I will prepare a custom founder equity distribution agreement for startups
Bulletproof Startup Contracts Equity Structuring Specialist
About this Gig
How and when equity is distributed is just as important as the amount. An improperly distributed equity pool can lead to "dead equity" (shares held by people no longer working on the startup).
I will draft a professional Founder Equity Distribution Agreement that clearly defines the mechanics of how equity is granted. Whether your distribution is time-based or milestone-based, I will ensure the contract protects the active contributors of your startup.
This agreement typically covers:
- Equity Distribution Mechanics (How shares are actually issued)
- Milestone-based vesting (Equity earned upon hitting specific KPIs)
- Time-based vesting with cliff periods
- Single/Double Trigger Acceleration (What happens to equity if the company is acquired)
- Repurchase rights for unvested shares
Investors want to see that equity distribution is tied to ongoing performance and commitment. Give themand yourselfpeace of mind with a meticulously drafted contract. Review the packages and place your order today for immediate drafting. (992 characters)
Field of law:
Civil rights
Target country:
United States
Legal consulting Gigs are not screened
Please note that there is no screening process for this service. We recommend that you message the freelancer and check all necessary details before placing your order. Pro freelancers in this category have gone through a vetting process. You can find more details here.
FAQ
What is milestone-based vesting?
Instead of earning equity just by staying with the company for a certain time, founders earn equity by hitting specific business goals (e.g., launching an app).
What is acceleration in an equity agreement?
Acceleration clauses dictate that if your startup is acquired, unvested equity immediately becomes vested, rewarding founders for a successful exit.
How does the company repurchase unvested shares?
If a founder leaves early, the agreement includes a clause allowing the company to buy back the unearned shares, usually at a nominal price.
Is this document legally binding?
Yes, once signed by all parties, it serves as a legally binding contract governing the distribution of equity.
Can I use this for both LLCs and Corporations?
Yes, the terminology will be adjusted depending on whether you are distributing LLC membership interests or Corporate shares.
