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.
Wisconsin 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 provides a comprehensive legal document outlining the terms and conditions of selling or purchasing membership units within an LLC in the state of Wisconsin. This agreement may vary depending on the specific circumstances, and there may be different types of agreements available, such as the following: 1. Cross-Purchase Agreement: In a cross-purchase agreement, the agreement is made between individual members of the LLC. It allows each member to purchase the membership units of another member in the event of death or disability, funded through life insurance policies. 2. Entity Redemption Agreement: An entity redemption agreement involves the LLC itself purchasing the membership units of a deceased or disabled member. The LLC is typically funded by life insurance policies owned by the entity to finance the buyout. 3. Hybrid Agreement: A hybrid agreement combines elements of both the cross-purchase and entity redemption agreements, allowing both the individual members and the LLC to purchase the membership units. The Wisconsin Buy Sell or Stock Purchase Agreement covering Membership Units in an LLC typically includes the following key components: 1. Identification of Parties: The agreement clearly identifies all parties involved, including the LLC, current members, and potential future members or buyers. 2. Purchase Terms: This section defines the terms and conditions of the membership unit purchase, including the purchase price, payment terms, and any contingencies. 3. Funding through Life Insurance: If the purchase is to be funded through life insurance, this section specifies the details such as the policy owner, beneficiaries, and the amount of life insurance coverage required. 4. Option Triggering Events: The agreement outlines the events that trigger the buy-sell provisions, such as death, disability, retirement, or voluntary withdrawal of a member. 5. Valuation Method: It specifies the method used for valuing the membership units, such as a predetermined formula, independent appraisal, or a mutually agreed-upon valuation. 6. Right of First Refusal: This provision grants the existing members or the LLC the first opportunity to purchase the membership units being offered for sale before they can be sold to third parties. 7. Dispute Resolution: The agreement may include a clause outlining the process for resolving disputes, such as mediation or arbitration, to avoid costly litigation. 8. Governing Law: This section identifies the applicable laws of Wisconsin that govern the interpretation and enforcement of the agreement. It is important to consult with a qualified attorney who specializes in business law to draft or review a Wisconsin Buy Sell or Stock Purchase Agreement covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance, as the specific language and provisions may vary depending on the unique circumstances of the LLC and the parties involved.Wisconsin 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 provides a comprehensive legal document outlining the terms and conditions of selling or purchasing membership units within an LLC in the state of Wisconsin. This agreement may vary depending on the specific circumstances, and there may be different types of agreements available, such as the following: 1. Cross-Purchase Agreement: In a cross-purchase agreement, the agreement is made between individual members of the LLC. It allows each member to purchase the membership units of another member in the event of death or disability, funded through life insurance policies. 2. Entity Redemption Agreement: An entity redemption agreement involves the LLC itself purchasing the membership units of a deceased or disabled member. The LLC is typically funded by life insurance policies owned by the entity to finance the buyout. 3. Hybrid Agreement: A hybrid agreement combines elements of both the cross-purchase and entity redemption agreements, allowing both the individual members and the LLC to purchase the membership units. The Wisconsin Buy Sell or Stock Purchase Agreement covering Membership Units in an LLC typically includes the following key components: 1. Identification of Parties: The agreement clearly identifies all parties involved, including the LLC, current members, and potential future members or buyers. 2. Purchase Terms: This section defines the terms and conditions of the membership unit purchase, including the purchase price, payment terms, and any contingencies. 3. Funding through Life Insurance: If the purchase is to be funded through life insurance, this section specifies the details such as the policy owner, beneficiaries, and the amount of life insurance coverage required. 4. Option Triggering Events: The agreement outlines the events that trigger the buy-sell provisions, such as death, disability, retirement, or voluntary withdrawal of a member. 5. Valuation Method: It specifies the method used for valuing the membership units, such as a predetermined formula, independent appraisal, or a mutually agreed-upon valuation. 6. Right of First Refusal: This provision grants the existing members or the LLC the first opportunity to purchase the membership units being offered for sale before they can be sold to third parties. 7. Dispute Resolution: The agreement may include a clause outlining the process for resolving disputes, such as mediation or arbitration, to avoid costly litigation. 8. Governing Law: This section identifies the applicable laws of Wisconsin that govern the interpretation and enforcement of the agreement. It is important to consult with a qualified attorney who specializes in business law to draft or review a Wisconsin Buy Sell or Stock Purchase Agreement covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance, as the specific language and provisions may vary depending on the unique circumstances of the LLC and the parties involved.
