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Founder Vesting Agreement

A completed fictional founder share vesting agreement covering reverse vesting, leaver treatment, acceleration and Companies Act records.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# FOUNDER VESTING AGREEMENT

Date: 15 October 2029

Parties: Cedar Lantern Technologies Limited and Maya Singh

## 1. Parties and purpose

Cedar Lantern Technologies Limited (Company No. 15092211) of 81 Deansgate, Manchester M3 2BW and Maya Singh of 6 Birch Avenue, Stockport SK3 0QF agree these terms alongside the articles and shareholders' agreement.

## 2. Money and rights

Maya holds 200,000 ordinary shares of £0.0001 each, issued and fully paid. To align ownership with continuing contribution, the shares are subject to reverse vesting over 48 months from 1 October 2029.

## 3. Duties and operation

Twenty-five per cent vests on 1 October 2030 and the balance vests in 36 equal monthly tranches, provided Maya remains engaged as Chief Product Officer and has not triggered a leaver event. Vested shares are not automatically repurchased.

## 4. Consent and management

If Maya is a Good Leaver because of death, permanent incapacity, or termination without cause, all shares scheduled to vest in the following six months accelerate. If she is a Bad Leaver after fraud, gross misconduct or material repudiatory breach, unvested shares may be transferred at the lower of subscription price and fair value to the extent permitted.

## 5. Ending and remedies

A sale of all or substantially all of the Company or a change of control accelerates 50% of the unvested shares, with double-trigger acceleration of the remainder if Maya is dismissed without cause within 12 months. The board must follow the articles and Companies Act 2006 requirements.

## 6. Legal reservations

Maya must sign reasonable transfer, stamp-duty and register documents and remains bound by confidentiality, IP assignment and lawful post-termination restrictions. No tax outcome is guaranteed; she must obtain advice on employment-related securities and HMRC reporting.

## 7. Signatures

England and Wales law applies. This agreement does not vary the articles unless properly adopted, does not create an employment guarantee, and is varied only in writing signed by the Company and Maya. The authorised director and Maya sign on the date above.

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