Grant Description
Specify the exact number and class of units granted, grant date, whether units are phantom, restricted, or membership interests, and any initial conditions or contingencies affecting entitlement.
Use an Employee Unit Award Agreement to create clear, enforceable terms for equity awards, protect company interests, and align employee incentives. It reduces ambiguity about vesting, tax obligations, and transferability and supports compliance with securities and employment laws.
Typical users include employers, HR teams, company counsel, and employees participating in unit-based equity compensation plans.
Both employers and employees should review terms carefully and consult legal or tax advisors when complex vesting or transfer provisions apply.
Specify the exact number and class of units granted, grant date, whether units are phantom, restricted, or membership interests, and any initial conditions or contingencies affecting entitlement.
Define the vesting start date, cliff periods, installment schedules, acceleration triggers, and treatment of unvested units on termination or change of control per plan policies.
Describe employer withholding obligations, tax elections available to the recipient, information reporting responsibilities, potential withholding methods (cash, net settlement, sell-to-cover), and consequences of failing to satisfy withholding requirements.
State transferability limits, right of first refusal, company repurchase rights, legend requirements, applicable SEC or state securities exemptions, and restrictions on resale or pledging of awarded units.
Specify treatment on merger, acquisition, or IPO including acceleration of vesting, conversion mechanics, cash-out provisions, tax consequences, payment timing, and obligations regarding outstanding unvested units.
Reference definitions, governing equity plan, administrative procedures, amendment rights, arbitration or court remedies, and how disputes will be resolved including governing law and jurisdiction and notice procedures.
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day free trial | Varies by plan | Varies by plan | Varies by plan | Varies by plan |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
Digital signing supports PDF, DOCX, and in-person signing; select provider integrations compatible with payroll, HRIS, or equity management software.
A Series A startup granted units to early employees to align incentives and conserve cash while deferring salary increases.
A mid-size private company used unit awards to retain key engineers during product expansion and to align compensation with long-term performance goals.
| Field | Configuration |
|---|---|
| Signer Order | Sequential employer then employee signing |
| Authentication Level | Email link or SMS code; use KBA if needed |
| Reminder Cadence | Automated reminders every three to seven days |
| Retention Policy | Encrypted storage with retention per company policy |
| Signature Certificate | Attach audit trail and signer metadata |