I worked for a company that offered 5000 shares upon signing the employment agreement that vest at 20% a year. After I was employed for a year and 25 days the company decided to relocate and lay off some employees. There was no equity forfeiture clause in the contract in the event of termination. Furthermore the contract stated that in the event of a liquidity event all shares vest immediately. The company was purchased a few weeks ago. The CEO maintains that I am not entitled to
any shares because although the signed employment agreement was executed by both parties I didn't relocate and and get on payroll until a few days after the employment agreement was executed. I had code written and meetings that occurred during the time he claims I was not an employee.
Two things --
First, does the date on the employment contract mean that I was an effective employee on that date?
Secondly, does the fact that the 5000 shares were assigned to me with no details as to what happens upon termination mean that I still own those 5000 shares?
The liquidity event (acquisition) occurred and other employees were paid for their shares. I reached out to the CEO and he stated that I owned nothing.
My thoughts -- I definitely am entitled to 1000 shares. Also due to the ambiguous (non-existent) details of what happens to the 5000 shares upon termination I think I may be entitled to be paid for those as well.
What are HN's thoughts on this situation?
