Buyout Agreement

The Buyout Agreement is a legally enforceable contract between a buyer and a service provider. This agreement specifies the terms and circumstances for the buyer to assume the remaining obligations and rights of the provider from a prior agreement. The main goal of the buyout is to shift ownership of all products, intellectual property rights, and continuing responsibilities related to website development services from the seller to the purchaser.

Purpose of a Buyout Agreement

The buyout agreement policy at American Web Builders serves multiple critical purposes for the smooth running and sustainable expansion of our work. Firstly, it aims to offer transparency and certainty by explicitly defining the procedures and duties related to ownership changes. Clarity reduces uncertainty and disagreements, providing a smooth procedure.

This aims to guarantee business continuity by supporting seamless ownership transitions, ensuring ongoing operations despite significant changes in ownership structure. Our policy also intends to safeguard the interests of all stakeholders, including as co-owners, shareholders, employees, and clients, by implementing equitable and transparent buyout procedures. Our buyout agreement strategy promotes stability and governance inside the firm by following legal and regulatory standards, ensuring responsibility and transparency, and building confidence among stakeholders.

Triggers of a Buyout Agreement

Our buyout agreement policy includes many triggers that can initiate the start of a buyout agreement to ensure a smooth transition of control inside American Web Builders. These triggers are important occurrences that require a methodical approach to guarantee justice and consistency.

Death or Disability:

The death or disability of a client or shareholder can trigger the buyout agreement. This guarantees that the affairs of the deceased or incapacitated individual are managed properly, while also enabling the firm to maintain its operations seamlessly.


When a client or shareholder reaches retirement age or chooses to depart from the business willingly, the buyout agreement can be utilized to smooth the transfer of their ownership stake. This allows the retiring individual to receive appropriate remuneration while facilitating a smooth transition of ownership for the organization.

Voluntary Departure:

If a co-owner or shareholder chooses to leave the business for personal reasons, the buyout agreement can be activated to handle the transfer of their ownership stake. This guarantees a smooth transition while safeguarding the interests of all parties concerned.


Irreconcilable conflicts or disputes between clients or shareholders can lead to the buyout agreement being activated. This offers a method for settling issues and aiding in the organized separation of the people involved, guaranteeing least disturbance to the organization.

Changes in Ownership:

Substantial alterations in the ownership composition of the business, including the inclusion of new service providers or the departure of current service providers, can trigger the buyout agreement. This guarantees the protection of the rights and interests of all stakeholders and maintains the stability of the process during ownership changes.

Financial Distress:

During financial trouble or bankruptcy of a client or shareholder, the buyout agreement can be utilized to manage the impact on ownership interests. This safeguards the firm and its interests while offering financial assistance to the party in hardship.

Absence or Unresponsiveness from Client:

An extended absence or lack of response from a client can activate the buyout agreement from the services provider. This scenario could occur as a result of factors including extended illness, incapacity, or unforeseen personal events. If the client remains unresponsive for 365 days or more, upon severance of the contract, they will incur a 20% deduction from their deposited amount. For example, a client deposits $10,000 as part of the agreement. If they remain unresponsive for 365 days or more, and the contract is severed, they will face a deduction of 20% from their deposited amount.
So, 20% of $10,000 is $2,000. Therefore, upon severance of the contract due to the client's prolonged unresponsiveness, they would receive $8,000 (original deposit of $10,000 minus the deduction of $2,000) refunded to them.

Compliance of Buyout Agreement

1. Buyout of Services:

1.1. The Buyer agrees to buy out and assume all rights and obligations of the Provider under the Previous Agreement, including but not limited to:

  • (a) Transfer of all deliverables, including source code, documentation, and other materials developed under the Previous Agreement.
  • (b) Access to all intellectual property rights associated with the deliverables, including copyrights, trademarks, and patents.
  • (c) Transfer of any ongoing maintenance and support obligations.

1.2. The Provider agrees to provide all necessary assistance and cooperation to facilitate the smooth transition of services to the Buyer in 45 days, including but not limited to:

  • (a) Providing documentation, training, and support to Buyer's personnel as necessary.
  • (b) Assisting with the transfer of domain names, hosting accounts, and other assets related to the website development services.

2. Consideration:

2.1. In case there is an outstanding payment, the Client shall send it to the Provider within 60 days of the execution of this Agreement, in accordance with the terms specified herein.

3. Release and Indemnification:

3.1. Upon receipt of the Buyout Amount, the Provider hereby releases and forever discharges the Buyer from any and all claims, demands, liabilities, damages, expenses, and causes of action of any nature, known or unknown, arising out of or in any way connected to the Previous Agreement.
3.2. The Provider agrees to indemnify, defend, and hold harmless the Buyer from any claims, losses, liabilities, damages, costs, and expenses (including reasonable attorneys' fees) arising out of any breach of the representations, warranties, or obligations under the Previous Agreement.

4. Confidentiality:

4.1. The parties agree to keep confidential all terms and conditions of this Agreement and any information disclosed by either party in connection with this Agreement, except to the extent necessary to comply with legal obligations or enforce their rights hereunder.
4.2. The Provider agrees not to disclose any proprietary information or trade secrets of the Buyer obtained during the course of providing website development services.

5. Intellectual Property:

5.1. The Provider represents and warrants that it has the full right, power, and authority to transfer all intellectual property rights associated with the deliverables to the Buyer.
5.2. The Provider agrees to execute any additional documents necessary to perfect the transfer of intellectual property rights to the Buyer, including but not limited to assignment agreements and trademark registrations.

6. Non-Compete:

6.1. The Provider agrees not to directly or indirectly engage in any business or provide services that compete with the Buyer's business following the execution of this Agreement within region.

7. Miscellaneous:

7.1. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, relating to such subject matter.
7.2. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
7.3. This Agreement shall be governed by and construed in accordance with the laws of the state, without regard to its conflicts of law principles.
7.4. Any dispute arising out of or in connection with this Agreement shall be finally settled by arbitration in accordance with the rules of the state by arbitrators appointed in accordance with said rules.
7.5. This Agreement may be amended or modified only by a written instrument executed by both parties.