Non Equity Partnership Agreement Template for Denmark

The Non-Equity Partnership Agreement serves as a crucial document for professional firms operating in Denmark who wish to offer senior professionals a partnership status without full equity participation. This agreement type bridges the gap between employee and full partner status, providing a structured framework for professional advancement while managing risk and responsibility allocation. It is particularly relevant for firms looking to retain and reward top talent while maintaining existing ownership structures. The document must comply with Danish partnership law, employment regulations, and tax requirements, making it essential for professional services firms, consulting practices, and other business partnerships operating under Danish jurisdiction. The agreement typically includes detailed provisions for compensation, duties, client relationships, and potential progression to equity partnership, while addressing specific Danish legal requirements regarding partnership structures and professional relationships.

1. Parties: Identification of the partnership entity and the non-equity partner, including full legal names and addresses

2. Background: Context of the agreement, including the partnership's business and the basis for offering the non-equity partnership

3. Definitions: Key terms used throughout the agreement, including 'Partnership', 'Non-Equity Partner', 'Profit Share', etc.

4. Appointment and Status: Terms of appointment as non-equity partner and clarification of their status within the partnership

5. Duration and Term: Period of the agreement, including commencement date and any renewal provisions

6. Duties and Responsibilities: Detailed outline of the non-equity partner's roles, obligations, and expected contributions

7. Time Commitment: Expected working hours and availability requirements

8. Compensation and Benefits: Structure of remuneration, including base salary, bonus arrangements, and benefits

9. Profit Sharing: Method and basis of calculating and distributing profit share, if applicable

10. Expenses and Reimbursement: Policy on business expenses and reimbursement procedures

11. Intellectual Property: Ownership and rights regarding intellectual property created during the partnership

12. Confidentiality: Obligations regarding confidential information and trade secrets

13. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client/employee solicitation

14. Professional Insurance: Requirements for professional indemnity insurance and other coverage

15. Termination: Grounds for termination, notice periods, and consequences of termination

16. Post-Termination Obligations: Continuing obligations after the agreement ends

17. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

18. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments