ESOP (Cake)

WHAT’S IT FOR?

An Employee Share Options Plan (ESOP) is a system used by companies to incentivise and retain valuable employees. Under an ESOP, companies offer employees shares or rights to buy shares in the company. These rights are usually provided with certain attached conditions, such as minimum employment periods and/or minimum KPIs which the employee much meet.

WHAT’S INCLUDED?

We’ll help prepare an Employee Share Option Plan according to the requirements of your business on the Cake platform.

This package Includes:

• Reviewing the company constituent documents for the purposes of approving the ESOP
• Setting up the ESOP Plan Rules and template Offer Letter on Cake
• Phone consultations (up to 60 minutes) for general advice surrounding the establishment and maintenance of your ESOP
• 1 x complimentary amendment to the final draft of the ESOP Plan Rules that we provide you, as long as you request the amendments within 10 business days of us delivering the final draft

Any requests for assistance on the Cake platform or advice regarding the ESOP may incur an additional fee.

Please note that this package:

• assumes the advice we provide will be in relation to an ESOP consistent with the ATO start up concession only, and will not include custom requirements. If significant edits are required to the ESOP, we may quote for additional fees.
• does not include making adjustments to the Shareholders Agreement or Independent Contractors Agreement. If, following a review, adjustments are required, we may we may quote for additional fees.
• does not include any tax, structuring, or financial advice, or providing advice to any employees or participants in their individual capacity.

Please note that you are required to obtain a valuation of your company at the time of the grant in order to grant options in accordance with the startup concession scheme. This can be obtained through a third party partner for an additional fee. If you do not intend to grant the options now, it may be better to wait until closer to the time of the grant to avoid having to get a valuation again.