In the absence of a valid restriction, a member in an LLC may transfer his/her interest in the LLC (usually expressed in membership units ) to anyone. Restrictions on the transfer of membership units are valid if they are not unreasonable. This form provides that the LLC has the right to purchase a members membership units upon his death. The LLC can fund this transaction through a life insurance policy on the members life with the proceeds going to the LLC. The proceeds will then be used to buy the deceased members membership units.
A restriction on the right to transfer membership units is not effective against a purchaser of the unit unless the purchaser knows of the restriction. Such a restriction can be conspicuously noted on the membership certificates.
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.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Cook Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company — LL— - with an Option to Fund the Purchase through Life Insurance is a contractual agreement entered into by individual members of a Limited Liability Company (LLC) in Cook County, Illinois. This comprehensive agreement outlines the terms and conditions under which the sale, transfer, or purchase of membership units within the LLC can take place. In addition to facilitating the transfer of ownership, this agreement provides an option for funding the purchase through life insurance. Keywords: Cook Illinois, Buy Sell Agreement, Stock Purchase Agreement, Individual Members, Membership Units, Limited Liability Company, LLC, Option to Fund, Life Insurance. In the context of Cook Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC, there can be different variations based on specific requirements or preferences. Here are a few common types: 1. Traditional Buy Sell Agreement: This type of agreement outlines the terms and conditions of a member's exit from the LLC. It addresses situations such as retirement, death, disability, or voluntary departure. The agreement typically includes provisions for setting the purchase price, valuation methodology, payment terms, and dispute resolution mechanisms. 2. Cross-Purchase Agreement: In this type of agreement, co-owners within the LLC agree to purchase the membership units of a departing member. Each member purchases an insurance policy on the lives of the other members and, in the event of a departure, the proceeds from the life insurance policy are used to fund the purchase of the departing member's units. 3. Entity Purchase Agreement: This variant of the agreement involves the LLC itself purchasing the membership units of a departing member. The LLC obtains a life insurance policy on each member, and upon the member's departure, the LLC uses the insurance proceeds to fund the buyback of the membership units. 4. Hybrid Buy Sell Agreement: This type of agreement combines the elements of both cross-purchase and entity purchase agreements. It provides flexibility for members to choose whether the LLC or individual members will purchase the membership units upon the occurrence of certain events, such as death or disability. The Cook Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance offers a mechanism for ensuring a smooth transition of ownership within the LLC while providing financial security for the members involved.Cook Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company — LL— - with an Option to Fund the Purchase through Life Insurance is a contractual agreement entered into by individual members of a Limited Liability Company (LLC) in Cook County, Illinois. This comprehensive agreement outlines the terms and conditions under which the sale, transfer, or purchase of membership units within the LLC can take place. In addition to facilitating the transfer of ownership, this agreement provides an option for funding the purchase through life insurance. Keywords: Cook Illinois, Buy Sell Agreement, Stock Purchase Agreement, Individual Members, Membership Units, Limited Liability Company, LLC, Option to Fund, Life Insurance. In the context of Cook Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC, there can be different variations based on specific requirements or preferences. Here are a few common types: 1. Traditional Buy Sell Agreement: This type of agreement outlines the terms and conditions of a member's exit from the LLC. It addresses situations such as retirement, death, disability, or voluntary departure. The agreement typically includes provisions for setting the purchase price, valuation methodology, payment terms, and dispute resolution mechanisms. 2. Cross-Purchase Agreement: In this type of agreement, co-owners within the LLC agree to purchase the membership units of a departing member. Each member purchases an insurance policy on the lives of the other members and, in the event of a departure, the proceeds from the life insurance policy are used to fund the purchase of the departing member's units. 3. Entity Purchase Agreement: This variant of the agreement involves the LLC itself purchasing the membership units of a departing member. The LLC obtains a life insurance policy on each member, and upon the member's departure, the LLC uses the insurance proceeds to fund the buyback of the membership units. 4. Hybrid Buy Sell Agreement: This type of agreement combines the elements of both cross-purchase and entity purchase agreements. It provides flexibility for members to choose whether the LLC or individual members will purchase the membership units upon the occurrence of certain events, such as death or disability. The Cook Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance offers a mechanism for ensuring a smooth transition of ownership within the LLC while providing financial security for the members involved.
