If you are purchasing (or selling) a business, it is critical that you conclude a written agreement. This agreement ticks the boxes and also includes a restraint of trade in terms whereof the seller of the shares undertakes to not compete with the Company.
Profit incentive policies are often undocumented and this can lead to serious disputes down the line. These disputes can include the manner of calculation of the incentive scheme, or (for example) the taxation related aspects. We strongly recommend that a written profit incentive policy is put in place.
This agreement provides for the cession of a contract from one party to another. If the contract incorporates obligations by the cedent and/or if the contract itself precludes a cession in the absence of the consent of the cessionary, then a written cession of the agreement is required.