On the Loss of a Cofounder

Re:On the Loss of a Cofounder by praveen9920 on Monday November 23, 2020 @02:03AM (#25184231)

This is sad to hear. This is huge loss for the family, the co-founder and also for the startup.

Not to be insensitive but had to raise this topic because this is very rare situation, Anyone knows how the stock of the co-founder handled in this situation in early stage startup, at least in US?

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Re:On the Loss of a Cofounder by blueblisters on Monday November 23, 2020 @04:12AM (#25184936)

I believe standard co-founder agreements have a "without cause" termination or "resign for Good Reason" agreement which accelerates the co-founder's vesting cycle in event of death or disability. The transfer of shares by will or intestacy to immediate family members may or may not be subject to a repurchase option by the Company.

Tl;dr it depends entirely on the specific wordings of stock purchase the agreement.

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