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Free Corporate Legal Forms page - Stock Redemption Agreement

STOCK REDEMPTION AGREEMENT
THIS AGREEMENT, made and entered into this _____(1)______ day of ______(2)
_____, _____(3)______, is by and between _______(4)_________, hereinafter referred to as the
"Seller", and _______(5)_________, hereinafter referred to as the "Purchaser".
W I T N E S S E T H:
WHEREAS, the Seller is the owner and holder of record of ____(6)____ (______) shares
of the issued and outstanding shares of the capital stock of the Purchaser; and,
WHEREAS, the Purchaser desires to repurchase said ____(7)____ (______) shares of
said stock, hereinafter referred to as the "Sellers Stock", and the Seller desires to sell, or cause
to be sold, all of said shares of stock upon the terms and subject to the conditions hereinafter set
forth.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements contained in this Agreement, and in order to consummate the purchase and sale of
the Seller's Stock aforementioned, it is hereby agreed as follows:
1. PURCHASE AND SALE: CLOSING
A. Purchase and Sale of Corporation's Stock. Subject to the terms and conditions
hereinafter set forth, at the closing of the transaction contemplated hereby, the Seller shall sell,
convey and transfer the Seller's Stock, and deliver to the Purchaser certificates representing such
stock, and the Purchaser shall purchase from the Seller the Seller's Stock in consideration of the
purchase price set forth in Section Two of this Agreement. The certificates representing the
Corporations' Stock shall be duly endorsed for transfer or accompanied by appropriate stock
transfer powers duly executed in blank, in either case with signatures guaranteed in the
customary fashion.
B. Procedure for Closing. The closing of the transactions contemplated by this
Agreement (the "Closing"), shall be held at such place as is agreed upon by the parties hereto on
or before the _(8)_ day of _____(9)____, ____(10)_____, (such date to be referred to in this
Agreement as the "Closing Date").
2. PURCHASE PRICE
A. Consideration. The total consideration for the purchase of the Seller's Stock,
pursuant to this Agreement, shall be the total sum of ______(11)______ ($___________).
3. REPRESENTATIONS AND WARRANTIES OF SELLER
Seller warrants and represents:
A. Restrictions on Stock.
1) The Seller is not a party to any agreement, written or oral, creating rights in respect of
any Seller's Stock in any third person or relating to the voting of Seller's Stock.
2) Seller is the lawful owner of Seller's Stock, free and clear of all security interest, liens,
encumbrances, equities and other charges.
3) There are no existing warrants, options, stock purchase agreements, restriction of
any nature, relating to the subject Seller's Stock.
B. Survival. All warranties contained within this Agreement shall survive closing of this
transaction.
4. GENERAL
A. Each of the parties to this Agreement covenants and agrees that the Seller's
representations, warranties, covenants and statements and agreements contained in this
Agreement shall survive the Closing Date. Except as set forth in this Agreement, there are no
other agreements, representations, warranties or covenants by or between the parties hereto
with respect to the subject matter hereof.
B. This Agreement constitutes the entire Agreement and supersedes all prior
agreements and understandings, oral and written, between the parties hereto with respect to the
subject matter hereof.
C. This Agreement shall be construed and enforced in accordance with the laws of the
State of _____(12)_____.
D. Should Seller default under this Agreement, Purchaser may be able to seek and
obtain any and all remedies available at law or in equity, including rescission of this Agreement.
Purchaser shall have the right to obtain all remedies cumulatively available and will not be limited
to one such remedy.
E. Should either party default under this Agreement, the party enforcing this Agreement
shall be entitled to reimbursement of all costs, including reasonable attorneys' fees incurred at
the trial and appellate levels.
IN WITNESS WHEREOF, this Agreement has been executed by each of the individual
parties hereto, all on the date first above written.
Signed, Sealed and Delivered in the presence of:
"SELLER"
__________(13)_______________ ____________(14)_____________
__________(13)_______________
DATED:________(15)__________
"PURCHASER"
___________(16)______________ ___________(17)_____________
___________(16)______________

NOTICE
The information in this document is designed to provide an outline that you can follow
when formulating business or personal plans. Due to the variances of many local, city, county
and state laws, we recommend that you seek professional legal counseling before entering into
any contract or agreement.