Benefits

- Clarity of Roles: Defines each founder’s role and contributions.- Equity Protection: Ensures fair distribution of ownership and addresses issues related to equity vesting.- Conflict Resolution: Provides mechanisms for resolving disputes among founders.

Key Elements

- Equity Distribution- Roles and Responsibilities- Vesting Schedule- Decision-Making Process- Exit and Termination Provisions

FAQs

- How is equity typically divided?
Equity is often divided based on each founder’s contribution and negotiation.
- What is a vesting schedule?
A vesting schedule outlines when and how equity is earned over time.
- What happens if a founder leaves?
The agreement should address buyout terms & equity redistribution.