A lightweight, non-binding document capturing early founders’ intentions before formalizing a co-founder agreement or forming a company.
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This Memorandum of Understanding ("MOU") is entered into as of [Effective Date] between the following prospective co-founders: [Founder Names], regarding a potential venture to be called [Working Company Name].
This MOU reflects the parties’ current intentions and is not a binding contract, except for the confidentiality provision in Section 6. The parties intend to formalize their arrangement in a binding Co-Founder Agreement and/or company formation documents once key terms are finalized.
The parties are exploring a venture focused on: [Description of Business Concept].
Each party’s anticipated initial role: [Founder Name — Anticipated Role, for each].
The parties currently anticipate an equity split of approximately: [Split], subject to change as the venture develops and is formalized.
Each party agrees to keep confidential any non-public information about the business concept shared in connection with this MOU, and not to pursue the concept independently without the others.
The parties intend to finalize a binding Co-Founder Agreement by [Target Date]. This MOU expires on that date if no binding agreement has been signed, unless extended in writing.
Founder Signature: _______________________ Date: _______________
Founder Signature: _______________________ Date: _______________