This stock redemption agreement template has 5 pages and is a MS Word file type listed under our production & operations documents.
Sample of our stock redemption agreement template:
STOCK REDEMPTION AGREEMENT This Stock Redemption Agreement (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Company"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SHAREHOLDER NAME] (the "Shareholder"), an individual/entity with its principal place of residence/business located at: [COMPLETE ADDRESS] WHEREAS, the Shareholder is the legal and beneficial owner of [NUMBER] shares of [Class/Type] stock of the Company (the "Shares"); WHEREAS, the Shareholder desires to redeem the Shares, and the Company agrees to redeem the Shares on the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties hereto agree as follows: REDEMPTION OF SHARES Shares Redeemed: The Shareholder agrees to sell, transfer, and assign to the Company, and the Company agrees to redeem from the Shareholder, [NUMBER] Shares of [Class/Type] stock of the Company, free and clear of all liens, claims, and encumbrances. Redemption Price: The Company agrees to pay the Shareholder a redemption price of [AMOUNT] per Share, for a total redemption price of [TOTAL AMOUNT] (the "Redemption Price"). Payment of Redemption Price: The Company shall pay the Redemption Price to the Shareholder as follows: a) [SPECIFY PAYMENT TERMS, e.g., lump sum, installment payments.] b) Payment shall be made by [SPECIFY METHOD OF PAYMENT, e.g., bank transfer, check.] Delivery of Shares: Upon receipt of the Redemption Price, the Shareholder shall deliver to the Company the share certificates representing the Shares, duly endorsed for transfer or accompanied by duly executed stock powers, and any other documents necessary to transfer ownership of the Shares to the Company. REPRESENTATIONS AND WARRANTIES 2.1 Representations of the Shareholder: The Shareholder represents and warrants that: a) The Shareholder is the sole legal and beneficial owner of the Shares. b) The Shares are free and clear of all liens, claims, encumbrances, and other third-party rights. c) The Shareholder has full power and authority to enter into this Agreement and to transfer the Shares to the Company. d) The execution and delivery of this Agreement do not violate any agreement, order, or law to which the Shareholder is subject. 2.2 Representations of the Company: The Company represents and warrants that: a) The Company is duly organized, validly existing, and in good standing under the laws of the [State/Province] of [STATE/PROVINCE]. b) The Company has full power and authority to enter into this Agreement and to perform its obligations hereunder. c) The execution and delivery of this Agreement have been duly authorized by all necessary corporate action. d) The Redemption Price does not exceed the fair market value of the Shares, and the redemption will not impair the capital of the Company or violate any applicable laws or agreements to which the Company is a party. CLOSING 3.1 Closing Date: The closing of the transaction contemplated by this Agreement (the "Closing") shall take place on [DATE] at [TIME] at the Company's principal office, or at such other time and place as the Parties may mutually agree. 3.2 Conditions to Closing: The obligations of the Company and the Shareholder to consummate the Closing are subject to the satisfaction or waiver of the following conditions: a) All representations and warranties of the Parties contained in this Agreement shall be true and correct as of the Closing Date. b) All necessary consents, approvals, and authorizations required to consummate the redemption shall have been obtained
