Throw away for obvious reasonsI have been working for a startup for a while on the dev side, as one of the first employees. I have a pretty decent stake now, of a company that is growing pretty quickly, has positive cashflow, and has just closed a very successful seed round.I was looking through my contracts in more detail for obvious reasons, and came across a clause that is essentially:If Awardee’s employment
relationship with the Company is severed for any reason... the Company shall
have the right, but not the obligation, to repurchase any or all of the Shares owned by
Awardee.This seems very bad. Is it very bad? Or is it standard in most contracts, and just never used? Because it reads to me like I could have busted my ass for years, but if I leave before IPO or acquisition, then they can just buy them back off me for pennies on the dollar.
It also begs the question, even if my boss is a good guy, isn't the company obligated to do what's best for the other Shareholders, which in this case would be to 100% buy back the shares of any employee who leaves?