Shares Purchase Agreement

The document gives both parties the opportunity to protect their interests from the transfer of shares. As a complete document, it covers all aspects of the transaction. Both parties must review each of the clauses mentioned in the document and understand its meaning. The United Kingdom left the European Union on 1 January 2020 and EU legislation will apply until the end of a transitional period on 31 December 2020. The UK government has always suggested that it would not seek to extend the transition period. Recent statements by the Prime Minister and other senior cabinet officials indicate that the UK government may not be able to conclude a trade deal with the EU before the end of the transition period. It should never be forgotten that the main purpose of the guarantee is to impose legal liability on the seller and to remedy the buyer`s situation when statements about the target company turn out to be false. Companies that offer several types of shares sometimes also have a series (Class A, Class B, Class C, etc.) that may be worth different amounts of money. For example, 100 Class A common shares may not be of the same value as 100 Class B shares. The conclusion of a transaction of AM generally makes a successful SD investigation and the underlying provision of complete and accurate documents a critical condition at the conclusion of the transaction. The conclusion of a robust SD survey cannot be sufficiently emphasized in most R and D. Target companies generally have a heavy burden to make all the materials requested in this regard available to an investor. Even a seemingly simple ATM, with a small business with limited assets and operations, can be accompanied by large hidden debts.

In the past, data rooms were the norm and were located on the premises of the target company or its lawyers, where all categories of requested documents would be filed for consultation. Today, data spaces are generally digital and law firms and other third parties offer internal platforms based on the server or cloud, on which all DD documents are downloaded as much as possible by the seller and his advisors for sorting and inspection by a buyer and his professional advisors (usually lawyers and accountants). Access to this information is generally subject to strict confidentiality obligations and it should therefore be made clear who has access to this information in order to avoid any possible violation of these restrictions. The shareholders` pact is concluded primarily to resolve problems and disputes between shareholders and the company. We cannot always be sure that nothing goes wrong, and in such circumstances, where nothing is certain, such agreements will help us resolve problems and disputes if this happens and maintain a strong relationship between shareholders and the company. It also contributes to the protection of a shareholder`s investment and establishes the rules and rules applicable to shareholders and other parties related to the company. 7.1. The seller insures and guarantees the terms of the guarantees and acknowledges that the agreement has entered into this agreement (and has expressly agreed to acquire the shares in accordance with item 2.1) and has justified the purchase price on the basis of the various insurances and assurances concerning the group`s companies and their activities in this agreement.

As a general rule, sellers want definitions of confidential information to be formulated as broadly as possible to protect proprietary information.

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