The Plan Design and XYZ Plan Documents and Agreements module provides an in-depth understanding of the structural, operational, and governance elements that form the foundation of equity compensation programs. Topics include:

• Equity plan provisions: Covers administrative authority, compliance requirements, change-in-control terms, grant limitations, and shareholder approval provisions.
• Grant agreements: Reviews the typical provisions found in grant agreements, such as number of shares, vesting schedules, exercise prices, and treatment of awards upon termination.
• Operational policies: Highlights the importance of setting clear procedures for plan administration, including default vesting schedules and share reserve management.
• Plan mechanics: Addresses dividend payments, treatment of awards under employment changes and corporate transactions, and board powers such as interpretation, amendment, and repricing authority.
• XYZ plan review: Examines the XYZ Corporation Equity Incentive Plan and XYZ Employee Stock Purchase Plan to illustrate eligibility, award types, share limits, valuation, vesting, and tax payment processes in practice.

Key outcome: Equips participants to interpret and design equity plan documents and understand essential details of the XYZ plans for ECA exam preparation.