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Stock Purchase Agreement Private Company
"I need a Stock Purchase Agreement Private Company for the acquisition of a Hong Kong technology startup, where 60% of shares will be purchased immediately and the remaining 40% will be subject to an earn-out based on 2025 performance targets."
1. Parties: Identification of the seller(s), purchaser(s), and the target company
2. Background: Context of the transaction, including current ownership structure and reason for sale
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. Purchase Price and Payment: Detailed terms of consideration, payment method, and timing
6. Conditions Precedent: Conditions that must be satisfied before completion of the sale
7. Pre-Completion Obligations: Parties' obligations between signing and completion
8. Completion: Process and requirements for closing the transaction
9. Warranties: Seller's representations and warranties about the shares and company
10. Limitations on Warranties: Limitations on seller's warranty liability
11. Confidentiality: Obligations regarding transaction and company information
12. Announcements: Requirements for public statements about the transaction
13. Costs: Allocation of transaction costs and expenses
14. Notices: Process for formal communications between parties
15. General Provisions: Standard boilerplate clauses including governing law and jurisdiction
1. Tag-Along Rights: Used when minority shareholders need protection to sell their shares alongside majority shareholders
2. Drag-Along Rights: Included when majority shareholders want the right to force minorities to join in a sale
3. Earn-out Provisions: Used when part of the purchase price is contingent on future performance
4. Non-Competition: Added when sellers need to be restricted from competing post-sale
5. Employee Matters: Included when the transaction affects key employees or employee shareholders
6. Tax Covenant: Used for complex transactions with specific tax implications
7. Transitional Services: Added when seller needs to provide ongoing services post-completion
8. Break Fee: Used in high-value transactions to protect parties if the deal fails
9. Anti-Dilution Rights: Included when protecting against future share issuances
10. Escrow Arrangements: Used when part of the purchase price needs to be held in escrow
1. Details of the Company: Company information including registration details, directors, and share capital
2. Details of the Sale Shares: Specific information about shares being transferred
3. Warranties: Detailed list of seller's warranties about the company and business
4. Properties: Details of company's real estate assets and leases
5. Intellectual Property: List of company's IP rights and registrations
6. Material Contracts: Summary of important business contracts
7. Employee Information: Details of key employees and employment terms
8. Completion Requirements: Detailed list of documents and actions required at completion
9. Form of Resignation Letters: Template resignation letters for departing directors
10. Form of Share Transfer Form: Template instrument of transfer for Hong Kong shares
Authors
Technology
Manufacturing
Professional Services
Real Estate
Retail
Healthcare
Financial Services
Education
Media and Entertainment
Construction
Logistics
Hospitality
Energy
Agricultural
Consumer Goods
Legal
Finance
Corporate Development
Mergers & Acquisitions
Compliance
Risk Management
Executive Leadership
Company Secretarial
Business Development
Investment
Chief Executive Officer
Chief Financial Officer
General Counsel
Corporate Lawyer
Investment Director
Mergers & Acquisitions Manager
Company Secretary
Legal Counsel
Finance Director
Business Development Director
Corporate Development Manager
Investment Banker
Due Diligence Officer
Compliance Manager
Risk Manager
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