Share repurchases are often reduced in times of economic uncertainty. For example, in the second quarter of 2020, the acquisition of S-P 500 fell 55.4% from the previous quarter to $88.7 billion, due to companies wanting to save money during the COVID 19 pandemic. When the company pays all the dividends to shareholders each year and the total number of shares decreases, each shareholder receives a larger annual dividend. If the group increases its profits and its total dividend distribution, the reduction in the total number of shares further increases dividend growth. Shareholders expect a company that pays regular dividends to continue to do so. (a) The seller is the sole rightful owner, the shares and, after the conclusion of the transactions provided for in this agreement, the purchaser acquired from the seller a property and negotiable of these shares, free and free of any privilege, fees, charges, charges, restrictions, rights, voting rights, appeals and obligations of any kind (but, to the extent applicable). This share repurchase agreement (this “agreement”) will be concluded from December 10, 2019 by and between Primoris Services Corporation, a Delaware Corporation (“Buyer”), and the shareholders of the Schedule A buyer (together the “sellers”). A share buyback shows that the group believes its shares are undervalued and that it is an effective method of putting money back into the pockets of shareholders. Buying back shares reduces the number of existing shares, so that each one is worth a higher percentage of the business. The EPS of the stock increases while the price/earnings ratio (P/E) decreases or the share price rises.

A share buyback shows investors that the company has enough money to deal with emergencies and a low probability of economic problems. A share repurchase agreement is a contract between a company and one or more of its shareholders, under which the entity may repurchase a portion of its own common shares. The document identifies the parties involved and records the total price of the participation, the method of payment and the date of the transaction. The contract also includes assurances and guarantees on behalf of both parties, with the general effect that they are each legally able to continue the transaction.