Partnership Dissolution Agreement Specifies the terms for dissolving a business partnership, including asset distribution, liability settlement, and dissolution process.
1.1. Consideration and Background
WHEREAS, the Partners have been conducting business as a limited liability partnership under the firm name Sterling Capital Advisors LLP (the "Partnership");
AND WHEREAS, the Partners wish to dissolve and terminate the Partnership upon the terms and conditions set forth in this Agreement;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
2.1. Effective Date of Dissolution
Subject to the terms and conditions of this Agreement, the Partners acknowledge and agree that the Partnership shall be dissolved as of the Effective Date.
3.1. Distribution of Assets
As soon as reasonably practicable following the Effective Date, and subject to the provisions of this Agreement, the Partners shall distribute the Partnership's tangible and intangible assets (the "Assets"), net of any liabilities (the "Liabilities") associated with such Assets, in accordance with their respective ownership interests in the Partnership.
3.2. Valuation of Assets
All Assets of the Partnership shall be valued at their fair market value on the Effective Date or as close to the Effective Date as is reasonably possible. Such valuations shall be performed by an independent appraiser mutually agreed upon by the Partners.
3.3. Disposal of Assets
Returns from the sale or disposal of Assets, if any, shall be distributed amongst the Partners in proportion to their respective ownership interests.
4.1. Settlement of Liabilities
All Liabilities of the Partnership, whether accrued, vested, or contingent, shall be promptly settled, discharged, or fully provided for as of the Effective Date. The Partners shall be individually and jointly responsible for meeting their respective obligations in relation to the Liabilities, proportionate to their respective ownership interests in the Partnership, to the extent required by applicable law.
4.2. Indemnification
Each Partner agrees to indemnify and hold harmless the other Partner(s) from and against any loss, liability, claim, damages, or expenses, including without limitation, reasonable attorney's fees and disbursements, arising out of or in connection with a breach or alleged breach by the indemnifying Partner of its obligations in relation to the Liabilities under this Agreement or under the laws applicable to the Partnership.
5.1. Notice to Creditors
As soon as reasonably practicable after the Effective Date, the Partners shall give written notice to all creditors of the Partnership, informing them of the dissolution of the Partnership, and the intention to settle all outstanding Liabilities in accordance with this Agreement and applicable law.
5.2. Tax Filings
The Partners shall promptly file or cause to be filed all final federal, state, and local income tax returns for the Partnership, and shall make any and all required payments of taxes, penalties, and interest in respect of such returns.
5.3. Notice of Dissolution to Government Authorities
Within a reasonable period following the Effective Date, the Partners shall provide written notice to the relevant government authorities in accordance with applicable law, of the dissolution and winding down of the Partnership.
5.4. Record Retention
The Partners shall retain and maintain copies of the Partnership's records for a period of not less than six (6) years following the Effective Date as required by applicable law.
6.1. Governing Law and Jurisdiction
This Agreement shall be governed by and construed in accordance with the laws of the United States.
6.2. Entire Agreement
This Agreement constitutes the sole and entire agreement between the Partners with respect to the subject matter herein, and supersedes all prior or contemporaneous understandings, negotiations, and agreements, whether written or oral, relating to the subject matter herein.
6.3. Severability
In the event that any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable or invalid, such unenforceability or invalidity shall not affect the enforceability or validity of other provisions of this Agreement, and the unenforceable or invalid provision shall be deemed severed from the remainder of this Agreement.
6.4. Binding Effect
This Agreement shall inure to the benefit of and shall be binding upon the Partners and their respective heirs, executors, administrators, successors, and permitted assigns.
6.5. Amendments
This Agreement may be amended or modified only by a written instrument executed by all of the Partners.
6.6. Counterparts
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
In this Partnership Dissolution Agreement, you will see the following sections:
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