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Co Founder Equity Agreement
"I need a Co-Founder Equity Agreement for a technology startup in Karachi with three founders: 40% equity for the technical founder with 3-year vesting, and 30% each for two business founders with 2-year vesting, including provisions for future investment rounds."
1. Parties: Identification of all co-founders and the company, including full legal names, addresses, and registration details
2. Background: Context of the agreement, including company formation status and purpose of the arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Equity Allocation: Details of initial equity distribution among co-founders, including number of shares and percentage ownership
5. Vesting Schedule: Terms of equity vesting, including vesting period, cliff period, and vesting conditions
6. Roles and Responsibilities: Detailed description of each co-founder's role, duties, and commitments to the company
7. Time Commitment: Expected time dedication from each co-founder and any limitations on outside activities
8. Decision Making: Process for major business decisions and voting rights
9. Intellectual Property: Assignment of IP rights to the company and protection of company intellectual property
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Transfer Restrictions: Limitations on transfer of shares and right of first refusal provisions
12. Termination: Circumstances and process for termination of co-founder relationship
13. Dispute Resolution: Process for resolving disputes between co-founders
14. Governing Law: Specification of Pakistani law as governing law and jurisdiction
1. Non-Compete: Restrictions on competitive activities, recommended when co-founders have industry connections
2. Tag-Along Rights: Rights of minority shareholders to join in sale of shares, important for unequal equity splits
3. Drag-Along Rights: Rights to force minority shareholders to join in sale, useful for future exit possibilities
4. Death and Incapacity: Procedures in case of co-founder death or incapacity, important for older founders or high-risk ventures
5. External Investment: Provisions for future investment rounds and equity dilution, crucial for startups seeking funding
6. Founder Loans: Terms for any initial capital contributions as loans, useful when founders provide initial funding
7. Compliance with Religious Law: Additional provisions for Shariah compliance if required by the parties
1. Schedule A - Share Capital Structure: Detailed breakdown of share classes, numbers, and ownership percentages
2. Schedule B - Vesting Schedule Details: Detailed vesting timeline and milestones for each co-founder
3. Schedule C - Intellectual Property Register: List of existing IP being transferred to the company
4. Schedule D - Company Business Plan: Overview of company objectives and strategic plan
5. Schedule E - Initial Roles and Responsibilities: Detailed description of each founder's initial role and key performance indicators
6. Appendix 1 - Share Transfer Forms: Standard forms for share transfers under Pakistani law
7. Appendix 2 - Board Resolutions: Initial board resolutions approving the agreement and share issuance
Authors
Technology
E-commerce
Financial Services
Healthcare
Education Technology
Software Development
Manufacturing
Professional Services
Media and Entertainment
Retail
Biotechnology
Clean Energy
Telecommunications
Artificial Intelligence
Consulting
Legal
Executive Leadership
Corporate Governance
Board of Directors
Corporate Secretary Office
Compliance
Finance
Human Resources
Strategic Planning
Chief Executive Officer
Managing Director
Company Founder
Chief Technology Officer
Chief Financial Officer
Chief Operating Officer
Legal Counsel
Corporate Lawyer
Company Secretary
Business Development Director
Startup Founder
Entrepreneur
General Counsel
Board Member
Director
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