Sample Buy-Sell Agreement Template Page 7
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14address of the owner, the name and address of the divorced owner's former spouse,
a description and amount of the interest awarded to the former spouse, and the date
of the court award. If the company does not receive notice from the divorced owner,
an offer to the company and the co-owners is deemed to have occurred when the
company actually receives notice orally or in writing of the court award or
settlement transferring the divorced owner's interest to the owner's former spouse.
The company and the co-owners (including the divorced owner) 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 event triggering the Option to
Purchase. 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.
(b)
A former spouse who sells an ownership interest back to the company or continuing
owners agrees to be responsible for any taxes owed on those sales proceeds.
Scenario 5. Expulsion of Owner
[Check Option 1 below if you want to give the company and the continuing owners
the option to purchase an expelled owner's interest. If you check Option 1, also
check and fill in Options 1a through 1f.]
[ ]
Option 1: Option of Company and Continuing Owners to Purchase an
Expelled Owner's Interest
(a)
When the company has three or more owners, situations may arise in which a group
of owners wish to expel another owner. An owner may be expelled upon a
unanimous vote of all other owners for adequate cause. Upon such expulsion, the
expelled owner is deemed to have offered to sell all of his or her interest to the
company and the continuing owners. 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 thirty (30) days
after the vote to expel the owner. The price to be paid shall be as specified in this
section; if not so specified, then according to the "Agreement Price" section of this
Sample Buy-Sell Agreement
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business