Forward Share Purchase Agreement Template for Australia

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Key Requirements PROMPT example:

Forward Share Purchase Agreement

"I need a Forward Share Purchase Agreement for the acquisition of 60% shareholding in an Australian technology company, with completion scheduled for March 2025, including staged payment terms and specific pre-completion technology development milestones."

Document background
The Forward Share Purchase Agreement is a sophisticated commercial contract used in Australian business transactions when parties wish to agree on the terms of a share purchase that will complete at a future date. This type of agreement is commonly used in corporate restructuring, strategic investments, and staged acquisitions, where there may be conditions that need to be satisfied before the share transfer can occur. The document includes comprehensive provisions covering purchase price, completion mechanisms, warranties, and pre-completion obligations, all structured within the Australian legal framework. It's particularly useful when parties need time to arrange financing, obtain regulatory approvals, or meet other conditions before completing the share transfer. The agreement provides certainty to both parties while managing risks during the period between signing and completion.
Suggested Sections

1. Parties: Identification of the seller and purchaser, including full legal names and registration details

2. Background: Context of the transaction, including description of the target shares and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Sale and Purchase: Core obligation to sell and purchase the shares at the future date

5. Purchase Price: Specification of the purchase price and any adjustment mechanisms

6. Deposit: Details of any deposit payment, timing, and holding arrangements

7. Conditions Precedent: Conditions that must be satisfied before completion obligations become binding

8. Pre-completion Obligations: Obligations of both parties between signing and completion, including conduct of business restrictions

9. Completion: Mechanics for completion, including timing, location, and actions required

10. Warranties and Representations: Standard warranties and representations from both parties

11. Confidentiality: Obligations regarding confidential information

12. Default and Termination: Consequences of default and circumstances allowing termination

13. Notices: Process for giving formal notices under the agreement

14. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, and entire agreement

Optional Sections

1. Security Arrangements: Required when the purchase price is to be paid in installments or there are other security requirements

2. Price Adjustment Mechanism: Include when the purchase price may be adjusted based on future performance or other metrics

3. Tag-Along Rights: Include when minority shareholders should have the right to join the sale

4. Drag-Along Rights: Include when majority shareholders need the right to force minority shareholders to join the sale

5. Interim Dividend Arrangements: Required when specific arrangements for dividends between signing and completion are needed

6. Anti-dilution Provisions: Include when protection against share dilution before completion is required

7. Break Fee: Include when there should be a fee payable if either party withdraws from the transaction

8. Tax Indemnities: Required when specific tax risks need to be allocated between the parties

Suggested Schedules

1. Schedule 1 - Share Details: Details of the shares being sold, including class, nominal value, and percentage of total issued share capital

2. Schedule 2 - Warranties: Detailed warranties given by the seller regarding the shares and the company

3. Schedule 3 - Completion Requirements: Detailed list of documents and actions required at completion

4. Schedule 4 - Permitted Activities: List of activities the company is permitted to undertake between signing and completion

5. Schedule 5 - Form of Transfer Deed: Pro forma share transfer deed to be used at completion

6. Appendix A - Company Information: Key information about the company whose shares are being sold

7. Appendix B - Calculation of Purchase Price: Detailed methodology for calculating the final purchase price, including any adjustments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Investment Banking

Private Equity

Corporate Finance

Legal Services

Professional Services

Manufacturing

Technology

Real Estate

Mining

Energy

Healthcare

Retail

Agriculture

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Investment

Treasury

Compliance

Risk Management

Corporate Secretariat

Executive Leadership

Board of Directors

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Investment Manager

Corporate Development Manager

M&A Director

Financial Controller

Company Secretary

Transaction Manager

Investment Banker

Private Equity Manager

Commercial Director

Risk Manager

Compliance Officer

Board Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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