F6s Startup Community launches Mentor Shares Agreement Template

http://thenextweb.com/insider/2012/10/05/f6s-startup-community-launches-mentor-shares-agreement-to-fomalise-startup-mentor-agreements/

by iProject • 14 years ago

16 5 14 years ago

thenextweb.com

grabeh2• 14 years ago

It seems a little strange to me that either party can terminate at any point without cause when there may be an agreement to vest shares in place, at least in the UK version. Shares do continue to vest during the notice period but this is likely to be a limited period of time.

I suppose you would just increase this period of time to whatever length was necessary but this seems a circuitous way of dealing with the issue.

I wouldn't allow termination without cause if I was due to get shares after a certain amount of time.

seka2• 14 years ago

Grabeh - good points. We had feedback from f6s community members that they wanted to cover the case where either Mentor or Startup priorities changed during the agreement. The idea behind the ability to mutually terminate was to make sure either party could get out if the relationship wasn't delivering.

Your thinking on increasing the termination period is spot on. That was inserted primarily to cover the case where the Startup terminates the agreement after the Mentor delivers but before a 'fair' amount of vesting has happened. An extreme case would be where the Mentor delivers significant value before the Cliff Period ends, but the Startup terminates the agreement before any shares have vested.

Mentor/Startup alignment is key.

Having said all that, it's a template licensed under Creative Commons so please go ahead and modify it as needed for your particular case. Always be protected and use a legal professional ;)

grabeh2• 14 years ago

Hey, thanks for the response! I just didn't want anyone getting screwed over by unscrupulous behaviour!

bobinator30• 14 years ago

beware registration wall

seka2• 14 years ago

Good catch Bobinator

We intended to launch the Mentor Shares site so you could both view the page and download the documents without registering, but the open download bit obviously didn't stick.

We've updated the page now and you can download the docs freely.

Having f6s generate a doc for you still requires log-in.

F6s Startup Community launches Mentor Shares Agreement Template

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