Combination Agreement Template for United States

A Combination Agreement is a comprehensive legal document governed by U.S. federal and state laws that outlines the terms and conditions for combining two or more business entities through merger, consolidation, or other forms of business combination. The agreement addresses crucial aspects including transaction structure, consideration, representations and warranties, conditions precedent, and post-closing obligations, while ensuring compliance with securities laws, antitrust regulations, and applicable state corporation laws.

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What is a Combination Agreement?

The Combination Agreement serves as the primary transaction document in business combinations under U.S. law, typically used when companies seek to merge operations, consolidate resources, or create a new combined entity. This agreement type is essential for both public and private company transactions, requiring careful consideration of federal securities laws, state corporation laws, and antitrust regulations. The document includes detailed provisions about transaction structure, consideration, representations and warranties, and closing conditions, while addressing regulatory compliance, shareholder approval requirements, and post-closing obligations.

What sections should be included in a Combination Agreement?

1. Parties: Identification of combining entities and their details

2. Background: Context and purpose of the combination

3. Definitions: Key terms used throughout the agreement

4. Transaction Structure: Details of how the combination will be executed

5. Consideration: Terms of payment or exchange

6. Conditions Precedent: Requirements that must be met before closing

7. Representations and Warranties: Statements of fact and assurances from each party

8. Covenants: Ongoing obligations of the parties

9. Closing Mechanics: Process and requirements for completing the transaction

What sections are optional to include in a Combination Agreement?

1. Employee Matters: Treatment of employees post-combination, including retention, benefits, and integration plans

2. Tax Matters: Specific tax treatment, allocations, and indemnities related to the combination

3. Transition Services: Post-closing service arrangements between the parties to ensure business continuity

What schedules should be included in a Combination Agreement?

1. Disclosure Schedules: Exceptions to representations and warranties made by each party

2. Form of Merger Certificate: Legal document to be filed with state authorities to effectuate the combination

3. Required Regulatory Approvals: List of necessary governmental and regulatory consents

4. Material Contracts: Schedule of key agreements affecting the combination

5. Employee Benefit Plans: Details of compensation and benefit arrangements to be maintained or modified

6. Real Property Schedule: Comprehensive list of owned and leased properties involved in the transaction

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

Jurisdiction

United States

Publisher

Genie AI

Document Type

Merger Agreement

Cost

Free to use

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