Employee Stock Option Agreement
Equity compensation contract granting employees rights to purchase company stock, covering vesting schedules, exercise terms, restrictions, and tax implications for ownership participation.
Key Clauses
Grant Of Option
Establishes number of shares, exercise price, and basic terms for stock option grant.
Vesting Schedule
Timeline for earning stock option rights, typically based on continued employment duration.
Exercise Terms
Procedures, payment methods, and deadlines for purchasing vested stock options.
Restrictions
Limitations on stock option transfer, exercise timing, and post-termination exercise periods.
Tax Implications
Disclosure of potential tax consequences and employee responsibilities for tax compliance.
Governing Law T
Defines governing law t terms and conditions.
Use This Template
When You Need This
- Providing equity incentive compensation to attract and retain key employees
- Creating long-term retention tool through multi-year vesting schedules
- Aligning employee interests with company growth and shareholder value creation
- Offering competitive compensation package including ownership participation for startups