Employee Stock Redemption Agreement

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This Employee Shareholder Redemption Agreement is used when a shareholder/employee desires to severe their relationship with a corporation and redeem all shares.

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For Immediate Download

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This Employee Shareholder Redemption Agreement sets forth that an employee-shareholder (or director-shareholder) desires to sever his/her relationship with the corporation and that the corporation will redeem all shares owned by the shareholder. This agreement sets forth the number of shares owned by shareholder, redemption price for the shares and how payment will be made to the shareholder. It also includes the redemption price for the shares, and that shareholder's salary may be adjusted and date and location of the transaction closing.

This Employee Shareholder Redemption Agreement contains the following provisions:
  • Parties: Spells out the name of the corporation and the employee shareholder who desires to redeem his or her shares;
  • Recitals: Sets forth the number of shares owned by the shareholder, that corporation desires to redeem the shares and that all shareholders consented to the stock redemption at an annual meeting of shareholders;
  • Redemption Price: Exact redemption price which represents a percentage of the net book value and net book income of the corporation for a specific month (copy of balance sheet will be incorporated as an exhibit to this agreement);
  • Payment to Shareholder: Sets forth that shareholder will be paid by the assignment and transfer of certain receivables and any balance will be paid in cash. Optional provisions about adjustment of price or salary are included in this agreement;
  • Signature: The corporation and shareholder must sign this agreement.

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This attorney-prepared packet contains:
  1. General Information
  2. Instructions and Checklist
  3. Employee Shareholder Redemption Agreement
State Law Compliance: This form complies with the laws of all states
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
Number of Pages7
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#43634
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.

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