Partnership Agreement with Mandatory Buy-Out

Use this template to prepare a Partnership Agreement with mandatory buy-out between two companies and the principals of each company. Provisions of the agreement include:

• 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.

This is a generic legal agreement in MS Word format, and is not specific to any country or region.