Equity Grant Documentation: Clozure AI General Counsel

Your outside counsel charges $750/hr to review a 12-page NDA. Lex reviews it in 90 seconds, flags the 3 problematic clauses, and tracks every contract you've ever signed. For equity grant documentation—stock option plans, restricted stock agreements, and 409A valuations—the math is even more brutal. A single grant package can cost $2,000 in legal fees and take two weeks of back-and-forth. Lex does it in 15 minutes, for pennies.

The Equity Grant Documentation problem most teams have

Equity grants are supposed to attract and retain top talent. Instead, they become a bottleneck. Three specific, painful problems plague B2B SaaS teams:

1. $2,500 per grant package – Outside counsel charges $500–$750/hour to draft a simple stock option agreement. With board consents, subscription letters, and 83(b) election instructions, a single hire can cost $2,500 in legal fees. For a team hiring 20 people a year, that's $50,000 down the drain.

2. 14-day average turnaround – Manual drafting requires emailing counsel, waiting for intake forms, reviewing drafts, and signing. The average cycle from offer acceptance to signed grant agreement is 14 days. In that window, candidates get nervous and competitors poach.

3. 22% error rate in manual grant tracking – Spreadsheets and PDFs fail. Missed vesting start dates, incorrect exercise prices, and lost 83(b) election filings create tax nightmares and employee distrust. One mispriced grant can trigger IRS penalties of $10,000+ per employee.

How Lex owns Equity Grant Documentation end-to-end

Lex doesn't just review contracts—Lex owns the entire equity grant lifecycle. Here's how:

• AI contract review – Lex ingests your existing equity plan documents, board resolutions, and prior grant agreements. She learns your company's specific templates, vesting schedules, and approval thresholds. When a new grant is requested, Lex drafts the stock option agreement, restricted stock purchase agreement, and all ancillary documents in minutes—not weeks.

• Regulatory change monitoring – Equity compensation is a moving target. The SEC updates Rule 701 thresholds. The IRS adjusts Section 422 incentive stock option limits. State blue-sky laws change. Lex monitors regulatory changes daily and automatically updates your grant templates to stay compliant. No more surprise lawsuits from stale documents.

• E-signature orchestration – Lex sends the signed grant package to the employee, the board secretary, and your cap table administrator simultaneously. She tracks signing order, sends reminders, and archives the executed documents in your secure repository. No more "I forgot to sign" emails.

• Dispute documentation – When an employee questions their grant (vesting date, exercise price, or forfeiture terms), Lex retrieves the exact signed document, the board resolution authorizing the grant, and the email thread with the offer letter. She produces a compliance-ready summary in seconds. For litigation prep, Lex can produce a complete grant history for any employee across all years.

A concrete Lex workflow

Scenario: Acme SaaS, a 50-person Series B company, hires a VP of Engineering. They need a stock option grant with a four-year vesting schedule and a one-year cliff.

Before Lex:

• The VP of Engineering receives an offer on Monday. The CEO emails outside counsel: "Please draft a standard NSO for our new VP Eng."
• Outside counsel replies 48 hours later with a 12-page intake form. The CEO fills it out on Wednesday.
• Counsel drafts the agreement by Friday. The CEO reviews it over the weekend—finds two errors (wrong vesting start date, missing acceleration clause) and sends it back.
• Counsel corrects and returns on Tuesday. The CEO sends to the VP of Engineering on Wednesday. The VP signs on Friday. Total elapsed time: 11 days.
• Outside counsel bill: $2,100. CEO's distraction cost: 8 hours.

With Lex:

• Monday, 9:00 AM: The CEO opens Clozure and types: "Grant for Sarah Chen, VP Engineering, 20,000 NSO, 4-year vest, 1-year cliff, ISO-compliant."
• 9:02 AM: Lex drafts the stock option agreement, board consent, subscription agreement, and 83(b) election instructions. She cross-references the existing 2022 Equity Incentive Plan and applies the correct exercise price (based on the latest 409A).
• 9:05 AM: Lex sends the package to the CEO for approval via e-signature. The CEO reviews on mobile, approves at 9:07 AM.
• 9:10 AM: Lex sends the signing link to Sarah Chen. Sarah signs at 9:15 AM.
• 9:17 AM: Lex archives the executed documents, updates the cap table, and triggers a calendar reminder for Sarah's 83(b) election filing deadline.
• Total elapsed time: 17 minutes. Cost: $0 in legal fees (included in Clozure subscription). CEO distraction: 3 minutes.

Why Lex wins vs. hiring

Hiring a human General Counsel is the traditional solution. But it's not the only solution—and it's rarely the best one for equity grant documentation.

Lex doesn't replace human judgment—she augments it. You still need a human GC for board strategy, complex M&A, and high-stakes litigation. But for equity grant documentation—a high-volume, pattern-based, compliance-heavy workflow—Lex is faster, cheaper, and more reliable.

Calculate your ROI

Enter your team size, current legal spend on equity grants, and number of hires per year. Lex will show you exactly how much you'll save in year one.

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