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Stock Option Agreement
Free stock option agreement template for granting an individual employee or contractor stock options under a company's equity plan.
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This free stock option agreement covers 1. Grant of Option, 2. Vesting Schedule, 3. Exercise Period, 4. Method of Exercise, 5. Type of Option with 10 clearly marked [placeholder] fields to fill in — built for small businesses and individuals documenting a loan or expense putting financial terms in writing so both sides have a clear, shared record. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Stock Option Agreement
This Agreement is made on [Date] between [Company Name], a [State] corporation (the "Company"), and [Optionee Name] (the "Optionee"), under the Company's [Stock Option Plan Name] (the "Plan").
1. Grant of Option
The Company grants the Optionee an option to purchase [Number of Shares] shares of the Company's [Class of Stock] (the "Option") at an exercise price of [Exercise Price] per share (the "Exercise Price"), subject to the terms of this Agreement and the Plan.
2. Vesting Schedule
The Option vests as follows: [e.g. 25% on the first anniversary of the Vesting Commencement Date of [Date], with the remainder vesting monthly over the following 36 months], subject to the Optionee's continued service through each vesting date.
3. Exercise Period
The Option may be exercised, to the extent vested, until the earlier of [Expiration Date, e.g. 10 years from the grant date] or [Period, e.g. 90 days] after the Optionee's termination of service, except as otherwise provided in the Plan.
4. Method of Exercise
The Optionee may exercise the Option by delivering written notice to the Company along with payment of the Exercise Price by [Payment Method — e.g. cash, check, or net exercise, if permitted under the Plan].
5. Type of Option
This Option is intended to qualify as [an Incentive Stock Option ("ISO") under Section 422 of the Internal Revenue Code / a Non-Qualified Stock Option ("NSO")], subject to applicable tax rules and limits.
6. Transferability
The Option is not transferable other than by will or the laws of descent and distribution, and may be exercised during the Optionee's lifetime only by the Optionee.
7. Effect of the Plan
This Agreement is subject to all terms of the Plan, which is incorporated by reference. In the event of a conflict, the Plan controls.
Company: ______________________ Date: ____________ Optionee: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal or tax advice. Stock option grants involve complex tax consequences (including ISO vs. NSO treatment and 409A valuation requirements) — consult a licensed attorney and tax advisor before issuing or accepting one.*
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What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 7 standard sections: 1. Grant of Option, 2. Vesting Schedule, 3. Exercise Period, 4. Method of Exercise, 5. Type of Option, 6. Transferability, …
- 10 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Informal lending & reimbursements
Money changing hands between people or a business and its team, without a bank's paperwork.
FAQ
Is this stock option agreement template really free?
Yes. Like every template in docstoc's library, this stock option agreement is free to use, with no account or signup needed to view, edit, or download it.
What does this stock option agreement cover?
This finance template includes 1. Grant of Option, 2. Vesting Schedule, 3. Exercise Period, 4. Method of Exercise. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. Financial documents like this can touch usury limits, lending disclosure rules, or tax treatment that vary by state and by amount — details a general template can't know. Have an accountant or attorney review the actual terms before money changes hands based on this.
Can I edit the wording?
Yes — edit directly on the page, adjust any section or clause, and re-fill the 10 placeholder fields to match your situation before downloading a PDF. It's a starting structure, not a rigid script.
Where can I find more free templates like this?
Browse more free finance and related document templates in the docstoc library at /document-templates/.
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