The Co-Founder Exit Agreement is a critical legal instrument used when a founding member decides to leave or is required to separate from a company. This document, structured according to United States federal and state legal requirements, serves as a comprehensive framework for managing the complex process of a co-founder's departure. It becomes necessary when there's a need to formalize the separation terms, handle equity transfers, protect intellectual property rights, and establish post-exit obligations. The agreement typically includes detailed provisions for share valuation and transfer, confidentiality requirements, non-compete restrictions, and release of claims. It's particularly important in protecting both the departing co-founder's rights and the company's interests, while ensuring a smooth transition of responsibilities and maintaining business continuity. The document must comply with various U.S. regulations, including securities laws, corporate statutes, and state-specific requirements regarding non-compete provisions and equity transfers.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identifies the departing co-founder, remaining co-founders, and the company
2. Background: Outlines the history of the company, the co-founder's role, and reasons for separation
3. Definitions: Defines key terms used throughout the agreement
4. Resignation and Effective Date: Specifies the co-founder's resignation from all positions and the effective date
5. Purchase of Shares: Details the transfer or buyout of the departing co-founder's equity
6. Purchase Price and Payment Terms: Specifies the consideration and payment structure for the equity buyout
7. Representations and Warranties: Statements of fact from both parties about their authority, ownership, and other key matters
8. Confidentiality Obligations: Ongoing duties regarding company confidential information
9. Intellectual Property Rights: Assignment and confirmation of IP rights to the company
10. Non-Compete and Non-Solicitation: Restrictions on future competitive activities and employee/customer solicitation
11. Release of Claims: Mutual release of claims between parties
12. Continuing Obligations: Any ongoing duties or responsibilities of the departing co-founder
13. Governing Law and Jurisdiction: Specifies the applicable law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Transition Services: Details any temporary services the departing founder will provide during transition period
2. Ongoing Projects: Addresses handling of specific projects that were under the departing founder's management
3. Benefits Continuation: Details about post-separation benefits or COBRA rights if applicable
4. Future Cooperation: Obligations to assist in future matters like litigation or intellectual property protection
5. Earn-Out Provisions: Structure for additional payments based on future company performance
6. Board Observer Rights: Any continuing rights to observe board meetings or receive information
7. Tax Matters: Specific tax-related provisions if complex tax implications exist
8. Public Announcements: Controls over public statements regarding the separation
9. Insurance and Indemnification: Continued D&O insurance coverage and indemnification rights
10. Return of Company Property: Detailed provisions for returning company assets and verification process
1. Schedule A - Share Ownership Details: Complete breakdown of shares owned and to be transferred
2. Schedule B - Payment Schedule: Detailed payment terms and dates for the share purchase
3. Schedule C - Company IP Register: List of IP rights being confirmed as company property
4. Schedule D - Company Property: Inventory of physical and digital assets to be returned
5. Schedule E - Ongoing Projects: List of projects requiring transition or handover
6. Schedule F - Resignation Letters: Form of resignation letters from various positions
7. Appendix 1 - Release Form: Detailed form of mutual release
8. Appendix 2 - Confidentiality Agreement: Detailed confidentiality terms and requirements
9. Appendix 3 - Non-Compete Terms: Specific terms and geographical scope of non-compete provisions
Find the exact document you need
Business Buy Out Agreement
A U.S.-governed agreement that establishes terms for the purchase and sale of a business or business interests.
Download
Buyout Agreement For House
A U.S.-governed legal agreement facilitating the transfer of property ownership between co-owners through a buyout process, conforming to federal and state property laws.
Download
Real Estate Buy Out Agreement
A U.S.-governed agreement facilitating the purchase and transfer of real property interests between parties.
Download
Llc Buyout Agreement
A U.S.-governed agreement facilitating the purchase and sale of LLC membership interests, outlining terms, conditions, and obligations of the buyout transaction.
Download
Partner Buyout Agreement
A U.S.-governed legal agreement that documents the terms and conditions for one partner's exit from a business through the sale of their ownership interest to remaining partners.
Download
Business Buyout Agreement
A U.S.-governed agreement outlining terms and conditions for the purchase and sale of a business, including purchase price, transferred assets/shares, and post-closing obligations.
Download
Co Founder Exit Agreement
A U.S.-governed agreement that formalizes a co-founder's exit from a company, including equity transfers, obligations, and separation terms.
Download
Equity Buyout Agreement
A U.S.-governed agreement documenting the purchase and sale of equity interests in a business entity, including terms, conditions, and obligations of all parties.
Download
łŇ±đ˛Ôľ±±đ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; łŇ±đ˛Ôľ±±đ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it