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Sale of Shares Agreement

This Sale of Shares Agreement facilitates the formal transfer of ownership of shares from a seller to a buyer, outlining the terms and conditions of the transaction. It is used when an individual or entity wishes to sell their shares in a private company.

Updated 15d ago
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Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

SALE OF SHARES AGREEMENT

This Sale of Shares Agreement (the "Agreement") is made and entered into as of this {{day}} day of {{month}}, {{year}} (the "Effective Date"),

PARTIES

BETWEEN:

{{seller_name}}, a company duly incorporated under the laws of {{country}}, with its registered office at {{seller_address}} (hereinafter referred to as the "Seller"),

AND

{{buyer_name}}, a company duly incorporated under the laws of {{country}}, with its registered office at {{buyer_address}} (hereinafter referred to as the "Buyer").

(The Seller and the Buyer hereinafter collectively referred to as the “Parties” and individually as a “Party”)

RECITALS

WHEREAS, the Seller is the registered and beneficial owner of {{number_of_shares}} ordinary shares (the "Shares") in {{target_company_name}}, a company duly incorporated under the laws of {{country}}, with registration number {{registration_number}} and having its registered office at {{target_company_address}} (the "Target Company");

WHEREAS, the Seller desires to sell, and the Buyer desires to purchase, the Shares, subject to the terms and conditions set forth in this Agreement.

SALE AND PURCHASE OF SHARES

1.1. The Seller hereby agrees to sell, transfer and assign to the Buyer, and the Buyer hereby agrees to purchase and acquire from the Seller, all of the Shares, free from all liens, charges, and encumbrances.

1.2. The purchase price for the Shares shall be {{currency}} {{purchase_price}} ({{purchase_price_words}}), (the "Purchase Price").

1.3. The Purchase Price shall be paid by the Buyer to the Seller on the Closing Date (as defined below) in the following manner: {{payment_terms}}.

REPRESENTATIONS AND WARRANTIES OF THE SELLER

The Seller hereby represents and warrants to the Buyer that:

2.1. The Seller is the sole legal and beneficial owner of the Shares and has the full right, power, and authority to sell, transfer, and assign the Shares to the Buyer.

2.2. The Shares are free and clear of all liens, charges, encumbrances, and any third-party rights.

2.3. The Seller has obtained all necessary consents, approvals, and authorizations for the execution and performance of this Agreement.

CLOSING

3.1. The closing of the sale and purchase of the Shares (the "Closing") shall take place on {{closing_date}} at {{closing_location}} or such other date and place as the Parties may mutually agree.

3.2. At Closing, the Seller shall deliver to the Buyer:

(a) A duly executed share transfer form in respect of the Shares.

(b) The original share certificate(s) representing the Shares.

(c) All necessary corporate resolutions authorizing the transfer.

3.3. At Closing, the Buyer shall pay the Purchase Price to the Seller in accordance with Section 1.3.

INDEMNIFICATION

4.1. The Seller shall indemnify and hold harmless the Buyer from and against any and all losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to any breach of the representations, warranties, or covenants made by the Seller in this Agreement.

4.2. The Buyer shall indemnify and hold harmless the Seller from and against any and all losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to any breach of the representations, warranties, or covenants made by the Buyer in this Agreement.

GOVERNING LAW AND DISPUTE RESOLUTION

5.1. This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

5.2. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by arbitration in accordance with the rules of the {{arbitration_institution}}.

CONFIDENTIALITY

6.1. All information exchanged between the Parties in connection with this Agreement shall be treated as confidential and shall not be disclosed to any third party without the prior written consent of the other Party.

ENTIRE AGREEMENT

7.1. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

SIGNATURE BLOCK

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

____________________________

SELLER: {{seller_name}}

By: ________________________

Name: {{seller_signatory_name}}

Title: {{seller_signatory_title}}

____________________________

BUYER: {{buyer_name}}

By: ________________________

Name: {{buyer_signatory_name}}

Title: {{buyer_signatory_title}}

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