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Stock Redemption Agreement
"I need a Stock Redemption Agreement for my Nigerian technology company to repurchase 25,000 ordinary shares from a retiring founder, with payment to be made in three installments over 2025, and including non-compete provisions."
1. Parties: Identification of the company and the selling shareholder(s)
2. Background: Context of the agreement, including current shareholding structure and reason for redemption
3. Definitions: Key terms used throughout the agreement
4. Agreement to Redeem: Core terms of the redemption, including number of shares and price per share
5. Purchase Price and Payment Terms: Details of the redemption price, payment method, and timing
6. Closing: Conditions precedent, closing process, and deliverables
7. Representations and Warranties of the Selling Shareholder: Seller's confirmations regarding share ownership, authority to sell, and absence of encumbrances
8. Representations and Warranties of the Company: Company's confirmations regarding authority, financial condition, and compliance
9. Tax Matters: Allocation of tax responsibilities and obligations
10. Confidentiality: Provisions regarding confidential treatment of the transaction and company information
11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes
12. Notices: Process and addresses for formal communications between parties
13. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability
1. Drag-Along Rights: Include when there are multiple selling shareholders to ensure all participate in the redemption
2. Installment Payments: Include when the redemption price will be paid in installments
3. Security Arrangements: Include when installment payments are involved and require security
4. Non-Competition and Non-Solicitation: Include when the selling shareholder has been involved in management
5. Corporate Governance Transition: Include when the selling shareholder holds board or management positions
6. Foreign Exchange Provisions: Include when the transaction involves foreign currency or international parties
7. Tax Indemnification: Include when complex tax implications require specific indemnification provisions
1. Schedule 1: Share Details: Details of shares being redeemed, including share certificate numbers and class of shares
2. Schedule 2: Calculation of Redemption Price: Detailed breakdown of how the redemption price was determined
3. Schedule 3: Closing Deliverables: List of all documents and items to be delivered at closing
4. Schedule 4: Form of Share Transfer Instrument: Template for the share transfer documentation
5. Schedule 5: Corporate Authorizations: Copies of board and shareholder resolutions authorizing the redemption
6. Appendix A: Disclosure Schedule: Exceptions to representations and warranties
7. Appendix B: Payment Schedule: If applicable, schedule of installment payments
Authors
Financial Services
Manufacturing
Technology
Real Estate
Energy
Telecommunications
Healthcare
Retail
Agriculture
Professional Services
Mining
Construction
Transportation
Education
Legal
Finance
Corporate Secretariat
Compliance
Tax
Treasury
Shareholder Relations
Corporate Governance
Board Secretariat
Risk Management
Chief Executive Officer
Chief Financial Officer
Company Secretary
Legal Counsel
Corporate Lawyer
Finance Director
Board Director
Managing Director
Compliance Officer
Tax Manager
Investment Manager
Corporate Governance Officer
Shareholder Relations Manager
Treasury Manager
Financial Controller
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