Free Stock Option Agreement Template
Stock Option Agreement
1. Purpose
This Stock Option Agreement ("Agreement") is entered into by and between the parties identified below to set forth the terms and conditions under which stock options will be granted to the Optionee by the Company. The purpose of this Agreement is to advance the interests of the Company by providing the Optionee with an incentive to achieve long-term objectives of the Company.
2. Definitions
2.1 "Company" shall refer to [Company Name], including its subsidiaries and affiliates.
2.2 "Optionee" shall refer to [Optionee Name], an employee, director, or consultant of the Company.
2.3 "Shares" shall refer to the shares of common stock of the Company.
2.4 "Grant Date" shall refer to the date on which the option is granted to the Optionee.
3. Grant of Option
The Company hereby grants the Optionee the option to purchase a total of [Number] shares of the Company's common stock (the "Option"), subject to the terms and conditions set forth herein, at an exercise price of [Price] per share. The Grant Date of this option is [Date].
4. Vesting Schedule
The option shall vest as follows: [Vesting Schedule Details]. Vesting of the option is contingent upon the Optionee's continuous service with the Company as an employee, director, or consultant.
5. Exercise of Option
5.1 Method of Exercise: The Optionee may exercise the option by delivering a written notice to the Company specifying the number of shares to be purchased and the aggregate purchase price, along with payment in full for the shares.
5.2 Payment: Payment shall be made in the form of cash, check, or any other method permitted by the Company.
6. Termination of Employment
In the event of the termination of the Optionee's employment or service with the Company, the option shall be exercisable to the extent vested on the date of termination and shall expire [Number] days following the termination, unless otherwise provided in this Agreement.
7. Non-Transferability of Option
The option shall not be transferable by the Optionee except by will or the laws of descent and distribution, and shall be exercisable during the Optionee's lifetime only by the Optionee.
8. Compliance with Laws
The issuance and delivery of shares pursuant to the exercise of the option shall comply with all applicable laws, rules, and regulations, including the requirements of any stock exchange upon which the shares may then be listed.
9. Miscellaneous
9.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
9.2 Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.
9.3 Amendment: This Agreement may only be amended or modified by a written agreement signed by both parties.
Signature
IN WITNESS WHEREOF, the parties hereto have executed this Stock Option Agreement as of the date set forth below.
[YOUR NAME]
Shareholder
Shareholder
