Partnership Buyout Agreement
This Partnership Buyout Agreement ("Agreement") is entered into as of [Date], by and between [Partner 1] ("Partner 1"), residing at 2381 Williams Lane, KS 67202, and [Partner 2] ("Partner 2"), residing at Lowndes Hill Park RoadBakersfield, CA 93304, collectively referred to as the "Partners."
1. Purpose of Agreement
This Agreement aims to clearly define and establish the terms, conditions, and rules that apply and must be followed in a situation where one Partner expresses an interest in buying out or taking over the ownership stake of the other Partner involved in the same business partnership.
2. Buyout Terms
2.1 Purchase Price: The stipulated price for the acquisition of [Partner 1]'s entrepreneurial share or interest by Partner 2 will be ascertained according to a mode of valuation, for instance, the fair market value, that is mutually agreed upon and consented to by both parties involved.
2.2 Payment Terms: Upon conclusion of this Agreement, Partner 2 has been designated as the party responsible for disbursing the agreed-upon purchase price to[ Partner 1].
The payment will be structured in a manner as previously discussed and agreed upon - it may consist of a series of installments, the amount of which would have been stipulated, or it may be a singular lump-sum payment.
Regardless of the choice of payment method, the requisition for payment becomes effective and enforceable within a predefined timeframe following the effective date of this Agreement, for instance, this might be 90 days.
2.3 Assets and Liabilities: Partner 2 shall assume all assets and liabilities related to [Partner 1]'s ownership interest in the partnership as part of the buyout, except as expressly agreed upon otherwise in writing.
3. Closing
3.1 Closing Date: The closing of the buyout shall occur on [Date], or such other date as mutually agreed upon by the Partners.
3.2 Delivery of Documents: At the closing,[Partner 1] shall deliver to Partner 2 all necessary documents, certificates, and instruments required to transfer ownership of[Partner 1]'s interest in the partnership to Partner 2.
3.3 Consideration: In consideration for the transfer of ownership as outlined in Section 3.2, Partner 2 shall pay [Partner 1] the agreed-upon buyout amount as stipulated in the Partnership Agreement, or as otherwise negotiated between the Partners.
4. Representations and Warranties
4.1 Authority: Each Partner represents and warrants that they have full authority to enter into this Agreement and carry out its terms and conditions.
4.2 No Violation: Each Partner represents and warrants that the execution and performance of this Agreement will not violate any applicable law or any agreement to which they are a party.
4.3 Accuracy of Information: Each Partner represents and warrants that all information provided to the other Party under this Agreement is true, accurate, and complete to the best of their knowledge and belief at the time of provision.
5. Governing Law
The stipulations and interpretations of this Agreement shall be regulated and formed under the legal jurisdiction of [State/Country], with no consideration given to its provisions and rules that concern conflicts arising between different legal systems.
6. Entire Agreement
This Agreement embodies the full comprehension and mutual consent between the Partners concerning the subject matter contained herein. It takes precedence over and replaces all earlier agreements and understandings, irrespective of whether they were expressed in written form or verbally, that are connected to the same subject matter.
IN WITNESS WHEREOF, the Partners have executed this Agreement as of the date first above written.
[Partner 1]
[Date Signed]
[ Partner 2]
[Date Signed]
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