New York 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 York Buy Sell or Stock Purchase Agreement Covering Common Stock in a Closely Held Corporation with an Option to Fund Purchase through Life Insurance is a legal contract entered into by the shareholders or owners of a closely held corporation in New York. This agreement is designed to address the future purchase and sale of common stock in the corporation in the event of certain triggering events, such as death, disability, retirement, or voluntary or involuntary departure of a shareholder. The agreement outlines the terms and conditions under which the common stock can be bought or sold by the remaining shareholders or the corporation itself, and it includes provisions to protect the interests of all parties involved. This agreement is particularly beneficial for closely held corporations, where a limited number of shareholders are involved and hold significant control over the corporation's operations. The option to fund the purchase of the common stock through life insurance is a key feature of this type of agreement. It allows the shareholders to plan for the financing of the stock purchase in the event of the death of a shareholder. This is typically done by the corporation obtaining a life insurance policy on the lives of the shareholders. Upon the death of a shareholder, the proceeds from the life insurance policy can be used to fund the purchase of their common stock by the remaining shareholders or the corporation itself. There can be different variations or types of New York Buy Sell or Stock Purchase Agreements Covering Common Stock in Closely Held Corporations with Option to Fund Purchase Through Life Insurance, depending on the specific needs and circumstances of the shareholders involved. Some common types include: 1. Cross-Purchase Agreement: In this type of agreement, the remaining shareholders have the option to individually purchase the common stock of the departing or deceased shareholder. 2. Entity Redemption Agreement: In this type, the corporation itself has the option to purchase the common stock of the departing or deceased shareholder. 3. Hybrid Agreement: A combination of the cross-purchase and entity redemption agreements, wherein both the remaining shareholders and the corporation can purchase the common stock depending on the specific triggering event. It is essential for each shareholder involved in the agreement to carefully consider their unique requirements and consult with legal and financial professionals to determine the most suitable type of New York Buy Sell or Stock Purchase Agreement Covering Common Stock in a Closely Held Corporation with an Option to Fund Purchase through Life Insurance for their circumstances.

A New York Buy Sell or Stock Purchase Agreement Covering Common Stock in a Closely Held Corporation with an Option to Fund Purchase through Life Insurance is a legal contract entered into by the shareholders or owners of a closely held corporation in New York. This agreement is designed to address the future purchase and sale of common stock in the corporation in the event of certain triggering events, such as death, disability, retirement, or voluntary or involuntary departure of a shareholder. The agreement outlines the terms and conditions under which the common stock can be bought or sold by the remaining shareholders or the corporation itself, and it includes provisions to protect the interests of all parties involved. This agreement is particularly beneficial for closely held corporations, where a limited number of shareholders are involved and hold significant control over the corporation's operations. The option to fund the purchase of the common stock through life insurance is a key feature of this type of agreement. It allows the shareholders to plan for the financing of the stock purchase in the event of the death of a shareholder. This is typically done by the corporation obtaining a life insurance policy on the lives of the shareholders. Upon the death of a shareholder, the proceeds from the life insurance policy can be used to fund the purchase of their common stock by the remaining shareholders or the corporation itself. There can be different variations or types of New York Buy Sell or Stock Purchase Agreements Covering Common Stock in Closely Held Corporations with Option to Fund Purchase Through Life Insurance, depending on the specific needs and circumstances of the shareholders involved. Some common types include: 1. Cross-Purchase Agreement: In this type of agreement, the remaining shareholders have the option to individually purchase the common stock of the departing or deceased shareholder. 2. Entity Redemption Agreement: In this type, the corporation itself has the option to purchase the common stock of the departing or deceased shareholder. 3. Hybrid Agreement: A combination of the cross-purchase and entity redemption agreements, wherein both the remaining shareholders and the corporation can purchase the common stock depending on the specific triggering event. It is essential for each shareholder involved in the agreement to carefully consider their unique requirements and consult with legal and financial professionals to determine the most suitable type of New York Buy Sell or Stock Purchase Agreement Covering Common Stock in a Closely Held Corporation with an Option to Fund Purchase through Life Insurance for their circumstances.