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Founders' Agreement Template
What is a founders' agreement?
A founders' agreement is a contract between the co-founders of a startup that records who owns what, what each founder contributes, how equity vests, how decisions are made and what happens if a founder leaves.
When you need one
- Two or more people are starting a company together
- Before you incorporate or raise money
- When one founder contributes cash and another contributes time or IP
Key clauses included
- Roles and time commitment
- Equity split and vesting schedule with cliff
- IP assignment to the company
- Decision-making and deadlock
- Founder departure (good and bad leaver)
- Confidentiality and non-solicitation
- Dispute resolution
What the template covers
- The Business
- Roles and Commitment
- Equity and Contributions
- Vesting
- Leaving the Business
- Intellectual Property
- Decisions
- Confidentiality and Non-Solicitation
- Future Shareholders' Agreement
- General
- Governing Law and Disputes
How to use it
- Buy and download the editable Word file.
- Fill in the brackets: names, dates, fees, scope and governing law. Delete options that don't apply.
- Check it against local law, and have a lawyer review it for high-value deals.
- Sign it on paper or with any e-signature tool.
Frequently asked questions
Do we need a founders' agreement if we are already incorporated?
Yes. Incorporation documents rarely cover vesting, roles or what happens when a founder leaves. A founders' agreement fills those gaps.
What is founder vesting?
Vesting means a founder earns their shares over time, commonly four years with a one-year cliff, so a founder who leaves early does not keep a full stake.
What format is the template in?
You get an editable Microsoft Word (.docx) file that also opens in Google Docs, Pages and LibreOffice.
Can I use this template in my country?
The templates are written for international use with placeholders for governing law and local details. Contract law differs between countries and states, so check the final document against local law, especially for employment and consumer contracts.
Is this legal advice?
No. A template is a starting point, not advice on your situation. For high-value or unusual deals, have a lawyer review the completed document.
How do I receive the file?
Right after payment you are taken to a download page, and PayPal emails you a receipt. Keep the download page link to download the file again.
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