What happens if a co-founder leaves the company and how can a co-founders’ agreement help?

Without an agreement, a co-founder’s departure can lead to messy disputes over equity, valuation, and intellectual property. A Co-Founders’ Agreement proactively outlines clear exit clauses, such as: the terms on which co-founder can be terminated or resign, how vested and unvested shares are handled, buy-back options for vested shares, valuation methods, and the handling of IP, ensuring a smoother transition and protecting the remaining founders’ interests.

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