A preferred stock and license restructuring agreement is a legal document entered into between two parties which could be two individuals or two organizations. It is usually a business agreement that represents the mutual understanding entered into between both the parties. This document is drafted when one of the parties decides to restructure its capital by selling some of its shares.
There are few important points that are required to be mentioned in the agreement. They are as follows:
- The effective date of the agreement which is usually the date on which the agreement is drafted.
- The law under which the agreement has been prepared.
- The name of both the parties entering into the agreement.
- The currency type in which the all the financial transactions will take place.
- The percentage or the amount of shares to be sold. The share type also needs to be mentioned.
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