A stock purchase agreement is a formal document created between a company and a shareholder that mentions details about the number of shares purchased by the shareholder, the value of the share at the time of purchase and the mode of payment. The agreement must give the names of the company and the investor clearly and also include the date of creating the document.
There can be two types of stock purchase agreement. Most of these agreements are non-restricted in nature, meaning, there are no restrictions on the shareholder once the stocks have been purchased; he owns them, he can sell them or keep them according to his wish. Restricted stock purchase agreements have certain limitations, such as, the shareholder must sell some of his stocks after a period of time. It is mostly done in case of shareholder who is also a co-founder and the restrictions ensure that he does not take with him a large number of shares if he leaves the company.
Sample Stock Purchase Agreement
A sample of the agreement can be downloaded from below.