When buying back an employee`s shares, the real problem is the buyback price. California law prevents a company from withdrawing an employee`s shares for free. Here you have two options: (1) pay the initial purchase price of the share or (2) pay the current market fair value of the share at the time of redemption. Assuming the business will grow and gain value, the initial purchase price at the time of the buyout should be lower than FMV….