Signatory Stock Purchase Agreement Template Made Easy

Esign stock purchase agreement

stock purchase agreement everything you need to know a stock purchase agreement is the agreement that two parties signed when shares of a company are being bought or sold these agreements are often used by small corporations who sell stock either the company or shareholders in the organization can sell stock to buyers a stock purchase agreement is meant to protect you whether you're the purchaser or the seller a stock purchase agreement is separate from an asset purchase agreement stock purchase agreements merely sell shares of the company to raise money or transfer ownership of shares an asset purchase agreement finalizes the sale of the company's assets the stock purchase agreement lists several things name of company purchasers name par value of shares number of shares being sold when where transaction takes place representations and warranties made by purchaser and seller potential employee issues such as bonuses and benefits indemnification agreement / unforeseen costs before an agreement is finalized a letter of intent for LOI is created explaining the proposed sale a buyer should have due diligence and ensure the purchase agreement has the same terms as the LOI stock purchase agreements are important because they put the terms of a sale into writing this can prevent misunderstandings that may end up in the courtroom the agreement also allows the seller to show and explain that they are the owner of the stock being sold this gives the purchaser more faith in a transaction stock purchase agreements are meant to protect everyone involved because of this there are very few instances when you should consider not using one you are the only shareholder in the organization you're offering a limited capacity offering that qualifies for Regulation D exemption reasons to consider using stock purchase agreements creates a binding agreement that the sale will take place allows businesses to raise revenue for the organization the purchaser and seller have time to review agreement before anything is finalized explains the special tax treatments the signers may receive for the transfer