In the absence of a valid restriction, a member in an LLC may transfer his/her interest in the LLC (usually expressed in membership units ) to anyone. Restrictions on the transfer of membership units are valid if they are not unreasonable. This form provides that the LLC has the right to purchase a members membership units upon his death. The LLC can fund this transaction through a life insurance policy on the members life with the proceeds going to the LLC. The proceeds will then be used to buy the deceased members membership units.
A restriction on the right to transfer membership units is not effective against a purchaser of the unit unless the purchaser knows of the restriction. Such a restriction can be conspicuously noted on the membership certificates.
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.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
New Hampshire Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company — LLC – with an Option to Fund the Purchase through Life Insurance In New Hampshire, a Buy Sell or Stock Purchase Agreement is an important legal document that outlines the terms and conditions when individual members of a Limited Liability Company (LLC) wish to buy or sell membership units. This agreement is designed to protect the interests of all parties involved and ensure a smooth and fair transaction. There are different types of Buy Sell or Stock Purchase Agreements in New Hampshire, each with its own specific features. Some common variations include: 1. Cross-Purchase Agreement: This type of agreement allows individual members to purchase membership units from each other directly. In this case, the purchasing member buys the units from the selling member using their own funds or other available resources. 2. Entity Purchase Agreement: In an entity purchase agreement, the LLC itself is the buyer of the membership units. The LLC uses its funds or takes out a loan to finance the purchase from the selling member. 3. Wait-and-See Agreement: This variation provides flexibility for the LLC and individual members to choose between cross-purchase and entity purchase agreements at a later date. The agreement outlines the criteria that will trigger the chosen method. One unique feature of the Buy Sell or Stock Purchase Agreement in New Hampshire is the option to fund the purchase through life insurance. This allows individual members to secure life insurance policies on each other's lives. In the event of a member's death, the insurance proceeds can be used to fund the purchase of their membership units. This provision ensures that the remaining members can maintain control and ownership of the LLC while providing financial security to the deceased member's family or beneficiary. The agreement includes detailed clauses and provisions regarding the purchase price, valuation methods, payment terms, events triggering a buy-sell obligation (such as death, disability, retirement), and dispute resolution mechanisms. It is crucial for individual members to seek legal counsel to draft a comprehensive agreement that meets their specific needs and protects their interests. In conclusion, a New Hampshire Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance is a vital document that outlines the terms and conditions for buying or selling membership units. With various types of agreements available, individual members can choose a structure that suits their needs while ensuring the smooth continuation of the LLC in the event of a triggering event. The option to fund the purchase through life insurance adds an extra layer of financial security for all involved parties.New Hampshire Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company — LLC – with an Option to Fund the Purchase through Life Insurance In New Hampshire, a Buy Sell or Stock Purchase Agreement is an important legal document that outlines the terms and conditions when individual members of a Limited Liability Company (LLC) wish to buy or sell membership units. This agreement is designed to protect the interests of all parties involved and ensure a smooth and fair transaction. There are different types of Buy Sell or Stock Purchase Agreements in New Hampshire, each with its own specific features. Some common variations include: 1. Cross-Purchase Agreement: This type of agreement allows individual members to purchase membership units from each other directly. In this case, the purchasing member buys the units from the selling member using their own funds or other available resources. 2. Entity Purchase Agreement: In an entity purchase agreement, the LLC itself is the buyer of the membership units. The LLC uses its funds or takes out a loan to finance the purchase from the selling member. 3. Wait-and-See Agreement: This variation provides flexibility for the LLC and individual members to choose between cross-purchase and entity purchase agreements at a later date. The agreement outlines the criteria that will trigger the chosen method. One unique feature of the Buy Sell or Stock Purchase Agreement in New Hampshire is the option to fund the purchase through life insurance. This allows individual members to secure life insurance policies on each other's lives. In the event of a member's death, the insurance proceeds can be used to fund the purchase of their membership units. This provision ensures that the remaining members can maintain control and ownership of the LLC while providing financial security to the deceased member's family or beneficiary. The agreement includes detailed clauses and provisions regarding the purchase price, valuation methods, payment terms, events triggering a buy-sell obligation (such as death, disability, retirement), and dispute resolution mechanisms. It is crucial for individual members to seek legal counsel to draft a comprehensive agreement that meets their specific needs and protects their interests. In conclusion, a New Hampshire Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance is a vital document that outlines the terms and conditions for buying or selling membership units. With various types of agreements available, individual members can choose a structure that suits their needs while ensuring the smooth continuation of the LLC in the event of a triggering event. The option to fund the purchase through life insurance adds an extra layer of financial security for all involved parties.
