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Prepared for The Co As of March 2015 STRUCTURING EMPLOYEE RELATIONSHIPS IN GROWTH STARTUPS

Structuring employee relationships in growth startups

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Prepared for The Co

As of March 2015

STRUCTURING

EMPLOYEE RELATIONSHIPS

IN GROWTH STARTUPS

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THANKS TO OUR VENUE

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ABOUT THE SPEAKERS

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ABOUT THE SPEAKERS

INTRODUCTION

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Most expensive Most sustainable Least scalable

Least expensive Least sustainable Most scalable

COST – SUSTAINABILITY – SCALIBILITY SCALE

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GOVERNANCE

FOUNDERS AS

EMPLOYEES

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A vesting curve

FOUNDERS AS EMPLOYEES

Salary

Confidential information

Intellectual property

Notice Key performance

indicators

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Implications of the vesting curve

Non competes Non solicitation

Gardening leave Non disclosure

agreement Exit agreement

Directorship

FOUNDERS’ EXIT

HIRING OTHERS /

EMPLOYMENT

DOCUMENTS

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A CUSTOMIZED WRITTEN AGREEMENT IS ESSENTIAL

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EMPLOYMENT AGREEMENT

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CONSULTANCY AGREEMENT

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EMPLOYEE HANDBOOK

Common terms

Broad principles / Policy objectives

Employment practices

Employee issues

Benefits

Termination

Employee programs

Reasons for an employee handbook

EMPLOYEE

STOCK OPTIONS

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EMPLOYEE STOCK OPTIONS

Concept of ‘share options’

Structure of a scheme

Tax implications

FOUNDERS’

TAXES

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FOUNDERS BASED IN SINGAPOR

Salary

ESOPs

Directors fees

Consultancy fees

Dividends

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FOUNDERS BASED OUTSIDE SINGAPORE

Permanent Establishment (PE)

Personal tax (share sale + remuneration)

WORK

PASSES

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OVERVIEW OF WORK PASSES

Employment Pass

Personalized

Employment Pass

Letter of

Consent

EntrePass

CASE STUDY

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LET’S TALK

[email protected]

@futureb00ks

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TERMS OF USE

Restrictions on use of contents

1. The contents of this presentation can be reproduced only with the prior permission of FUTUREBOOKS SINGAPORE PTE. LTD. No alterations, additions or modifications of the contents can be made. Due acknowledgement must be given to “FUTUREBOOKS SINGAPORE PTE. LTD.” and citing the sources for the relevant data extracted.

2. Any request to reproduce the contents from this presentation should be addressed to: [email protected].

Disclaimer of warranties and liability

1. The contents of this presentation are provided on an “as is” basis without warranties of any kind. FUTUREBOOKS SINGAPORE PTE. LTD. does not warrant and hereby disclaims any warranty as to the accuracy, correctness, reliability, timeliness, non-infringement, title, merchantability or fitness for any particular purpose of the contents of this presentation.

2. FUTUREBOOKS SINGAPORE PTE. LTD. shall also not be liable for any damage or loss of any kind caused as a result (direct or indirect) of the use of the presentation.