Business Lawyers for Indiana

The voting rights should be based on what the parties determine to be appropriate based on your particular teaming arrangement. You also should consider if there is any voting requirement based on an end-user for the joint venture (e.g., governmental authority may require a majority ownership by one of the joint venturers as well as majority voting rights as in the case of an 8(a) certified entity).

It's important to note that this is not an exhaustive list, and specific considerations may vary depending on the circumstances. Consulting with a qualified attorney is crucial to tailor the agreement to your specific needs. Here are some key areas to focus on: 1. Stock Description: Clearly define the shares being purchased, including the class of stock, number of shares, and any special rights or restrictions associated with the shares. You absolutely want to see the full record of the articles of incorporation, bylaws and any possibly existing shareholder agreements that could modify your rights in any way. 2. Purchase Price and Payment Terms: Specify the agreed-upon purchase price, payment structure (e.g., lump sum or installment), and any contingencies or adjustments based on audited financial statements or other factors. 3. The stock sale transaction is approved by the Board of Directors and possibly the Shareholders. You should be able to see the corporate action, either as a Written Consent or a Resolution taken by vote and certified by the corporate Secretary, who is the officer responsible for recording the minutes. 4. Representations and Warranties: Require the seller to make certain representations and warranties regarding the company's financial condition, assets, liabilities, contracts, intellectual property, compliance with laws, and any pending litigation. 5. Conditions Precedent: Specify the conditions that must be met before the transaction can be completed, such as obtaining necessary regulatory approvals, consents, or waivers. 6. Due Diligence: You should conduct thorough due diligence on the company, its financial records, contracts, intellectual property, and any other relevant aspects to identify any potential issues or risks. Generally, an acknowledgement of your access to, and conduct of, due diligence is good to include in the agreement. 7. Proper completion of any securities filing. Particularly if you are not the only investor, past present, or future, you should expect and require the company to be compliant with securities rules. Failure to observe the securities rules is red flag. 8. Governing Law and Jurisdiction: Determine the governing law and jurisdiction that will apply to the interpretation and enforcement of the agreement. Remember also that if you are investing in a corporation that is incorporated in a state other than where you reside, that state corporation law will generally govern your shareholder rights.

Typically, if the business fails, the note can then not be converted or repaid. Unless you have personally guaranteed the obligation which would be unusual, the recourse would be against the entity itself.

Congratulations on purchasing a business. Payment by the buyer in an asset purchase agreement can take many forms, or a combination of forms. The simplest is 1) a lump-sum, in which the total purchase price for the business is paid upfront, or 2) installment payments, in which the purchase price is divided into multiple installments over a specified period. It is a good idea to implement some conditional provisions for payment, which provides more protection for the buyer. Options include 3) an earn-out provision, which is used when the final purchase price is contingent on the future performance of the acquired assets or business. The seller may receive additional payments if certain financial targets or milestones are achieved post-acquisition; 4)contingent payments, in which you agree on a lower base purchase price, and additional payments by buyer are made only when triggered by specific events or outcomes, such as new acquisitions or product milestones. Regardless of model used, in most cases I recommend 5) escrow, in which the buyer place a portion of the purchase price in an escrow account for a certain period of time, say 12 months, in order to cover indemnification claims and disputes that arise after acquisition, that were not disclosed or unforeseen during the due diligence process. It is crucial to have the advice of an attorney you can trust through the asset purchase process. Please contact my firm if I may be of service. www.hitiklaw.com

I have extensive experience creating LLCs for clients. I am also an experienced elder law attorney who understands estate planning and how a family trust and LLC can work with your estate planning goals.