| name | stock-option-grant |
| title | Stock Option Grant Agreement |
| description | Drafts Stock Option Grant Agreements for ISOs or NQSOs under a company's equity incentive plan. Covers vesting, exercise mechanics, termination, tax (IRC §422/§409A), securities compliance, and change-in-control provisions. Use when drafting option grants, equity compensation agreements, or stock option award letters. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/stock-option-grant |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | employee-benefits |
| language | en |
Stock Option Grant Agreement
Drafts a binding option grant agreement governing ISO or NQSO issuance, integrated with the company's equity incentive plan.
Prerequisites
Collect before drafting:
Quick Start
- Confirm option type: ISO (§422) or NQSO — tax treatment diverges significantly
- Verify exercise price meets FMV floor (100% FMV for ISO; 110% for >10% shareholders)
- Draft agreement sections below in order
- Cross-check acceleration terms against all existing agreements
Document Sections
1. Caption & Recitals
Include: grant date (from board resolution), company legal name + state, optionee name, plan title with adoption/amendment dates, "Subject to and governed by the Plan" incorporation clause.
2. Definitions
| Term | Requirements |
|---|
| Option | ISO (§422) or NQSO; if ISO, savings clause converting excess to NQSO |
| Shares | Class of stock (typically common) |
| Continuous Service | Employee/director/consultant; parent/subsidiary service treatment |
| Exercise Price | Per-share price + FMV methodology |
| Vesting Commencement Date | Grant date, hire date, or specified date |
| Cause | Dishonesty, fraud, felony, fiduciary breach, material policy violation |
| Change in Control | Merger, asset sale, stock sale, board change — with threshold percentages |
