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Shareholder Exit Agreement
"I need a Shareholder Exit Agreement for a minority shareholder leaving our tech startup, selling 15% shareholding to existing shareholders, with strict non-compete provisions and payment in installments over 12 months starting March 2025."
1. Parties: Identification of all parties to the agreement including the exiting shareholder(s) and remaining shareholders
2. Background: Context of the exit, including current shareholding structure and reason for exit
3. Definitions: Key terms used throughout the agreement
4. Share Transfer Terms: Details of shares being transferred, price, and payment terms
5. Completion Mechanics: Process and timeline for completing the exit
6. Warranties and Representations: Standard warranties regarding share ownership and authority to sell
1. Non-Compete Provisions: Restrictions on future competitive activities, used when protecting business interests from exiting shareholder with significant knowledge
2. Good Leaver/Bad Leaver Provisions: Different treatment based on circumstances of exit, applicable when shareholder is also an employee
3. Continuing Obligations: Ongoing responsibilities post-exit, used when there are lasting commitments or liabilities
1. Share Transfer Form: Standard form for executing the transfer
2. Valuation Report: Independent valuation of shares (if applicable)
3. Resignation Letters: Template letters for resignation from directorship or other positions
4. Tax Clearances: Required tax clearances or confirmations from relevant authorities
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