ICC Model Contracts for Start-ups

No. E815E

ISBN : 978-92-842-0592-9

Entrepreneurs and their start-up ventures are drivers of today’s economy, and allow creators and businesspeople across the globe to share their innovative ideas with the world. But a great idea and enthusiastic partners are not enough—to create the best conditions for success, entrepreneurs need to ensure their businesses start off with a strong legal foundation.

This package of foundational Model Contracts for Start-ups provides a set of balanced legal models that will save new companies time and legal costs when negotiating and drafting agreements with investors and employees. The package of model documents includes: Model Term Sheet, Model Shareholders Agreement, Model Directors Services/Management Agreement; Model Employment Agreement, Model Confidentiality Agreement and a checklist of issues to consider related to assignment and transfer of intellectual property rights.

The models can be adapted to fit the particular circumstances of the transaction and will allow young businesses to engage legal counsel at a later stage in the process, to help finalize the contracts in accordance with local requirements, saving entrepreneurs precious time and money.

Code ISBN : 978-92-842-0592-9
Number of pages : 93
Publishing date : 2021
Language : English
Format in cm : 21*29.7

Contents

Foreword 

Introduction 

TERM SHEET 
Article
1 Subject matter of the Investment
2 The Parties 
3 Business/Project/Use of proceeds 
4 Purpose of the Term Sheet 
5 Investment 
6 Contractual Documentation 
7 Governance and Management of the Company 
8 Reserved Matters 
9 Information Duties 
10 Exit from the Company 
11 Anti-Dilution 
12 General Dividend Payout 
13 Liquidation Preference 
14 Key People 
15 Lock-Up Period 
16 Exclusivity 
17 Time Schedule and Costs 
18 Resolution of Disputes 
19 Applicable Law 

Annex
1 Cap Table 


ICC MODEL SHAREHOLDERS AGREEMENT FOR START-UP COMPANIES 
Preamble 

Article
1 Definitions and Interpretation 
2 Representations and Warranties 
3 Investment 
4 Incorporation and Articles of Association 
5 Ownership and Share Retention 
6 Transfer of Shares 
7 Governance and Management of the Company 
8 Dividend Policy 
9 Termination & Liquidation of the Company 
10 Term and Termination 
11 Miscellaneous 
12 Resolution of Disputes 
13 Applicable Law 
14 Authentic Text 

Annex
1 Cap Table 
2 Articles of Association of the Company 
3 Form of Deed of Adherence 
4 ICC Confidentiality Clause 2016 
5 Intellectual Property Rights and Works 


ICC MODEL DIRECTORS SERVICES/MANAGEMENT AGREEMENT 
Article
1 Purpose 
2 Method of Providing Services 
3 Compensation for Services Rendered 
4 Term and Termination of the Agreement 
5 Confidentiality 
6 Post-Contractual Non-Competition Covenant 
7 Assignment of Intellectual Property Rights 
8 Notices 
9 Assignment 
10 Other Provisions 
11 Resolution of Disputes 
12 Applicable Law 
13 Parties' Independence 
14 Anti-Bribery and Anti-Corruption 
Annex
1 Fee to Be Paid to Consultant 
2 ICC Confidentiality Clause 2016 
3 ICC Anti-corruption Clause 2012 
A. Option I: Incorporation by reference of Part I of the ICC
Rules on Combating Corruption 2011 
B. Option II: Incorporation in full of Part I of the ICC Rules on Combating Corruption 2011 
C. Option III: Reference to a corporate anti-corruption compliance programme, as described in Article 10 in the 2011 Rules 
Commentary on the ICC Anti-corruption Clause 
Annex I: Part I of the ICC Rules on Combating Corruption 2011 
Article 1 | Prohibited Practices 
Article 2 |Third Parties 
Annex II: Article 10 of the ICC Rules on Combating Corruption 2011 


ICC MODEL EMPLOYMENT AGREEMENT 
Article
1 Commencement of Employment 
2 Job Title 
3 Place of Work 
4 Salary 
5 Working Hours and Procedures 
6 Holidays 
7 Incapacity 
8 Termination and Notice Period 
9 Disciplinary and Grievance Procedures 
10 Data Protection 
11 Changes to Your Terms of Employment 
12 Confidentiality 
13 Restrictive Covenant 
14 Company Property 
15 Anti-Bribery and Anti-Corruption 
16 Third Party Rights 
17 Applicable Law 
18 Resolution of Disputes 
19 Acceptance 

Annex

1 Job Description 
2 ICC Confidentiality Clause 2016 
3 ICC Anti-corruption Clause 2012 
A . Option I: Incorporation by reference of Part I of the ICC Rules on Combating Corruption 2011 
B . Option II: Incorporation in full of Part I of the ICC Rules on Combating Corruption 2011 
C . Option III: Reference to a corporate anti-corruption compliance programme, as described in Article 10 in          the 2011 Rules 
Commentary on the ICC Anti-corruption Clause 
ANNEX I: Part I of the ICC Rules on Combating Corruption 2011 
Article 1 | Prohibited Practices 
Article 2 | Third Parties 
ANNEX II: Article 10 of the ICC Rules on Combating Corruption 2011 

ICC MODEL CONFIDENTIALITY AGREEMENT 
Contents 
I. | Introduction 
II. | ICC Model Confidentiality Agreement 
Article
1 Definitions 
2 Definition of Confidential Information 
3 Obligation to keep confidential and restrictive use 
4 Exclusions from obligation to keep confidential and restrictive use 
5 Copies 
6 Refusal 
7 No licence or ownership 
8 No warranty 
9 No further obligations 
10 Term and termination 
11 Survival of obligations 
12 Breach and remedies 
13 Disposal 
14Protective order 
15 Good faith and fair dealing 
16 Dispute resolution 
17 Applicable law 
18 No assignment 
19 Written form 
20 Default rules 

III. | ICC Confidentiality Clause 2016 

CHECKLIST FOR START-UPS ON IP ASSIGNMENT AND LICENSING 
I. General Information 
II. Assignment of IP Rights 
III. Licensing of IP Rights 

ICC PRINCIPLES TO FACILITATE COMMERCIAL NEGOTIATION 

The ICC Model Contracts for Start-ups were developed by a dedicated working group of international expert practitioners associated with the ICC Commission on Commercial Law and Practice (CLP), and benefited particularly from the leadership and insight of CLP Commission Chair Ercüment Erdem (Turkey), as well as the active participation of the following members:

Bettina Geisler (Germany);
Sergi Giménez Binder (Spain);
Peter Poleacov (Germany); 
Ecem Süsoy (Turkey); 
Carlo Tabellini (Italy)
Cecilia Xu Lindsey (United Kingdom).

The models also benefitted from robust commentary from experts across the global network of ICC national committees.