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Llc Buyout Agreement
"I need an LLC Buyout Agreement for our California-based technology consulting firm where I, as the retiring founding member, will sell my 40% membership interest to the remaining three members in equal portions, with payments structured over 24 months starting March 2025."
1. Parties: Identification of the selling member(s), purchasing member(s), and the LLC
2. Background: Context of the transaction, current ownership structure, and reason for the buyout
3. Definitions: Key terms used throughout the agreement
4. Purchase and Sale of Interest: Core transaction terms including the membership interest being sold
5. Purchase Price: Agreed value and payment terms for the membership interest
6. Closing: Timing, location, and mechanics of the transaction closing
7. Representations and Warranties of Seller: Seller's assertions about ownership, authority, and status of the interest being sold
8. Representations and Warranties of Buyer: Buyer's assertions about authority and capability to complete the purchase
9. Covenants: Actions parties must take or refrain from before and after closing
10. Conditions to Closing: Requirements that must be met before the transaction can close
11. Tax Matters: Treatment of tax liabilities and obligations related to the transfer
12. Release: Mutual release of claims between parties post-closing
13. Confidentiality: Obligations regarding non-disclosure of sensitive information
14. Indemnification: Obligations to protect each party from certain losses or claims
15. General Provisions: Standard legal provisions including notices, amendments, governing law, etc.
1. Earnout Provisions: Used when part of the purchase price is contingent on future performance
2. Non-Compete Provisions: Used when the seller needs to be restricted from competing post-sale
3. Transition Services: Used when the seller will provide operational support post-closing
4. Employee Matters: Used when the buyout affects employment relationships or agreements
5. Intellectual Property Rights: Used when IP ownership or licensing needs to be addressed
6. Bank Accounts and Banking Matters: Used when banking relationships need to be transferred or modified
7. Real Estate Matters: Used when the LLC owns or leases real property that needs special attention
8. Environmental Matters: Used when environmental liabilities or compliance issues exist
1. Schedule A - Membership Interest Description: Detailed description of the membership interest being transferred
2. Schedule B - Purchase Price Calculation: Detailed breakdown of how the purchase price was determined
3. Schedule C - Closing Deliverables: List of all documents and items to be delivered at closing
4. Schedule D - Existing Liabilities: List of known liabilities affecting the membership interest
5. Schedule E - Required Consents: List of third-party consents needed for the transfer
6. Appendix 1 - Form of Release: Form of mutual release to be executed at closing
7. Appendix 2 - Transfer Instruments: Forms of documents needed to effect the transfer
8. Appendix 3 - Amended Operating Agreement: Revised LLC operating agreement reflecting new ownership structure
Authors
Real Estate
Professional Services
Manufacturing
Technology
Retail
Healthcare
Construction
Entertainment
Hospitality
Financial Services
Consulting
Agriculture
Transportation
Energy
Legal
Finance
Tax
Corporate Development
Executive Leadership
Mergers & Acquisitions
Compliance
Treasury
Corporate Governance
Business Operations
Chief Executive Officer
Chief Financial Officer
General Counsel
Corporate Attorney
Tax Attorney
Business Development Director
Managing Partner
Corporate Secretary
Financial Controller
Managing Member
Business Owner
Mergers & Acquisitions Director
Investment Manager
Corporate Paralegal
Business Valuation Specialist
Tax Manager
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