Share Re-Purchase Mechanism ("Reverse Vesting")

Background

In most investment agreements, the investor requests (and usually receives) different rights intended to ensure, as much as possible, effective supervision of the company's management and the manner in which it promotes its business, out of the intention that the funds he invests in the company will be managed wisely and not wasted.

One of the most significant factors for which an investor is willing to invest in a company, apart from the product itself, and even beyond it, is the company's human capital, namely: the founders. Therefore, one of the investor's clear interests is to ensure and preserve, as much as possible, the founders and key persons in the company staying in the company.