Security Purchase Agreement for Ireland

Security Purchase Agreement Template for Ireland

A Security Purchase Agreement under Irish law is a legally binding contract that governs the sale and transfer of securities between parties. This comprehensive document outlines the terms and conditions of the securities transaction, including purchase price, warranties, representations, and closing conditions. It incorporates requirements from Irish company law, EU regulations, and financial services legislation, ensuring compliance with both domestic and European legal frameworks. The agreement typically includes detailed provisions for due diligence, regulatory compliance, and risk allocation between the parties involved in the transaction.

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What is a Security Purchase Agreement?

The Security Purchase Agreement is a crucial document used in Irish corporate and financial transactions for facilitating the transfer of securities between parties. It serves as the primary transaction document in various scenarios, including private company share sales, investment rounds, and corporate restructurings. The agreement must comply with Irish Companies Act 2014, relevant EU regulations, and financial services legislation. A Security Purchase Agreement typically includes detailed provisions covering purchase price, payment terms, warranties, conditions precedent, completion mechanics, and post-completion obligations. It's particularly important in Ireland's financial services sector, where many international companies structure their transactions through Irish entities due to the country's favorable business environment and established legal framework. The document needs to be carefully drafted to ensure it meets both Irish legal requirements and any applicable EU regulations, particularly regarding securities trading and financial services.

What sections should be included in a Security Purchase Agreement?

1. Parties: Identification of the seller(s) and purchaser(s) of the securities, including full legal names and addresses

2. Background: Context of the transaction, including brief description of the company whose securities are being sold and the purpose of the transaction

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including the securities being sold, purchase price, and payment mechanics

5. Completion: Details of when and where completion will take place and what will happen at completion

6. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

7. Seller's Warranties: Warranties regarding the seller's ownership of securities, authority to sell, and status of the securities

8. Company Warranties: Warranties about the company's business, financial position, and compliance with laws

9. Purchaser's Warranties: Warranties from the purchaser regarding authority to purchase and financial capacity

10. Pre-Completion Obligations: Obligations of parties between signing and completion

11. Confidentiality: Provisions regarding confidential information and announcements

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

13. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Security Purchase Agreement?

1. Tag-Along Rights: Include when minority shareholders need protection to sell their shares alongside majority shareholders

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

3. Non-Compete Provisions: Include when sellers need to be restricted from competing post-sale

4. Board Composition: Include when the purchase involves changes to board structure

5. Earn-Out Provisions: Include when part of the purchase price is contingent on future performance

6. Tax Covenants: Include when specific tax indemnities or arrangements are required

7. Regulatory Compliance: Include when the transaction requires specific regulatory approvals

8. Employee Matters: Include when the transaction affects employee rights or benefits

What schedules should be included in a Security Purchase Agreement?

1. Details of Securities: Detailed description of the securities being sold including class, number, and nominal value

2. Completion Obligations: Detailed list of documents and actions required at completion

3. Warranties: Full set of warranties and any specific limitations

4. Company Information: Details of the company including corporate structure and subsidiaries

5. Intellectual Property: Schedule of company's IP rights and registrations

6. Material Contracts: List and details of company's material contracts

7. Properties: Details of company's real estate and leases

8. Disclosed Matters: Information disclosed against the warranties

9. Form of Resignation Letters: Template resignation letters for departing directors

10. Form of Stock Transfer Form: Template form for transferring the securities

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

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Investment Banking

Private Equity

Venture Capital

Corporate Services

Professional Services

Technology

Real Estate

Manufacturing

Healthcare

Energy

Telecommunications

Infrastructure

Retail

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Compliance

Risk Management

Treasury

Investment

Corporate Secretariat

Board of Directors

Mergers & Acquisitions

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Investment Manager

Corporate Secretary

Finance Director

Compliance Officer

Investment Banker

Private Equity Manager

Venture Capital Manager

Risk Manager

Corporate Development Director

M&A Director

Treasury Manager

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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