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Founders Agreement
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Prepared for:
[Founder 1 Name, Founder 2 Name]

Prepared by:
[Founder Company]

Founders Agreement

This Founders Agreement (hereinafter referred to as “Agreement”), is made on the effective date [Date]

By and Between

The Founder (hereinafter referred to as “Founder 1”) having its principal place of business at [Address], and;

The Founder (hereinafter referred to as “Founder 2”) having its principal place of business at [Address]

Both the Parties are collectively referred to as the “Founders”

WHEREAS the Founders are collaborating as a team for developing a business project for the Company [Company Name] related to the product/services of the Company

NOW, THEREFORE, in consideration of the covenants contained herein the Founders mutually agree to develop the business concept and hereby agree as follows:

Terms and Conditions

1. Transfer of Ownership to Company upon Formation

Upon formation, every Founder shall assign to the Company its rights, title, and interest to the business concept and technology which is related to such business. The Founders shall also perform all the acts and execute the documents as required by the Company. The Company shall be formed upon registration of the business entity by the State [State] for any form of corporation.

2. Ownership Structure

Upon the formation of the Company, the issued share ownership shall reflect the following:
Name
Shares
Percentage
[Founder 1 Name]
[Founder 1 Shares]
[Founder 1 Percentage]
[Founder 2 Name]
[Founder 2 Shares]
[Founder 2 Percentage]

3. Founders acting as Managers

Upon the formation of the Company, every Founder shall act as a Manager to manage the Company. 

4. Confidentiality

The Founders shall maintain confidentialty about the business concept and may disclose only upon the Agreement between the Founders. Upon the formation of the Company, the Founders may further define any additional confidentiality obligations in detail.

5. Arbitration

In the event of any dispute arising in and out of this Agreement between the Founders, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] Arbitrators which shall be appointed by [Party Name]. The venue of Arbitration shall be [Venue/Location of Arbitration] and the seat shall be [State]. The Arbitrators' decision shall be final and will be binding on both the Founders.

6. Miscellaneous

  1. Severability: In the event, any provision of this Agreement is deemed to be invalid or unenforceable, in whole or part, that part shall be severed from the remainder of this Agreement, and all other provisions shall remain in full force and effect as valid and enforceable.
  1. Governing Law: This Agreement shall be governed in all respects by, and be construed in accordance with, the laws of State of [State].
  1. Notices: Any notices required or permitted by this Agreement shall be in writing and delivered by certified mail or courier to the above-mentioned address.
  1. Entire Agreement: The Entire Agreement herein set forth by the Founders hereto is binding upon both the Founders.

Acceptance and Signature

IN WITNESS THEREOF, the Founders hereto have executed this Agreement as on the day and year mentioned above.
Founder 1 Founder 2
Signature
Assign signer 1
Name
Assign signer 1
Date
Assign signer 1
Signature
Assign signer 2
Name
Assign signer 2
Date
Assign signer 2
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Free Founders Agreement Templates

Are you planning to start your own company? Here's what you need to - An agreement between the startup Founders which will legally bind both the parties