Legal Question in Business Law in Arizona

I am owed Options for work completed

Thanks in advance for your help. In 2003 I lived in Phoenix and through some connections started working as a consultant for a startup company. For the first few months I was paid in options and eventually hired on as the Director of Marketing. I left several months later when it was clear to me that the company was not going to make it.

Now 3 years later they have yet to complete a sale but I've heard they might get bought out. I have an agreement for 20,000 options and have copies of the deliverables but have never been issued the options. I asked shortly before I left but didn't push it becuase I pretty much expected that they would go under. But for the last 6 months I've been calling/email their new CEO who knows me (formerly their Board Chairman - very much a prick) who doesnt take or answer my calls/email.

In December I sent him a package with the agreement/deliverables via certified mail and have followed up several times again with no response.

How do I go about getting them to pay me my options that are due? How long do I have before I take action? I've done nothing thus far largely because the options are not worth anything but plan to if they get bought out.

Thanks,

Bill


Asked on 2/20/06, 1:04 pm

2 Answers from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: I am owed Options for work completed

As is often the case, the guy that owes you something, does not respond to your calls or other attempts to contact him. It would seem that your only option is to hire an attorney and proceed with a breach of contract action. You may have to sue the company and the CEO in order to get what is owed to you, however, the mere receipt of a lawyer's letter may get the result you want as well.

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Answered on 2/20/06, 2:46 pm
Terry A. Nelson Nelson & Lawless

Re: I am owed Options for work completed

Who says the options are "due"? Typically, options are void upon the employ leaving the company, exercisable only while you are employed. IF you have an 'enforceable' contract that specifies otherwise, and they are actually due you and excercisable this long after leaving the company, then you will likely have to sue since your letters are being ignored. You are going to be spending a lot of legal fees for something that may not be worth anything according to you.

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Answered on 2/20/06, 3:22 pm


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