12. FOUNDER'S AGREEMENT
THIS FOUNDERS' AGREEMENT ( also referred to as the ‘Agreement’) is made as of [DD/MM/YYYY] by
and among [XXXX] (the ‘Company’), and the following founders (the ‘Founders’):
[Insert Founder Name]
[Insert Founder Name]
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:
I.Business Venture
The Founders have created [XXXX]
The Company's initial place of business is located at [business Address]
Founders Agreement Template
13. II.Initial Capital
Each Founder agrees to contribute ₹₹₹ as non-refundable initial capital to account for expected and
potential company expenses.
The Corporation may receive further capital contributions to help cover future operational expenses.
These further capital donations may only be made with the Founders' unanimous written consent.
III. Ownership Structure
Following the company's establishment, the founders will get the following percentages of
ownership:
[Provide an explanation of share distribution in your founders agreement]
These shares are intended to demonstrate the Founders' initial proportional ownership of the Firm.
These shares do not qualify as securities of any kind and are not transferable.
Founders Agreement Template
14. IV. Voting
Voting rights shall depend on the distribution of each Founder's percentage of shares in the event that a
matter arises that relates to the business venture and necessitates a majority vote in order to proceed.
(Insert Name) will conduct the deciding vote in the event of a tied vote.
V. Vesting Schedule
The founders may establish a vesting timetable, if they so want. The shares granted to each founder will vest
according to a vesting schedule that will be decided upon later by agreement of all the founders.The
remaining portion of any shares that are entitled to a founder will be returned to the company if the founder
ends their association with the company for any reason prior to the vesting of all of their shares.
VI. Intellectual Property Ownership
Throughout the duration of this founders agreement, each founder shall cede and assign to the company all
of their rights, titles, and interests in the business venture, including all ideas (whether formed or unformed)
and work product that stems from any activity performed by the Founder. Additionally, each founder shall
take any other steps as may be required to grant the company full legal ownership of the business venture
and any associated intellectual property. ( also add other terms and clauses as per your business and IP
values)
Founders Agreement Template
15. VII. Amendment and Waiver; Termination
No oral amendment, modification, termination, or waiver of any provision of this Agreement
shall be binding. Only a written agreement signed by the Founders may alter, modify, or
terminate this Agreement.
VIII. Resignation and Removal in Founders Agreement
A Founder may resign from the Firm by providing written notice to the other Founders. Upon
resignation, the departing Founder will receive any positive capital account balance within 180
days. In the event that all Founders choose to resign, the Company will dissolve, and this
Agreement will terminate after the Company's affairs have been settled and assets and liabilities
distributed according to this Agreement. Additionally, each Founder acknowledges that a
majority of votes is required under the voting rules specified in this Agreement to remove any
Founder.
Founders Agreement Template
16. X.Miscellaneous Provisions
A. Confidentiality
The Founders are obligated to ensure the confidentiality of any material labelled as 'Confidential Information',
including but not limited to business records and plans, trade secrets, technical information, product concepts,
contracts, financial data, pricing structure, discounts, computer programs and listings, source code and/or object
code, copyright and intellectual property, inventions, sales leads, strategic partnerships, partners, and client and
customer lists. The nature of the material and how it was shared would suggest that a reasonable person would
expect it to be kept confidential. The disclosure of Confidential Information will only occur when necessary and with
the unanimous agreement of all Founders.
B. Dispute Resolution
The Founders undertake to make a good faith effort to resolve any disagreement through mediation supervised by the
American Arbitration Association, or an equivalent dispute resolution agency, if one arises out of or relates to this
Founders' Agreement or its breach. If mediation cannot resolve their dispute, the Founders agree to arbitration
performed by the American Arbitration Association or an equivalent dispute resolution agency. On the basis of the
Award, any court having jurisdiction may render a decision.
Founders Agreement Template
17. C. Entire Agreement
Any prior agreements and understandings between the parties are merged into this Founders Agreement, which is the only
document that fully and accurately captures their understanding. No statement or representation made by the other party not
contained in this agreement will be relied upon by either party. Only a formal revision signed by all parties may change this
agreement. The parties to this agreement have caused it to be properly completed as of the date first mentioned above, IN
WITNESS WHEREOF.
FOUNDER #1
___________________________________________________
[Insert Founder Name]
FOUNDER #2
___________________________________________________
[Insert Founder Name]
C.
Founders Agreement Template
