Title: Understanding Arizona Sample Stock Purchase Agreement for Purchase of Common Stock of Wholly-Owned Subsidiary by Separate Corporation Introduction: A stock purchase agreement (SPA) is a legally binding document that outlines the terms and conditions under which an individual or corporation agrees to purchase a specific number of shares of a company's common stock. In Arizona, the Sample Stock Purchase Agreement for Purchase of Common Stock of Wholly-Owned Subsidiary by Separate Corporation plays a crucial role in facilitating the acquisition of a subsidiary by a separate corporation. This article provides a detailed description of this agreement, its primary components, and potential variations. 1. Key Components of an Arizona Sample Stock Purchase Agreement: — Identification of Parties: The agreement starts by clearly identifying the seller (wholly-owned subsidiary) and the buyer (separate corporation) involved in the transaction. — Stock Purchase Transaction: The agreement specifies the number of shares to be purchased by the buyer from the subsidiary, along with the purchase price per share and the total consideration. — Representations and Warranties: Both the seller and the buyer provide assurances regarding the accuracy of the information they have provided, such as financial statements, ownership, legal compliance, and other relevant matters. — Covenants and Conditions: The agreement lays out specific actions that the parties must take or avoid during the transaction, ensuring the smooth completion of the stock purchase. — Closing and Post-Closing Obligations: Details regarding the closing date, delivery of stock certificates, payment methods, and any post-closing obligations, such as indemnification and non-competition clauses, are included in this section. — Termination and Dispute Resolution: The agreement includes provisions for termination under specific circumstances and mechanisms for resolving any disputes that may arise. 2. Variations of the Arizona Sample Stock Purchase Agreement: a) Stock Purchase Agreement for Purchase of Partially-Owned Subsidiary by Separate Corporation: This agreement is used when a corporation intends to acquire less than 100% ownership of a subsidiary. b) Stock Purchase Agreement for Purchase of Preferred Stock: In cases where a separate corporation wishes to purchase preferred stock to common stock, this agreement provides the necessary framework. c) Stock Purchase Agreement for Purchase of Controlling Interest: This agreement is employed when a separate corporation seeks to acquire a controlling interest in a wholly-owned subsidiary. Conclusion: The Arizona Sample Stock Purchase Agreement for Purchase of Common Stock of Wholly-Owned Subsidiary by Separate Corporation is a crucial legal document that facilitates the acquisition of a subsidiary by a separate corporation. Understanding the key components of this agreement is vital for both buyers and sellers involved in such transactions. Additionally, depending on the specific circumstances, other variations of stock purchase agreements may apply, each catering to unique acquisition scenarios in the corporate realm.