Document background
The Option Grant Agreement is a crucial document used in German corporate practice to formalize the granting of stock options to employees, executives, or consultants as part of equity-based compensation arrangements. This agreement is particularly important in the German market where companies must navigate specific regulatory requirements under the Stock Corporation Act (Aktiengesetz) and other relevant legislation. The document typically follows any supervisory board or shareholder approvals required under German law and sets out comprehensive terms including vesting conditions, exercise procedures, and tax implications. It's commonly used by both established corporations and growth companies to attract, retain, and motivate key personnel by offering them the opportunity to participate in the company's future growth. The agreement must be carefully structured to comply with German corporate, securities, and tax laws, while also addressing specific requirements for different types of option recipients.
