Share Repurchase Agreement Example

A share repurchase agreement, also known as a buyback agreement, is a contract between a company and its shareholders that allows the company to buy back its own shares from shareholders. This agreement is a way for the company to reduce the number of outstanding shares available in the market, which can help to increase the value of the remaining shares.

Share repurchase agreements can take many different forms, depending on the specific needs of the company and the terms negotiated with shareholders. Here is an example of a share repurchase agreement that might be used by a publicly traded company:

1. Purpose

The purpose of this share repurchase agreement is to allow the company to repurchase a portion of its outstanding shares from shareholders, with the goal of increasing the value of the remaining shares.

2. Stock

The shares that will be repurchased under this agreement will be the common stock of the company, listed on the stock exchange under the ticker symbol [insert symbol].

3. Purchase Price

The purchase price for the shares will be [insert price], which represents [insert percentage] of the current market price of the shares as of [insert date]. The purchase price will be paid in cash within [insert timeline] of the completion of the share repurchase.

4. Shares Repurchased

Under this agreement, the company will repurchase a total of [insert number] shares from shareholders. The company reserves the right to repurchase additional shares in the future, subject to the terms outlined in this agreement.

5. Eligible Shareholders

All shareholders who own [insert number] or more shares of the common stock of the company are eligible to participate in this share repurchase agreement. Shares must be held on the record date established by the company, which will be [insert date].

6. Timeline

The share repurchase will take place over [insert timeframe], with the company making periodic purchases of shares from eligible shareholders. The company may terminate this agreement at any time, subject to the terms outlined in this agreement.

7. Conditions of Participation

Shareholders who wish to participate in this share repurchase agreement must submit a written notice of their intent to sell their shares to the company no later than [insert deadline]. The company reserves the right to reject any notice of intent to sell for any reason.

8. Governing Law

This share repurchase agreement will be governed by the laws of [insert state], and any disputes arising from this agreement will be resolved in accordance with the dispute resolution procedures outlined in this agreement.

In conclusion, share repurchase agreements are an effective way for companies to manage their outstanding shares and increase the value of the remaining shares. While the terms of these agreements can vary widely, the example provided here provides a general framework that can serve as a starting point for negotiations between companies and their shareholders.