DIY Legal Forms

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Right To Expel Partners

1. Vote Requirement. A Partner may be expelled by [number, e.g., two-thirds, majority, unanimous] vote of the other Partners for any of the reasons provided in Paragraph 2.

2. Reasons for Expulsion. Reasons for which expulsion is authorized are limited to the following:

a. Acting in a manner detrimental to the partnership's (Partnership) business or reputation

b. Being adjudged guilty of committing a felony under the laws of any state of the United States

c. Defaulting under the terms of this Agreement, and failing to cure such default after receipt of written notice of default from Partnership

d. Being adjudged insane or mentally incapacitated

e. Utilizing Partnership's business for the Partner's personal benefit

3. Expelled Partner's Rights. If a Partner is expelled, the voting Partners will give the Partner written notice of the expulsion, including an explanation of the reasons for the expulsion. The expelled Partner, on receipt of the notice of expulsion, will have [number] days to request a hearing. Such request must be made in writing. If a hearing is requested, the expelling Partners will appoint an impartial third party, and the expelled Partner will appoint another impartial third party. Both such third parties will, in turn, jointly appoint an additional impartial party. The panel composed of these three impartial parties will decide whether the expulsion is authorized under the terms of this Agreement.

4. Rights of Remaining Partners. If the expulsion is confirmed in such hearing, or if the expelled party does not request a hearing, the remaining Partners may continue the business of Partnership without liquidating Partnership. The expelled Partner will be paid [formula or criteria, e.g., the sum stated in the expelled Partner's capital account plus accrued but unpaid profits]. The remaining Partners will furnish all indemnification and "hold harmless" agreements regarding Partnership operations that may be reasonably requested by the expelled Partner.