The Founders Collaboration Agreement is a crucial document used when two or more individuals come together to establish a business venture in Germany. This agreement serves as the cornerstone of the founding relationship, typically implemented during the early stages of company formation or before formal incorporation. It addresses key aspects required under German law, including capital contributions, share distributions, and management rights. The document is particularly important as it establishes clear protocols for decision-making, intellectual property ownership, and conflict resolution, while ensuring compliance with German corporate and civil law requirements. The agreement's structure reflects specific German legal requirements while incorporating international best practices for startup governance.
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1. Parties: Identification and contact details of all founding members
2. Background: Context of the collaboration and purpose of establishing the business
3. Definitions: Key terms used throughout the agreement
4. Business Concept: Description of the business idea and intended operations
5. Contributions: Details of initial contributions (capital, assets, IP, etc.) from each founder
6. Ownership Structure: Distribution of shares/ownership among founders
7. Roles and Responsibilities: Specific duties and areas of responsibility for each founder
8. Decision Making: Process for making business decisions and voting rights
9. Intellectual Property Rights: Ownership and protection of IP created before and during the collaboration
10. Confidentiality: Protection of business secrets and confidential information
11. Non-Competition: Restrictions on competing activities during and after the collaboration
12. Duration and Termination: Term of the agreement and conditions for termination
13. Exit Provisions: Procedures for founder exit, including share transfer and valuation
14. Dispute Resolution: Process for resolving conflicts between founders
15. Governing Law: Specification of German law as governing law and jurisdiction
1. Vesting Schedule: Used when founders agree to a vesting period for their shares
2. External Employment: Needed when founders maintain other employment or business interests
3. Founder Illness/Incapacity: Procedures in case of long-term illness or incapacity of a founder
4. Future Funding: Framework for future investment rounds and dilution
5. Intellectual Property Assignment: Detailed IP assignment when significant pre-existing IP exists
6. Remuneration: Include when founders will receive salaries or other compensation
7. Board Structure: Required for more complex governance structures
8. Deadlock Resolution: Specific procedures for resolving deadlock situations in decision-making
1. Business Plan: Detailed business concept and strategy
2. Initial Contributions Schedule: Itemized list of each founder's initial contributions
3. Share Capital Table: Detailed breakdown of share ownership and classes
4. Intellectual Property Register: List of existing and planned IP assets
5. Founder Details: Complete biographical and contact information for all founders
6. Role Descriptions: Detailed job descriptions and responsibilities for each founder
7. Vesting Schedule: Detailed timeline and conditions for share vesting if applicable
8. Key Performance Indicators: Metrics for evaluating founder performance if applicable
Relevant legal definitions
Agreement
Business
Business Day
Business Plan
Company
Confidential Information
Contributing Founder
Deadlock
Effective Date
Encumbrance
Fair Market Value
Founders
Founding Shares
Future Investors
Good Leaver
Bad Leaver
Intellectual Property Rights
Material Breach
Pre-existing IP
Developed IP
Prohibited Transfer
Qualified Exit Event
Related Persons
Reserved Matters
Share Capital
Shareholders
Tag-along Rights
Drag-along Rights
Territory
Transfer
Vesting Period
Vested Shares
Unvested Shares
Working Day
Competition
Competitor
Controlling Interest
Default Event
Exit
Force Majeure
Group
Management Board
Supervisory Board
Shareholders' Meeting
Articles of Association
Commercial Register
Geschäftsführer
GmbH
Business
Business Day
Business Plan
Company
Confidential Information
Contributing Founder
Deadlock
Effective Date
Encumbrance
Fair Market Value
Founders
Founding Shares
Future Investors
Good Leaver
Bad Leaver
Intellectual Property Rights
Material Breach
Pre-existing IP
Developed IP
Prohibited Transfer
Qualified Exit Event
Related Persons
Reserved Matters
Share Capital
Shareholders
Tag-along Rights
Drag-along Rights
Territory
Transfer
Vesting Period
Vested Shares
Unvested Shares
Working Day
Competition
Competitor
Controlling Interest
Default Event
Exit
Force Majeure
Group
Management Board
Supervisory Board
Shareholders' Meeting
Articles of Association
Commercial Register
Geschäftsführer
GmbH
Clauses
Interpretation
Definitions
Business Purpose
Capital Contributions
Share Allocation
Roles and Responsibilities
Management Rights
Decision Making
Reserved Matters
Intellectual Property
Confidentiality
Non-Competition
Non-Solicitation
Transfer Restrictions
Tag-Along Rights
Drag-Along Rights
Vesting
Leaver Provisions
Good Leaver/Bad Leaver
Share Valuation
Exit Rights
Deadlock Resolution
Dispute Resolution
Force Majeure
Term and Termination
Default
Representations and Warranties
Information Rights
Future Funding
Pre-emption Rights
Board Composition
Shareholder Meetings
Amendment Procedures
Governing Law
Severability
Notices
Entire Agreement
Assignment
Third Party Rights
Costs
Further Assurance
Definitions
Business Purpose
Capital Contributions
Share Allocation
Roles and Responsibilities
Management Rights
Decision Making
Reserved Matters
Intellectual Property
Confidentiality
Non-Competition
Non-Solicitation
Transfer Restrictions
Tag-Along Rights
Drag-Along Rights
Vesting
Leaver Provisions
Good Leaver/Bad Leaver
Share Valuation
Exit Rights
Deadlock Resolution
Dispute Resolution
Force Majeure
Term and Termination
Default
Representations and Warranties
Information Rights
Future Funding
Pre-emption Rights
Board Composition
Shareholder Meetings
Amendment Procedures
Governing Law
Severability
Notices
Entire Agreement
Assignment
Third Party Rights
Costs
Further Assurance
Relevant Industries
Technology
E-commerce
Financial Services
Healthcare
Manufacturing
Professional Services
Media and Entertainment
Software Development
Biotechnology
Renewable Energy
Real Estate
Education Technology
Retail
Consulting
Research and Development
Relevant Teams
Legal
Corporate Governance
Executive Leadership
Business Development
Finance
Administration
Strategy
Compliance
Investment
Relevant Roles
Founder
Co-founder
Chief Executive Officer
Managing Director
Corporate Lawyer
Legal Counsel
Business Development Manager
Chief Technology Officer
Chief Financial Officer
Corporate Secretary
Startup Advisor
Business Consultant
Venture Capitalist
Investment Manager
Company Formation Specialist
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