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Q: Employee Ownership / Stock / Profit Sharing Programs ($15.00) ( No Answer,   3 Comments )
Question  
Subject: Employee Ownership / Stock / Profit Sharing Programs ($15.00)
Category: Business and Money
Asked by: mrmojorisin-ga
List Price: $15.00
Posted: 09 Jan 2005 17:40 PST
Expires: 08 Feb 2005 17:40 PST
Question ID: 454739
I started a company with a friend approx. 2 years ago.  The funding
for the company came from him and his brother.  When asked about
company ownership, I was told "You'll get something when it comes time
to sell".  Being a friend, I took this at face value and continued to
work building the company.  When I pressed him on several occasions to
document a "employee ownership" program, he declined saying it was too
complicated an issue to address and that "I would be given something".
 This answer is no longer good enough for me.

I'd like to find a source (website, etc..) that shows several typical
"Employee Ownership" programs for small start-up companies (preferably
S-Corps) that I could give to him as a template/guideline.  The parent
company is an S-Corp. The business I started with him is a subsidiary
of this S-Corp company ("doing business as" xyz).
Answer  
There is no answer at this time.

Comments  
Subject: Re: Employee Ownership / Stock / Profit Sharing Programs ($15.00)
From: mws23-ga on 09 Jan 2005 18:04 PST
 
Granted, I don't know all the details but, I don't think your "friend"
needs a template. What I do think is that you should talk to a laywer
- no, not to sue your friend, but to learn what steps you need to take
to preserve your rights.

Then, if you want to see samples of employee ownership agreements you
can run search on findlaw.com or other similar sites.
Subject: Re: Employee Ownership / Stock / Profit Sharing Programs ($15.00)
From: david1977-ga on 09 Jan 2005 18:09 PST
 
Well as it is you don't seem to have any legal binding contracts. Do
you have any of the ownership with your name on it? Becuse if you
bring what you are looking for to his attention then there is a cahnce
that the outcome could end up bad. As such I would go ahead and
contact a lwayer about this. And have him help you establish your
ownership in the company. Keep as discreet as possible untill you have
to take a stand. Verball agrements can be some what withstanding but
if your friend and his brother have a paper trail of there ownership
and you cannot supply anything then you may be at a lose. Are any of
the bills in your name? Is your name on any of the paperwork as a
owner? Do your clients have knowledge of your owner ship? Are there
certain parties that have delt with you as a owner?
Subject: Re: Employee Ownership / Stock / Profit Sharing Programs ($15.00)
From: neilzero-ga on 13 Jan 2005 06:42 PST
 
Hi mrmojorism: What you are proposing will all but surely get
complicated and costly. A typical lawyer will write up a deal that
will make future fees for the lawyer probable. Why not a one sentence
contract stating: "Mrmojorisn will receive a minimum of one percent of
the gross sale price of Blabla, when and if the business is sold or
becomes part of a merger etc." Adding the word gross will slightly
discourage the business from barrowing large amounts of money. The
signatures should be witnessed and perhaps notarized. Neil

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