Need to draft a Stock Option Award Letter?
Purchase this specific template and generate a unique bespoke document in minutes.
Create as many documents as you need with access to all our templates
Essentially, a Stock Option Award Letter, also known as a Letter for Grant of Option, is a letter given by the company to an employee. It states that it is granting him, her, or they, options in the company, according to the terms in the Employee Stock Option Plan (ESOP).
What is in a Stock Option Award Letter?
Date of Grant. The date that the stock option was awarded to the employee.
Exercise Price. The exercise price that can be used to purchase the option. This should have been set in the Employee Stock Option Plan.
Vesting Schedule. The vesting schedule specifies when the shares can be exercised or if any performance criteria need to be met.
Payment Method. The payment method stipulates how the employee should remit payment when they exercise the stock option.
When Should You Use a Stock Option Award Letter?
Chiefly, a stock option award is a great incentive for employees to help the company achieve its goals. Importantly, always send a formal letter to underscore the importance of the employee’s contribution.
To sum up, a Stock Option Award is a great way to incentivize employees. A Zegal template will guide you through the creation process with minimal effort and maximum protection.
The Zegal Template Library
Zegal’s template library represents a complete and curated list of essential and premium business templates that can be used directly, for everyday business needs. Importantly, whether you’re a startup or a larger enterprise, you will find that our Zegal automation solution allows anyone to create a legal agreement, any time, anywhere. All without a need for an expensive lawyer. Why do we do this? Well, we think that running your business day-to-day is important, and having these templates at your fingertips allows you to not miss a beat!
Lawyers draft and curate all of our legal templates for ease of understanding using plain English. Just fill out our guided questionnaires, and we will create the contract for you. Using our patent-pending expert rules engine, we automate the creation of complex legal contracts.
Try it for free today!
You Might Also Like
Along with this document, make sure you see these other templates in our library: