Founder Vesting Agreement

 


The "Pre-Nup" for Co-Founders.

Download the 2026 Founder Vesting Agreement.

Prevent Dead Equity. Protect Your Cap Table. Venture-Standard.

What happens if your co-founder quits next month?

Without a Vesting Agreement, they walk away with 50% of your company.

They own half of your hard work forever, even though they aren't doing anything. This is called "Dead Equity," and it makes your startup "un-investable" to Venture Capitalists. No investor will give you money if half the cap table is owned by someone who quit in month two.

You need "Golden Handcuffs."

The Legal Attorney Founder Vesting Agreement applies the Silicon Valley standard "4-Year Vesting with 1-Year Cliff" to your founder shares.

How It Works (The 4-Year / 1-Year Cliff):

  1. Year 0-1 (The Cliff): If a founder leaves before 12 months, they vest 0%. The company buys back all their shares for pennies.

  2. Year 1: On the 1-year anniversary, 25% of their shares vest instantly.

  3. Years 2-4: The remaining shares vest monthly (1/48th per month).

  4. Result: Founders must earn their equity through time and commitment.

What You Get Inside the Kit:

1. The Master Vesting Agreement (Word)
A fully editable, professional legal contract updated for 2026.

  1. Double Trigger Acceleration: This is a crucial protection for you. If the company is acquired AND you are fired by the new owners, your stock vests immediately.

  2. "Cause" Definitions: Clearly defines what counts as "Cause" (fraud, theft) vs. "Bad Performance." This prevents the Board from firing you unfairly just to steal your stock.

  3. Repurchase Option: Gives the company the legal right to buy back unvested shares at the original price (usually $0.00001).

2. The Stock Power (Exhibit A)
The "Enforcement" document.

  1. This is a specialized legal form signed by the founder and held in escrow.

  2. It allows the company to transfer the unvested shares back to the corporate treasury automatically if a founder leaves, without needing to sue them or ask for a signature later.

3. The Spousal Consent (Exhibit B)
Mandatory for founders in states like California and Texas. It prevents a messy divorce from tying up your company's equity or blocking a vesting repurchase.

4. The Execution Guide (PDF)
A step-by-step manual that explains how to set the "Vesting Commencement Date" (including how to get credit for time you already worked) and how to handle the critical 83(b) tax election.

Why Founders Need This Specific Template:

  1. It is Investor-Grade
    VCs will force you to sign this eventually. If you sign it now (on your own terms), you show them you are a professional operation. If you wait for them to draft it, they might give you worse terms.

  2. It Saves Friendships
    Breaking up with a co-founder is hard. It is much easier when the rules are written down in black and white from Day 1. There is no arguing about "how much stock they deserve"—the math is in the contract.

  3. It Protects You from Taxes
    Our template is structured to work perfectly with the IRS Section 83(b) election, potentially saving you millions in future income taxes.

Lock in Your Team’s Commitment.

Today's Price: $99 | Save over 30% off the $145 retail price.
(One-time payment. Instant Download. Fully Editable.)

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Frequently Asked Questions

1. I already formed my company. Is it too late?
No. You can sign this agreement after incorporation. It is called "imposing vesting." However, you should do it as soon as possible before the company's value goes up to avoid tax complications.

2. Can I give myself credit for past work?
Yes. In Section 2.2 of our template, you can set the "Vesting Commencement Date" to a date in the past (e.g., 6 months ago). This means you might already be 10% vested the day you sign.

3. Does this work for Advisors too?
Yes. This same agreement can be used for key advisors or early employees to ensure they deliver value before they own their full equity stake.

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