What legal issues or language should you be looking for or aware of when reviewing a startup job offer employment contract or agreement? Let experienced startup job offer contracts agreements negotiations lawyer Andrew S. Bosin located in New Jersey outside of New York City help you understand your legal rights when joining a startup.
Andrew provides legal advice to clients seeking startup employment contracts agreements legal advice who are located in the United States (US), New Jersey, New York, NYC, Brooklyn, Connecticut, Boston, Philadelphia, Pittsburgh, PA, Charlotte, Raleigh, Atlanta, Washington, DC, Los Angeles, San Diego, San Jose, Sacramento, Silicon Valley, Mountain View, Los Gatos, Fremont, Santa Clara, Menlo Park, Redwood City, Sunnyvale, Cupertino, Palo Alto, San Francisco, California, Salt Lake City, Utah, Boulder, Denver, Colorado, Orlando, Tampa, Miami, Jacksonville, South Beach, Miami Beach, Florida, Northern Virginia, Minneapolis, Chicago, Illinois, Seattle, College Park, Maryland, College Station, Texas, Delaware, Maryland, Kansas City, St. Louis, Nashville, Austin, Dallas, Houston, San Antonio, Ft. Worth, Texas, Indianapolis, Idaho, Charleston, South Carolina, Cleveland, Columbus, Iowa, Louisville, Alaska, Europe, UK, London, Dublin, Rome, Paris, Amsterdam, Berlin, Israel, Hong Kong, China, Poland, Denmark, Singapore, Madrid, Barcelona, Australia, Abu Dhabi, UAE and India.
This is not an exhaustive list of legal issues to be aware of when reviewing a startup contract just some topics to think about. Startups will typically provide candidates with a job offer letter making promises of stock in the company and also advising that the stock is subject to both a vote of the board of directors and the stock options agreement and stock grant. Often times, these offers fail to provide the candidate with any documents to show that the Company has authorized or issued any type of stock, that it has a stock options plan in place or that the board has voted and approved to put these legal documents in place or voted to approve of the candidate’s job offer package.
What the startup fails to tell you is that in all likelihood your stock will be restricted and that there will be a claw back provision so that if you are terminated or voluntarily leave the company the startup can take your stock back or buy it for pennies on the dollar. The startup will also fail to mention during this honeymoon period that your vested stock will be subject to a right of repurchase by the company also.
And, don’t forget you are likely an at will employee whose stock will not begin to vest until one year after your start date.
With that said, all offers sound great until you ask the company to put everything in writing and show you the underlying documents which control how much stock you get, when, and whether or not you can keep the stock that vests when terminated or leave the company voluntarily.
In his startup employment agreement law practice, Andrew offers legal advice and counsels startups, founders and their employees on every possible legal issue including but not limited to, Employment Contracts, Employment Agreements, Executive Compensation Agreements, Job Offer Terms Sheets, Restricted Stock Equity Agreements, Founders Restricted Stock Purchase Agreements, Vesting of Equity and Options, Deferred Compensation, Bonus and Salary, Business Entity Formation, Incorporation, Delaware C Corporation, Bylaws, LLC Operating Agreements, Independent Contractor Agreements, Non-Compete Agreements, Non-Competition Agreements, Non-Solicitation Agreements, NDA’s, Licensing and intellectual property (IP) agreements.
Andrew provides legal advice to founders, entrepreneurs and startups in startup employment contract agreements negotiations based or located in the United States, US, New Jersey, New York, New York City, Brooklyn, Albany, Syracuse, Buffalo, Connecticut, Boston, Massachusetts, Florida, Texas, Chicago, California, Dallas, Miami, Orlando, Jacksonville, Washington, DC, Philadelphia, Austin, Houston, Phoenix, Denver, Salt Lake City, Provo, Utah, Atlanta, Charlotte, Raleigh, Los Angeles, San Diego, San Francisco, Silicon Valley, Provo, San Antonio, Indianapolis, Columbus, Cleveland, Pittsburgh, St. Louis, Kansas City, Nashville, Ohio, Idaho, Alaska, UK, Europe, Amsterdam, Toronto, Paris, Madrid, Rome, Madrid, London and India. Startup Founders Restricted Stock Purchase Agreements. Startup founders agreements. Founders Agreements. Stock Purchase Agreement for a Delaware Corporation. Common Stock Purchase Agreement with vesting.
Please call Andrew for a free initial legal consultation at 201-446-9643.
www.njbusiness-attorney.com
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