Founder Equity Agreement Template for Singapore

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Key Requirements PROMPT example:

Founder Equity Agreement

"Need a Founder Equity Agreement for my Singapore-based fintech startup with three co-founders, including a 4-year vesting schedule and specific provisions for IP rights as we're bringing existing software patents into the company, to be effective from March 2025."

Document background
The Founder Equity Agreement is essential when establishing a new company in Singapore or formalizing the relationship between existing founders. This document becomes particularly crucial during company formation, restructuring, or when bringing in new founding members. It details crucial aspects such as equity distribution, vesting schedules, and founder obligations while ensuring compliance with Singapore's regulatory framework. The agreement helps prevent future disputes by clearly documenting founding members' rights and responsibilities, making it a fundamental document for startups and new businesses.
Suggested Sections

1. Parties: Identification of all founding members and the company

2. Background: Context of the agreement and company formation

3. Definitions: Key terms used throughout the agreement

4. Share Allocation: Initial distribution of shares among founders

5. Vesting Provisions: Terms of share vesting schedule and conditions

6. Transfer Restrictions: Limitations on share transfers and right of first refusal

7. Founders' Commitments: Obligations and responsibilities of founders

8. Termination: Circumstances and process for agreement termination

Optional Sections

1. Intellectual Property Rights: Assignment of IP rights to company when founders are contributing existing IP

2. Non-Compete Provisions: Restrictions on competitive activities when protecting company interests from founder competition

3. Drag-Along Rights: Forced sale provisions when planning for future sale scenarios

4. Tag-Along Rights: Right to join in sale of shares when protecting minority founders

Suggested Schedules

1. Share Capital Table: Detailed breakdown of share ownership

2. Vesting Schedule: Detailed timeline of share vesting

3. Business Plan: Company's initial business plan and objectives

4. IP Schedule: List of intellectual property being contributed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Industries

Companies Act (Cap. 50): Primary legislation governing company formation, share issuance, shareholders' rights, share capital structure, transfer of shares, and directors' duties and responsibilities in Singapore

Securities and Futures Act (Cap. 289): Regulates securities offerings, trading, and contains provisions about disclosure requirements. Essential for future fundraising considerations and public offerings

Income Tax Act (Cap. 134): Addresses tax implications of equity distribution, treatment of shares as income, and relevant tax incentives or exemptions for founders and companies

Employment Act (Cap. 91): Relevant when founders are also employees, covering employment rights, obligations, and stock option considerations

Personal Data Protection Act 2012: Governs the handling of personal information, consent requirements, and data protection obligations for all parties involved

Competition Act (Cap. 50B): Addresses non-compete provisions and market restriction considerations in founder agreements

ACRA Regulations: Accounting and Corporate Regulatory Authority regulations governing corporate compliance and reporting requirements

MAS Guidelines: Monetary Authority of Singapore guidelines relevant to corporate governance and financial matters

Singapore Code of Corporate Governance: Provides principles and guidelines for corporate governance best practices in Singapore companies

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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