Grant Description
Exact number and class of shares, grant type (restricted, fully vested, option), and any conversion mechanics. Clear grant language prevents later disputes over quantity or type.
A written agreement reduces ambiguity about compensation, tax treatment, and transferability while documenting conditions that trigger stock issuance.
These agreements are used by companies, brokerages, and independent sales agents when stock is used to compensate services or introduce business.
Parties should confirm securities law compliance, tax implications, and any employer or broker-dealer reporting before finalizing the agreement.
| Field | Configuration |
|---|---|
| Signature Order | Sequential signing: issuer signatory first, then recipient |
| Authentication | Email + SMS OTP for recipient; SSO for internal signers |
| Audit Trail | Capture IP, timestamps, and certificate of completion |
| Document Locking | Prevent edits after final signature |
Choose an eSignature platform that supports secure authentication, audit trails, and the document formats you need.
Preserve a copy in immutable PDF/A and store signed records with access controls and a retained audit trail for regulatory review.
Exact number and class of shares, grant type (restricted, fully vested, option), and any conversion mechanics. Clear grant language prevents later disputes over quantity or type.
Detailed vesting milestones, cliff periods, and acceleration triggers. Specify treatment on termination, change in control, and performance failures to avoid ambiguity.
Lock-up, right-of-first-refusal, and legend requirements. Identify resale registration or exemption reliance and any hold periods tied to securities law compliance.
Who pays taxes and how withholding is handled (sell-to-cover, cash). Clarify reporting obligations and responsible party for issuing tax forms.
Conditions under which issuer may repurchase shares or recover compensation, including pricing formula and notice procedures.
Designate the state law that will govern interpretation and disputes and identify the chosen forum or arbitration specification if any.
Attach an up-to-date capitalization table showing pre- and post-issuance ownership percentages to reflect dilution from the grant.
If cash or mixed consideration applies, show amounts, schedules, and acceptable payment methods and accounts.
Attach resolution or minutes authorizing the issuance with dates and signatures to document corporate authority.
Provide the required legend or disclaimer to be placed on issued stock certificates or electronic records per securities law.
Effective date governs rights; actual stock issuance may occur later upon board action.
Compensation treated as income may require timely 1099 reporting to recipients and IRS.
Collect W-9 from recipients before payment to avoid backup withholding at 24%.
Record board approval contemporaneously to document corporate authority.
Coordinate with payroll or tax advisors to timely include equity compensation on required returns.
Parties sign and date the agreement, initiating obligations and vesting clocks.
Board or authorized committee approves issuance and documents the decision in minutes.
Shares issued, cap table updated, and certificates or ledger entries created.
Issuer prepares necessary tax reporting and provides recipient statements for the tax year.
| Criteria | Stock Commission Agreement | Cash Commission Agreement |
|---|---|---|
| Purpose | equity-based compensation | immediate cash payment |
| Consideration Type | shares or options | currency |
| Tax Reporting | may create taxable event on vest/issuance | reported as ordinary income |
| Transfer Restrictions | often substantial | usually none |
| 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 trial | Varies | Varies | Varies | Varies |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
A startup grants restricted stock units to a finder for closing client deals
A registered broker receives option grants for introducing institutional investors