Employee Stock Repurchase Agreement

Employee Stock Repurchase Agreement - An employee stock repurchase agreement is an arrangement to which a company will sell its stock to its employees but has a claus that says the company reserves the right to purchase its shares back, under certain conditions... The conditions may vary, and will be listed in the agreement. Stocks are sold to employees sometimes through an employee purchase plan, but at a later time the company may want to purchase the shares back, at market price. There are no specific reasons that a company may do such a move. One might be to gain more control of its company and make the company more controlled by its managers other then its investors.