I am preparing the form to elect 83b on my founder shares based on a vesting agreement. Should the restriction clause in the 83b be detailed as to enlist the vesting schedule agreements and terms of forfeiture and vesting? or I only need to write a simple line saying the shares are subject to buyback from the company ?
Will the following sentence suffice?
"The property is subject to the following restrictions: The Shares may be repurchased by the Company, or its assignee, upon the occurrence of certain events. This right lapses with regard to a portion of the Shares over time."
I found this on a sample 83 election form: http://www.naffziger.net/blog/wp-content/uploads/83b-election.doc
Or should I list the terms such as the length and percentage, triggers, etc...
You just need to confirm that there is a substantial loss of forfeiture and the basis. So what you wrote should be ok.
This article discusses other things that are suggested for filing and record-keeping http://www.startuplawblog.com/2011/07/15/5-things-to-remember-as-you-file-your-section-83b-election/.
Good luck with your venture.
This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.
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