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Partner Buyout Agreement for United Arab Emirates

Partner Buyout Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that facilitates the purchase of one or more partners' interests in a business by other partner(s). The document is structured to comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and other relevant UAE regulations. It details the terms and conditions of the buyout, including purchase price, payment terms, warranties, representations, and post-completion obligations. The agreement also addresses specific UAE requirements such as potential needs for Arabic translation, notarization, and regulatory approvals where applicable.

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Partner Buyout Agreement

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What is a Partner Buyout Agreement?

The Partner Buyout Agreement is a crucial document used when one or more partners wish to exit a business while selling their ownership interest to remaining partners in the United Arab Emirates. This agreement is essential for ensuring a smooth transition of ownership while maintaining business continuity and complying with UAE legal requirements. It becomes necessary in various scenarios such as retirement, strategic disagreements, or pursuit of other opportunities. The document comprehensively addresses valuation methodology, payment terms, warranties, and both pre- and post-completion obligations. It must align with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and other relevant regulations, potentially requiring Arabic translation and notarization. The agreement is particularly important in protecting all parties' interests by clearly defining rights, obligations, and the process for transferring ownership interests.

What sections should be included in a Partner Buyout Agreement?

1. Parties: Identification of all parties involved in the agreement, including the selling partner(s), purchasing partner(s), and the company

2. Background: Context of the partnership, reason for buyout, and current ownership structure

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase of Partnership Interest: Core terms of the transaction including the partnership interest being transferred

5. Purchase Price and Payment Terms: Agreed valuation, payment structure, and payment mechanisms

6. Completion: Details of when and how the transfer will be completed, including required actions and documentation

7. Warranties and Representations: Statements of fact and promises made by both parties regarding their capacity, authority, and the state of the business

8. Pre-Completion Obligations: Actions required from parties before the completion date

9. Post-Completion Obligations: Ongoing obligations after the transfer is completed

10. Confidentiality: Provisions regarding confidential information and its protection

11. Non-Compete and Non-Solicitation: Restrictions on the selling partner's future business activities

12. Release and Discharge: Mutual release of claims and liabilities between parties

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Partner Buyout Agreement?

1. Ongoing Litigation Provisions: Include when there are pending legal matters involving the company or partners

2. Intellectual Property Rights: Include when significant IP assets need to be addressed specifically

3. Employee Matters: Include when the selling partner has specific relationships with key employees

4. Tax Indemnities: Include when specific tax liabilities need to be allocated between parties

5. Transitional Services: Include when the selling partner needs to provide ongoing support post-completion

6. Bank Accounts and Financial Arrangements: Include when complex financial arrangements need to be unwound

7. Property Matters: Include when real estate assets are significant to the transaction

8. Outstanding Loans and Debts: Include when there are significant inter-partner loans or company debts

What schedules should be included in a Partner Buyout Agreement?

1. Schedule 1 - Partnership Interest Details: Detailed description of the partnership interest being transferred

2. Schedule 2 - Purchase Price Calculation: Detailed breakdown of valuation and price calculation methodology

3. Schedule 3 - Completion Requirements: Checklist of all documents and actions required for completion

4. Schedule 4 - Company Assets: Comprehensive list of company assets and their status

5. Schedule 5 - Warranties: Detailed warranties given by both parties

6. Schedule 6 - Encumbrances: List of any existing encumbrances on the partnership interest

7. Appendix A - Company Financial Statements: Recent financial statements used for valuation

8. Appendix B - Required Regulatory Approvals: List of necessary regulatory approvals and their status

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Cost

Free to use
Relevant legal definitions






















































Clauses















































Relevant Industries

Professional Services

Real Estate

Retail

Manufacturing

Technology

Healthcare

Construction

Hospitality

Financial Services

Trading

Consulting

Media and Entertainment

Education

Transportation and Logistics

Relevant Teams

Legal

Finance

Corporate Governance

Executive Leadership

Operations

Risk and Compliance

Business Development

Corporate Affairs

Company Secretariat

Strategy

Relevant Roles

Managing Partner

CEO

CFO

General Counsel

Legal Director

Corporate Lawyer

Business Development Director

Financial Controller

Company Secretary

Managing Director

Board Member

Finance Manager

Operations Director

Partnership Manager

Risk Manager

Compliance Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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