Unvested Share Repurchase Right

An Unvested Share Repurchase Right (or Repurchase Option, or Reverse Vesting) enables the Company to repurchase unvested shares held by Founders or former service providers on or following their termination of service to the Company at a price equal to the original purchase price for such shares (which is often very low). This right is one of the main ways that startups can keep tight control over their cap tables.