Founder Departure Agreement Template

This Founder Departure Agreement is made on [Date] by and between:

Company: [Company Name]
Address: [Address]

Departing Founder: [Founder Full Name]
Address: [Address]

1. Background

The Founder has served the Company in the following role or roles:

[Founder / Officer / Director / Employee / Advisor / Other]

The parties wish to set out the terms of the Founder’s departure from the Company and any related transition matters.

2. Departure Date

The Founder’s departure date shall be:

[Departure Date]

As of that date, the Founder shall cease providing services to the Company except as otherwise stated in this Agreement.

3. Resignation from Roles

Effective on the departure date, the Founder shall resign from the following positions, if applicable:

☐ officer position
☐ director or board seat
☐ employee position
☐ manager role
☐ authorized signer status
☐ other: [Describe]

The Founder agrees to sign any additional resignation letters, board consents, or corporate documents reasonably needed to confirm these resignations.

4. Equity and Ownership Treatment

The Founder’s ownership interest shall be handled as follows:

☐ vested equity remains with the Founder, subject to existing company documents
☐ unvested equity is forfeited
☐ the Company may repurchase some or all equity as follows: [Describe]
☐ options or units shall be treated as follows: [Describe]
☐ other: [Describe]

Relevant grant, vesting, or purchase documents:

[Insert details]

5. Compensation and Final Payments

The Company shall pay the Founder the following, if applicable:

[final salary or wages]
[expense reimbursement]
[accrued amounts, if any]
[separation payment, if any]
[other amount]

Payment terms:

[Insert details]

6. Return of Company Property

No later than [Date], the Founder shall return all Company property, including:

[computers or devices]
[keys or access cards]
[files or records]
[credit cards]
[passwords or credentials]
[other property]

The Founder shall not retain copies of Company property or confidential records except as permitted in writing or required by law.

7. Confidentiality and Intellectual Property

The Founder acknowledges that any existing confidentiality, invention assignment, intellectual property, or proprietary information obligations remain in effect according to their terms.

The Founder further agrees not to use or disclose confidential Company information except as allowed by law or written Company authorization.

8. Transition Assistance

After the departure date, the Founder shall provide the following transition support, if applicable:

[handover meetings]
[status updates]
[introductions to clients, vendors, or staff]
[document transfer]
[limited advisory help for a defined period]
[other transition duties]

Transition period, if any:

[Insert dates or duration]

9. Public Announcements and Communications

The parties shall handle internal or external announcements regarding the Founder’s departure as follows:

[Insert communication terms]

Neither party shall make statements about the departure beyond what is reasonably necessary for business, legal, or operational purposes, except as otherwise agreed or required by law.

10. Release of Claims

The following release terms shall apply, if any:

☐ mutual release
☐ release by Founder only
☐ release by Company only
☐ no release under this Agreement
☐ other: [Describe]

If a release applies, describe its scope here:

[Insert release terms]

11. Non-Disparagement and Cooperation

The parties agree as follows, if applicable:

☐ no non-disparagement term applies
☐ Founder agrees not to disparage the Company
☐ mutual non-disparagement applies
☐ Founder agrees to reasonably cooperate in future company matters relating to the Founder’s prior service
☐ other: [Describe]

12. No Admission

This Agreement is intended to resolve transition and departure matters only.

Unless specifically stated otherwise, this Agreement does not constitute an admission of wrongdoing, liability, or fault by either party.

13. Governing Law

This Agreement shall be governed by the laws of the state of [State].

14. Entire Agreement

This Agreement contains the full understanding between the parties regarding the Founder’s departure and replaces prior discussions on that subject unless otherwise stated in writing.

Any amendment to this Agreement must be made in writing and signed by both parties.

15. Signatures

Company Signature: __________________________
Name: [Full Name]
Title: [Title]
Date: [Date]

Founder Signature: __________________________
Name: [Founder Full Name]
Date: [Date]