When you start a new company, we are often asked about creating a buy-sell agreement in case somebody leaves the company or in case you want to remove somebody from the company. The issues are quite complex, and it is a much more difficult agreement to put together and get signed than almost any other agreement when you are starting a company. Usually when you start a company, we put in a right of first refusal if anyone goes to sell their stock, but we do not build the buy-sell agreement until later on when the shareholders have a chance to think about what they want to do and then they can afford the time, energy, and legal fees in putting together a thoughtful buy-sell agreement.
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