Stock Transfer Agreement: Definition, Terms, Example
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What is a Stock Transfer Agreement?
A stock transfer agreement is a legal document between shareholders and another party that provides the right to sell or transfer shares of stock at a predetermined price.
A stock transfer agreement can be used when there are more than two parties involved in the sale of stocks, or for any time there is a need to specify which party has what rights if they are not already specified by law. The most common use for this type of agreement is when one company buys another company's assets. This ensures that all shareholders know which entity will have control over their shares after the transaction takes place. It also helps ensure that each shareholder will receive fair compensation based on how many shares they own, and protects against certain types of lawsuits from being filed against either side in the future.
Common Sections in Stock Transfer Agreements
Below is a list of common sections included in Stock Transfer Agreements. These sections are linked to the below sample agreement for you to explore.
Stock Transfer Agreement Sample
Exhibit 10.0
STOCK TRANSFER AGREEMENT
THIS STOCK TRANSFER AGREEMENT is entered into on December 17, 2010 by and between Saddle Ranch Productions, Inc., a Florida corporation (“Seller”) and Jo Cee, LLC, a Florida limited liability company (“Buyer”).
RECITALS
| A. |
WHEREAS, Seller is the owner of 4,108,107 shares (the “Securities”) of Common Stock of AMHN, Inc. (the “Company”). |
| B. |
WHEREAS, Seller desires to sell and transfer to Buyer and Buyer desires to purchase in accordance with the terms and conditions provided for herein, the Securities. |
NOW, THEREFORE, in consideration of the mutual covenants, agreements, repre-sentations and warranties contained in this Agreement, the parties agree as follows:
ARTICLE I
PURCHASE AND SALE OF SECURITIES
| Section 1.1 |
SALE OF SECURITIES: Subject to the terms and conditions set forth in this Agreement, on the Closing Date (defined below), Seller will transfer and convey the Securities to Buyer and Buyer will acquire the Securities from Seller. | |
| Section 1.2 |
CONSIDERATION: As full payment for the transfer of the securities by Seller to Buyer, Buyer, upon execution of this Agreement, shall deliver to Seller the sun of $87,495.00 (“Purchase Price”). | |
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller represents and warrants that:
| Section 2.1 |
MARKETABLE TITLE: Seller will convey to Buyer good and marketable title in and to the Securities, free and clear of any and all liens, encumbrances, other pledges or security interests and all other defects of title of any type whatsoever. The Securities shall not be subject to any restrictions imposed by the Company. | |
| Section 2.2 |
AUTHORITY: Seller has the right, power, legal capacity and authority to enter into and perform his respective obligations under this Agreement and no approvals or consents of any persons are necessary in connection with it. | |
| Section 2.3 |
OTHER AGREEMENTS: Seller’s performance of the transactions contemplated by this Agreement will not constitute a violation or a default under any agreement or instrument to which Seller is a party or under which Seller is bound. | |
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| Section 2.4 |
AFFILIATE: Seller is currently an affiliate of the Company as that term is defined by the Securities Act of 1933. | |
| Section 2.5 |
SELLER’S DATE OF ACQUISITION: Seller paid the full consideration for the Securities to the Company on or before May 11, 2009. | |
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE BUYER
The Buyer represents and warrants that:
| Section 3.1 |
The Buyer is a sophisticated investor. The Buyer has the financial ability to bear the economic risk of this investment, has adequate means for providing for the current needs and contingencies of the Buyer and has no need for liquidity with respect to the investment in the Company; | |
| Section 3.2 |
The Buyer: | |
| i. has evaluated the risks of a purchase of the Securities and has relied solely upon his own investigation of the Company;
ii. has not been furnished by Seller with any oral or written representation or oral or written information upon which the Buyer has relied in connection with the offering of the Securities that is not contained in this Agreement.
iii. has investigated the acquisition of the Securities to the extent the Buyer has deemed necessary or desirable and the Company or Seller have provided the Buyer with any assistance the Buyer has requested in connection herewith; and
iv. is an accredited investor as defined by section 501(a) of Regulation D under the Securities Exchange Act of 1933. | ||
| Section 3.3 |
The Buyer is not relying on the Seller or the Company or any of its affiliates or this Agreement with respect to corporate or individual tax information or other economic considerations involved in the investment. | |
| Section 3.4 |
No federal or state agency has passed upon the Securities or made any finding or determination as to the fairness of this investment. | |
| Section 3.5 |
Buyer acknowledges and is aware that there are substantial risks of loss of investment incident to the purchase of the Securities. | |
| Section 3.6 |
If the Buyer is an individual, the Buyer is 21 years of age and legally competent to execute this Agreement. If the Buyer is a corporation or other entity, it is duly authorized and validly existing in the state set forth on the signature page hereof, it is empowered, authorized and qualified to purchase the Securities, in the manner contemplated in this Agreement, and the person signing this Agreement on behalf of the Buyer has been duly authorized by it to do so. | |
2
ARTICLE IV
THE CLOSING
| Section 4.1 |
TIME AND PLACE: The transfer of the Securities by Seller to Buyer (the “Closing”) shall take place at the Company’s office at 100 North First Street, Suite 104, Burbank, CA 91502, upon completion of the Closing Procedures set forth in Section 4.2 (the “Closing Date”). | |
| Section 4.2 |
CLOSING PROCEDURES: The Closing shall occur as follows:
On the Closing Date, Buyer shall deliver the Purchase Price to Seller. Seller shall deliver to Buyer, the stock certificate representing the Securities, registered in the name of Seller for transfer, accompanied by the requisite stock power and corporate resolution duly executed by Seller and guaranteed by a Medallion Participant, for delivery by Buyer to the Company’s transfer agent. | |
ARTICLE V
GENERAL PROVISIONS
| Section 5.1 |
ASSIGNMENT: Buyer shall neither assign nor transfer his interest and/or rights under this Agreement without the prior written consent of Seller, which may be withheld at Seller’s sole and absolute discretion. | |
| Section 5.2 |
BINDING EFFECT: This Agreement shall be binding upon the parties hereto and their representatives, executors, successors and permitted assigns. | |
| Section 5.3 |
NOTICES: Unless otherwise changed by written notice, any notice or other communications required or permitted hereunder shall be deemed given if sent postage prepaid, return receipt requested, addressed to the respective party at the address set forth on the signature page of this Agreement. | |
| Section 5.4 |
GOVERNING LAW: This Agreement shall be interpreted in accordance with and governed by the laws of the State of Florida. | |
| Section 5.5 |
SURVIVAL OF REPRESENTATIONS: All agreements, representations, covenants and warranties on the part of the parties contained herein shall survive the closing of this Agreement and any investigation made at the time with respect thereto, shall not merge into any of the documents executed and delivered pursuant hereto, and shall remain enforceable to the fullest extent permitted at law or in equity. | |
| Section 5.6 |
ENTIRE AGREEMENT: This Agreement embodies the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, agreements and understandings, whether written or oral. This Agreement may not be changed, waived, discharged or terminated except by an instrument in writing signed by the party against whom enforcement of the change waiver, discharge or termination is sought. | |
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(Signature page to Stock Transfer Agreement between Saddle Ranch and Jo Cee, LLC)
| SELLER: |
BUYER: | |||
| SADDLE RANCH PRODUCTIONS, INC. |
JO CEE, LLC | |||
| /s/ Kimberly Sarubbi |
/s/ Susan L. Coyne | |||
| Kimberly Sarubbi, President |
Susan L. Coyne, Managing Member | |||
4
Reference:
Security Exchange Commission - Edgar Database, EX-10.0 2 dex100.htm STOCK TRANSFER AGREEMENT, Viewed September 27, 2021, View Source on SEC.
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Anand A.
Anand is an entrepreneur and attorney with a wide-ranging background. In his legal capacity, Anand has represented parties in (i) commercial finance, (ii) corporate, and (iii) real estate matters throughout the country, including New Jersey, Pennsylvania, Delaware, Arizona, and Georgia. He is well-versed in business formation and management, reviewing and negotiating contracts, advising clients on financing strategy, and various other arenas in which individuals and businesses commonly find themselves. As an entrepreneur, Anand is involved in the hospitality industry and commercial real estate. His approach to the legal practice is to treat clients fairly and provide the highest quality representation possible. Anand received his law degree from Rutgers University School of Law in 2013 and his Bachelor of Business Administration from Pace University, Lubin School of Business in 2007.
"Anand was a pleasure to work with! He was very thorough and professional."
Jason H.
Jason has been providing legal insight and business expertise since 2001. He is admitted to both the Virginia Bar and the Texas State Bar, and also proud of his membership to the Fellowship of Ministers and Churches. Having served many people, companies and organizations with legal and business needs, his peers and clients know him to be a high-performing and skilled attorney who genuinely cares about his clients. In addition to being a trusted legal advisor, he is a keen business advisor for executive leadership and senior leadership teams on corporate legal and regulatory matters. His personal mission is to take a genuine interest in his clients, and serve as a primary resource to them.
"Jason was outstanding! Professional and Proactive. I was very happy with the services he provided."
Max M.
Business attorney with a focus on the health care sector, bringing Biglaw experience in multi-million dollar mergers and acquisitions, financings, and general corporate counsel work to the small firm space. I now help startups and growing companies access the same level of sophistication and strategic guidance typically reserved for large institutions.
"Overall, Max M. did a great job compiling the demand letter. He was very thorough in requesting documentation, responding to questions promptly, and producing the letter. He provided reasonable explanations for the tone that he used along with recommendations for when to send it and what to demand. Additionally, he was very responsive and updated the draft promptly after feedback was provided. There were some minor grammatical errors present, but as Max M. provided me with a word document, I was able to easily rectify those."
Dolan W.
You need a lawyer who's more than just knowledgeable – you need someone who's on your side. That's where I come in. I'll be there every step of the way, offering clear communication and proactive solutions. Whether you're starting a business or navigating a complex legal matter, I'll help you make informed decisions and achieve your goals. I also have drafted many templates to save you money. Just use this link - https://www.contractscounsel.com/client/lawyer-profile/3764#Templates Why Choose Me? I put you first I'm proactive I'm efficient I'm accessible
"Dolan provided excellent quick and thorough service. I highly recommend using him."
Faryal A.
Ms. Ayub is an attorney licensed to practice in Texas. Before moving to the US, she has a number of years of experience in contract review, analysis and drafting. Ms. Ayub is available to help you with your legal problems, as well as filling LLC and other business entity formation documents. To know more about her practice, please visit https://ayublawfirmpllc.com/.
"provided a great service at the best price. Was very prompt and professional."
Craig M.
I have been practicing law for more than 7 years in Maine and have owned my law practice, Dirigo Law LLC, since 2020. My practice focuses mostly on Real Estate / Corporate transactions, Wills, Trusts, and Probate matters.
"In our phone conversation, Craig provided options to resolve my title issue"
August 3, 2021
Robert D.
Robert is a skilled corporate lawyer, licensed to practice law in NY and DC. He has over 25 years of experience, with a focus on Venture Capital, Private Equity, M&A, General Business Law and Company Formation. Robert brings business side experience to every legal transactions. This allows him to shape a client's legal needs around its business goals to drive success in an effective and efficient manner.
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