Other side seems to be pretty simple: Arrington accepted to be co-founder of Archimedes Labs with 25% ownership. The Archimedes Labs was founded by Keith with h

Other side seems to be pretty simple: Arrington accepted to be co-founder of Archimedes Labs with 25% ownership. The Archimedes Labs was founded by Keith with him retaining 75% ownership and it was merely a shell company for many future startups. The problem in this arrangement was that whatever Arrington or Keith did would be counted as new or existing startup work under Archimedes Labs umbrella and therefore other co-founder also gets to become co-founder on each others work - even if they had zero contribution. So it was possible for Keith to legally challenge Arrington and grab 75% share in TC even with zero contribution. As litigation is expensive for startups, Arrington decided to settle by giving him 10% share - which technically also established him as "co-founder".