A nonprofit publication of the Kentucky Center for Public Service Journalism

Stock Share Purchase Agreement


A share purchase agreement (SPA), also known as a share purchase agreement, is a contract signed by both the company (or the shareholders of a company) and the purchasers of the stock. This agreement protects both the company and the buyers. The agreement itself defines the sale of shares in a company and what is acquired. Restricted share purchase contracts provide the company with the opportunity to better protect its assets. When stock options are offered to attract talented employees, this type of agreement provides an additional incentive for employee loyalty. With this agreement, a vesting schedule is linked to the transfer of ownership of shares. A standard vesting schedule can be four years, which means you don`t own the stock before running the vesting calendar. Use our share purchase agreement (SPA) to register the purchase of shares and protect buyers and sellers. A share purchase agreement also contains payment details, z.B if a down payment is required when the full payment is due, and the closing date of the agreement. Download this free share purchase model in word form to negotiate the purchase of shares in a company or organization 2. The seller agrees to sell and the buyer agrees to acquire all the rights, titles, interest and ownership of the seller on the shares at an overall purchase price of “O” (the “purchase price”).

The main difference with an asset purchase contract is that the buyer does not receive the seller`s debts. While the buyer receives, during a share purchase, all the bonds of the company in addition to its assets. Shares of a company are often sold to raise money or other agreed compensation. Small businesses and start-ups can also offer shares in the company as an employee benefit or the founders of the company may hold shares. The agreement itself sets the price per share and the amount of shares acquired. PandaTip: These statements are all guarantees of the seller: (a) means that the company was officially founded and exists; (b) means that there are no problems between the company and the state in which it was created and that all current requirements have been met; © means that there are no ongoing or ongoing disputes with the company; (d) means that the seller is the sole owner of the shares; (e) means that there are no legal restrictions on the shares and that the purchaser will own them at the end of the transfer without these restrictions; (f) means that the seller is allowed to sell the shares without agreement with another person or company; and (g) means that the seller has not entered into agreements with others granting other rights to the shares.


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