Founders Agreement: Pre-incorporation Startup Agreement (Extensive)
A Founders’ Agreement is a contract that a company’s founders enter into that governs their business relationships. The Agreement lays out the rights, responsibilities, liabilities, and obligations of each founder. Generally speaking, it regulates matters that may not be covered by the company’s operating agreement.
Ultimately, Founders’ Agreements are designed to protect each founder’s interests and memorialize that all founders are in agreement about the venture’s basic structure and how the founders will work together to move their business forward. Forging an agreement between all founders helps mitigate the risk of a lawsuit over who owns the business. There is a wide range of provisions that could be addressed in a Founders’ Agreement.
The template below includes provisions about:
*Transfer of ownership;
*Decision-making and dispute resolution;
*Representations and warranties; and
*Choice of legal authority... and more!
A Joint Venture Agreement is a contract used to set up a business arrangement between two or more parties who agree to combine resources for a limited time to accomplish a particular project or goal.
Joint ventures are a way to enter markets through the partnering of commercial resources. Within joint ventures, equity positions are usually taken by the participants. Such holdings can vary substantially in size, although it is usually important to establish clear lines of management decision-making control in order to achieve success. A lesser form of participation, which may or may not involve equity participation, involves strategic alliances.
A Partnership Agreement is an agreement between you and your partner(s) that sets out the duties and obligations of the partners to each other and to the partnership. It establishes the rights and responsibilities of general partners, and the rules of a for-profit partnership. As a general rule of thumbs, once operations are more established, a shareholder agreement will better dictate the terms of the relationship going forward.