ASK HN: Sample contract for vested shares for a new cofounder

6 points by song 16y ago ↗ HN

Hi,

I'm bringing onboard a new cofounder for my startup. After negociations, we decided that he would get a percentage of the company vested of 2 years and be paid a small salary hourly to cover cost of living.

Does anyone know a good sample contract I could use for that? My company has already existed for 1 year and is a offshore LLC (based in HK).

Are their any tax liabilities or other things I should think about?

Thanks

3 comments

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hajrice 16y ago ↗

Hey, you have a typo in your second sentence. "...negociations..." should be negotiations.

Good luck btw!

EuclidCapital2 16y ago ↗

Normally would be done as: he buys stock, the company has "repurchase rights" over those shares, repurchase rights "vest" / "expire" ratable over 3-4rys. (your case 2yrs).

This would be a term in your "Stock Purchase Agreement" (if you were a corp).

song 16y ago ↗

Thanks, so what is the advantage of making him buy stocks instead of giving it to him? For tax questions?

So how do I determine the price he buys stock at? and do I give him the money for buying it ?

Cheers