How a Software & It Services Business Hired a Lawyer to Draft an Equity Compensation Agreement in California

In 2023, a business in California sought assistance with drafting an amendment to an existing Equity Compensation Agreement with a new co-founder. The client wanted to clarify specific conditions regarding commission payments, ensuring that commissions would only be paid based on revenue realized by the company and only while the co-founder remained actively engaged with the organization. Additional stipulations were necessary to exclude recurring revenue and to address scenarios that could lead to the termination of commission payments. As a result, the client received three proposals from licensed lawyers, with flat fee bids ranging from $400 to $675, all submitted to complete the work within the requested deadline of one week.