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A co-founder agreement is essential for preparing partners for potential conflicts and ensuring amicable resolutions, even in worst-case scenarios. It functions similarly to a pre-nuptial agreement, providing clarity and structure. In this video, startup lawyer Feijo outlines the importance of such agreements, key terms to consider, and the lifecycle of these documents. Notably, co-founder disputes are a primary reason for startup failures, making it crucial to establish clear terms upfront. A co-founder agreement is essentially a short form shareholder agreement and addresses issues such as ownership structure, decision-making processes, and the handling of equity.