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Equity Linked Agreement Generator for the USA

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Key Requirements PROMPT example:

Equity Linked Agreement

"I need an Equity Linked Agreement between Goldman Sachs and our pension fund, linking payments to the FTSE 100 index performance with a three-year term starting March 2025 and including specific provisions for market disruption events."

Document background
An Equity Linked Agreement is utilized when parties wish to create a financial arrangement where payments or obligations are tied to the performance of specific equity instruments. This document is essential in the English and Welsh jurisdiction for structuring equity-linked products, whether for investment purposes or financing arrangements. The agreement typically includes detailed provisions on calculation methods, market disruption events, and regulatory compliance requirements. It's particularly relevant in contexts where sophisticated financial products are being created or where parties seek to establish a clear framework for equity-linked obligations.
Suggested Sections

1. Parties: Identification and details of contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Equity Linking Provisions: Core terms defining the equity linking mechanism, including calculation methodologies and reference assets

5. Payment Terms: Payment obligations, mechanisms, and settlement procedures

6. Term and Termination: Duration of the agreement and circumstances for early termination

7. Representations and Warranties: Standard declarations by parties regarding capacity, authority, and compliance

8. Events of Default: Circumstances constituting default and consequent remedies

9. Governing Law and Jurisdiction: Laws governing the agreement and courts having jurisdiction

Optional Sections

1. Market Disruption: Provisions for handling market disruption events and their consequences

2. Tax Provisions: Specific tax treatment, obligations, and gross-up provisions if applicable

3. Regulatory Compliance: Specific regulatory obligations and compliance requirements

4. Transfer Restrictions: Limitations and conditions on transfer of rights and obligations

5. Break Costs: Provisions for early termination costs and calculations

Suggested Schedules

1. Calculation Schedule: Detailed methodology for calculations, including formulae and adjustments

2. Form of Notice: Standard forms for various notices required under the agreement

3. Reference Asset Details: Detailed specifications of the underlying equity instruments

4. Risk Factors: Comprehensive description of market, credit, and other relevant risks

5. Price Source Definitions: Specifications of price sources and fallback provisions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































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Industries

Financial Services and Markets Act 2000: Primary legislation that regulates financial services and markets in the UK, sets out requirements for authorized persons/firms, and establishes the regulatory framework

Companies Act 2006: Core legislation governing company shares, share capital, shareholder rights, and transfer of shares provisions

FCA Handbook: Regulatory framework including Conduct of Business Sourcebook (COBS), rules on financial promotions, and client categorization requirements

Market Abuse Regulation (MAR): Regulations covering insider dealing provisions, market manipulation rules, and disclosure requirements

PRIIPs Regulation: Regulation governing Packaged Retail and Insurance-based Investment Products, including Key Information Document requirements and risk disclosure obligations

Common Law Contract Principles: Fundamental contract law principles under English law, including Unfair Contract Terms Act 1977 and Consumer Rights Act 2015

Tax Legislation: Relevant tax laws including Income Tax Act 2007, Corporation Tax Act 2010, and stamp duty considerations

Anti-Money Laundering Regulations: Money Laundering Regulations 2017 and Proceeds of Crime Act 2002, governing AML requirements and procedures

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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