An agreement between startup co-founders covering equity split, roles, vesting, and what happens if a founder leaves.
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This Co-Founder Agreement ("Agreement") is entered into as of [Effective Date] between the following founders of [Company Name] (the "Company"): [Founder Names] (each a "Founder").
Each Founder’s initial role and primary responsibilities are: [Founder Name — Role/Responsibilities, for each Founder]. Roles may evolve as the Company grows, by mutual agreement of the Founders.
Founder equity in the Company is allocated as follows: [Founder Name — Percentage, for each Founder], subject to the vesting schedule below.
Each Founder’s equity vests over [Number] years, with a [Number]-month cliff, meaning no equity vests until that date, after which it vests [monthly / quarterly] in equal installments. This protects the Company and remaining Founders if someone leaves early.
Each Founder assigns to the Company all intellectual property they create in connection with the Company’s business, including anything created before this Agreement that relates to the Company’s business, as listed in [Attachment].
Day-to-day decisions are made by [Decision-Making Structure — e.g. the Founder responsible for that area]. Major decisions ([List — e.g. raising funding, issuing new equity, taking on debt above $X]) require [Approval Threshold — e.g. unanimous consent].
If a Founder leaves the Company before their equity is fully vested — voluntarily or involuntarily — their unvested equity is forfeited back to the Company, and the Company has the option (but not the obligation) to repurchase some or all of their vested equity at [Valuation Method — e.g. fair market value].
Founders agree to first attempt to resolve disagreements directly, then through [Mediation / another agreed process], before pursuing other remedies.
This Agreement is governed by the laws of the State of [State / Jurisdiction].
Founder Signature: _______________________ Date: _______________
Founder Signature: _______________________ Date: _______________