Equity Split: Define how the equity will be divided among the founders. This should consider the value each founder brings to the table, including capital, skills, and prior experience.
Roles and Responsibilities: Clearly outline the roles and responsibilities of each founder to avoid overlaps and confusion.
Decision-Making Process: Establish how decisions will be made. This often includes voting rights and what constitutes a majority or unanimous decision.
Vesting Schedule: A vesting schedule ensures that founders earn their equity over time, which incentivizes them to remain committed to the company.
Intellectual Property (IP) Ownership: Define who owns the
intellectual property created by the founders and how it will be managed.
Conflict Resolution: Outline mechanisms for resolving disputes, such as mediation or arbitration.
Exit Strategy: Detail the conditions under which a founder can leave the company and what happens to their equity.
Confidentiality and Non-Compete Clauses: Include clauses to protect the company's sensitive information and prevent founders from starting competing businesses.