Employee ownership, equity, options question (1 Viewer)

[eurotrashman]

So I joined a startup about a year ago and have weathered through a lot of BS along the way.   Last fall I turned in my resignation and the owners offered me a piece of the action.  We did a handshake deal that gave me 2% ownership in the company.   I will be vested after two years.   They are still drafting the paper work with their attorney, but every time I bring up the topic they are talking about it in terms of options and I keep reminding them that I own equity.   

Anyone have experience in this area that I might be able to bounce some questions via PM once I get the paperwork?   Or feel free to offer advice here or share stories.

TIA

 

[Johnny Rock]

Do you have a rough draft of the agreement yet or a signed memo outlining key points? You need a starting point on the wording so you can show your attorney and CPA. If they're dodging the first draft then it's not looking good to secure the deal imo. I hope it works out. 

 

[eurotrashman]

It was a straight hand shake deal - 2% equity in the company - vested fully after 2 years.

 

[IC FBGCav]

It was a straight hand shake deal - 2% equity in the company - vested fully after 2 years.

Hand shake deal is your problem.  If you want to be a business man you have to do proper business which means a signed contract.   I would try to find any emails with them acknowledging the agreement or try sending them an email now where they must acknowledge it.   People can be very shady, especially at business. 

To add: When you make a deal based on 2 years, you also need proof of when the deal initiated to know when the deal is completed.

 

[eoMMan]

Yeah, get that #### in writing.