When a company wants to buy back shares from its shareholders, it typically uses a share purchase agreement buyback. This agreement outlines the terms under which the company will repurchase the shares, ensuring that both parties are protected and the transaction is legally binding.

A share purchase agreement buyback typically includes the following:

1. Purchase Price: The purchase price is the price at which the company will buy the shares. This price is often negotiated between the company and the shareholder, and can be based on a number of factors, including the current market value of the shares, the financial performance of the company, and the shareholder`s expectations.

2. Payment Terms: The payment terms outline how the company will pay for the shares. This can be in the form of cash, stocks, or other assets.

3. Conditions: The conditions section outlines any conditions that must be met before the transaction can be completed. This can include regulatory approvals, shareholder approval, or other legal requirements.

4. Warranties and Representations: The warranties and representations section includes statements made by the company and the shareholder about the shares being sold. This ensures that both parties are aware of any potential risks or liabilities associated with the shares.

5. Indemnification: The indemnification clause outlines who is responsible for any damages or losses that may occur as a result of the transaction. This can include legal fees, fines, and other costs associated with the sale of the shares.

A share purchase agreement buyback is an important legal document that ensures that both the company and the shareholder are protected during a share buyback. By using this agreement, companies can ensure that they are able to repurchase shares at fair prices and shareholders can rest assured that their rights and interests are being protected.