This offer to purchase shares template allows a party to offer all or part of the shares that party holds in the corporation. If all the essential elements of the transactions are set out in the offer, it will bind both parties once the offer is accepted by the beneficiary.

When a business becomes a corporation, the transfer can be made through either the sale of the business assets (see templates in section "Y02") or at least a majority of the issued and outstanding voting shares of the corporation to a new buyer.

We recommend using this template as part of a proposed acquisition, when the offeror wants the offeree to be able to immediately accept the contractual terms of the offer, thereby reducing the risk that the transaction will be aborted should a disagreement arise regarding any unspecified term.

Transferring a business through an assignment of shares usually proceeds in one of two ways. The first, through a simple letter of intent (see template Y04200) summarizing the main aspects of the transaction, but without binding the parties, followed by a share purchase agreement (see template Y04500 or Y04550) setting out all the details of the terms of the share purchase. The second way is through a version detailed offer to purchase shares (this template) followed by a closing certificate (template Y04600) and the execution of all accessory documents required to complete the transaction.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Accounts Receivable
0.01.03 Adverse Event
0.01.04 Affiliates
0.01.05 Articles
0.01.06 Best Efforts
0.01.07 Breach
0.01.08 CBCA
0.01.09 Clients
0.01.10 Closing Date
0.01.11 Collateral Agreement
0.01.12 Confidential Information
0.01.13 Control
0.01.14 Corporation
0.01.15 Directors
0.01.16 Effective Date
0.01.17 Employees
0.01.18 Encumber or Encumbrance
0.01.19 Equipment
0.01.20 Force Majeure
0.01.21 Hazardous Materials
0.01.22 ICT Assets
0.01.23 Immovable
0.01.24 Intellectual Property
0.01.25 Interim Period
0.01.26 Key Persons
0.01.27 Law
0.01.28 Lease
0.01.29 Legal Representatives
0.01.30 Loss
0.01.31 Offer
0.01.32 Ordinary Course of Business
0.01.33 Person
0.01.34 Prime Rate
0.01.35 Products
0.01.36 QBCA
0.01.37 Related Person
0.01.38 Rolling Stock
0.01.39 Services
0.01.40 Shares
0.01.41 Subsidiary
0.01.42 Transaction
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Presumptions
0.05.09 Knowledge
0.05.10 Approval
0.05.11 Accounting Standards
1.00 PURPOSE
1.01 Offer to Purchase
1.02 Conditions Precedent
1.03 Election by OFFEROR
2.00 CONSIDERATION
2.01 Price
2.02 Adjustments
2.02.01 Operating Income
2.02.02 Shareholders’ Equity
3.00 TERMS OF PAYMENT
3.01 Deposit
3.01.01 Escrow
3.01.02 Instructions
3.01.03 Return
3.02 Initial Instalment
3.03 Balance of Price
3.03.01 Monthly Instalments
a) Total Amount
b) Payment Schedule
c) Interest
3.04 Prepayment
3.05 Promissory Note
3.05.01 Remittance
3.05.02 Scope
3.06 Claims by a Third Party
3.07 Acceleration
4.00 SECURITY
4.01 In Favour of OFFEROR
4.02 In Favour of BENEFICIARY
4.02.01 Solidarity
4.02.02 Movable Hypothec With Delivery
4.02.03 Shares Placed in Escrow
4.02.04 Other Rights
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Canadian Status
5.06 Exempt Transaction
5.07 Commission
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF OFFEROR
6.01 Nominee
6.02 Financing
7.00 REPRESENTATIONS AND WARRANTIES OF BENEFICIARY
7.01 Person
7.01.01 Status
7.01.02 Insolvency
7.01.03 Conduct
7.02 Shares
7.02.01 Ownership
7.02.02 Encumbrances
7.02.03 Issue and Transfer
7.02.04 Assignability
7.02.05 Dividend
7.02.06 Dilution
7.03 Corporation
7.03.01 Status
7.03.02 Authorized and Issued Capital
7.03.03 Books and Records
7.04 Shareholders
7.05 General Compliance
7.05.01 Applicable Laws
7.05.02 Knowledge
7.06 Subsidiaries and Affiliates
7.06.01 Chart
7.06.02 Knowledge
7.07 Human Resources
7.07.01 Labour Standards
7.07.02 Occupational Health and Safety
7.07.03 Collective Bargaining Agreement
7.07.04 Pension and Other Plans
7.07.05 Strike or Lock-out
7.07.06 Pay Equity
7.07.07 Key Persons
7.07.08 Resignation
7.08 Corporate Finance
7.08.01 Financing Agreements and Instruments
7.08.02 Leasing Agreements
7.08.03 Adverse Event
7.08.04 No Conflict or Breach
7.08.05 Due and Payable
7.09 Financial Matters
7.09.01 Financial Statements
7.09.02 Financial Position
7.09.03 Guarantees and Security
7.09.04 Accounting Method
7.09.05 Advances
7.09.06 Release
7.10 Tax Matters
7.10.01 Income Tax
7.10.02 Filing
7.10.03 Default
7.10.04 Deductions and Remittance
7.11 Valid Title
7.11.01 Immovables
7.11.02 Leases
7.12 Real Estate Transactions
7.13 Procurement
7.13.01 Equipment
a) Ownership
b) Condition
c) Maintenance and Warranties
d) Encumbrance
7.13.02 Supply Agreements
7.13.03 Suppliers
7.13.04 Raw Materials
7.14 Operations
7.14.01 Clients
7.14.02 Finished Products
7.14.03 Warranties
a) List
b) Claims
7.14.04 Product Recalls
7.14.05 Business Operations
7.14.06 Discriminatory Practices
7.14.07 Conduct
7.14.08 Related Person
7.15 Permits and Licenses
7.15.01 List
7.15.02 Situation
7.15.03 Good Standing
7.15.04 No Restrictions
7.16 Public Contracts
7.16.01 Admissibility
7.16.02 RENA (Registre des entreprises non admissibles aux contrats publics)
7.16.03 Register of the DGEQ (Directeur général des élections du Québec)
7.16.04 Authorization from AMF
7.16.05 Revenu Québec Certificate
7.16.06 Unsatisfactory Performance
7.17 Environmental Matters
7.17.01 Environmental Laws
7.17.02 Hazardous Materials
7.17.03 Compliance
7.17.04 Place of Business
7.17.05 Notice of Default
7.18 Intellectual Property
7.18.01 List
7.18.02 Entitlement
7.18.03 Claims
7.18.04 Transaction
7.18.05 Copyright
7.18.06 Authorizations
7.18.07 Trademarks
a) Right to Register
a) No Confusion
7.18.08 Patents
7.18.09 Trade Secrets/Know-how
7.19 ICT Assets
7.19.01 Good Working Order
7.19.02 Software
7.19.03 Domain Names
7.20 Advertising and Promotions
7.20.01 List
7.20.02 Compliance
7.21 Marketing
7.21.01 List
7.21.02 Trade Practices
7.21.03 Consumer Protection
7.21.04 E-commerce
7.22 Customer Credit
7.22.01 Accounts Receivable
7.22.02 Consignment
7.23 Insurance
7.23.01 List of Policies
7.23.02 Coverage
7.23.03 Good Standing
7.23.04 Claims
7.24 Legal Proceedings
7.25 Limitation Periods
7.25.01 Tax Matters
7.25.02 Other Matters
7.25.03 Undertaking
7.25.04 Fraud
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Representations and Warranties
8.02 Confidential Information
8.02.01 Undertaking
8.02.02 Duration of Undertaking
8.02.03 Transaction not Concluded
a) Request for Return
b) Destruction
8.02.04 Penalty
8.03 Indemnification
8.03.01 Threshold
8.03.02 Scope
8.03.03 Procedure
8.04 Disclosure of Existence of Offer
8.04.01 Undertaking
8.04.02 Public Announcement
8.04.03 Exception
8.04.04 Default
9.00 DUTIES AND OBLIGATIONS OF OFFEROR
9.01 Conditions
9.02 Continuous Disclosure
9.03 Closing Date
9.04 Release and Discharge
9.04.01 Deadline
9.04.02 Indemnification
9.05 Financial Statements
10.00 DUTIES AND OBLIGATIONS OF BENEFICIARY
10.01 Prior to Closing Date
10.01.01 Access to Documents
a) Due Diligence
b) Non-Compliance
10.01.02 Breach of Representations and Warranties
a) Annulment
b) Return of Deposit
10.01.03 Encumbrances
10.01.04 Conduct of Business
10.02 After Closing Date
10.03 Transition Period
10.03.01 Continuous Disclosure
10.03.02 Support
10.04 Non-Competition
10.04.01 Scope
10.04.02 Exclusions
a) Balance of Purchase Price
b) Share Purchase
10.04.03 Changes to Scope
a) Territory
b) Duration
10.04.04 Penalty
a) Amount
b) Payment
c) Reduction of Purchase Price
d) Protective Measures
10.04.05 Assignment of Rights
10.04.06 Reasonableness of Clause
10.05 Non-Solicitation
10.05.01 Personnel
a) Scope of Undertaking
b) Penalty
i) Automatic Penalty
ii) Payment
iii) Protective Measures
10.05.02 Clients
a) Scope of Undertaking
b) Penalty
i) Automatic Penalty
ii) Payment
iii) Protective Measures
10.06 Release
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.02 Force Majeure
11.02.01 Limitation of Liability
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Drafting Costs
11.04 Further Assurances
11.05 Remedies
11.05.01 Election
11.05.02 No Limitations
11.06 Closing Session
11.06.01 Place
11.06.02 Time Limit to Accept
11.07 Taking of Inventory
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
a) Written Notice
b) Meeting
c) Legal Proceedings
d) Protective Measures
12.02.02 Mediation
a) Process
b) Mediator
c) Settlement
d) Legal Proceedings [OR Arbitration]
12.02.03 Arbitration
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Confidentiality
e) Hearing
f) Ruling
g) Costs
h) Supplementary Rules
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 REVOKING ACCEPTANCE OF OFFER
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Expiry Date
15.02 Survival
16.00 SCOPE




SCHEDULE A – EXERPT OF A RESOLUTION OF OFFEROR
SCHEDULE B – EXERPT OF A RESOLUTION OF BENEFICIARY
SCHEDULE 0.01.05 – ARTICLES OF THE CORPORATION
SCHEDULE 0.01.18 – ENCUMBER / ENCUMBRANCE
SCHEDULE 0.01.19 – EQUIPMENT
SCHEDULE 0.01.23 – IMMOVABLE
SCHEDULE 0.01.26 – INTELLECTUAL PROPERTY
SCHEDULE 0.01.28 - LEASE
SCHEDULE 0.01.38 – ROLLING STOCK
SCHEDULE 3.05 – PROMISSORY NOTE
SCHEDULE 4.02.02 – MOVABLE HYPOTHEC WITH DELIVERY
SCHEDULE 7.01.01 – OFFEROR’S CERTIFICATE OF COMPLIANCE
SCHEDULE 7.02.04 – EXCERPT OF A RESOLUTION AUTHORIZING TRANSFER
SCHEDULE 7.03.01 – BENEFICIARY’S CERTIFICATE OF COMPLIANCE
SCHEDULE 7.06.01– CHART (SUBSIDIARIES AND AFFILIATES)
SCHEDULE 7.07.04 – PENSION AND INCENTIVE PLANS
SCHEDULE 7.08.01 – FINANCING AGREEMENTS AND INSTRUMENTS
SCHEDULE 7.08.02 – LEASING AGREEMENTS
SCHEDULE 7.09.01 – FINANCIAL STATEMENTS
SCHEDULE 7.13.02 – SUPPLY AGREEMENTS
SCHEDULE 7.14.03 – WARRANTIES (PRODUCTS / SERVICES)
SCHEDULE 7.15.01 – PERMITS AND LICENSES
SCHEDULE 7.16.06 – UNSATISFACTORY PERFORMANCE
SCHEDULE 7.20.01 – ADVERTISING AGREEMENTS
SCHEDULE 7.21.01 – MARKETING AGREEMENTS
SCHEDULE 7.23.01 – INSURANCE POLICIES
SCHEDULE 7.23.04 – CLAIMS
SCHEDULE 10.04.01 – PRODUCTS AND SERVICES
SCHEDULE 10.05.02 – CLIENTS