The Buy-Out Option
Over time, when the Partner Facility grows financially stronger and wishes to own the equipment issued under the Partnership - the Partner Facility can pay the difference between the Total Partnership Value and their initial Partner Facility Contribution.
If the original Total Partnership Value was R100 000 and the initial Partner Facility Contribution was R60 000, then the Buy-Out Payment will be R40 000.
Important: The sum of the monthly Partnership Profit payments made to MATS, during the period of the Partnership, is a profit-sharing component and is therefor excluded from, and cannot be taken into account when calculating the Buy-Out payment.
Fulfilling the Buy-Out terms will
a) terminate the agreement between the Partner Facility and MATS,
b) stop the Monthly Partnership Profit payments to MATS,
c) transfer full ownership of The Equipment from MATS to the Partner Facility and
d) issue a tax invoice to the Partner Facility for the equipment (mats).