of liability at the beginning of disclosure plans are important. An example may be the seller who gives a guarantee in the sales agreement that the company is not involved in litigation or legal proceedings. If the seller is indeed a defendant in an essential dispute, this must be included in the disclosure plan. If the sales contract does not contemplate a concomitant signature and a concomitant conclusion when the transaction is concluded at the time of signing the sales contract, the period will be extended between the signing and the conclusion. The period between signing and closing can range from day to month, depending on the conditions that must be met before closing.

If an update was allowed or necessary, the studies also examined whether (1) the information that could be updated was limited to information after the signing; and (2) the buyer`s right to compensation was limited with respect to the updated information. [4] In practice, it is likely that the seller will be able to conduct such an update unilaterally if an agreement on updating the disclosure plan is silent, which is likely that he would not be able to unilaterally make such an update (the same result as a ban on updates). Information plans are a common component of a merger sale agreement (whether it is a share purchase agreement, an asset repurchase agreement or a merger agreement). Disclosure plans contain factual information (or exceptions to certain statements) regarding insurance and warranties. [2] As such, disclosure plans are an integral part of the seller`s insurance and guarantees and have a direct impact on the extent and liability of the seller in connection with these insurances and guarantees. The information contained in the advertising plans is generally categorized into two distinct categories: similarly, an update, whether it refers to new information or new facts, may be relevant as opposed to the information available at the time of signing and the information that exists at the time of signing.