Create your Stock Option Grant Notices and Stock Option Agreement

An equity incentive plan is a type of compensation plan that grants team members (such as employees, consultants and advisors) an ownership stake in your startup. Equity incentive plans typically involve granting stock options, restricted stock, or other forms of equity-based compensation. These plans are often used to motivate and retain team members, as well as to reward them for their performance. The equity incentive plan deals with stock options and is only adopted by the startup (by way of board resolution). It is not signed by team members. To exercise these options, the startup and team member must sign a Stock Option Grant Notice and Stock Option Agreement. The notice and agreement outline the terms and conditions of the stock option grant and details of the number of stock options and how they vest.