Mississippi Buy Sell or Stock Purchase Agreement Covering Common Stock in Closely Held Corporation with Option to Fund Purchase through Life Insurance

• Category: Contracts - Buy Sell - Stock Purchases
• State: Multi-State
• Control #: US-00455BG
• Format: Word; Rich Text

Description

This form is set up as a Buy Sell Agreement between the Corporation and a key shareholder. It applies in the case of the death, disability, retirement or offer of shareholder to sell the stock during his lifetime. A Mississippi Buy Sell or Stock Purchase Agreement is a legally binding contract that outlines the terms and conditions governing the sale or purchase of common stock in a closely held corporation. This agreement is specifically designed to protect the interests of the shareholders in the event of certain triggering events, such as death, disability, retirement, or voluntary departure. One of the key features of this agreement is the option to fund the purchase of stock through life insurance. This means that the agreement allows for the use of life insurance proceeds to facilitate the buyout of a deceased shareholder's stock. By incorporating this option, the agreement provides a mechanism to ensure a smooth transition of ownership and financial stability for the corporation. The agreement typically includes various sections and clauses, such as: 1. Parties: Identifies the shareholders and the corporation involved in the agreement. 2. Definitions: Clearly defines key terms used throughout the agreement, such as "triggering event," "purchase price," and "fair market value." 3. Purchase and Sale: Outlines the process for transferring ownership of the common stock and establishes the terms and conditions of the sale, including the purchase price and payment terms. 4. Triggering Events: Specifies the events that activate the buyout provisions, such as death, disability, retirement, or voluntary departure. It also includes provisions for the valuation of the stock in each triggering event. 5. Funding the Purchase: Describes the option to use life insurance proceeds to fund the purchase of stock. It includes details on the policy ownership, beneficiary designation, and the obligation of the corporation or the remaining shareholders to maintain the insurance policy. 6. Restrictions on Transfers: Sets forth any limitations or restrictions on the transfer of stock to ensure control and stability of the corporation, such as preemptive rights or rights of first refusal. 7. Dispute Resolution: Establishes a mechanism for resolving potential conflicts or disagreements between the shareholders, such as arbitration or mediation. 8. Governing Law: Specifies that the agreement is bound by the laws of Mississippi, ensuring consistency with state regulations and requirements. Depending on the specific needs and preferences of the parties involved, there may be variations of the Mississippi Buy Sell or Stock Purchase Agreement. These variations may include specific provisions tailored to different triggering events, such as a separate provision for retirement or disability, or the inclusion of additional funding mechanisms like installment payments or borrowing from the corporation. It is important to consult with legal professionals or experts to ensure that the agreement meets the specific requirements and objectives of the closely held corporation and its shareholders.

A Mississippi Buy Sell or Stock Purchase Agreement is a legally binding contract that outlines the terms and conditions governing the sale or purchase of common stock in a closely held corporation. This agreement is specifically designed to protect the interests of the shareholders in the event of certain triggering events, such as death, disability, retirement, or voluntary departure. One of the key features of this agreement is the option to fund the purchase of stock through life insurance. This means that the agreement allows for the use of life insurance proceeds to facilitate the buyout of a deceased shareholder's stock. By incorporating this option, the agreement provides a mechanism to ensure a smooth transition of ownership and financial stability for the corporation. The agreement typically includes various sections and clauses, such as: 1. Parties: Identifies the shareholders and the corporation involved in the agreement. 2. Definitions: Clearly defines key terms used throughout the agreement, such as "triggering event," "purchase price," and "fair market value." 3. Purchase and Sale: Outlines the process for transferring ownership of the common stock and establishes the terms and conditions of the sale, including the purchase price and payment terms. 4. Triggering Events: Specifies the events that activate the buyout provisions, such as death, disability, retirement, or voluntary departure. It also includes provisions for the valuation of the stock in each triggering event. 5. Funding the Purchase: Describes the option to use life insurance proceeds to fund the purchase of stock. It includes details on the policy ownership, beneficiary designation, and the obligation of the corporation or the remaining shareholders to maintain the insurance policy. 6. Restrictions on Transfers: Sets forth any limitations or restrictions on the transfer of stock to ensure control and stability of the corporation, such as preemptive rights or rights of first refusal. 7. Dispute Resolution: Establishes a mechanism for resolving potential conflicts or disagreements between the shareholders, such as arbitration or mediation. 8. Governing Law: Specifies that the agreement is bound by the laws of Mississippi, ensuring consistency with state regulations and requirements. Depending on the specific needs and preferences of the parties involved, there may be variations of the Mississippi Buy Sell or Stock Purchase Agreement. These variations may include specific provisions tailored to different triggering events, such as a separate provision for retirement or disability, or the inclusion of additional funding mechanisms like installment payments or borrowing from the corporation. It is important to consult with legal professionals or experts to ensure that the agreement meets the specific requirements and objectives of the closely held corporation and its shareholders.