A notice documenting a stock option grant to an employee, advisor, or contractor under a company’s equity incentive plan.
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Stock option grants have significant tax and securities law implications (including 409A valuation requirements in the U.S.). This is a simplified notice template — have this reviewed by counsel and issued consistent with the Company’s formal equity incentive plan.
This Stock Option Grant Notice ("Notice") is issued as of [Grant Date] by [Company Name] (the "Company") to [Recipient Name] (the "Recipient"), under the Company’s [Equity Incentive Plan Name] (the "Plan").
Number of shares subject to this option: [Number]. Exercise price per share: [Amount], determined per the Company’s most recent 409A valuation dated [Valuation Date]. Option type: [Incentive Stock Option / Non-Qualified Stock Option].
This option vests over [Number] years, with a [Number]-month cliff, after which it vests [monthly/quarterly] in equal installments, subject to Recipient’s continued service.
Vested options must be exercised within [Number] days after Recipient’s service ends (or as otherwise specified in the Plan), or they expire.
This grant is subject to the full terms of the Plan and the Company’s Stock Option Agreement, which Recipient will separately receive and sign; this Notice is a summary, not the complete legal terms.
Company Representative Signature: _______________________ Date: _______________
Recipient Signature: _______________________ Date: _______________