Stock Purchase Agreement California Example

The manner in which the seller should expect payment should be indicated in “IV. Deadline”. This information can be easily transmitted via a series of checkboxes. You can view one or more of the lists provided in this section, as long as it defines how payment for inventory will be received. So when the money arrives in the form of a “bank transfer”, check the first box. If the stock is paid in “cash”, check the second box. The third box must be checked when the buyer submits a check to pay for the actions defined above. Check the fourth box to indicate that the buyer will use “PayPal” for this transaction. In the event that none of the above methods can be applied to any part or all of the buyer`s payment method, check the “Other” box. This should define a direct report on how the buyer will make payment for the inventory in question. In the following example, the seller has organized a money order, so that “money order” is listed in the available area with the corresponding transaction number. FOR THE VALUE RECEIVED and in accordance with this Special Agreement for the Purchase of Founder`s Shares between the undersigned (“Founder”) and [Company Name], a California corporation (the “Company”), dated __ (the “Agreement”), the Founder hereby transfers common shares of the Company into the company`s books on behalf of the Founder and represented by Certificate No. ___ and hereby irrevocably establishes and names _____ THE ASSIGNMENT MAY NOT BE USED.

ONLY TO THE EXTENT PERMITTED BY THE CONTRACT AND THE DOCUMENTS. Stocks are heavily regulated by federal and local governments. It is important that the share purchase agreement complies with all regulations and laws that apply to the sale of shares. If any part of the agreement violates state or federal laws, the agreement may become invalid. It is also important that all sections are factual. If the presentation of the value of the business or share is considered false or fraudulent, this would also invalidate the agreement. 16.2. Entire Agreement. This Agreement sets forth the entire agreement between the parties with respect to the purchase of common shares by the Founder and summarizes all prior discussions between them. Without a written contract, the terms of sale and ownership would not be governed by a legally binding agreement. This could put you at risk of shares in your company being bought by foreigners. It could also expose you to litigation because there is no fixed resolution clause.

☐ The seller has the approval of ________ 3.4. Binding restrictions on assignees. All purchasers of or interests in such shares will receive and hold such shares or shares subject to the terms of this Agreement, including, where applicable, the repurchase option. In the event of a purchase by the Company under this Agreement, in which the shares or shares are held by a Purchaser, the Purchaser shall be obliged, at the Request of the Company, to transfer the shares or interest to the Founder in exchange for consideration for the amount to be paid by the Company under this Agreement. In the event that the repurchase option is deemed to have been exercised by the Company in accordance with Article 3 (a) (ii) of this Agreement, the Company may assume that each Purchaser has transferred the shares or shares to the Founder prior to the Purchase by the Company, and the Payment by the Company of the Purchase Price to such Purchaser shall be deemed to be the performance of the Founder`s obligation to: to pay the purchaser on such shares or interest as well as the obligation to pay the founder for such shares or interest. Any sale or transfer of the Shares will be void unless the terms of this Agreement are met. 16.4. Successors and Assigns. The Company`s rights and benefits under this Agreement are transferable to one or more natural or legal persons, and all agreements and understandings under this Agreement shall benefit from and be enforced by the Company`s successors and assigns. The Founder`s rights and obligations under this Agreement may only be assigned with the prior written consent of the Company, and any alleged transfer will otherwise be null and void. 9. Remote agreement on the market.

Instructions: Please do not fill in any gaps other than the signature line. The purpose of this assignment is to allow the Company to exercise its redemption option set out in the Agreement without the need for additional signatures from the Founder. The opening of this Agreement shall specify the date on which these documents are to be applied to the Participating Parties, which shall be made available in terms of content. In the article ” I. The parties” enter the month and calendar day in the declaration submitted between the word “From” and the number “20”, and then fill in this information with the two-digit year corresponding to the next line. 6.1. Mergers and Other Events. The adjustment by the Board of Directors is final, binding and extraordinary. Under this provision, which results from such an adjustment, no fractional shares will be issued, but the board of directors may, in its sole discretion, make a cash payment in lieu of fractional shares. In the event of a merger or consolidation of the Company with or into another entity as a result of which the common shares are converted into law or exchanged for the right to receive money, securities or other property, or an exchange of the common shares for money, securities or other property in connection with a share exchange transaction, the transfer restrictions and other provisions of this Agreement shall apply to the successor in title of the Company and shall apply to cash, securities or other assets into which the acquired shares have been converted or against which the acquired shares have been converted or exchanged in accordance with that transaction, in the same manner and to the extent that they applied to the shares acquired under this Agreement. A share purchase agreement exists between a buyer who wishes to buy shares of a company from a seller at a fixed price. The agreement includes the number (#) of shares, the price ($) per share and the date of sale.

All other terms must be negotiated between the parties and after signing, the exchange of funds for shares usually takes place as soon as possible. The third element of this Agreement, “Purchase Price”, expects the expected amount of money for all shares sold. This requires multiplying the “number of shares” listed above by the documented “price ($) per share”. Once this task is complete, write the resulting number in the blank line before the word “dollars” and specify it numerically in the line in parentheses. It is worth mentioning that the amount you set here is expected by the buyer on the closing date of this contract. The next part of this agreement that needs to be discussed is “XI. Applicable law”. The blank line in this article requires the state whose laws apply to this transaction and the conduct of both parties involved.

There is no scenario in which the sale of shares would be desirable without this agreement. You will need a share purchase agreement if you want to sell shares of your company. The next section of this document, titled “Description of Actions,” contains several details for its completion. .