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Co Founder Exit Agreement

Co Founder Exit Agreement Template for Switzerland

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Key Requirements PROMPT example:

Co Founder Exit Agreement

"I need a Co-Founder Exit Agreement for my Swiss technology startup, where our CTO co-founder is leaving amicably to pursue other opportunities but will continue providing technical consulting services for 6 months until June 2025; the agreement needs to include share transfer terms and ongoing consulting arrangements."

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Document background
The Co-Founder Exit Agreement is a crucial document used when a founding member decides to leave or is required to leave a company in Switzerland. This agreement is essential for managing the complex process of separating a co-founder's interests from the business while ensuring business continuity and protecting all parties' rights. It typically becomes necessary due to various circumstances such as strategic disagreements, personal reasons, or the natural evolution of the business. The document must comply with Swiss corporate law, particularly the Swiss Code of Obligations, and addresses critical elements including share valuation, transfer mechanisms, financial settlements, and post-exit obligations. It serves as a comprehensive framework for managing potential risks and ensuring a smooth transition, while also considering tax implications and regulatory requirements under Swiss law.
Suggested Sections

1. Parties: Identification of all parties to the agreement including the exiting co-founder, remaining co-founders, and the company

2. Background: Context of the co-founder relationship, reason for exit, and current ownership structure

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

4. Share Transfer: Details of the transfer of shares, including pricing, payment terms, and mechanism for transfer

5. Consideration and Payment Terms: Comprehensive breakdown of the exit package, including payment schedule and any earn-out provisions

6. Resignations: Formal resignations from all positions (director, officer, employee) within the company

7. Confidentiality Obligations: Ongoing obligations regarding company confidential information

8. Non-Compete and Non-Solicitation: Restrictions on future competitive activities and engagement with company employees/clients

9. Release of Claims: Mutual release of claims between parties

10. Continuing Obligations: Any ongoing responsibilities or obligations of the exiting co-founder

11. Representations and Warranties: Standard representations regarding authority, ownership, and compliance

12. Announcements and Communications: Agreement on how the exit will be communicated internally and externally

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Intellectual Property Rights: Specific provisions regarding IP ownership and transfer, used when the exiting co-founder was involved in IP creation

2. Consulting Services: Terms for any ongoing advisory or consulting arrangement, included when the exiting co-founder will continue providing services

3. Tax Indemnities: Specific tax-related provisions and indemnities, included when complex tax implications exist

4. Earn-Out Provisions: Detailed terms for performance-based additional payments, included when part of consideration is contingent on future performance

5. Personal Guarantees: Provisions dealing with existing personal guarantees, included when co-founder has provided personal guarantees for company obligations

6. Employee Stock Options: Provisions regarding treatment of existing stock options, included when the co-founder holds company stock options

7. Board Observer Rights: Terms for any continuing board observation rights, included when agreed as part of exit package

Suggested Schedules

1. Schedule 1: Share Details: Details of shares being transferred, including share certificates and ownership history

2. Schedule 2: Payment Schedule: Detailed breakdown of all payments, including amounts, dates, and payment methods

3. Schedule 3: Company IP Register: List of company intellectual property and respective ownership/rights

4. Schedule 4: Resignation Letters: Form of resignation letters from various positions

5. Schedule 5: Handover Plan: Detailed plan for transitioning responsibilities and projects

6. Schedule 6: Company Assets: List of company assets in possession of exiting co-founder to be returned

7. Appendix A: Calculation of Exit Payment: Detailed methodology and calculations for exit payment determination

8. Appendix B: Communications Plan: Template announcements and communication strategy for various stakeholders

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 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

Financial Services

Manufacturing

Professional Services

Healthcare

E-commerce

Software Development

Consulting

Real Estate

Retail

Media and Entertainment

Biotechnology

Education Technology

Clean Technology

Digital Services

Relevant Teams

Legal

Human Resources

Executive Leadership

Board of Directors

Corporate Governance

Finance

Operations

Administration

Compliance

Corporate Communications

Relevant Roles

CEO

Managing Director

Company Founder

Co-Founder

Chief Legal Officer

General Counsel

Corporate Lawyer

HR Director

Chief Financial Officer

Board Member

Company Secretary

Chief Operating Officer

Corporate Governance Officer

Business Development Director

Chief Strategy 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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