Redemption Agreement Template
Prepared for:
[Client.FirstName][Client.LastName]
[Client.Company]
Created by:
[Sender.FirstName][Sender.LastName]
[Sender.Company]
This redemption agreement is made and entered into on [Agreement.Date] by and between [Sender.Company] (Corporation) and [Client.FirstName][Client.LastName] (Shareholder). Both parties are in agreement to the following terms:
The Shareholder is the rightful owner of [Number.Shares] of [Stock.Type] stock in the Corporation.
The Shareholder and Corporation mutually desire that the Corporation redeem these shares in accordance with the terms of this redemption agreement.
Therefore, the Corporation agrees to redeem the above listed stock as of [Agreement.Date].
Payment
The Corporation agrees to pay $[Share.Price] per share by either:
- Cancellation of Shareholder’s financial obligation to the Corporation in relation to the above listed shares, OR
- Wire transfer for the full amount required to redeem the shares, if no such financial obligation exists.
Seller’s wire transfer information is as follows:
| Financial Institution: | |
| Primary Account Holder: | |
| Routing Number: | |
| Account Number: | |
Terms
Delivery
On [Agreement.Date], and upon successful payment via one of the two means listed above, the Shareholder agrees to fully surrender all rights and ownership to the above listed stock.
Dividends
Any dividends earned prior to [Agreement.Date] shall be the sole property of the Shareholder. Likewise, any dividends earned after [Agreement.Date] shall be the sole property of the Corporation.
Voting Rights
Any voting rights granted by ownership of the above listed stock shall belong to the Shareholder until [Agreement.Date]. After this date, voting rights shall be considered null and void.
Shareholder Warranties
The Shareholder warrants and swears that they are the sole owner of the above listed stock, and that there are no agreements in place with third parties for transfer of said stock’s ownership which could conflict with this redemption agreement.
Corporation Warranties
The Corporation warrants and swears that there are no agreements, covenants, or restrictions in the Corporation’s incorporation documents or bylaws which would interfere with the execution of this redemption agreement. Furthermore, the Corporation warrants that this redemption agreement does not violate any State, Local, or Federal statutes, regulations, or guidelines. If the Corporation’s bylaws require that this redemption agreement be approved by the Corporation’s boards, shareholders, or any other entity, the Corporation warrants that such approval will be obtained prior to [Agreement.Date].
Expenses
Each party agrees to be held responsible for their own expenses as they relate to this redemption agreement.PDF page break
Exhibits & Addendums
Any exhibits or addendums related to this redemption agreement shall be considered valid so long as they are signed by both parties.
Waiver
Waiver of any single right or article related to this redemption agreement by either party shall not constitute a cancellation or waiver of the entire agreement.
Severability
Should any aspect, article, or provision of this redemption agreement be judged as invalid, all other sections of this agreement shall continue to be upheld and enforced.
Binding Agreement
This redemption agreement shall be considered legally binding on both parties and their successors.
Modification
This redemption agreement shall not be modified, except through a written addendum signed by both parties.
The signatures below constitute as acceptance between both parties for any and all statements found within this redemption agreement.
Acceptance
Therefore, this agreement is duly executed as of the dates below.
[Sender.Company]
Signature
MM/DD/YYYY
[Sender.FirstName][Sender.LastName]
[Client.Company]
Signature
MM/DD/YYYY
[Client.FirstName][Client.LastName]
