How a Financial Services Business Hired a Lawyer to Draft an Equity Compensation Agreement in Delaware

In 2021, a business in Delaware sought assistance with drafting an equity compensation agreement for an early-stage startup. The client, a co-founder, needed a framework for granting a new team member stock options equivalent to 2.5% of the company, to be vested over 48 months. Given the startup's current lack of valuation, the client required specific conditional provisions regarding share pricing and definition based on future company valuation, and wanted guidance on structuring the agreement appropriately. As a result, the client received three proposals from licensed attorneys, with flat fee bids ranging from $700 to $750. All proposals were submitted to meet the client’s deadline within one week, ensuring timely assistance for this important agreement.