Document background
The Stock Option Agreement is a crucial document used by Hong Kong companies to provide equity incentives to employees, directors, or consultants. It forms part of the company's compensation strategy, offering the right to purchase shares at a fixed price, typically with a vesting schedule to encourage long-term commitment. This agreement must comply with Hong Kong's regulatory framework, including the Companies Ordinance and Securities and Futures Ordinance, particularly regarding share capital requirements and securities regulations. It's commonly used by startups, growth companies, and established corporations as a tool for attracting and retaining talent, while aligning the interests of option holders with company shareholders. The document includes essential details such as grant size, exercise price, vesting conditions, and exercise procedures, along with provisions for various scenarios such as employment termination or company restructuring.
