A “kick-out” clause is a lease provision that commercial tenants can use to reduce their financial risk in a long-term lease. A kick-out clause gives the tenant the right to terminate the lease at a fixed time in the lease term if certain conditions, typically sales benchmarks, are not met. For example, a tenant in a … Continue reading
I recently reviewed a Member Control Agreement between several LLC members. I did not draft the agreement, and stray references to “shares” leads me to believe that it was cobbled together from a Buy-Sell Agreement found online. The MCA had many of the common features of an MCA, including a right of first refusal of … Continue reading
Most business owners are familiar with share certificates, which are tangible evidence of ownership of an equity interest in a corporation. Shareholders own a portion of the total number of shares issued by the corporation. If I own 10 shares of a corporation that has issued 100 shares, I have a 10% equity interest in … Continue reading
