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Simple Share Purchase Agreement Template for Canada

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Key Requirements PROMPT example:

Simple Share Purchase Agreement

"I need a Simple Share Purchase Agreement for acquiring 1,000 common shares in a Canadian technology startup from a single seller, with closing planned for March 15, 2025, and payment to be made in three installments."

Document background
The Simple Share Purchase Agreement is a fundamental transaction document used in Canadian business practice when one party wishes to acquire shares from another party. This agreement is particularly suitable for straightforward share transfers where the transaction structure is relatively simple and the due diligence requirements are minimal. It is commonly used for private company shares and small to medium-sized transactions. The document incorporates relevant Canadian federal and provincial legal requirements, including compliance with the Canada Business Corporations Act or provincial equivalents, securities regulations, and tax considerations. The agreement typically includes essential provisions regarding the sale terms, representations and warranties, and closing mechanics, while remaining more streamlined than complex share purchase agreements used in larger transactions.
Suggested Sections

1. Parties: Identification of the seller(s) and purchaser(s) with full legal names and addresses

2. Background: Context of the transaction, including description of the company whose shares are being sold

3. Definitions: Key terms used throughout the agreement

4. Purchase and Sale: Core transaction terms including number of shares, class of shares, and purchase price

5. Purchase Price and Payment: Details of consideration, payment method, and timing

6. Closing: Timing and mechanics of the closing, including deliverables

7. Representations and Warranties of the Seller: Seller's statements about ownership, authority to sell, and share status

8. Representations and Warranties of the Purchaser: Purchaser's statements about authority and capacity to purchase

9. Conditions Precedent: Conditions that must be met before closing

10. Covenants: Actions parties must take or refrain from taking before and after closing

11. Termination: Circumstances under which the agreement can be terminated

12. General Provisions: Standard clauses including notices, amendments, governing law, etc.

Optional Sections

1. Purchase Price Adjustment: Used when the final purchase price may be adjusted based on closing accounts or other factors

2. Non-Competition and Non-Solicitation: Used when the seller needs to be restricted from competing or soliciting employees/customers

3. Earn-out Provisions: Used when part of the purchase price is contingent on future performance

4. Tax Matters: Used when specific tax treatments or allocations need to be addressed

5. Employee Matters: Used when there are specific arrangements regarding key employees

6. Intellectual Property: Used when IP assets are material to the transaction

7. Real Property: Used when the company owns significant real estate assets

8. Environmental Matters: Used when environmental liabilities are a concern

9. Transition Services: Used when the seller will provide services post-closing

Suggested Schedules

1. Schedule A - Share Details: Details of the shares being sold including class, certificate numbers, and share numbers

2. Schedule B - Purchase Price Calculation: Detailed breakdown of the purchase price and any adjustments

3. Schedule C - Encumbrances: List of any liens, charges, or encumbrances on the shares

4. Schedule D - Corporate Information: Details about the corporation including articles, bylaws, and material contracts

5. Schedule E - Closing Deliverables: List of all documents and items to be delivered at closing

6. Schedule F - Representations and Warranties Disclosure: Exceptions or qualifications to the representations and warranties

7. Appendix 1 - Form of Share Certificate: Form of new share certificate to be issued to purchaser

8. Appendix 2 - Form of Resolution: Form of director's resolution approving the share transfer

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























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Relevant Industries

Technology

Manufacturing

Professional Services

Retail

Real Estate

Financial Services

Healthcare

Energy

Transportation

Consumer Goods

Media and Entertainment

Agriculture

Construction

Mining

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Tax

Compliance

Corporate Secretariat

Treasury

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Company Secretary

Financial Controller

Investment Manager

Business Development Manager

Mergers & Acquisitions Director

Corporate Development Officer

Transaction Manager

Compliance Officer

Tax Manager

Board Director

Managing Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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