A stock purchase agreement is a legal contract stating all the terms and conditions between two companies during buying or selling of stocks. Either any company or shareholders in an organization can sell stock to buyers. These agreements are managed by corporations that are involved in selling stocks. All the rules of the agreement are followed by buyers and sellers equally.
The template of the stock purchase agreement is mentioned below,
Stock Purchase Agreement Template
This agreement is drafted on the date (__/__/__) between the following companies after mutual understanding,
Name: Company XYZ Address: 24 Heaven Road, New York, USA. Contact: 739 839-8302
Name: Company ABC Address: 84 Main Boulevard, New York, USA. Contact: 829 839-3592
Terms and conditions of the agreement are mentioned below,
The agreement shall commence from date (__/__/__) and both companies are bound to follow it.
Buyer company will buy all the shares put forward by seller at an already negotiated price per share.
Process will be finalised in a meeting at the headquarters of buyer’s company on date (__/__/__).
For the meeting, delegations of both companies will sit before each other.
Buyer will be responsible for providing services to all the clients that sellers entertained.
This merger of stocks will not affect employees of seller.
All the stocks will be transferred in the name of buyer after the meeting.
Seller is responsible for paying transfer taxes of the stocks.
Seller company ensures the good standing position and worth of stocks.
Seller and buyers ensure to put all statements before delegations and deny the omission of any facts.
This agreement satisfies all the law of the state and should be taken seriously.
Agreement will be signed in the presence of two credible witnesses, provided by mutual understanding of both parties.
Half of the stock price will be paid after the meeting while rest will be paid after the contract is in process.
In case of selling stocks, buyer will first consider the previous owner and then move with other candidates
Buyers make sure to do everything in them to increase the worth of stocks.
Any issue or problems created after the signing of buying contract, will not be the responsibility of seller.
If buyer wants to end the agreement after paying half the price, they need to provide a valid reason with proof for doing so.
In case of agreement cancellation, seller will return the advance paid by the buyer.
If full payment of stock is transferred from buyer to seller than the agreement cannot be cancelled.
Buyer company is allowed to sell the stocks further after 2 years of buying.
Buyer cannot immediately sell stocks again because it will devalue the stocks.
Both parties will be subjected to serious consequences, if they fail to follow the rules