Deed of contribution—private M&A—share purchase

Published by a ÀÏ˾»úÎçÒ¹¸£Àû Corporate expert
Precedents

Deed of contribution—private M&A—share purchase

Published by a ÀÏ˾»úÎçÒ¹¸£Àû Corporate expert

Precedents
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This Deed is made on [insert day and month] 20[insert year]

Parties

  1. 1

    The several persons whose names and addresses are set out in the Schedule (together the Sellers and each individually a Seller).

BACKGROUND

    1. (A)

      The Sellers have entered into, or will soon enter into, the share purchase agreement with the Buyer regarding their sale of [the entire issued share capital of OR [insert number] [ordinary OR [insert class]] shares in] the Company. [The parties have also entered into or will soon enter into the Tax Covenant.]

    1. (B)

      The Sellers have agreed to regulate the manner in which Claims are dealt with under the Share Purchase Agreement [and the Tax Covenant] and to allocate their respective liabilities arising from any Claim in accordance with the terms of this Deed.

The parties agree:

    1. 1

      Definitions and interpretation

      1. 1.1

        In this Agreement, unless the context otherwise requires:

        Agreed Proportion

        1. •

          means as regards each Seller, the percentage set out opposite his respective name in the the Schedule and the expression Agreed Proportions shall be construed accordingly;

        Claim

        1. •

          means any claim:

          1. (a)

            [for breach or alleged breach of the Share Purchase Agreement;]

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Jurisdiction(s):
United Kingdom
Key definition:
Share purchase definition
What does Share purchase mean?

Under a share purchase, the buyer takes over ownership of the target company (ie where it acquires its entire share capital) carrying on the business, which comes with all of its assets, obligations and liabilities (whether or not the buyer was aware of them).

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