By: Ian

Ian — Tue, 19 Oct 2010 06:48:39 +0000

I've kept them separate classes, so that the founders' co-sale only applies to founders class shares. For founders who also buy preferred class shares, those exist entirely separate from the founders class and aren't affected by the co-sale. Note that in both cases I've had this situation one or two founders (out of total 3-6 founders) had the money and put up all of the "first round." But you may need to look at limiting opportunities for a founder to use voting rights of preferred shares to overcome certain restrictions on founders shares (such as, obviously, the co-sale itself).

By: rob

rob — Sun, 09 Apr 2006 23:04:48 +0000

If a founder purchases preferred shares, in addition to his or her common founder’s shares, do the co-sale terms typically apply to those preferred shares as well as the common? Or, do co-sales rights only apply to the common shares held by the founder?
Thx.

Comments on: Term Sheet: Restriction on Sales, Proprietary Inventions, and Co-Sale Agreement

By: Ian

By: rob