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FORM 5.3— Withdrawal Agreement |
Price: $40.00
Revised: October 1, 2008 - 12 pages
Description:
Form 5.3 provides for the purchase by an LLC of te interest of one of its member. The form has been prepared for use in a situation in which a member has withdrawn from the LLC and the other members have elected to continue the LLC and to cause the LLC to purchase the member's interest in accordance with the terms of the company's operating agreement. The form can, however, easily be modified for use in other situations in which a member's interest is being purchased, such as the death or disability of a member.
Features:
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Capital gains - Redemption agreement specifies that purchase price payments are capital gains to the redeemed member under IRC sec. 736(b).
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Dissociation - Redemption agreement provides for the consent of the other members to the continuation of an LLC following an event of dissociation of a member and redemption of the affected member's interest.
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Indemnification - Redemption agreement provides that the other members will indemnify the redeemed member against claims arising from the redeemed member's participation in the LLC.
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Life insurance - Redemption agreement provides that a life insurance policy owned by the LLC is transferred to a redeemed member at the time of the redemption.
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Representations and warranties - Redemption agreement contains warranties of title and good right to transfer.
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Sale, terms - Redemption agreement provides for payment of purchase price in installments and for a security interest in the assigned interest.
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| WORD FORMAT |
Form ID: 5003-DOC
Title: Withdrawal Agreement
Price: $40.00 |
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| RTF FORMAT |
Form ID: 5003-RTF
Title: Withdrawal Agreement
Price: $40.00 |
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