Start-Up Documentation
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0 Start-Up Law Talk www.startuplawtalk.com Corporate Law Carter Mackley Mackley & Mackley, PLLC (206) 249-9678 carter.mackley@mackleylaw.com www.mackleylaw.com/ Immigration Law Tahmina Watson Watson Immigration Law Seattle, WA, 98154 (206) 292-5237 tahmina@watsonimmigrationlaw.com www.watsonimmigrationlaw.com Tax Deniz Kiral Turquoise Tax Advisory (425) 945-6300 deniz@turquoisefinancial.com www.turquoisefinancialadvisory.com Intellectual Property Law Ashley K. Long Ember Intellectual Property Law Group, PLLC (617) 513-8222 ashley@emberip.com www.emberip.com START-UP DOCUMENTS OVERVIEW What are the minimum legal documents necessary for the wellorganized startup company? (What documents will a sophisticated investor or acquirer expect to see?) Big Picture Categories • Corporate Formation Documents • Founder Stock Purchase and Contribution • Equity Compensation • Other Employee Documents • Technology Protection • Financings • Commercial Contracts Corporate Formation Documents • Articles of Incorporation (or LLC Operating Agreement) • Bylaws • Stock Purchase Agreements (see slide on founders) • Stock Ledger and Cap Table • Stock Certificates • Minute Book (organizational resolutions) • EIN Application • State Business License • Local Business License • Shareholder Agreement • S Election – Consent to S Election (If so electing) Articles of Incorporation • Filed with Secretary of State • Authorized Shares • Terms of Stock • Board of Directors • Voting Rules and Thresholds • Special Voting Protections • Director Indemnification/Liability Limitations Bylaws • Shareholder Voting Procedures • Board of Directors Procedures • Officer Duties • Indemnification (can also be separate document) Shareholder Agreement • Voting Agreement for Board of Directors • Right of First Refusal • Co-Sale • Drag-along Clause • Break-up • Death/Disability/Bankruptcy/Divorce Founder Agreements • Restricted Stock Agreement • Vesting Schedule • 83b Election • Employment Agreement? • IP Assignments and Invention Assignment Agreements Executive Employment Agreement • Base Comp • Bonuses • Severance • Termination • Cause/Good Reason • Non-Compete • Intellectual Property Equity Compensation • Board and Shareholder Approvals • Stock Option Plan http://www.startuplawtalk.com/start • Stock Option Grant • Stock -up-law-talk-workshop-h1b-andOption Agreement the-start-up/ • Exercise Notice Other Employee Documents • Offer Letters • Inventions Assignment and Confidentiality • Stock Option Grants • Tax Forms • Employee Handbook • Benefits disclosures Inventions Assignment and Confidentiality Agreement • All employees/all contractors should sign • Assignment of Inventions • Confidentiality • Non-compete • Non-solicitation • Recites company ownership of emails, etc. Technology Protection • Asset Assignments (at founding) • Inventions Assignment and Confidentiality Agreement • • • • (employees and contractors) Non-Disclosure Agreements (mutual and unilateral) Trademark Registrations Patent Applications(?) Website Terms of Use Commercial Contracts (Examples) • Independent Contractor Agreement • Website Terms of Use/Privacy Policy • SAAS Agreement • Distribution Agreement • Supply Contract • Engineering (Design) Services Agreement • Service Provider Agreements (e.g., hosting agreement) Financings - Series A Documents • Business Plan/Private Placement Memorandum • Term Sheet • Cap Table • Purchase Agreement • Certificate of Designation • Shareholder/Voting Agreement • ROFR/CoSale Agreement • Investor/Registration Rights Agreement • SEC Form Ds – Blue Sky Certificate of Designation • Terms of Preferred Stock • Liquidation Preference • Dividends • Conversion Terms • Redemption • Protective Voting Provisions 16 Start-Up Law Talk www.startuplawtalk.com Corporate Law Carter Mackley Mackley & Mackley, PLLC (206) 249-9678 carter.mackley@mackleylaw.com www.mackleylaw.com/ Immigration Law Tahmina Watson Watson Immigration Law Seattle, WA, 98154 (206) 292-5237 tahmina@watsonimmigrationlaw.com www.watsonimmigrationlaw.com Tax Deniz Kiral Turquoise Tax Advisory (425) 945-6300 deniz@turquoisefinancial.com www.turquoisefinancialadvisory.com Intellectual Property Law Ashley K. Long Ember Intellectual Property Law Group, PLLC (617) 513-8222 ashley@emberip.com www.emberip.com
