This form is set up as a Buy Sell Agreement between the LLC and a key member. It applies in the case of the death, disability, retirement or offer of member to sell his membership units during his lifetime.
A New Hampshire Buy Sell or Stock Purchase Agreement covering membership units in a Limited Liability Company (LLC) with an option to fund the purchase through life insurance is a legal contract outlining the terms and conditions of a buy-sell transaction involving the transfer of membership units within an LLC. This agreement provides a framework for the sale and purchase of membership units while also incorporating a life insurance policy as a payment method. The primary purpose of this agreement is to protect the interests of the LLC members by establishing a clear procedure for the sale and purchase of membership units in the event of certain trigger events such as death, disability, retirement, or voluntary withdrawal. By including life insurance as a funding option, the agreement ensures that the purchasing party has the necessary funds available to acquire the membership units, thereby mitigating financial risks and providing liquidity. There may be different types of New Hampshire Buy Sell or Stock Purchase Agreements covering membership units in an LLC with an option to fund the purchase through life insurance, depending on the specific terms negotiated between the buyer and seller. Some of these variations may include: 1. Cross-purchase agreement: In this type of agreement, each LLC member obtains a life insurance policy on the lives of the other members. Should a triggering event occur, the surviving members use the proceeds from the life insurance policies to purchase the deceased or departing member's membership units. 2. Entity-purchase agreement: In an entity-purchase agreement, the LLC itself obtains life insurance policies on the lives of its members. In the event of a triggering event, the LLC purchases the membership units from the departing member using the life insurance proceeds. 3. Wait-and-see agreement: This agreement allows the remaining members of the LLC to choose between a cross-purchase or entity-purchase agreement at the time of the triggering event. This flexibility allows the LLC to assess the most efficient and cost-effective method based on the current circumstances. When drafting a New Hampshire Buy Sell or Stock Purchase Agreement covering membership units in an LLC with an option to fund the purchase through life insurance, it is essential to consider various elements, including: — Detailed identification of the LLC members, their ownership interests, and the number of membership units being bought or sold. — Triggering events that activate the buy-sell provision, such as death, disability, retirement, or voluntary withdrawal. — The life insurance policy details, including the insured party's name, the benefit amount, payment terms, and provisions for insurability. — The purchase price or valuation method to determine the cost of the membership units. — Funding mechanisms, including how the life insurance proceeds will be used to complete the purchase. — Terms for dispute resolution, governing law, and jurisdiction. It is crucial to consult with legal professionals or attorneys experienced in business law and estate planning to ensure compliance with New Hampshire state regulations and to tailor the agreement to the specific needs and goals of the LLC and its members.A New Hampshire Buy Sell or Stock Purchase Agreement covering membership units in a Limited Liability Company (LLC) with an option to fund the purchase through life insurance is a legal contract outlining the terms and conditions of a buy-sell transaction involving the transfer of membership units within an LLC. This agreement provides a framework for the sale and purchase of membership units while also incorporating a life insurance policy as a payment method. The primary purpose of this agreement is to protect the interests of the LLC members by establishing a clear procedure for the sale and purchase of membership units in the event of certain trigger events such as death, disability, retirement, or voluntary withdrawal. By including life insurance as a funding option, the agreement ensures that the purchasing party has the necessary funds available to acquire the membership units, thereby mitigating financial risks and providing liquidity. There may be different types of New Hampshire Buy Sell or Stock Purchase Agreements covering membership units in an LLC with an option to fund the purchase through life insurance, depending on the specific terms negotiated between the buyer and seller. Some of these variations may include: 1. Cross-purchase agreement: In this type of agreement, each LLC member obtains a life insurance policy on the lives of the other members. Should a triggering event occur, the surviving members use the proceeds from the life insurance policies to purchase the deceased or departing member's membership units. 2. Entity-purchase agreement: In an entity-purchase agreement, the LLC itself obtains life insurance policies on the lives of its members. In the event of a triggering event, the LLC purchases the membership units from the departing member using the life insurance proceeds. 3. Wait-and-see agreement: This agreement allows the remaining members of the LLC to choose between a cross-purchase or entity-purchase agreement at the time of the triggering event. This flexibility allows the LLC to assess the most efficient and cost-effective method based on the current circumstances. When drafting a New Hampshire Buy Sell or Stock Purchase Agreement covering membership units in an LLC with an option to fund the purchase through life insurance, it is essential to consider various elements, including: — Detailed identification of the LLC members, their ownership interests, and the number of membership units being bought or sold. — Triggering events that activate the buy-sell provision, such as death, disability, retirement, or voluntary withdrawal. — The life insurance policy details, including the insured party's name, the benefit amount, payment terms, and provisions for insurability. — The purchase price or valuation method to determine the cost of the membership units. — Funding mechanisms, including how the life insurance proceeds will be used to complete the purchase. — Terms for dispute resolution, governing law, and jurisdiction. It is crucial to consult with legal professionals or attorneys experienced in business law and estate planning to ensure compliance with New Hampshire state regulations and to tailor the agreement to the specific needs and goals of the LLC and its members.
