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Business Acquisition Agreement
1. Parties: Identification of the buyer and seller, including full legal names, registration numbers, and registered addresses
2. Background: Context of the transaction, including brief description of the target business and purpose of the agreement
3. Definitions: Defined terms used throughout the agreement, ensuring consistent interpretation
4. Sale and Purchase: Core transaction terms, including what is being sold (shares/assets) and the basic agreement to sell and purchase
5. Purchase Price: Detailed description of the consideration, including amount, payment terms, and any price adjustment mechanisms
6. Conditions Precedent: Conditions that must be satisfied before completion of the transaction
7. Pre-Completion Obligations: Obligations of both parties between signing and completion, including conduct of business requirements
8. Completion: Mechanics of closing the transaction, including timing, location, and actions required
9. Warranties: Seller's representations and warranties about the business, assets, and liabilities
10. Limitations on Seller's Liability: Limitations on warranty claims and other liability, including caps, thresholds, and time limits
11. Tax Covenants: Specific provisions relating to tax matters and allocation of tax liabilities
12. Confidentiality: Obligations regarding confidential information and announcements
13. Non-Competition and Non-Solicitation: Restrictions on seller's competitive activities post-completion
14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, and jurisdiction
1. Earn-out Provisions: Include when part of the purchase price is contingent on future performance
2. Employee Matters: Include when specific arrangements for key employees or general workforce transfer need to be addressed
3. Intellectual Property Rights: Include when IP assets are a significant part of the transaction
4. Real Estate: Include when the business owns or leases significant real estate assets
5. Environmental Matters: Include when the business has significant environmental risks or compliance obligations
6. Pensions: Include when dealing with transfer of pension schemes or obligations
7. Transitional Services: Include when seller will provide services to the business post-completion
8. Break Fee: Include when parties agree to compensation if the deal fails under specific circumstances
1. Target Company Details: Complete corporate information about the target company
2. Properties: List and details of all owned and leased properties
3. Intellectual Property: Schedule of all IP rights owned or licensed by the business
4. Material Contracts: List and copies of key business contracts
5. Employees: Details of all employees including key terms of employment
6. Warranty Schedule: Detailed warranties and any disclosed exceptions
7. Completion Requirements: Detailed list of documents and actions required at completion
8. Purchase Price Adjustment Mechanics: Detailed procedures for any post-completion price adjustments
9. Permitted Leakage: In case of locked box mechanism, list of permitted value extractions
10. Data Room Index: Index of due diligence materials provided
11. Third Party Consents: List of required third party consents and regulatory approvals
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