Founders Agreement

FOUNDERS' AGREEMENT FORMATThis Founders’ Agreement (here in after termed as “MOU”) is made and entered into this [date] (here in after termed as “Said Date”) by and between [name] with its principal place of business located at [address] (the “Founder 1”) and [name] with its principal place of business located at [name] (the “Founder 2”) …………….(continue naming more founders)  (hereinafter referred to individually as a “founder” and collectively as “founders”).WHEREAS, the founders have decided to form a company named [company name] at [location]. WHEREAS, the Company formed by the founders undergo the business of [description of business];WHEREAS, the founders’ agreement shall be effective from [date];NOW, THEREFORE, the Parties hereby agree as follows:<ol><li>Each founder must grant and transfer the all the ownership rights and [list various rights to be transferred] to the company on the date of formation of the company.</li><li>Any agreement to be made in that involves an ownership interest in the Business or Technology or related intellectual property to be transferred to a third party before the formation of the Company must be agreed upon by each Founder. Such agreements will bring obligation to the founders to disclose the founder’s agreement to the 3rd party.</li><li>For purposes of this Agreement, the Company shall be considered formed upon registration and receiving certificate of incorporation.</li><li>The founders shall have the interest in share as per the following</li></ol>[list founders and their amount of share in the company]<ol start="5"><li>Upon the formation of the company the founders can elect their Board of Directors through the means of election.</li><li>The founders agree to keep [list the subjects to be kept confidential] very confidential and shall not disclose with a third party.</li><li>In case of death or departure of a founder [mention the effect of death or departure].</li><li>The founder shall agree to meet the liabilities [list the share of liability of each founder].</li><li>In case of dispute the founders shall use arbitration as a method of dispute resolution before approaching the court of law</li><li>The agreement shall be governed by [law which governs].</li><li>[other terms and conditions]</li></ol>Signed for and on behalf of                                  Signed for and on behalf of[insert name of founder 1]                                   [insert name of founder 2]By:                                                   By:Name:                                           Name:Signature                                       SignatureeStartIndia

FOUNDERS' AGREEMENT FORMAT

This Founders’ Agreement (here in after termed as “MOU”) is made and entered into this [date] (here in after termed as “Said Date”) by and between [name] with its principal place of business located at [address] (the “Founder 1”) and [name] with its principal place of business located at [name] (the “Founder 2”) …………….(continue naming more founders) (hereinafter referred to individually as a “founder” and collectively as “founders”).

WHEREAS, the founders have decided to form a company named [company name] at [location].

WHEREAS, the Company formed by the founders undergo the business of [description of business];

WHEREAS, the founders’ agreement shall be effective from [date];

NOW, THEREFORE, the Parties hereby agree as follows:

Each founder must grant and transfer the all the ownership rights and [list various rights to be transferred] to the company on the date of formation of the company.
Any agreement to be made in that involves an ownership interest in the Business or Technology or related intellectual property to be transferred to a third party before the formation of the Company must be agreed upon by each Founder. Such agreements will bring obligation to the founders to disclose the founder’s agreement to the 3^rd party.
For purposes of this Agreement, the Company shall be considered formed upon registration and receiving certificate of incorporation.
The founders shall have the interest in share as per the following

[list founders and their amount of share in the company]

Upon the formation of the company the founders can elect their Board of Directors through the means of election.
The founders agree to keep [list the subjects to be kept confidential] very confidential and shall not disclose with a third party.
In case of death or departure of a founder [mention the effect of death or departure].
The founder shall agree to meet the liabilities [list the share of liability of each founder].
In case of dispute the founders shall use arbitration as a method of dispute resolution before approaching the court of law
The agreement shall be governed by [law which governs].
[other terms and conditions]

Signed for and on behalf of Signed for and on behalf of

[insert name of founder 1] [insert name of founder 2]

By: By:

Name: Name:

Signature Signature

eStartIndia

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FOUNDERS AGREEMENT

Every company will have its founders taking the initiative of forming the company. They shall be vested with various rights and responsibilities. A legal document that lists down the does and does not of the founding members which are made between the founders of a company is called a Founders Agreement which shall have legal binding. Every aspect that details the relationship between the founder and the company from the date of forming the relationship to the date of its ending will be broadly mentioned in an Agreement.

eStartIndia is an online legal service platform where a team of expert legal professionals from India, offering a variety of legal services relating to Agreement of Founder, master service agreement, consultancy agreement, legal notices, negotiable instruments, company registrations, intellectual property, tax services, personal and property services.

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WHY CHOOSE eStartIndia?

This organization comprises of expert legal professionals, who use their expertise will draft a founder’s agreement that shall cover all the legal requirements and needs of the parties. The experience and the knowledge that our professionals hold can help you in including clauses in your agreement that shall effectively describe the relationship between the parties as well as avoid confusions or difficulties in the future.

ADVANTAGES OF FOUNDERS AGREEMENT

IMPROVES CLARITY: The agreement involves a detailed description of the nature of work and the relationship of the founder with the company that will avoid confusion.
GUARDS THE PARTIES: The parties express their will, rights, and duties in an agreement which reduces the scope of disputes between the parties in the future.
PROOF: It acts as evidence that expresses the duties and rights which the parties have agreed on.
SCOPE OF CONFIDENTIALITY: Agreement involves clauses that state the compliance with any confidentiality that the parties may prescribe in their contract.
INTELLECTUAL PROPERTY RIGHTS: The ownership rights and usage rights of a trademark or trade name will be clearly distinguished in the founders’ agreement that will establish the rights of parties very clear.

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Name and details of the parties.
Date of the agreement.
Key responsibilities.
Transfer of ownership.
Ownership structure.
Terms of management.
Terms of liability sharing.
Terms pertaining to death or departure of the founder.
Confidentiality.
Decision-making and dispute resolution.
Representations and warranties.
Choice of law.
Signature of parties.

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FAQs

What is a founderâ€™s agreement?

It is an agreement made between the founders of a company describing their rights and responsibility towards the company during their live relationship with the company.