Option Agreement Sample With Price

• Category: Corporations - Public - Options
• State: Multi-State
• Control #: US-EG-9495
• Format: Word; Rich Text

Description

The Option Agreement sample with price is designed to provide a framework for granting an option to purchase shares of a company’s stock at a predetermined price. In this agreement, an employee, referred to as the Optionholder, is granted the right to purchase a specified number of shares at an exercise price of $0.28125 per share. The agreement outlines the terms of vesting, where the Option shares vest over a three-year period, with one-third becoming available each year. It also details the procedure for exercising the option and specifies the rights of the Optionholder prior to exercise. The form serves not only as a means to incentivize employees but also as a legal document ensuring compliance with the company's policies. It is crucial for attorneys, partners, owners, associates, paralegals, and legal assistants to understand the nuances of this agreement, including the governing law and the importance of proper documentation. This document can be utilized in situations where companies wish to reward employee performance or retain talent by offering stock options as part of a compensation package. By filling out the form, the involved parties ensure clarity in terms of rights and responsibilities associated with stock options.