Oregon 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. The Oregon Buy Sell or Stock Purchase Agreement Covering Common Stock in a Closely Held Corporation with the Option to Fund Purchase through Life Insurance is a legally binding document that outlines the terms and conditions for the sale or transfer of common stock in a closely held corporation located in the state of Oregon. This agreement can be customized to fit the specific needs and requirements of the parties involved in the transaction. Keywords: Oregon, buy sell agreement, stock purchase agreement, common stock, closely held corporation, option, funding, life insurance. This agreement serves as a framework to ensure a smooth and efficient sale or transfer of common stock within a closely held corporation, offering legal protection and clarity for all parties involved. It establishes the rights, obligations, and restrictions applicable to the shareholders and their shares. The agreement covers the terms of the sale, including the purchase price, payment schedule, and method of payment. It may also include provisions for the valuation of the stock, determining the fair market value or using a predetermined formula, such as a multiple of earnings or book value, to assess the stock's worth. Additionally, the agreement can provide options for funding the purchase through life insurance. This means that the shareholders may agree to utilize life insurance policies to provide the necessary funds for the purchase of the common stock in case of a covered event, such as the death or disability of a shareholder. The agreement may outline the conditions under which the life insurance proceeds will be used, such as the amount or percentage to be allocated for the stock purchase, the process for submitting a claim, and the parties responsible for paying the premiums for the life insurance policies. Different types of Oregon Buy Sell or Stock Purchase Agreements covering common stock in closely held corporations with the option to fund purchases through life insurance may include: 1. Cross-purchase agreement: In this type of agreement, each shareholder agrees to purchase the shares of a deceased or disabled shareholder. Each shareholder holds a life insurance policy on the other shareholders, and upon the occurrence of a triggering event, the policy proceeds are used to fund the purchase of the deceased or disabled shareholder's stock. 2. Redemption agreement: In a redemption agreement, the closely held corporation itself agrees to purchase the shares of a deceased or disabled shareholder. The corporation maintains life insurance policies on each shareholder, and the policy proceeds are used to buy back the stock from the deceased or disabled shareholder's estate or the disabled shareholder themselves. 3. Hybrid agreement: A hybrid agreement combines elements of both cross-purchase and redemption agreements. In this scenario, certain shareholders agree to purchase the shares of a deceased or disabled shareholder, while the corporation agrees to purchase the shares of the remaining shareholders. Life insurance policies are utilized to fund the purchase of stock in both cases. It is important for all parties involved in the transaction to consult legal and financial professionals to ensure that the agreement complies with Oregon state laws, addresses their specific needs and objectives, and properly protects their interests.

The Oregon Buy Sell or Stock Purchase Agreement Covering Common Stock in a Closely Held Corporation with the Option to Fund Purchase through Life Insurance is a legally binding document that outlines the terms and conditions for the sale or transfer of common stock in a closely held corporation located in the state of Oregon. This agreement can be customized to fit the specific needs and requirements of the parties involved in the transaction. Keywords: Oregon, buy sell agreement, stock purchase agreement, common stock, closely held corporation, option, funding, life insurance. This agreement serves as a framework to ensure a smooth and efficient sale or transfer of common stock within a closely held corporation, offering legal protection and clarity for all parties involved. It establishes the rights, obligations, and restrictions applicable to the shareholders and their shares. The agreement covers the terms of the sale, including the purchase price, payment schedule, and method of payment. It may also include provisions for the valuation of the stock, determining the fair market value or using a predetermined formula, such as a multiple of earnings or book value, to assess the stock's worth. Additionally, the agreement can provide options for funding the purchase through life insurance. This means that the shareholders may agree to utilize life insurance policies to provide the necessary funds for the purchase of the common stock in case of a covered event, such as the death or disability of a shareholder. The agreement may outline the conditions under which the life insurance proceeds will be used, such as the amount or percentage to be allocated for the stock purchase, the process for submitting a claim, and the parties responsible for paying the premiums for the life insurance policies. Different types of Oregon Buy Sell or Stock Purchase Agreements covering common stock in closely held corporations with the option to fund purchases through life insurance may include: 1. Cross-purchase agreement: In this type of agreement, each shareholder agrees to purchase the shares of a deceased or disabled shareholder. Each shareholder holds a life insurance policy on the other shareholders, and upon the occurrence of a triggering event, the policy proceeds are used to fund the purchase of the deceased or disabled shareholder's stock. 2. Redemption agreement: In a redemption agreement, the closely held corporation itself agrees to purchase the shares of a deceased or disabled shareholder. The corporation maintains life insurance policies on each shareholder, and the policy proceeds are used to buy back the stock from the deceased or disabled shareholder's estate or the disabled shareholder themselves. 3. Hybrid agreement: A hybrid agreement combines elements of both cross-purchase and redemption agreements. In this scenario, certain shareholders agree to purchase the shares of a deceased or disabled shareholder, while the corporation agrees to purchase the shares of the remaining shareholders. Life insurance policies are utilized to fund the purchase of stock in both cases. It is important for all parties involved in the transaction to consult legal and financial professionals to ensure that the agreement complies with Oregon state laws, addresses their specific needs and objectives, and properly protects their interests.