This article explains how to prepare the documents from your existing Stock Incentive Plan for uploading onto the platform. This can be done via onboarding or via the New Stock Incentive Plan workflow, and once the plan and forms are set up, you will be able to use them to grant equity.
We recommend paying particular attention to the instructions on how to adjust the language and format of your forms so that they coincide with the Shoobx process of adding a cover page and signature page.
One way to record your Stock Incentive Plan is during onboarding. After completing the Charter section (so that the system knows what your equity structure looks like), you can click on the "Stock Incentive Plan" flow, and you'll open a page like the one below where you will be able to provide all of your Plan's details and documents, including, if applicable, early exercise documents. Be sure to prepare your forms according to the instructions below.
New Stock Incentive Plan Workflow
Another way to record your existing Plan is to run the "Set up Stock Incentive Plan" workflow (under the Equity heading). Click the "Does your company already have a Stock Incentive Plan?" link on the first screen of the workflow, shown below, on the right side of the screen:
This will bring you to the "upload" version of the workflow. To verify that you are on the correct path, the first step in the upload version of the SIP workflow looks like this:
The following steps will mimic the process outlined for the onboarding path above. You'll upload copies of your Plan and forms of grants, and provide information about your plan. Here too, you will prepare your forms according to the instructions below.
What does a grant look like with uploaded Form of Agreements?
When the system creates grants under an uploaded Stock Incentive Plan, Shoobx will utilize your uploaded Form document and will attach a cover page and signature page with the grant details in front of this uploaded PDF.
The actual grant document that an employee will accept will contain three parts: 1) a cover page with basic grant details as provided by the Shoobx user during the workflow, 2) a signature page, and 3) the relevant form that was uploaded during the workflow. Please see the example below which shows the cover page and signature page.
The grantee will see the uploaded form after the signature page in the combined document.
The Stock Incentive Plan will always be in the employee's data room and will be provided to them on the Grant Summary page, as shown in the screenshot below.
How should I prepare my Form of Agreements for upload?
The forms you upload will be used as part of future grants for employees. To avoid having conflicting language between what Shoobx will generate and your form, you will want to remove any of the following provisions from your forms:
- Number of shares / options
- Price per share / exercise price
- Dates for the grant, the vesting commencement, and expiration of the option
- Vesting schedule, including vesting intervals
- Any reference to a cliff and its duration
- Any reference to acceleration and the terms thereof
In place of those terms, we suggest adding language along the lines of, "This option shall vest in the manner described in the vesting schedule on the cover page attached hereto."
Have more questions? Reach out at any point to support and we will help you move forward!
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