legalI have an advisor in my startup that I would like to give 1% anti-diluted ownership. However, because the company hasn’t yet been incorporated, I can’t actually issue out any shares.
However, to make him feel secure about his ownership, he’s asking that I sign something that essentially would guarantee him the 1% ownership once the company were to be incorporated.
My question is, how would I go about drafting up something like this to sign and hand to him? I come from the engineering world and don’t have the “legalese” skills needed for writing something like this.
While I disagree with the “anti-diluted” part, just download a standard advisor agreement. For instance: http://fi.co/contents/fast. Definitely good enough for your needs. The fact that the company doesn’t exist yet is half-ok: put the project name (not Inc, since it’s not incorporated). If this goes south, a judge will figure out your intent pretty easily.
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