Startup Founder Stock Purchase Agreement

Investors also demand limited shares to ensure that founders do not move away from the company. One of the main components in which investors invest their funds are the founders. If the investor wants the founder to continue contributing to the business, they will ask for an investment schedule that will give the founder their share in the business over time. It`s a usual joke in the valley that founders make a 100% investment of their business, leave at 0% (with their share that is unwavering over time) and rejoice (because they have received their investment funds). Haha: -| 2.4. The redemption option is exercised by the company, if applicable, by written notification to the founder or, in the event of the death of the founder, to the executor of the founder`s will and (i) by the delivery of a check equal to the repurchase price to the founder or the executor of the founder`s will, ii) by cancellation of the debt equal to the repurchase price, or (iii) by a combination of (i) and (ii), so that the combined payment and cancellation of the debt corresponds to the redemption price. To the extent that one or more certificates constituting unpublished shares have been previously delivered from the trust to the founder, the founder must, before the closing of the transaction, on the date indicated for the redemption, extend to the secretary of the company the certificate(s) representing the unpublished shares to be repurchased, each certificate to be duly confirmed for transfer. Upon notification of such notification and payment of the full purchase price repurchased, the entity becomes the legal and effective owner of the unsused shares and all rights and interests it has or is associated with them, and the entity has the right to retain and transfer to its own account the number of unpublished shares repurchased by the company. without further action on the part of the founder.

The right of co-founder is less widespread than the right of pre-emption in agreements between founders, but it is generally required of investors. 3.1.3. Purchase price. The purchase price (“purchase price”) for the shares acquired by the Company or its disposals in accordance with this Section 3.1.3 is the offer price. If the offer price contains consideration other than cash, the equivalent cash value of the ineffective counterparty shall be determined in good faith by the board of directors of the company. 11. Non-supply of shares. If the Founder (or his/her legal representative), who has been required to sell shares under this Agreement, does not provide such shares to the Company in accordance with the terms of this Agreement, the Company may, in addition to any other remedies of which it is aware, provide the Founder with the purchase price of such shares, as set forth below, Send.

Subsequently, the corporation destroys: (i) the certificate or certificates representing those shares for sale in its books; and (ii) issue (or destroy such shares) a new certificate or certificate in the name of the company representing those shares and, thereafter, all rights of the founder in such shares shall be extinguished. . . .