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Membership Interest Purchase Agreement
"I need a Membership Interest Purchase Agreement for acquiring a Canadian technology startup valued at $5M, with specific provisions for intellectual property protection and employee retention; closing expected by March 2025."
1. Parties: Identifies and provides full legal names and addresses of all parties to the agreement
2. Background: Provides context for the transaction, including description of the business entity and current ownership structure
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Purchase and Sale of Membership Interests: Details the specific membership interests being sold and purchased
5. Purchase Price: Specifies the purchase price, payment terms, and any adjustments
6. Closing: Sets forth the timing, location, and mechanics of closing the transaction
7. Representations and Warranties of Seller: Seller's statements about the business, membership interests, and other material facts
8. Representations and Warranties of Purchaser: Purchaser's statements about its authority and ability to complete the transaction
9. Covenants: Ongoing obligations of the parties before and after closing
10. Conditions to Closing: Prerequisites that must be satisfied before parties are obligated to close
11. Indemnification: Provisions for compensating parties for losses arising from breaches or other specified events
12. Termination: Circumstances under which the agreement may be terminated and the consequences
13. General Provisions: Standard legal provisions including governing law, notices, amendments, etc.
1. Purchase Price Adjustment: Detailed mechanisms for post-closing price adjustments based on working capital or other metrics
2. Tax Matters: Specific provisions dealing with tax elections, allocations, and indemnities
3. Employee Matters: Provisions dealing with employment agreements, benefits, and related issues
4. Non-Competition and Non-Solicitation: Restrictions on seller's future business activities
5. Earn-out Provisions: Structure for additional payments based on future performance
6. Environmental Matters: Specific provisions dealing with environmental liabilities and compliance
7. Intellectual Property: Special provisions dealing with IP transfers or licenses
8. Third Party Consents: Process for obtaining required third party approvals
9. Transition Services: Terms for post-closing services provided by seller
1. Schedule A - Membership Interests: Detailed description of membership interests being transferred
2. Schedule B - Purchase Price Allocation: Breakdown of purchase price allocation for tax purposes
3. Schedule C - Required Consents: List of required third-party consents and approvals
4. Schedule D - Disclosed Matters: Exceptions to representations and warranties
5. Schedule E - Material Contracts: List and copies of material contracts
6. Schedule F - Real Property: Details of owned and leased real property
7. Schedule G - Intellectual Property: List of IP assets and related agreements
8. Schedule H - Employee Matters: List of employees, benefits, and employment agreements
9. Appendix 1 - Closing Deliverables: Checklist of documents to be delivered at closing
10. Appendix 2 - Form of Transfer Documents: Forms of various transfer and assignment documents
Authors
Agreement
Applicable Law
Business Day
Closing
Closing Date
Company
Confidential Information
Consent
Control
Disclosure Schedules
Effective Date
Encumbrance
Financial Statements
Governmental Authority
GST/HST
Indemnified Party
Indemnifying Party
Intellectual Property
Knowledge
Liability
Loss
Material Adverse Effect
Material Contracts
Member
Membership Interest
Operating Agreement
Ordinary Course of Business
Parties
Permitted Encumbrances
Person
Purchase Price
Purchaser
Related Party
Representatives
Required Consents
Seller
Tax
Tax Returns
Third Party
Transaction
Transaction Documents
Transfer
Working Capital
Working Capital Target
Purchase Price
Payment Terms
Closing Conditions
Representations and Warranties
Covenants
Due Diligence
Confidentiality
Non-Competition
Non-Solicitation
Indemnification
Tax Matters
Employee Matters
Intellectual Property
Assignment
Force Majeure
Termination
Governing Law
Dispute Resolution
Notices
Amendment
Waiver
Severability
Entire Agreement
Further Assurances
Survival
Third Party Rights
Expenses
Time of Essence
Counterparts
Electronic Execution
Authority
Privacy
Regulatory Compliance
Environmental Matters
Material Contracts
Real Property
Insurance
Working Capital Adjustment
Earn-Out
Transition Services
Manufacturing
Technology
Professional Services
Real Estate
Healthcare
Retail
Financial Services
Energy
Transportation
Construction
Agriculture
Entertainment
Hospitality
Education
Mining
Legal
Finance
Corporate Development
Mergers & Acquisitions
Tax
Compliance
Risk Management
Executive Leadership
Business Development
Corporate Governance
Chief Executive Officer
Chief Financial Officer
General Counsel
Corporate Lawyer
Business Development Director
Mergers & Acquisitions Manager
Corporate Secretary
Finance Director
Tax Director
Due Diligence Manager
Compliance Officer
Risk Manager
Investment Banker
Private Equity Manager
Business Owner
Managing Partner
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