Share Purchase Agreement ("Shotgun" Clause)

Québec Anglais Droit civil Non annoté

Share Purchase Agreement ("Shotgun" Clause)

At the time of signing a shareholder agreement, it can be difficult to predict how the relationships between the parties will evolve. Disagreements may sometimes arise, and the only reasonable solution may be for one or more shareholders to withdraw. Triggering the withdrawal of a shareholder requires a mechanism, referred to as a "shotgun clause," which is provided in our shareholder agreement templates (see documents B02500, B02400 and B02560).

This template of an agreement to purchase shares under a "shotgun" clause should, therefore, be used to define the rights and obligations of the shareholders when exercising a dispute resolution mechanism. Accordingly, this agreement in the next step after a shareholder offers to purchase the shares of the other shareholder(s) (see our template for the offer, B03400). This agreement to purchase shares should be used when the other shareholder(s) have agreed to sell their shares to the shareholder (the buyer) who has initiated the dispute resolution mechanism.

Share Purchase Agreement ("Shotgun" Clause)

Share Purchase Agreement ("Shotgun" Clause)

RECITALS
0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Breach
0.01.03 Claim
0.01.04 Force Majeure
0.01.05 Law
0.01.06 Loss
0.01.07 Legal Representatives
0.01.08 Offer
0.01.09 Ordinary Course of Business
0.01.10 PARTY
0.01.11 Person
0.01.12 Prime Rate
0.01.13 Shareholder Agreement
0.01.14 Shares
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
1.00 PURPOSE
2.00 CONSIDERATION
3.00 TERMS OF PAYMENT
3.01 Price
3.02 Waiver of Compensation
3.03 Acknowledgement of Payment
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Resident in Canada
5.05 Commission
5.06 Nominee
5.07 Independent Legal Advice
5.08 Prospectus-exempt Transaction
5.09 Shareholder Agreement
6.00 REPRESENTATIONS AND WARRANTIES OF BUYER
7.00 REPRESENTATIONS AND WARRANTIES OF SELLERS
7.01 Issuance
7.02 Valid Title
7.03 Advances
7.04 Dividend
7.05 Business Operations
7.06 Liability
7.07 Options
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Continuation of Representations and Warranties
8.02 Indemnification
8.02.01 Scope
8.02.02 Procedure
8.02.03 Duration of Representations and Warranties
8.02.04 Limitation
8.03 Disclosure of Agreement
8.03.01 Undertaking
8.03.02 Public Announcement
8.03.03 Exception
8.03.04 Default
8.04 Further Assurances
8.05 End of Shareholder Agreement
8.06 Mutual Discharge
9.00 DUTIES AND OBLIGATIONS OF BUYER
9.01 Share Certificates
9.02 Proof of Release
9.03 Insurance Policies
10.00 DUTIES AND OBLIGATIONS OF SELLERS
10.01 Non-Competition
10.01.01 Undertaking
a) Definition
b) Scope
10.01.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.01.03 Reasonableness of Clause
10.02 Non-Solicitation of Personnel
10.02.01 Scope of Undertaking
10.02.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.03 Non-Solicitation of Clients
10.03.01 Undertaking
a) Definition
b) Scope
10.03.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.04 Joint Obligation
10.05 Resignation
10.06 Deliver
10.07 Insurance Policies
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Reasonable Cause
11.01.03 Effect of Breach
11.01.04 Exception
11.02 Force Majeure
11.02.01 Limitation on Liability
11.02.02 Duty
11.02.03 Right of Other PARTY
11.03 Relationship Between the PARTIES
12.00 GENERAL PROVISIONS
12.01 Notices
12.02 Choice of Forum
12.03 Counterparts
12.04 Amendment
12.05 No Waiver of Rights
12.06 Electronic Transmission
12.07 Language
13.00 TERMINATION
14.00 EFFECTIVE DATE
15.00 DURATION
16.00 SCOPE
16.01 PARTIES
16.02 Previous Agreements

 

SCHEDULE A – EXCERPT OF A RESOLUTION OF BUYER
SCHEDULE B – EXCERPT OF A RESOLUTION OF SELLER A[B]
SCHEDULE 0.01.08 – OFFER UNDER "SHOTGUN" CLAUSE
SCHEDULE 9.02 – RELEASE
SCHEDULE 10.01.01 A – NON-COMPETITION - ACTIVITIES
SCHEDULE 10.01.01 B – NON-COMPETITION - TERRITORY
SCHEDULE 10.03.01 A – NON-SOLICITATION - CLIENTS
SCHEDULE 10.03.01 B – NON-SOLICITATION - PRODUCTS AND SERVICES

 

Contrat d'achat d'actions (Discorde - Offre initiale)

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