The Start Up Business Partnership Agreement is a crucial document for entrepreneurs establishing a business partnership in the Philippines' growing startup ecosystem. It is particularly relevant in situations where multiple founders or partners come together to establish an innovative business venture, requiring clear delineation of roles, responsibilities, and ownership structures. The agreement must comply with Philippine legislation, including the Civil Code, Corporation Code, and relevant commercial laws, while addressing modern business needs such as intellectual property protection, digital assets, and scalable business models. This document is essential for protecting all parties' interests, establishing clear operational frameworks, and providing mechanisms for growth and potential external investment. It typically includes detailed provisions for capital contributions, profit sharing, decision-making processes, intellectual property rights, confidentiality, non-competition, and exit strategies, making it a fundamental tool for startup success.
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1. Parties: Identifies and provides full details of all partners entering the agreement
2. Background: Outlines the context and purpose of forming the partnership, including the business concept and objectives
3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation
4. Partnership Formation: Establishes the creation of the partnership, its name, and business purpose
5. Capital Contributions: Details initial and any agreed future capital contributions from each partner
6. Ownership and Profit Sharing: Specifies ownership percentages and how profits/losses will be distributed
7. Management and Decision Making: Outlines management structure, voting rights, and decision-making processes
8. Roles and Responsibilities: Defines specific roles, duties, and commitments of each partner
9. Intellectual Property: Addresses ownership and protection of IP created before and during the partnership
10. Confidentiality: Establishes confidentiality obligations regarding business information
11. Non-Competition and Non-Solicitation: Sets restrictions on competitive activities and solicitation of employees/clients
12. Financial Management: Covers accounting practices, banking, financial records, and reporting requirements
13. Transfer of Interest: Procedures for transferring partnership interests and restrictions thereof
14. Exit Provisions: Details processes for partner withdrawal, retirement, or death
15. Dissolution and Termination: Procedures for partnership dissolution and asset distribution
16. Dispute Resolution: Mechanisms for resolving disputes between partners
17. Governing Law: Specifies Philippine law as governing law and jurisdiction
1. Vesting Schedule: For partnerships where ownership interests vest over time based on continued participation
2. Technology Development: For tech startups, detailing technology development responsibilities and ownership
3. International Operations: For startups planning to operate internationally, covering foreign operations and compliance
4. External Investment: Procedures for accepting external investment and resulting ownership dilution
5. Employee Stock Option Pool: For partnerships planning to implement employee equity incentives
6. Social Media and Brand Management: Guidelines for managing the startup's social media presence and brand
7. Environmental and Social Responsibility: For startups with specific environmental or social impact goals
8. Data Protection and Privacy: Detailed procedures for compliance with data protection laws, especially for tech startups
1. Schedule A - Initial Capital Contributions: Detailed breakdown of each partner's initial capital contributions, including valuations of non-cash contributions
2. Schedule B - Business Plan: Initial business plan including market analysis, financial projections, and growth strategy
3. Schedule C - Intellectual Property Register: List of all intellectual property owned or licensed by the partnership
4. Schedule D - Partner Contact Information: Detailed contact information and designated representatives for each partner
5. Schedule E - Vesting Schedule: If applicable, detailed vesting schedule for ownership interests
6. Appendix 1 - Management Procedures: Detailed procedures for day-to-day management and decision-making processes
7. Appendix 2 - Financial Procedures: Detailed procedures for financial management, including approval processes and reporting templates
8. Appendix 3 - Technology Stack: For tech startups, documentation of technology infrastructure and development roadmap
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