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>Employees are unaware of these "veto" clauses Please correct me if I am wrong, but don't all option agreements have a "no transfer" clause that explicitly cov
by hkmurakami 10y ago
>Employees are unaware of these "veto" clauses
Please correct me if I am wrong, but don't all option agreements have a "no transfer" clause that explicitly covers sales of the securities?
- ncd 10y agoThey do, and this Agreement specified that the ROFR was the only practical limit on transfers. Indeed, the sale passed the scrutiny of outside attorneys who looked at all documents that had been given to the employees. It wasn't until a buyer had been found and the company had been notified that they pulled out the company bylaws and revealed this extra clause deep in the bowels of that document--a document which had never been furnished before.
- hkmurakami 10y agoWow that is... Pretty questionable wrt ethics (why did they explicitly call out ROFR, limiting their rights in the first place???). Really appreciate you sharing.