Sample of Participation Agreement

PARTICIPATION AGREEMENT

THIS PARTICIPATION AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into this __ day of ______, by and between:

1.            Mr. ______, private person, in this respect acting as majority shareholder and president director of and therefore representing and acting for and on behalf of PT ______, a company dully established and existing under the laws of the Republic of Indonesia, having its address at ______, (hereinafter referred to as the FIRST PARTY).

2.            PT ______, a company duly established under the laws of the Republic of Indonesia, having its registered office at___________, in this matter represented by Mr. ___________, in his capacity as _________ of the company, (hereinafter referred to as "SECOND PARTY");

The above mentioned parties separately shall be referred to as a "Party" and jointly as the "Parties".

WITNESSETH

A.            Whereas, FISRT PARTY is in the process of entering into a Pilot Project with ________ ("xxx") for a ________________(“Project”) , Indonesia.

B.            Whereas, SECOND PARTY has expressed interest with FISRT PARTY to invest in ______ Project and based on several discussions and meetings with FISRT PARTY, that SECOND PARTY is willing to invest in the ______ Project by way of participating in financing the funding requirements of the project.

C.            Whereas, for the above purpose, the SECOND PARTY is conducting a due diligence upon the FIRST PARTY as hereby confirmed by the Parties.

D.            Whereas, the FIRST PARTY has undertaken in accordance with the terms hereof to immediately convene an Extraordinary General Meeting of Shareholders of the Company after the signing of this Participation Agreement, and to complete all necessary requirements such that as a result thereof, the SECOND PARTY shall become the shareholder of the Company, together with the FIRST PARTY.

NOW THEREFORE in consideration of the premises set out above and mutual covenants hereinafter set forth, the Parties agree to enter into this participation agreement with the terms and condition as follows:

ARTICLE  1

DEFINITIONS

1.            In this Agreement, the following terms shall, except where the context otherwise requires, bear the meaning set out below:

  "Agreement" shall mean this Participation Agreement and its subsequent amendments or supplements;

"Amended Articles" shall mean the Articles of Association to be amended to give effect to the equity participation of the SECOND PARTY contemplated hereunder.

"Articles of Association" shall mean the Articles of Association of the Company, and all amendments thereto (if any).

"Assets" shall mean the assets of the Company from time to time, including with out limitation to project and license.;

"Business Days" shall mean Monday through Friday, except public holidays, in Jakarta, provided that if the due day falls on a Saturday or a Sunday, or public holiday prevailing at the relevant place where an obligation is to be performed, such due day shall occur on the next business day.

“xxx Project” shall mean________.

"Project Licenses" shall mean the approvals and other operating licenses required from time to time for the development and operating of the Project;

1.2          Headings

  The headings of the Articles and/or paragraphs of the Articles are inserted for convenience only and shall not be used or taken into consideration in the interpretation of any Articles or paragraphs herein.

ARTICLE 2

CAPITAL INCREASE AND SHAREHOLDING PROPORTIONS

The Parties acknowledge that in the event the Parties reasonably agreed that subscriptions for additional shares in the Company by its shareholders are necessary, the shareholders of the Company shall subscribe and pay for such additional shares pro rata their then current shareholding in the Company as called for by the Board of Directors of the Company. Any share issuance in the Company shall in no circumstance changes the shareholding composition percentage ratio of __ : __ of the Company’s issued shares capital between the FIRST PARTY and the SECOND PARTY, respectively, unless otherwise mutually agreed by the Parties, or to the extent of their not subscribing and paying for additional shares. The capital increase shall be made after the company optioned the profits.  

ARTICLE  3

PROJECT FUNDING

For the purposes of funding the development of any Projects the Parties agree that if, in the future the shareholders of the Company decided based on their unanimous approval that the Company require additional investment than the Intended Investment in this Agreement, the Parties shall use its reasonable endeavors to arrange loan funding for the Company subject to the Company providing adequate and satisfactory security to the lender(s).

ARTICLE 4

SHARE PURCHASE AGREEMENT AND SHAREHOLDERS’ MEETING

4.1.         The Parties shall enter into a mutually satisfactory Share Purchase Agreement and the following meetings shall be convened:

(a)        an Extraordinary General Meeting of Shareholders (Transfer Meeting) for the purpose of adopting the Amended Articles to amend the Articles of Association of the Company, inter alia, to change the shareholding composition of the Company consisting of the FIRST PARTY as holder of __% of the issued share capital of the Company and the SECOND PARTY as  holder of __% of the issued share capital of the Company; and

(b)        an Extraordinary General Meeting of Shareholders to resolve the appointment of the members of the Board of Commissioners and Board of Directors of the Company from candidates recommended for appointment by Parties which shall consist of:

(i)            2 (two) members of Board of Commissioner of which one member as the President Commissioner shall be appointed by the SECOND PARTY and other member shall be appointed by the FIRST PARTY;

(ii)           3 (three) members of Directors of which one member as the President Director shall be appointed by the FIRST PARTY and the other 2 (two) members, one being the Vice President Director shall be appointed by the SECOND PARTY;

4.2          The Parties further acknowledge that the Amended Articles shall stipulate matters concerning the management and organization of the Company, the obligations of shareholders, as well as of members of the Board of Directors and Board of Commissioners.

4.3          Term of Payment. The purchase price of the shares shall be US$ ________________ ( _______________ United States dollars). The SECOND PARTY shall transfer …..% (…… percent) of the total purchase price to a bank account designated by the FIRST PARTY within 3 (three) days as of the date of this Agreement. The SECOND PARTY shall transfer the …….% (……….. percent) of the total purchase price at the signing date of Share Purchase Agreement. The first payment (__ percent of total purchase price) cannot be refundable should SECOND PARTY cancel or withdraw its participation from the Project during or after the due diligence process or either before or after the Transfer Meeting.

Contoh Call Option Agreement

THIS CALL OPTION AGREEMENT (this “Agreement”) is dated [___] among:

(1)        [Mr. A], a private individual, the holder of passport number [_____], having its address at [______], Indonesia (the “Call Option Holder” or the “Put Option Grantor”); and

(2)        [Mrs. B], a private individual, the holder of Indonesia citizenship card number [_____], having its address at [___], Indonesia (the “Call Option Grantor” or “Put Option Holder”).

(the Call Option Holder and the Call Option Grantor shall hereinafter be referred to as, jointly, the “Parties” and individually as a “Party”)

WHEREAS:

(A)           Pursuant to a loan agreement (the “Loan Agreement”) between the Call Option Holder as lender and the Call Option Grantor as borrower dated [______], the Call Option Holder has agreed to make the Loan (as defined therein) to the Call Option Grantor.

(B)            As consideration for the Call Option Holder agreeing to enter into the Loan Agreement, the Call Option Grantor has agreed to grant a call option over [amount] shares of [PT XXX] (the “Option Shares”) owned directly by the Call Option Grantor to the Call Option Holder on the terms and conditions set out in this Agreement.

NOW, THEREFORE, in consideration of the premises set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

1.           DEFINITIONS

Capitalized terms used herein but not defined have the meanings set forth in the Loan Agreement.  As used in this Agreement, the following terms have the meanings specified below, unless the context requires otherwise:

“Bankruptcy Law” means any bankruptcy, insolvency, reorganization, composition, moratorium or other similar Law.

“Call Exercise Date” means a date on which the Option Shares are to be purchased and sold pursuant to the exercise of the Call Option (which shall be the Business Day immediately following the date of the Call Exercise Notice).

“Call Exercise Notice” has the meaning assigned to such term in Clause 2.3(a).

“Call Exercise Price” has the meaning assigned to such term, and shall be calculated in accordance with, in Clause 2.4.

“Call Notice Date” means the date on which the Call Option Grantor receives a Call Exercise Notice from the Call Option Holder in accordance with Clause 2.3(a).

“Call Option” has the meaning assigned to such term in Clause 2.1.

“Encumbrance” means (a) any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, deed of trust, title retention, security interest or other encumbrance of any kind securing, or conferring any priority of payment in respect of, any obligation of any Person, including any right granted by a transaction which, in legal terms, is not the granting of security but which has an economic or financial effect similar to the granting of security under applicable laws, (b) any proxy, power of attorney, voting trust agreement, interest, option, right of first offer, negotiation or refusal or transfer restriction in favor of any Person and (c) any adverse claim as to title, possession or use.

“Government Authority” means the government of any nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory, monetary or administrative powers or functions of or pertaining to government.

“Law” means any law, treaty, statute, ordinance, code, rule or regulation of any Government Authority or any Order.

“Loan Agreement” has the meaning assigned to such term in the Recitals hereto.

“Option Shares” has the meaning assigned to such term in the Recitals hereto.

“Order” means any writ, judgement, decree, injunction, award or similar order of any Government Authority (in each case whether preliminary or final).

“Parties” means the Call Option Grantor and the Call Option Holder and any Person who becomes a party to this Agreement under Clause 5.  Each of the Parties shall be referred to as a “Party”.

“Person” means any natural person, corporation, limited liability company, trust joint venture, association, company, partnership, Government Authority or other entity.

 2.           CALL OPTION

2.1          Call Option

The Call Option Grantor hereby grants to the Call Option Holder, with effect and exercisable from the date of this Agreement, a call option (the “Call Option”) exercisable at the Call Option Holder’s sole election, to purchase all or a part of the Option Shares in accordance with the terms of this Agreement.

2.2          Transfer of Option Shares

On the date of this Agreement the Call Option Grantor shall immediately execute and deliver (but leave undated), or procure the execution and delivery of a Share Purchase Agreement in the form of Schedule C hereto and all other documents legally necessary (as solely determined by the Call Option Holder) to effect the transfer of title of the Option Shares to the Call Option Holder and/or its nominees and to effect the registration of the Option Shares in the name of the Call Option Holder and/or his nominees in the share register; such documents shall be held in escrow by the Call Option Holder.

2.3           Exercise of Call Option

(a)          The Call Option may be exercised in whole at any time after the date of this Agreement at the sole discretion of the Call Option Holder. The Call Option is to be exercised by an irrevocable written notice from the Call Option Holder to the Call Option Grantor in the form of Schedule B hereto (the “Call Exercise Notice”).  The Call Option Grantor hereby acknowledges and agrees that no other notice or procedures are required in order for the Call Option to be exercised.  The obligation of the Call Option Holder to pay the Call Exercise Price and accept and/or cause its nominees to accept the transfer of the Option Shares from the Call Option Grantor shall become unconditional on the Call Notice Date, and, subject to herein, the Call Exercise Price shall be paid on the Call Exercise Date.

(b)         Upon receipt by the Call Option Grantor of the Call Exercise Price, the Call Option Grantor shall assign and transfer to the Call Option Holder and/or its nominees all of the right, title and interest in and to all the Option Shares free from any Encumbrance (including all rights) and shall duly complete, execute and deliver all other documents which in the sole opinion of the Call Option Holder are legally necessary to effect the transfer of title of the Option Shares to the Call Option Holder and/or its nominees.

(c)          Notwithstanding the above, the Call Option Grantor hereby acknowledges and agrees that where an Event of Default has occurred and is continuing under the Loan Agreement, the provisions of (b) above shall be deemed satisfied and the Options Shares shall immediately be transferred to the Call Option Holder.

2.4              Call Exercise Price

The Call Exercise Price shall be in the amount of [IDR_____]

2.5              Expiration of Call Option

The Call Option shall expire___ years after the date of this Agreement.

Dan seterusnya...

Contoh Draft Shareholders Agreement

SHAREHOLDERS AGREEMENT

THIS SHAREHOLDERS AGREEMENT (the “Agreement”) is made as of [___].

BY AND BETWEEN:

1.                  PT [_____], a limited liability company duly incorporated and existing under the laws of the Republic of Indonesia, having its place of business at [___] (“PT X”).

2.                  PT [_____], a limited liability company duly incorporated and existing under the laws of the Republic of Indonesia, having its place of business at [___] (“PT Y”).

3.                  PT [_____], a limited liability company duly incorporated and existing under the laws of the Republic of Indonesia, having its place of business at [___] (“PT Z”).

PT X, PT Y and PT Z are collectively referred to as the “Parties”, and each one of them as a “Party”.

WITNESSETH:

A.                WHEREAS, the Company (as defined below) is engage in [_____].

B.                 WHEREAS, the Shareholders (as defined below) wish to enter into this Agreement to document their understanding and agreements regarding among others the governance of the Company and to regulate the relationship among themselves.

NOW THEREFORE, in consideration of the mutual covenants and premises, the Parties hereto agree to enter into this Agreement to document their agreements as stipulated in the above recital pursuant to the following terms and conditions:

1.                  Definitions and Interpretations

The following capitalized terms when used in this Agreement shall have the meanings ascribed next to them as set forth below:

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, controls or is controlled by or is under common control with such Person.  Control means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

“Agreement” means this Shareholders Agreement, including any schedules, appendices or attachments thereto, as may be amended, supplemented or replaced by the Parties hereto from time to time.

“Articles of Association” means the draft articles of association of the Company as attached hereto as Schedule 1, as applicable. 

“Board of Commissioners” means the board of commissioners of the Company.

“Board of Directors” means the board of directors of the Company.

“Business” has the meaning set forth in Clause [___].

“Business Day” means any day which is not a Saturday, Sunday or a day on which banks are authorized or required to close in Jakarta. 

[and so on...]

2.                  Formation

2.1.            Formation:  The Company is incorporated as a limited liability company under the laws of the Republic of Indonesia.  The purpose of this Agreement is to provide for the ownership and operation by the Shareholders of the Company and the Group Companies in the form of a joint venture company within the framework of Indonesian laws.  The domicile of the Company shall be in Jakarta, Indonesia.  Subject to the approval of its Board of Directors, the Company may establish branches or representative offices elsewhere in or out of the territory of the Republic of Indonesia.  The Company shall continue to exist for an unlimited period in accordance with its Articles of Association.  In the event of a conflict between any provision of this Agreement and any non-mandatory provision of any applicable law, the provisions of this Agreement shall control and take precedence, and the Parties agree to amend, as necessary, the Company’s Articles of Association in a manner consistent with, and to give effect to, the provisions of this Agreement.  The Company’s Articles of Association are attached hereto as Schedule 1.

2.2.            Purpose:  “Business” means [_____] in Indonesia.

2.3.            Effective Date:  This Agreement shall become effective on the date hereof (the “Effective Date”).

3.                  Share Capital

3.1.            Capitalization:  The authorized share capital of the Company as of the date of this Agreement consists of [___] shares, with a nominal value per share of Rp [___] for a total authorized share capital of Rp [___].  As soon as practicable after the date hereof, the Shareholders shall increase the authorized share capital of the Company to [____] shares, with a nominal value per share of Rp [___] for a total authorized share capital of Rp [____].

3.2.            Subscription: 

a.                   The initial issued and paid up share capital of the Company as of the date of this Agreement consists of [___] shares, with a nominal value per share of Rp [___] for a total issued and paid up share capital of Rp [___].  The shareholding composition of the Company as of the date hereof is as follows:

Shareholder	Shares	Nominal Value (in Rp)	%
Total			100%

dan seterusnya...

Contoh Perjanjian Jual Beli Batubara

PERJANJIAN JUAL BELI BATUBARA

antara

PT _____

dengan

PT ______

__________________________________________________________________________________

Pada hari ini ______, tanggal [_____] (“Tanggal Efektif”), di Jakarta, dibuat  Perjanjian Jual  Beli  Batubara (“Perjanjian”) oleh dan antara:

PT ______, suatu perseroan terbatas yang didirikan menurut hukum Republik Indonesia, beralamat di ___________, yang dalam hal ini diwakili oleh___________, sebagai Direktur Utama PT ______ oleh karena itu bertindak untuk dan atas nama PT _______, selanjutnya disebut sebagai (”PIHAK PERTAMA”).

PT _______ , suatu perseroan terbatas yang didirikan menurut hukum Republik Indonesia, yang beralamat di ________, yang dalam hal ini diwakili oleh _______, sebagai Presiden Direktur PT___________ oleh karena itu bertindak untuk dan atas nama PT ________, selanjutnya disebut sebagai (”PIHAK KEDUA”).

PIHAK PERTAMA dan PIHAK KEDUA dalam Perjanjian ini selanjutnya secara sendiri-sendiri disebut sebagai ”PIHAK” dan secara bersama-sama disebut sebagai ”PARA PIHAK”.

PASAL 1

PENGERTIAN ISTILAH

No	ISTILAH		PENGERTIAN
01	”Lokasi Tambang”	=	.
02	“Harga Batubara”	=
03	“Titik Penyerahan”	=
04	“SKAB”	=
05	“BAST Batubara”	=

PASAL 2

MAKSUD DAN TUJUAN

PIHAK PERTAMA  setuju untuk menjual kepada PIHAK KEDUA dan PIHAK KEDUA setuju untuk membeli dari PIHAK PERTAMA, batubara dengan spesifikasi dan kualitas, jumlah, jadwal, dan Titik Penyerahan batubara sebagaimana dimaksud pada Pasal 4 dan Pasal 5 Perjanjian ini.

PASAL 3

SUMBER PENYEDIAAN BATUBARA

1.     Sumber penyediaan batubara yang akan diserahkan oleh PIHAK PERTAMA kepada PIHAK KEDUA dalam Perjanjian ini berasal dari Lokasi Tambang.

2.     PIHAK PERTAMA menjamin bahwa batubara yang dijual kepada PIHAK KEDUA adalah batubara yang berasal dari kegiatan yang sah dan tidak melanggar peraturan perundang-undangan yang berlaku, khususnya ketentuan mengenai kewajiban pemenuhan kebutuhan dalam negeri, serta tidak dibebankan atas suatu sitaan atau ditanggungkan untuk suatu piutang atau dibebani dengan tanggungan apapun kepada pihak lain.

3.       PIHAK PERTAMA bertanggung jawab penuh atas segala royalti/iuran/retribusi atas batubara yang akan dijual kepada PIHAK KEDUA dan juga perijinan dalam rangka memperoleh dan menjual batubara tersebut.

4.  PIHAK PERTAMA memberikan ijin kepada PIHAK KEDUA untuk sewaktu-waktu memeriksa kegiatan/pekerjaan pemuatan batubara di Lokasi Tambang.

5.    PIHAK PERTAMA wajib memberikan dokumen-dokumen yang dibutuhkan oleh PIHAK KEDUA dalam pembelian batubara dari PIHAK PERTAMA berupa, namun tidak terbatas pada, Surat Kirim, SKAB dari Dinas setempat.

PASAL 4

SPESIFIKASI DAN KUALITAS BATUBARA

Spesifikasi dan kualitas batubara yang dimaksud dalam perjanjian ini adalah spesifikasi aktual dari produksi batubara (non crusher) yang akan dijual oleh PIHAK PERTAMA dengan spesifikasi sebagai berikut:

PARAMETER	BASIS	TYPICAL/STANDARD	REJECTION
Total Moisture (“TM”)	(Arb)
Inherent Moisture	(Adb)
Ash Content	(Adb)
Volatile Matter	(Adb)
Fixed Carbon	(Adb)
Total Sulphur (“TS”)	(Adb)
Gross Calorific Value	(Adb)
Hardgrove Grindability Index (“HGI”)

PASAL 5

JUMLAH DAN JADWAL PENYERAHAN BATUBARA

1.       PIHAK PERTAMA berkomitmen untuk menjual batubara kepada PIHAK KEDUA dalam jumlah yang tidak kurang dari  ____MTon (_____ metrik ton ) batubara untuk setiap transaksi penjualan.

2.       Pemuatan dan pengangkutan batubara milik PIHAK PERTAMA dilakukan selambat-lambatnya 1 (satu) hari sesudah PIHAK KEDUA memberikan perintah pembelian (Purchase Order/PO) kepada PIHAK PERTAMA dan PIHAK KEDUA telah melakukan pembayaran sesuai dengan ketentuan sebagaimana diatur dalam Pasal 9 (1) a dan b  Perjanjian ini.

3.       Batubara yang telah dibeli, dimuat ke atas truk milik PIHAK PERTAMA di Stockpile Tambang ___, Propinsi ______ oleh PIHAK PERTAMA  dan diangkut menuju ke Titik Penyerahan.

4.       PIHAK PERTAMA wajib mengangkut batubara yang dipesan oleh PIHAK KEDUA dengan mengutamakan prinsip kehati-hatian dan memperhatikan keefektifitasan dari segi waktu dan biaya.

5.       PIHAK PERTAMA wajib menyerahkan batubara yang telah dibeli oleh PIHAK KEDUA di Titik Penyerahan.

6.       PIHAK PERTAMA wajib bertanggung jawab terhadap kegiatan crushing dan penggunaan jasa pengelola pelabuhan di Titik Penyerahan. Segala biaya yang timbul sehubungan dengan kegiatan crushing dan penggunaan jasa pengelola pelabuhan di Titik Penyerahan, selain yang diatur dalam terminologi FOB pelabuhan Titik Penyerahan, maka wajib ditanggung oleh PIHAK PERTAMA dengan mendapatkan penggantian dari PIHAK KEDUA setelah PIHAK PERTAMA mengirimkan Invoicenya kepada PIHAK KEDUA.

Dan seterusnya...