The Founder Collaboration Agreement is essential when multiple individuals or entities come together to establish a new business venture in England and Wales. This document serves as the foundation for the working relationship between founders, addressing crucial aspects such as equity distribution, roles and responsibilities, decision-making processes, and intellectual property rights. It helps prevent future misunderstandings and provides a clear framework for resolving potential disputes. The agreement should be put in place at the earliest stages of business formation to ensure all parties have a clear understanding of their rights and obligations.
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1. Parties: Identification and details of all founding members
2. Background: Context of collaboration and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Roles and Responsibilities: Detailed description of each founder's duties and commitments
5. Intellectual Property Rights: Ownership and handling of IP created during collaboration
6. Decision Making: Process for making key business decisions
7. Capital Contributions: Financial and non-financial contributions of each founder
8. Profit Sharing: Distribution of profits among founders
9. Term and Termination: Duration and conditions for ending the agreement
1. Non-Compete: Restrictions on competing activities during and after the collaboration
2. Confidentiality: Protection of sensitive information and trade secrets
3. Exit Provisions: Procedures and terms for founder departure or exit
4. Dispute Resolution: Specific procedures for resolving disagreements between founders
1. Schedule 1 - Business Plan: Detailed plan of business operations and objectives
2. Schedule 2 - Initial Capital Contributions: Schedule of founders' initial investments and contributions
3. Schedule 3 - Intellectual Property Register: List of existing IP brought into the collaboration by each founder
4. Schedule 4 - Roles and Responsibilities Matrix: Detailed breakdown of specific duties and responsibilities of each founder
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