Partnership Ownership Agreement
This Partnership Ownership Agreement is entered into on January 1, 2050, by and between the following parties: [YOUR NAME], residing at [YOUR COMPANY ADDRESS], and Etha Lehner, residing at Cleveland, OH 44101. This Agreement sets forth the terms and conditions under which the partners will operate a partnership known as [YOUR COMPANY NAME], a partnership formed under the laws of Ohio.
I. Purpose of the Partnership
The purpose of this partnership is to operate a business involved in the development, marketing, and sale of innovative software solutions for small businesses. The business will be conducted under the name [YOUR COMPANY NAME] with the primary objective of achieving profitability, growth, and expansion in the target market.
II. Ownership Shares
The partners agree to the following ownership distribution:
Partner Name | Ownership Percentage |
|---|
[YOUR NAME] | 60% |
Etha Lehner | 40% |
The ownership percentages represent each partner's financial stake and responsibilities in the business. Each partner's contribution is outlined in the next section.
III. Contributions
Each partner has agreed to contribute to the partnership as follows:
[YOUR NAME]: Contributes $500,000 in capital and agrees to manage marketing and operations.
Etha Lehner: Contributes $300,000 in capital and will manage the financial aspects and customer relations.
The partners may agree to additional contributions at a later time, which must be documented in an amendment to this Agreement.
IV. Profit and Loss Distribution
The profits and losses of the partnership will be distributed according to the ownership percentages specified in Section II. Any profits generated by the business will be split as follows:
Profit Distribution | [Partner 1 Name] | [Partner 2 Name] |
|---|
Total Profit | 60% | 40% |
Losses, if any, will also be shared in the same proportion as profits.
V. Decision-Making
Decisions for the business will be made as follows:
Major Decisions (such as business expansion, partnerships, or changes in business direction) require unanimous consent from both partners.
Day-to-Day Operations (such as daily management, employee hiring, and minor expenses) may be made independently by each partner, provided they do not exceed $50,000 in a single transaction without mutual approval.
VI. Exit and Succession Plan
If any partner wishes to exit the business, they must provide at least 90 days' notice. The remaining partner has the option to purchase the exiting partner’s share based on a valuation agreed upon by both parties at the time of the exit. If the exiting partner is not replaced, the business may continue under the existing structure or be dissolved.
VII. Dispute Resolution
In the event of a dispute that cannot be resolved through mutual discussion, the partners agree to engage in mediation facilitated by a neutral third party. If mediation does not resolve the dispute, the partners will proceed with binding arbitration as the next step.
VIII. Miscellaneous
This Agreement represents the entire understanding between the partners and supersedes all prior agreements or understandings related to the partnership. Any amendments to this Agreement must be made in writing and signed by both partners.
This Partnership Ownership Agreement is executed on January 1, 2050, and is binding on all partners and their respective heirs, successors, and assigns.
Signed:
[YOUR NAME]
Date: January 1, 2050
Etha Lehner
Date: January 1, 2050
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