The Founders Collaboration Agreement is essential for any new business venture in Indonesia where multiple founders come together to establish a company. This document serves as the cornerstone of the founding relationship, typically drafted during the company's formation or early stages. It is particularly crucial in the Indonesian legal context, where specific requirements under Law No. 40 of 2007 on Limited Liability Companies must be addressed, including bilingual documentation requirements. The agreement covers critical aspects such as equity distribution, capital contributions, decision-making processes, intellectual property rights, and exit provisions. It provides legal protection for all parties involved and establishes clear guidelines for business operations, helping prevent future disputes and misunderstandings between founders.
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1. Parties: Identification and details of all founding members entering into the agreement
2. Background: Context of the collaboration, business vision, and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Collaboration: Nature and extent of the founders' collaboration and business venture
5. Roles and Responsibilities: Detailed description of each founder's role, duties, and commitments
6. Equity Structure: Distribution of ownership, vesting schedules, and share classes
7. Capital Contributions: Initial and future capital commitments from each founder
8. Decision Making: Voting rights and process for key business decisions
9. Intellectual Property Rights: Ownership and protection of IP created before and during the collaboration
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions on competing activities and soliciting employees/customers
12. Term and Termination: Duration of agreement and circumstances for termination
13. Exit Provisions: Procedures for founder exit, including share transfer and buyout terms
14. Dispute Resolution: Process for resolving conflicts between founders
15. Governing Law: Specification of Indonesian law as governing law and jurisdiction
1. Employment Terms: Used when founders will also be employees of the company, specifying employment conditions
2. Technology Development: Included for technology startups, detailing development responsibilities and ownership
3. International Operations: Added when business operations will extend beyond Indonesia
4. Founder Illness/Incapacity: Provisions for managing founder long-term illness or incapacity
5. External Investment Provisions: Used when anticipating immediate external investment
6. Family Succession Rights: Included when founders want to specify family succession rights
7. Special Voting Rights: When certain founders need special voting or veto rights on specific matters
1. Schedule 1: Founder Details: Detailed information about each founder, including contact details and qualifications
2. Schedule 2: Initial Capital Contributions: Detailed breakdown of each founder's initial capital contributions (cash, assets, or services)
3. Schedule 3: Equity Vesting Schedule: Detailed vesting schedule for founder shares
4. Schedule 4: IP Schedule: List of existing intellectual property brought into the business by each founder
5. Schedule 5: Business Plan: Initial business plan and strategy
6. Schedule 6: Reserved Matters: List of decisions requiring special majority or unanimous consent
7. Appendix A: Share Transfer Process: Detailed procedures for share transfers and right of first refusal
8. Appendix B: Valuation Methodology: Agreed method for valuing shares in case of transfer or exit
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