Shop clause in the asset purchase agreement effectively precluded it from seeking other purchasers, seller sued buyer to compel it to close. Following the execution of this Agreement, PAWC and Seller shall each take such any and all further actions as are necessary to invoke, commence and complete.An earnout provision makes the purchase price (typically, some part of it) payable in the future dependent on the buyer's financial performance. Earnout arrangements have important tax implications for both the buyer and seller. This article focuses on the buyer side of the equation. If the business to be purchased exists as a legal entity, will the buyer acquire the ownership interests in the entity (i.e. Section 2.05 of the APA contains the same terms relating to earnouts (or. This chart summarizes earn-out issues in private acquisition agreements.