Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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welcome

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18h30 Welcome and Intro

18h45 Shareholder agreement (David)

19h05 Sweat equity, equity dilution (Matan)

19h30 Startup Legal and IP (Ramón)

19h50 1st steps to get going! (Javier)

20h15 Round Table

Agenda

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Housekeeping…

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Housekeeping…

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Why Legal matters

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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David Pena

CEO & Founder of PeopleiTrust

… on shareholders’ agreement

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Matan Ganani

CEO & Founder of Never Empty

… on shareholders agreement,

employee option tool, equity dilution

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Ramón Parra

Socio de Auren

Abogados y Asesores Fiscales

… on startup legal and IP

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Javier Bustillo

MD Bustillo Abogados

Business Lawyer

… 1st steps to get going!

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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18h30 Welcome and Intro

18h45 Shareholder agreement (David)

19h05 Sweat equity, equity dilution (Matan)

19h30 Startup Legal and IP (Ramón)

19h50 1st steps to get going! (Javier)

20h15 Round Table

Agenda

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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HOW TO DEAL WITHYOUR

SHAREHOLDERS AGREEMENT?

David Pena

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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david pena del río

https://es.linkedin.com/in/davidpenadelrio

CEO & founder

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TAKE

 A

LAWYER!!

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ABOGAAAAADOOO!!!

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OTHERWISE…

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8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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THE ARTICLES OF ASSOCIATION

&THE SHA

WHY A SHA?

WHEN A SHA?

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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“The Parties shall enter into agreements,

terms and conditions as they wish, aslong as such agreements, terms and

condit ions are not against the Law, the

morality or the public order” 

 ART. 1,255 SPANISH CIVIL CODE:

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5 ISSUES TO NEGOCIATE IN ANY SHA

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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INVESTMENT AGREEMENT

GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES

5 ISSUES TO NEGOCIATE IN ANY SHA

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INVESTMENT AGREEMENT

GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES

5 ISSUES TO NEGOCIATE IN ANY SHA

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INVESTMENT AGREEMENT

GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES

5 ISSUES TO NEGOCIATE IN ANY SHA

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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INVESTMENT AGREEMENT

GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES

5 ISSUES TO NEGOCIATE IN ANY SHA

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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INVESTMENT AGREEMENT

GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES

LOCKUP

CONFIDENTIALITY

NON COMPETITION

EXCLUSIVITY

SALARY SHORTAGES

5 ISSUES TO NEGOCIATE IN ANY SHA

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INVESTMENT AGREEMENT

GOVERNANCE OF THE COMPANY TRANSFER OF SHARES COMMITMENTS OF THE (ORIGINAL) SHAREHOLDERS CONFLICTS MANAGEMENT MECHANISM/CLAUSES

5 ISSUES TO NEGOCIATE IN ANY SHA

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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5 ISSUES TO FIGHT FOR

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5 ISSUES TO FIGHT FOR

NON-DILUTION AGREEMENT

SYNDICATION OF VOTES DRAG-ALONG AGREEMENT REFUSAL TO PREEMPTION RIGHTS EVENTS OF DEFAULT (BY DEFAULTING PARTNERS)

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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5 ISSUES TO RAGE A WAR

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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5 ISSUES TO RAGE A WAR

LIQUIDATION PREFERENCES BUYOUT COMMITMENTS (DERECHO DE RECOMPRA)

REDEMPTION RIGHTS (DERECHO DE RESCATE) COMPULSORY PREEMPTION RIGHTS ZERO SALARY

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AND ALWAYS REMEMBER…..

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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MANY THANKS!

david@peopleitrust.com

A d

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18h30 Welcome and Intro18h45 Shareholder agreement (David)

19h05 Sweat equity, equity dilution (Matan)

19h30 Startup Legal and IP (Ramón)

19h50 1st steps to get going! (Javier)

20h15 Round Table

Agenda

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Startup Legal

Matan Ganani

CEO & Co-Founder – Never EmptyThe Founder Institute

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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h i i (2 f d )

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The Equity Pie (2 founders)

Shareholders Equity Stake Stake Value

Founder A 100% 0Idea Stage

Shareholders Equity Stake Stake Value

Founder A 50% 0

Founder B 50% 0

ootstrappingStage

Shareholders Equity Stake Stake Value

Founder A 25.85% $387k

Founder B 25.85% $387k

Investors 33.3% $500k

EmployeeO tions 15% $225K

SeedRound

$500k@

1.5m post

Th E i Pi (2 f d )

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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The Equity Pie (2 founders)Shareholders Equity Stake Stake Value

Founder A 20.67% $1.03mFounder B 20.67% $1.03m

Investors 26.66% $1.33m

VC 20% $1m

Employee Options 12% $600k

Series A1m@

5m post

Shareholders Equity Stake Stake Value

Founder A 16.54% $8.27m

Founder B 16.54% $8.27mInvestors 21.33% $10.66m

VC 16% $8m

New VC 20% $10m

Employee Options 9.6% $4.8m

Series B10m@

50m post

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62% of startups

fail due to

founding

teamconflict

Who getswhat

My idea is

better

Who gets to

decide

Who cleans

up

I work harder

than you

We need to

strategize

more

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The Founders Agreement

Goal: Never rock the boat

Method: Iron out all the dirty details while the love

is still in the air 

FOUNDERS AGREEMENT - KEY POINTS

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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FOUNDERS AGREEMENT KEY POINTS

Roles & responsibilities

Equity Split

Vesting:

• 2-3 years

• 4-6 cliffs

• Forced sale/transfer to other founder/s in case of departure

from company

• Acceleration in case of M&A transaction

IP assignment to company

Founder withdrawal/removal

SHAREHOLDERS AGREEMENT - KEY POINTS

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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SHAREHOLDERS AGREEMENT KEY POINTS

Board of Directors

Founders Employment

Tag Along (minority protection) / Drag Along (majority protection)

Right of first refusal

Lock up period

Inspection rights

Dispute resolution

Founder withdrawal/removal

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QUESTIONS?

matan.ganani@people-sports.com

@mrgananimrganani

www.neveremptytickets.com

Agenda

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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18h30 Welcome and Intro18h45 Shareholder agreement (David)

19h05 Sweat equity, equity dilution (Matan)

19h30 Startup Legal and IP (Ramón)19h50 1st steps to get going! (Javier)

20h15 Round Table

Agenda

Agenda

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18h30 Welcome and Intro18h45 Shareholder agreement (David)

19h05 Sweat equity, equity dilution (Matan)

19h30 Startup Legal and IP (Ramón)19h50 1st steps to get going! (Javier)

20h15 Round Table

Agenda

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Javier Bustillo

MD Bustillo Abogados

Business Lawyer

… 1st steps to get going!

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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• Limited Liability Company• S.L. or S.A in Spain

•Ltd. in UK/USA

• GmbH in Germany

• SL de CV in Mexico

• Owners are legaly responsable for its debts only to the

extent of the amount of capital invested.

• Scope of business• Share capital (3.000€ SL – 60.000€ SA)

• Class of Shares – Ordinary, preference

• Shareholders

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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• Proposed Company Name• Company name is not a trademark

•  Articles of Association

• Shareholders Agreement

•

Management (Administrador – Consejo de Admin)• Executive roles

• Sole Director 

• Board of directors (founders/invertors/advisors)

• Chairman – Consejero Delegado – Member of the board.

• CEO – Director General

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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•  Annual Shareholder meeting

• Shareholder Agreement• Unanimous shareholder agreement

• Clauses

• Sweat equity

• Share vesting

• Good and Bad leavers

• Restrictions on transfer of shares

•  Anti -di lut ion

• Drag along and tag along rights

• Right to appoint directors

• Right to restrict activities

• Liquidation preferences

• Debt and equity capital

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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• Legal Needs on every phases

• Pre-startup

• Startup

•

Growth

8/17/2019 Madrid April 28th Legal and IP: J. Bustillo M. Ganani & D. Pena

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Q&A

Javier BustilloPartner 

@javierbustillo+34 636 97 28 92

Agenda

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18h30 Welcome and Intro18h45 Shareholder agreement (David)

19h05 Sweat equity, equity dilution (Matan)

19h30 Startup Legal and IP (Ramón)19h50 1st steps to get going! (Javier)

20h15 Round Table

Agenda