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A stock purchase agreement typically includes the following information: Your business name. The name and mailing address of the entity buying shares in your company's stocks. The par value (essentially the sale price) of the stocks being sold. The number of stocks the buyer is purchasing.
Some of the key items that are listed in a stock purchase agreement are: Name of the company whose shares are being bought and sold; Name of the buyer and seller of shares; The number of shares being sold and the par value of those shares; The date and place of the transaction;
An investor rights agreement (IRA) is a typical document negotiated between a venture capitalist (VC) and other concerns providing capital financing to a startup company. It provides the rights and privileges afforded these new stockholders in the company.
The buyer's lawyers will generally prepare the first draft of the share purchase agreement (SPA). However, in addition to precedents which assume that the drafter is acting for the buyer, we also provide precedents for drafters acting for the seller (either preparing a first draft or marking up the buyer's draft).
In a sale of shares between two parties, a draft SPA is normally drawn up by the buyer's legal representatives, as it's the buyer who is most concerned that the SPA protects them against post-sale liabilities.
Consult a business attorney to help write your stock purchase agreement or review it and make suggestions before you present it to your investor. A stock purchase agreement typically includes the following information: Your business name. The name and mailing address of the entity buying shares in your company's stocks.
The share purchase agreement is usually drafted by the seller's lawyer, although the buyer may also seek legal advice and make revisions to the agreement.
Either the seller or the buyer can prepare a purchase agreement. Like any contract, it can be a standard document that one party uses in the normal course of business or it can be the end result of back-and-forth negotiations.