This employee stock option agreement template has 12 pages and is a MS Word file type listed under our finance & accounting documents.
Sample of our employee stock option agreement template:
EMPLOYEE STOCK OPTION AGREEMENT This Employee Stock Option Agreement ("Option Agreement") is made and entered into as of the date of grant set forth below ("Date of Grant") BETWEEN: [COMPANY NAME] (the "Company"), a corporation organized and existing under the laws of [COUNTRY], with its head office located at [ADDRESS OF THE COMPANY], AND: [EMPLOYEE FULL NAME] (the "Participant"), an individual with his/her main address at [ADDRESS]. Pursuant to your Stock Option Grant Notice ("Grant Notice") and this Option Agreement, [COMPANY NAME] Inc., a [STATE] corporation (the "Company") has granted you an option under its [YEAR] Equity Incentive Plan (the "Plan") to purchase the number of shares of the Company's Common Stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice. The option is granted to you effective as of the date of grant set forth in the Grant Notice (the "Date of Grant"). If there is any conflict between the terms in this Option Agreement and the Plan, the terms of the Plan will control. Capitalized terms not explicitly defined in this Option Agreement or in the Grant Notice but defined in the Plan will have the same definitions as in the Plan. The details of your option, in addition to those set forth in the Grant Notice and the Plan, are as follows: DEFINITIONS In the following clauses: "Participant" means an individual who is a manager, employee or a contractor of the Company, who is selected at the discretion of the [SPECIFY] of the Company to be granted stock options; "Option" means the stock option that entitles the Participant to acquire shares of the Company during the Exercise Period against payment of the Exercise Price provided for in Section 3. "Option Shares" means the total amount of [TYPE OF SHARES] shares of the Company which are made available for purchase by the Participant by means of the present Employee Stock Option Agreement; "Date of Grant" means the date on which the Participant and the Company enter into this Employee Stock Option Agreement and on which the Participant receives the Option; "Vesting" means the to the process by which the Participant acquires the Option Shares granted to him/her through this Employee Stock Option Agreement. Subject to the provisions hereof, your Option will vest as set out in your Grant Notice. The vesting will cease upon termination of your continuous service; "Vesting Period" is the period of time before shares are unconditionally owned by an employee. If that person's employment terminates before the end of the vesting period, the company can buy back the shares at the original price. "Vesting Schedule" means a table indicating the number of Option Shares that will vest throughout the Vesting Period, which the Participant may purchase after the Vesting Period or upon the occurrence of any of the triggering events under section 16,17 and 18; "Vested Option Shares" means a portion of the total amount of Option Shares which the Participant has earned the right to acquire throughout the Vesting Period and the total amount of Option Shares which the Participant has earned the right to acquire after the Vesting Period has ended; "Anniversary Date" means the date that is [NUMBER OF YEARS] years from the Date of Grant of the Option and as of which the Option may be exercised; "Exercise" means the purchase of all Option Shares by the Participant after the Vesting Period has ended, or the purchase of a fraction of vested Option Shares by the Participant upon the occurrence of certain triggering events. "Exercise Price" means the price, determined at the Date of Grant, at which an Option Share can be purchased by the Participant; "Exercise Period" means the period of time during which the Participant may purchase the Option Shares; OPTION GRANT On the date of entry into force of this Agreement, (the "Grant Date"), the Company grants the participant an option (the "Option") to purchase the aggregate number of [NUMBER OF SHARES] [TYPE OF SHARES] shares of the Company as described above (the "Option Shares") against payment of the exercise price per share of [PRICE PER SHARE] indicated above (the "Exercise Price") during the exercise period beginning on [DATE THE EXERCICE PERIOD BEGINS] and ending on [DATE THE EXERCICE PERIOD ENDS], subject to all the terms and conditions of this Agreement. EXERCISE PRICE The exercise price is set at [PRICE] per share, which represents the fair market value per share of the Company on the grant date, determined by [SPECIFY] of the Company. Also, the number of common shares subject to your option and your exercise price per share may be adjusted from time to time for capital adjustments. METHOD OF PAYMENT Payment of the exercise price is due in full upon exercise of all or any part of your option. You may elect to make payment of the exercise price of your option in cash or by check or in any other manner permitted above, which may include one or more of the following: Bank draft or money order payable to the Company. WHOLE SHARES You may exercise your option only for whole Common Shares. VESTING RIGHTS Subject to the provisions hereof, your Option will vest as set out in your Grant Notice. The vesting will cease upon termination of your continuous service. EXERCISE. You may exercise the vested portion of your option during its term by delivering a notice (in a form designated by the Company) together with the exercise price to the Company's Plan administrator, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require. You may exercise the vested portion of your option (and the unvested portion of your option if your Grant Notice so permits) during its term by (i) delivering a Notice of Exercise (in a form designated by the Company) or completing such other documents and/or procedures designated by the Company for exercise and (ii) paying the exercise price and any applicable withholding taxes to the Company's Secretary, stock plan administrator, or such other person as the Company may designate, together with such additional documents as the Company may then require. By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (i) the exercise of your option, (ii) the lapse of any substantial risk of forfeiture to which the shares of Common Stock are subject at the time of exercise, or (iii) the disposition of shares of Common Stock acquired upon such exercise. If your option is an Incentive Stock Option, by exercising your option you agree that you will notify the Company in writing within fifteen (15) days after the date of any disposition of any of the shares of the Common Stock issued upon exercise of your option that occurs within two (2) years after the Date of Grant or within one (1) year after such shares of Common Stock are transferred upon exercise of your option. EXERCISE PRIOR TO VESTING ("EARLY EXERCISE") If permitted in your Grant Notice (i.e., the "Exercise Schedule" indicates "Early Exercise Permitted") and subject to the provisions of your option, you may elect at any time that is both (i) during the period of your Continuous Service and (ii) during the term of your option, to exercise all or part of your option, including the unvested portion of your option; provided, however, that: a partial exercise of your option will be deemed to cover first vested shares of Common Stock and then the earliest vesting installment of unvested shares of Common Stock;
