EXPLANATION AND GUIDE
Short Form Transfer of Stock Agreement (Form 5.7) This is a short form agreement where an owner of stock in a private company sells stock to a third party. It is to be used only in simple transactions.
SHORT FORM TRANSFER OF STOCK OF AGREEMENT The undersigned shareholder (“Shareholder”) hereby assigns, sells, and transfers to ___________________ (“Buyer”) ___ of the shares of [common stock] [preferred stock] of _____________ (“Company”) owned by Shareholder (“Stock”). The purchase price shall be as indicated below, and shall be paid by Buyer within ___ days of Buyer having received an executed copy of this Agreement with the stock certificate representing the Stock duly endorsed to Buyer. The Shareholder represents that he or she owns the Stock free and clear of all liens, security interests, claims, or other encumbrances and that Buyer will obtain good, valid and marketable title to the Stock. This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and supersedes all prior and contemporaneous agreements, representations, warranties, understandings, negotiations, and discussions, whether oral or written with respect to its subject matter. This Agreement may only be amended in writing, signed by both parties. This Agreement shall be construed as to its fair language and not strictly for or against any party. Date: ___________________ BUYER [NAME] By: Title: Number of Shares of Company Stock Being Sold: Shareholder Aggregate Purchase Price: Printed Name of Shareholder
Printed Name of Spouse