LTSE Equity Release Notes - 2023

Add RSAs to departure workflows. When terminating an employee, LTSE Equity now provides workflows to stop vesting on outstanding restricted stock awards and initiate a repurchase, if desired. This complements the existing ability to stop vesting on option grants and apply exercise windows, prior to lapsing the grant.
Generate security agreements for stock and options Marked as issued. When stock and options are marked as issued in LTSE Equity, a security agreement is now generated that summarizes the key terms of the grant and attaches all uploaded documents.

Prevent stakeholders from requesting early exercise if not allowed. If "Can early exercise" is set to No and the grant has no vested, unexercised options, the “Request exercise” button will not appear to stakeholders.
Generate Signed Agreements for Restricted Stock Awards (RSAs). Wrapping up our work on security issuances, we’ve added similar upgrades to the RSA issuance workflow. Now, when issuing RSAs a document set must be applied to the grant, the issuance page allows you to see the impact of each grant on the relevant Stock Plans, and a signed agreement PDF is generated for each grant, outlining the terms and capturing relevant e-signatures.

Introducing 83(b) elections. When a qualifying event occurs (early exercise of an option grant or a grant of RSAs), Stakeholders will be asked if they’d like to make an 83(b) election. If yes, LTSE Equity will produce the completed form and guide the user through submission of the form to the IRS.
Generate Signed Agreements for Options Grants. Continuing our work on stock issuances, we’ve added similar upgrades to the options issuance workflow. Now, when issuing options a document set must be applied to the grant, the issuance page allows you to see the impact of each grant on the relevant Stock Plans, and a signed agreement PDF is generated for each grant, outlining the terms and capturing relevant e-signatures.
Track whether option grants allow early exercises. You can now track whether an option grant supports early exercises of unvested options. This informational field is required if a vesting schedule is applied to the grant and can be edited via the security inspector and the bulk editor.

Signed documentation for each grant. LTSE Equity now generates a signed, PDF package for each security issuance completed that details all terms and conditions. Currently released as a beta feature, this is in addition to information that has always (and continues) to be available within the app.
Repurchase RSAs. Following our recent improvements to repurchase workflows, we’ve now extended that same functionality to restricted stock.
More control in modeling convertible securities. LTSE Equity now supports a wider range of capitalization and liquidation terms. When creating new convertible securities, standard capitalization and liquidation terms will be set for the convertible security being created, however these defaults can now be overridden.

Stock Issuance Updates. LTSE has upgraded the issuance workflow for stock, introducing time saving features and providing Admins more control over the process. This new workflow is currently available as an opt-in beta feature.
- Admins can create drafts of multiple stock grants and issue them to stakeholders via a single action when ready.
- Signatories can sign multiple grants via a single action and Stakeholders are able to accept multiple grants via a single action.
- For certificate-free issuances, this update also generates a PDF package for each grant that can be shared outside of LTSE Equity with the Notice of Issuance and other attached documents (this now requires that a document set be attached to each new security issuance).
Introducing - beta features! New features and significant changes to existing workflows will initially be released behind a beta toggle. Admin users can opt their company into beta features from Company Settings and when encountering the new feature in the app.
Enhanced repurchase workflows. LTSE Equity now displays more information for each repurchase, groups repurchases within a dedicated view, and provides the ability to undo a repurchase. Please note that when Undoing a repurchase, Signatories will have to re-sign the “uncanceled” grant and Stakeholders will have to re-accept the grant.