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.
Keywords: Virgin Islands, Buy Sell Agreement, Stock Purchase Agreement, Membership Units, Limited Liability Company (LLC), Option to Fund Purchase, Life Insurance Description: A Virgin Islands Buy Sell or Stock Purchase Agreement Covering Membership Units in a Limited Liability Company (LLC) with an Option to Fund the Purchase through Life Insurance is a legal document that outlines the terms and conditions for buying or selling membership units in an LLC located in the Virgin Islands. This agreement also includes provisions for using life insurance as a funding mechanism for the purchase. There are different types of the Virgin Islands Buy Sell or Stock Purchase Agreements Covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance, each designed to cater to specific needs and preferences. Some of these variations include: 1. Cross-Purchase Agreement: In this type of agreement, each member of the LLC agrees to purchase the membership units of another member in the event of their death or incapacitation. The funding for the purchase is typically done through life insurance policies taken out on each member's life. 2. Stock Redemption Agreement: In a stock redemption agreement, the LLC itself agrees to purchase the membership units of a deceased or incapacitated member. The purchase is funded through life insurance policies owned by the LLC, which are taken out on the lives of its members. 3. Hybrid Agreement: A hybrid agreement combines elements of both the cross-purchase and stock redemption agreements. In this case, some members of the LLC agree to purchase the membership units of the deceased or incapacitated member, while the LLC itself may also agree to repurchase a portion of the units. Funding for the purchase is usually facilitated through a combination of life insurance policies owned by the LLC and individual members. Regardless of the specific type, a Virgin Islands Buy Sell or Stock Purchase Agreement with an Option to Fund the Purchase through Life Insurance provides a framework for the seamless transfer of membership units within an LLC in the event of unforeseen circumstances. It protects the interests of all parties involved and ensures continuity of business operations by facilitating the orderly transfer of ownership.
