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One way buy sell agreement

One-Way Buy-Sell Agreement between Sole Business Owner and Key Employee(s) 2026

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The document is a sample One-Way Buy-Sell Agreement designed for a sole business owner and key employees, outlining the terms for transferring ownership of a business entity upon triggering events such as death or disability of the owner. It emphasizes the necessity of legal counsel for modifications, includes provisions for life insurance to fund the purchase, and establishes rights of first refusal for employees in case of sale to outside parties. The agreement also details valuation methods, payment terms, and conditions under which it may be amended or terminated.

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Click ‘Get Form’ to open the One-Way Buy-Sell Agreement in the editor.
Begin by filling in the date and names of the Owner and Employees at the top of the document. Ensure all parties are correctly identified.
In the 'WHEREAS' section, specify the business entity type and its address. This establishes the context for the agreement.
Detail each Employee's percentage ownership in the designated section. This is crucial for determining their stake in the business.
Review sections regarding triggering events such as death or disability. Ensure that these provisions align with your specific circumstances.
Complete any necessary fields related to insurance policies listed in Schedule B, ensuring all details are accurate for future reference.
Finally, have all parties sign where indicated, confirming their agreement to the terms outlined within this document.

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2016	4.6 Satisfied (61 Votes)

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Does an LLC need a buy-sell agreement?

A buy-sell agreement is essential for any LLC with two or more members. It provides a clear framework for ownership transfers in scenarios such as retirement, death, disputes, or other docHub events.

What are the three types of buy-sell agreements?

Before a buy-sell agreement is prepared for the business and its owners, the owners must, at a minimum, consider the following: What type of arrangement is best? There are three basic types of buy-sell agreements: (i) a redemption arrangement, (ii) a cross-purchase arrangement and (iii) a hybrid arrangement.

How do you write a buy-sell agreement?

Below are four critical topics you and your lawyer should consider when drafting your companys buy-sell agreement. Identify the Parties Involved. Agree on the Trigger Events. Agree on a Valuation Method. Set Realistic Expectations and Frequently Review the Agreement Terms. About the Author.

Who needs a buy-sell agreement?

A buy-sell agreement makes sense for any type of privately held business entity, no matter the size, as the most basic business can experience unexpected events and disputes among the owners.

What are the disadvantages of a buy-sell agreement?

One docHub disadvantage is the potential for liquidity issues. For instance, if the agreement requires the company or remaining owners to buy out a departing owners share, there must be enough liquid assets available to cover the purchase without harming the businesss operational capacity.

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