When it comes to shares contract agreements, it is essential to have a carefully crafted document that clearly outlines the terms and conditions of the agreement. The agreement should cover all areas of the share purchase, including the number of shares being sold, the price per share, and any future rights or obligations that may arise.
To give you an idea of what a shares contract agreement might look like, we have compiled a sample agreement below. Please note that every agreement will be unique and tailored to the specific needs of the parties involved.
Sample Shares Contract Agreement
This Shares Contract Agreement (the "Agreement") is made and entered into on the ____ day of ____, 20__, by and between _________________ (the "Seller") and __________________ (the "Buyer").
WHEREAS, the Seller is the legal and beneficial owner of a certain number of shares (the "Shares") in ________________________ (the "Company"), which the Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller, upon the terms and conditions set forth below.
NOW, THEREFORE, the parties agree as follows:
1. Purchase Price
The Buyer agrees to purchase the Shares from the Seller for the purchase price of $____ per share, for a total purchase price of $______.
The closing of the purchase and sale of the Shares shall take place at the offices of the Company or such other place as may be mutually agreed upon by the parties.
3. Representations and Warranties of the Seller
The Seller represents and warrants to the Buyer as follows:
(a) The Seller is the legal and beneficial owner of the Shares, free and clear of all liens, encumbrances, and claims of any nature whatsoever.
(b) The Seller has the full power and authority to sell the Shares and to enter into this Agreement.
(c) The Shares are duly authorized, validly issued, and fully paid and non-assessable.
4. Representations and Warranties of the Buyer
The Buyer represents and warrants to the Seller as follows:
(a) The Buyer has the full power and authority to enter into this Agreement.
(b) The Buyer is purchasing the Shares for investment purposes only and not with a view to distribution.
(c) The Buyer has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of investing in the Shares.
Each party shall indemnify and hold harmless the other party and its officers, directors, agents, and employees from and against any and all claims, damages, expenses, or liabilities (including reasonable attorneys` fees) arising out of any breach of this Agreement by such party.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of _________________.
7. Entire Agreement
This Agreement contains the entire agreement and understanding between the parties and supersedes all prior negotiations, understandings, and agreements between them relating to the subject matter hereof.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
In conclusion, a shares contract agreement is a legally binding document that outlines the terms and conditions of a share purchase. It is essential to have a well-crafted agreement to ensure that all parties understand their rights and obligations. Remember, each agreement will be unique and should be tailored to the specific needs of the parties involved.