Co-founder agreement generator
A pre-incorporation founders’ agreement covering equity split, vesting, roles, IP assignment, decision rights and tie-breaker. Not legal advice — have a lawyer review before signing.
{{org_name}}
Founders’ Agreement
This Founders’ Agreement (the “Agreement”) is entered into between {{f1_name}} (“Founder 1”) and {{f2_name}} (“Founder 2”), collectively the “Founders”, for the purpose of establishing {{org_name}} (the “Company”).
1. Business. The Company shall engage in the following business: {{biz_desc}}
2. Equity Split. The Founders shall hold equity in the Company as follows:
- {{f1_name}}: {{f1_pct}}% — Role: {{f1_role}}
- {{f2_name}}: {{f2_pct}}% — Role: {{f2_role}}
3. Vesting. All founder equity shall be subject to a {{vest_years}}-year vesting schedule with a {{cliff_months}}-month cliff commencing on {{vest_start:date}}. If a Founder ceases service before the cliff, all of that Founder’s equity reverts to the Company. After the cliff, vesting accrues monthly.
4. Time Commitment. {{commitment}}
5. Intellectual Property. Each Founder hereby irrevocably assigns to the Company any and all intellectual property created in connection with the Company’s business, whether before or during the term of this Agreement.
6. Confidentiality. The Founders shall hold all Company information in strict confidence and shall not disclose it to any third party without the prior written consent of the other Founder.
7. Decisions. Major decisions of the Company (including raising capital, issuing equity, hiring senior management, taking on debt over ₹500,000, and selling the Company) shall require: {{major_decisions}}. Day-to-day operational decisions: {{tiebreaker}}.
8. Departure of a Founder. Should a Founder voluntarily leave the Company or be terminated for cause, only the vested portion of their equity shall be retained; unvested equity shall return to the Company’s pool, subject to reissue to a replacement co-founder or new hire as determined by the remaining Founder(s).
9. Non-Compete. Each Founder agrees not to engage in any business that directly competes with the Company for the duration of their involvement plus twelve (12) months thereafter.
10. Definitive Documents. The Founders shall execute formal Shareholders’ Agreement, Articles of Association, Employment Agreements and IP Assignment Agreements upon incorporation of the Company, which shall supersede this Agreement to the extent of any inconsistency.
11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of India (or the applicable jurisdiction at the time of incorporation).
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.