Founders Agreement Contract Generator

Founder's Agreement Contract for GenAI Client Details: Company Name: GenAI Industry: Technology and Education Founders: John Smith, Jane Doe, and Tom Lee Roles: John Smith (CEO and handles all business operations) Jane Doe (responsible for product development) Tom Lee (oversees finances) Founder's Agreement Contract Requirements Purpose of the agreement: The purpose of this agreement is to outline the roles, responsibilities, ownership, and expectations of each founder to ensure the successful operation of GenAI. Roles and responsibilities: John Smith shall be responsible for all business operations Jane Doe shall be responsible for product development Tom Lee shall oversee finances. Ownership and equity distribution: John Smith shall hold 50% of the company's equity Jane Doe shall hold 30% of the company's equity Tom Lee shall hold 20% of the company's equity Intellectual property: All intellectual property created by the Founders for the Company shall be owned by GenAI. Any intellectual property created by individual Founders prior to joining the Company shall remain their property. Decision-making: Decisions requiring the approval of the Founders shall require a majority vote, with each Founder having an equal vote. Conflict resolution: In the event of any conflicts or disputes among the Founders, mediation shall be sought before legal action is taken. If mediation is unsuccessful, disputes shall be resolved through arbitration. Vesting schedule: Each Founder's equity shall vest over a period of [Number] years, with [Percentage] of their equity vesting each year. Founder departure and termination: If a Founder voluntarily departs from the Company, they shall be required to sell their equity back to the Company at its current valuation. If a Founder is terminated for cause, their equity shall be forfeited. If a Founder is terminated without cause, they shall be entitled to retain their vested equity. Non-compete and confidentiality: Founders shall be subject to a non-compete clause for [Number] years after departing from the Company. Founders shall also be required to sign a confidentiality agreement to protect the Company's interests. Governing law and jurisdiction: This agreement shall be governed by the laws of USA and any legal disputes shall be resolved in the courts of Dallas, Texas. Drafting a founder's agreement contract for a startup like GenAI can provide many benefits. It can outline the roles, responsibilities, and ownership of each founder, establish a decision-making process, and provide conflict resolution methods. It can also ensure the protection of intellectual property, set vesting schedules for equity, and establish terms and conditions for founder departure and termination. Finally, it can establish non-compete and confidentiality clauses and specify the governing law and jurisdiction for the agreement. As a legal expert, I highly recommend startups to invest in drafting a founder's agreement contract. Contact me for a customized contract text and any necessary instructions for execution and implementation.