Indiana Sample Convertible Preferred Stock Purchase Agreement between Sheldahl, Inc., Molex Incorporated and Richard C. Wilcox, Jr.

• Category: Corporations - Public - Stock Purchase Sample
• State: Multi-State
• Control #: US-EG-9013
• Format: Word; Rich Text

Description

Convertible Preferred Stock Purchase Agreement between Sheldahl, Inc., Molex Incorporated and Richard C. Wilcox, Jr. dated January 11, 2000. 12 pages

Title: Indiana Sample Convertible Preferred Stock Purchase Agreement: A Comprehensive Analysis Introduction: The Indiana Sample Convertible Preferred Stock Purchase Agreement is a legally binding document that outlines the terms and conditions of a stock purchase transaction between Shell, Inc., Mole Incorporated, and Richard C. Wilcox, Jr. This agreement plays a crucial role in facilitating the conversion of preferred stock into common stock at predetermined rates, empowering investors to benefit from potential future prospects and protect their investment. This article aims to provide a detailed description of the various aspects, types, and significance of the Indiana Sample Convertible Preferred Stock Purchase Agreement. 1. Definition and Purpose: The Indiana Sample Convertible Preferred Stock Purchase Agreement establishes the legal framework governing the sale and purchase of convertible preferred stock in Indiana. This agreement enables Shell, Inc. to raise capital by offering convertible preferred stock to investors like Mole Incorporated and Richard C. Wilcox, Jr. The agreement sets out the terms of the purchase, including the number of shares, purchase price, conversion rate, and other pertinent clauses. 2. Parties Involved: The key parties involved in the Indiana Sample Convertible Preferred Stock Purchase Agreement are: a) Shell, Inc.: The issuing company that offers the convertible preferred stock for purchase. b) Mole Incorporated: An investor interested in acquiring the convertible preferred stock. c) Richard C. Wilcox, Jr.: Another investor involved in the purchase of convertible preferred stock. 3. Types of Indiana Sample Convertible Preferred Stock Purchase Agreements: There can be variations in the types of Indiana Sample Convertible Preferred Stock Purchase Agreements, depending on specific requirements and terms negotiated by the involved parties. Some common types include: a) Investor-Specific Agreement: Tailored to meet the requirements and terms agreed upon between Shell, Inc. and a specific investor like Mole Incorporated or Richard C. Wilcox, Jr. b) Class-Specific Agreement: Where different classes of preferred stock are issued, each with varied conversion rates and terms. c) Series-Specific Agreement: If the convertible preferred stock is issued in multiple series, separate agreements may outline specific terms for each series. 4. Key Clauses and Provisions: A typical Indiana Sample Convertible Preferred Stock Purchase Agreement may include the following essential clauses: a) Purchase Price and Number of Shares: Specifies the price at which the convertible preferred stock is sold and the number of shares sold to each investor. b) Conversion Right: Outlines the conditions that trigger the conversion of preferred stock to common stock, such as a specific event or passage of a particular time period. c) Conversion Ratio: Defines the ratio at which the convertible preferred stock can be converted to common stock. d) Dividend Provisions: Specifies any dividends payable to the holders of convertible preferred stock, if applicable. e) Voting Rights: Expounds upon the voting rights, if any, granted to preferred stockholders during shareholders' meetings. f) Anti-Dilution Provisions: Addresses the issue of potential dilution of the investor's ownership rights in certain circumstances, offering protection against future share issuance. g) Governing Law and Jurisdiction: Identifies Indiana as the governing law jurisdiction for the agreement, ensuring legal compliance and resolution of disputes. Conclusion: The Indiana Sample Convertible Preferred Stock Purchase Agreement plays a pivotal role in facilitating transparent and mutually beneficial transactions between companies like Shell, Inc. and investors like Mole Incorporated and Richard C. Wilcox, Jr. By clearly defining the terms, rights, and obligations of all parties involved, this agreement ensures conformity with Indiana's legal framework and provides a foundation for fruitful investor-company relationships.