Not sure if this the right place to ask but here it goes:
We (myself and 2 founders) found our startup about a year ago. Then we brought on an employee to work part-time and had him sign a contract. This is before we were incorporated. The contract said something like this:
- 2% equity which will vest over two year
- Employee must put 15 hours per week minimum
- If he leaves or gets fired before 90 days then contract is voided
It worked out OK for first few months but then he (part-time employee) got busy with work, so he didn't participate much. Then he took a month long vacation. Then we had some family obligations and didn't work on he idea for few months. We haven't heard from him since June of this year.
Now, we are back on it full speed and we have incorporated the business. Here are my questions:
He wasn't as good as we expected, how do we end or void his contract
Since we said contract will void if he leaves or gets fired before 90 days. The 90 days have passed and we didn't fire him and he never said he is leaving. Are we still obligated to give him the 2% equity.
What is the best way to go about this and get the contract without giving up any equity.
Thanks in advance.