A Founder Equity Agreement is a contract between the founders of a business that outlines the rights and responsibilities associated with each founder’s equity in the company. This agreement typically covers topics such as how much equity each founder will receive, vesting schedules for the equity, restrictions on transferring shares, rules for voting and decision-making, and other important details about the company’s operations. By detailing the expectations and rules among the founders, a Founder Equity Agreement can help ensure a smooth transition should any founder leave or if the company is sold. It is an important document for any startup and should be completed before the business launches.