PPS: Def­i­n­i­tions and inter­pre­ta­tions This arti­cle main­ly describes def­i­n­i­tions. These def­i­n­i­tions are par­tic­u­lar­ly impor­tant com­pared to the oth­er arti­cles of the BSM SPA. Indeed, they deter­mine (par­tial­ly) the scope and there­fore the con­tent of cer­tain arti­cles. The broad­er a def­i­n­i­tion, the more this def­i­n­i­tion has influ­ence on the con­tent of an article/subject of the share pur­chase agree­ment. Share pur­chase con­tract: guar­an­tee This arti­cle of the SPA deals with the pos­si­ble pro­vi­sion of a guar­an­tee by the buy­er (e.B. in the con­text of a sub­or­di­nat­ed loan from the sell­er to the buy­er). Or by the sell­er (e.B. in the con­text of war­ranties or indem­ni­fi­ca­tions). In anoth­er exam­ple, an SPA is often required in a trans­ac­tion where one com­pa­ny acquires anoth­er. The SPA is usu­al­ly the last ele­ment of nego­ti­a­tion on the sale and pur­chase of a busi­ness. Share pur­chase agree­ment: Secu­ri­ty Dit artikel van de SPA behan­delt het eventueel ves­ti­gen van zek­er­he­den door kop­er (bijvoor­beeld in het kad­er van een achtergestelde lening door verkop­er aan koper).

Of juist door verkop­er (bijvoor­beeld in het kad­er van garanties of vri­jwarin­gen). The con­tract usu­al­ly estab­lish­es a min­i­mum lev­el of lia­bil­i­ty that can be dis­cussed as the seller‘s lia­bil­i­ty, so the par­ties exclude the pos­si­bil­i­ty of minor prob­lems. For each trans­ac­tion, depend­ing on the size, the amount is the amount in which the par­ties feel com­fort­able struc­tur­ing the agree­ment. Share pur­chase agree­ment: Due dili­gence inves­ti­ga­tion This arti­cle of the SPA deals with due dili­gence (= account­ing review) as it is car­ried out by the buy­er. And how the par­ties deal with it (mean­ing and con­se­quences). Impor­tant and work for expe­ri­enced trans­ac­tion lawyers. Share sale agree­ment: Pre-Com­petion Covenants This arti­cle of the share pur­chase agree­ment men­tions all kinds of behav­iors or pro­hi­bi­tions between the sign­ing of the SPA and the con­clu­sion and that the sell­er must respect to keep the activ­i­ty intact. Also the MAC (Mate­r­i­al Adverse Change Clause) deter­mi­na­tion. A sales con­tract (SPA) is a legal­ly bind­ing con­tract between two par­ties that has entered into a trans­ac­tion between a buy­er and a seller.

SPAs are typ­i­cal­ly used for real estate trans­ac­tions, but are found in all indus­tries. The agree­ment con­cludes the terms of the sale and is the cul­mi­na­tion of nego­ti­a­tions between the buy­er and sell­er. If all par­ties are Dutch and/or Speak Dutch, I rec­om­mend opt­ing for a Dutch-speak­ing (sale) con­tract for shares and not for a SPA. Share Pur­chase Agree­ment: Pre-Com­pe­ti­tion Claus­es This arti­cle of the Share Pur­chase Agree­ment men­tions all types of con­duct or pro­hi­bi­tions that exist between the sign­ing of the SPA and the clos­ing and that the Sell­er must com­ply with in order to keep the busi­ness intact. Also called MAC (Mate­r­i­al Adverse Change Clause) determination..…