I am in the process of getting my high-tech startup going and as part of the process have begun negotiations with a consultant who in exchange for his expertise has asked for equity in the company. I have spent most of the past week reading about equity, stocks, ESOPs, vesting and anti-dilution agreements, and must say i feel a bit hazed by the whole thing.
My question are:
a. what would be considered an acceptable equity offer? (i dont mean the actual percentage figure, rather the "structure" of the offered equity: Are cliff provisions commonly used?what would be a "good" term for such an agreement? can i include milestones as provisions for vesting?)
b. where would i be able to have such a document drafted professionally?
c. do i need to define the value of the company, number of shares and price per share before entering such an agreement?
I would appreciate any input you might have on the matter.