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Founder Exit Agreement

Founder Exit Agreement Template for Switzerland

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Key Requirements PROMPT example:

Founder Exit Agreement

"I need a Founder Exit Agreement under Swiss law for a technology startup where I'm the departing founder holding 25% shares, planning to transfer all shares to remaining shareholders by March 2025, with a 12-month non-compete clause and installment payments."

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Document background
The Founder Exit Agreement is a crucial document used when a founding member decides to leave or is required to leave their company in Switzerland. This agreement is essential for companies at various stages of growth, from early-stage startups to established enterprises, where a founder's departure needs to be formally documented and executed. The agreement covers comprehensive aspects including share transfers, valuation mechanisms, post-exit obligations, and transition arrangements, all while ensuring compliance with Swiss legal requirements. It's particularly important as it helps prevent future disputes by clearly defining the terms of separation, protecting both the departing founder's interests and the company's future operations. The document must comply with Swiss corporate law, particularly the Swiss Code of Obligations, and should address specific Swiss tax implications and regulatory requirements.
Suggested Sections

1. Parties: Identification of the departing founder, the company, and other relevant parties (e.g., remaining shareholders)

2. Background: Context of the founder's involvement, current shareholding, and reasons for exit

3. Definitions: Definitions of key terms used throughout the agreement

4. Resignation and Release from Positions: Terms of the founder's resignation from all positions (director, officer, employee, etc.)

5. Share Transfer Terms: Details of the transfer of the founder's shares, including pricing, payment terms, and mechanics

6. Consideration and Payment Terms: Specification of the exit package, including cash consideration, deferred payments, and any other financial benefits

7. Handover and Transition: Process and obligations for transitioning responsibilities and company materials

8. Confidentiality: Ongoing obligations regarding confidential information

9. Non-Competition and Non-Solicitation: Post-exit restrictions on competitive activities and solicitation of employees/customers

10. Intellectual Property Rights: Confirmation of IP ownership and transfer of any remaining rights

11. Tax Matters: Allocation of tax responsibilities and related obligations

12. Representations and Warranties: Standard representations from both parties

13. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, entire agreement, etc.

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Earnout Provisions: Include when part of the exit consideration is contingent on future performance

2. Ongoing Advisory Role: Include when the founder will continue in an advisory capacity

3. Share Option Treatment: Include when there are outstanding share options or other equity instruments

4. Company Loans and Debts: Include when there are outstanding loans or debts between founder and company

5. Personal Guarantees: Include when founder has provided personal guarantees that need to be released

6. Future Financing Rounds: Include when addressing founder's rights in future funding rounds

7. Dispute Resolution: Include when parties prefer arbitration or specific dispute resolution mechanisms

8. Insurance and Indemnification: Include when addressing ongoing D&O insurance coverage or specific indemnification terms

Suggested Schedules

1. Schedule of Shares: Detailed list of shares and other equity instruments being transferred

2. Calculation of Consideration: Detailed breakdown of exit package calculation

3. Company Positions: List of all positions held by founder to be resigned from

4. Handover Checklist: Detailed list of items, accounts, and materials to be handed over

5. Company IP: Schedule of relevant IP rights and confirmations

6. Outstanding Loans and Obligations: Details of any loans, guarantees, or other financial obligations

7. Required Third Party Consents: List of required consents and approvals for the exit

8. Form of Resignation Letters: Templates for various resignation letters required

9. Form of Public Announcement: Agreed form of any public or internal announcements regarding the exit

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions


































Clauses







































Relevant Industries

Technology

Start-ups

Financial Services

Professional Services

Manufacturing

Healthcare

E-commerce

Software Development

Biotechnology

Consumer Goods

Digital Media

Consulting

Real Estate

Clean Technology

Relevant Teams

Legal

Executive Leadership

Board of Directors

Human Resources

Finance

Corporate Development

Compliance

Company Secretariat

Risk Management

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

Company Founder

Board Member

General Counsel

Corporate Lawyer

Chief Financial Officer

Company Secretary

Head of Legal

Chief Operating Officer

HR Director

Corporate Development Director

Compliance Officer

Board Chairman

Chief Legal Officer

Industries







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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