Products tagged with 'share purchase form'

Sell the shares of an Ontario corporation and transfer any existing shareholder loans with this Share Purchase and Assignment Agreement.

• The seller sells its shares and assigns the balance of shareholder loans still outstanding over to the buyer, who is taking over the business of the company.
• The purchase price will be allocated between the shares and the shareholder loans, at fair market value.
• The buyer is at liberty to contact customers, suppliers and employees to notify them of the change of control. The seller will operate the business until closing.
• The parties will each file any required tax elections with respect to the transaction.
• This template is available as a downloadable and fully customizable MS Word document.
• Intended for use only in the Province of Ontario, Canada.

Purpose of the Stock Redemption Agreement

This downloadable short form Stock Redemption Agreement is designed to facilitate the redemption of shares in a U.S. business corporation. The agreement outlines the terms under which the corporation will purchase back shares from a specific stockholder.

Redemption of Shares

Under this agreement, the corporation consents to redeem all of the shares currently held by the designated stockholder. This process effectively removes the stockholder’s ownership interest in the company.

Tax Treatment

The redemption is structured so that the transaction will be treated as capital gains rather than ordinary income for tax purposes.

Stockholder Resignation

As part of the agreement, the stockholder will resign from any positions held as director and officer of the corporation upon the completion of the redemption.

Restriction on Future Stock Acquisition

The stockholder further agrees not to acquire additional shares of the corporation's stock for a specified period following redemption.

Format and Intended Use

This agreement is available in Microsoft Word format and is intended exclusively for use within the United States.