The Employee Stock Option Agreement serves as a crucial tool for companies to attract, retain, and motivate employees by offering them equity ownership opportunities. Commonly used in both public and private companies across the United States, this agreement defines the terms under which employees can purchase company stock at a predetermined price, typically subject to a vesting schedule. The document must comply with federal securities laws, IRC regulations (particularly regarding ISOs and NSOs), and state-specific corporate laws. It's particularly prevalent in high-growth companies and startups where equity compensation forms a significant part of the total compensation package.
Employee Stock Option Agreement for the United States
Create a bespoke document in minutes, or upload and review your own.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership of your information
Key Requirements PROMPT example:
Employee Stock Option Agreement
"I need an Employee Stock Option Agreement for our Series B startup to grant 50,000 ISOs to our new Chief Technology Officer, with a 4-year vesting schedule and 1-year cliff, starting March 1, 2025."
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
1. Parties: Identification of the company and the employee receiving options
2. Background: Context of the option grant and reference to any equity incentive plan
3. Definitions: Key terms including Exercise Price, Grant Date, Vesting Schedule, Option Shares
4. Grant of Option: Specific terms of the option grant including number of shares and exercise price
5. Vesting Schedule: Details of when and how options become exercisable
6. Exercise Provisions: Mechanics of exercising options and payment methods
7. Term and Termination: Duration of options and circumstances causing termination
1. Change in Control Provisions: Special terms applying in case of company sale/merger - recommended for companies considering potential exit events
2. Lock-up Agreement: Restrictions on sale of shares post-IPO - recommended for companies planning public offering
3. Right of First Refusal: Company's right to purchase shares before sale to third party - recommended for private companies
1. Notice of Exercise: Form for employee to use when exercising options
2. Tax Election Form: Section 83(b) election form if applicable
3. Equity Incentive Plan: Copy or summary of the underlying plan governing the options
4. Stockholder Agreements: Any applicable shareholder agreements that option holders must join
Authors
Relevant legal definitions
Agreement
Board of Directors
Cause
Change in Control
Code
Common Stock
Company
Continuous Service
Date of Grant
Disability
Employee
Exercise Price
Exercise Window
Fair Market Value
Good Reason
Grant Notice
Incentive Stock Option
Non-Qualified Stock Option
Option
Option Shares
Plan
Plan Administrator
Securities Act
Service Provider
Share
Stockholder Agreement
Termination Date
Transfer
Vested Portion
Vesting Commencement Date
Vesting Schedule
Board of Directors
Cause
Change in Control
Code
Common Stock
Company
Continuous Service
Date of Grant
Disability
Employee
Exercise Price
Exercise Window
Fair Market Value
Good Reason
Grant Notice
Incentive Stock Option
Non-Qualified Stock Option
Option
Option Shares
Plan
Plan Administrator
Securities Act
Service Provider
Share
Stockholder Agreement
Termination Date
Transfer
Vested Portion
Vesting Commencement Date
Vesting Schedule
Clauses
Grant of Option
Vesting Provisions
Exercise of Option
Method of Exercise
Term and Expiration
Termination of Employment
Transfer Restrictions
Securities Law Compliance
Tax Obligations
Lock-up Period
Right of First Refusal
Market Stand-off
Adjustments for Corporate Events
Change in Control
Drag-along Rights
Tag-along Rights
Representations and Warranties
Data Privacy
Notices
Amendment and Modification
Governing Law
Dispute Resolution
Entire Agreement
Severability
Restrictive Covenants
Confidentiality
Assignment
Administration
Stockholder Rights
Acknowledgments
Vesting Provisions
Exercise of Option
Method of Exercise
Term and Expiration
Termination of Employment
Transfer Restrictions
Securities Law Compliance
Tax Obligations
Lock-up Period
Right of First Refusal
Market Stand-off
Adjustments for Corporate Events
Change in Control
Drag-along Rights
Tag-along Rights
Representations and Warranties
Data Privacy
Notices
Amendment and Modification
Governing Law
Dispute Resolution
Entire Agreement
Severability
Restrictive Covenants
Confidentiality
Assignment
Administration
Stockholder Rights
Acknowledgments
Relevant Industries
Relevant Teams
Relevant Roles
Find the exact document you need
Equity Option Contract
A U.S.-governed contract establishing the terms for the right to buy or sell equity securities at specified terms.
find out more
Employee Stock Grant Agreement
A U.S. legal agreement outlining terms for granting company stock to employees, including vesting schedules and transfer restrictions.
find out more
Advisor Stock Option Agreement
A U.S.-governed agreement that establishes terms for granting stock options to company advisors as compensation for their services.
find out more
Option To Purchase Shares Agreement
A U.S.-governed agreement granting rights to purchase company shares at a preset price and conditions.
find out more
Option Grant Agreement
A U.S.-governed agreement that grants stock options to employees or other eligible recipients, specifying terms for future stock purchase at preset prices.
find out more
Phantom Share Agreement
A U.S.-governed agreement providing synthetic equity rights that mirror stock ownership benefits without actual share issuance.
find out more
Employee Share Agreement
A U.S.-governed agreement establishing terms for granting company shares to employees as part of compensation or incentive programs.
find out more
Employee Stock Option Agreement
A U.S. legal agreement granting employees the right to purchase company stock at preset terms under federal securities and tax laws.
find out more
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
Our bank-grade security infrastructure undergoes regular external audits
We are ISO27001 certified, so your data is secure
Organizational security
You retain IP ownership of your documents
You have full control over your data and who gets to see it
Innovation in privacy:
Genie partnered with the Computational Privacy Department at Imperial College London
Together, we ran a £1 million research project on privacy and anonymity in legal contracts
Want to know more?
Visit our Trust Centre for more details and real-time security updates.
Read our Privacy Policy.
.png)
.png)