Free Stock Options Agreement HR Template
STOCK OPTIONS AGREEMENT
I. Introduction
This Stock Options Agreement ("Agreement") outlines the terms and conditions under which stock options are granted to the Employee, [Your Name], by [Your Company Name] ("Company").
A. Parties Involved
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Company: [Your Company Name]
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Employee:
This section identifies the parties involved in this Agreement.
B. Effective Date
This Agreement will be effective as of January 01, 2055.
The Agreement commences on this date and remains in effect until all obligations have been met.
C. Interpretation
Terms used in this Agreement shall have their standard legal definitions unless otherwise stated.
This section provides guidelines for how terms in the Agreement are to be interpreted.
II. Purpose
A. Objective
The main objective of this Agreement is to incentivize the Employee by offering a financial stake in the Company's future.
B. Company Goals
The Company aims to align the Employee's goals with those of the Company and its shareholders, promoting long-term commitment and performance.
III. Eligibility
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Ineligibility
Contractors, consultants, and part-time employees are not eligible for this stock option plan.
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Eligibility Criteria
Full-time employees with at least six months of continuous service are eligible to participate in this stock option plan.
Grant of Options
A. Number of Options
The Employee will be granted 3 options to purchase shares in the Company.
B. Option Price
Each option allows the Employee to purchase one share at a fixed price of [Price].
C. Grant Date
The options are granted as of January 02, 2055.
D. Scope
The options granted under this Agreement are subject to all terms, conditions, and restrictions as set forth in this Agreement and the Company's Stock Plan.
V. Exercise Period
A. Commencement
The exercise period for the options will commence one year after the grant date.
B. Expiration
Options must be exercised by January 02, 2055, after which they will expire.
C. Exercise Procedure
Details on how to exercise the options, including necessary forms and timelines, are available through the Company's HR department.
VI. Vesting Schedule
The options will vest according to the following schedule:
|
Year |
Percentage of Options Vested |
|
1 |
25% |
|
2 |
25% |
|
3 |
25% |
|
4 |
25% |
A. Accelerated Vesting
In specific instances like acquisition or merger, accelerated vesting may apply.
B. Cliff Vesting
No options will vest before the completion of the first year of service.
VII. Termination
A. Conditions
Should the Employee terminate their employment with the Company, unvested options will be forfeited immediately.
B. Notice Period
A 30-day notice period is required for voluntary termination.
C. Post-Termination Rights
Vested options can be exercised within 90 days after termination, unless specified otherwise.
VIII. Transferability
A. Restrictions
Options are not transferable and are bound by restrictions defined in the Company's Stock Plan.
B. Exceptions
Transfer is only allowed in specific cases like the Employee’s death, where it can be transferred to a designated beneficiary
IX. Taxes
A. Withholding
The Company will withhold applicable taxes at the time the options are exercised.
B. Reporting
The Employee is responsible for all tax obligations arising from the stock options.
C. Tax Liability
It is the Employee's responsibility to assess their own tax liability, which may vary depending on individual circumstances.
X. Regulatory Compliance
A. Documentation
All necessary documents must be completed and submitted for compliance with federal and state laws.
B. Securities Laws
Both parties are required to abide by all applicable securities laws when transferring or selling shares.
XI. Miscellaneous
A. Amendments
Any amendments to this Agreement must be in writing and signed by both parties.
B. Governing Law
This Agreement is governed by the laws of California
C. Entire Agreement
This document contains the entire agreement between the parties.
D. Dispute Resolution
Any disputes arising from this Agreement will be resolved through arbitration, as detailed in the Company's Employee Handbook.
For any questions or clarifications, please contact [Your Company Email] or call [Your Company Number]. You can also follow us on [Your Company social media] for updates.
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[Signature] |
[Signature] |
|
|
Employee January 02, 2055 |
Authorized Representative January 02, 2055 |
