ESOP

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 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.

This package Includes:

• Reviewing the company constituent documents
• Drafting the ESOP Plan Rules
• Advising on variables required to prepare offer letter
• 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
• Optional: Preparing offer letters to your first round of ESOP participants
• Optional: Preparing the required board and member resolutions

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.