united-states contract-law shareholders virginia
Do Revenue Sharing Agreements Carry on when the company is sold?
<p>I've had an agreement with the Virginia company I work for to receive 1% of the generated revenue on a monthly basis. Of course that was after a long time of me being with the company (the bulk of my career). After enjoying the benefits of this agreement for about half a year, the company was sold (merged) for an undisclosed amount. The speculation is that it was sold for about 5M+. Am I entitled to get my share for this final transaction (about 50k+) or is that not considered a revenue and I'm out for good?
Neither the old owner nor the new one said a word of course.</p>

<p>That is going to depend on the exact wording of the agreement, but it is probable that it defines &quot;revenue&quot; as revenue from ordinary transactions, and excludes a sale of the entire firm.</p>
<p>The jurisdiction you are in (country and quite possibly state/province) may also matter.</p>

<p>I see more promise in trying to get 1% of the future revenue from the the portion of the new company that does the business that the old company did.</p>
<p>Buying a company from its owners is nothing like revenue or profits or capital gains or anything else to the <em>company</em> itself. I hope whomever you had the verbal agreement with to acknowledge that verbal contract but there should be internal company records of the payments to you and knowledge of people in accounting, etc. to back up the fact that they had been calculating any paying you per that formula.</p>
