Forfeiture and Repurchase Option Sample Clauses

The Forfeiture and Repurchase Option clause allows one party, typically the issuer or company, to reclaim ownership of shares or assets if certain conditions are not met by the holder, such as failing to fulfill vesting requirements or breaching agreement terms. In practice, this means that if an employee leaves a company before their shares are fully vested, the company can either forfeit those unvested shares or repurchase them, often at a predetermined price. This clause serves to protect the company’s interests by ensuring that ownership remains aligned with ongoing participation or performance, and it provides a clear mechanism for handling equity in cases of early departure or non-compliance.