The Simple Joint Venture Agreement is a fundamental business document used when two or more parties wish to collaborate on a specific business venture while maintaining their separate legal identities. This document is particularly relevant in the United States business context, where it must comply with both federal and state-specific regulations. The agreement is commonly used for project-specific collaborations, market expansion, or combining complementary resources and expertise. It includes essential provisions for venture formation, capital contributions, profit sharing, management structure, and operational procedures. The Simple Joint Venture Agreement is especially valuable for businesses seeking to share risks and resources without creating a new corporate entity, making it a flexible tool for various business arrangements from small-scale projects to significant commercial ventures.
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1. Parties: Identification of all joint venture partners with their full legal names and addresses
2. Background: Context of the joint venture formation and brief description of each party's business
3. Definitions: Key terms used throughout the agreement defined for clarity and consistency
4. Joint Venture Scope and Purpose: Clear definition of the venture's business objectives, activities, and limitations
5. Contributions and Capital: Details of initial and ongoing contributions from each party, including cash, assets, or services
6. Ownership and Profit Sharing: Specification of ownership percentages and how profits/losses will be distributed
7. Management and Control: Governance structure, decision-making processes, and voting rights
8. Operations: Day-to-day management responsibilities and operational procedures
9. Rights and Obligations: Core responsibilities and rights of each party in the venture
10. Term and Termination: Duration of the joint venture and circumstances for termination
11. Confidentiality: Protection of confidential information and trade secrets
12. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution
13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Intellectual Property Rights: Detailed provisions for IP ownership, licensing, and development when the JV involves significant IP
2. Non-Competition: Restrictions on competitive activities, needed when parties operate in similar markets
3. Employment Matters: Employment terms and policies when the JV will have its own employees
4. Insurance: Insurance requirements and obligations when significant operational risks exist
5. Environmental Compliance: Environmental obligations and compliance requirements for ventures in regulated industries
6. Technology Transfer: Terms for technology sharing and transfer when technical knowledge is central to the venture
7. Marketing and Branding: Guidelines for marketing activities and brand usage when customer-facing operations are involved
8. Exit Strategy: Detailed procedures for party exit, buyout provisions, or venture sale when long-term collaboration is planned
1. Schedule 1: Initial Contributions: Detailed list of each party's initial capital, asset, or resource contributions
2. Schedule 2: Business Plan: Initial business plan including strategic objectives and financial projections
3. Schedule 3: Management Structure: Organizational chart and key personnel responsibilities
4. Schedule 4: Reserved Matters: List of decisions requiring special approval or unanimous consent
5. Schedule 5: Accounting Policies: Agreed accounting principles and financial reporting requirements
6. Appendix A: Form of Board Resolution: Template for board resolutions and decision documentation
7. Appendix B: Service Level Agreements: Details of any services provided between parties or to the joint venture
8. Appendix C: IP Register: Register of intellectual property rights brought into or developed by the venture
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