This document provides notice to an individual or entity (the “Optionholder”) that a
corporation grants them an option to purchase stock at a specific price. This notice sets
forth the number of shares that can be purchased, the price at which they can be
purchased, and the date the option can be exercised. This document should be used
by small businesses or other entities that want to grant an option to purchase stock at a
specific price to an Optionholder.
STOCK OPTION GRANT NOTICE
_____________________ (the “Company”), pursuant to its [Insert name of Plan] (the “Plan”),
hereby grants to Optionholder an option to purchase the number of shares of the Company’s
Common Stock set forth below. This option is subject to all of the terms and conditions as set
forth herein and in the Stock Option Agreement which is attached hereto and incorporated herein
in its entirety as Exhibit A.
Date of Grant:
Vesting Commencement Date:
Number of Shares Subject to Option:
Exercise Price (Per Share):
Total Exercise Price:
Type of Grant: Incentive Stock Option Non-Statutory Stock Option
Exercise Schedule: Same as Vesting Schedule Early Exercise Permitted
Vesting Schedule: [Insert Vesting Schedule]
Payment: Pursuant to the terms of the Stock Option Agreement.
1. I understand that all sales of Purchased Shares are subject to compliance with the
company's policy on securities trades.
2. In the case of a Non-Statutory option, I understand that I must recognize ordinary income
equal to the spread between the fair market value of the stock on the date of exercise and the
exercise price. I further understand that I am required to pay withholding taxes at the time of
exercising a Non-Statutory option.
3. I hereby acknowledge that I received and read a copy of the prospectus describing the
Company's [insert name of Company’s Stock Plan] and the tax consequences of an exercise.
4. I acknowledge and agree that this Option is granted subject to and in accordance with the
terms of the Stock Option Agreement.
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(STOCK OPTION AGREEMENT)
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