About to receive an equity grant (small, PE-backed firm), read thru the paperwork and everything seems square, but it’s my 1st rodeo and there’s quite a bit of legal-ese I’d like to understand before I sign. Amount of shares and vesting schedule are clear, but want to make sure there are no red flags

Googling around a bunch, but anyone have a solid resource that’d help me get caught up? Or referral to someone who’s qualified to review these docs? Glad to move to DM if it’d help, thanks

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Posting as :
works at
You are currently posting as works at

PE it’s generally easy, they exit well you do well, they exit badly you get nothing.

Standard terms (rejoice if yours are better!):

1. Resign before exit = you get nothing

2. Exit below a decent return for the PE firm = you get nothing

3. Don’t exit = you get nothing

4. Get fired = nothing

5. Exit at a good MOIC = you get paid

Understand clearly what your upside and downside case scenario is, in particular how much equity you have and how your share price changes with the expected EV and cap structure of exit.

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