Equity Grant Agreement Template: Vesting, Rights and Terms

EQUITY GRANT AGREEMENT TEMPLATE FAQ

What is an equity grant agreement?

An equity grant agreement is a written agreement that gives a person the right to receive or hold equity in a company under stated terms. It usually explains the type of equity being granted, the number of shares or units, vesting rules, restrictions, and any conditions that apply to ownership or exercise. It helps create a clear record of the grant between the company and the recipient.

Why do you need an equity grant agreement?

You need an equity grant agreement to clearly define the terms of the equity award and reduce misunderstandings. It helps explain what has been granted, when the equity vests, what happens if the recipient leaves, and what company rules or plan documents apply. A written agreement also supports cap table tracking, internal approvals, and equity administration.

When should you use an equity grant agreement?

Use an equity grant agreement when a company grants shares, restricted stock, options, units, or another form of equity to a founder, employee, advisor, consultant, director, or service provider. It is commonly used during hiring, founder structuring, advisor arrangements, retention planning, or company compensation programs.

How to write an equity grant agreement?

Start with the names of the company and recipient, then identify the equity plan or approval basis for the grant. After that, state the type and amount of equity, the grant date, vesting schedule, any exercise or purchase price, and any transfer or forfeiture restrictions. Finish with tax acknowledgments, governing law, and signatures so the agreement is clear and ready to use.

Can AI Lawyer help if founders, recipients, and finance teams all need to review?

AI Lawyer can help by organizing the agreement into clear sections so each reviewer can find the relevant details quickly. It can also add internal reference fields, vesting notes, and placeholders that make updates easier to track. A consistent structure helps reduce repeated edits and lowers the chance of missing key details like grant dates, vesting schedules, equity type, or repurchase terms before the agreement is signed.