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Sale Of Shares In Private Company Agreement
"I need a Sale Of Shares In Private Company Agreement for selling 100% of my technology company's shares to a single corporate buyer, with completion scheduled for March 15, 2025, including standard warranties and a 2-year non-compete clause."
1. Parties: Identifies and provides full details of the seller(s) and purchaser(s)
2. Background: Provides context about the company, the shares being sold, and the purpose of the transaction
3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules
4. Sale and Purchase: Core agreement to sell and purchase the shares, including the number and class of shares
5. Purchase Price: Specifies the consideration and payment terms, including any adjustments or earn-out mechanisms
6. Conditions Precedent: Lists any conditions that must be satisfied before completion can occur
7. Pre-completion Obligations: Specifies what parties must do or not do between signing and completion
8. Completion: Details of when, where and how completion will occur, including completion deliverables
9. Warranties: Seller's warranties about the company, shares, and business
10. Limitations on Claims: Limits on warranty claims including time limits and financial thresholds
11. Confidentiality: Obligations regarding confidential information and announcements
12. Tax Indemnities: Specific indemnities relating to tax liabilities
13. Restrictive Covenants: Non-compete and non-solicitation provisions
14. General Provisions: Standard boilerplate clauses including notices, costs, and governing law
1. Purchase Price Adjustment: Used when the price may be adjusted based on completion accounts or other metrics
2. Earn-out Provisions: Include when part of the purchase price is contingent on future performance
3. Security for Claims: Required when there's an escrow or bank guarantee for warranty claims
4. Employee Provisions: Include when there are specific arrangements for key employees
5. Intellectual Property: Detailed provisions when IP is a crucial asset of the business
6. Real Property: Specific provisions when the company owns significant real estate
7. Third Party Consents: Include when key contracts or licenses require consent for change of control
8. Break Fee: Used in larger transactions where abort costs need to be covered
9. Guarantee: Include when parent company or personal guarantees are required
1. Schedule 1 - Company Details: Details of the company including corporate information and share capital structure
2. Schedule 2 - Warranties: Comprehensive list of warranties given by the seller
3. Schedule 3 - Properties: Details of any real property owned or leased by the company
4. Schedule 4 - Intellectual Property: List of IP rights owned or used by the company
5. Schedule 5 - Material Contracts: List and details of key commercial contracts
6. Schedule 6 - Employees: Details of employees including key terms of employment
7. Schedule 7 - Completion Obligations: Detailed list of actions and deliverables required at completion
8. Schedule 8 - Permitted Encumbrances: List of permitted security interests or encumbrances
9. Appendix 1 - Form of Share Transfer: Pro forma share transfer form
10. Appendix 2 - Board Resolutions: Pro forma board resolutions approving the transfer
Authors
Financial Services
Technology
Manufacturing
Professional Services
Retail
Healthcare
Real Estate
Construction
Mining
Agriculture
Transport and Logistics
Media and Communications
Education
Hospitality
Energy and Resources
Legal
Finance
Corporate Development
Mergers & Acquisitions
Executive Management
Risk and Compliance
Corporate Secretariat
Business Development
Investment
Treasury
Chief Executive Officer
Chief Financial Officer
Company Secretary
Corporate Lawyer
Legal Counsel
Managing Director
Business Development Manager
Investment Manager
Finance Director
Commercial Director
Mergers & Acquisitions Manager
Corporate Development Manager
Risk Manager
Compliance Officer
Board Director
Company Director
Transaction Manager
Private Equity Manager
Business Owner
Venture Capital Manager
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