transcripts/24-Types-of-stock-option-plans.srt

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When we discussed the Atom 60 stock options framework, we spoke about the two broad objectives

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for designing a stock options scheme under the Y dimension.

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You could design a scheme to reward your team for their past contribution or to incentivize

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them for their future contribution.

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In Atom we have created two categories of schemes for you.

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A growth scheme which you can use for rewarding their future contribution and a Grasya scheme

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to reward their past contribution.

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When you create a new scheme, you will choose one of these two categories.

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Use them to clearly demarcate your objectives.

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A Grasya scheme is usually created once to clear a backlog that you might have in terms

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of rewarding people.

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It could carry different terms such as a lower price and a lower vesting period depending

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upon your specific situation.

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So imagine your growth scheme as a regular stock options scheme where options could perhaps

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be granted at the current market price with a four year vesting.

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You will grant stock options under your growth scheme constantly as more people join the

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organization.

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You might use the Grasya scheme never or perhaps once, sometimes twice in order to

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set some things right.

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So if you never need to use your Grasya scheme that is quite alright.

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But if you do need it, it is there.

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Now since both these schemes might have different legal terms, you would also need to obtain

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separate shareholder approvals for the growth and the Grasya schemes.

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This is because the shareholders should have the opportunity to approve one and reject

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the other.

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So please ensure that you take two separate approvals for both these schemes.

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You will also create two separate legal documents for the growth and the Grasya schemes, since

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their terms might be different.

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Even though they look almost identical to each other except for a few sentences, you

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must create two separate legal documents to clearly demarcate the two schemes with

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different terms.