Question: is this a comprehensive unitholders agreement for any situation? Answer: this is a very comprehensive and substantial document designed to cater for all situations. It is an alternative to other unitholders agreements on offer. Question: what is the difference between this document and the other unitholders agreements? Answer: the difference is that it is normally used for succession planning . In all other respects it is the same as other unitholders agreements. Question: what is "key man"? Answer: this refers generally to insurance driven exit strategies for unitholders. In other words, insurance premiums are paid (normally by the trustee) and if any unitholder (or its covenantor) dies or becomes disabled, then those moneys are utilised to acquire the units of the dead/disabled unitholder. Question: what is the flow of funds in an insurance driven exit strategy? Answer: the funds from the payout of the policy are received by the heirs of the dead unitholder and the remaining unitholders normally don't have to find the purchase money which may be difficult. Question: does this agreement cater for all other inter unitholder type relationships and issues? Answer: yes. It is designed to do so. Obviously there will always be issues that have to be added specifically. You should be mindful of this.
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Unitholders agreement with keyman clauses
