Short document proving an executive summary of the key features of the Company Stock Plan found here: Stock Plan
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[COMPANY NAME] [STOCK PLAN NAME]
SUMMARY OF KEY PROVISIONS
SHARE RESERVE
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# of Shares shares of common stock.
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[On and after an IPO, awards covering no more than share limit per year shares in the aggregate may be granted to any participant during any fiscal year; provided that such limitation shall be share limit for new hire shares for any person who is newly hired during the fiscal year.]
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Expired or cancelled options are generally returned to the share reserve , but repurchased restricted stock is not.
ELIGIBILITY
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Employees, consultants and advisors of the Company or any parent or subsidiary; provided that ISOs may only be granted to employees.
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Directors of the Company.
TYPES OF AWARDS AUTHORIZED
- ISOs, NSOs, and Restricted Stock.
EXERCISE PRICE
California Participants
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ISOs: 100% of fair market value (110% of fair market value for 10% shareholders).
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NSOs: Prior to an IPO, 85% of fair market value (110% of fair market value for 10% shareholders).
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Restricted Stock: Prior to an IPO, 85% of fair market value (100% of fair market value for 10% shareholders).
Non-California Participants
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ISOs: 100% of fair market value (110% of fair market value for 10% shareholders).
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NSOs/Restricted Stock: To be determined by the plan administrator.
VESTING
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The plan administrator has discretion to suspend vesting during a leave of absence. Absent action by the plan administrator or to the extent otherwise required by law, vesting will be suspended during an unpaid leave of absence.
EXERCISABILITY
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Options: Options generally become exercisable as the underlying shares vest.
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Restricted Stock: Shares are purchased and outstanding on the date of grant.
FORMS OF PAYMENT
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Payment may include cash, check, cancellation of indebtedness, tender of previously owned shares or any other consideration permitted by law.
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Subject to applicable laws, payment may include a promissory note or a "cashless exercise" of shares.
M&A TRANSACTIONS
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If the acquiring corporation does not assume or cash out outstanding options, all outstanding options will terminate on the effective date of the corporate transaction (no acceleration).
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[If outstanding options are not assumed, substituted or cashed out by the acquiring corporation, all of the shares subject to outstanding options will fully vest immediately prior to the corporate transaction.]
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[Whether or not the acquiring corporation assumes, substitutes or cashes out outstanding awards, % of Shares vesting immediately via single trigger% of the shares subject to outstanding awards will fully vest immediately prior to a change of control (i.e., single-trigger).]
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[If outstanding awards are assumed or substituted but a participant’s service is terminated other than for cause in connection with or within [# month(s)] month(s) after the change of control, all or a portion of the shares subject to outstanding awards will fully vest (double-trigger).]
POST-TERMINATION EXERCISE PERIODS FOR OPTIONS
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An Option must be exercised (to the extent that the option was vested and previously unexercised) within the following periods following a termination of service with the Company:
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Generally: [3] month(s) (ISOs must in fact be exercised within 3 months to retain ISO status)
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Disability: [6] month(s).
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Death: [9] month(s).
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[Cause: Option expires immediately upon termination.]
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TERM OF OPTIONS
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10 years (5 years for ISOs granted to 10% shareholders).
RIGHT OF FIRST REFUSAL
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Prior to an IPO, the Company has a right of first refusal on any proposed transfer of shares acquired pursuant to the plan.
REPURCHASE RIGHTS
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Prior to an IPO, the Company may repurchase any unvested shares acquired pursuant to the plan following a termination of service at the original purchase price of the shares, provided that such right must generally lapse at a rate of 20% per year with respect to any California participants.
TRANSFERABILITY OF OPTIONS
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Generally, options are not transferable except by will or the laws of descent and distribution.
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The plan administrator may, in its discretion, permit participants to make limited transfers of NSOs.
EFFECTIVE DATE
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Effective Date.
STOCKHOLDER APPROVAL DATE
- Stockholder Approval Date.