Incentive Stock Option Grant

Incentive Stock Option Grant

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This is an example of an Incentive Stock Option Grant. An Incentive Stock Option, or an ISO, is a type of equity compensation that offers unique tax advantages.

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XYZ Company, Inc.

NOTICE OF GRANT OF STOCK OPTION 

 

            ________________________ (the “Optionee”) has been granted an option (the “Option”) to purchase certain shares of Common Stock of XYZ Company, Inc. pursuant to the XYZ Company, Inc. 200__ Stock Option Plan (the “Plan”), as follows:

 

Date of Option Grant:                                    [Effective date of board resolution] 

Number of Option Shares:                            

Exercise Price:                       $                        per share

Initial Vesting Date:                                        [six months from hire date] 

Option Expiration Date:        The date ten (10) years after the Date of Option Grant.  [unless person is 10% shareholders]

Tax Status of Option:             Incentive Stock Option.  (Enter “Incentive” or “Nonstatutory.”  If blank, this Option will be a Nonstatutory Stock Option.)

Vested Shares:                        Except as provided in the Stock Option Agreement, the number of Vested Shares (disregarding any resulting fractional share) as of any date is determined by multiplying the Number of Option Shares by the “Vested Ratio” determined as of such date as follows:

 

 

Vested Ratio

Prior to Initial Vesting Date

0

On Initial Vesting Date, provided the Optionee’s Service has not terminated prior to such date


1/8

Plus:

 

For each six month of the Optionee’s continuous Service from Initial Vesting Date until the Vested Ratio equals 1/1, an additional



1/8

 

By their signatures below, the Company and the Optionee agree that the Option is governed by this Notice and by the provisions of the Plan and the Stock Option Agreement, both of which are attached to and made a part of this document.  The Optionee acknowledges receipt of copies of the Plan and the Stock Option Agreement, represents that the Optionee has read and is familiar with their provisions, and hereby accepts the Option subject to all of their terms and conditions.

 

XYZ COMPANY, INC.                                                           OPTIONEE

 

By:                                                                                                                                                      

                                                                                    Signature

Its:                                                                                                                                                      

                                                                                    Date

Address:                                                                                                                                             

                                                                                    Address

                                                                                                                                                           

 

ATTACHMENTS:       200__ Stock Option Plan, as amended to the Date of Option Grant  

                                    Stock Option Agreement and Exercise Notice

 

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