The Working Partner Agreement serves as a crucial document when bringing new partners into an existing business who will contribute both capital and labor. This agreement is commonly used across various industries in the United States where individuals seek to become active participants in business ownership while maintaining operational roles. It covers essential elements such as capital contributions, profit sharing, voting rights, management responsibilities, and exit provisions. The agreement must comply with both federal and state partnership laws, ensuring proper structure of the working relationship while protecting all parties' interests.
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1. Parties: Identification and details of all partners entering the agreement
2. Background: Context and purpose of the partnership arrangement
3. Definitions: Key terms used throughout the agreement
4. Partnership Structure: Legal form and organization of the partnership
5. Capital Contributions: Initial and ongoing financial commitments
6. Profit and Loss Sharing: Distribution of profits and allocation of losses
7. Management Rights: Decision-making authority and voting rights
8. Term and Termination: Duration and conditions for ending the partnership
1. Non-Compete: Restrictions on competitive activities when protecting business interests from partner competition
2. Intellectual Property Rights: Ownership and use of IP in cases where intellectual property is significant to the business
3. Buy-Sell Provisions: Terms for buying out partners when planning for potential partner exits
1. Schedule A - Capital Contributions: Detailed breakdown of each partner's initial investments
2. Schedule B - Profit Sharing Formula: Detailed calculation method for profit distribution
3. Schedule C - Partner Responsibilities: Specific duties and roles of each partner
4. Appendix 1 - Business Plan: Partnership's strategic objectives and operational plans
Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
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