Free Startup Equity Agreement Template
Startup Equity Agreement
This Startup Equity Agreement ("Agreement") is made effective as of [Month Day, Year] ("Effective Date"), by and between [Your Company Name], a [Your Company's Country of Incorporation] corporation with its principal place of business located at [Your Company Address] ("Company"), and [Your Name], residing at [Your Address] ("Recipient").
WHEREAS, the Company desires to grant equity to the Recipient in exchange for valuable contributions to the Company's growth and success;
WHEREAS, the Recipient agrees to accept such equity under the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:
Section 1: Grant of Equity
1.1 Type of Equity. The Company hereby grants to the Recipient [number of shares] shares of [type of equity, e.g., Common Stock], subject to the terms and conditions set forth in this Agreement and the Company’s [Stock Plan/Equity Incentive Plan] ("Plan").
1.2 Vesting Schedule. The granted equity shall vest over a period of [vesting period] years, with [specify any initial cliff period] months cliff, after which equity will vest monthly/quarterly/annually.
Section 2: Rights and Obligations
2.1 Voting Rights. The Recipient shall have voting rights in accordance with the number of shares held.
2.2 Dividends. The Recipient shall be entitled to receive dividends on the vested shares, if and when declared by the Company's Board of Directors.
Section 3: Restrictions
3.1 Transfer Restrictions. The shares may not be sold, transferred, pledged, or otherwise disposed of except in accordance with the terms of this Agreement and the Plan.
3.2 Right of First Refusal. Upon any proposed transfer of shares, the Company shall have a Right of First Refusal to purchase the shares on the terms of the proposed transfer.
Section 4: Termination
4.1 Termination for Cause. Upon termination of Recipient's service to the Company for cause, all unvested shares shall immediately forfeit.
4.2 Voluntary or Involuntary Termination. Upon voluntary or involuntary termination of Recipient's service, the vesting of shares shall cease, and only shares vested as of the date of termination shall remain with the Recipient.
Section 5: Confidentiality
5.1 Confidential Information. The Recipient agrees not to disclose or use for personal gain any confidential information obtained during the term of this Agreement, except with prior written consent from the Company.
Section 6: Dispute Resolution
6.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of [Governing Law Country/State].
6.2 Arbitration. Any disputes arising under this Agreement shall be resolved through binding arbitration in accordance with the rules of [Arbitration Association].
Section 7: General Provisions
7.1 Entire Agreement. This Agreement, together with the Plan, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements and understandings, both written and oral.
7.2 Amendment. This Agreement may only be amended or modified by a written document executed by both parties.
7.3 Notices. Any notices required or permitted by this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent by email or registered mail to the addresses specified herein.
7.4 Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
[Your Company Name]
By:
[Your Signature]
Name: [Your Name]
Title: [Your Job Title]
Date: [Month Day, Year]
Recipient:
By:
[Signature]
Name: [Recipient's Name]
Title: [Recipient's Job Title, if applicable]
Date: [Month Day, Year]
