Service For Equity Agreement

While you may be able to rely on Rule 701 of the Securities Act to issue stock options to individual consultants, this waiver of the Securities Act`s registration requirements is not available when issuing equity to a company. If you want to issue equity to a company, it must be an accredited investor. If you are considering stock options, the written agreement must describe the exercise price, exercise rules and waiting period. All rules relating to the possibility of transferring shares should be included, as should all information relating to withholding tax. I was gullible and optimistic. I have worked for several startups, as consultants, for small ownership shares. I learned the hard way that startup stocks are a long extreme shot, at best quotas of millions to one. .