within vesting agreements there are change of control conditions. For outright sales, it usually works out that those who are over the cliff have their vesting accelerated. In a merger (which a lot of acquisitions technically are), the acquiring entity will usually lock the employees down with a new agreement that includes the requirement to further vest out.
In other words, it depends. The best thing to do is to find a good law firm, pref in the valley and pref a firm that works with startups. Get a fixed price (or fixed price + options - some firms do that) for incorporation docs and establishing the pool and agreements etc. Setup a decent employee pool plus some for advisors and board members down the road. If you do eventually get funding, the VC will have a hard time arguing that you should wipe the slate clean if everything is already setup. VC's use pools and allocations to squeeze you further on a deal, usually without the founders noticing.
Don't use off-the-shelf agreements that you find online, do it properly. It should cost you $1-3k all up for the lot.
I am not sure what YC do as part of their foundation docs, I would be interested to know.
In other words, it depends. The best thing to do is to find a good law firm, pref in the valley and pref a firm that works with startups. Get a fixed price (or fixed price + options - some firms do that) for incorporation docs and establishing the pool and agreements etc. Setup a decent employee pool plus some for advisors and board members down the road. If you do eventually get funding, the VC will have a hard time arguing that you should wipe the slate clean if everything is already setup. VC's use pools and allocations to squeeze you further on a deal, usually without the founders noticing.
Don't use off-the-shelf agreements that you find online, do it properly. It should cost you $1-3k all up for the lot.
I am not sure what YC do as part of their foundation docs, I would be interested to know.