The Founders Collaboration Agreement is a crucial document for entrepreneurs establishing a business venture in Singapore. It is typically used at the early stages of company formation when two or more founders come together to start a business. The agreement addresses critical aspects such as equity distribution, vesting schedules, roles and responsibilities, decision-making processes, and intellectual property rights. Under Singapore law, this agreement provides legal protection and clarity for all parties involved, helping to prevent future disputes and ensuring smooth business operations. It should be drafted in compliance with the Singapore Companies Act and other relevant legislation, making it particularly important for startups and new ventures seeking to establish a solid legal foundation.
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1. Parties: Identification and details of all founding members
2. Background: Context of collaboration and business venture
3. Definitions: Key terms used throughout the agreement
4. Roles and Responsibilities: Detailed description of each founder's duties and commitments
5. Equity Distribution: Initial shareholding structure and vesting arrangements
6. Decision Making: Voting rights and governance structure
7. Intellectual Property: Ownership and protection of IP created during collaboration
8. Confidentiality: Protection of business secrets and confidential information
9. Term and Termination: Duration and conditions for ending collaboration
1. Non-Compete: Restrictions on competitive activities (include when founders want to prevent competition after departure)
2. Remuneration: Salary and compensation terms (include when founders will draw salary from the company)
3. External Investment: Process for accepting external funding (include when anticipating future investment rounds)
4. Share Transfer Restrictions: Limitations on transfer of shares (include when founders want to control ownership changes)
1. Business Plan: Detailed plan of the business venture
2. Vesting Schedule: Detailed timeline of equity vesting
3. IP Schedule: List of existing IP brought into the venture
4. Founder Details: Detailed information about each founder's background and expertise
5. Initial Capital Contributions: Schedule of initial investments by each founder
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