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Sale Of Shares In Private Company Agreement
"I need a Sale Of Shares In Private Company Agreement for the acquisition of a Dutch tech startup, where 60% of the purchase price will be paid at completion in March 2025 and 40% will be subject to an earn-out based on revenue targets over the next two years."
1. Parties: Identification of the Seller(s), Purchaser(s) and the Company
2. Background: Context of the transaction and current ownership structure
3. Definitions and Interpretation: Defined terms and rules of interpretation for the agreement
4. Sale and Purchase: Core transaction terms including shares being sold and purchase price
5. Conditions Precedent: Conditions that must be satisfied before completion can occur
6. Pre-Completion Obligations: Parties' obligations between signing and completion, including conduct of business requirements
7. Completion: Mechanics of completion, including timing, location, and actions required
8. Warranties: Seller's warranties regarding the shares, company, and business
9. Limitations on Liability: Limitations on warranty claims and general liability caps
10. Tax Covenants: Tax-related warranties and indemnities
11. Confidentiality: Obligations regarding transaction confidentiality and announcements
12. Notices: Process and requirements for formal notices under the agreement
13. General Provisions: Standard boilerplate provisions including governing law and jurisdiction
1. Deferred Consideration: Required if part of the purchase price is to be paid later or is contingent on future events
2. Employee Matters: Include if there are specific arrangements regarding key employees or management
3. Non-Competition: Include if sellers are to be restricted from competing post-completion
4. Security for Claims: Include if any security (e.g., escrow) is required for warranty claims
5. Intellectual Property: Required if IP assets are material to the transaction
6. Real Estate: Include if company owns significant real estate assets
7. Bank Financing: Required if purchase is partially funded through bank financing
8. Works Council Provisions: Include if works council approval or consultation is required
9. Earn-out Provisions: Include if purchase price includes performance-based payments
1. Details of the Company: Corporate information, share capital structure, and subsidiaries
2. Warranties: Detailed warranties regarding the company and its business
3. Properties: Details of owned and leased real estate
4. Intellectual Property Rights: List of IP rights owned or licensed by the company
5. Material Contracts: Summary of key commercial contracts
6. Employee Information: Details of employees, benefits, and pension arrangements
7. Completion Requirements: Detailed list of completion deliverables
8. Data Room Index: Index of due diligence materials provided
9. Disclosed Information: Information disclosed against the warranties
10. Form of Resignation Letters: Template resignation letters for outgoing directors
11. Form of Powers of Attorney: Template powers of attorney for completion actions
12. Tax Deed: Detailed tax indemnity provisions and mechanisms
Authors
Technology
Manufacturing
Professional Services
Retail
Healthcare
Real Estate
Financial Services
Energy
Construction
Agriculture
Media & Entertainment
Logistics & Transportation
Food & Beverage
Pharmaceuticals
Legal
Finance
Corporate Development
Mergers & Acquisitions
Due Diligence
Risk Management
Corporate Finance
Strategy
Tax
Compliance
Business Development
Chief Executive Officer
Chief Financial Officer
General Counsel
Corporate Development Director
M&A Director
Legal Counsel
Finance Director
Business Development Manager
Investment Manager
Company Secretary
Transaction Manager
Due Diligence Manager
Integration Manager
Risk Manager
Corporate Finance Manager
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