The Startup Business Partnership Agreement serves as a foundational document for entrepreneurs establishing a startup venture in the Philippines. It is specifically designed to address the unique challenges and requirements of startup businesses, taking into account the provisions of the Philippine Revised Corporation Code, the Innovative Startup Act, and other relevant legislation. This agreement is essential when two or more parties wish to formalize their business relationship in a startup context, clearly defining ownership stakes, management roles, capital contributions, and profit-sharing arrangements. It includes specific provisions for intellectual property protection, future funding rounds, and exit strategies, which are crucial for technology-driven and innovative businesses. The document helps prevent future disputes by establishing clear guidelines while remaining flexible enough to accommodate the rapid growth and changes typical in startup environments.
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1. Parties: Identification and details of all partners entering the agreement
2. Background: Context of the partnership formation and brief description of the business venture
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Partnership Structure: Legal form of partnership, business name, and registered address
5. Purpose and Scope: Detailed description of the business purpose and permitted activities
6. Capital Contributions: Initial and subsequent capital contributions, valuation of non-cash contributions
7. Ownership and Profit Sharing: Partnership interests, profit/loss distribution ratios, and dividend policy
8. Management and Decision Making: Governance structure, voting rights, and decision-making processes
9. Roles and Responsibilities: Specific duties and commitments of each partner
10. Intellectual Property Rights: Ownership and protection of IP, including pre-existing IP and newly developed IP
11. Confidentiality: Protection of business secrets and confidential information
12. Non-Competition: Restrictions on competing activities during and after partnership
13. Term and Termination: Duration of partnership and conditions for termination
14. Exit Provisions: Procedures for partner withdrawal, transfer of interests, and buyout terms
15. Dispute Resolution: Process for resolving disagreements and applicable jurisdiction
16. General Provisions: Standard legal clauses including notices, amendments, and governing law
1. Vesting Schedule: Used when equity interests are subject to vesting periods, particularly for sweat equity contributions
2. Employee Stock Option Pool: Include when planning to implement an ESOP for future employees
3. External Investment Provisions: Required if the partnership anticipates seeking external investment
4. Technology Development: Specific provisions for tech startups regarding development responsibilities and ownership
5. International Operations: Include for startups planning to operate across borders
6. Data Protection: Detailed provisions for startups handling significant personal or sensitive data
7. Environmental Compliance: Necessary for startups in industries with environmental impact
8. Social Media and Brand Guidelines: Include for startups where brand presence is crucial
9. Founder Commitments: Specific time commitment and exclusivity requirements for founders
1. Schedule A - Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions
2. Schedule B - Business Plan: Initial business plan and key milestones
3. Schedule C - Intellectual Property Register: List of all IP assets brought into or developed by the partnership
4. Schedule D - Partner Information: Detailed information about each partner including contact details and qualifications
5. Schedule E - Vesting Schedule: Detailed vesting terms and conditions if applicable
6. Schedule F - Reserved Matters: List of decisions requiring special majority or unanimous consent
7. Schedule G - Valuation Methodology: Agreed methods for valuing partnership interests
8. Appendix 1 - Company Policies: Key operational policies and procedures
9. Appendix 2 - Technical Specifications: Technical details of products or services if relevant
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