Free Buy-Sell Agreement Outline

I. Introduction

This Buy-Sell Agreement (“Agreement”) is made and entered into as of August 21, 2050, by and between the following parties:

• [Your Name], residing at 1234 Business Ave, Suite 100, Cityville, CA, 56789

• John Smith, residing at 5678 Commerce Rd, Apt 3B, Townsville, CA, 12345

The purpose of this Agreement is to outline the terms and conditions under which the business interest in [Your Company Name] will be bought or sold.

II. Definitions

For purposes of this Agreement, the following terms shall have the meanings set forth below:

1. Business Interest: The ownership interest in [Your Company Name], including all rights, title, and interest therein.

2. Purchase Price: The amount agreed upon by the parties for the sale of the Business Interest.

3. Valuation Date: The date on which the Business Interest is valued for the purpose of this Agreement.

4. Triggering Event: An event that initiates the buy-sell provisions outlined in this Agreement.

III. Purchase Price

The Purchase Price for the Business Interest shall be determined based on the valuation method outlined in Section V. The Purchase Price will be paid in the manner specified in Section VI.

IV. Terms of Sale

The sale of the Business Interest shall be conducted as follows:

1. Notice of Intent: The selling party must provide written notice of their intent to sell to the other party at least 60 days prior to the proposed sale date.

2. Agreement to Sell: Upon receiving notice, the buying party has the right to purchase the Business Interest on the terms outlined in this Agreement.

V. Valuation

The valuation of the Business Interest shall be conducted by a qualified appraiser selected by mutual agreement of the parties. The appraiser's valuation will be final and binding on both parties.

1. Valuation Method: The appraiser shall use the Discounted Cash Flow (DCF) method for valuation.

2. Valuation Date: The valuation shall occur on December 1, 2050, or as otherwise agreed by the parties.

VI. Payment Terms

Payment of the Purchase Price shall be made according to the following terms:

1. Payment Schedule: The Purchase Price shall be paid in 5 equal installments over a period of 12 months, with the first payment due on January 15, 2051.

2. Interest: Payments shall bear interest at a rate of 5% per annum, if applicable.

3. Method of Payment: Payments shall be made by bank transfer to the account specified by the receiving party.

VII. Buyout Triggers

The following events shall trigger the buy-sell provisions of this Agreement:

1. Death: The death of a business owner.

2. Disability: Permanent disability preventing a business owner from performing their duties.

3. Retirement: The retirement of a business owner.

4. Voluntary Exit: A business owner’s voluntary decision to sell their interest.

VIII. Dispute Resolution

In the event of a dispute arising out of or related to this Agreement, the parties agree to the following:

1. Negotiation: The parties shall first attempt to resolve the dispute through informal negotiation.

2. Mediation: If negotiation fails, the parties shall submit to mediation before a mutually agreed mediator.

3. Arbitration: If mediation fails, the dispute shall be resolved by arbitration in accordance with the rules of the American Arbitration Association.

IX. Miscellaneous

1. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of California.

2. Amendments: Any amendments to this Agreement must be made in writing and signed by all parties.

3. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements or understandings.

X. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Buy-Sell Agreement as of the date first above written.

[Your Name]
[Your Company Name]

John Smith

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