Buyout Agreement Example

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The model sale agreement below describes an agreement between the shareholders of ABC, Inc., regarding the purchase and sale of shares of the company. Shareholders agree to the conditions under which shares may be transferred and any restrictions on the transfer of shares. These agreements are often compared to marriage contracts for companies. They determine what happens to the ownership of the business when one of the owners (or individual entrepreneurs) undergoes life changes that may influence the continuation of the business itself. Life changes can range from divorce or bankruptcy to death. The buy-sell agreement protects the business and the remaining owners from the effects of an owner`s personal life that can impact the business.