Free Stock Option Agreement for Employees Template
Stock Option Agreement for Employees
This Stock Option Agreement (the "Agreement") is made and entered into as of May 9, 2050 by and between [Your Company Name], a corporation organized and existing under the laws of [State], with its principal office located at [Your Company Address] (the "Company"), and Jarrett Bailey, an employee of the Company (the "Employee").
1. Purpose
The purpose of this Agreement is to promote the success of the Company by providing an incentive for employees to continue their service with the Company, by affording such employees an opportunity to acquire a proprietary interest in the Company through the grant of stock options.
2. Grant of Option
2.1 Option to Purchase
The Company hereby grants to the Employee an option (the "Option") to purchase 6 shares of the Company's common stock, subject to the terms and conditions of this Agreement and the Company's Equity Incentive Plan (the "Plan").
2.2 Option Price
The purchase price of the shares subject to the Option shall be $1200 per share, which is no less than 100% of the fair market value of the common stock on the date of grant.
3. Vesting Schedule
The Option shall become vested and exercisable in accordance with the following schedule:
Year 1 (One-Year Cliff): 25% of the Option shall vest on the first anniversary of the grant date, provided that the Recipient remains engaged with the Company.
Monthly Vesting Thereafter: The remaining 75% of the Option shall vest in equal monthly installments over the following 36 months.
No portion of the Option may be exercised until it becomes vested in accordance with the above schedule. Any unvested portion of the Option shall remain unexercisable until the applicable vesting date. If the Recipient’s engagement with the Company is terminated prior to the vesting of any portion of the Option, that portion shall be forfeited, unless otherwise provided by the terms of this Agreement.
4. Term of Option
Unless earlier terminated in accordance with this Agreement, the Option shall expire on the May 10, 2060, which is ten (10) years from the date of grant.
5. Termination of Employment
In the event that the Employee ceases to be employed by the Company for any reason, the vested portion of the Option shall remain exercisable for a period of 15 days following the date of termination or until the expiration of the term of the Option, whichever is shorter. Any unvested portion of the Option shall terminate immediately upon termination of employment.
6. Restrictions on Transfer
The Option and any rights hereunder shall not be sold, assigned, transferred, pledged, or otherwise disposed of, except by will or by the laws of descent and distribution.
7. Compliance with Laws
The issuance and transfer of shares pursuant to the exercise of the Option shall be subject to compliance by the Company and the Employee with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company's shares may be listed at the time of such issuance or transfer.
8. Miscellaneous
8.1 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to conflict of law principles.
8.2 Entire Agreement
This Agreement and the Plan constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter.
8.3 Amendments and Waivers
No amendment or modification of this Agreement shall be valid unless it is in writing and signed by both parties. No waiver of any provision of this Agreement shall be effective unless it is in writing and signed by the party granting the waiver.
9. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.
[YOUR COMPANY NAME]
Jarrett Bailey
