Long time Phoenix entrepreneurs started a new business venture and engaged DeAngelis Legal to assist with the preparation of a comprehensive operating agreement between the current owners and a phantom stock incentive plan for key employees. The operating agreement contained transfer restrictions, modified voting rights, buy-out provisions upon death, disability, bankruptcy and deadlock, a mechanism for determining the purchase price and a funding plan. The phantom stock plan and grant documents created a pool of funds upon the sale of the company through which employees could receive incentive compensation. The documents also provided for a vesting period for employees.
