Founder Collaboration Agreement Template for 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."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Relevant legal definitions
Clauses
Industries

Business Entity Laws: Includes state-specific corporation and LLC laws, Delaware General Corporation Law (if incorporating in Delaware), and securities laws related to entity formation and governance

Intellectual Property Laws: Encompasses Copyright Act, Patent Act, Trademark Act (Lanham Act), and Trade Secrets Protection (Defend Trade Secrets Act) to protect company innovations and creative works

Employment and Labor Laws: Covers Fair Labor Standards Act, state-specific employment laws, and independent contractor regulations governing work relationships

Contract Laws: Includes state contract laws, Statute of Frauds, and Uniform Commercial Code provisions governing agreement formation and enforcement

Securities Laws: Encompasses Securities Act of 1933, Securities Exchange Act of 1934, and state 'Blue Sky' laws governing investment and equity arrangements

Tax Laws: Covers Internal Revenue Code, state tax regulations, and partnership tax rules affecting company structure and distributions

Privacy and Data Protection: Includes state data privacy laws and industry-specific regulations governing data handling and protection

Competition Laws: Encompasses Sherman Antitrust Act, non-compete agreement regulations, and state-specific restrictions on business competition

Equity Allocation Provisions: Specific provisions detailing how ownership stakes are divided among founders and vesting schedules

Decision-Making Framework: Provisions outlining authority, voting rights, and governance structure among founders

Exit Provisions: Terms governing founder departures, company sale, dissolution, and other exit scenarios

Confidentiality Provisions: Terms protecting company secrets, intellectual property, and sensitive information shared between founders

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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