What made you look for the omnibus clause? Please tell us where you read or heard it (including the quote, if possible). III. Business opportunities. The key is to clarify that, as long as one of the parties participates in the control of the newly created general partnership, that party and its related companies are prohibited from owning, operating or investing directly or indirectly in competing companies in the partnership. This provision is called “restricted operation.” Another provision in this article, entitled “Exceptions,” should provide a method for the parties to agree to each other to authorize the travel of a party in the restricted operation. It is not uncommon for the parties to form a “conflict committee” to deal with these exceptions. Subscribe to America`s largest dictionary and get thousands of other definitions and advanced search – ad-free! One of the common objectives of an omnibus agreement is to commemorate and confirm an agreement between several parties regarding a joint venture. The authors of these agreements will want to cover all the bases of the partnership and all the conditions approved by the parties. As a general rule, the parties agree that any appropriate business opportunity for the new partnership is available to the general partnership and that no member will do so.
Of course, there will be exceptions that will also need to be identified. An omnibus agreement that contains an agreement on the creation of a general partnership generally includes the following articles and provisions: IV. Compensation. It is important to include a compensation provision under which all parties to the agreement agree in solidarity to compensate, defend and maintain the new partnership for a specified period of time. The parties must agree to cover all losses incurred by the partnership as a result of investigations, claims or violations. Procedures for this compensation should also be discussed. I. Considering. The “Considerations” section of an omnibus agreement for the creation of a partnership is very important. These recitals set out the overall purpose of the agreement and the parties` desire to demonstrate their understanding of the new trade agreement.