Thank you for your question. I am a New Jersey licensed professional and will do my best to assist you with your concerns.What you are describing is simply a bit of hybrid between profit sharing and a debt agreement with a bit of an employment clause thrown in. There is no real template out there, you could either attempt to write such a contract yourself by finding various templates and combining language, or seeking an attorney to write this up for you. The terms are esoteric and unique enough that no one contact template will help as this isn't a joint venture, it is not strictly employment, but it is a bit of a hold on future profits and potential options to vest into your company. A contract like that may cost you about $1,500 from a starting attorney, and about $3,000 to $5,000 from a seasoned one.Good luck!
First - Thank you for your quick response to my question and estimated costs for having such an agreement setup.
Finally - That is much more than I have to spend on a contract right now considering all the costs that I am incurring starting this business up. So if I were to write down what our agreement is in plain English, not "legalese" (no offense), would it still be considered binding if both parties sign it?
Paul,No offense intended. I personally hate crafting 'legalese' agreements because unless I am trying to hide specific barbs in the terms, there is no point in making something complicated. No, you can write it in simple English provided that the terms and conditions are clear and unambiguous. Any confusion, ambiguity, or issues with terms are going to be held against you should it ever get to litigation. For example if a clause has two different but entirely plausible interpretations under law, if you as the creator hold to one version and he holds to the other, he would be the one in a stronger position to prove that as someone who did not draft the contract, the language would be based on his expectations and not yours.Hope that helps.
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