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.

The relationship between founders, the startup and equity shares

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.

Sample founders’restricted rights agreement template

Download (doc)

Disclaimer
This sample legal document has been made available by MaRS Discovery District for informational purposes only and does not constitute advertising, a solicitation, or legal advice. Neither the transmission of this sample legal document nor the transmission of any information contained in this website is intended to create, and receipt hereof or thereof does not constitute formation of, a lawyer-client relationship. Internet subscribers and online readers should not rely upon this sample legal document or the information contained in this website for any purpose without seeking legal advice from a qualified lawyer practicing in the reader’s province.

The information contained in this website is provided only as general information and may or may not reflect the most current legal developments; accordingly, information on this website is not promised or guaranteed to be correct or complete. MaRS Discovery District expressly disclaims all liability in respect to actions taken or not taken based on any or all the contents of this website.