What is an annexation contract of co-founder or employee with equity?

An annexation contract of co-founder or employee with equity is a document by which a person joins a startup as a founding partner or determines how an employee with equity will receive shares or shares of it as part of their salary.

Its objective is to encourage and commit the person who joins the team to the project, by letting them participate in the benefits and growth of the startup.

When to use this annexation contract of co-founder or employee with equity?

This contract is usually used when the startup is in a very early phase, where it does not have enough liquidity to offer competitive salaries, but needs to incorporate talent or services that add value to the project.

It can also be used when the startup wants to recognize the effort or risk of someone who has joined the team at an uncertain stage or who has given up on other, more secure job opportunities.

When not to use this contract?

If what you are looking for is a model of an agreement between the partners of a company, already constituted or in project, that regulates the relations between them and with the company, as well as the rights and obligations they have as partners, at LexDoka we have the Partnership Agreement.

Essential content

• Identification of the parties.
• The percentage of participation over the total project.
• Vesting clause.
• Confidentiality clauses.

Optional content

• Exclusivity clause
• Annex where the MVP (minimum viable product) is described

Applicable law

• Commercial Code
• Civil Code
• Workers’ Statute
• Principle of autonomy of will

Related concepts

• Shareholders agreement
• Startup
• Co-founder
• Employee with equity

How much does it cost to make this contract with LexDoka?

LexDoka has an automated contractual model that allows you to create this contract, negotiate it and sign it, minimizing the time invested in the entire process. This automated model is free within all LexDoka subscription plans. If you want to try it, you can register for free to generate your first contract.