Shareholders' Buy-Sell Agreement - Cross-Purchase Agreement

• Category: Corporations - Buy Sell
• State: Multi-State
• Control #: US-0723BG
• Format: Word; Rich Text

Description

This form is a cross-purchase agreement among shareholders of a close corporation. It is a purchase by surviving shareholders of interest of withdrawing or deceased shareholder. If other shareholders do not exercise the option, then the Corporation has the option. The buy and sell agreement requires that the business share is sold according to a predetermined formula to the company or the remaining members of the business. Before the interest of a deceased partner can be sold to the company or remaining partners, the deceased's estate must agree to sell. A Shareholders’ Buy-Sell Agreement, also known as a Cross-Purchase Agreement, is a legal document that defines the terms of a buy-sell agreement between shareholders in a corporation. It is used to protect the interests of the shareholders in the event of a shareholder's death, disability, retirement, or other unexpected change in ownership. The agreement establishes a predetermined price for the shares, and outlines a process for the sale of the shares in the event of the triggering events. It also establishes the terms of the buy-sell agreement, including the rights of the parties, the payment of the purchase price, and other matters related to the transfer of ownership. There are two primary types of Shareholders’ Buy-Sell Agreement— - Cross-Purchase Agreement: the Entity Purchase agreement and the Stock Redemption agreement. The Entity Purchase agreement is an agreement between the corporation or LLC and the shareholder, whereby the corporation or LLC purchases the stock of the shareholder in the event of a triggering event. The Stock Redemption agreement is an agreement between the shareholders themselves, whereby the shares are purchased from the shareholder in the event of a triggering event.

A Shareholders’ Buy-Sell Agreement, also known as a Cross-Purchase Agreement, is a legal document that defines the terms of a buy-sell agreement between shareholders in a corporation. It is used to protect the interests of the shareholders in the event of a shareholder's death, disability, retirement, or other unexpected change in ownership. The agreement establishes a predetermined price for the shares, and outlines a process for the sale of the shares in the event of the triggering events. It also establishes the terms of the buy-sell agreement, including the rights of the parties, the payment of the purchase price, and other matters related to the transfer of ownership. There are two primary types of Shareholders’ Buy-Sell Agreement— - Cross-Purchase Agreement: the Entity Purchase agreement and the Stock Redemption agreement. The Entity Purchase agreement is an agreement between the corporation or LLC and the shareholder, whereby the corporation or LLC purchases the stock of the shareholder in the event of a triggering event. The Stock Redemption agreement is an agreement between the shareholders themselves, whereby the shares are purchased from the shareholder in the event of a triggering event.