The Startup Founder Agreement is essential when two or more individuals come together to establish a startup in Singapore. This foundational document is crucial in the early stages of company formation, typically used before or during company incorporation. It addresses key aspects such as equity distribution, vesting schedules, roles and responsibilities, decision-making processes, and intellectual property rights. The agreement is particularly important in the Singapore startup ecosystem, where clear governance structures and compliance with local regulations are essential. It helps prevent future disputes by establishing clear guidelines and expectations among founders from the outset.
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1. Parties: Identification and details of all founding members
2. Background: Context of the startup formation and founders' relationship
3. Definitions: Key terms used throughout the agreement
4. Roles and Responsibilities: Detailed description of each founder's duties and commitments
5. Equity Distribution: Initial shareholding structure and vesting schedules
6. Decision Making: Voting rights and major decision procedures
7. Intellectual Property: Assignment and ownership of IP rights
8. Confidentiality: Protection of company and founder confidential information
9. Exit Provisions: Procedures for founder departure or company sale
1. Employment Terms: Terms of founders' employment if also serving as employees - use when founders are also employees of the company
2. Non-Compete: Restrictions on competitive activities - use when protecting against founder competition is crucial
3. Capital Contribution: Details of initial and future capital investments - use when founders are making initial capital contributions
4. Dispute Resolution: Specific procedures for resolving conflicts - use when standard dispute resolution mechanisms need modification
1. Schedule 1: Share Vesting Schedule: Detailed breakdown of share vesting timelines and conditions
2. Schedule 2: IP Schedule: List of existing IP brought into the company by founders
3. Schedule 3: Business Plan: Initial business plan and milestones
4. Schedule 4: Capitalization Table: Detailed breakdown of shareholding structure
5. Appendix A: Form of Deed of Adherence: Template for new founders or shareholders to join
6. Appendix B: Key Performance Indicators: Metrics for evaluating founder performance
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