Founder Authority Clause Samples
The Founder Authority clause defines the specific powers and decision-making rights reserved for the company's founders. Typically, this clause outlines areas where founders retain control, such as strategic direction, hiring key personnel, or approving major business decisions, even if other investors or stakeholders are involved. By clearly delineating these authorities, the clause ensures that founders maintain essential control over the company's vision and operations, thereby preventing dilution of their influence and safeguarding the original intent behind the business.
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Founder Authority. Subject only to the requisite approval of the Merger and this Agreement by the shareholders of the Company, Founder has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. Each of this Agreement and the Voting Agreement, Proxy, and Affiliate Agreement executed by (the "FOUNDER AGREEMENTS") has been duly executed and delivered by Founder and constitutes the valid and binding obligation of Founder. Subject only to the approval of the Merger and this Agreement by the shareholders of the Company, the execution and delivery of the Founder Agreements by Founder does not, and, as of the Effective Time, the consummation of the transactions contemplated hereby and thereby will not, conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation, modification or acceleration of any material obligation or loss of any material benefit under (any such event, a "Founder Conflict") any mortgage, indenture, lease, contract or other agreement or instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Founder or his properties or assets. No consent, waiver, approval, order or authorization of, or registration, declaration or filing with any Governmental Entity or any third party, including a party to any agreement with Founder (so as not to trigger any Founder Conflict), is required by or with respect to Founder in connection with the execution and delivery of the Founder Agreements or the consummation of the transactions contemplated hereby and thereby.