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Stockholders' Redemption Agreement
Free stock redemption agreement template — a corporation buys back shares from one or more of its own stockholders.
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This free stockholders' redemption agreement covers 1. Redemption, 2. Payment, 3. Board Approval and Legality, 4. Delivery of Shares, 5. Release with 7 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Stockholders' Redemption Agreement
Company: [Company Name] · Redeeming Stockholder: [Name] · Date: [Date]
1. Redemption
Company agrees to redeem (repurchase) [Number] shares of [Class/Series] stock from Stockholder, representing [%] of Stockholder's holdings, for a redemption price of [Amount] [Amount per share].
2. Payment
Payment will be made [in full at closing / in installments per the schedule in Exhibit A, evidenced by a promissory note].
3. Board Approval and Legality
This redemption has been approved by Company's Board of Directors and complies with applicable state law restrictions on stock redemptions (i.e. the redemption does not render Company insolvent or violate statutory capital surplus requirements).
4. Delivery of Shares
Stockholder will deliver the stock certificate(s) (or comply with book-entry transfer procedures), duly endorsed, upon receipt of payment.
5. Release
Upon completion of the redemption, Stockholder releases Company, its officers, and directors from any claims related to their status as a stockholder, except as otherwise provided in this Agreement.
6. Remaining Rights (if partial redemption)
[If Stockholder retains some shares: confirm any remaining rights under a shareholders' agreement continue to apply to the retained shares.]
7. Tax Treatment
[Note that the parties intend this transaction to be treated for tax purposes as [a sale/exchange or a dividend, as applicable under IRC Section 302], and each party should consult their own tax advisor.]
Company: ______________________ Date: ____________ Stockholder: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal or tax advice. Most states legally prohibit a corporation from redeeming stock if doing so would make it insolvent or impair its capital below required levels (Section 3) — this isn't just good practice, it's a real legal limit that can make an otherwise-agreed redemption void if the company's finances don't support it.*
Edit directly in the box above. Download PDF anytime — the docstoc.io footer is always included and cannot be removed.
What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 7 standard sections: 1. Redemption, 2. Payment, 3. Board Approval and Legality, 4. Delivery of Shares, 5. Release, 6. Remaining Rights (if partial redemption), …
- 7 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Informal lending & reimbursements
Money changing hands between people or a business and its team, without a bank's paperwork.
FAQ
Is this stockholders' redemption agreement template really free?
Yes — this Stockholders' Redemption Agreement template on docstoc is free to view, edit online, and download as a PDF with no account or signup required.
What does this stockholders' redemption agreement cover?
This finance template includes 1. Redemption, 2. Payment, 3. Board Approval and Legality, 4. Delivery of Shares. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. This covers the standard structure, not the interest-rate limits, disclosure requirements, or tax implications that can apply depending on your state and the amount involved. Check those specifics with an accountant or financial attorney before you rely on it.
Can I edit the wording?
Yes. All 7 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.
Where can I find more free templates like this?
Browse more free finance and related document templates in the docstoc library at /document-templates/.
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