The Partnership Percentage Agreement serves as a fundamental document for businesses seeking to formalize their partnership arrangements under Indonesian law. This agreement is essential when two or more parties wish to establish a clear framework for sharing profits, losses, and responsibilities in a business venture. It becomes particularly important in contexts where partners contribute different amounts of capital, expertise, or resources, and need to establish corresponding ownership percentages. The document addresses key aspects required by Indonesian business law, including capital contribution requirements, profit-sharing mechanisms, management rights, and compliance with foreign investment regulations where applicable. Commonly used in both new business formations and restructuring of existing partnerships, this agreement helps prevent future disputes by clearly documenting each partner's rights, obligations, and financial interests.
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1. Parties: Identification and details of all partners entering into the agreement
2. Background: Context of the partnership formation and general intentions of the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Partnership Structure: Details of ownership percentages and partnership classification under Indonesian law
5. Capital Contributions: Specification of initial and ongoing capital contributions from each partner
6. Profit and Loss Sharing: Detailed mechanism for calculating and distributing profits and losses
7. Management and Control: Framework for partnership management and decision-making processes
8. Rights and Obligations: Specific rights and responsibilities of each partner
9. Financial Management: Procedures for handling partnership finances, accounts, and records
10. Term and Termination: Duration of partnership and conditions for termination
11. Dispute Resolution: Procedures for resolving conflicts between partners
12. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictions
13. General Provisions: Standard contractual provisions including notices, amendments, and severability
1. Non-Competition: Restrictions on partners engaging in competing businesses - include when partners have other business interests
2. Intellectual Property: Management of IP rights - include when the partnership involves creation or use of intellectual property
3. Foreign Investment Provisions: Compliance with Indonesian foreign investment laws - include when foreign partners are involved
4. Exit Mechanisms: Procedures for partner exit or sale of partnership interest - include for larger or more complex partnerships
5. Force Majeure: Provisions for unforeseen circumstances - include when operating in volatile industries or regions
6. Confidentiality: Protection of partnership secrets and information - include when dealing with sensitive business information
7. Employee Management: Framework for hiring and managing employees - include when partnership will have employees
1. Schedule A - Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions
2. Schedule B - Profit Sharing Formula: Detailed calculations and examples of profit-sharing mechanisms
3. Schedule C - Management Structure: Organizational chart and management responsibilities
4. Schedule D - Business Plan: Initial business plan and strategic objectives
5. Schedule E - Asset Register: List of partnership assets and their ownership status
6. Appendix 1 - Partner Information: Detailed information about each partner including contact details and representatives
7. Appendix 2 - Required Licenses: List of necessary business licenses and permits under Indonesian law
8. Appendix 3 - Banking Arrangements: Details of partnership bank accounts and authorized signatories
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