How a Consulting Business Hired a Lawyer to Draft an Equity Grant Agreement in Illinois

Hello! My name is Dolan and I'm happy to help. What you want to do first is make sure you understand the type of equity you’re being granted. Is it stock options, RSUs or another form of equity, for example? Stock options often come with the right to purchase shares at a specific price (the "exercise price"), while RSUs usually represent shares given to you outright after meeting certain conditions. Each type of equity has its own rules and tax implications. Also, look at the vesting schedule. This determines when you gain full ownership of the equity. Then, you want to consider the exercise terms. Basically, is there a date you can or must exercise them (turn them from stock to cash). The company may have repurchase agreements or clauses in place giving them right of first refusal before a sale. ' Typically, if there is a merger, other rules apply. I can always draft or review them for you.