The Startup Partnership Agreement is a crucial legal foundation for new ventures in Malaysia, designed to formalize the relationship between founders and key stakeholders at the early stages of business development. This document is essential when two or more individuals or entities come together to establish a startup, requiring clear definition of their rights, responsibilities, and commercial arrangements. It addresses unique startup considerations such as intellectual property protection, technology development, scaling provisions, and future investment structures, while ensuring compliance with Malaysian legislation including the Partnership Act 1961, Companies Act 2016, and relevant intellectual property laws. The agreement is particularly important for protecting all parties' interests during the volatile early stages of startup growth and providing a clear framework for business operations and dispute resolution.
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1. Parties: Identification and details of all partners entering into the agreement
2. Background: Context of the partnership formation, business purpose, and startup vision
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Partnership Structure: Legal form of partnership, business name, and registration details
5. Capital Contributions: Initial and ongoing capital contributions from each partner
6. Profit and Loss Sharing: Distribution of profits and losses among partners
7. Management and Decision Making: Partnership governance structure and decision-making processes
8. Partners' Duties and Obligations: Specific responsibilities and commitments of each partner
9. Intellectual Property Rights: Ownership and protection of startup's IP assets
10. Confidentiality: Protection of business secrets and confidential information
11. Term and Termination: Duration of partnership and conditions for termination
12. Exit Provisions: Procedures for partner exit, including buyout terms
13. Dispute Resolution: Process for resolving conflicts between partners
14. Governing Law: Applicable Malaysian laws and jurisdiction
1. Technology Development: For tech startups: specific provisions regarding technology development and ownership
2. External Investment: Procedures for accepting external investment and dilution provisions
3. International Operations: For startups planning international expansion: cross-border considerations
4. Vesting Provisions: For partnerships with sweat equity: vesting schedules for ownership stakes
5. Non-Compete Clauses: Restrictions on competing activities, if applicable
6. Advisory Board: Structure and role of advisory board, if established
7. Employee Stock Options: Framework for employee ownership programs
8. Digital Assets: Management and ownership of digital assets and cryptocurrency
9. Sustainable Practices: Environmental and social responsibility commitments
1. Schedule 1: Capital Contributions: Detailed breakdown of each partner's initial and committed capital contributions
2. Schedule 2: Business Plan: Initial business plan and growth strategy
3. Schedule 3: Intellectual Property Register: List of all IP assets owned by the partnership
4. Schedule 4: Partner Information: Detailed information about each partner including expertise and role
5. Schedule 5: Profit Sharing Formula: Detailed calculations for profit and loss distribution
6. Appendix A: Vesting Schedule: Detailed vesting terms and schedules for sweat equity
7. Appendix B: Technology Stack: Technical infrastructure and development roadmap
8. Appendix C: Key Performance Indicators: Agreed metrics for measuring partnership and individual partner performance
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