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Founder Collaboration Agreement Template for Singapore

A Founder Collaboration Agreement under Singapore law is a comprehensive legal document that establishes the formal relationship between co-founders of a business venture. It outlines equity distribution, roles and responsibilities, decision-making processes, and intellectual property rights. Governed by Singapore's Companies Act and related legislation, this agreement provides a framework for founder relationships while ensuring compliance with local corporate and commercial laws. It includes provisions for dispute resolution, confidentiality, and exit mechanisms specific to the Singapore business environment.

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What is a Founder Collaboration Agreement?

The Founder Collaboration Agreement is essential when two or more individuals come together to establish a business venture in Singapore. This document serves as the foundational agreement that governs the relationship between co-founders, establishing clear parameters for ownership, management, and operations. It addresses critical aspects such as equity distribution, vesting schedules, intellectual property rights, and decision-making processes. Under Singapore's legal framework, this agreement helps prevent future disputes by clearly documenting the founders' intentions and obligations. It's particularly crucial in the startup ecosystem where clear alignment between founders is essential for securing investment and ensuring sustainable growth.

What sections should be included in a Founder Collaboration Agreement?

1. Parties: Identification and details of all founding parties

2. Background: Context and purpose of the collaboration

3. Definitions: Key terms used throughout the agreement

4. Roles and Responsibilities: Detailed description of each founder's duties and commitments

5. Equity Structure: Share allocation and vesting arrangements

6. Decision Making: Voting rights and governance structure

7. Intellectual Property: IP ownership, assignment, and protection

8. Confidentiality: Protection of confidential information

9. Term and Termination: Duration and grounds for termination

What sections are optional to include in a Founder Collaboration Agreement?

1. Non-Compete: Restrictions on competitive activities during and after collaboration

2. Employment Terms: Employment conditions if founders are also employees of the company

3. Funding Commitments: Initial capital contributions and future funding obligations

4. Dispute Resolution: Specific mechanisms for resolving disagreements between founders

What schedules should be included in a Founder Collaboration Agreement?

1. Schedule 1: Business Plan: Detailed business strategy and objectives

2. Schedule 2: IP Register: List of existing IP and ownership details

3. Schedule 3: Vesting Schedule: Detailed equity vesting timeline and conditions

4. Schedule 4: Initial Contributions: List of assets, capital, or resources contributed by each founder

5. Appendix A: Key Performance Indicators: Metrics for measuring founder performance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Ƶ

Cost

Free to use

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