Sample Buy-Sell Agreement Page 10
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10Final Checklist for Buy-Sell Agreement
Make It Legal
_____ The Buy-Sell Agreement should be signed by a representative of the Company,
perhaps the President or other primary officer. It should also be signed by each
Owner. It is not necessary that the signatures be witnessed or notarized.
_____ It is advisable to have the spouse of each married Owner sign the Buy-Sell
Agreement. In the case of divorce, a spouse may have rights under state law that
allow the spouse to become an Owner of the Company. Therefore, it is important
to have the spouses sign the Buy-Sell Agreement, and it is important to make sure
that the spouses understand the terms of the agreement.
Attachments
_____ The Owners sho uld prepare a list of the applicable insurance policies to attach as
Schedule B (see paragraph V.1) and Schedule C (see paragraph V.2). If no
insurance policies will be obtained under paragraph V.2, simply write "none" on
Schedule C.
Copies
* A copy of the Buy-Sell Agreement should be provided to each Owner and a signed
original copy should be retained by the Company.
When to Consult a Lawyer
* A lawyer should be consulted regarding any legal questions and about the effect of
the Company's state laws on the terms of the Buy-Sell Agreement.
Other Information
* The Buy-Sell Agreement will terminate in accordance with the provisions of Article
VI or by the mutual agreement of the Owners and the Company.
Reasons to Update
* Change the terms of the Buy-Sell Agreement, such as the price, payment terms,
method of funding, or events which trigger application of the agreement.
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