Founders Collaboration Agreement Generator for England and Wales

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Key Requirements PROMPT example:

Founders Collaboration Agreement

"Need a Founders Collaboration Agreement for a tech startup with three co-founders, where we'll have different equity stakes (40%, 35%, 25%) and specific vesting schedules starting from January 2025, with particular focus on IP rights for our AI technology."

Document background
The Founders Collaboration Agreement is essential when two or more individuals come together to establish a business venture in England and Wales. This document is typically used at the early stages of a business relationship, before or during company formation. It sets out crucial terms including ownership stakes, roles, responsibilities, and decision-making processes. The agreement helps prevent future disputes by establishing clear guidelines for the founders' relationship and protecting each party's interests. This document is particularly important for startups and new ventures where multiple founders are involved.
Suggested Sections

1. 1. Parties: Identification and details of all founding parties entering into the agreement

2. 2. Background: Context of the collaboration, business venture, and purpose of the agreement

3. 3. Definitions: Key terms and their meanings used throughout the agreement

4. 4. Roles and Responsibilities: Detailed outline of each founder's duties, commitments, and time dedication

5. 5. Intellectual Property Rights: Ownership, transfer, and protection of IP created during collaboration

6. 6. Decision Making: Procedures for business decisions, voting rights, and governance structure

7. 7. Confidentiality: Protection of sensitive information and trade secrets

8. 8. Term and Termination: Duration of the agreement and circumstances for termination

9. 9. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

Optional Sections

1. Non-Compete Provisions: Restrictions on competitive activities and timeframe for such restrictions

2. Share Vesting: Schedule and conditions for earning equity stakes over time

3. External Investment: Provisions for accepting outside investment and related procedures

4. Founder Departure: Procedures and consequences of founder exit, including share transfer provisions

5. Dispute Resolution: Specific procedures for resolving conflicts between founders

Suggested Schedules

1. Schedule 1 - Business Plan: Detailed business strategy, objectives, and milestones

2. Schedule 2 - IP Schedule: List of existing IP brought into the collaboration by each founder

3. Schedule 3 - Share Capital Table: Breakdown of shareholdings, share classes, and ownership structure

4. Schedule 4 - Vesting Schedule: Detailed timeline and conditions of share vesting arrangements

5. Schedule 5 - Founder Details: Comprehensive information about each founder including contact details and roles

Authors

Alex Denne

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

Clauses
Industries

Companies Act 2006: Primary legislation governing company law in the UK, covering directors' duties, share capital, company formation, and corporate governance requirements

Employment Rights Act 1996: Legislation covering employment relationships, particularly relevant if founders are also employees, defining working conditions and employment status

Copyright, Designs and Patents Act 1988: Key intellectual property legislation protecting creative works, designs, and inventions created during the collaboration

Trade Marks Act 1994: Legislation governing trademark protection and registration, important for protecting business branding and intellectual property

Partnership Act 1890: Historic legislation still relevant for defining partnership relationships and duties if the collaboration involves partnership elements

UK GDPR and Data Protection Act 2018: Data protection legislation governing the handling and processing of personal and business data

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, relevant for external stakeholder relationships

Competition Act 1998: Legislation governing fair competition and market practices, particularly relevant for non-compete provisions

Enterprise Act 2002: Legislation addressing business competition, market regulation, and corporate insolvency matters

Equality Act 2010: Legislation ensuring equal treatment and preventing discrimination in business relationships and employment

Small Business, Enterprise and Employment Act 2015: Legislation specifically addressing small business concerns and startup provisions

Financial Services and Markets Act 2000: Legislation governing regulated financial activities, relevant if the business involves financial services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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