Founders’ Agreement Template 

This Founders’ Agreement is entered into on [Date], by and between the following individuals (collectively, the “Founders”): 

• Founder A: [Name, Address] 

• Founder B: [Name, Address] 

(Include more Founders as needed.) 

1. Purpose and Business Concept 

The Founders agree to collaborate on forming a business entity (the “Company”) under the working name [Name of Venture]. The purpose of this Agreement is to outline the rights and responsibilities of each Founder prior to formal incorporation. 

2. Ownership and Equity Allocation 

 2.1. Initial Ownership 

Founder A shall own [Percentage]% equity, Founder B shall own [Percentage]%, etc. 

2.2. Vesting Schedule (If Applicable)

Equity might vest over [X years] to ensure commitment. Outline conditions for partial or accelerated vesting. 

3. Roles and Responsibilities 

• Founder A: [Role/Title, e.g., CEO, CTO] 

• Founder B: [Role/Title, e.g., COO, CFO] 

Describe each Founder’s primary duties and decision-making authority. 

4. Capital Contributions 

Detail the initial contributions in cash, services, or intellectual property. State how they affect ownership (if at all). 

5. Confidentiality and IP 

All intellectual property created in relation to the business belongs to the Company. Each Founder must maintain confidentiality of any proprietary information. 

6. Decision Making and Dispute Resolution 

• Voting: Outline how major decisions are made (majority vote, unanimous, or based on equity). 

• Deadlock: Provide a mechanism to resolve disputes if the Founders cannot agree. 

7. Termination or Founder Exit 

Define what happens if a Founder resigns, is removed for cause, or passes away. Include buyback provisions or the right of the Company/founders to purchase that equity. 

8. Formal Incorporation 

The Founders intend to incorporate the Company under the laws of [State], with appropriate formation documents. This Agreement remains in effect until superseded by official corporate bylaws or shareholder agreements. 

9. Governing Law 

This Agreement is governed by the laws of [State]. Any dispute shall be resolved in the courts of [City, State], unless otherwise agreed. 

10. Signatures 

Founder A: _______________________   Date: ______________ 

Founder B: _______________________   Date: ______________ 

(Include additional signatures if more founders are involved.)