Free Founders Agreement

This Founders Agreement ("Agreement") is entered into on [Date] by and between [YOUR NAME] ("Founder 1") and [FOUNDER 2'S NAME] ("Founder 2"), collectively referred to as the "Founders."

1. Purpose

The main aim this Agreement aims to achieve is to lay down and define a clear set of rules and regulations. These pre-established terms and conditions would play a crucial role in governing and guiding the interactions and relationship between the Founders themselves, and also between the Founders and [YOUR COMPANY NAME], henceforth referred to as ("the Company"). Apart from the aforementioned, the Agreement also seeks to dictate the modus operandi of the Company.

2. Ownership Percentages

The Founders of the Company shall hold the following proportion or percentages of ownership in them:

• Founder 1: 50% ownership

• Founder 2: 50% ownership

3. Roles and Responsibilities

The Founders have delineated their respective roles and responsibilities within the Company as follows:

• Founder 1:

Founder 1 shall primarily oversee the technical development and innovation initiatives of the Company. Their responsibilities include:

• Leading the research and development efforts to enhance product functionality and features.

• Directing the technical team in the design, implementation, and maintenance of software solutions.

• Collaborating with external partners, vendors, and stakeholders to integrate cutting-edge technologies.

• Ensuring adherence to coding standards, quality assurance protocols, and cybersecurity measures.

• Providing strategic guidance on technological advancements and their alignment with business objectives.

• Founder 2:

Founder 2 shall focus on the operational and business development aspects of the Company. Their responsibilities include:

• Developing and executing the Company's business strategy, including market analysis, competitive positioning, and revenue generation.

• Managing day-to-day operations, including human resources, finance, and administrative functions.

• Cultivating relationships with clients, investors, and strategic partners to drive growth opportunities.

• Overseeing marketing and sales initiatives to expand the Company's customer base and market presence.

• Monitoring key performance indicators and financial metrics to assess operational efficiency and profitability.

4. Decision-Making Process

Decisions of major consequence that have a significant impact on the Company will be arrived at collectively by the parties who established the Company, known as the Founders. In circumstances where there is a standoff or if the Founders are unable to reach a consensus on such decisions, a system has been put in place to rectify the situation. This system of resolving disagreements or conflicts is detailed comprehensively in this document and should be adhered to to resolve.

5. Vesting Schedule

The ownership interests of the Founders in the Company shall vest according to the following schedule:

• Founder 1:

• 25% of Founder 1's ownership interest shall vest upon execution of this Agreement.

• The remaining 75% of Founder 1's ownership interest shall vest in equal monthly installments over 3 years, commencing on the date of execution of this Agreement.

• Founder 2:

• 50% of Founder 2's ownership interest shall vest upon execution of this Agreement.

• The remaining 50% of Founder 2's ownership interest shall vest in equal quarterly installments over 4 years, commencing on the date of execution of this Agreement.

6. Intellectual Property Ownership

The Company will maintain joint ownership of all intellectual property. This collective coverage extends to intellectual property that the Founders have created, developed, or contributed to in their dealings associated with the Company.

7. Dispute Resolution

If any disagreements or conflicts arise under the terms and conditions of this Agreement, the parties involved pledge to attempt to resolve these disputes through the process of negotiation, operating in good faith. If it becomes clear that the dispute in question cannot be settled through the process of negotiation alone, the disagreement shall then be further escalated. In this case, it will be submitted for mediation according to the rules and regulations outlined by the American Arbitration Association.

8. Confidentiality

The individuals who have founded the Company have agreed and are in full accord that they will uphold and maintain the confidentiality of all proprietary and confidential information that relates to the Company. This commitment and protected confidentiality applies not only to the duration of this Agreement but will continue to apply and be in effect even after the term of this Agreement has concluded.

9. Non-Compete

During the active duration of this agreement, as well as for a subsequent period of three (3) years after the agreement has ended or been terminated, it is a requirement that the Founders must not participate, either directly or indirectly, in any business activities that would present as competition to the existing operations of the Company.

10. Term and Termination

This Agreement will start and become effective on the established date it has been agreed upon. Following this commencement, it will carry on without termination unless there is a mutual agreement to terminate made by the Founders. Additionally, the Agreement can also be terminated if there are specific provisions or circumstances provided and clarified within this Agreement that allow for its termination.

11. Governing Law

The Agreement that is being made and documented among the involved parties shall be regulated and interpreted according to and in strict accordance with, the laws that are put in force within the designated [Jurisdiction].

12. Entire Agreement

This Agreement constitutes the entire agreement between the Founders concerning the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether oral or written.

IN WITNESS WHEREOF, the Founders have executed this Agreement as of the date first above written.

[YOUR NAME]

[DATE SIGNED]

[FOUNDER 2'S NAME]

[DATE SIGNED]

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