Put Agreement
What is this form?
The Put Agreement is a corporate legal document that allows a purchaser to sell back shares of stock to the issuing company under specified conditions. It serves as an important tool for investors, granting them security by ensuring they can divest their shares at a predetermined price. This form is specifically designed to structure the terms under which the option to sell, known as the "Put," may be exercised, differentiating it from other stock-related agreements by focusing on the buyer's right to sell back shares, not just purchase them.
Key components of this form
- Grant of Put: Outlines the right to sell shares back to the company.
- Exercise of Put: Details the procedure for when and how the put option may be exercised.
- Payment and Delivery of Shares: Specifies payment terms and share transfer requirements.
- Adjustment of Purchase Price: Includes provisions for adjusting shares and prices in case of corporate actions.
- Miscellaneous Clauses: Covers general conditions and terminations related to the agreement.
Situations where this form applies
A Put Agreement should be used in scenarios where an investor has acquired shares in a corporation and desires assurance that they can sell these shares back to the company under certain conditions. This form is ideal for shareholders seeking to hedge their investment risks or ensure liquidity under specified events identified in the accompanying stock purchase agreement.
Intended users of this form
- Shareholders of a corporation who have purchased Series A Preferred Stock.
- Companies issuing shares who want to formalize the rights of their shareholders regarding the sale back of stock.
- Investors looking for contractual terms that provide an exit strategy for their investments.
Instructions for completing this form
- Identify the parties involved by entering the names of the corporation and the purchaser.
- Specify the number of shares being granted under the Put Agreement.
- Include the purchase price per share and any accumulated dividends.
- Detail the conditions for exercising the Put, including relevant time frames and notices.
- Ensure all parties sign and date the form to validate the agreement.
Notarization requirements for this form
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to clearly define the number of shares being sold back.
- Omitting important details regarding payment and delivery of shares.
- Not specifying the method of providing notice for exercising the Put.
- Neglecting to ensure all parties have signed the agreement.
- Forgetting to adjust the purchase price in case of any corporate events.
Advantages of online completion
- Convenient downloadable format allows for immediate use.
- Editable fields enable customization to suit specific agreements.
- Drafted by licensed attorneys to ensure legal compliance and completeness.
- Access to resources to help understand the content and implications.
Legal use & context
- This agreement is enforceable as a binding contract once executed by both parties.
- It is important to ensure compliance with all applicable corporate laws and regulations when using this document.
- The rights granted may be subject to specific limitations or conditions set forth in the corresponding stock purchase agreement.
Main things to remember
- A Put Agreement provides security for investors by allowing them to sell shares back to the issuing company.
- Correct completion and execution of the form enhance legal enforceability.
- It is important to be aware of any state-specific requirements that may apply to this agreement.
- Using this form online offers convenience and legal assurance through expert drafting.
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