FOUNDERS REVERSE VESTING
Under reverse vesting agreements, founders essentially do not have full control of the shares they own if they leave the company before the reverse vesting period ends—typically four years. Reverse vesting agreements give the company repurchase rights to those shares not yet mature for a nominal fee or in many cases, for no cost at all.
Example: The vesting period for founder’s shares shall be 4 years from signing the founder’s agreement. 25% of founders Shares shall vest on the first anniversary of the agreement. The remaining 75% shall vest quarterly in equal installments over the following years.