Founder Vesting Clause Samples
The Founder Vesting clause establishes a schedule under which company founders earn their ownership shares over time, rather than receiving them all at once. Typically, this means that if a founder leaves the company early, they forfeit any unvested shares, which may then be redistributed or retained by the company. This clause is crucial for ensuring that founders remain committed to the business and helps protect the company and other stakeholders from the disruption caused by a founder's premature departure.
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Founder Vesting. Concurrently with the Corporate Conversion, the Founder’s stock in the corporate successor shall be subjected to reverse vesting for a period of two (2) years beginning on the Effective Date. If the Founder terminates his employment with the corporate successor voluntarily or is terminated for Cause, then the corporate successor may repurchase at cost fifty percent (50%) of the Founder’s shares during the first year after the Corporate Conversion and twenty-five percent (25%) of the Founder’s shares during the second year after the Corporate Conversion. The repurchase price will be based on the original purchase price of the Founder’s Units as of the date of issuance.