Yes we do have a draft agreement that your client can use with their legal advisers as a basis for their own agreement.
The agreement automatically includes a double option on the death of a partner or shareholder. This gives the family of someone who dies an option to sell their share of the business to the other owners. It also gives the other owners an option to buy that share from the family. If either side exercises their option then the other must comply.
The agreement can also include either a single option or a double option in the event that one of the owners is diagnosed with a critical illness.
The single option gives the ill person an option to sell their share of the business to the other owners. If exercised, the other owners must buy the ill person’s share, but there is no option for the other owners to force the ill person to sell.
The double option also contains an option for the ill person to sell their share to the other owners. But it also contains an option for the other owners to buy the ill person’s share if they do not return to work within a specified period, usually 12 months. If either side exercises their option, the other must comply. This gives some protection for the ill person from being forced out if they are able to return within a reasonable time. It also gives some protection for the other owners from having to support an ill person and their family when they are unable to contribute to the business because of their illness.