Houston Texas Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse

• Category: Contracts - Buy Sell - Stock Purchases
• State: Multi-State
• City: Houston
• Control #: US-0391BG
• Format: Word; Rich Text

Description

This type of stock purchase and transfer agreements may be between the corporation and the shareholders. Such an agreement is also referred to as a redemption agreement. If this type of agreement is among the shareholders, it is often referred to as a cross purchase agreement. Houston, Texas Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a legally binding contract that outlines the terms and conditions for the purchase and sale of stock in a close corporation, while also considering the involvement of the shareholders' spouses. This agreement is essential for protecting the interests of both parties involved and ensuring a smooth transition of ownership. There are several types of Houston, Texas Shareholders Buy Sell Agreements of Stock in a Close Corporation with Agreement of Spouse, including: 1. Cross-Purchase Agreement: In this type of agreement, the remaining shareholders agree to purchase the shares of a departing shareholder upon certain triggering events, such as death, disability, retirement, or divorce. The agreement also includes provisions regarding the involvement of the spouse and their consent to the sale. 2. Stock Redemption Agreement: With this agreement, the corporation itself agrees to buy back the shares of a departing shareholder. The agreement typically outlines the terms of the redemption, including the price, payment schedule, and conditions for triggering the buyback. The involvement of the spouse is also considered and their consent may be required. 3. One-Way Buy Sell Agreement: In this type of agreement, the departing shareholder can only sell their shares to the remaining shareholders or the corporation itself. The agreement may contain provisions that limit the transferability of shares to external parties, ensuring that the ownership remains within the existing group of shareholders. 4. Two-Way Buy Sell Agreement: This type of agreement provides mutual options for the shareholders to buy and sell shares. If one shareholder wishes to sell, the other shareholder(s) have the option to buy the shares. The agreement may also include provisions involving the spouse's consent and agreement. Key provisions commonly included in a Houston, Texas Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse may include: 1. Purchase Price: The agreed-upon price for the purchase and sale of shares, which can be determined by a pre-determined formula, appraisal, or negotiation. 2. Triggering Events: Events that can trigger the buy and sell provisions, such as death, disability, retirement, divorce, bankruptcy, or voluntary withdrawal. 3. Spousal Consent and Agreement: The agreement of the shareholder's spouse to the sale of shares and their waiver of any rights or claims. 4. Payment Terms: The agreement should outline the payment terms, including the method of payment and any installment options. 5. Valuation Methodology: The agreed method for valuing the shares, which could be based on appraisal, book value, or a specific formula outlined in the agreement. 6. Dispute Resolution: A mechanism for resolving disputes arising from the agreement, such as mediation, arbitration, or litigation. In summary, the Houston, Texas Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a crucial legal instrument that facilitates the purchase and sale of shares while addressing any spousal involvement. With different types of agreements available, shareholders have options that suit their unique circumstances and protect their interests.

Houston, Texas Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a legally binding contract that outlines the terms and conditions for the purchase and sale of stock in a close corporation, while also considering the involvement of the shareholders' spouses. This agreement is essential for protecting the interests of both parties involved and ensuring a smooth transition of ownership. There are several types of Houston, Texas Shareholders Buy Sell Agreements of Stock in a Close Corporation with Agreement of Spouse, including: 1. Cross-Purchase Agreement: In this type of agreement, the remaining shareholders agree to purchase the shares of a departing shareholder upon certain triggering events, such as death, disability, retirement, or divorce. The agreement also includes provisions regarding the involvement of the spouse and their consent to the sale. 2. Stock Redemption Agreement: With this agreement, the corporation itself agrees to buy back the shares of a departing shareholder. The agreement typically outlines the terms of the redemption, including the price, payment schedule, and conditions for triggering the buyback. The involvement of the spouse is also considered and their consent may be required. 3. One-Way Buy Sell Agreement: In this type of agreement, the departing shareholder can only sell their shares to the remaining shareholders or the corporation itself. The agreement may contain provisions that limit the transferability of shares to external parties, ensuring that the ownership remains within the existing group of shareholders. 4. Two-Way Buy Sell Agreement: This type of agreement provides mutual options for the shareholders to buy and sell shares. If one shareholder wishes to sell, the other shareholder(s) have the option to buy the shares. The agreement may also include provisions involving the spouse's consent and agreement. Key provisions commonly included in a Houston, Texas Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse may include: 1. Purchase Price: The agreed-upon price for the purchase and sale of shares, which can be determined by a pre-determined formula, appraisal, or negotiation. 2. Triggering Events: Events that can trigger the buy and sell provisions, such as death, disability, retirement, divorce, bankruptcy, or voluntary withdrawal. 3. Spousal Consent and Agreement: The agreement of the shareholder's spouse to the sale of shares and their waiver of any rights or claims. 4. Payment Terms: The agreement should outline the payment terms, including the method of payment and any installment options. 5. Valuation Methodology: The agreed method for valuing the shares, which could be based on appraisal, book value, or a specific formula outlined in the agreement. 6. Dispute Resolution: A mechanism for resolving disputes arising from the agreement, such as mediation, arbitration, or litigation. In summary, the Houston, Texas Shareholders Buy Sell Agreement of Stock in a Close Corporation with Agreement of Spouse is a crucial legal instrument that facilitates the purchase and sale of shares while addressing any spousal involvement. With different types of agreements available, shareholders have options that suit their unique circumstances and protect their interests.