Employee share option agreement
- Length:5 pages (1200 words)
- Available in:Microsoft Word DOCXApple PagesRTF
If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.
We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.
You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.
We offer free support by email in respect of editing the document. You can also use our Document Review Service if you want to our legal team to check that the document will do as you intend.
Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.
About this agreement
This document will be bought by any company to set up a motivational option scheme for an employee working in any capacity.
It is assumed that the employee will achieve some goal or target to qualify. The option is triggered by the increase in the value of the company calculated as set out either in the agreement or in a schedule. The terms are for you to decide.
We have provided an example deal, but it is for you to enter details of your exact deal. That may be any arrangement you like.
We have provided for the optioner to pay for the option and also to pay for the shares on exercise of the option. Either or both provisions may be deleted or the sums increased or reduced.
Alternatives to this agreement
Net Lawman sells variations on this agreement for:
- the trigger being performance criteria;
- options for a third party: a consultant or contractor or marketer;
You can see these at Share option agreements.
This would also be a good time to put into place a new shareholders’ agreement whilst you are in charge of the shares. If you wait until the optioner is a new shareholder, you will have to take greater account of what he wants. Look at Shareholders' agreements.
The law in this agreement
This document is drawn under basic contract law: no special rules, no tax arrangements, no complications.
- Definitions and interpretation
- Optional reference to employment contract
- Option data
- Grant of option
- Conditions for exercise of option
- What happens if contract of employment is terminated before option is exercised
- Warranties by the company
- Draft notice by optioner to exercise the option
- Draft list of matters which may affect optioner’s decision
All rights reserved