Model Stock Purchase Agreement With Commentary Second Edition

8 (a) (b) (c) (c) at closing, the buyer would pay in cash to the sellers; At the time of closing, the purchaser would file with a trust holder acceptable to both parties, who would be held in trust for at least one period of at least one year, to ensure the performance of the sellers` obligations arising from the final agreement; and at closing, the buyer would execute an unsecured and non-negotiable debt certificate and deliver it to each seller. The purchaser`s notes to be delivered to the sellers would be of a total amount of capital borne by interest of % per annum, due on the anniversary of the closing and providing for identical [annual] [quarterly] capital payments, as well as [annual] [quarterly] interest payments accrued. The purchase price assumes that at the time of the financial statements, the acquired companies consolidated equity of at least 1 00%. The purchase price would be adjusted on a dollar basis based on changes in the consolidated equity of companies acquired in the financial statements. If the buyer expects to require a trust or other withholding of part of the proposed purchase price, it may be important to include a corresponding provision. At the letter of intent stage, the purchaser is generally not in a position to determine or defend a certain amount to be taken care of. The buyer will be in a better position to do so after due diligence. Although the amount of the trust or holdback has not yet been determined, a declaration that one of them is required will inform the sellers and facilitate the subsequent negotiation of this issue. The vendors` agreement on a treuhandback or holdback is difficult if the issue has not been addressed prior to the signing of a Memorandum of Understanding and if the diligence does not indicate compelling new reasons.

The buyer can also describe known areas of potential liability, such as environmental rehabilitation and ongoing litigation that affects the purchase price. By warning at an early stage that these debts affect the purchase price, the amount of the trust or other amounts withheld, the buyer`s position in negotiating these issues in the final agreement should be strengthened. There are a variety of purchase price adjustment mechanisms that can be included in a particular transaction. The adjustment of the purchase price may include. B restrictions in the form of caps, collars and floors. The parties may wish the Mous understanding to include detailed provisions decrying the timing, method and process for calculating the adjustment of purchase prices, when these details are generally the subject of difficult negotiations that may be more appropriate to negotiate the final agreement.