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The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

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19-04 DUE DILIGENCE HANDBOOK
Perquisites And Reimbursement For Relocation - Form 19-11 (Continued)
The bottom part of the form applies to the relocation of existing company personnel due to reassignment, pro-
motion and/or facility relocation. It can also apply to the relocation of newly hired employees that are mov-
ing from the location of their previous employment.
Employment Contracts - Form 19-12
The use of, and rationale for, management contracts varies widely. The type of items that are incorporated in
these agreements can also vary significantly.
Due to the specialized nature of these agreements it is appropriate to have an attorney, highly qualified in this
field of law, review each contract.
Organized Labor
Agreements - Form 19-13
If the entity has contracts with organized labor groups, Form 19-13 can be used to summarize the key features
of these agreements.
A separate form will be required for each contract
The use of this form should not preclude a paragraph by paragraph review of each contract by an experienced
labor attorney.
WHAT TO LOOK FOR
If the entity utilizes management contracts, what are the primary reasons:
To attract new management personnel?
To retain key management personnel?
To reduce potential exposure to the loss of trade secrets?
Other (Specify: _________________________________________________________
Do the contracts provide a reasonable balance between the entity’s objectives and those of
the individual?
Does the documentation clearly set out the conditions under which each of the parties can
cancel the contract?
WHAT TO LOOK FOR
Is the entity’s relocation policy generally in line with that of its major competitors, or is it more
or less attractive?
Has this represented a significant expense during the last five years? If so, what were the
circumstances?
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