Option Agreement For Shares

State:
Multi-State
Control #:
US-EG-9495
Format:
Word; 
Rich Text
Instant download

Description

The Option Agreement for Shares provides a formal framework for an employee, referred to as the Optionholder, to purchase shares in the company as a form of compensation. This agreement outlines the terms of the option grant, including the number of shares, the exercise price, and the vesting schedule, which allows the Optionholder to acquire shares over a three-year period. The Option is exercisable for up to ten years, subject to employment status; if employment ends, the option terminates 90 days post-termination. Users are instructed to exercise the option by tendering payment and can opt for a cashless exercise by selling the shares immediately. This agreement also outlines notice requirements, governing law, and provisions regarding enforceability. Attorneys, partners, owners, associates, paralegals, and legal assistants may find this form useful for incentivizing employee performance, structuring compensation packages, and ensuring compliance with legal standards.
Free preview
  • Preview Option Agreement
  • Preview Option Agreement
  • Preview Option Agreement

How to fill out Option Agreement?

Whether you handle documents frequently or you need to file a legal report occasionally, it is essential to have a resource of information where all the examples are connected and current.

One task you must perform with an Option Agreement For Shares is to ensure that it is the latest edition, as it dictates whether it can be submitted.

If you want your quest for the latest document samples eased, look for them on US Legal Forms.

Utilize the search menu to locate the form you desire. Review the Option Agreement For Shares preview and description to ensure it is precisely what you need. After double-checking the form, click Buy Now. Choose a subscription plan that suits you. Create an account or Log In to your existing one. Enter your credit card information or PayPal account to complete the transaction. Choose the file format to download and confirm it. Eliminate confusion when dealing with legal documents. All your templates will be arranged and validated with an account at US Legal Forms.

  1. US Legal Forms is a collection of legal templates that includes nearly every document example you may seek.
  2. Search for the forms you need, examine their applicability immediately, and learn more about their functionality.
  3. With US Legal Forms, you gain access to over 85,000 template forms across various fields.
  4. Locate the Option Agreement For Shares examples in just a few clicks and save them at any time in your account.
  5. A US Legal Forms account will enable you to obtain all the samples you need with ease and minimal hassle.
  6. Simply click Log In in the site header and navigate to the My documents section with all the forms you require at your fingertips, so you won't have to spend time searching for the correct template or verifying its authenticity.
  7. To acquire a form without an account, follow these steps.

Form popularity

FAQ

About Stock Option Agreements Such an option, once granted to the employee, gives the employee the opportunity to benefit from increases in the company's share value by granting the right to buy shares at a future point in time at a price equal to the fair market value of such shares at the time of the grant.

Stock option agreement This document usually includes details like the type of stock options you get, how many shares you get, your strike price, and your vesting schedule (we'll get to this in the vesting section). Your stock option agreement should also specify its expiration date.

Initiate an Exercise-and-Sell-to-Cover Transaction Exercise your stock options to buy shares of your company stock, then sell just enough of the company shares (at the same time) to cover the stock option cost, taxes, and brokerage commissions and fees.

You can only sell your private company shares if you exercise your stock options and purchase those shares first. Depending on the strike price, though, you may not have enough cash to exercise your options, especially if your company requires you to hold onto it for a certain period of time before selling.

Option Contract ExampleYou expect Company XYZ's stock price to go up to $90 within the next month. You find out that you can buy an option contract for this company at $4.50 with a strike price of $75 per share. That means you'll pay $450 for your options contract ($4.50 x 100 shares).

Trusted and secure by over 3 million people of the world’s leading companies

Option Agreement For Shares