1. Pre-closing disputes in M&A Setting the scene Prof. Henry Peter Warsaw, 13-14 May 2010

2. 2 I. Main phases Phases Signing Pre-signing Pre-closing Time Line Post-signing Post-closing Post-signing and pre-closing Closin g Events

3. 3 II. Chronology (and logics) of the pre-closing phase Buyer’s due diligence (data room)(Audit) Letter of intent Purchase agreement (SPA) Confidentiality/ exclusivity agreement (s) Closing condition(s) (precedent) Time Line Facts Docs./ clauses Bidding process Information memorandum (Vendor’s due diligence) (Binding) offer ClosingSigning Negotiations

4. 4 A.Procedural  Applicable law  Jurisdiction  Valid arbitration clause ?  Interim relief: where and what ?  Merit: where and what ?  Specific performance  Pre-signing: order to sign ?  Post-signing / pre-closing: order to close ?  Order to disclose ? III. Possible disputes

5. 5 B.Merit  Letter of intent  Binding ?  Obligation to negotiate / act in good faith (culpa in contrahendo) ?  Obligation to inform ?  Type of damages  Benefit of the deal (“positive” interest in the performance of the contract)  Reliance damages (“negative” interest in the entering into the contract) III. Possible disputes

6. 6 Peterlegal SA Attorneys-at-Law and Notaries Public Via Canonica 5 - P.O. Box 6280 6901 Lugano Switzerland Tel. +41 91 910 19 00 - Fax +41 91 910 19 01 henry.peter@peterlegal.com www.peterlegal.com henry.peter@peterlegal.com www.peterlegal.com