Stock Purchase Agreement And Sec In Washington
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FAQ
The agreement ensures that you, as a buyer, clearly understand the terms of the brokerage's representation and compensation. State law says it must include things like: The term of the agreement (with a default term of 60 days and an option for a longer term) The name of the broker appointed to be the buyer's agent.
While an SPA includes comprehensive representations, warranties, covenants and indemnification provisions, an STA contains fewer clauses and may be suitable for simpler transactions.
Yes, you can write your own contract. However, including all necessary elements is crucial to make it legally binding.
Following are the key pieces of information that should be spelled out within the buy-sell agreement: List of triggering buyout events. List of partners or owners involved and their current equity stakes. A recent valuation of the company's overall equity. A funding instrument, such as life insurance policies.
The biggest difference is that an SPA is the sale of all shares, and an APA is the sale of selected assets. Therefore, they are both different transactions and have different procedures. 2. With a SPA, all shareholders in the company must be consulted and agree to sell their shares in the company.
