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Selling Your Business - Structuring Earnouts and Deferred Payment Plans
This free article will guide you through the issues to consider if the sale of your business has an earn-out component or a deferred payment (seller financing) option, including:
- how much money the buyer should put in,
- negotiating an interest rate,
- securing the unpaid balance of the purchase price,
- considering rights of setoff,
- determining a reasonable payout timetable, and the consequences for missing a milestone,
- determining how profits will be used,
- planning for unforeseen events (death, disability, default).
Download a copy of Selling Your Business - Structuring Earnouts and Deferred Payment Plans to help you with your exit strategy.
$0.00
Ontario Security Agreement for Shareholder Loan
Secure repayment of a loan from a shareholder to a corporation with this Ontario Security Agreement for Shareholder Loan.
- The corporation (as borrower) grants the secured party (a trustee for the shareholders) a security interest over the borrower's corporate assets, in order to secure its current or future indebtedness to its shareholders for shareholder advances, stock dividends or other obligations.
- The secured party holds the security interest in trust for the shareholders and may release all or part of the secured collateral as it sees fit.
- The borrower is restricted from selling, transferring, leasing or otherwise disposing of any of the collateral forming the security.
- This legal agreement template is available as a fully editable Microsoft Word document.
- Intended for use only in the Province of Ontario, Canada.
$29.99
Ontario Share Purchase Agreement and Assignment of Shareholder Loans
Sell the shares of an Ontario corporation and transfer any existing shareholder loans with this Share Purchase and Assignment Agreement.
- The seller sells its shares and assigns the balance of shareholder loans still outstanding over to the buyer, who is taking over the business of the company.
- The purchase price will be allocated between the shares and the shareholder loans, at fair market value.
- The buyer is at liberty to contact customers, suppliers and employees to notify them of the change of control. The seller will operate the business until closing.
- The parties will each file any required tax elections with respect to the transaction.
- This template is available as a downloadable and fully customizable MS Word document.
- Intended for use only in the Province of Ontario, Canada.
$46.99