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A buy and sell agreement, also known as a buy-sell agreement, is a legally binding contract that stipulates how a partner's share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, the buy and sell agreement stipulates that the available share be sold to the remaining partners or to the partnership.
Below is a list of common sections included in Buy And Sell Agreements. These sections are linked to the below sample agreement for you to explore.
B UY -S ELL A GREEMENT
This Buy-Sell Agreement (the “Agreement”) relates to and governs certain ownership interests in Whiteglove House Call Health, Inc., a corporation organized under and governed by the laws of the state of Texas (the “Company”), and is made and entered into as of the 13th day of June, 2007 (the “Effective Date”) by and among the Company and individuals Robert Fabbio and William Rice, MD (each individually referred to as an “Owner” and both together collectively referred to as the “Owners”).
W HEREAS , the Company is a corporation organized under the laws of the state of Texas, including, without limitation, the Texas Business Organizations Code, as amended from time to time, and all other applicable federal and state laws, and is governed by the Certificate of Formation and Bylaws previously adopted by the Company and as amended from time to time (the “Governing Documents”);
W HEREAS , the Owners desire to enter into this Agreement to set forth in writing their agreements regarding certain transfers or proposed transfers of their shares of the capital stock of the Company (the “Ownership Interests”);
N OW T HEREFORE , in consideration of the mutual covenants, rights, and obligations set forth in this Agreement, the benefits to be derived therefrom, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Owners, the Owners individually and collectively agree as follows:
1. Scope of Agreement . This Agreement shall apply to all transfers other than Permitted Transfers of Ownership Interests owned by any Owner, whether such Ownership Interests are owned as of the Effective Date or acquired thereafter. For purposes of this Agreement, the term “transfer” shall mean any sale, exchange, delivery, assignment, bequeath, pledge, mortgage, hypothecation, or other encumbrance, transfer or disposition of any Ownership Interest, whether voluntarily, involuntarily, or by operation of law (including without limitation the laws of bankruptcy, intestacy, descent and distribution and succession). Except for Permitted Transfers, partial transfers of Ownership Interests and transfers to anyone but the other Owner or such Owner’s estates in the event of the death of an Owner are prohibited. A “Permitted Transfer” shall mean (i) any transfer of Ownership Interests by Owner to a trust, partnership, corporation, limited liability company or other similar entity owned exclusively by such Owner for the benefit of such Owner, or (ii) any transfer of Ownership Interests expressly permitted hereunder; provided, however, that each transferee in such Permitted Transfer shall, as a condition precedent to such transfer, become a party to this Agreement by executing an Adoption Agreement substantially in the form attached as Annex A and shall have all of the rights and obligations of an Owner hereunder, and all interests in any trust, partnership, corporation, limited liability company or other similar entity to which any Ownership Interests are transferred shall themselves be deemed Ownership Interests and shall be subject to all of the provisions hereof. Such transferred Ownership Interests shall remain “Ownership Interests” hereunder, and such transferee shall be treated as an “Owner” for the purposes of this Agreement.
2. Transfer for any Reason . Transfers of Owners’ Interests other than Permitted Transfers shall be governed by this Section 2.
(a) In the event that either Owner (the “Selling Party”) desires to transfer its Ownership Interest other than pursuant to a transfer defined in item (i) of the definition of Permitted
Transfer, the Selling Party shall send a notice of offer (the “Offer Notice”) to the other Owner (the “Offeree Party”). The offer set forth in the Offer Notice shall be irrevocable for a period of thirty (30) calendar days from receipt by the Offeree Party.
(b) Whenever an Offer Notice has been sent by a Selling Party:
(i) The Purchase Price of the Ownership Interest offered for sale by the Selling Party shall be provided by the Selling Party in the Offer Notice and shall be determined in the Selling Party’s sole discretion. The Offer Notice shall also include the terms of sale of the Selling Party’s Ownership Interest including, without limitation, the closing date of the sale, payment dates and amounts, non-monetary terms of the proposed sale, and any other matters germane to the closing of the sale of the Selling Party’s Ownership Interest.
(ii) If the Offeree Party elects to purchase the Selling Party’s Ownership Interest pursuant to the provisions of this Section 2(b) and the terms contained in the Offer Notice, it must send written notice thereof to the Selling Party within thirty (30) days of its receipt of the Offer Notice. If the Offeree Party elects not to purchase the Selling Party’s Ownership Interest within thirty (30) days, then the Selling Party must purchase the Offeree Party’s Ownership Interest for the same price and upon the same terms contained in the Offer Notice made with respect to the Selling Party’s Ownership Interest.
(c) The Company shall keep at its principal place of business a book or record containing, among other things, the name and address of each of its Owners. No transfer of any Ownership Interest shall be effective or valid unless and until all requirements of the Governing Documents shall have been fulfilled and all of the provisions of this Agreement have been satisfied with respect to such transfer, and the transfer has been recorded in such book or record. Upon compliance with the provisions of this Agreement and with the requirements of the Governing Documents, the Company shall record the transfer of such Ownership Interest. A copy of this Agreement shall be maintained by the Company among its records.
(d) Upon the closing of any purchase of any Ownership Interest pursuant to Section 2 of this Agreement, the Selling Party shall deliver to the purchaser the following: (i) the certificate or certificates, if any, representing the Ownership Interest being sold, duly endorsed for transfer and bearing such documentary stamps, if any, as are necessary; and (ii) such assignments, certificates of authority, tax releases, consents to transfer, instruments and evidences of title of the transferring party and of the transferring party’s compliance with this Agreement and the Governing Documents as may be reasonably required by the purchaser or by counsel for the purchaser.
3. General Provisions .