Share Purchase Agreement

Quebec English Civil law Unannotated Short form

Share Purchase Agreement

  1. Documents

  2. Contrat de vente d'actions Contrat de vente d'actions

    Y04500 -
    Quebec French Civil law Unannotated Long form

    $224.99

    $224.99

  3. Benchmarking Grid - Share Purchase... Benchmarking Grid - Share Purchase Agreement (Long Form)

    Y04501a -
    Quebec English Civil law Unannotated Long form

    $19.99

    $19.99

  4. Benchmarking Grid - Share Purchase... Benchmarking Grid - Share Purchase Agreement (Short Form)

    Y04551a -
    Quebec English Civil law Unannotated Short form

    $19.99

    $19.99

  5. Contrat de vente d'actions Contrat de vente d'actions

    Y04550 -
    Quebec French Civil law Unannotated Short form

    $174.99

    $174.99

  6. $19.99

  7. $19.99

  8. Share Purchase Agreement Share Purchase Agreement

    Y04550a -
    Quebec English Civil law Unannotated Short form

    $174.99

    $174.99

  9. Share Purchase Agreement Share Purchase Agreement

    Y04500a -
    Quebec English Civil law Unannotated Long form

    $224.99

    $224.99

Share Purchase Agreement

To transfer a business corporation, a purchaser must acquire at least a majority of the issued and outstanding voting shares of the business. Such shares may belong to one or more owners who agree to sell their shares for consideration. This transfer could theoretically be evidenced by simply endorsing the share certificates representing a majority of such registered holders in favour of the new owner in exchange for the agreed payment. However, when the business being sold is a private issuer, common practice usually involves signing a share purchase agreement (which can be more or less detailed, depending on the wishes of the parties).

This template has been drafted specifically for when a corporation sells its shares to a person (who is not already a shareholder) and this sale results in control being transferred to this new shareholder.

When using this template, it is important to take into consideration any laws that could affect the interpretation of certain clauses in this contract; for example, the law under which the corporation was incorporated (CBCA or QBCA), the Civil Code of Québec (concerning service agreements and mandates) and the applicable provisions of the Québec Securities Act and its regulations.

Share Purchase Agreement

It is very important to determine whether a share purchase agreement is the appropriate legal instrument for your situation. A share purchase agreement is necessary in the following situations, namely:

a) when the parties to the sale wish to avoid the complications or risks associated with an asset purchase; an asset purchase may not be the most advantageous option, because some assets can be difficult to transfer or the cost of transferring them may be prohibitive; as such, a share purchase may be a better alternative; and

b) when the buy-sell process is initiated by a letter of intent (template Y04200), rather than a detailed offer to purchase shares (template Y04270) followed by a closing certificate (template Y04600).

Share Purchase Agreement

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 CBCA
0.01.03 Closing Date
0.01.04 Corporation
0.01.05 Effective Date
0.01.06 Encumber or Encumbrance
0.01.07 Escrow Agent
0.01.08 Escrow Agreement
0.01.09 Event of Default
0.01.10 Interim Period
0.01.11 Prime Rate
0.01.12 QBCA
0.01.13 QSA
0.01.14 Subject Shares
0.01.15 Transitional Period
0.01.16 Voting and Participating Shares
0.02 Entire Agreement
0.03 Applicable Laws
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Time Limits
a) Time of the Essence
b) Delays
1.00 PURPOSE
2.00 CONSIDERATION
3.00 TERMS OF PAYMENT
3.01 Initial Instalment
3.02 Balance of Price
3.02.01 Monthly Instalments
a) Total Amount
b) Payment Schedule
c) Monthly Amounts
d) Interest
3.02.02 Post-dated Cheques
a) First Series
b) Second Series
3.03 Pre-Payment
3.04 Loss of Term
4.00 SECURITY
4.01 Placing Subject Shares in Escrow
4.02 Suretyship
4.02.01 Undertaking
4.02.02 Default
4.03 Immovable Hypothec
4.03.01 Undertaking
4.03.02 Impact of Suretyship
4.03.03 Assignment, Liquidation, Bankruptcy or Insolvency
a) Presumption
b) Effective Date of Suretyship
4.04 Jurisdiction
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Authority
5.02 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF PURCHASER
6.01 Legal Advice
6.02 Disclosure
7.00 REPRESENTATIONS AND WARRANTIES OF VENDOR
7.01 Person
7.01.01 Status
7.01.02 Authority
7.02 Subject Shares
7.02.01 Ownership
7.02.02 Encumbrances
7.02.03 Issuance
7.02.04 Assignability
7.02.05 Dividend
7.02.06 Dilution
7.03 Disclosure
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Representations and Warranties
8.02 Indemnification
8.02.01 Events
8.02.02 Threshold
8.02.03 Procedure
8.03 Disclosure of Existence of Agreement
8.03.01 Undertaking
8.03.02 Public Advertising
8.03.03 Exception
8.03.04 Default
9.00 DUTIES AND OBLIGATIONS OF PURCHASER
9.01 Closing Date
9.02 Release and Discharge
9.02.01 Time Limit
9.02.02 Compensation
9.03 Financial Statements
10.00 DUTIES AND OBLIGATIONS OF VENDOR
10.01 Closing Session
10.01.01 Return of Share Certificates
10.01.02 Receipt
10.02 Transition Period
10.02.01 Information
10.02.02 Support
10.03 Resignation
10.04 Non-Competition
10.04.01 Undertaking
10.04.02 Exclusions
a) Balance of Sale Price
b) Share Purchase
10.04.03 Changes to Scope
a) Territory
b) Duration
10.04.04 Penalty
a) Amount
b) Reduction of Sale Price of Subject Shares
c) Preventive Remedies
10.04.05 Reasonableness of Clause
10.05 Non-Solicitation
10.05.01 Personnel
a) Scope
b) Penalty
i) Automatic Penalty
ii) Payment of Penalty
iii) Preventive Remedies
10.05.02 Clients
a) Scope
b) Penalty
i) Automatic Penalty
ii) Payment of Penalty
iii) Preventive Remedies
10.06 Release
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Exception
11.01.03 Effect of Breach
11.02 Encumbrance
11.02.01 Prohibition
11.02.02 Effect of Breach
12.00 GENERAL PROVISIONS
12.01 Dispute Resolution
12.01.01 Good Faith Negotiations
12.01.02 Mediation
12.01.03 Arbitration
12.02 Counterparts
12.03 Election
12.04 Amendment
13.00 TERMINATION
13.01 With Notice (Event of Default)
13.01.01 Opening
13.01.02 Share Certificates
13.01.03 Amount Collected
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Transfer of Ownership
15.02 Survival
16.00 SCOPE



SCHEDULE A – EXCERPT OF A RESOLUTION OF PURCHASER
SCHEDULE B – EXCERPT OF A RESOLUTION OF SURETY
SCHEDULE 0.01.06 – ENCUMBRANCES
SCHEDULE 0.01.08 – ESCROW AGREEMENT
SCHEDULE 3.02.01 – MONTHLY PAYMENT SCHEDULE
SCHEDULE 4.02.01 – SURETYSHIP AGREEMENT
SCHEDULE 7.02.04 – EXCERPT OF A RESOLUTION AUTHORIZING TRANSFER
SCHEDULE 10.04.01 – NON-COMPETITION (INCL. GOODS AND SERVICES)
SCHEDULE 10.05.02 – NON-SOLICITATION OF CLIENTS (INCL. GOODS AND SERVICES)





  1. Documents

  2. Contrat de vente d'actions Contrat de vente d'actions

    Y04500 -
    Quebec French Civil law Unannotated Long form

    $224.99

    $224.99

  3. Benchmarking Grid - Share Purchase... Benchmarking Grid - Share Purchase Agreement (Long Form)

    Y04501a -
    Quebec English Civil law Unannotated Long form

    $19.99

    $19.99

  4. Benchmarking Grid - Share Purchase... Benchmarking Grid - Share Purchase Agreement (Short Form)

    Y04551a -
    Quebec English Civil law Unannotated Short form

    $19.99

    $19.99

  5. Contrat de vente d'actions Contrat de vente d'actions

    Y04550 -
    Quebec French Civil law Unannotated Short form

    $174.99

    $174.99

  6. $19.99

  7. $19.99

  8. Share Purchase Agreement Share Purchase Agreement

    Y04550a -
    Quebec English Civil law Unannotated Short form

    $174.99

    $174.99

  9. Share Purchase Agreement Share Purchase Agreement

    Y04500a -
    Quebec English Civil law Unannotated Long form

    $224.99

    $224.99