Prepare a Partnership Agreement with Mandatory Buy-Out
with this comprehensive template.
- The partners agree not to compete with the partnership's business.
- All decisions must be unanimous.
- The partnership's business will be run by a management committee appointed by the partners.
- Each partner has a right of first refusal to acquire the partnership interest of a departing partner.
- A partner wishing to withdraw may issue a mandatory (shotgun) buy-sell notice to the other partners.
- There is also a mandatory buy-sell provision upon the death of a partner, whereby the surviving partner(s) must purchase the interest of the deceased partner, with the buy-out funded by life insurance policies purchased on each of the principals.
- Upon the disability of a partner, the remaining partner(s) will have the option to wind up the partnership or buy out the disabled partner's interest.
The Partnership Agreement with Mandatory Buy-Out
template is available as a fully editable MS Word document, which can be easily customized to fit your business needs.