Products tagged with 'shotgun buy-sell clauses'

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Shareholder Agreement with Put Option | Canada

This is a Canadian legal form which can be used anywhere in Canada except Quebec.
The Shareholder Agreement establishes the obligations of the shareholders and the corporation to each other, and sets out any restrictions on share transfers or the issue of new shares.
The remaining shareholders have a right of first refusal to acquire the shares of a departing shareholder, before the shares can be offered to a third party.
A departing shareholder also has a buy-sell or 'put' option, which would require the remaining shareholders to purchase his/her shares. The put option is available only after the departing shareholder has been unsuccessful in finding a third party purchaser for a period of 6 months.
The template contains buy-sell options for both an assured buy-out and a mandatory or 'shotgun' buy-sell.
If a shareholder dies, the surviving shareholders have the option to buy the deceased shareholder's shares, failing which they must be purchased by the corporation.
The Shareholder Agreement can serve to avoid unnecessary conflict by having the owners agree on management issues and exit strategies at the outset.

$29.99

The shotgun provision gives a shareholder the right to offer to purchase the shares held by the other shareholders at a specified price. If they do not accept the offer, the offering party must sell its shareholdings to the remaining shareholders.
These buy-sell provisions set out:
- the procedure to be followed by a shareholder when making an offer to purchase the other shareholders' interests,
- the terms on which any offer to purchase or offer to sell must be made,
- the rights and remedies available to the non-defaulting party upon default by either the purchaser or the seller.
This template is available as a downloadable MS Word file.

$6.29

The partners agree not to compete with the partnership's business.
The partnership's business will be run by a management committee appointed by the partners.
Each partner has a right of first refusal to acquire the partnership interest of a departing partner.
A partner wishing to withdraw may issue a mandatory shotgun buy-sell notice to the other partners.
Upon the death of a partner, the surviving partner(s) must purchase the interest of the deceased partner, with the buy-out funded by life insurance policies purchased on each of the principals.
If a partner becomes disabled and unable to continue, the remaining partner(s) will have the option to wind up the partnership or buy out the disabled partner's interest.
This legal agreement template is a generic form which can be easily modified to include provisions required by the laws in your area.

$29.99

Triggering events include:
- right of first refusal;
- default buy-sell;
- shotgun or forced sale;
- transfer on death.
Available as a PDF download.

$0.00

The Agreement includes:
- a procedure for soliciting offers from third parties;
- the remaining shareholders have right of first refusal to purchase shares of a departing shareholder;
- the remaining shareholders have the right to piggyback the sale of their shares onto a proposed sale of more than 50% of the shares;
- a mandatory (shotgun) buy-sell;
- a mandatory buyout on death, to be funded by proceeds of a life insurance policy on the life of the deceased shareholder.
This template is available in MS word format and is easy to customize to fit your circumstances.
Intended to be used only in the Province of Ontario, Canada.

$29.99