New Mexico 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 New Mexico Buy Sell or Stock Purchase Agreement Covering Common Stock in Closely Held Corporation with Option to Fund Purchase through Life Insurance is a legal document that outlines the terms and conditions for the sale or purchase of common stock in a closely held corporation located in New Mexico. The agreement provides protection and guidance for shareholders in the event of certain triggering events such as the death, disability, retirement, or termination of one of the shareholders. The main objective of this agreement is to establish a clear plan for the future ownership and management of the company in case of an unforeseen event. By having a buy-sell agreement in place, shareholders can ensure that their interests are safeguarded, and the business continues to operate smoothly. The agreement typically includes the following key provisions: 1. Ownership Transfer: It outlines the process for transferring ownership of the common stock from one shareholder to another. This may include restrictions on selling or transferring shares to outsiders and conditions for intercompany transfers. 2. Triggering Events: The agreement includes a list of specific triggering events that will activate the buy-sell provisions, such as death, disability, retirement, or termination of a shareholder. These events may be further defined and customized based on the unique circumstances of the corporation. 3. Valuation of Stock: The agreement establishes a mechanism for determining the value of the common stock in case of a triggering event. This may include the use of independent appraisers or predetermined formulas to ensure fair market value. 4. Purchase Price and Funding: The agreement outlines the purchase price of the shares and the terms of payment. It also includes provisions for funding the purchase, such as through life insurance policies on the lives of the shareholders. This ensures that the funds required for the purchase are readily available in case of a triggering event. 5. Restrictions on Stock Transfer: The agreement includes restrictions on the transfer of the common stock to outsiders. This helps maintain the stability and control of the closely held corporation by ensuring that the shares remain within the existing shareholder group. 6. Dispute Resolution: The agreement may include provisions for dispute resolution, such as arbitration or mediation, to address any conflicts or disagreements that may arise during the implementation of the agreement. Different types or variations of the New Mexico Buy Sell or Stock Purchase Agreement Covering Common Stock in Closely Held Corporation with Option to Fund Purchase through Life Insurance may exist, depending on the specific requirements and preferences of the shareholders and the corporation. However, the core elements mentioned above are commonly included in such agreements to ensure a comprehensive and enforceable plan for the transfer of ownership in the closely held corporation.

A New Mexico Buy Sell or Stock Purchase Agreement Covering Common Stock in Closely Held Corporation with Option to Fund Purchase through Life Insurance is a legal document that outlines the terms and conditions for the sale or purchase of common stock in a closely held corporation located in New Mexico. The agreement provides protection and guidance for shareholders in the event of certain triggering events such as the death, disability, retirement, or termination of one of the shareholders. The main objective of this agreement is to establish a clear plan for the future ownership and management of the company in case of an unforeseen event. By having a buy-sell agreement in place, shareholders can ensure that their interests are safeguarded, and the business continues to operate smoothly. The agreement typically includes the following key provisions: 1. Ownership Transfer: It outlines the process for transferring ownership of the common stock from one shareholder to another. This may include restrictions on selling or transferring shares to outsiders and conditions for intercompany transfers. 2. Triggering Events: The agreement includes a list of specific triggering events that will activate the buy-sell provisions, such as death, disability, retirement, or termination of a shareholder. These events may be further defined and customized based on the unique circumstances of the corporation. 3. Valuation of Stock: The agreement establishes a mechanism for determining the value of the common stock in case of a triggering event. This may include the use of independent appraisers or predetermined formulas to ensure fair market value. 4. Purchase Price and Funding: The agreement outlines the purchase price of the shares and the terms of payment. It also includes provisions for funding the purchase, such as through life insurance policies on the lives of the shareholders. This ensures that the funds required for the purchase are readily available in case of a triggering event. 5. Restrictions on Stock Transfer: The agreement includes restrictions on the transfer of the common stock to outsiders. This helps maintain the stability and control of the closely held corporation by ensuring that the shares remain within the existing shareholder group. 6. Dispute Resolution: The agreement may include provisions for dispute resolution, such as arbitration or mediation, to address any conflicts or disagreements that may arise during the implementation of the agreement. Different types or variations of the New Mexico Buy Sell or Stock Purchase Agreement Covering Common Stock in Closely Held Corporation with Option to Fund Purchase through Life Insurance may exist, depending on the specific requirements and preferences of the shareholders and the corporation. However, the core elements mentioned above are commonly included in such agreements to ensure a comprehensive and enforceable plan for the transfer of ownership in the closely held corporation.