A share allocation agreement is a document that outlines the allocation of shares among the founders of a company. This agreement sets out the percentage of shares that each founder is entitled to, as well as the terms and conditions of the allocation. A share allocation agreement is an important document as it helps to establish the ownership structure of a company and can help to prevent disputes among founders.

As a professional, I have put together a sample share allocation agreement that can be used as a guide when drafting your own agreement.

Sample share allocation agreement:

PARTIES:

[Name of Company] (the “Company”)

[Name of Founder 1] (the “Founder”)

[Name of Founder 2] (the “Founder”)

[Name of Founder 3] (the “Founder”)

RECITALS:

The Founders have agreed to form the Company for the purpose of carrying on the business of [insert business purpose].

The Founders each agree to contribute to the Company’s initial capital as set forth herein.

The Founders have agreed that ownership of the Company shall be divided among them in accordance with the terms of this Agreement.

AGREEMENT:

1. Ownership of the Company

The Founders agree that ownership of the Company shall be divided as follows:

Founder 1: [insert percentage]

Founder 2: [insert percentage]

Founder 3: [insert percentage]

2. Capital Contributions

Each Founder agrees to contribute the following amount to the Company’s initial capital:

Founder 1: [insert amount]

Founder 2: [insert amount]

Founder 3: [insert amount]

3. Vesting

The shares allocated to the Founders shall vest over a period of [insert number] years in equal installments on a monthly basis.

4. Transfer Restrictions

No Founder shall transfer any of their shares in the Company without the prior written consent of the other Founders.

5. Buyout Option

In the event that one Founder wishes to sell their shares in the Company, the other Founders shall have the option to purchase those shares at fair market value.

6. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [insert governing law].

IN WITNESS WHEREOF, the undersigned have executed this Share Allocation Agreement as of the date first above written.

[Name of Founder 1]

[Name of Founder 2]

[Name of Founder 3]

[Name of Company]

In conclusion, a share allocation agreement is a critical document that helps to establish the ownership structure of a company and can prevent disputes among founders. This sample agreement can serve as a guide when drafting your own agreement, but it is important to consult with an attorney to ensure that it meets all legal requirements and is tailored to your specific circumstances.