Context

When using Worthy's Equity Compensation feature, you can upload documents that contain your client's stock option information (or you can manually input the information if your client has provided it to you in a manner outside of their formal document.) Understanding what types of documents to look for and request from companies will help you gather the necessary information to input into the system.

Answer

Different types of equity compensation come with specific document names, though companies may use variations of these titles:

RSU (Restricted Stock Units):

• "Restricted Stock Unit Award Agreement"

• "RSU Grant Notice"

RSA (Restricted Stock Awards):

• "Restricted Stock Purchase Agreement" (since you often "purchase" them at a nominal value)

• "Restricted Stock Award Agreement"

ISO/NSO (Incentive/Non-Qualified Stock Options):

• "Stock Option Agreement"

• "Incentive Stock Option Grant Notice"

Additional forms you might encounter:

• Section 83(b) Election Form: Almost always attached to RSA agreements. This must be mailed to the IRS within 30 days of the grant.

• Exercise Notice: Attached to ISOs and NSOs. This form is completed when you want to purchase the shares.

Important notes:

• Companies may use different names for these documents, and equity information is sometimes included in employment contracts

• If your client needs to request their documents, asking for their "Stock Award Agreement" or "Stock Option Agreement" will typically put them on the right track

• Any document containing stock option information (number of shares, vesting schedule, type of stock grant) can be uploaded to Worthy's Equity Compensation feature, regardless of the document's specific name

• The system will automatically sync relevant data from uploaded documents

Remember that while Worthy can provide data on historical and current stock prices (for public companies) and vesting schedules, it cannot provide opinions on when to sell - that decision remains between the advisor and client.