Founders’ Agreement: A Guide for Startups
This Founders’ Agreement template has been generated with the help of ChatGPT and is primarily meant to be used for educational purposes, to make sure founders discuss the right topics before drafting the actual agreement. To make sure you have a proper and legally valid agreement please consult a lawyer in the relevant jurisdiction.
This agreement outlines the key elements of a founders’ agreement, including formation, business purpose, contributions, ownership and vesting, roles and responsibilities, decision-making, dispute resolution, dissolution, intellectual property, governing law, and miscellaneous provisions. It serves as a starting point for founders to discuss and agree upon the terms of their partnership.
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Exhibit A – Contributions
Detail the contributions of each founder, including the form (cash, property, services) and amount.
Exhibit B – Ownership and Vesting
Detail the ownership percentages of each founder, represented in shares, and the vesting schedule.
Formation
Founders
The Founders of the Company are [Name of Founder 1], [Name of Founder 2], and [Name of Founder 3].
Date of Incorporation
The Company was incorporated on [Date of Incorporation] in the State of [State of Incorporation].
Legal Structure
The Company is a [Legal Structure] with its principal place of business at [Address].
Business Purpose
Purpose
The purpose of the company is to develop and operate an AI platform that generates videos from text prompts. The company will strive to provide users with a seamless and intuitive experience, enabling them to create high-quality videos with ease. The company will focus on delivering innovative features and functionalities, constantly evolving to meet the growing demands of the video creation market.
Target Market
The company's target market includes individuals and businesses seeking to create engaging and professional videos for various purposes, such as marketing, education, entertainment, and personal projects. The company will cater to a diverse range of users, from amateur video creators to professional agencies, by offering a user-friendly platform and a wide array of video generation options.
Contributions
Initial Contributions
Each Founder has contributed to AI VideoGenix as described in Exhibit A attached hereto. No interest will be paid on initial contributions unless specifically agreed upon in writing by all Founders.
Ownership and Vesting
Initial Ownership
Upon the execution of this Agreement, the Founders shall own the following percentage of the Company:
Vesting Schedule
The Founders' ownership interests in the Company shall vest over a period of four (4) years, subject to the following vesting schedule:
Forfeiture
In the event that a Founder ceases to be employed by the Company for any reason other than death or disability, such Founder's unvested ownership interest in the Company shall be forfeited.
Roles and Responsibilities

1

1. Eric L
Eric L will serve as the Chief Executive Officer (CEO) of the company. He will be responsible for the overall management and direction of the company. He will also be responsible for fundraising, strategic partnerships, and business development.

2

2. Mark B
Mark B will serve as the Chief Technology Officer (CTO) of the company. He will be responsible for the development and implementation of the company's technology. He will also be responsible for managing the company's technical team.

3

3. Anna C
Anna C will serve as the Chief Marketing Officer (CMO) of the company. She will be responsible for the development and execution of the company's marketing strategy. She will also be responsible for managing the company's marketing team.
Decision Making
Consensus
The Founders agree to strive for consensus in making decisions that affect the Company. However, if consensus cannot be reached, the decision will be made by a majority vote of the Founders, with each Founder having one vote.
Majority Vote
In the event that a decision cannot be reached by consensus, the decision will be made by a majority vote of the Founders. Each Founder will have one vote.
Formal Documentation
All major decisions affecting the Company will be documented in writing and signed by all Founders.
Dispute Resolution
Collaborative Approach
Founders will strive to resolve any disputes amicably through open communication and negotiation.
Formal Mediation
If amicable resolution is not possible, the Founders will engage in formal mediation with a mutually agreed-upon mediator.
Binding Arbitration
If mediation fails, any remaining disputes will be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.
Exhibit E – Dispute Resolution
  • Firing of a Founding Member: In case of performance issues, a unanimous decision by the other Founders is required to terminate a Founder’s association with the Company.
  • Roadmap Decisions: Unanimous decision required. In case of deadlock, a neutral third-party advisor will be consulted.