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Stock Redemption Agreement
"Need a Stock Redemption Agreement for our Singapore-based technology company to buy back 25,000 shares from a retiring founder by March 2025, with payment to be made in three installments over 18 months."
1. Parties: Identification of the company and selling shareholders
2. Background: Context of the redemption and current shareholding structure
3. Definitions: Key terms used throughout the agreement
4. Redemption Terms: Number of shares, price, and payment terms
5. Conditions Precedent: Requirements to be met before redemption
6. Completion Mechanics: Process and timing of the redemption
7. Representations and Warranties: Standard assurances from both parties
8. Governing Law and Jurisdiction: Application of Singapore law and dispute resolution
1. Tag-Along Rights: Used when other shareholders have rights to participate in the redemption
2. Earn-out Provisions: When redemption price includes future performance elements
3. Non-Competition: Required when selling shareholders need to be restricted post-redemption
4. Tax Indemnities: When specific tax arrangements need to be addressed
1. Share Details: Details of shares being redeemed including share certificates
2. Completion Requirements: Checklist of documents and actions required at completion
3. Board Resolutions: Required corporate approvals
4. Calculation of Redemption Price: Formula or method for determining share value
5. Solvency Statement: Directors' statement confirming company solvency post-redemption
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