Employee Stock Option Plan Template

Purpose of the plan this stock option plan is intended to promote the interests of the companyby providing eligible persons with the opportunity to acquire a proprietaryinterest or otherwise increase their proprietary interest in the corporationas an incentive for them to remain in the service of the corporation.
Employee stock option plan template. This employee stock options template includes a list of terminology used in the contract as well as an example of a vesting schedule table in the appendix. 2012 equity incentive plan. Stock option agreement. Employee stock options are commonly viewed as a complex call option on the common stock of a company granted by the company to an employee as part of the employees remuneration package.
Companies can offer esos as part of an equity compensation plan. These grants come in the form of regular call options and give an employee the right to buy the companys stock at a specified. An employee stock option eso is a label that refers to compensation contracts between an employer and an employee that carries some characteristics of financial options. There are many reasons why we believe this is one of the strongest set of stock plan forms available but one is that they allow for easy customization of stock option exercise terms.
An option agreement grants to the holder of the options a right to purchase stock at a set price sometime in the future. If the last day of the termination period set forth in section 1 is during such a. Optionee is to render valuable services to the corporation or a related entity and this agreement is executed pursuant to and is intended to carry out the purposes of the plan in connection with the corporations grant of an option to optionee. Employee stock option plans esops motivate startup employees by aligning their incentives with the growth of the business.
This letter only applies to an offer to employees under the exclusion for employee share purchase schemes set out in the financial markets conduct act 2013 fmca. Startup employee stock option plans. The policy prohibits officers directors employees and consultants of the company and its subsidiaries from trading in securities of the company during certain blackout periods as described in the policy. Overview and best practices.
Template share option deed see the share options section of the templates page on our website and it is to be sent to employees who are to be offered share options.