Canada Shareholder Agreement with Put Option

Protect the interests of the shareholders of a Canadian company with this Shareholder Agreement with Put Option.

• Scope of Agreement. The Shareholder Agreement establishes the obligations of the shareholders and the corporation to each other, and sets out any restrictions on share transfers or the issue of new shares.
• Right of First Refusal. The remaining shareholders have a right of first refusal to acquire the shares of a departing shareholder, before the shares can be offered to a third party.
• Put Option. A departing shareholder also has a buy-sell or 'put' option, which would require the remaining shareholders to purchase his/her shares. The put option is available only after the departing shareholder has been unsuccessful in finding a third party purchaser for a period of 6 months.
• Buy-sell options for both an assured buy-out and a mandatory or 'shotgun' buy-sell.
• Deceased Shareholder. If a shareholder dies, the surviving shareholders have the option to buy the deceased shareholder's shares, failing which they must be purchased by the corporation.