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Equity Buyback Agreement
"I need an Equity Buyback Agreement for our Ontario-based tech company to repurchase 10,000 common shares from a departing senior executive, with the closing date set for March 15, 2025, including non-compete and confidentiality provisions."
1. Parties: Identification of the selling shareholder(s) and the corporation purchasing the shares
2. Background: Context of the share ownership and reason for the buyback arrangement
3. Definitions: Key terms used throughout the agreement
4. Purchase and Sale: Core terms of the transaction including number of shares, class of shares, and purchase price
5. Purchase Price and Payment: Details of the consideration and payment terms, including payment method and timing
6. Closing: Timing and mechanics of the transaction closing
7. Representations and Warranties of the Seller: Seller's confirmations regarding share ownership, authority to sell, and absence of encumbrances
8. Representations and Warranties of the Corporation: Corporation's confirmations regarding authority, compliance with laws, and corporate approval
9. Closing Deliveries: Documents and items to be delivered by each party at closing
10. Tax Matters: Treatment of tax implications and responsibilities
11. Confidentiality: Obligations regarding non-disclosure of transaction details
12. General Provisions: Standard clauses including notices, amendments, governing law, and counterparts
1. Employee Matters: Required when the selling shareholder is/was an employee, addressing ongoing employment obligations or restrictions
2. Non-Competition and Non-Solicitation: Include when the selling shareholder should be restricted from competing or soliciting customers/employees
3. Regulatory Approvals: Required when the transaction needs specific regulatory clearances
4. Holdback Provisions: Include when part of the purchase price is to be held back for indemnification or other purposes
5. Installment Payments: Include when the purchase price will be paid over time rather than at closing
6. Third Party Consents: Required when the share transfer requires approval from other parties
7. Release: Include when the parties wish to release each other from claims related to share ownership
8. Survival: Include when certain representations or obligations should survive closing
1. Schedule A - Share Details: Detailed description of shares being purchased including share certificate numbers and share class rights
2. Schedule B - Purchase Price Calculation: Breakdown of how the purchase price was determined, including any valuation methodologies
3. Schedule C - Closing Documents: List of all documents required for closing
4. Schedule D - Corporate Resolutions: Copies of relevant board and shareholder resolutions approving the buyback
5. Schedule E - Outstanding Liabilities: List of any outstanding obligations or liabilities related to the shares
6. Appendix 1 - Share Certificates: Copies of share certificates to be transferred
7. Appendix 2 - Transfer Forms: Share transfer forms and other administrative documents
Authors
Financial Services
Technology
Manufacturing
Professional Services
Retail
Real Estate
Healthcare
Energy
Mining
Transportation
Agriculture
Construction
Entertainment
Education
Telecommunications
Legal
Finance
Corporate Secretariat
Treasury
Tax
Compliance
Human Resources
Board of Directors
Corporate Governance
Investor Relations
Chief Executive Officer
Chief Financial Officer
Corporate Secretary
General Counsel
Legal Counsel
Corporate Lawyer
Finance Director
Treasury Manager
Board Member
Company Director
Shareholder Relations Manager
HR Director
Tax Manager
Compliance Officer
Corporate Governance Officer
Investment Manager
Business Development Director
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