Founders’ Agreement

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Advantages of Founders’ Agreement

Better Understanding

The founding associates have to discuss things that involve the company.

Ownership Structure

The founders’ agreement should clearly describe the structure of ownership of the startup.

Confidentiality

Confidentiality clause in the agreement places an obligation on the founders to protect sensitive business information.

Transfer of Shares

Concept of a lock-in period of certain years during which the founders cannot transfer their shares to any third party.

Steps

for Founders’ Agreement

Step 1The Names of Co-Founders and the Business

Step 2Length of Validity

Step 3Company Goals

Step 4Each Owner’s Roles and Responsibilities

Step 5Salary and Compensation

Step 6Exit Clauses

Step 1The Names of Co-Founders and the Business

Step 2Length of Validity

Step 3Company Goals

Step 4Each Owner’s Roles and Responsibilities

Step 5Salary and Compensation

Step 6Exit Clauses

What all you get

with Founders’ Agreement

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