How a vesting schedule may look like?

Vesting can be structured according to the parties’ business goals. It can be performance-based or time-based. A typical one and most commonly used is a four-year vesting with a one-year cliff. This means that 25% of the shares will vest one year from the vesting commencement date, with 1/48 of the total shares vesting every month thereafter, until the shares are completely vested after four years. The vesting commencement date can be the date of issuance of the shares, or an earlier date, in order to give the founder vesting credit for time spent working on the company prior to incorporation and/or issuance of the shares.

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