Just like in life, founders' paths may grow apart for different reasons. It's one thing when the "divorce" is peaceful, but sometimes things can become very complicated, and in a blink of an eye you're fighting over the "custody" rights with someone who was previously on your side. On September 16th, 2020 at 10:00 am PDT Nicole Hatcher, Bret Waters, Brian McAllister, and Louis Lehot shared war stories and best practices to make founder "divorce" less painful. #askasiliconvalleylawyer Louis Lehot is a corporate, securities and M&A lawyer in the San Francisco Bay Area. He helps form, fund, buy and sell businesses. Watch Complete Webcast here :- https://youtu.be/GmAgilHM_bE Feel free to connect with Louis: Facebook: https://www.facebook.com/lehotlouis LinkedIn: https://www.linkedin.com/in/louislehot/ Twitter: https://twitter.com/lehotlouis Instagram: https://www.instagram.com/lehotlouis

1. FOUNDER EQUITY101:
What Happens When
Things Change
September 16th, 2020

2. 2
© 2020 Louis Lehot and L2 Counsel, P.C.
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3. PANELISTS
Louis Lehot
Founder
Brian McAllister
Founder
Bret Waters
4thly
Nicole Hatcher
Founding Partner

4. AGENDA
1. Recap From Last Week
2. Fact Patterns and Power Dynamics
3. Founder Break-ups
4. Adjusting Over Time
5. M&A
6. What Happens Next?
7. Q&A

5. 1. RECAP FROM
LAST WEEK
• Founder equity splits
• Types of startup equity
• Who gets what
• Vesting

6. 2. FACT PATTERNS
AND POWER
DYNAMICS
• Co-founders join / leave
• New key employees
• Venture capital investors
fund and join the board
• Co-founder disagreements,
personality disconnect and
dysfunction
• M&A
• Running on fumes

7. 3. FOUNDER
BREAK-UPS,
DEPARTURES
• Getting back equity: vested
vs unvested
• Equity repurchases
• New issuances /
recapitalizions
• Severance agreements
• Board seats
• Voting and information rights
• Exit rights

8. 4. ADJUSTING
OVER TIME
• Founders’ evolving roles
and bringing on the
professional C-suite
• New stock grants
• Salary, bonus,
commission
• Downside protections
• The role of founder stock
or super-voting stock
• M&A carve-out plans

9. 5. M&A
• Strategic and financial
acquirors
• Minority recaps
• Carve-out plans
• New retention plans
• Restructurings

10. 6. WHAT
HAPPENS NEXT?
• Getting along in the
board room
• Helping raise capital
• Helping sell the business
• Market messaging
• Evangelizing the mission

11. Bret Waters
CEO
www.4thly.com
bret@4thly.com
Q&A
For More Information:
Louis Lehot
Founder
l2counsel.com
louis.lehot@l2counsel.com
Brian McAllister
Founder
mblcounsel.com
brian@mblcounsel.com
Nicole Hatcher
Founding Partner
allenhatcher.com
nicole@allenhatcher.com