[{"data":1,"prerenderedAt":510},["ShallowReactive",2],{"document-equity-incentive-plan-D13224":3},{"document":4,"label":23,"preview":11,"thumb":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":37,"customDescModule":179,"customdescription":6,"mdFm":180,"mdProseHtml":509},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"Equity Incentive Plan Your business slogan here. Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com Table of Contents Letter from the CEO 3 Executive Summary 4 1. Purpose of the Equity Incentive Plan 5 1.1 Purpose 5 1.2 Why Do We Need a Plan? 5 2. Administration of the Plan 6 2.1 General 6 2.2 Committee 6 2.3 Powers of the Administrator 6 2.4 Effects of Administrator's Decision 7 2.5 Indemnification 7 3.Eligibility 8 4. Grant of Options 9 5. Stock Subject to Plan 10 6. Aggregate Fair Market Value 11 7. Exercise of Option 12 8. Option Price 13 9. Option Non-Transferable 14 9.1 Other Option Terms 14 10. Amendment and Termination of Plan 15 Letter from the CEO Every company needs to show value and appreciation for its employees. For this reason, equity-based incentive compensation becomes highly imperative. The core purpose of the Equity Incentive Plan is to appropriately attract, retain and incentivize employees. At [COMPANY NAME], rewarding employees, directors, contractors, and partners is a priority. It's also important for us in granting them necessary shares or units in the Equity Incentive Plan. With equity Awards, the Company can successfully align its interests with that of the recipient. Based on history, equity plans were limited to the enterprise market and the professional management of significant corporations. Equity plans were originally directed to the issuance of options. However, these plans have expanded to other sectors, including privately owned businesses. With our [COMPANY NAME] Equity Incentive Plan, we can rightfully attract the best available personnel for positions with major responsibilities. Options granted under the Equity Incentive Plan may include Incentive Stock Options or No Statutory Stock Options, depending on the Administrator at the period of granting. There's also a possibility of granting Restricted Stock under the Plan. In the following pages, you will discover how [COMPANY NAME] plans to grant equity-based incentives to employees. It's in everyone's interest that they stay aware of the Plan in order to be prepared. Enjoy your reading and thank you for your participation. [CEO NAME] Executive Summary [COMPANY NAME] has developed an Equity Incentive Plan to compensate employees and other important individuals in the organization. This could include directors, consultants, partners, and contractors. [Write more content under the executive summary that provides a brief, but descriptive breakdown of the key components of the Equity Incentive Plan. In order to ensure that this summary is clear and comprehensive, it's advisable to write the content after the other sections of the document have been written. A first-time reader should be able to read the executive summary by itself and comprehend what the Equity Incentive Plan involves. Ensure that the summary stands alone and doesn't directly refer to any part of the Plan. The executive summary should motivate readers to continue reading the rest of the document. It should be one to three pages in length.] 1. Purpose of the Equity Incentive Plan 1.1 Purpose The purpose of this Equity Incentive Plan is to help strengthen [COMPANY NAME] by providing adequate Incentive Stock Options to key personnel, officers, employees, directors, consultants, advisors, contractors, and other individuals. These individuals are usually expected to provide major services to [COMPANY NAME] and its subsidiaries, including officers and directors of the participating companies. This Equity Incentive Plan also functions to encourage a proprietary interest in the Company. Hence, it aligns the significant interests of service providers in [COMPANY NAME] with that of significant stockholders in [COMPANY NAME]. With this Plan, there can be Awards of equity-based incentives to major personnel, employees, officers, directors, and other providers of services to the Company. These Awards can either be through a participating company or directly. [ADD ANY ADDITIONAL CONTENT HERE] 1.2 Why Do We Need a Plan? An Equity Incentive Plan is an important component in an employee's overall compensation package that helps employees own a portion of the Company they work for. These equity incentives can either be shares or incentives. We need a Plan for: Promoting the Company's long-term success Attracting and retaining talent Improving a compensation package without reducing cash flow [ADD ANY ADDITIONAL CONTENT HERE] 2. Administration of the Plan 2.1 General This Plan will be appropriately administered by the Board or Committee, or a combination thereof, as determined by the Board of [COMPANY NAME]",null,"Equity Incentive Plan","15",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/equity-incentive-plan-D13224.png","https://templates.business-in-a-box.com/imgs/250px/13224.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13224.xml",{"title":15,"description":6},"equity incentive plan",[17,20],{"label":18,"url":19},"Finance & Accounting","/templates/finance-accounting/",{"label":21,"url":22},"Raising Capital","/templates/raising-capital/","Equity Incentive Plan Template","https://templates.business-in-a-box.com/imgs/400px/13224.png",[26,17,20],{"label":27,"url":28},"Templates","/templates/",[30,31,34],{"label":27,"url":28},{"label":32,"url":33},"Human Resources","/templates/human-resources/",{"label":35,"url":36},"Compensation & Payroll","/templates/compensation-and-payroll/",[38,42,46,50,54,58,62,66,70,74,78,82,86,105,120,135,150,163],{"label":39,"url":40,"thumb":41,"extension":10},"Equity Participation Plan","/template/equity-participation-plan-D13012","https://templates.business-in-a-box.com/imgs/250px/13012.png",{"label":43,"url":44,"thumb":45,"extension":10},"Equity Accumulation Plan","/template/equity-accumulation-plan-D13223","https://templates.business-in-a-box.com/imgs/250px/13223.png",{"label":47,"url":48,"thumb":49,"extension":10},"Sales Commission and Incentive Policy","/template/sales-commission-and-incentive-policy-D13771","https://templates.business-in-a-box.com/imgs/250px/13771.png",{"label":51,"url":52,"thumb":53,"extension":10},"Incentive Agreement","/template/incentive-agreement-D13226","https://templates.business-in-a-box.com/imgs/250px/13226.png",{"label":55,"url":56,"thumb":57,"extension":10},"Diversity Equity and Inclusion Policy","/template/diversity-equity-and-inclusion-policy-D13330","https://templates.business-in-a-box.com/imgs/250px/13330.png",{"label":59,"url":60,"thumb":61,"extension":10},"Customer Incentive Program Announcement","/template/customer-incentive-program-announcement-D1387","https://templates.business-in-a-box.com/imgs/250px/1387.png",{"label":63,"url":64,"thumb":65,"extension":10},"Equity Distribution Agreement","/template/equity-distribution-agreement-D13266","https://templates.business-in-a-box.com/imgs/250px/13266.png",{"label":67,"url":68,"thumb":69,"extension":10},"Shared Equity Agreement","/template/shared-equity-agreement-D12875","https://templates.business-in-a-box.com/imgs/250px/12875.png",{"label":71,"url":72,"thumb":73,"extension":10},"Phantom Equity Agreement","/template/phantom-equity-agreement-D14030","https://templates.business-in-a-box.com/imgs/250px/14030.png",{"label":75,"url":76,"thumb":77,"extension":10},"Letter of Request for an Equity Investment","/template/letter-of-request-for-an-equity-investment-D471","https://templates.business-in-a-box.com/imgs/250px/471.png",{"label":79,"url":80,"thumb":81,"extension":10},"Simple Agreement For Future Equity Safe","/template/simple-agreement-for-future-equity-safe-D13395","https://templates.business-in-a-box.com/imgs/250px/13395.png",{"label":83,"url":84,"thumb":85,"extension":10},"Security Response Plan Policy","/template/security-response-plan-policy-D12686","https://templates.business-in-a-box.com/imgs/250px/12686.png",{"description":87,"descriptionCustom":6,"label":88,"pages":89,"size":9,"extension":10,"preview":90,"thumb":91,"svgFrame":92,"seoMetadata":93,"parents":95,"keywords":94,"url":104},"EMPLOYMENT AGREEMENT - AT WILL EMPLOYEE This Employment Agreement for \"At Will\" Employee (the \"Agreement\") is made and effective this [DATE], BETWEEN: [EMPLOYEE NAME] (the \"Employee\"), an individual with his main address at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Corporation\"), an entity organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Corporation hereby employs the Employee and the Employee hereby agrees to perform services as an employee of the Corporation, on an \"at will\" basis, upon the following terms and conditions: APPOINTMENT The Employee is hereby employed by the Corporation to render such services and to perform such tasks as may be assigned by the Corporation. The Corporation may, in its sole discretion, increase or reduce the duties, or modify the title and job description, of the Employee from time to time, and any such increase, reduction or modification shall not be deemed a termination of this Agreement. ACCEPTANCE OF EMPLOYMENT Employee accepts employment with the Corporation upon the terms set forth above and agrees to devote all Employee's time, energy and ability to the interests of the Corporation, and to perform Employee's duties in an efficient, trustworthy and business-like manner. DEVOTION OF TIME TO EMPLOYMENT The Employee shall devote the Employee's best efforts and substantially all of the Employee's working time to performing the duties on behalf of the Corporation. The Employee shall provide services during the hours that are scheduled by the Corporation management. The Employee shall be prompt in reporting to work at the assigned time. NO CONFLICT OF INTEREST Employee shall not engage in any other business while employed by the Corporation. Employee shall not engage in any activity that conflicts with the Employees duties to the Corporation. Employee shall not provide any service or lend any aid or assistance to any party that competes with the services offered by the Corporation. Employee shall not provide any services to clients or prospective clients of the Corporation outside of the provision of services for the Corporation, whether such services are provided with or without compensation or remuneration. CORPORATION PROPERTY Employee acknowledges and agrees that while employed by the Corporation the Employee may be provided with use of computer equipment and other property of the Corporation. The use and possession of the such items shall be subject to any policies, requirements or restrictions established by the Corporation. Such items may only be used in performance of the Employee's duties for the corporation. On request of the Corporation, the Employee shall immediately deliver any such items to the Corporation. Upon termination of employment, Employee shall have the affirmative duty to return any such item to the Corporation whether a request is made or not. The obligation to return Corporation property shall extend and include any and all work product, client property, proprietary rights, intangible property, and all other property of the corporation regardless of the form or medium. COMPENSATION The Corporation shall pay the Employee such hourly compensation as determined by the Corporation. Payment shall be at the same time as the Corporations usual payroll to other employees. BONUS & BENEFITS Payment of any bonuses shall be at the complete discretion of the Corporation. No guarantee or representation that any bonuses will be paid has been made to the Employee. Standard benefits that are provided to other non-management employees shall be offered to the Employee, subject to the Corporation's policies and the terms and conditions of such benefits. WITHHOLDING All sums payable to Employee under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. QUALIFICATIONS OF EMPLOYEE The employee shall satisfy all of the qualification that are established by the Corporation. TERM OF AGREEMENT There shall be no guaranteed term of employment. Employer acknowledges and agrees that Employee shall be an \"At Will\" Employee and that Employee's employment may be terminated at any time by the Corporation, with or without cause. FEES FROM EMPLOYEE'S WORK The Corporation shall have exclusive authority to determine the fees, or a procedure for establishing the fees, to be charged to clients by the Corporation for services that are provided by the Employee. All sums paid to the Employee or the Corporation in the way of fees, in cash or in kind, or otherwise for services of the Employee, shall, except as otherwise specifically agreed by the Corporation, be and remain the property of the Corporation and shall be included in the Corporation's name in such checking account or accounts as the Corporation may from time to time designate. CLIENTS AND CLIENT RECORDS The Corporation shall have the authority to determine who will be accepted as clients of the Corporation, and the Employee recognizes that such clients accepted are clients of the Corporation and not the Employee. All client records and files of any type concerning clients of the Corporation shall belong to and remain the property of the Corporation, notwithstanding the subsequent termination of the employment. POLICIES AND PROCEDURES The Corporation shall have the authority to establish from time to time the policies and procedures to be followed by the Employee in performing services for the Corporation. This may include, but is not necessarily limited to, employment policies, computer use policies, Internet access policies, email policies, and all other policies, procedures, directives, and mandates established by the Corporation, whether or not in written form or formally adopted. Employee shall abide by the provisions of any contract entered into by the Corporation under which the Employee provides services. Employee shall comply with the terms and conditions of any and all contracts entered by the Corporation. TERMINATION Employee acknowledges and agrees that Employee is an \"at will\" employee of the Corporation. As such, no term of employment is created hereby and employee may be terminated at any time in the sole discretion of the Corporation, whether there exists any cause for termination or not. CREATIONS AND INVENTIONS Employee acknowledges and agrees that any and all work product of the Employee that is conceived or created during the Employee's employment with the Corporation is the exclusive property of the Corporation. This shall include any and all copyrights, trade secrets, confidential information, patents, trademarks, trade dress, ideas, concepts, plans, business plans, business concepts, techniques, inventions, drawings, artwork, logos, graphics, web pages, databases, software, programs, CGI's, plug ins, applications, brochures, inventions, marketing plans and concepts, and all other ideas and work product of the Employee. The Employee acknowledges and agrees that all creations shall be \"works made for hire\" as defined in the [ACT OR CODE]. Notwithstanding the fact that this material may be considered to be a work made for hire, Employee agrees, during Employee's employment and thereafter, which covenant shall survive any termination of the employment relationship, to execute any and all documents requested by the Corporation to confirm the Corporation's ownership and control of all such material, including but not limited to assignments of copyright, confirmations of work for hire status, waivers of proprietary rights, copyright application, and any other documents requested by Corporation. RESTRICTIVE COVENANTS","Employment Agreement_At Will Employee","7","https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_at-will-employee-D541.png","https://templates.business-in-a-box.com/imgs/250px/541.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#541.xml",{"title":94,"description":6},"employment agreement_at will employee",[96,98,101],{"label":32,"url":97},"human-resources",{"label":99,"url":100},"Hire an Employee","hire-employee",{"label":102,"url":103},"Legal Agreements","business-legal-agreements","/template/employment-agreement_at-will-employee-D541",{"description":106,"descriptionCustom":6,"label":107,"pages":108,"size":109,"extension":10,"preview":110,"thumb":111,"svgFrame":112,"seoMetadata":113,"parents":114,"keywords":118,"url":119},"EMPLOYMENT AGREEMENT FOR AN EXECUTIVE This Employment Agreement for an Executive (the \"Agreement\") is made and effective this [Date], BETWEEN: [EXECUTIVE NAME] (the \"Executive\"), an individual with his main address at: AND: [COMPANY NAME] (the \"Company\"), an entity organized and existing under the laws of the [STATE/PROVINCE], with its head office located at: Recitals In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Company hereby employs the Executive and the Executive hereby agrees to perform services as an Executive of the Company, upon the following terms and conditions: TERM The Company hereby employs Executive to serve as [position] and to serve in such additional or different position or positions as the Company may determine in its sole discretion. The term of employment shall be for a period of [NUMBER] years (\"Employment Period\") to commence on [DATE], unless earlier terminated as set forth herein. The effective date of this Agreement shall be the date first set forth above, and it shall continue in effect until the earlier of: The effective date of any subsequent employment agreement between the Company and the Executive; The effective date of any termination of employment as provided elsewhere herein; or [NUMBER] year(s) from the effective date hereof, provided, that this Employment Agreement shall automatically renew for successive periods of [NUMBER] years each unless either party gives written notice to other that it does not wish to automatically renew this Agreement, which written notice must be received by the other party no less than [NUMBER] days and no more than [NUMBER] days prior to the expiration of the applicable term. Duties and Responsibilities Executive will be reporting to [IDENTIFY]. Within the limitations established by the By-laws of the Company, the Executive shall have each and all of the duties and responsibilities of that position and such other or different duties on behalf of the Company, as may be assigned from time to time by [identify what person or body may assign additional responsibilities]. Location The initial principal location at which Executive shall perform services for the Company shall be [location]. Acceptance of Employment Executive accepts employment with the Company upon the terms set forth above and agrees to devote all Executive's time, energy and ability to the interests of the Company, and to perform Executive's duties in an efficient, trustworthy and business-like manner. Devotion of Time to Employment The Executive shall devote the Executive's best efforts and substantially all of the Executive's working time to performing the duties on behalf of the Company. The Executive shall provide services during the normal business hours of the Company as determined by the Company. Reasonable amounts of time may be allotted to personal or outside business, charitable and professional activities and shall not constitute a violation of this Agreement provided such activities do not materially interfere with the services required to be rendered hereunder. QUALIFICATIONS The Executive shall, as a condition of this Agreement, satisfy all of the qualification that are reasonably and in good faith established by the Board of Directors. Compensation Base Salary Executive shall be paid a base salary (\"Base Salary\") at the annual rate of [salary], payable in bi-weekly installments consistent with Company's payroll practices. The annual Base Salary shall be reviewed on or before [DATE] of each year, unless Executive's employment hereunder shall have been terminated earlier pursuant to this Agreement, starting on [agreed upon date] by the Board of Directors of the Company to determine if such Base Salary should be increased for the following year in recognition of services to the Company. In consideration of the services under this Agreement, Executive shall be paid the aggregate of basic compensation, bonus and benefits as hereinafter set forth. Payment Payment of all compensation to Executive hereunder shall be made in accordance with the relevant Company policies in effect from time to time, including normal payroll practices. Bonus From time to time, the Company may pay to Executive a bonus out of net revenues of the Company. Payment of any bonus compensation shall be at the sole discretion of the Board of Directors or the Executive committee of the Board of Directors and the Executive shall have no entitlement to such amount absent a decision by the Company as aforesaid to make such bonus compensation. Executive shall also be entitled to a bonus determined as follows: [DESCRIBE] Benefits The Company shall provide Executive with such benefits as are provided to other senior management Of the Company. Benefits shall include at a minimum (i) paid vacation of [NUMBER] days per year, at such times as approved by the Board of Directors, (ii) health insurance coverage under the same terms as offered to other Executives of the Company, (iii) retirement and profit sharing programs as offered to other Executives of the Company, (iv) paid holidays as per the Company's policies, and (v) such other benefits and perquisites as are approved by the Board of Directors. The Company has the right to modify conditions of participation, terminate any benefit, or change insurance plans and other providers of such benefits in its sole discretion. The Executive shall be reimbursed for out of pocket expenses that are pre-approved by the Company, subject to the Company's policies and procedures therefore, and only for such items that are a necessary and integral part of the Executive's job functions. NonDeductible Compensation In the event a deduction shall be disallowed by the Internal Revenue Service or a court of competent jurisdiction for federal income tax purposes for all or any part of the payment made to Executive by the Company or any other shareholder or Executive of the Company, shall be required by the Internal Revenue Service to pay a deficiency on account of such disallowance, then Executive shall repay to the Company or such other individual required to make such payment, an amount equal to the tax imposed on the disallowed portion of such payment, plus any and all interest and penalties paid with respect thereto. The Company or other party required to make payment shall not be required to defend any proposed disallowance or other action by the Internal Revenue Service or any other state, federal, or local taxing authorities. Withholding All sums payable to Executive under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. Other Employment Benefits Business Expenses Upon submission of itemized expense statements in the manner specified by the Company, Executive shall be entitled to reimbursement for reasonable travel and other reasonable business expenses duly incurred by Executive in the performance of his duties under this Agreement. Benefit Plans Executive shall be entitled to participate in the Company's medical and dental plans, life and disability insurance plans and retirement plans pursuant to their terms and conditions. Executive shall be entitled to participate in any other benefit plan offered by the Company to its Executives during the term of this Agreement (other than stock option or stock incentive plans, which are governed by Section 3(d) below). Nothing in this Agreement shall preclude the Company or any affiliate of the Company from terminating or amending any Executive benefit plan or program from time to time. Vacation Executive shall be entitled to [agreed upon number of time] weeks of vacation each year of full employment, exclusive of legal holidays, as long as the scheduling of Executive's vacation does not interfere with the Company's normal business operations.","Employment Agreement Executive","12",97,"https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_executive-D543.png","https://templates.business-in-a-box.com/imgs/250px/543.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#543.xml",{"title":6,"description":6},[115,116,117],{"label":32,"url":97},{"label":99,"url":100},{"label":102,"url":103},"employment agreement executive","/template/employment-agreement-executive-D543",{"description":121,"descriptionCustom":6,"label":122,"pages":123,"size":124,"extension":10,"preview":125,"thumb":126,"svgFrame":127,"seoMetadata":128,"parents":129,"keywords":133,"url":134},"INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (\"Agreement\") is made and effective [Date], BETWEEN: [INDEPENDENT CONTRACTOR NAME] (the \"Independent Contractor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS Independent Contractor is engaged in providing [Describe] business services, its Employer Tax I.D. Number is [Insert], and its Business License Number is [insert]. Independent Contractor has complied with all Federal, State, and local laws regarding business permits, sales permits, licenses, reporting requirements, tax withholding requirements, and other legal requirements of any kind that may be required to carry out said business and the Scope of Work which is to be performed as an Independent Contractor pursuant to this Agreement. Independent Contractor is or remains open to conducting similar tasks or activities for clients other than the Company and holds themselves out to the public to be a separate business entity. Company desires to engage and contract for the services of the Independent Contractor to perform certain tasks as set forth below. Independent Contractor desires to enter into this Agreement and perform as an independent contractor for the company and is willing to do so on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and conditions contained in this Agreement, the Parties agree as follows: TERMS This Agreement shall be effective commencing [Date], and shall continue until terminated at the completion of the Scope of Work which shall occur no later than [Date] or by either party as otherwise provided herein. STATUS OF INDEPENDENT CONTRACTOR This Agreement does not constitute a hiring by either party. It is the parties intentions that Independent Contractor shall have an independent contractor status and not be an employee for any purposes, including, but not limited to, [laws]. Independent Contractor shall retain sole and absolute discretion in the manner and means of carrying out their activities and responsibilities under this Agreement. This Agreement shall not be considered or construed to be a partnership or joint venture, and the Company shall not be liable for any obligations incurred by Independent Contractor unless specifically authorized in writing. Independent Contractor shall not act as an agent of the Company, ostensibly or otherwise, nor bind the Company in any manner, unless specifically authorized to do so in writing. TASKS, DUTIES, AND SCOPE OF WORK Independent Contractor agrees to devote as much time, attention, and energy as necessary to complete or achieve the following: [Describe]. The above to be referred to in this Agreement as the \"Scope of Work\". It is expected that the Scope of Work will completed by [Date]. Independent Contractor shall additionally perform any and all tasks and duties associated with the Scope of Work set forth above, including but not limited to, work being performed already or related change orders. Independent Contractor shall not be entitled to engage in any activities which are not expressly set forth by this Agreement. The books and records related to the Scope of Work set forth in this Agreement shall be maintained by the Independent Contractor at the Independent Contractor's principal place of business and open to inspection by Company during regular working hours. Documents to which Company will be entitled to inspect include, but are not limited to, any and all contract documents, change orders/purchase orders and work authorized by Independent Contractor or Company on existing or potential projects related to this Agreement. Independent Contractor shall be responsible to the management and directors of Company, but Independent Contractor will not be required to follow or establish a regular or daily work schedule. Supply all necessary equipment, materials and supplies. Independent Contractor will not rely on the equipment or offices of Company for completion of tasks and duties set forth pursuant to this Agreement. Any advice given Independent Contractors regarding the scope of work shall be considered a suggestion only, not an instruction. Company retains the right to inspect, stop, or alter the work of Independent Contractor to assure its conformity with this Agreement. ASSURANCE OF SERVICES Independent Contractor will assure that the following individuals (the \"Key Employees\") will be available to perform, and will perform, the Services hereunder until they are completed (identify by title and name as applicable): [Name of Key Employee, Title] [Name of Key Employee, Title] The Key Employees may be changed only with the prior written approval of the Company, which approval shall not be unreasonably withheld. COMPENSATION Independent Contractor shall be entitled to compensation for performing those tasks and duties related to the Scope of Work as follows: [Describe] Such compensation shall become due and payable to Independent Contractor in the following time, place, and manner: [Describe] NOTICE CONCERNING WITHHOLDING OF TAXES Independent Contractor recognizes and understands that it will receive a [specify tax] statement and related tax statements, and will be required to file corporate and/or individual tax returns and to pay taxes in accordance with all provisions of applicable Federal and State law. Independent Contractor hereby promises and agrees to indemnify the Company for any damages or expenses, including attorney's fees, and legal expenses, incurred by the Company as a result of independent contractor's failure to make such required payments. AGREEMENT TO WAIVE RIGHTS TO BENEFITS Independent Contractor hereby waives and foregoes the right to receive any benefits given by Company to its regular employees, including, but not limited to, health benefits, vacation and sick leave benefits, profit sharing plans, etc. This waiver is applicable to all non-salary benefits which might otherwise be found to accrue to the Independent Contractor by virtue of their services to Company, and is effective for the entire duration of Independent Contractor's agreement with Company. This waiver is effective independently of Independent Contractor's employment status as adjudged for taxation purposes or for any other purpose. Neither this Agreement, nor any duties or obligations under this Agreement may be assigned by either party without the consent of the other. TERMINATION This Agreement may be terminated prior to the completion or achievement of the Scope of Work by either party giving [number] days written notice. Such termination shall not prejudice any other remedy to which the terminating party may be entitled, either by law, in equity, or under this Agreement. NON-DISCLOSURE OF TRADE SECRETS, CUSTOMER LISTS AND OTHER PROPRIETARY INFORMATION Independent Contractor agrees not to disclose or communicate, in any manner, either during or after Independent Contractor's agreement with Company, information about Company, its operations, clientele, or any other information, that relate to the business of Company including, but not limited to, the names of its customers, its marketing strategies, operations, or any other information of any kind which would be deemed confidential, a trade secret, a customer list, or other form of proprietary information of Company. Independent Contractor acknowledges that the above information is material and confidential and that it affects the profitability of Company. ","Independent Contractor Agreement","6",62,"https://templates.business-in-a-box.com/imgs/1000px/independent-contractor-agreement-D160.png","https://templates.business-in-a-box.com/imgs/250px/160.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#160.xml",{"title":6,"description":6},[130],{"label":131,"url":132},"Consultant & Contractors","consulting-contractor-business","independent contractor agreement","/template/independent-contractor-agreement-D160",{"description":136,"descriptionCustom":6,"label":137,"pages":138,"size":9,"extension":10,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":144,"keywords":143,"url":149},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","3","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":143,"description":6},"non disclosure agreement nda",[145,146],{"label":102,"url":103},{"label":147,"url":148},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":151,"descriptionCustom":6,"label":152,"pages":153,"size":9,"extension":10,"preview":154,"thumb":155,"svgFrame":156,"seoMetadata":157,"parents":159,"keywords":158,"url":162},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: JOB OFFER FOR [DESCRIBE] Dear [CANDIDATE NAME]: Congratulations! [Company name] is excited to offer you the position of [job title] with an expected start date of [day, month, year] at a starting salary of [dollar amount] per [hour, year, etc.]. You can expect to receive payment [weekly, biweekly, monthly, etc.], starting on [date of first pay period]. We must wrap up a few more formalities, including the successful completion of your [background check, drug screening, reference check, etc.]. As the [job title], you will report to [manager/supervisor name and title] at [workplace location] from [hours of day, days of week]","Job Offer Letter Long","1","https://templates.business-in-a-box.com/imgs/1000px/job-offer-letter-long-D12769.png","https://templates.business-in-a-box.com/imgs/250px/12769.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12769.xml",{"title":158,"description":6},"job offer letter long",[160,161],{"label":32,"url":97},{"label":99,"url":100},"/template/job-offer-letter-long-D12769",{"description":164,"descriptionCustom":6,"label":165,"pages":166,"size":167,"extension":10,"preview":168,"thumb":169,"svgFrame":170,"seoMetadata":171,"parents":172,"keywords":177,"url":178},"Employee Handbook Understanding employment at [YOUR COMPANY NAME] Revised on [DATE] Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com Table of Content Table of Content 2 Welcome to [YOUR COMPANY NAME]! 5 1. Organization Description 6 1.1 Introductory Statement 6 1.2 Customer Relations 6 1.3 Products and Services Provided 7 1.4 Facilities and Location(s) 7 1.5 The History of [YOUR COMPANY NAME] 7 1.6 Management Philosophy 7 1.7 Goals 8 2. The Employment 9 2.1 Nature of Employment 9 2.2 Employee Relations 9 2.3 Equal Employment Opportunity 10 2.4 Diversity 10 2.5 Business Ethics and Conduct 12 2.6 Personal Relationships in the Workplace 13 2.7 Conflicts of Interest 13 2.8 Outside Employment 14 2.9 Non-Disclosure 15 2.10 Disability Accommodation 16 2.11 Job Posting and Employee Referrals 17 2.12 Whistleblower Policy 18 2.13 Accident and First Aid 20 3. Employment Status and Records 21 3.1 Employment Categories 21 3.2 Access to Personnel Files 22 3.3 Personnel Data Changes 23 3.4 Probation Period 23 3.5 Employment Applications 24 3.6 Performance Evaluation 24 3.7 Job Descriptions 25 3.8 Salary Administration 25 3.9 Professional Development 26 4. Employee Benefit Programs 27 4.1 Employee Benefits 27 4.2 Vacation Benefits 27 4.3 Military Service Leave 29 4.4 Religious Observance 29 4.5 Holidays 29 4.6 Workers Insurance 30 4.7 Sick Leave Benefits 31 4.8 Bereavement Leave 32 4.9 Relocation Benefits 33 4.10 Educational Assistance 33 4.11 Health Insurance 34 4.12 Life Insurance 35 4.13 Long Term Disability 35 4.14 Marriage, Maternity and Parental Leave 36 5. Timekeeping / Payroll 40 5.1 Timekeeping 40 5.2 Paydays 40 5.3 Employment Termination 41 5.4 Administrative Pay Corrections 42 6. Work Conditions and Hours 43 6.1 Work Schedules 43 6.2 Absences 43 6.3 Jury Duty 45 6.4 Use of Phone and Mail Systems 45 6.5 Smoking 46 6.6 Meal Periods 46 6.7 Overtime 46 6.8 Use of Equipment 47 6.9 Telecommuting 47 6.10 Emergency Closing 48 6.11 Business Travel Expenses 49 6.12 Visitors in the Workplace 51 6.13 Computer and Email Usage 51 6.14 Internet Usage 52 6.15 Workplace Monitoring 54 6.16 Workplace Violence Prevention 55 7. Employee Conduct & Disciplinary Action 57 7.1 Employee Conduct and Work Rules 57 7.2 Sexual and Other Unlawful Harassment 58 7.3 Attendance and Punctuality 60 7.4 Personal Appearance 60 7.5 Return of Property 61 7.6 Resignation and Retirement 61 7.7 Security Inspections 62 7.8 Progressive Discipline 62 7.9 Problem Resolution 64 7.10 Workplace Etiquette 65 7.11 Suggestion Program 67 Acknowledgement of Receipt 68 Welcome to [YOUR COMPANY NAME]! On behalf of your colleagues, we welcome you to [YOUR COMPANY NAME] and wish you every success here. At [YOUR COMPANY NAME], we believe that each employee contributes directly to the growth and success of the company, and we hope you will take pride in being a member of our team. This handbook was developed to describe some of the expectations of our employees and to outline the policies, programs, and benefits available to eligible employees. Employees should become familiar with the contents of the employee handbook as soon as possible, for it will answer many questions about employment with [YOUR COMPANY NAME]. We believe that professional relationships are easier when all employees are aware of the culture and values of the organization. This guide will help you to better understand our vision for the future of our business and the challenges that are ahead. We hope that your experience here will be challenging, enjoyable, and rewarding. Again, welcome! [PRESIDENT NAME] President & CEO 1. Organization Description 1.1 Introductory Statement This handbook is designed to acquaint you with [YOUR COMPANY NAME] and provide you with information about working conditions, employee benefits, and some of the policies affecting your employment. You should read, understand, and comply with all provisions of the handbook. It describes many of your responsibilities as an employee and outlines the programs developed by [YOUR COMPANY NAME] to benefit employees. One of our objectives is to provide a work environment that is conducive to both personal and professional growth. No employee handbook can anticipate every circumstance or question about policy. As [YOUR COMPANY NAME] continues to grow, the need may arise and [YOUR COMPANY NAME] reserves the right to revise, supplement, or rescind any policies or portion of the handbook from time to time as it deems appropriate, in its sole and absolute discretion. Employees will be notified of such changes to the handbook as they occur. 1.2 Customer Relations Customers are among our organization's most valuable assets. Every employee represents [YOUR COMPANY NAME] to our customers and the public. The way we do our jobs presents an image of our entire organization. Customers judge all of us by how they are treated with each employee contact. Therefore, one of our first business priorities is to assist any customer or potential customer. Nothing is more important than being courteous, friendly, helpful, and prompt in the attention you give to customers. [YOUR COMPANY NAME] will provide customer relations and services training to all employees with extensive customer contact. Customers who wish to lodge specific comments or complaints should be directed to the [TITLE AND NAME OF THE PERSON RESPONSIBLE] for appropriate action. Our personal contact with the public, our manners on the telephone, and the communications we send to customers are a reflection not only of ourselves, but also of the professionalism of [YOUR COMPANY NAME]. Positive customer relations not only enhance the public's perception or image of [YOUR COMPANY NAME], but also pay off in greater customer loyalty and increased sales and profit. 1.3 Products and Services Provided You will find more information about our products and services by reading the [YOUR COMPANY NAME] Corporate Brochures. 1.4 Facilities and Location(s) Head Office: [ADDRESS] [CITY], [STATE] [ZIP/POSTAL CODE] [COUNTRY] 1.5 The History of [YOUR COMPANY NAME] [DESCRIBE THE HISTORY OF YOUR COMPANY HERE] 1.6 Management Philosophy [YOUR COMPANY NAME] management philosophy is based on responsibility and mutual respect. Our wishes are to maintain a work environment that fosters on personal and professional growth for all employees. Maintaining such an environment is the responsibility of every staff person. Because of their role, managers and supervisors have the additional responsibility to lead in a manner which fosters an environment of respect for each person. People who come to [YOUR COMPANY NAME] want to work here because we have created an environment that encourages creativity and achievement. [YOUR COMPANY NAME] aims to become a leader in [DESCRIBE YOUR COMPANY'S FIELD OF EXPERTISE]. The mainstay of our strategy will be to offer a level of client focus that is superior to that offered by our competitors. To help achieve this objective, [YOUR COMPANY NAME] seeks to attract highly motivated individuals that want to work as a team and share in the commitment, responsibility, risk taking, and discipline required to achieve our vision. Part of attracting these special individuals will be to build a culture that promotes both uniqueness and a bias for action. While we will be realistic in setting goals and expectations, [YOUR COMPANY NAME] will also be aggressive in reaching its objectives. This success will in turn enable [YOUR COMPANY NAME] to give its employees above average compensation and innovative benefits or rewards, key elements in helping us maintain our leadership position in the worldwide marketplace. 1.7 Goals [DESCRIBE YOUR COMPANY'S GOALS HERE] 2. The Employment 2","Employee Handbook","34",280,"https://templates.business-in-a-box.com/imgs/1000px/employee-handbook-D712.png","https://templates.business-in-a-box.com/imgs/250px/712.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#712.xml",{"title":6,"description":6},[173,174],{"label":32,"url":97},{"label":175,"url":176},"Company Policies","company-policies","employee handbook","/template/employee-handbook-D712",false,{"seo":181,"reviewer":193,"quick_facts":197,"at_a_glance":199,"personas":203,"variants":228,"glossary":256,"sections":292,"how_to_fill":343,"common_mistakes":384,"faqs":409,"industries":437,"comparisons":454,"diy_vs_pro":469,"related_template_ids_curated":482,"schema":495,"classification":497},{"meta_title":182,"meta_description":183,"primary_keyword":184,"secondary_keywords":185},"Equity Incentive Plan Template | BIB","Free equity incentive plan template for startups and growing businesses. Covers stock options, vesting schedules, eligibility, and plan administration.","equity incentive plan template",[186,187,188,189,190,191,192],"equity incentive plan word template","employee stock option plan template","equity compensation plan template","startup equity plan template","stock option plan template free","employee equity incentive plan","equity incentive plan download",{"name":194,"credential":195,"reviewed_date":196},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":198,"legal_review_recommended":179,"signature_required":179},"advanced",{"what_it_is":200,"when_you_need_it":201,"whats_inside":202},"An Equity Incentive Plan is a formal company policy document that authorizes the issuance of stock options, restricted stock units, or other equity awards to employees, directors, and consultants. This free Word download gives you a structured, board-ready starting point covering eligibility, award types, vesting schedules, exercise mechanics, and plan administration — ready to edit online and export as PDF.\n","Use it when you are preparing to grant equity to employees for the first time, formalizing an ad hoc equity arrangement, or restructuring compensation to include equity as part of a competitive talent strategy.\n","Plan purpose and authorized share pool, eligibility criteria, types of awards available (ISOs, NSOs, RSUs), vesting schedules and cliff periods, exercise procedures, termination and forfeiture rules, plan administration, and amendment provisions.\n",[204,208,212,216,220,224],{"title":205,"use_case":206,"icon_asset_id":207},"Startup founders","Establishing the first formal equity program before making key hires","persona-startup-founder",{"title":209,"use_case":210,"icon_asset_id":211},"HR managers","Formalizing equity compensation terms for a growing employee base","persona-hr-manager",{"title":213,"use_case":214,"icon_asset_id":215},"CFOs and finance directors","Documenting the share pool, dilution schedule, and award accounting","persona-cfo",{"title":217,"use_case":218,"icon_asset_id":219},"Small business owners","Retaining key employees with equity when cash compensation is limited","persona-small-business-owner",{"title":221,"use_case":222,"icon_asset_id":223},"Operations directors","Replacing informal equity promises with a governed, documented plan","persona-operations-director",{"title":225,"use_case":226,"icon_asset_id":227},"Corporate attorneys and advisors","Providing clients with a compliant starting-point plan for board approval","persona-corporate-attorney",[229,233,236,240,244,248,252],{"situation":230,"recommended_template":231,"slug":232},"Granting stock options to US employees with preferential tax treatment","Incentive Stock Option (ISO) Plan","stock-option-plan-D13284",{"situation":234,"recommended_template":235,"slug":232},"Granting options to contractors, advisors, or non-US employees","Non-Qualified Stock Option (NSO) Plan",{"situation":237,"recommended_template":238,"slug":239},"Issuing restricted stock that vests on a time or performance schedule","Restricted Stock Unit (RSU) Agreement","restricted-stock-purchase-agreement-D12855",{"situation":241,"recommended_template":242,"slug":243},"Rewarding employees with cash tied to company value, no dilution","Phantom Stock Plan","phantom-stock-plan-D13748",{"situation":245,"recommended_template":246,"slug":247},"Granting equity to founders at incorporation with vesting","Founder Vesting Agreement","vesting-agreement-D12864",{"situation":249,"recommended_template":250,"slug":251},"Setting up an employee stock purchase plan at a public company","Employee Stock Purchase Plan (ESPP)","employee-share-purchase-plan-D477",{"situation":253,"recommended_template":254,"slug":255},"Structuring a performance-based equity award for executives","Performance Share Unit (PSU) Agreement","performance-agreement-D14026",[257,259,262,265,268,271,274,277,280,283,286,289],{"term":7,"definition":258},"A board-approved policy document authorizing a company to grant equity awards — such as stock options or RSUs — to employees, directors, and consultants.",{"term":260,"definition":261},"Option Pool","The block of shares reserved by the company specifically for issuance under the equity incentive plan, typically expressed as a percentage of fully diluted shares outstanding.",{"term":263,"definition":264},"Vesting Schedule","The timeline over which an employee earns the right to exercise or receive equity awards, most commonly four years with a one-year cliff.",{"term":266,"definition":267},"Cliff","The minimum period an employee must work before any portion of their equity award vests — typically 12 months, after which the first tranche becomes exercisable.",{"term":269,"definition":270},"Incentive Stock Option (ISO)","A stock option granted only to employees that qualifies for favorable US federal tax treatment if specific holding period and employment requirements are met.",{"term":272,"definition":273},"Non-Qualified Stock Option (NSO)","A stock option that does not meet ISO requirements, taxable as ordinary income at exercise, and grantable to employees, directors, and consultants.",{"term":275,"definition":276},"Exercise Price","The fixed price at which an option holder may purchase a share of company stock, typically set at fair market value on the grant date.",{"term":278,"definition":279},"409A Valuation","An independent appraisal of a private company's common stock fair market value, required by US tax law to set a defensible exercise price for stock options.",{"term":281,"definition":282},"Restricted Stock Unit (RSU)","A promise to deliver company shares to an employee upon satisfaction of vesting conditions, without requiring the employee to pay an exercise price.",{"term":284,"definition":285},"Acceleration","A provision that triggers immediate or partial vesting of unvested awards upon a defined event, such as a change of control or involuntary termination.",{"term":287,"definition":288},"Dilution","The reduction in existing shareholders' ownership percentage that occurs when new shares are issued under an equity incentive plan.",{"term":290,"definition":291},"Fully Diluted Shares","The total share count including all issued shares plus all shares issuable upon exercise of outstanding options, warrants, and convertible instruments.",[293,298,303,308,313,318,323,328,333,338],{"name":294,"plain_english":295,"sample_language":296,"common_mistake":297},"Purpose and authorization","States the plan's objectives — attracting, retaining, and motivating participants — and records the board and shareholder authorization for the plan.","The [COMPANY NAME] [YEAR] Equity Incentive Plan is established to provide selected employees, directors, and consultants of [COMPANY NAME] (the 'Company') with an opportunity to acquire a proprietary interest in the Company. The Plan was adopted by the Board of Directors on [DATE] and approved by shareholders holding [X]% of outstanding shares on [DATE].","Omitting the shareholder approval date. Without documented shareholder consent, ISO grants may be invalid and the plan may fail IRS requirements.",{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Share reserve and option pool","Defines the total number of shares authorized for issuance under the plan and any automatic annual increase (evergreen) provision.","Subject to adjustment as provided herein, the aggregate number of shares of Common Stock authorized for issuance under this Plan shall not exceed [NUMBER] shares ([X]% of fully diluted shares as of the effective date). The share reserve shall automatically increase on January 1 of each year by the lesser of [X]% of then-outstanding shares or [NUMBER] shares.","Setting the pool size without modeling dilution through a future funding round. A pool that looks adequate today may require painful repricing after a Series A.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Eligibility","Specifies which individuals — employees, directors, consultants — may receive awards, and delegates authority to the plan administrator to select specific participants.","Awards may be granted to employees, non-employee directors, and consultants of the Company as selected by the Administrator in its sole discretion. ISOs may be granted only to individuals who are employees of the Company or a parent or subsidiary corporation on the grant date.","Listing consultants as ISO-eligible. ISOs are available only to W-2 employees under IRC §422 — granting ISOs to contractors disqualifies the options automatically.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Types of awards","Enumerates every award type the plan authorizes — ISOs, NSOs, RSUs, restricted stock, SARs — and provides a brief description of each.","The Administrator may grant the following types of Awards under this Plan: (a) Incentive Stock Options; (b) Non-Qualified Stock Options; (c) Restricted Stock Awards; (d) Restricted Stock Units; (e) Stock Appreciation Rights. Each Award shall be evidenced by an Award Agreement setting forth the specific terms applicable to that Award.","Authorizing only ISOs and omitting NSOs. When the company later needs to grant equity to advisors or non-US employees, there is no authorized vehicle and the plan must be amended.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Vesting schedule and cliff","Sets the standard vesting timeline and cliff period, and defines the conditions (time, performance, or both) that trigger vesting.","Unless otherwise specified in the Award Agreement, Awards shall vest over [48] months of continuous service, with [25]% of the total Award vesting on the [12]-month anniversary of the Vesting Commencement Date and the remainder vesting in equal monthly installments thereafter, subject to the Participant's continued service through each vesting date.","Using a 3-year vesting schedule without a cliff. Without a 12-month cliff, an employee who leaves after 6 months walks away with 12.5% of their grant — and 3-year schedules are shorter than the industry norm.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Exercise procedures and payment","Explains how option holders exercise their awards, acceptable payment methods, and the timeline for share delivery after exercise.","To exercise an Option, the Participant shall deliver to the Company a written exercise notice specifying the number of shares to be purchased and the aggregate Exercise Price. Payment shall be made by (a) cash or check, (b) broker-assisted cashless exercise, or (c) net exercise, as permitted by the Administrator.","Omitting the cashless exercise method. Employees at private companies often cannot fund the exercise price in cash — without a cashless option, vested awards go unexercised and the retention benefit is lost.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Termination and forfeiture rules","Governs what happens to vested and unvested awards when a participant's service ends — by voluntary resignation, involuntary termination, death, disability, or cause.","Upon Termination of Service for reasons other than Cause, death, or Disability, the Participant may exercise vested Options within [90] days of the termination date. Upon Termination for Cause, all Awards (vested and unvested) shall immediately terminate and be forfeited. Unvested Awards shall be forfeited upon any Termination of Service.","Using a 30-day post-termination exercise window. Ninety days is the industry standard minimum to preserve ISO status. A shorter window may force employees to lose options they cannot afford to exercise in time.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Change of control and acceleration","Defines what constitutes a change of control and whether outstanding awards accelerate (single-trigger) or accelerate only on a subsequent termination (double-trigger).","Upon a Change of Control, the Administrator may, in its discretion: (a) assume or substitute outstanding Awards; (b) accelerate vesting in full (single-trigger); or (c) accelerate vesting only upon a qualifying Termination of Service within [12] months following the Change of Control (double-trigger). 'Change of Control' means a transaction in which any person acquires more than [50]% of the Company's outstanding voting securities.","Specifying single-trigger acceleration for all employees. Acquirers typically require double-trigger structures to retain talent post-acquisition — single-trigger can reduce deal value or cause acquirers to walk away.",{"name":334,"plain_english":335,"sample_language":336,"common_mistake":337},"Plan administration","Designates the plan administrator (typically the board or a compensation committee), defines its authority to interpret the plan and resolve disputes, and establishes the grant approval process.","This Plan shall be administered by the Board of Directors or a Compensation Committee of at least [2] members appointed by the Board (the 'Administrator'). The Administrator shall have full authority to interpret the Plan, establish grant policies, determine Award terms, and make all decisions necessary for plan administration. Administrator decisions shall be final and binding.","Failing to establish a compensation committee before scaling headcount. Once the company has more than 10 option holders, ad hoc board approval for each grant becomes impractical and creates compliance gaps.",{"name":339,"plain_english":340,"sample_language":341,"common_mistake":342},"Plan amendment and termination","Specifies the conditions under which the board may amend or terminate the plan, and protects existing award holders from adverse amendments without their consent.","The Board may amend, suspend, or terminate the Plan at any time; provided that no amendment shall materially and adversely affect the rights of any Participant with respect to outstanding Awards without the Participant's written consent. Unless earlier terminated by the Board, the Plan shall terminate on the [10th] anniversary of its adoption date.","Omitting the 10-year termination clause. ISOs granted after the plan's 10th anniversary are automatically disqualified — a silent expiry with no termination clause can create retroactive tax problems for employees.",[344,349,354,359,364,369,374,379],{"step":345,"title":346,"description":347,"tip":348},1,"Determine the option pool size","Model your hiring plan for the next 18–24 months and estimate the equity required to attract each role. A typical early-stage pool is 10–15% of fully diluted shares. Run a dilution model to see how the pool interacts with a future funding round before locking in the number.","Investors in seed and Series A rounds often ask founders to top up the option pool before closing — model this 'pre-money pool refresh' scenario before setting the initial size.",{"step":350,"title":351,"description":352,"tip":353},2,"Obtain a 409A valuation","Engage an independent valuation firm to appraise your common stock fair market value before setting any exercise prices. A 409A provides a safe harbor that protects both the company and employees from IRS penalties under IRC §409A.","Valuations are valid for 12 months or until a material event (new funding round, acquisition letter of intent). Refresh immediately after raising capital to avoid granting options at a stale, below-market price.",{"step":355,"title":356,"description":357,"tip":358},3,"Choose the award types to authorize","At minimum, authorize both ISOs and NSOs. Add RSUs if you anticipate granting to executives or if your company is within 2–3 years of a liquidity event where RSU tax treatment becomes more predictable.","RSUs are simpler for late-stage private companies and all public companies because they eliminate the exercise price decision — but they create a tax event at vesting even without a liquidity event.",{"step":360,"title":361,"description":362,"tip":363},4,"Set the standard vesting schedule","Enter a 4-year vesting schedule with a 12-month cliff as the plan default. Individual award agreements can deviate for specific grants — performance-based vesting, front-loaded schedules for executives — without amending the plan itself.","State the vesting commencement date as the employee's hire date, not the grant date. Grant approval often lags hiring by weeks; backdating vesting to the hire date is standard and prevents employees from losing time in their cliff.",{"step":365,"title":366,"description":367,"tip":368},5,"Define termination and forfeiture windows","Set the post-termination exercise window at 90 days for standard departures to preserve ISO status, 12 months for death or disability, and immediate forfeiture for termination for cause. Document the definition of 'cause' clearly.","Some companies offer an extended exercise window (1–10 years) as a retention differentiator. This is a plan-level or individual-agreement-level decision — note in the plan that the Administrator may extend the window at its discretion.",{"step":370,"title":371,"description":372,"tip":373},6,"Choose a change-of-control acceleration structure","Select double-trigger acceleration as the default for most employees (vesting accelerates only if the employee is also terminated within 12 months post-acquisition). Reserve single-trigger or enhanced packages for C-suite and founders.","Define 'change of control' precisely — include both asset sales and share purchases above a 50% threshold. Ambiguous definitions are litigated at exactly the wrong moment: during an acquisition.",{"step":375,"title":376,"description":377,"tip":378},7,"Designate the plan administrator and approval process","Name the board or compensation committee as administrator and document the minimum approval requirements — quorum, written consent, or meeting resolution. Establish a standard grant approval calendar (e.g., quarterly) to avoid ad hoc approvals.","Attach a standard board consent template for equity grants as an exhibit to the plan. Consistent documentation protects the company during due diligence for a future acquisition or IPO.",{"step":380,"title":381,"description":382,"tip":383},8,"File the plan and obtain board and shareholder approval","Present the final plan to the board for adoption by written consent or resolution. Shareholder approval is required within 12 months of board adoption for ISO grants to be valid and for public-company listing requirements.","Keep a signed copy of the board consent and shareholder approval in the company's minute book alongside the plan document. Investors and acquirers will request these in due diligence.",[385,389,393,397,401,405],{"mistake":386,"why_it_matters":387,"fix":388},"Granting options before obtaining a 409A valuation","Options granted at a below-market exercise price trigger immediate income recognition and a 20% penalty tax under IRC §409A for the employee — plus interest on the underpayment.","Complete a 409A appraisal before issuing any grants and refresh it after every priced funding round or material company event.",{"mistake":390,"why_it_matters":391,"fix":392},"Setting the option pool too small before a fundraise","Investors routinely require a pool top-up as a condition of closing, which dilutes existing shareholders — including founders — rather than being shared across pre- and post-money.","Model a pre-money pool refresh scenario at your anticipated next round valuation and size the initial pool to survive at least two years of hiring without an emergency amendment.",{"mistake":394,"why_it_matters":395,"fix":396},"Using a 30-day post-termination exercise window","Employees who cannot fund the exercise price in 30 days forfeit vested options they earned. Courts have found some forfeitures unfair, and the talent reputation damage is significant.","Use a 90-day standard window to preserve ISO status at minimum. Consider offering a 1–5 year extended window as a policy differentiator, with the tax consequence clearly disclosed to departing employees.",{"mistake":398,"why_it_matters":399,"fix":400},"Omitting the 10-year plan termination clause","ISO grants made after the 10th anniversary of plan adoption are automatically disqualified, converting ISOs to NSOs retroactively and triggering unexpected ordinary income for employees.","Include an explicit 10-year sunset clause and set a calendar reminder to seek shareholder approval for a plan restatement before the deadline.",{"mistake":402,"why_it_matters":403,"fix":404},"Authorizing ISOs for non-employee consultants","ISO status is available only to W-2 employees under IRC §422. An ISO granted to a consultant is automatically treated as an NSO, but if the grant documentation says 'ISO,' it creates tax confusion and potential penalties for both parties.","Check employment status before every grant. Use NSO documentation for all consultants, advisors, and non-employee directors regardless of what the plan authorizes.",{"mistake":406,"why_it_matters":407,"fix":408},"No standard equity grant approval calendar","Ad hoc grant approvals create gaps in documentation, inconsistent grant dates, and potential backdating concerns — all of which surface as red flags during acquisition due diligence.","Establish quarterly grant approval windows and attach a standard board consent template as a plan exhibit so every grant has consistent, timestamped documentation.",[410,413,416,419,422,425,428,431,434],{"question":411,"answer":412},"What is an equity incentive plan?","An equity incentive plan is a board-approved policy document that authorizes a company to grant stock options, restricted stock units, or other equity awards to employees, directors, and consultants. It defines the total share pool, eligible participants, award types, vesting terms, exercise mechanics, and plan administration rules. It is the governing document that makes every individual equity grant valid and enforceable.\n",{"question":414,"answer":415},"What is the difference between an ISO and an NSO?","An Incentive Stock Option (ISO) is available only to W-2 employees and qualifies for preferential US tax treatment — no ordinary income tax at exercise if holding period requirements are met. A Non-Qualified Stock Option (NSO) can be granted to anyone, including consultants and directors, but is taxed as ordinary income at the time of exercise. Most plans authorize both types so the administrator can choose the most appropriate vehicle for each recipient.\n",{"question":417,"answer":418},"What is a standard vesting schedule for equity?","The market standard for startup and private-company equity is a 4-year vesting schedule with a 12-month cliff — 25% of the grant vests after one year of service, and the remainder vests monthly over the following 36 months. This structure aligns employee retention with typical funding cycles. Some companies use 3-year schedules for senior executives or front-load vesting to compete for experienced talent.\n",{"question":420,"answer":421},"Do I need a 409A valuation before granting stock options?","Yes, for any private US company granting stock options. A 409A valuation establishes the fair market value of common stock and sets a defensible exercise price. Options granted without a 409A at or above fair market value expose the company and employees to significant penalties under IRC §409A — including immediate income recognition and a 20% excise tax on the employee. Valuations are typically valid for 12 months or until a material event such as a new funding round.\n",{"question":423,"answer":424},"How large should the option pool be?","Early-stage startups typically reserve 10–15% of fully diluted shares for the equity incentive plan. The right size depends on your hiring plan, competitive benchmarks for each role, and the dilution impact at your next funding round. Investors in seed and Series A rounds frequently require a pool top-up pre-closing, so modeling a future refresh scenario before setting the initial pool size is strongly advised.\n",{"question":426,"answer":427},"What is the difference between an equity incentive plan and an individual stock option agreement?","The equity incentive plan is the master governing document adopted by the board and shareholders that authorizes the overall program and sets the rules. An individual stock option agreement (or award agreement) is issued to each specific participant and sets the terms of their particular grant — number of shares, exercise price, grant date, and vesting schedule — within the boundaries established by the plan. Both documents are required; neither is sufficient on its own.\n",{"question":429,"answer":430},"What happens to unvested options when an employee leaves?","Unvested options are forfeited upon any termination of service and return to the option pool. Vested options are typically exercisable for 90 days following termination (to preserve ISO status), after which they expire. If an employee is terminated for cause, both vested and unvested options are usually forfeited immediately under standard plan terms. Some companies offer extended post-termination exercise windows — up to 10 years — as a retention and fairness differentiator.\n",{"question":432,"answer":433},"Does an equity incentive plan require shareholder approval?","For ISO grants to be valid under US tax law, shareholders must approve the plan within 12 months of board adoption. Public companies listed on Nasdaq or NYSE require shareholder approval for all equity compensation plans. Private companies granting only NSOs are not legally required to obtain shareholder approval, but investor term sheets and standard governance practice typically require it in any case.\n",{"question":435,"answer":436},"What is a phantom stock plan and how does it differ from a standard equity incentive plan?","A phantom stock plan pays employees a cash bonus tied to the value of company shares without issuing actual equity. No shares are issued, no dilution occurs, and the recipient never becomes a shareholder. It suits companies that want to share value appreciation with employees but cannot or do not want to issue real equity — for example, LLCs, S-corps with shareholder count limits, or businesses with complex cap tables. A standard equity incentive plan issues real shares or rights to purchase real shares and does dilute existing shareholders.\n",[438,442,446,450],{"industry":439,"icon_asset_id":440,"specifics":441},"SaaS / Technology","industry-saas","Option pools sized at 15–20% pre-Series A to compete for engineering talent; RSU transitions as the company approaches a liquidity event.",{"industry":443,"icon_asset_id":444,"specifics":445},"Biotech / Life Sciences","industry-healthtech","Extended vesting tied to clinical milestones; performance-based awards linked to regulatory approval events; large pools required to attract credentialed scientific leadership.",{"industry":447,"icon_asset_id":448,"specifics":449},"Professional Services","industry-professional-services","Equity used to retain rainmakers and partners; NSO-heavy plans to cover contractors and advisors; buyback provisions tied to partnership buy-in requirements.",{"industry":451,"icon_asset_id":452,"specifics":453},"Manufacturing","industry-manufacturing","Phantom stock or profit-sharing hybrids common in family-owned manufacturers; RSUs used for plant managers and operations executives ahead of a PE sale or ESOP transition.",[455,459,462,466],{"vs":456,"vs_template_id":457,"summary":458},"Stock Option Agreement","D{STOCK_OPTION_AGREEMENT_ID}","A stock option agreement is the individual grant document issued to a specific employee under the equity incentive plan. The plan is the master governing policy; the agreement implements a single award within that policy. You need the plan in place before any individual agreement is valid. Both documents are required for every option grant.",{"vs":242,"vs_template_id":460,"summary":461},"D{PHANTOM_STOCK_PLAN_ID}","A phantom stock plan delivers cash bonuses tied to share value without issuing real equity — no dilution, no cap table entries, no 409A required. An equity incentive plan issues real shares or real options, making recipients actual or potential shareholders. Phantom plans suit LLCs, S-corps, and businesses that want retention incentives without changing ownership structure.",{"vs":463,"vs_template_id":464,"summary":465},"Profit Sharing Plan","D{PROFIT_SHARING_PLAN_ID}","A profit sharing plan distributes a percentage of annual earnings to employees in cash or retirement contributions based on company profitability. An equity incentive plan grants ownership stakes tied to long-term company value, not annual profits. Equity rewards long tenure and a successful exit; profit sharing rewards current-year performance. Many companies use both in combination.",{"vs":250,"vs_template_id":467,"summary":468},"D{ESPP_ID}","An ESPP allows employees to purchase company shares at a discount — typically 15% below market price — through payroll deductions during an offering period. It is typically used by public companies as a broad-based employee benefit. An equity incentive plan grants awards (options or RSUs) at zero or below-market cost, primarily as a compensation and retention tool for key contributors rather than all employees.",{"use_template":470,"template_plus_review":474,"custom_drafted":478},{"best_for":471,"cost":472,"time":473},"Early-stage startups granting equity to fewer than 10 participants in a single jurisdiction","Free","4–8 hours to complete and obtain board approval",{"best_for":475,"cost":476,"time":477},"Companies with multiple award types, executive grants, or employees in more than one US state","$500–$2,000 for a startup attorney review","3–5 business days",{"best_for":479,"cost":480,"time":481},"Pre-IPO companies, multi-jurisdiction programs, complex performance-based awards, or plans requiring shareholder vote","$3,000–$15,000+","3–6 weeks",[483,484,485,486,487,488,489,490,491,492,493,494],"employment-agreement_at-will-employee-D541","employment-agreement-executive-D543","independent-contractor-agreement-D160","non-disclosure-agreement-nda-D12692","job-offer-letter-long-D12769","employee-handbook-D712","shareholders-agreement-D13226","operating-agreement-D13227","financial-projections_12-months-D360","business-plan-canvas-(one-page)-D12527","strategic-planning-template-D13857","employee-dismissal-letter-D508",{"emit_how_to":496,"emit_defined_term":496},true,{"primary_folder":97,"secondary_folder":498,"document_type":499,"industry":500,"business_stage":501,"tags":502,"confidence":508},"compensation-and-payroll","policy","general","growth",[503,504,505,506,507],"equity","equity-incentive-plan","stock-options","employee-compensation","vesting-schedule",0.85,"\u003Ch2>What is an Equity Incentive Plan?\u003C/h2>\n\u003Cp>An \u003Cstrong>Equity Incentive Plan\u003C/strong> is a board-approved governing document that authorizes a company to grant equity awards — including stock options, restricted stock units, and stock appreciation rights — to employees, directors, and consultants. It establishes the total share pool reserved for these awards, defines who is eligible, specifies the types of awards available, and sets the rules for vesting, exercise, forfeiture, and plan administration. Without this plan in place, individual equity grants lack a legal foundation and may be unenforceable or create unintended tax consequences for both the company and recipients.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Handing out equity promises without a formal plan creates serious exposure at exactly the moments that matter most — a funding round, an acquisition, or an IRS audit. Investors conducting due diligence expect a properly adopted equity incentive plan with a documented share pool and consistent grant records; missing or informal equity arrangements are among the most common deal-delaying findings in startup M&A. Employees who receive grants without a governing plan document have no clear understanding of their vesting schedule, exercise rights, or what happens when they leave — leading to disputes and retention failures. A properly structured equity incentive plan closes these gaps by establishing clear, enforceable terms for every award, protecting the company's cap table integrity, and ensuring ISO grants meet the IRS requirements that give employees favorable tax treatment.\u003C/p>\n",1778696290217]