A founder's agreement is a formal document that outlines the roles, responsibilities, rights, and obligations of each founder in a startup. It is designed to address potential issues that could arise among the founders and to ensure that everyone is on the same page regarding the operation and future of the company.

Here are the key components typically included in a founder's agreement:

• Equity Split: Specifies how much ownership each founder has in the company.
• Roles and Responsibilities: Details the specific roles and responsibilities of each founder.
• Decision-Making Process: Defines how decisions will be made within the company, including voting rights and procedures.
• Intellectual Property (IP) Assignment: Ensures that any IP created by the founders is owned by the company.
• Vesting Schedule: Sets a vesting period for equity to ensure that founders earn their shares over time, incentivizing long-term commitment.
• Salaries and Compensation: Details any salaries, benefits, or other compensation the founders will receive.
• Exit Strategy: Outlines the process for handling the departure of a founder, whether voluntarily or involuntarily.
• Confidentiality and Non-Compete Clauses: Protects the company's sensitive information and prevents founders from starting competing businesses.
• Dispute Resolution: Establishes a method for resolving conflicts among founders, such as mediation or arbitration.
• Dissolution: Describes the procedure for dissolving the company if necessary.

A founder's agreement is crucial for preventing misunderstandings and conflicts, providing a clear framework for the operation and growth of the startup, and ensuring the interests of all founders are protected.

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