How to set up an ESOP on Clara
Updated over a week ago

This article explains how you can set up a new ESOP on Clara using our template legal documents and cap table management tools.

Before you set up your ESOP, make sure you have done the following:

There are two steps to setting up an SIP on Clara. First, you must create a pool of options using our Share Incentive Plan tool. Once that has been created, you can start granting options to your employees and advisors.


Set up the SIP

1. Go to the Generate Documents tab

This can be found via the blue plus button.

Go to the Generate Documents tab

2. Click on Share Incentive Plan (ESOP)

Fist you need to set up a Share Incentive Plan. You can use this tool to generate a Share Incentive Plan, a FAQ, and a Board Resolution approving the creation of the SIP.

Click on Share Incentive Plan (ESOP)

3. Name your Share Incentive Plan

Select under which company the plan should be set up. We recommend this is set up using your HoldCo or TopCo.

Name your Share Incentive Plan

4. Populate the form

Populate all required fields and provide information about the company and the share incentive plan. Then click Generate Document.

Populate the form

5. Get Signatures

You can circulate the Share Incentive Plan to the corporate signatories using the blue button. You can also click Save & Close, saving the plan as a draft in the data room.

Get Signatures

6. Confirm corporate signatories

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Confirm corporate signatories

7. Navigate to the Options (ESOP) tab

You can view the ESOP plan on your cap table via the Options (ESOP) tab. The ESOP will be created in Draft mode. Once the corporate signatories have signed, the plan automatically change to Published.

Navigate to the Options (ESOP) tab

Grant Options

8. Generate options to your employees

Now that your ESOP is set up, you can start granting options to employees. Click on Generate a new grant to start this process.

Generate options to your employees

9. Click on Grant Agreement (ESOP)

Use this tool to generate a Grant Agreement for an employee

Click on Grant Agreement (ESOP)

10. Name your Grant Agreement

Provide information about the participant and select the share incentive plan from a drop down menu.

Name your Grant Agreement

11. Select a Participant

If the employee is not yet listed in the drop down list, you can use the add individual stakeholder option to add them to the list.

Select a Participant

12. Fill in the form

Fill in all required fields, including information about the number of options and the vesting schedule.

Fill in the form

13. Click on Generate Document

Click on Generate Document

14. Click Get Signatures

You can send the document for signing or you can click Save & Close to send it to the data room as a draft.

Click Get Signatures

15. View Grant Agreement in the Data Room

View Grant Agreement in the Data Room

16. View the Grant in the Cap Table

The Grant status will be Draft at first. Once all parties have signed it will automatically update to Published.

View the Grant in the Cap Table

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