Define equity splits, roles, vesting, IP ownership, and deadlock resolution before you incorporate. I created this generator from founders agreements I've drafted for pre-seed and seed-stage startups in my practice.
A Founders Agreement is a pre-incorporation contract between co-founders that defines equity splits, roles and responsibilities, vesting schedules, intellectual property ownership, decision-making procedures, and what happens if a founder leaves. It's typically signed before or at the time of incorporation to protect all founders during the critical early stage when the company is most vulnerable to disputes.
Vesting: The standard 4-year vesting with 1-year cliff means no equity vests for the first year, then 25% vests at month 12, and the rest vests monthly over 36 months. Cliff: The period before any equity vests. Single-trigger acceleration: All equity vests immediately upon one event (typically an acquisition). Double-trigger: Requires both an acquisition AND termination. Good Leaver vs Bad Leaver: Good leavers (voluntary departure, death, disability) keep vested shares; bad leavers (cause, breach) may forfeit some or all equity.
A Founders Agreement covers the pre-incorporation relationship and early-stage dynamics: who does what, how equity splits, what happens in disputes. A Shareholder Agreement is the post-incorporation governance document covering share transfers, board composition, drag/tag-along rights, and investor protections. Often the Founders Agreement is superseded by or incorporated into the company's formal organizational documents after incorporation and initial fundraising.