Friday, 1 May 2020

Purpose

The basic principles under which the 4 founders of aarzoo, Inc. will work together to build a great company. This is not a legal document, but hopefully bears a greater force upon our obligations to each other.

Principles

Vinod, Vivek, Akhilesh, Bharat,

We refer to the 4 of ourselves as “we”, “us” or possessively as “our/ours” in this document.

The date of the document is irrelevant to the intent and purpose of our working together. Unless explicitly stated otherwise this applies to every relevant act or decision of ours perpetually into the past, and perpetually into the future, unless superseded by other legal obligations.

Ownership

We own an equal share of the company, and intend to keep it that way. The ownership of the company will also be shared with the other team-members, and we will demarcate a part of the company as belonging to them, to be disbursed over time, as part of a stock compensation plan.

Compensation

We will always pay ourselves the same amount in wages and benefits. We will strive to ensure that this pay is what keeps all of us comfortable and free from encumbrances that distract us from building the company. If there is a concern around how the company can afford to pay all of us, we can volunteer to defer our pay until better times.

Finances

We will pay for the company’s affairs in two ways:

1. Reimbursements: These will be for expenses we bear for day-to-day things, and such that need to be immediately settled. Food and transport are things that will be covered like this. Until such time as capital or debt is available, we will also try and treat larger expenses as reimbursements. The reimbursements will eventually be paid out from the capital or debt available to the company. It should be expected that reimbursements will happen when we are comfortable in our cash flows, or there is substantial capital or debt available to clear these out.

2. Debt: This is money that each of us will loan to the company, which will be reimbursed at a later date in part or whole, including the interest borne on that amount; with the interest paid out before the principal. A rough (non-binding) guide is that we will try and consider debt as the instrument of financing the company when:

   1. The company is earning revenue
   2. Our expenses are stable
   3. Have an idea of the next $5000 or 3 months worth of expenses

   The interest to be paid from the day the amount was received by the company to the day that an amount was disbursed to the company, will be calculated as per the interest and exchange rate policies of the companies, as listed in theRates document.

Dissolution

If in the future for some reason the company needs to be closed, and we are in the process of shutting down the company, we will act according to these guidelines:

1. The accumulated liabilities (net accumulated expenses, debt) up to the point of dissolution will be split evenly among the founders.
2. The accumulated assets (net revenues, cash reserves) up to the point of the dissolution, after returning all maximum dues to shareholders, accounting for legally mandatory fees and expenses; will be split in proportion of vested stock holding of all team-members and the total stock holding (vested and unvested) of the founders.

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