What documents are included in the Equity Incentive Compensation package?

Standard equity incentive plan that is designed for a private company typically provides for grants of the following types of awards:

  • Incentive stock options.
  • Non-qualified stock options.
  • Restricted stock.
  • Restricted stock units.

Phantom stock and other types of equity compensation discussed in other articles on this site may or may not be included depending on the needs of the company. Business owners should discuss pros and cons of each type of compensation with an experienced business attorney before making decision about the structure of the plan.

The standard equity compensation package includes the following documents:

  • Summary of Key Provisions
  •         Equity Incentive Plan  
  •         Incentive Stock Option Agreement
  • Non-qualified Stock Option Agreement (employees & consultants)
  • Restricted Stock Award Agreement
  • Code Section 83(b) Election: Restricted Stock
  • Restricted Stock Unit Agreement
  • Stockholder Approval of the Plan
  • Board Adoption of the Plan
  • Board Approval of Option Grant
  • Board Approval of Restricted Stock Award 
  • 25102o - Notice of Transaction if business is in CA

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