Sample Buy-Sell Agreement Template Page 5
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14and "Payment Terms" sections of this agreement.
An owner is who is unable to perform his regular duties is considered disabled.
If disability insurance is used to fund a buyout under this provision, the insurance
company shall establish whether an owner is disabled; without disability insurance,
the owner's doctor will establish whether an owner is disabled. An owner who
becomes disabled according to this section is referred to as a "disabled owner"
below.
Scenario 3. When an Owner Dies
[You may check Option 1, Option 2, both, or neither below.
Check Option 1 if you want the company and continuing owners to have the right to
buy a deceased owner's interest.]
[ ]
Option 1: Option of Company and Continuing Owners to Purchase a Deceased
Owner's Interest
An owner who dies and the executor or administrator of the estate or the trustee of a
trust holding the ownership interest are deemed to have offered the deceased
owner's interest to the company and the continuing owners for sale as of the date of
the notice of death received orally or in writing by the company. The company and
the continuing owners shall then have an option, but not an obligation (unless
otherwise stated in this agreement), to purchase all or part of the ownership interest
within sixty (60) days after the date on which the company receives notice or
becomes aware of the death. The price to be paid, the manner of payments, and
other terms of the purchase shall be according to the "Agreement Price" and
"Payment Terms" sections of this agreement. An owner who has died is referred to
as a "deceased owner" below.
[Check Option 2 below if you want the estate, trust, or inheritors of a deceased
owner to be able to force the company to buy his or her interest. This right can be
in addition to Option 1 (company and continuing owners' right to purchase)
above.]
[ ]
Option 2: Right of Estate, Trust, or Inheritors to Force a Sale
Sample Buy-Sell Agreement
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business