Stock Exchange Agreements effectuate contractual arrangements between two parties who have agreed on the exchange of each company’s stock. This exchange is generally part of either a merger or sale of one of the companies.

A typical Stock Exchange Agreement will outline that, subject to the terms and conditions of this Agreement, Company A agrees to transfer an aggregate of 100 Class A common shares of the Company, which represent 100% of the issued and outstanding shares of Company A’s common stock, to the Purchaser, and the Purchaser agrees to issue to Seller an aggregate of 100,000 newly issued, restricted shares of Purchaser’s common stock, representing approximately 51% of the outstanding shares of common stock of Purchaser. At the completion of the exchange, the Company will be a wholly owned subsidiary of Purchaser.

Once these agreements are executed, ownership of the company is transferred to the purchaser.

RealDealDocs.com is a division of Practice Technologies, Inc. the creators of SmartRules.com.
SmartRules provides step by step guides to local rules and civil procedure for state courts & federal courts throughout the country.

Popularity: 5% [?]