Hackathon Equity Agreement

The AI-generated equity partnership agreement that resolved the startup co-founder dispute over equity allocation.

Equity Partnership Agreement

1. Preamble

Both Maya Chen and Carlos Rodriguez (hereinafter “the Founders”) share the goal of building a successful, technology-driven startup that combines cutting-edge technical innovation with strategic market positioning. Recognizing that each Founder brings essential and complementary skills—Maya with her deep technical contributions and risk-taking background, and Carlos with his market strategy and operational leadership—the Founders agree to an equity structure that aligns incentives, rewards contributions, and preserves effective joint decision-making.

2. Equity Allocation and Recognition of Contributions

2.1. Core Equity Share

• The Founders agree to an initial base equity split of 50% to each Founder in order to ensure equal partnership in decision-making and long-term strategic direction.

2.2. Performance-Based Technology Premium

• To acknowledge Maya’s significant technical contribution—including the development of the core optimization algorithm and the personal risk incurred by leaving a secure role—an additional equity tranche of up to 15% shall be reserved exclusively for technology performance.

• This performance-based premium will be allocated to Maya only upon the achievement of mutually agreed technical milestones and sustained full-time commitment as CTO.

• If and when these milestones are met, Maya’s effective total equity shall be adjusted to fall within the range of 60-65%, thereby balancing immediate technical contributions with long-term joint leadership.

3. Vesting and Milestone Conditions

• Both the base equity and the performance-based tranche shall be subject to standard vesting conditions over a three-year period to promote long-term commitment.

• Specific technical and operational performance milestones (to be defined in a separate schedule) will determine the vesting of the technology premium for Maya.

• The milestones will be measurable and include targets such as product performance metrics, technology scale-readiness, and successful integration into the product roadmap.

4. Roles and Responsibilities

• Maya Chen, as CTO, will lead the ongoing development, refinement, and scalability of the core technology foundation, ensuring high performance and innovation.

• Carlos Rodriguez, as CEO, will direct market strategy, secure partnerships, drive go-to-market initiatives, and manage overall operational leadership.

• Both Founders commit to collaborative decision-making and maintaining open channels of communication to ensure trust and shared accountability.

5. Decision-Making and Governance

• The Founders agree to maintain an equal decision-making process on strategic issues.

• Any significant deviation from agreed milestones or changes to core responsibilities must be jointly discussed and approved, ensuring that neither’s contributions are undervalued.

6. Amendments and Reassessment

• This Agreement is intended to reflect current shared interests and anticipated contributions.

• Reassessments on equity allocation and milestones shall occur at agreed intervals (e.g., annually) or upon significant changes in the venture’s trajectory.

• Any amendments require the unanimous written consent of both Founders.

Disclaimer: This preliminary agreement is provided for negotiation purposes only and does not constitute a binding legal contract.