Buy Sell Agreement

BUY-SELL AGREEMENT. This is a contractual document used by a corporation and its shareholders to establish clear rules governing the transfer of ownership interests upon specified triggering events. This agreement is commonly used in closely held or professional corporations to ensure continuity of ownership and management. The agreement outlines events that require a mandatory sale of shares—such as a shareholder’s death, disability, disqualification from professional practice, or termination of employment—and requires the corporation to repurchase those shares at a defined price. It also restricts voluntary transfers, provides rights of first refusal, sets valuation methods (including book value and insurance proceeds), and specifies payment terms, often supported by life insurance. www.FormsWorkflow.com