Q: Is it normal to have a clause for mandatory buyback of minority partner in a LLC operating agreement?
I am potentially buying a share in an existing LLC. The first draft of the operating agreement says that if the minority partner (me) leaves employment (whether I quit or am fired), that I can be forced to sell back shares at 75% of the investment amount. This seems a little odd to me, but I'm not sure what is typical. I would assume at the very least it would be based on the fair market value, not the investment amount. Also, what reason would there be to be forced to sell the share in the company back?
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