Cherrytree – Cofounder Performance & Departure

In every startup, execution is everything. You can have the best idea in the world, the perfect cofounder team, and a shiny product plan, but if the work doesn't get done, nothing happens. However, sometimes, for one reason or another, we can't perform at the level that's necessary.

In those cases, the best we can do is protect the company and the friendship. You do that by planning for the what-ifs ahead of time. Performance isn't just about grinding harder. It's about foresight, flexibility, and keeping the company moving even when things don't go perfectly.

Select all that apply. These are the escalating consequences if a cofounder doesn't meet their commitments.

What happens if a cofounder fails to meet their agreed-upon obligations?

Formal warning and performance plan Temporary suspension of voting rights Reduction or dilution of unvested equity Role reassignment or demotion Termination

A cure period gives the underperforming cofounder a fair chance to correct the issue before further action is taken. 30 days is a common default.

How many days does a cofounder have to fix the issue after receiving written notice before termination can occur?

Select all that apply. Termination "with cause" typically means forfeiture of unvested equity and other consequences.

Which of the following constitutes termination "with cause"?

Fraud, embezzlement, or theft Breach of fiduciary duty Willful misconduct or gross negligence Material breach of this agreement Criminal conviction Other

A notice period gives the remaining cofounders time to redistribute responsibilities before the departure takes effect.

How many days notice must a cofounder give if they choose to voluntarily leave?