[exhibitapp]

Founder of a Series A company. Just give them the equity which should be in the form of options at this stage, which they will need to choose to exercise. If shares still give it to them.

If you don't people will gossip and hurt employee moral.

As for effect on cap table, theres no issues with a former employee having some common shares. If you raise money it will likely be in the form of preferred shares.

Find a better way to indentify under performers earlier so it doesn't drag out to this point