The Founder Collaboration Agreement is essential when two or more individuals decide to start a business venture together in the United States. This document is typically created during the early stages of company formation and serves as a cornerstone agreement that governs the founders' relationship. It addresses crucial aspects such as equity distribution, vesting schedules, intellectual property rights, decision-making processes, and exit strategies. The agreement helps prevent misunderstandings and provides a clear framework for resolving potential disputes, making it a critical document for protecting all founders' interests under U.S. law.
Founder Collaboration Agreement for the United States
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Key Requirements PROMPT example:
Founder Collaboration Agreement
"I need a Founder Collaboration Agreement for a tech startup with three co-founders, where two founders are contributing technical expertise and one is contributing initial capital of $500,000, with all founders subject to a 4-year vesting schedule starting March 2025."
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1. Parties: Identification of all founding members, including full legal names and addresses
2. Background: Context of the 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. Equity Structure: Distribution of ownership and vesting terms
6. Intellectual Property Rights: Ownership and assignment of IP created during collaboration
7. Decision Making: Governance structure and voting rights
8. Confidentiality: Protection of sensitive information
9. Term and Termination: Duration and conditions for ending the agreement
1. Non-Compete: Restrictions on competitive activities during and after the collaboration period
2. Buy-Sell Provisions: Terms and conditions for buying out other founders' interests
3. Capital Contributions: Initial and ongoing financial commitments from each founder
4. Dispute Resolution: Procedures for resolving conflicts through mediation and arbitration
1. Schedule A - Initial Equity Allocation: Detailed breakdown of ownership percentages among founders
2. Schedule B - Vesting Schedule: Timeline and terms of equity vesting for each founder
3. Schedule C - IP Assignment: List of pre-existing IP and terms of transfer to the company
4. Schedule D - Business Plan: Initial business strategy and milestones
5. Schedule E - Founder Details: Detailed information about each founder's background and contributions
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