zlacker

>>fnbr+(OP)
So part of their compensation for working is equity, and when they leave thay have to sign an additional agreement in order to keep their previously earned compensation? How is this legal? Mine as well tell them they have to give all their money back too.

What's the consideration for this contract?

>>Button+7J
> What's the consideration for this contract?

Consideration is almost meaningless as an obstacle here. They can give the other party a peppercorn, and that would be enough to count as consideration.

https://en.wikipedia.org/wiki/Peppercorn_(law)

There might be other legal challenges here, but 'consideration' is unlikely to be one of them. Unless OpenAI has idiots for lawyers.

>>eru+PL
Ok but peppercorn or not, what’s the consideration?

>>static+LU
Getting a certain amount (according to their vesting schedule) of stock options, which are worth a substantial amount of money and thus clearly is "good and valuable consideration".

>>Peteri+671
The original stock and vesting agreement that was part of their original compensation probably says that you have to be currently employed by OpenAI for the vesting schedule to apply. So in that case the consideration of this new agreement is that they get to keep their vesting schedule running even though they are no longer employees.

>>hmotte+ad1
That's the case in many common/similar agreements, but the OpenAI agreement is different because it's specifically clawing back already vested equity. In this case, I think the consideration would be the company allowing transfer of the shares / allowing participation in buyback events. Otherwise until the company goes public there's no way for the employees to cash out without consent of the company.