Legal

Ask a lawyer and get answers to your legal questions

Ask a Lawyer,
Get an Answer ASAP!

I am a cofounder of a startup that is in its second year. I…

Customer Question
I am a cofounder...

I am a cofounder of a startup that is in its second year. I am thinking of leaving the company but have some vested shares. I would like to get some legal advice about my rights on the employment agreement: vested shares and any potential COI before making a decision by Tuesday 3/14/2018.

Lawyer's Assistant: Because laws vary from state to state, can you tell me where the company is registered?

Company is registered in Delaware C Corp. I am based out of Seattle

Lawyer's Assistant: Has anything been filed or reported?

No

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

No that is all the information

Submitted: 4 months ago.Category: Legal
Show More
Show Less
Ask Your Own Legal Question
Answered in 5 minutes by:
3/9/2018
Lawyer: Legal Eagle, Lawyer replied 4 months ago
Legal Eagle
Legal Eagle, Lawyer
Category: Legal
Satisfied Customers: 13,291
Experience: Licensed to practice before state and federal court
Verified

Hello! I am a licensed attorney, admitted to practice in state and federal court. I have a nearly 100% satisfaction rating (click here for more info) so all that means is that you can count on me to help today.

Please keep in mind that our conversation does not include an attorney-client relationship and this is for general information purposes only. What specific questions did you have? I have an idea about your situation, but I don’t want to make any assumptions.

Ask Your Own Legal Question
Customer reply replied 4 months ago
I want legal advice based on my agreement with the company. I want to get a full understanding of my financial rights in the event of company exit and any potential COI
Lawyer: Legal Eagle, Lawyer replied 4 months ago

Could you help me understand what you mean by COI exactly?

Ask Your Own Legal Question
Customer reply replied 4 months ago
34;Conflict of Interest" for any future employment
Lawyer: Legal Eagle, Lawyer replied 4 months ago

I understand what you mean. Perhaps you could give me some context so I can help you out?

Ask Your Own Legal Question
Customer reply replied 4 months ago
Definitely, I can share my file. A call would be good, althogh I cannot do that right now, as I am in a public/noisy place.
Customer reply replied 4 months ago
Do you have any other tie for a call? Maybe tomorrow?
Lawyer: Legal Eagle, Lawyer replied 4 months ago

Cool. You can upload the doc. Let me know if there's any clauses in there that are causing you any specific headaches. I'm out of the office tomorrow, but I'm back on Sunday if that would be more convenient.

Ask Your Own Legal Question
Customer reply replied 4 months ago
that would work. I will attach the doc here. Can I trust this to be confiential?
Customer reply replied 4 months ago
Can you please confirm and I will go ahead and attach the doc.
Lawyer: Legal Eagle, Lawyer replied 4 months ago

Yes. Attachments are scrubbed from the system.

Ask Your Own Legal Question
Customer reply replied 4 months ago
I have added my agreement and highlighted sections and added questions in comments where I have them. Most of the questions are on clarification and getting an expert confirmation. In addition I have a generic question on Future Employment:
- Succinctly, Is there any conflict of interest I should be aware of, after I leave the company. I did not see anything specific but just want to confirm it.
Customer reply replied 4 months ago
FYI, I have highlighted parts on Pages 31-37 & 45.
Lawyer: Legal Eagle, Lawyer replied 4 months ago

Thanks so much. Bear with me a moment.

Ask Your Own Legal Question
Lawyer: Legal Eagle, Lawyer replied 4 months ago

Ok, thanks for your patience. Let me know if I've missed anything:

1st Highlight: This just determines when the purchase date of your shares is final. Your shares are considered purchased from the day you receive them, but you can't actually do anything with them until they vest.

2nd Highlight: All this really means is that 25% of your shares every year on September 1st will not be able to be repurchased by the company if you quit, meaning that they are yours. The remaining 75% of the shares will be released from being repurchased every month over the next three years from 9/1/2016. I can't tell you how many that is, so you may have to do the math.

3rd Highlight: This means that these are yours shares that you can do with as you see fit. You may need to speak with their CFO/accountant/lawyer (whoever is managing the shares) for confirmation.

4th Highlight: This just means the company has to be offered to buy all of your shares first. If they refuse, then you can sell them to a third party.

5th Highlight: Securities traders have to register with the SEC, but shares in a company doesn't have to be registered with the SEC and the company is just saying that they're not bound by SEC rules.

Ask Your Own Legal Question
Customer reply replied 4 months ago
Thanks for your response. I will review this again in context of your reply and we can potentially schedule a call this Sunday. Appreciate it.
Lawyer: Legal Eagle, Lawyer replied 4 months ago

Sounds good.

Ask Your Own Legal Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a lawyerLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Ely Your Own Question
Ely
Ely
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 24,657
24,657 Satisfied Customers
Experience: Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

Ely is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it.

LeeMichigan

< Previous | Next >

Meet the Experts:

Ely

Ely

Counselor at Law

24,657 satisfied customers

Private practice with focus on family, criminal, PI, consumer protection, and business consultation.

INFOLAWYER

INFOLAWYER

Attorney

22,408 satisfied customers

Licensed attorney helping individuals and businesses

JPEsq

JPEsq

Attorney

2,132 satisfied customers

Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor

Law Educator, Esq.

Law Educator, Esq.

Attorney

44,066 satisfied customers

JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law

Ellen

Ellen

Lawyer, Consultant

8,238 satisfied customers

25 years of experience helping people like you.

Guillermo Senmartin

Guillermo Senmartin

Lawyer

300 satisfied customers

Principal Attorney at Guillermo J. Senmartin, P.A.

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

17,183 satisfied customers

Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

< Previous | Next >

Related Legal Questions
I want to ask more about C-corp because I'm an international
I want to ask more about C-corp because I'm an international founder and I'm not a U.S. citizen … read more
KLAW
KLAW
Juris Doctorate
2,253 satisfied customers
I started with a company in 11/2017. I signed a non-compete
I started with a company in 11/2017. I signed a non-compete with them. I wanted someone to look at the contract. I plan on starting my own company in 11/2018, and want to understand what I can and can… read more
INFOLAWYER
INFOLAWYER
Attorney
Doctoral Degree
22,408 satisfied customers
I received LLC kit, but...there is only one document
Hi, i received LLC kit, but...there is only one document confirming i'm the owner/manager of the company. Is that ok? How to open bank account based on that. I want to be anonymous so i need document … read more
KLAW
KLAW
Juris Doctorate
2,253 satisfied customers
Need to issue stock and/or a convertible. Need legal
need to issue stock and/or a convertible. Need legal assistnace … read more
KLAW
KLAW
Juris Doctorate
2,253 satisfied customers
At my former company, I had a loan secured by 25,000 shares
At my former company, I had a loan secured by 25,000 shares of stock. By the terms of the loan they have the right to demand payment starting in January 2017. At the time I was still an employee but r… read more
Lori
Lori
Juris Doctor
1,830 satisfied customers
I would like to start offering paid classes online and do a
I would like to start offering paid classes online and do a startup. Should I start a LLC or S corp in Delaware (i'm in CA)? Or should I just register DBA?… read more
Legal Eagle
Legal Eagle
Lawyer
13,291 satisfied customers
I've been offered stock option at my company Applicon.
I've been offered stock option at my company Applicon. Nyherji is the mother company of Applicon. Can you make send of the plan to know if this is a good option for me. Specifically I want to know if … read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
44,066 satisfied customers
I resigned from a company and was provided equity which I
I resigned from a company and was provided equity which I did purchase from the company. The following is the language from the restricted stock award and I resigned with good reason due to performanc… read more
Maverick
Maverick
Doctoral Degree
6,136 satisfied customers
We own a startup company, ‘TechnoFit, Inc.', that intends to
We own a startup company, ‘TechnoFit, Inc.', that intends to release a line of software programs that will guide and motivate users to set and achieve ideal fitness goals. We are about to release and … read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
44,066 satisfied customers
. I am a startup social network. Another startup company
Hi. I am a startup social network. Another startup company will do a full production commercial for my app in exchange for straight equity. I need an equity investment agreement or sweat equity agreem… read more
Maverick
Maverick
Doctoral Degree
6,136 satisfied customers
One of my coworker quit the job from a start up I work at.
One of my coworker quit the job from a start up I work at. He has some vested shares that he doesn't want. He doesn't believe the company will do good. Me on the other hand, think that the startup wil… read more
Law Educator, Esq.
Law Educator, Esq.
Attorney
Doctoral Degree
44,066 satisfied customers
I am separating from a privately-held company in which I am
I am separating from a privately-held company in which I am a shareholder. The company is offering to repurchase my shares as follows: 20% within 30 days of separation, the balance in quarterly instal… read more
Brandon M.
Brandon M.
Attorney at Law
Juris Doctorate
12,463 satisfied customers
We are a Delaware C-corp formed in 2000 with common stock and
We are a Delaware C-corp formed in 2000 with common stock and preferred stock. After ups and downs in the past 10 years, the investors (holders of the preferred stock) decided to back out by taking lo… read more
Andrea, Esq.
Andrea, Esq.
Attorney
Post-Doctoral Degree
10,512 satisfied customers
Hello, some friends and I created an S Corp on 2009 (registered
Hello, some friends and I created an S Corp on 2009 (registered in Delaware) and I have 20% percentage of the shares... I wish to transfer or sell all my shares to another shareholder and get out of t… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,770 satisfied customers
Hi - We just incorporated our company as a C Corp. in Delaware.
Hi - We just incorporated our company as a C Corp. in Delaware. We sent in our 83 (b) election with the Fair Market Value indicated as $1.50. This is the total value of 150,000 shares that each of us … read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,770 satisfied customers
Our startup company wants to offer shares of ownership to individuals
Our startup company wants to offer shares of ownership to individuals or investors willing to financially invest in the corporation. (C Corp) We would like to offer PRIVATE shares (Ownership) to inves… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
A partnership agreement defines how the partners will be
This answer is due by tuesday april 28th at 12:00 am. 1. A partnership agreement defines how the partners will be compensated. Normally, (Points: 2) both general and limited partners are permitted sal… read more
Robert Wichowski
Robert Wichowski
Attorney
Juris Doctorate
49 satisfied customers
I currently am the sole owner of a domestic S-corp in the State
I currently am the sole owner of a domestic S-corp in the State of PA. I have been in business for 11 years now and have had 1000's of clients. I recently set up an investment LLC in the State of Dela… read more
Steinlaw
Steinlaw
Attorney/Principal
JD
1,704 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x