The Founder Collaboration Agreement is a crucial document used in the German business environment when two or more individuals plan to establish a business venture together. This agreement serves as the foundational document during the pre-incorporation phase and early stages of the business, outlining the relationship between founders before the formal establishment of the company. It is particularly important under German law as it establishes clear guidelines for ownership, responsibilities, and decision-making processes while ensuring compliance with German corporate and commercial regulations. The agreement typically includes provisions for intellectual property rights, confidentiality, non-competition, and dispute resolution mechanisms, making it essential for protecting all founders' interests and maintaining clear documentation of their mutual understanding.
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1. Parties: Identification and details of all founding members entering into the agreement
2. Background: Context of the collaboration, business idea, and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Business Concept: Detailed description of the business idea and intended operations
5. Contributions and Responsibilities: Each founder's initial contributions (capital, assets, IP, etc.) and ongoing responsibilities
6. Ownership Structure: Planned distribution of shares/ownership among founders
7. Decision Making: Process for making business decisions and required majority/unanimity for different types of decisions
8. Intellectual Property Rights: Assignment and protection of IP created before and during the collaboration
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Non-Competition: Restrictions on competing activities during and after the collaboration
11. Duration and Termination: Term of the agreement and circumstances for termination
12. Dispute Resolution: Process for resolving disagreements between founders
13. Governing Law: Specification of German law as governing law and jurisdiction
1. Founder Vesting: Include when implementing a vesting schedule for founder shares to ensure long-term commitment
2. External Investment: Include when anticipating immediate or near-term external investment to outline the process and implications
3. Employment Terms: Include when founders will be employed by the company to outline basic employment conditions
4. Death/Incapacity: Include specific provisions for handling ownership in case of death or incapacity of a founder
5. Drag-Along/Tag-Along Rights: Include when planning for potential future sale scenarios
6. Founder Departure: Include detailed provisions for voluntary or involuntary departure of founders
7. International Operations: Include when business operations will span multiple countries
1. Business Plan: Detailed business plan including market analysis, financial projections, and strategy
2. Initial Contributions: Detailed list of each founder's initial contributions including valuations
3. IP Register: Register of existing intellectual property brought into the business by each founder
4. Founder Details: Complete biographical and contact information for each founder
5. Responsibility Matrix: Detailed breakdown of roles, responsibilities, and time commitments of each founder
6. Company Formation Timeline: Planned timeline and milestones for formal company incorporation
7. Proposed Articles of Association: Draft articles of association for the planned company
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