New York Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse

• Category: Contracts - Buy Sell - Stock Purchases
• State: Multi-State
• Control #: US-0391BG
• Format: Word; Rich Text

Description

This type of stock purchase and transfer agreements may be between the corporation and the shareholders. Such an agreement is also referred to as a redemption agreement. If this type of agreement is among the shareholders, it is often referred to as a cross purchase agreement. New York Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a legal contract utilized by shareholders in a close corporation located in the state of New York. This agreement outlines the terms and conditions surrounding the buying and selling of stock within the corporation, particularly when the shareholders involved are also married. The primary purpose of this agreement is to establish a framework for the smooth transfer of shares in the event of certain triggers such as death, divorce, retirement, or disability. By including an agreement of spouse, this ensures that the spouse's rights and interests are considered and protected during stock transfers. Some key components typically found in this type of Shareholders Buy Sell Agreement include: 1. Buy-Sell Provisions: This section defines the circumstances triggering a buy-sell agreement, such as the death of a shareholder, a shareholder's desire to sell their shares, or the occurrence of any other predetermined event. It also specifies the restrictions on selling shares to outside parties and the procedures for valuing the shares. 2. Spousal Agreement: In the case where a shareholder is married, their spouse's agreement is sought and considered. This section clarifies the spouse's rights, obligations, and benefits regarding the shareholder's shares. This ensures that both spouses are aware of their rights and responsibilities in case of any stock transfer events. 3. Valuation Methodology: This section describes the method to be used for determining the fair market value of the shares during a buy-sell event. Common valuation methods include the book value, appraisal by a professional evaluator, or a predetermined formula. 4. Funding Mechanism: This section outlines how the buy-sell agreement will be funded. It may include options like life insurance policies, installment payments, or a sinking fund established by the corporation. Different types of New York Shareholders Buy Sell Agreements of Stock in a Close Corporation with Agreement of Spouse can be categorized based on the nature of the triggering events or the variations in the agreement terms. Some possible variations include: 1. Death Buy-Sell Agreement: This agreement is triggered upon the death of a shareholder, ensuring a smooth transfer of shares while protecting the interests of the spouse. 2. Disability Buy-Sell Agreement: This agreement facilitates the transfer of shares when a shareholder becomes disabled or is unable to continue their involvement in the corporation. 3. Retirement Buy-Sell Agreement: This type of agreement covers the sale and transfer of shares when a shareholder reaches retirement age and decides to exit the business. Note: It's crucial to consult with a legal professional to tailor the agreement to meet the specific needs and circumstances of the close corporation and the shareholders involved.

New York Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a legal contract utilized by shareholders in a close corporation located in the state of New York. This agreement outlines the terms and conditions surrounding the buying and selling of stock within the corporation, particularly when the shareholders involved are also married. The primary purpose of this agreement is to establish a framework for the smooth transfer of shares in the event of certain triggers such as death, divorce, retirement, or disability. By including an agreement of spouse, this ensures that the spouse's rights and interests are considered and protected during stock transfers. Some key components typically found in this type of Shareholders Buy Sell Agreement include: 1. Buy-Sell Provisions: This section defines the circumstances triggering a buy-sell agreement, such as the death of a shareholder, a shareholder's desire to sell their shares, or the occurrence of any other predetermined event. It also specifies the restrictions on selling shares to outside parties and the procedures for valuing the shares. 2. Spousal Agreement: In the case where a shareholder is married, their spouse's agreement is sought and considered. This section clarifies the spouse's rights, obligations, and benefits regarding the shareholder's shares. This ensures that both spouses are aware of their rights and responsibilities in case of any stock transfer events. 3. Valuation Methodology: This section describes the method to be used for determining the fair market value of the shares during a buy-sell event. Common valuation methods include the book value, appraisal by a professional evaluator, or a predetermined formula. 4. Funding Mechanism: This section outlines how the buy-sell agreement will be funded. It may include options like life insurance policies, installment payments, or a sinking fund established by the corporation. Different types of New York Shareholders Buy Sell Agreements of Stock in a Close Corporation with Agreement of Spouse can be categorized based on the nature of the triggering events or the variations in the agreement terms. Some possible variations include: 1. Death Buy-Sell Agreement: This agreement is triggered upon the death of a shareholder, ensuring a smooth transfer of shares while protecting the interests of the spouse. 2. Disability Buy-Sell Agreement: This agreement facilitates the transfer of shares when a shareholder becomes disabled or is unable to continue their involvement in the corporation. 3. Retirement Buy-Sell Agreement: This type of agreement covers the sale and transfer of shares when a shareholder reaches retirement age and decides to exit the business. Note: It's crucial to consult with a legal professional to tailor the agreement to meet the specific needs and circumstances of the close corporation and the shareholders involved.