Cofounder agreement template

# Cofounder agreement — [Company name]

Draft prepared on Cofounder for Startups (cofounderforstartup.com). This is a plain-language record of what the founders have agreed. It is not legal advice and is not a substitute for formal company documents — have a lawyer review it and prepare the agreements your company signs.

## 1. Parties
This agreement is between [Founder 1], [Founder 2] (each a "Founder") in relation to [Company name] (the "Company").

## 2. Roles and responsibilities
- **[Founder 1]** — CEO — product, fundraising, sales
- **[Founder 2]** — CTO — engineering and technical hiring

Each Founder owns the decisions in their area. Decisions outside a single area are made together.

## 3. Equity
| Founder | Ownership |
| --- | --- |
| [Founder 1] | 50% |
| [Founder 2] | 50% |

## 4. Vesting
Each Founder's shares vest over 4 years from [vesting start date], with a 12-month cliff: no shares vest before the cliff, the shares for the months served vest at the cliff, and the rest vest in equal monthly instalments. Unvested shares may be bought back by the Company at their original price if a Founder leaves. Acceleration on a sale of the Company: [none / double-trigger — agree and record here].

## 5. Time commitment and outside activities
- [Founder 1]: [full-time from DATE / part-time, X hours a week until EVENT]
- [Founder 2]: [full-time from DATE / part-time, X hours a week until EVENT]

Outside jobs, advisory roles or other ventures require the other Founders' written agreement: [list any agreed exceptions].

## 6. Intellectual property
Everything a Founder creates for the Company — code, designs, content, brand, domain names, inventions — belongs to the Company. Each Founder will sign an IP assignment to the Company, including work done before incorporation.

## 7. Decisions and deadlock
Major decisions require [unanimous / majority] agreement of the Founders: raising money, taking on debt, hiring or firing a Founder, selling the Company, and changing this agreement. If the Founders cannot agree: [e.g. CEO decides in their area / ask an agreed mentor to mediate].

## 8. Compensation
No Founder draws a salary until [EVENT, e.g. a funding round]. After that, salaries are set by [the Founders together / the board].

## 9. When a Founder leaves
- Vested shares stay with the departing Founder; unvested shares may be bought back by the Company.
- [Good leaver / bad leaver terms, if any.]
- The departing Founder hands over all Company accounts, files and IP, and keeps Company information confidential.

## 10. Confidentiality
Founders keep the Company's non-public information confidential during and after their involvement.

## 11. Disputes
Founders will first try to resolve disagreements in good faith, then by [mediation / arbitration] in [JURISDICTION].

## 12. Changes
This agreement can only be changed in writing, signed by all Founders.

## Signatures
[Founder 1] — signature: ____________________  date: ____________

[Founder 2] — signature: ____________________  date: ____________

General information, not legal advice. Placeholders in [brackets] need your decision.