PREPARED FOR
[Founder 2 Full Name]
PREPARED BY
[Founder 1 Full Name]
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Founders Agreement
Founders Agreement
This Founders Agreement (hereinafter referred to as “Agreement”) is made on the effective date [Agreement Effective Date],
By and Between
[Founder 1 Full Name] (hereinafter referred to as the “Founder 1”), having its principal place of business at [Founder 1 Address], and;
[Founder 2 Full Name] (hereinafter referred to as the “Founder 2”), having its principal place of business at [Founder 2 Address].
Both parties are collectively referred to as the “Founders.”
WHEREAS the Founders are collaborating as a team to develop a business project for the Company [Company Name] related to the products/services of the Company.
NOW, THEREFORE, in consideration of the covenants contained herein, the Founders mutually agree to develop the business concept and hereby agree as follows:
TERMS AND CONDITIONS.
1. TRANSFER OF OWNERSHIP TO COMPANY UPON FORMATION.
Upon formation, every Founder shall assign to the Company their rights, title, and interest in the business concept and technology that is related to such business. The Founders shall also perform all the acts and execute the documents as required by the Company. The Company shall be formed upon registration of the business entity by the State of [Registration State] for any form of corporation.
2. OWNERSHIP STRUCTURE.
Upon the formation of the Company, the issued share ownership shall reflect the following:
Name | Shares | Percentage |
[Founder 1 Name] | [Founder 1 Shares] | [Founder 1 Percentage]% |
[Founder 2 Name] | [Founder 2 Shares] | [Founder 2 Percentage]% |
3. FOUNDERS ACTING AS MANAGERS.
Upon the formation of the Company, every Founder shall act as a Manager to manage the Company.
4. CONFIDENTIALITY.
The Founders shall maintain confidentiality regarding the business concept and may disclose it only in accordance with the Agreement between them. Upon the formation of the Company, the Founders may further define any additional confidentiality obligations in detail.
5. ARBITRATION.
In the event of any dispute arising in and out of this Agreement between the Founders, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] Arbitrators which shall be appointed by [Arbitration Appointing Party Name]. The venue of Arbitration shall be [Location of Arbitration] and the seat shall be [State of the Seat]. The Arbitrators' decision shall be final and will be binding on both the Founders.
6. SEVERABILITY.
In the event that any provision of this Agreement is deemed to be invalid or unenforceable, in whole or part, that part shall be severed from the remainder of this Agreement, and all other provisions shall remain in full force and effect as valid and enforceable.
7. GOVERNING LAW.
This Agreement shall be governed in all respects and construed in accordance with the laws of the State of [Governing Law].
8. NOTICES.
Founders Agreement Template
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