Equity Agreement

Equity agreements with vesting that actually vests.

Draft equity incentive agreements for startup clients with cliff periods, acceleration triggers, exercise windows, and termination provisions that align founder and investor interests.

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The Attorney's Challenge with Equity Agreements

Startup attorneys draft equity agreements across multiple client companies, each with different cap table structures, grant types, and tax considerations. Vesting schedules without clear acceleration triggers leave recipients exposed in acquisitions. Exercise windows that are too short force departing team members to forfeit options they earned. Tax provisions that miss 83(b) election deadlines create unexpected liabilities. JR3 drafts equity agreements that address each of these failure points, producing terms that protect both the company and the individuals receiving equity.

Equity Drafting

From Grant Terms to Signed Agreement

Describe your client's equity grant type, recipient role, and company stage. JR3 drafts an equity agreement with vesting schedules matched to the grant purpose, exercise provisions with proper pricing and windows, acceleration triggers for change of control events, and tax-aware provisions including 83(b) election language. Review the terms, adjust cliff periods, and export an agreement ready for board approval and recipient signature.

Vesting schedules and cliff periods

Time-based or milestone-based vesting with configurable cliff periods, monthly or quarterly increments, and pause provisions for leaves of absence

Exercise terms and pricing

Strike price based on fair market value, exercise windows for current and former employees, cashless exercise options, and early exercise provisions

Acceleration triggers

Single and double trigger acceleration on change of control, with partial acceleration options for termination without cause or constructive termination

Tax provisions and 83(b) elections

Tax acknowledgment language, 83(b) election forms and filing instructions, and provisions addressing ISO qualification requirements

Stock option grants

ISO and NSO option agreements with exercise prices, vesting schedules, post-termination exercise windows, and early exercise provisions.

Restricted stock awards

RSA agreements with vesting conditions, repurchase rights at cost basis, 83(b) election provisions, and forfeiture terms for early departure.

Advisor equity grants

Advisor stock option or RSU agreements with monthly vesting, no cliff, defined scope of advisory services, and termination for inactivity.

Employee equity packages

New hire equity agreements with standard four-year vesting, one-year cliff, double trigger acceleration, and post-termination exercise terms.

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What Is JR3 and How Does It Draft Equity Agreements?

JR3 is an AI-centric document editing platform built for legal professionals, with specialized agents that understand equity compensation structures and their tax implications. It drafts equity agreements with vesting schedules matched to the grant type, proper exercise mechanics, acceleration provisions for change of control events, and tax-aware language including 83(b) election forms. Attorneys using JR3 produce client-ready equity documents that protect both the company and the recipients.

Learn more about Startup Legal Documents

Common questions

What is the difference between ISOs and NSOs in equity agreements?

Incentive stock options (ISOs) receive favorable tax treatment — no ordinary income tax at exercise if holding period requirements are met. But ISOs can only be granted to employees, have a $100,000 annual vesting limit, and must be exercised within 90 days of termination. Non-qualified stock options (NSOs) trigger ordinary income at exercise but have no recipient restrictions, no annual limits, and more flexible exercise windows. JR3 drafts the appropriate option type based on the recipient and grant structure.

What is an 83(b) election and when should it be filed?

How does single trigger vs. double trigger acceleration work?

What happens to unvested equity when someone leaves the company?

Draft Better Equity Terms for Every Client

Draft equity agreements for startup clients with proper vesting, acceleration triggers, and tax-aware provisions — ready for board approval and recipient signature in minutes.