Membership Interest Redemption Agreement

Contract -- Business -- Redemption Agreement

LLC member redemption agreement with partial financing.

This Membership Interest Redemption Agreement Template addresses the sale and transfer of a member's membership interest in a limited liability company (LLC) back to the company. Key topics addressed include:

1. Sale of Membership Interest – Outlines the transfer of ownership and associated documentation.
2. Purchase Price & Payment Terms – Specifies payment methods, promissory note terms, and related security provisions.
3. Indemnification – Protects the selling member from future claims or liabilities associated with the LLC.
4. Termination of Membership Rights – Rescinds the member’s rights to management, distributions, and tax allocations.
5. Representations & Warranties – Confirms the member’s authority to transfer ownership and the interest’s free-and-clear status.
6. Releases – Resolves all pre-existing claims and liabilities between the parties.
7. Security Interest – Includes personal guarantees and conditions for asset sales to secure payment obligations.
8. Miscellaneous Provisions – Covers governing law, notices, survival of terms, and waivers of operating agreement provisions.

This is not legal advice, and is not intended for use by consumers. This template is offered to licensed AllDrafts users as a resource for lawyers who are responsible for adapting this draft to their client's specific needs and circumstances and ensuring compliance with applicable laws.