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Term Sheet For Partnership Agreement
"I need a Term Sheet For Partnership Agreement for a new technology consulting firm with three founding partners, where we want to emphasize equal profit sharing and include specific provisions for intellectual property developed during the partnership."
1. Parties: Identification and details of all prospective partners
2. Background: Context and purpose of the partnership
3. Definitions: Key terms used throughout the term sheet
4. Business Purpose: Proposed activities and scope of the partnership
5. Capital Contributions: Initial and ongoing capital requirements
6. Profit Sharing: Proposed distribution of profits and losses
7. Management Structure: Decision-making processes and authority levels
8. Term and Termination: Duration and exit provisions
1. Intellectual Property Rights: IP ownership and licensing arrangements - include when IP is crucial to the partnership
2. Non-Compete Provisions: Restrictions on competitive activities - include when partners may have competing interests
3. International Operations: Cross-border considerations - include for partnerships operating in multiple jurisdictions
4. Regulatory Compliance: Specific regulatory requirements - include for regulated industries
1. Schedule 1: Initial Capital Contributions: Detailed breakdown of partners' initial investments
2. Schedule 2: Business Plan: Initial business strategy and projections
3. Schedule 3: Partner Details: Detailed information about each partner
4. Schedule 4: Key Performance Indicators: Metrics for measuring partnership success
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