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Conditional Share Purchase Agreement for the United Kingdom

Conditional Share Purchase Agreement Template for England and Wales

A Conditional Share Purchase Agreement is a legally binding contract under English and Welsh law that sets out the terms and conditions for the sale and purchase of shares in a company, subject to certain conditions being met before completion. The agreement details the purchase price, conditions precedent, warranties, representations, and completion mechanics, while providing protection for both buyer and seller through various contractual provisions. It is commonly used in corporate transactions where certain requirements must be satisfied before the share transfer can be completed.

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What is a Conditional Share Purchase Agreement?

A Conditional Share Purchase Agreement is a fundamental document in corporate transactions under English and Welsh law, used when parties wish to agree to the sale and purchase of shares subject to specific conditions being fulfilled. These conditions typically include regulatory approvals, third-party consents, or specific performance targets. The agreement provides comprehensive protection for both parties by clearly defining the conditions precedent, purchase price mechanics, warranties, and completion requirements. It is particularly useful in complex transactions where immediate completion is not possible or desirable due to external factors or specific requirements that must first be satisfied.

What sections should be included in a Conditional Share Purchase Agreement?

1. Parties: Identification and details of the buyer and seller

2. Background: Context of the transaction and company information

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including price and shares being sold

5. Conditions Precedent: Conditions that must be satisfied before completion

6. Completion: Mechanics and timing of completion

7. Warranties: Standard warranties given by seller

8. Confidentiality: Obligations regarding transaction confidentiality

9. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a Conditional Share Purchase Agreement?

1. Tax Covenant: Additional section containing tax-related warranties and indemnities, used when specific tax protections are required

2. Non-competition: Section containing restrictions on seller's future activities, used when protecting goodwill of business being acquired

3. Employee Provisions: Specific terms relating to employees, used when transfer includes significant employee considerations

What schedules should be included in a Conditional Share Purchase Agreement?

1. Details of the Company: Corporate information including share capital structure

2. Conditions Precedent: Detailed list of conditions to be satisfied

3. Warranties: Detailed warranties given by seller

4. Properties: Details of company properties if relevant

5. Intellectual Property: Schedule of IP rights if significant to transaction

6. Completion Requirements: Detailed completion obligations and deliverables

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Sector

Personal

Cost

Free to use

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