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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."
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
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
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
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
Legal
Executive Leadership
Corporate Governance
Finance
Administration
Company Secretariat
Board of Directors
Investment
Operations
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
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