Fill in the details of the parties. You can click the "Fill with Member’s Information" button to complete it with information saved to your account.
Please fill in any additional information by following the step-by-step guide on the left hand side of the preview document and click the "Next" button.
When you are done, click the "Get Document" button and you can download the document in Word or PDF format.
Please get all parties to review the document carefully and make any final modifications to ensure that the details are correct before signing the document.
The document titled 'Letter of Intent (LOI) - Joint Venture (Detailed)' is a crucial document that outlines the proposed joint venture between two parties. It serves as a preliminary agreement and sets out the intentions and principles upon which the parties will negotiate and establish the joint venture. The document begins with a letter addressed to the party involved, expressing the mutual interest in establishing the joint venture. It emphasizes the importance of careful review and agreement on the detailed terms of the joint venture to ensure its successful establishment.
The document is divided into several sections, each providing detailed information on different aspects of the joint venture. The first section focuses on the establishment of a joint venture company, describing the intention to create a new jointly-owned company and the preferred name for the joint venture. It also mentions the possibility of alternative structures based on tax and cost-efficiency considerations.
The second section outlines the activities of the joint venture, specifying the field of business and the territory in which it will operate. It highlights the importance of drawing up an initial business plan and regularly reviewing and updating it.
The third section discusses the contribution of existing interests to the joint venture and the need to carry on business in the ordinary course until the completion of the joint venture. It also mentions the availability of technology and the licensing of trademarks and names to the joint venture.
The fourth section addresses the valuation of contributions and the process of reaching an appropriate valuation. It emphasizes the importance of providing all necessary information for the valuation process and resolving any material differences in valuations.
The fifth section focuses on the capital and funding of the joint venture, stating the intention for it to be self-financing and obtain additional funds from third parties. It mentions the parties' support for the joint venture and the provision of guarantees and undertakings.
The sixth section discusses the board and management of the joint venture, including the appointment of directors and senior management. It also mentions the rotation of the chairman position and the matter of appointments and removals of senior management.
The seventh section highlights the importance of a shareholders agreement, which will include provisions for key decisions, dividend policy, auditors, financial year, management accounts, pre-emption rights, non-competition, and dispute resolution.
The eighth section addresses the need for third-party approvals, such as consents from other partners and regulatory authorities. It emphasizes the parties' cooperation in obtaining these approvals.
The ninth section focuses on confidentiality and announcements, stating the obligation to keep information confidential and obtain prior approval for public announcements or press releases.
The tenth section discusses dispute resolution and includes a jurisdiction clause.
The document concludes by stating that the letter of intent is not legally binding, except for specific clauses, and serves as a basis for negotiating legally definitive agreements.
Guidance for using the 'Letter of Intent (LOI) - Joint Venture (Detailed)':
1. Review and understand the entire document, including the detailed description and each section.
2. Gather all necessary information about the proposed joint venture, including the parties involved, the field of business, and the territory.
3. Enter the relevant information in the appropriate sections of the document, such as the names and addresses of the parties, the proposed joint venture company name, and the description of the business.
4. Consider the preferred intention for creating a new jointly-owned company and alternative structures if necessary.
5. Discuss and agree on the activities of the joint venture, including the scope of business and the inclusion of other technologies and products.
6. Develop an initial business plan and establish a process for reviewing and updating it regularly.
7. Determine the contributions of existing interests to the joint venture and ensure that business operations continue in the ordinary course.
8. Discuss the availability of technology and the licensing of trademarks and names to the joint venture.
9. Engage in valuation negotiations and agree on an appropriate valuation process and methodology.
10. Provide all necessary information for the valuation process and resolve any material differences in valuations.
11. Discuss the capital and funding of the joint venture, including the intention for it to be self-financing and obtain additional funds from third parties.
12. Appoint directors and senior management to the joint venture's board and establish a rotation system for the chairman position.
13. Consider the reserved matters for mutual agreement between the parties and include appropriate provisions in the shareholders agreement.
14. Identify any third-party consents or approvals required and cooperate with the other party in obtaining them.
15. Ensure confidentiality of information obtained during the negotiation and implementation of the joint venture.
16. Seek prior written approval for any public announcements or press releases related to the joint venture.
17. Familiarize yourself with the dispute resolution mechanisms and the jurisdiction clause.
18. Understand that the letter of intent is not legally binding, except for specific clauses, and serves as a basis for negotiating legally definitive agreements.