Recently, because the resignation of C# Feng Dahui of Clove Garden has triggered everyone's discussion on stock options. Recently, Legal VC published a finale titled “Feng Dahui and Lilac Garden. Who wins and loses? There are articles in Ali and SouFun Pre-orders. From the legal point of view, this event is not discussed here. Because options are one of the most commonly used incentives for startups, they are also a double-edged sword. I hope to learn more about options and those "pits" through rational discussion.
The IT network red Feng Dahui and the old club's grudges dispute, throwing away the feelings, or the interests of the dispute, this core interest is the option, is the human capital in the company's mechanism arrangements have problems. At present, the parties are both at the moral level and at the legal level. The focus is on the option exit mechanism. For the outcome of the event, both parties choose to choose reconciliation or litigation, and believe that it is ultimately based on the expectations of the results of the legal rules.
For the long-term, VC has provided equity structure design services for entrepreneurs. It has a deep understanding of partner disputes. Today, combined with SouFun.com, Alibaba.com, the two well-known Internet companies, entrepreneurs, elders, resignation options, and court decisions. To explore Feng Dahui's option dispute ending, the most important thing is to let the founders pay attention to the option mechanism design, and not to use the best incentive mechanism in the human capital era.
Are all the repurchase terms blamed?
Feng Dahui joined the clove garden in June 2010. It has been 6 years since he left. He wants to get his own rights after leaving the company. It is said that the clove garden has not allowed him to exercise his rights, but he has repurchased the price. The two sides did not reach an agreement, so there was a dispute over the options that were torn apart from the media. Many self-media articles have pointed out that when Lie Garden issued an option to Feng Dahui, there was no clear agreement on the repurchase price. I think it is so simple to infer that it is too small to look at the lawyers in the Liyuan Garden.
Let's look at an agreement on repurchase in an industry option grant agreement.
Figure 1 is a template for an industry option award agreement. Article 9 stipulates a faulty repo, and Article 10 stipulates that there is no fault repurchase. Feng Dahui's situation is initially applicable to Article 10, and the repurchase price is Fair market price. Most of the disputes may now be attributed to Feng Dahui's departure. As a startup with a valuation of nearly one billion dollars, the clove garden is difficult to reach an agreement on the fair market price, even if there is mediation by the former partner of the fund. No results.
[Figure 1: Option Grant Agreement Template]
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