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Founder Equity Agreement Template for Ireland

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Key Requirements PROMPT example:

Founder Equity Agreement

"I need a Founder Equity Agreement for a technology startup with three co-founders in Ireland, where two founders will work full-time and one part-time, with a 40-30-30 equity split and four-year vesting schedule starting March 2025."

Document background
The Founder Equity Agreement serves as a crucial foundation document for new companies in Ireland, typically implemented during or shortly after company formation. This agreement is essential when two or more founders are establishing a business together and need to formalize their equity arrangements. It addresses key aspects required under Irish law, including share allocation, vesting schedules, transfer restrictions, and management rights. The document ensures compliance with the Irish Companies Act 2014 and provides necessary protections for all founding members. A well-structured Founder Equity Agreement helps prevent future disputes by clearly defining rights, responsibilities, and expectations of all parties involved, while also establishing a framework for potential future investment or exit scenarios.
Suggested Sections

1. Parties: Identifies all founding members and the company as parties to the agreement

2. Background: Sets out the context of the agreement, including the company's formation and the founders' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Share Allocation and Capital Structure: Details the initial equity split between founders and share class rights

5. Founder Commitments and Responsibilities: Outlines each founder's roles, responsibilities, and time commitment to the company

6. Vesting Provisions: Establishes the vesting schedule for founder shares and conditions for vesting

7. Transfer Restrictions: Specifies limitations on the transfer of shares and right of first refusal provisions

8. Intellectual Property Rights: Addresses assignment of IP rights from founders to the company

9. Confidentiality: Defines confidential information and establishes confidentiality obligations

10. Decision Making and Management: Outlines how key decisions will be made and the management structure

11. Termination and Exit: Describes circumstances for termination and procedures for founder exits

12. Dispute Resolution: Sets out the process for resolving disputes between founders

13. General Provisions: Includes standard boilerplate clauses such as notices, entire agreement, and governing law

Optional Sections

1. Non-Competition and Non-Solicitation: Restricts founders from competing activities - include when founders have existing businesses or industry connections

2. Founder Loans: Include when founders are providing initial capital as loans rather than equity

3. Special Share Rights: Add when creating different share classes with specific rights for different founders

4. External Investment Provisions: Include when anticipating immediate external investment

5. Founder Benefits and Remuneration: Add when establishing specific compensation or benefit arrangements

6. Dead Lock Provisions: Include when there are equal ownership splits that could lead to decision-making deadlocks

7. Tag-Along and Drag-Along Rights: Add when planning for potential future sale scenarios

8. Family Member Provisions: Include when founders want to address family succession or transfer rights

Suggested Schedules

1. Schedule 1: Share Capital Table: Detailed breakdown of shareholding structure and share classes

2. Schedule 2: Founder Details: Complete information about founders including contact details and share certificates

3. Schedule 3: Vesting Schedule: Detailed vesting timeline and milestones

4. Schedule 4: Company IP Register: List of intellectual property being transferred to the company

5. Schedule 5: Reserved Matters: List of decisions requiring special majority or unanimous consent

6. Schedule 6: Initial Business Plan: Overview of company's initial business objectives and strategy

7. Appendix A: Share Certificate Template: Standard form of share certificate to be issued

8. Appendix B: Deed of Adherence: Template for new shareholders to join the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





















































Clauses








































Relevant Industries

Technology

Professional Services

Financial Services

Healthcare

Manufacturing

Retail

E-commerce

Biotechnology

Real Estate

Education

Media and Entertainment

Consulting

Software Development

Green Technology

Food and Beverage

Telecommunications

Relevant Teams

Legal

Executive Leadership

Corporate Governance

Finance

Administration

Company Secretariat

Board of Directors

Investment

Operations

Relevant Roles

Founder

Co-founder

CEO

Managing Director

Company Secretary

Chief Financial Officer

Chief Technology Officer

Chief Operating Officer

Corporate Lawyer

Legal Counsel

Business Development Director

Startup Advisor

Venture Capitalist

Investment Manager

Board Member

Director

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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