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Family Business Partnership Agreement
"Need a Family Business Partnership Agreement for our third-generation manufacturing company to formalize the entry of my two children into the business from March 2025, including specific provisions for profit sharing and future succession planning."
1. 1. Parties: Identification and details of all family members entering the partnership
2. 2. Background: History of the family business and context for the agreement
3. 3. Definitions: Key terms used throughout the agreement
4. 4. Partnership Structure: Legal structure, ownership percentages, and capital contributions
5. 5. Management and Decision Making: Roles, responsibilities, and voting rights of partners
6. 6. Profit Sharing: Distribution of profits and losses among partners
7. 7. Financial Matters: Capital accounts, drawings, and financial management procedures
8. 8. Business Operations: Day-to-day management and operational procedures
9. 9. Exit Provisions: Procedures for retirement, death, or voluntary exit from the partnership
10. 10. Dispute Resolution: Procedures for handling disagreements and conflicts
1. Succession Planning: Detailed provisions for next generation transition and inheritance planning
2. Intellectual Property Rights: Ownership and protection of intellectual property within the family business
3. Employment Terms: Specific terms and conditions for family members working in the business
4. Non-Competition: Restrictions on partners competing with the family business
5. Family Council: Structure and operation of family governance body
1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partners' initial investments and contributions
2. Schedule 2: Business Assets: Comprehensive list of business assets and their ownership status
3. Schedule 3: Family Constitution: Family values, principles, and guidelines governing the business
4. Schedule 4: Valuation Methodology: Agreed method for valuing partnership interests
5. Schedule 5: Decision Making Matrix: Detailed breakdown of voting rights and decision-making thresholds
Authors
Business
Business Day
Capital Account
Capital Contribution
Commencement Date
Confidential Information
Core Family Members
Default Event
Defaulting Partner
Drawing Account
Effective Date
Eligible Family Member
Extended Family
Fair Market Value
Family Advisory Board
Family Business Constitution
Family Council
Family Member
Financial Year
Founding Partners
Governing Law
Initial Capital
Intellectual Property Rights
Management Board
Management Committee
Next Generation
Non-Family Partner
Partnership
Partnership Assets
Partnership Interest
Partnership Property
Profit Share
Qualifying Family Member
Retirement
Succession Plan
Territory
Transfer
Valuation Date
Withdrawal Notice
Business of the Partnership
Capital Contributions
Profit and Loss Sharing
Management and Decision Making
Family Governance
Banking and Financial Matters
Accounting and Records
Partners' Duties and Obligations
Employment of Family Members
Confidentiality
Intellectual Property
Non-Competition
Admission of New Partners
Succession Planning
Death of Partner
Retirement
Voluntary Withdrawal
Forced Withdrawal
Valuation
Transfer Restrictions
Dispute Resolution
Family Council Meetings
Next Generation Integration
Asset Protection
Distribution Policy
Voting Rights
Amendment Procedures
Termination
Dissolution
Force Majeure
Notices
Governing Law
Severability
Entire Agreement
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