Once you form your startup management team, it’s time to create co-founder legal agreements to record your legal relationship to the corporation, to each other and to the venture’s other participants.
A founders’ restricted rights agreement details the relationship between each of the founders and the startup with respect to equity shares issued, how those shares vest and what happens to those shares should a founder leave voluntarily or be terminated, or in the event of their disability or death.
MaRS has created a sample template of a founders’ restricted rights agreement to help streamline business for investors, founders and their respective legal advisors. While MaRS makes this document available for educational purposes and to facilitate the negotiation of terms between investors and startups, the template is yours to use at your own risk. Please see the disclaimer below.
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