Founders Agreement Share Purchase

Summary

In Israel, the mechanism for purchasing a terminated founders shares typically involves a vesting schedule where only vested shares are considered for purchase. The buyback option allows the company or remaining founders to buy back the shares at a predetermined price or fair market value. The termination clause outlines conditions based on whether the termination was voluntary or involuntary.

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Israel
In Israel, founders' agreements typically include:
- Division of equity among founders
- Roles and responsibilities
- Decision-making process
- IP rights
- Exit strategy
Could you specify what aspect of the founders' agreement you need help with?
The mechanism of purchasing invested shares of a terminated founder
In Israel, founders' agreements typically address the mechanism for purchasing the shares of a terminated founder. Here are a few key points that might be included:
- Vesting Schedule: Shares may vest over time, meaning the terminated founder might only retain vested shares.
- Buyback Option: The company or remaining founders may have the option to buy back the shares, often at a predetermined price or fair market value.
- Termination Clause: Specific terms regarding whether the termination was voluntary or involuntary and how that affects the share purchase.
Do you need more details on any of these points?
Yes. I have an exam and there’s a question about a founder who’s terminated by the other * founders. The question is what is the mechanism of the two founders purchasing the terminated founder’s shares
In Israel, the purchase mechanism of a terminated founder's shares generally involves:
- Vesting Schedule: Only vested shares are considered for purchase.
- Buyback Option: Shares are bought back at a predetermined price or fair market value.
- Termination Clause: Conditions based on whether the termination was voluntary or involuntary.
Would you like more details on any of these points?