Terminated from Consulting Agreement (Was given Stock)

[JC777]

Jurisdiction

California

Hi,

For about the last year I have been working with a startup company. Prior to me signing a Consulting Agreement, I was doing work for them but not getting paid. I finally signed a contract to come on as a 'Consultant.' Over the last year, I have done a lot more than what was laid out in the contract, and have virtually acted as though I am a full-time employee. Just about a month ago I was given 7,000 shares of stock (already vested...back dated). Now, the company are telling me that they are extremely low on funds and chances are I will be let go at the end of this month. As a stock holder, am I entitled to some type of severance or payout? Also, if I wanted to, could I sell these shares back to the company? Do I have more options? Looking for some advice.

Thank you

 

[army judge]

All shares of stock aren't created equally, and some shares of stock have no value.

You can normally sell vested shares to anyone willing to buy those shares. The price is normally determined by the market price (NYSE OTC NASDAQ).

A severance package, or a golden parachute is described in your employment contract. Absent such a contract, anything the company gives you would simply be charity.