Company Letterhead
{{company_name}}
{{company_address}}
Phone: {{phone}}
Email: {{email}}
Website: {{website}}
PREFERRED STOCK PURCHASE AGREEMENT
This Preferred Stock Purchase Agreement (this “Agreement”) is made and entered into as of {{date_of_agreement}}, by and between:
{{company_legal_name}}, a company duly incorporated under the laws of {{jurisdiction_of_incorporation}}, with its registered office at {{company_registered_address}} (the “Company”), and
{{investor_legal_name}}, an individual residing at {{investor_address}} / a company duly incorporated under the laws of {{investor_jurisdiction}}, with its registered office at {{investor_registered_address}} (the “Investor”).
The Company and the Investor are hereinafter collectively referred to as the “Parties” and individually as a “Party.”
RECITALS
WHEREAS, the Company desires to issue and sell to the Investor, and the Investor desires to purchase from the Company, shares of its Series A Preferred Stock, par value {{par_value_per_share}} per share (the “Preferred Stock”), on the terms and conditions set forth in this Agreement.
WHEREAS, the Company believes that the sale of the Preferred Stock will provide the Company with necessary capital for its operations and expansion.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
SALE AND PURCHASE OF PREFERRED STOCK
2.1. Sale and Issuance of Preferred Stock. Subject to the terms and conditions of this Agreement, at the Closing (as defined below), the Company agrees to sell and issue to the Investor, and the Investor agrees to purchase from the Company, {{number_of_shares}} shares of Preferred Stock (the “Shares”).
2.2. Purchase Price. The purchase price for the Shares shall be {{purchase_price_per_share}} per share, for a total aggregate purchase price of {{total_purchase_price}} (the “Purchase Price”).
2.3. Payment. The Purchase Price shall be payable by the Investor to the Company in immediately available funds at the Closing.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company hereby represents and warrants to the Investor as of the date of this Agreement and as of the Closing Date, that:
3.1. Organization and Good Standing. The Company is duly organized, validly existing, and in good standing under the laws of {{jurisdiction_of_incorporation}} and has all requisite corporate power and authority to carry on its business as now conducted.
3.2. Authorization. All corporate action on the part of the Company, its directors, and shareholders necessary for the authorization, execution, and delivery of this Agreement, the performance of all obligations of the Company hereunder, and the authorization, issuance, and delivery of the Shares has been taken or will be taken prior to the Closing.
3.3. Capitalization. The authorized capital stock of the Company consists of {{authorized_common_shares}} shares of common stock, of which {{issued_common_shares}} are issued and outstanding, and {{authorized_preferred_shares}} shares of preferred stock, of which {{issued_preferred_shares}} are issued and outstanding. The Shares, when issued in accordance with this Agreement, will be duly authorized, validly issued, fully paid, and non-assessable.
3.4. Compliance with Laws. The Company is not in violation of any applicable statute, rule, ordinance, or regulation of any governmental authority.
REPRESENTATIONS AND WARRANTIES OF THE INVESTOR
The Investor hereby represents and warrants to the Company as of the date of this Agreement and as of the Closing Date, that:
4.1. Authorization. The Investor has full power and authority to enter into this Agreement and to perform its obligations hereunder.
4.2. Purchase for Investment. The Shares are being acquired by the Investor for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
4.3. Accredited Investor Status. The Investor is an “accredited investor” as defined in applicable securities laws and regulations.
4.4. Understanding of Risks. The Investor understands that the purchase of the Shares involves a high degree of risk and that the Investor could lose its entire investment.
COVENANTS
5.1. Access to Information. The Company shall provide the Investor with reasonable access to its books and records upon reasonable notice.
5.2. Confidentiality. Each Party agrees to keep confidential all non-public information obtained from the other Party pursuant to this Agreement.
5.3. Further Assurances. Each Party agrees to execute and deliver such other documents and take such further actions as may be reasonably necessary to carry out the provisions of this Agreement.
CLOSING
6.1. Date and Time. The closing of the purchase and sale of the Shares (the “Closing”) shall take place remotely via the exchange of documents and signatures on {{closing_date}}, or at such other date and time as the Parties may mutually agree.
6.2. Deliveries by the Company. At the Closing, the Company shall deliver to the Investor a duly executed stock certificate representing the Shares and an updated cap table reflecting the issuance of the Shares.
6.3. Deliveries by the Investor. At the Closing, the Investor shall deliver the Purchase Price to the Company.
GOVERNING LAW AND DISPUTE RESOLUTION
7.1. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of {{governing_jurisdiction}}.
7.2. Dispute Resolution. Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration under the rules of {{arbitration_institution}} for the time being in force, which rules are deemed to be incorporated by reference into this clause. The seat of the arbitration shall be {{arbitration_seat}}.
MISCELLANEOUS
8.1. Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral.
8.2. Amendments and Waivers. Any amendment to this Agreement must be in writing and signed by both Parties. Any waiver of a provision of this Agreement must be in writing and signed by the waiving Party.
8.3. Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by reputable overnight courier, or sent by email with confirmation of receipt, to the addresses set forth above.
8.4. Assignment. This Agreement may not be assigned by either Party without the prior written consent of the other Party.
8.5. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
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