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.
A Phoenix, Arizona buy-sell or stock purchase agreement is a legally binding contract between individual members of a limited liability company (LLC) that covers the purchase of membership units within the company. This agreement outlines the terms, conditions, and processes involved in the sale and transfer of membership units between LLC members. To provide additional flexibility, some variations of this agreement offer an option to fund the purchase through life insurance policies. Here are a few types of Phoenix, Arizona buy-sell or stock purchase agreements with the mentioned option: 1. Traditional Buy-Sell Agreement: This agreement is a common type of contract used in LCS of Phoenix, Arizona. It allows members to outline the terms and conditions of buying out other members' membership units, such as pricing, payment terms, and procedures for transferring ownership. 2. Cross-Purchase Agreement: In this type of buy-sell agreement, individual LLC members agree to purchase the membership units of another member in the event of death, disability, or retirement. The agreement may include provisions for utilizing life insurance policies to fund the purchase. 3. Entity Redemption Agreement: This form of agreement allows the limited liability company itself to buy back the membership units of a departing or deceased member. When life insurance is used to fund the purchase, the LLC becomes the owner and beneficiary of the policy. 4. Wait-and-See Agreement: A wait-and-see agreement combines elements of both cross-purchase and entity redemption agreements. Depending on the circumstances, the agreement allows the purchasing party or the LLC to buy the membership units at a predetermined price or according to a formula specified in the contract. Life insurance can provide the necessary funds for the purchase. 5. Hybrid Agreement: A hybrid agreement combines different aspects of multiple buy-sell agreement types. It offers enhanced flexibility by allowing individual members or the LLC to choose the best approach to fulfill the purchase obligation, potentially using life insurance proceeds. In conclusion, Phoenix, Arizona buy-sell or stock purchase agreements between individual members covering membership units in an LLC can have various types, offering options to fund the purchase through life insurance. These agreements provide a framework for smooth transitions of ownership while ensuring the financial security and stability of the LLC.A Phoenix, Arizona buy-sell or stock purchase agreement is a legally binding contract between individual members of a limited liability company (LLC) that covers the purchase of membership units within the company. This agreement outlines the terms, conditions, and processes involved in the sale and transfer of membership units between LLC members. To provide additional flexibility, some variations of this agreement offer an option to fund the purchase through life insurance policies. Here are a few types of Phoenix, Arizona buy-sell or stock purchase agreements with the mentioned option: 1. Traditional Buy-Sell Agreement: This agreement is a common type of contract used in LCS of Phoenix, Arizona. It allows members to outline the terms and conditions of buying out other members' membership units, such as pricing, payment terms, and procedures for transferring ownership. 2. Cross-Purchase Agreement: In this type of buy-sell agreement, individual LLC members agree to purchase the membership units of another member in the event of death, disability, or retirement. The agreement may include provisions for utilizing life insurance policies to fund the purchase. 3. Entity Redemption Agreement: This form of agreement allows the limited liability company itself to buy back the membership units of a departing or deceased member. When life insurance is used to fund the purchase, the LLC becomes the owner and beneficiary of the policy. 4. Wait-and-See Agreement: A wait-and-see agreement combines elements of both cross-purchase and entity redemption agreements. Depending on the circumstances, the agreement allows the purchasing party or the LLC to buy the membership units at a predetermined price or according to a formula specified in the contract. Life insurance can provide the necessary funds for the purchase. 5. Hybrid Agreement: A hybrid agreement combines different aspects of multiple buy-sell agreement types. It offers enhanced flexibility by allowing individual members or the LLC to choose the best approach to fulfill the purchase obligation, potentially using life insurance proceeds. In conclusion, Phoenix, Arizona buy-sell or stock purchase agreements between individual members covering membership units in an LLC can have various types, offering options to fund the purchase through life insurance. These agreements provide a framework for smooth transitions of ownership while ensuring the financial security and stability of the LLC.
