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Supplement
| HBS Case Collection
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2012
(Revised from original 2008 version)
UpDown: Confidential Instructions for MICHAEL
by
Noam Wasserman and Deepak Malhotra
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Abstract
Michael Reich is having severe doubts about how he split the equity with his co-founders two months ago, when they completed a one-page "November Agreement." Since then, Michael has found an angel investor and has worked non-stop on the business, while one co-founder was off enjoying the winter break with his family and the other worked on lucrative consulting contracts for other companies. Michael has just sent his co-founders a proposal that would re-allocate the equity within their founding team, and all three founders are getting ready to reopen a negotiation they thought had been finalized.
Keywords: Negotiation Participants;
Agreements and Arrangements;
Business Startups;
Ownership Stake;