Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Noncompetition Provisions

• Category: Contracts - Buy Sell - Stock Purchases
• State: Multi-State
• Control #: US-0546BG
• Format: Word; Rich Text

Description

The provisions of non-compete clauses are one of the key issues that shareholders should take into consideration at the drafting of a shareholders' agreement. A Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Noncom petition Provisions is a legal document that outlines the terms and conditions for buying and selling stocks in a close corporation, while also including provisions that restrict shareholders from engaging in competition with the corporation. This agreement is crucial for protecting the interests of shareholders and the corporation. The agreement commonly includes the following key elements: 1. Buy-Sell Provisions: This section outlines the procedures for buying and selling stocks among shareholders. It covers the right of first refusal, valuation methods, payment terms, and the process for transferring shares. 2. Noncom petition Provisions: Noncom petition clauses restrict shareholders from engaging in activities that directly compete with the corporation during their tenure as shareholders and often extend beyond the termination of their share ownership. These provisions may specify geographical limitations, scope of prohibited activities, and duration of the non-compete agreement. 3. Triggering Events: The agreement identifies the events that may trigger the buy-sell provisions, such as death, disability, retirement, termination of employment, or voluntary sale of shares. It details how the purchase price will be determined in each scenario. 4. Valuation Methods: The agreement stipulates the valuation methods to determine the fair market value of the shares, such as the book value, adjusted book value, or an independent appraisal. This ensures transparency and fairness in assessing the shares' worth. 5. Payment Terms: The agreement outlines the payment terms for purchasing the shares, including whether the payment will be made in a lump sum or installments, and any provisions for financing or security arrangements. Types of Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Noncom petition Provisions: 1. Standard Buy-Sell Agreement: This agreement covers the general provisions for buying and selling stock while incorporating noncom petition clauses. 2. First Refusal Agreement: This type of agreement gives existing shareholders the first opportunity to purchase shares being sold by another shareholder, before they can be sold to an external party. 3. Cross-Purchase Agreement: This agreement allows each shareholder to purchase shares directly from the selling shareholder, rather than the corporation itself. 4. Redemption Agreement: In this type of agreement, the corporation buys back the shares from the selling shareholder. 5. Hybrid Agreement: This agreement combines elements from multiple types mentioned above to accommodate the specific needs of the close corporation and its shareholders. It is advisable to consult with an attorney specializing in corporate law to draft a Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Noncom petition Provisions that aligns with the unique requirements of the corporation and its shareholders.

A Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Noncom petition Provisions is a legal document that outlines the terms and conditions for buying and selling stocks in a close corporation, while also including provisions that restrict shareholders from engaging in competition with the corporation. This agreement is crucial for protecting the interests of shareholders and the corporation. The agreement commonly includes the following key elements: 1. Buy-Sell Provisions: This section outlines the procedures for buying and selling stocks among shareholders. It covers the right of first refusal, valuation methods, payment terms, and the process for transferring shares. 2. Noncom petition Provisions: Noncom petition clauses restrict shareholders from engaging in activities that directly compete with the corporation during their tenure as shareholders and often extend beyond the termination of their share ownership. These provisions may specify geographical limitations, scope of prohibited activities, and duration of the non-compete agreement. 3. Triggering Events: The agreement identifies the events that may trigger the buy-sell provisions, such as death, disability, retirement, termination of employment, or voluntary sale of shares. It details how the purchase price will be determined in each scenario. 4. Valuation Methods: The agreement stipulates the valuation methods to determine the fair market value of the shares, such as the book value, adjusted book value, or an independent appraisal. This ensures transparency and fairness in assessing the shares' worth. 5. Payment Terms: The agreement outlines the payment terms for purchasing the shares, including whether the payment will be made in a lump sum or installments, and any provisions for financing or security arrangements. Types of Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Noncom petition Provisions: 1. Standard Buy-Sell Agreement: This agreement covers the general provisions for buying and selling stock while incorporating noncom petition clauses. 2. First Refusal Agreement: This type of agreement gives existing shareholders the first opportunity to purchase shares being sold by another shareholder, before they can be sold to an external party. 3. Cross-Purchase Agreement: This agreement allows each shareholder to purchase shares directly from the selling shareholder, rather than the corporation itself. 4. Redemption Agreement: In this type of agreement, the corporation buys back the shares from the selling shareholder. 5. Hybrid Agreement: This agreement combines elements from multiple types mentioned above to accommodate the specific needs of the close corporation and its shareholders. It is advisable to consult with an attorney specializing in corporate law to draft a Wisconsin Shareholders Buy Sell Agreement of Stock in a Close Corporation with Noncom petition Provisions that aligns with the unique requirements of the corporation and its shareholders.