Legal Question in Business Law in California

Re: Agreement to distribute equity in a company

If all you want is what you've described you can draw it yourself. It might, however, be an opportunity to flush out your complete expectation and that of your Business Development Manager.

Re: Agreement to distribute equity in a company

The best way would be to handle this as part of a contract, depending on your current business form. If you wish to discuss your objectives in greater detail, feel free to contact me telephonically or via email, as our firm operates in your area.

Re: Agreement to distribute equity in a company

from the information submitted, a standard business agreement/contract can be drafted to reflect the points you covered more than adequately. if you would like further legal assistance in this area or such a contract drafted, feel free to email me directly on how and when you would like to proceed, and then at that time we can go over all of the provisions you want included in the business agreement. thanks for your question.

Re: Agreement to distribute equity in a company

You say you are a "partner" in the business. Do you literally mean the business is being conducted as a general partnership? If so, giving equity probably means admitting the person as a partner, with all that entails. Of course, partners do not have to be co-equals in terms of percentage interest, but there are many considerations that do not arise in a corporate setting.

Perhaps you are now, or should be, a corporation or LLC. Each of these engenders different possibilities, including stock option plans, step-wise vesting plans, repurchase agreements, and many other well-tested methods for giving small equity interests that can be "reclaimed" by the corporation (or LLC) in the event things don't work out.

You should be aware that tax and securities law considerations arise, as well as ordinary contract and employment law issues.

If you would like a more detailed answer, please advise me the form of business entity you're using and other particulars, including whether the individual to be given equity has an employment contract or is "at will."