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Apart from the name of the founders and the enterprise, it is advisable to define the potential of the business venture with utmost clarity. This should be done by way of clearly laid out terms defining the vision, goals and proposed milestones of the business.
This clause (or clauses) should state the initial investment made by each founder, as well as any additional capital contributions that may be needed in the future from the founders for expansion and operational needs.
Ownership clause deals with equity held by each founder, either by percentage, or the number of shares held. The contribution provided and the role played by each co-founder helps determine his share in equity.
The agreement should also specify the amount compensation provided to and/or salary drawn by each co-founder, as well as the manner of reimbursement of expenses.
This is an essential clause with respect to the possibility of winding-up and liquidation of the enterprise. The manner of distribution of money and other resources amongst the founders in the event of liquidation must be provided.
A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Founders Agreement by you.
Once the objectives of the same are clear, the lawyer shall draft a sample Founders Agreement accordingly.
The draft Founders Agreement shall be sent to you, for your review.
A Founders’ Agreement is an official contract that is signed between all the co-founders of a firm. This document states all the responsibilities, ownership, and initial investments made by each of the founders of the company. It is advised to make a founders’ agreement at the incorporation stage of an enterprise as it will lay out the responsibilities and roles of each of the co-founders.
The purpose of the agreement is to make the understanding the co-founders have regarding the functioning of their company and relationship and obligation between co-founders legally binding through a formally written agreement
It provides for business definition, percentage or number of shares which is held by each co-founder, the extent of each founder responsibility, issue regarding the firing of any founder, a non-compete clause, confidentiality, etc.
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