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The Stock Purchase Agreement Between Shareholders is essential when existing shareholders wish to transfer ownership stakes within a company. This document, commonly used in the United States, serves multiple purposes: it formalizes the terms of the share transfer, ensures compliance with securities laws, protects both parties' interests, and maintains proper documentation for corporate and tax purposes. The agreement typically includes detailed information about the shares being transferred, purchase price, payment terms, representations and warranties, and any specific conditions or restrictions on the transfer. It's particularly important for closely-held corporations and private companies where share transfers need to be carefully controlled and documented.
