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Form #734Sale of LLC Interest Agreement
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SALE OF LLC INTEREST AGREEMENT
This Agreement
is entered this the __________ day of __________, [year], by and between
___________________ (Name), hereinafter referred to as Seller, and
______________________ (Name), hereinafter referred to as Purchaser.
WITNESSETH:
WHEREAS, the
parties hereto desire that a __________ percent (_______%) interest in the
capital and profits of ____________________________________ (Name of LLC),
hereinafter referred to as LLC, be sold to Purchaser pursuant to this Agreement
on the date and at the time provided for herein ________________________(the
"Effective Date"); and
WHEREAS, the
parties hereto desire to set forth certain representations, warranties, and
covenants made by each to the other as an inducement to the consummation of the
sale and certain additional agreements related to the sale;
NOW,
THEREFORE, in consideration of the premises and of the mutual representations,
warranties, and covenants herein contained, the parties hereby agree as
follows:
ARTICLE I
1.1 Subject
to the terms and conditions set forth herein, the closing of this sale of LLC
interest shall be held on __________________, 19_______.
1.2 The
Seller shall sell the said LLC interest for a total purchase price of
__________________ dollars ($____________), consisting of ___________________
dollars ($____________) in cash plus the assumption of debts worth
_______________ dollars ($____________).
Such purchase
price represents interest in the following assets of the LLC with such total
purchase price to be divided among the assets as follows:
Fixtures and
equipment (as set forth in Exhibit A) $__________
Real estate (as
set forth in Exhibit B) $__________
Inventory $__________
Accounts
receivable $__________
Cash type
assets $__________
Good will $__________
(You must
attach lists of the fixtures and equipment and real estate of the LLC on
separate sheets to be titled Exhibit A and Exhibit B respectively.)
1.3 The
Seller shall tender to Purchaser at the closing a fully executed bill of sale
for the interest being transferred.
1.4 The
Purchaser shall deliver at the closing its certified or cashiers check in the
amount of _________________________ dollars ($_______) as well as its fully
executed note for the balance of the purchase price. Such note shall bear
interest at a rate of __________ percent (_____%) and shall be payable in equal
______________ (Specify Period, i.e., Monthly) payments
_________________ (Plus or Including) interest payable on the
____________ (Day, i.e., Fifteenth) of each ______________ (Term,
i.e., Month, Year, etc.) beginning ________________ (Month &Day),
_______ (Year).
ARTICLE II
2.1 Seller
represents and warrants to Purchaser that as of the date hereof and on the
Effective Date (all representations and warranties being joint and several):
(a) To
the best of Sellers knowledge and belief, the LLC has good and marketable title
to all properties, assets, and leasehold estates, real and personal, as set
forth in the attached Exhibit A, subject to no mortgage, pledge, lien,
conditional sales agreement, encumbrance, or charge, except for:
(1)
liens reflected on the attached Schedule 1 as securing specified liabilities (with
respect to which no default exists)(you should attach a list of liens
securing specified liabilities on a separate sheet labeled Schedule 1) ;
and
(2)
liens for current taxes and assessments which are currently not in default;
and
1
(3)
liens arising by operation of law of which, except to the extent disclosed on
the attached Schedule 2 (you should attach a list of any liens arising by
operation of law on a separate sheet labeled Schedule 2), the Seller has no
knowledge of any such liens existing.
(b) The
Seller has delivered to Purchaser a list (Schedule 3) (you should
attach a list of all the LLCs insurance policies on a separate sheet labeled
Schedule 3), complete in all material respects, as of ________________ (Month
&Day), _______ (Year),
of all
insurance policies carried by the LLC. The LLC carries insurance on its
properties, assets, and business, which Seller believes to be adequate in
character and amount, with reputable insurers and such insurance policies are
still in full force and effect.
(c) In
all respects material to the business, financial condition, and properties of
the LLC on a consolidated basis, the LLC is not in default under any law or
regulation, or under any order of any court or federal, state, municipal, or
other governmental department, commission, board, bureau, agency, or
instrumentality wherever located, and, except to the extent set forth on the
attached Schedule 2 there are (1) no claims, actions, suits, or proceedings
instituted or filed or, (2) to the knowledge of the Seller there are no claims,
actions, suits, or proceedings threatened presently or which in the future may
be threatened against or affecting the LLC at law or in equity, or before or by
any federal, state, municipal, or other governmental department, commission,
board, bureau, agency, or instrumentality wherever located.
ARTICLE III
3.1 At or
before the Closing Date:
(a) The
Seller's Members (or Seller and the other Members of the LLC if Seller is
not the LLC itself) will cause Seller (or LLC if Seller is not the LLC
itself) to:
(1)
Carry on its business substantially as it has heretofore and not introduce any
materially new method of management, operation or accounting;
(2)
Perform all material obligations under agreements which relate to or affect its
assets, properties, and rights;
(3)
Use its best efforts to maintain and preserve its business organization intact,
retain its present employees, and maintain its relationships with suppliers,
customers, and others having business relations with them;
(4)
Maintain its properties and facilities in as good working order and condition
as at present, ordinary wear and tear excepted; and
(5)
Keep in full force and effect present insurance policies or other comparable
insurance coverage.
(b) The
Members will not permit the Seller (or if the LLC itself is not the Seller:
The Seller and the other Members of the LLC will not permit the LLC),
without the prior written consent of the Purchaser, to:
(1)
Enter into any contract or commitment or incur or agree to incur any liability
or make any capital expenditures except in the normal course of business;
(2)
Create, assume, or permit to exist any mortgage, pledge, or other lien or
encumbrance upon any assets or properties whether now owned or hereafter
acquired;
(3)
Increase the compensation payable or to become payable to any Member, employee,
or agent, or make any bonus payment to any such person; or
(4)
Sell, assign, lease, or otherwise transfer or dispose of any property or
equipment except in the normal course of business.
ARTICLE IV
4.1 The
Sellers obligations hereunder are, at its option, subject to the satisfaction
of the following condition on or prior to the Effective Date:
(a) If
Purchaser is a corporation, the Seller shall have received a copy of the
resolutions authorizing the execution, delivery, and performance of this
Agreement by Purchaser certified by the Secretary of Purchaser to have been
adopted by Purchasers Board of Directors and to be in full force and effect as
of the Effective Date.
ARTICLE V
5.1 If
Purchaser is a corporation, Purchaser represents and warrants to Seller as of
the date hereof and on the Effective Date, that the execution, delivery, and
performance of this Agreement by Purchaser has been duly authorized by
Purchasers Board of Directors and that the Agreement constitutes the valid and
binding obligation of Purchaser and that a properly certified Board of
Directors resolution to this effect will be presented to Seller before the
Effective Date.
ARTICLE VI
6.1 The
parties hereto shall deliver or cause to be delivered on the Effective Date,
and at such other times and places as shall be reasonably agreed on, such
additional instruments as may reasonably be requested for the purpose of
carrying out this Agreement. Seller will cooperate and use its best efforts to
have the present Members and employees of Seller (or LLC if the LLC itself
is not the Seller) cooperate on and after the Effective Date in furnishing
information, evidence, testimony, and other assistance in connection with any
actions, proceedings, arrangements, or disputes of any nature with respect to
matters pertaining to all periods prior to the Effective Date.
6.2 This
Agreement (including the schedules and annexes hereto) and the documents
delivered pursuant hereto constitute the entire agreement and understanding
between the parties and supersede any prior agreement and/or understanding
relating to the subject matter of this Agreement. This Agreement may only be
modified or amended by a duly authorized written instrument executed by the
parties hereto.
6.3 This
Agreement may be executed simultaneously in two or more counterparts. Each
counterpart shall be deemed an original, and all of the counterparts together
shall constitute but one and the same instrument.
6.4 Any
notice or communication required or permitted hereunder shall be sufficiently
given if sent by certified or registered mail, postage prepaid, with return
receipt requested:
(a) To
Purchaser at:
_______________________________________
_______________________________________
_______________________________________
(b) To
Seller at:
_______________________________________
_______________________________________
_______________________________________
6.5 All
warranties, covenants, representations, and guarantees shall survive the
closing and execution of the documents contemplated by this Agreement. In
executing and carrying out the provisions of this Agreement, the parties hereto
are relying solely on the representations, warranties, and agreements contained
in this Agreement or in any writing delivered pursuant to its provisions or at
the closing of the transactions herein provided for and not upon any
representation, warranty, agreement, promise, or information, written or oral,
made by any person other than as specifically set forth herein or therein.
6.6 This
Agreement shall be construed in accordance with the laws of the State of
___________________________.
IN WITNESS
WHEREOF, the parties have executed this Agreement as of the day and year first
above written.
1__________________________________
Purchaser
__________________________________
Seller
Witnesses:
___________________________________
___________________________________
___________________________________
STATE OF
_________________________
County of
__________________________
On this
__________ day of __________, ___, before me personally appeared
______________________, known to me to be the person described in and who
executed the foregoing instrument and acknowledged that he or she executed the
same as ____________________s own free act and deed.
__________________________ ______________________
(County)
Notary Public ______________________
(State)
My Commission
Expires: __________
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