The Non-Equity Partner Agreement is essential for professional services firms operating in Indonesia who wish to appoint senior professionals to partner-level positions without extending equity ownership. This document is crucial for establishing a clear framework for non-equity partnership arrangements while ensuring compliance with Indonesian legal requirements, including the Civil Code and labor laws. It addresses key aspects such as profit sharing, voting rights, client relationships, and partnership obligations, while incorporating necessary bilingual provisions as mandated by Indonesian law. The agreement is particularly relevant for firms implementing tiered partnership structures and provides a pathway for senior professionals to assume partnership responsibilities while maintaining the firm's existing ownership structure.
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1. Parties: Identification of the law firm/company and the non-equity partner
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Terms of appointment as non-equity partner and duration
5. Rights and Responsibilities: Detailed outline of partner's rights, duties, and authority levels
6. Compensation and Benefits: Structure of compensation, profit-sharing, and benefits package
7. Performance Expectations: Required billing hours, client management, and performance metrics
8. Governance and Decision Making: Partner's role in firm management and voting rights
9. Confidentiality: Protection of firm's confidential information and client data
10. Intellectual Property: Ownership of work product and firm's intellectual property
11. Non-Competition and Non-Solicitation: Restrictions during and after partnership
12. Termination: Grounds and procedures for termination of the agreement
13. General Provisions: Standard clauses including governing law, notices, and amendments
1. International Practice: Required if partner will be involved in cross-border practice
2. Branch Office Management: Needed if partner will manage specific office locations
3. Teaching and Publishing: Regulations regarding academic and publishing activities
4. Pro Bono Commitments: If firm has specific pro bono requirements for partners
5. Partnership Track: If agreement includes pathway to equity partnership
6. Retirement Benefits: If firm offers retirement packages to non-equity partners
7. Language Provisions: Required if agreement is bilingual Indonesian/English
1. Schedule 1: Compensation Structure: Detailed breakdown of base compensation, bonus structure, and profit-sharing formula
2. Schedule 2: Performance Metrics: Specific KPIs and performance evaluation criteria
3. Schedule 3: Benefits Package: Detailed list of benefits and allowances
4. Schedule 4: Office Locations: List of firm offices where partner may practice
5. Schedule 5: Client Portfolio: List of assigned clients and responsibilities
6. Appendix A: Partnership Policies: Firm's relevant policies and procedures
7. Appendix B: Insurance Requirements: Professional indemnity and other required insurance details
8. Appendix C: Expense Policy: Guidelines for business expense claims and reimbursements
Relevant legal definitions
Clauses
Relevant Industries
Legal Services
Professional Services
Accounting
Management Consulting
Advisory Services
Tax Services
Corporate Services
Business Services
Relevant Teams
Legal
Partnership Committee
Board of Directors
Executive Committee
Human Resources
Professional Development
Compliance
Operations
Finance
Practice Management
Relevant Roles
Managing Partner
Senior Partner
Non-Equity Partner
Partner Track Associate
Senior Associate
Practice Group Leader
Department Head
Professional Services Director
Senior Manager
Director
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