New Hampshire Buy Sell Agreement Between Shareholders and a Corporation

• Category: Contracts - Buy Sell - Stock Purchases
• State: Multi-State
• Control #: US-00442
• Format: Word; Rich Text

Description

The purpose of this agreement is to provide for the sale by a stockholder during his/her lifetime, or by a deceased stockholder's estate, and to provide all or a substantial part of the funds for the purchase. The form contains the following provisions: total value of the capital stock, procedure upon the death of a stockholder, and amending procedures for the agreement. A Buy Sell Agreement is a legally binding contract that outlines the terms and conditions under which the shares of a corporation can be bought or sold by its shareholders. In the context of New Hampshire, this agreement is specifically designed to govern the sale or transfer of shares between shareholders and a corporation. The purpose of a Buy Sell Agreement is to establish a clear mechanism for the valuation and sale of shares in the event of certain triggering events, such as death, disability, retirement, or voluntary exit of a shareholder. It helps protect the interests of both the shareholders and the corporation by ensuring a smooth transition and orderly transfer of ownership. There can be different types of Buy Sell Agreements between shareholders and a corporation in New Hampshire, depending on the specific needs and circumstances of the parties involved. Some common types include: 1. Cross-Purchase Agreement: This type of agreement allows the remaining shareholders to buy the shares of a departing shareholder. Each shareholder has the option to purchase the exiting shareholder's proportionate share of stock. 2. Stock Redemption Agreement: In this agreement, the corporation itself has the option to buy back the exiting shareholder's shares. The corporation can use its funds or acquire the necessary funds through insurance policies, credit arrangements, or other means. 3. Hybrid Agreement: A hybrid agreement combines elements of both cross-purchase and stock redemption agreements. It allows the remaining shareholders and the corporation to each have the option to purchase the shares of the departing shareholder. The Buy Sell Agreement typically includes various provisions, such as: a. Purchase Price: The agreement specifies how the purchase price for the shares will be determined. This can be based on a formula, appraisal, or predetermined price. b. Triggering Events: The agreement identifies the events that will trigger the buy-sell provisions, such as death, disability, retirement, or voluntary exit of a shareholder. c. Restrictions on Transfer: The agreement may impose restrictions on the transferability of shares to ensure that they can only be sold or transferred in accordance with the agreement's provisions. d. Right of First Refusal: This provision grants the corporation or other shareholders the opportunity to purchase the shares before they can be sold to an outside party. e. Funding Mechanism: The agreement determines how the purchase price will be funded. This can include using corporate funds, insurance policies, or arranging financing. f. Dispute Resolution: The agreement may include provisions for resolving disputes that may arise during the implementation of the buy-sell provisions, such as mediation or arbitration. It is important to note that a New Hampshire Buy Sell Agreement Between Shareholders and a Corporation should be drafted and reviewed by legal professionals to ensure compliance with state laws and to accurately reflect the intentions and objectives of the parties involved.

A Buy Sell Agreement is a legally binding contract that outlines the terms and conditions under which the shares of a corporation can be bought or sold by its shareholders. In the context of New Hampshire, this agreement is specifically designed to govern the sale or transfer of shares between shareholders and a corporation. The purpose of a Buy Sell Agreement is to establish a clear mechanism for the valuation and sale of shares in the event of certain triggering events, such as death, disability, retirement, or voluntary exit of a shareholder. It helps protect the interests of both the shareholders and the corporation by ensuring a smooth transition and orderly transfer of ownership. There can be different types of Buy Sell Agreements between shareholders and a corporation in New Hampshire, depending on the specific needs and circumstances of the parties involved. Some common types include: 1. Cross-Purchase Agreement: This type of agreement allows the remaining shareholders to buy the shares of a departing shareholder. Each shareholder has the option to purchase the exiting shareholder's proportionate share of stock. 2. Stock Redemption Agreement: In this agreement, the corporation itself has the option to buy back the exiting shareholder's shares. The corporation can use its funds or acquire the necessary funds through insurance policies, credit arrangements, or other means. 3. Hybrid Agreement: A hybrid agreement combines elements of both cross-purchase and stock redemption agreements. It allows the remaining shareholders and the corporation to each have the option to purchase the shares of the departing shareholder. The Buy Sell Agreement typically includes various provisions, such as: a. Purchase Price: The agreement specifies how the purchase price for the shares will be determined. This can be based on a formula, appraisal, or predetermined price. b. Triggering Events: The agreement identifies the events that will trigger the buy-sell provisions, such as death, disability, retirement, or voluntary exit of a shareholder. c. Restrictions on Transfer: The agreement may impose restrictions on the transferability of shares to ensure that they can only be sold or transferred in accordance with the agreement's provisions. d. Right of First Refusal: This provision grants the corporation or other shareholders the opportunity to purchase the shares before they can be sold to an outside party. e. Funding Mechanism: The agreement determines how the purchase price will be funded. This can include using corporate funds, insurance policies, or arranging financing. f. Dispute Resolution: The agreement may include provisions for resolving disputes that may arise during the implementation of the buy-sell provisions, such as mediation or arbitration. It is important to note that a New Hampshire Buy Sell Agreement Between Shareholders and a Corporation should be drafted and reviewed by legal professionals to ensure compliance with state laws and to accurately reflect the intentions and objectives of the parties involved.

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