Stock Option Agreement
FinancialGrants employees or consultants the right to purchase company shares at a predetermined price. Covers vesting schedules, exercise procedures, and tax implications for equity compensation.
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Grants employees or consultants the right to purchase company shares at a predetermined price. Covers vesting schedules, exercise procedures, and tax implications for equity compensation.
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Key Clauses
- 1
Grant of Options
Specifies the number of shares, exercise price, and grant date.
- 2
Vesting Schedule
Defines the timeline and conditions under which options vest.
- 3
Exercise Period
Sets the window during which vested options can be exercised.
- 4
Termination Provisions
Details what happens to options when employment ends.
- 5
Tax Obligations
Outlines the tax responsibilities of the option holder.
When You Need This
- Offering equity compensation to attract key employees
- Granting stock options to advisors or consultants
- Establishing a formal employee stock option plan
Frequently Asked Questions
What is a Stock Option Agreement?
Grants employees or consultants the right to purchase company shares at a predetermined price. Covers vesting schedules, exercise procedures, and tax implications for equity compensation.
What should a Stock Option Agreement include?
A comprehensive stock option agreement should include: grant of options, vesting schedule, exercise period, termination provisions, tax obligations.
When do I need a Stock Option Agreement?
Offering equity compensation to attract key employees. Granting stock options to advisors or consultants. Establishing a formal employee stock option plan.
Is this template legally binding?
Templates provide a strong starting point, but we recommend having important agreements reviewed by a qualified attorney in your jurisdiction to ensure they meet local legal requirements.
Can I customize this template?
Yes — all bracketed [placeholder] fields can be replaced with your specific information. You can also add, remove, or modify clauses to fit your particular situation.
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