Corporate Lawyer Ontario: Negotiating a Founders Agreement

As an entrepreneur, entering into a business venture with co-founders can be both exciting and challenging. It is crucial to have a founders agreement in place to outline each party’s responsibilities, ownership, decision-making authority, and more. Negotiating a founders agreement can be a complex process, but with the help of a corporate lawyer, you can ensure that your interests and those of your co-founders are protected. Here are ten tips to keep in mind when negotiating a founders agreement:

  1. Clearly define the roles and responsibilities of each founder.
  2. Determine how much equity each founder will receive and under what conditions.
  3. Establish the vesting schedule for equity.
  4. Decide how decisions will be made and how tiebreakers will be resolved.
  5. Determine what happens if one of the founders wants to leave the company.
  6. Establish how the company’s profits and losses will be distributed.
  7. Consider including a non-compete clause to protect the company’s interests.
  8. Address intellectual property ownership and protection.
  9. Establish a process for resolving disputes among the founders.
  10. Make sure the agreement is legally binding and enforceable.

A corporate lawyer can help you negotiate these terms and ensure that your founders agreement is comprehensive and tailored to your business needs. With a properly executed founders agreement in place, you can minimize the risk of future conflicts and protect your business’s success.

If you need help negotiating a founders agreement or have any other corporate legal needs, please contact Falcon Law PC at 1-877-892-7778 or info@falconlawyers.ca. Our experienced corporate lawyers can provide you with personalized advice and solutions to help you achieve your business goals.

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