3. EVENTS THAT TRIGGER STOCK SALES. As stated previously, death, retirement, bankruptcy and/or divorce frequently trigger the sale of the stock of a shareholder. It is very important that Shareholder Control Agreements list these and any other events that, upon their happening, are treated as an immediate offer to sell the shares. Other events may include: termination of employment of a shareholder, conviction of a felony, or, where appropriate, the loss of a professional license. Where desired, the Shareholder Control Agreement may state that certain events trigger a reduction in the purchase price or less favorable method of valuation.

4. PROCEDURES ON TRANSFER. A Shareholder Control Agreement also encompasses the procedures by which shares are transferred and compensation for those shares paid.

5. COVENANTS NOT TO COMPETE AND PROPRIETARY INFORMATION. Shareholder Control Agreements often include terms that are most often seen in employment contracts such as: Covenants not to Compete, Confidentiality Agreements, Return of Proprietary Information and/or Client or Buyer lists.

If you would like more information about disputes among business owners and/or shareholder disputes, please contact us at 612-240-8005 or e-mail maury@beaulier.com

http://www.minnesotalawyers.com

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