Delaware Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse

• Category: Contracts - Buy Sell - Stock Purchases
• State: Multi-State
• Control #: US-0391BG
• Format: Word; Rich Text

Description

This type of stock purchase and transfer agreements may be between the corporation and the shareholders. Such an agreement is also referred to as a redemption agreement. If this type of agreement is among the shareholders, it is often referred to as a cross purchase agreement. Delaware Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a legal document that outlines the terms and conditions of stock transfer or sale between shareholders within a close corporation based in Delaware while involving the agreement of a spouse. This agreement protects the interests of shareholders and ensures a smooth transition of ownership in the event of various trigger events such as death, disability, retirement, divorce, or voluntary sale. Keywords: 1. Delaware Shareholders Buy Sell Agreement: This agreement pertains to shareholders' rights and obligations regarding the purchase and sale of their stock in a Delaware corporation. 2. Stock in a Close Corporation: Refers to the ownership shares held by individuals within a closely held corporation, often where the number of shareholders is limited and the shares are not publicly traded. 3. Agreement of Spouse: In this context, it refers to the requirement for the spouse of a shareholder to consent or comply with certain provisions outlined in the buy-sell agreement. 4. Trigger Events: These events include death, disability, retirement, divorce, or voluntary sale, and trigger pre-determined conditions for the transfer or sale of shares. 5. Transfer or Sale: The buy-sell agreement may involve either the transfer of shares between shareholders or the sale of shares to another shareholder, the corporation, or a third-party buyer. 6. Ownership Transition: Refers to the process of transferring ownership and control of stock in a close corporation, ensuring the continuity of business operations and safeguarding shareholders' interests. 7. Shareholder Protections: The agreement includes provisions that protect the financial interests of shareholders and contain rules for fair valuation of stock, rights of first refusal, restrictions on transfer, and buyout options. 8. Delaware Corporation: Signifies that the close corporation is incorporated under the laws and regulations of the State of Delaware, which offers favorable business laws and a well-established judicial system for corporate matters. Different Types of Delaware Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse: 1. Cross-Purchase Agreement: Shareholders agree to purchase the shares of a departing shareholder directly from them or their estate. Each shareholder holds separate agreements with other shareholders, ensuring an individualized approach to the buy-sell process. 2. Redemption Agreement: In the event of a trigger event, the corporation agrees to redeem the shares from the departing shareholder, becoming the buyer and subsequently canceling or holding the stock as treasury shares. 3. Hybrid Agreement: This type combines elements of both cross-purchase and redemption agreements, providing flexibility in choosing the buyer based on specific circumstances and preferences. 4. Spousal Consent Agreement: In situations where shares are jointly owned by the spouse of a shareholder, this additional agreement ensures that the spouse also consents to the transfer or sale of stock and abides by the terms outlined in the main buy-sell agreement. (Note: The specific types may vary based on the intricacies of the agreement and the preferences of the parties involved. These examples provide a general overview.)

Delaware Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a legal document that outlines the terms and conditions of stock transfer or sale between shareholders within a close corporation based in Delaware while involving the agreement of a spouse. This agreement protects the interests of shareholders and ensures a smooth transition of ownership in the event of various trigger events such as death, disability, retirement, divorce, or voluntary sale. Keywords: 1. Delaware Shareholders Buy Sell Agreement: This agreement pertains to shareholders' rights and obligations regarding the purchase and sale of their stock in a Delaware corporation. 2. Stock in a Close Corporation: Refers to the ownership shares held by individuals within a closely held corporation, often where the number of shareholders is limited and the shares are not publicly traded. 3. Agreement of Spouse: In this context, it refers to the requirement for the spouse of a shareholder to consent or comply with certain provisions outlined in the buy-sell agreement. 4. Trigger Events: These events include death, disability, retirement, divorce, or voluntary sale, and trigger pre-determined conditions for the transfer or sale of shares. 5. Transfer or Sale: The buy-sell agreement may involve either the transfer of shares between shareholders or the sale of shares to another shareholder, the corporation, or a third-party buyer. 6. Ownership Transition: Refers to the process of transferring ownership and control of stock in a close corporation, ensuring the continuity of business operations and safeguarding shareholders' interests. 7. Shareholder Protections: The agreement includes provisions that protect the financial interests of shareholders and contain rules for fair valuation of stock, rights of first refusal, restrictions on transfer, and buyout options. 8. Delaware Corporation: Signifies that the close corporation is incorporated under the laws and regulations of the State of Delaware, which offers favorable business laws and a well-established judicial system for corporate matters. Different Types of Delaware Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse: 1. Cross-Purchase Agreement: Shareholders agree to purchase the shares of a departing shareholder directly from them or their estate. Each shareholder holds separate agreements with other shareholders, ensuring an individualized approach to the buy-sell process. 2. Redemption Agreement: In the event of a trigger event, the corporation agrees to redeem the shares from the departing shareholder, becoming the buyer and subsequently canceling or holding the stock as treasury shares. 3. Hybrid Agreement: This type combines elements of both cross-purchase and redemption agreements, providing flexibility in choosing the buyer based on specific circumstances and preferences. 4. Spousal Consent Agreement: In situations where shares are jointly owned by the spouse of a shareholder, this additional agreement ensures that the spouse also consents to the transfer or sale of stock and abides by the terms outlined in the main buy-sell agreement. (Note: The specific types may vary based on the intricacies of the agreement and the preferences of the parties involved. These examples provide a general overview.)