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Founder's Restricted Stock

A type of founder's stock in which the company has a right to repurchase the stock from a founder. The repurchase right is usually triggered by the founder's termination of employment or end of other services for the company. For example, as a condition of their funding, investors may require a founder's shares to be subject to a repurchase right that lapses over time in a way similar to a vesting schedule. See the FAQ that looks at tax issues with this type of stock.

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