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Employee Stock Option Agreement
"I need an Employee Stock Option Agreement for our New Zealand-based startup, offering 4-year vesting options to senior developers with a one-year cliff period and accelerated vesting provisions in case of acquisition."
1. Parties: Identification of the company granting the options and the employee receiving them
2. Background: Context of the agreement, including reference to employment status and option plan
3. Definitions: Key terms used throughout the agreement including Option, Exercise Price, Shares, Vesting Date, etc.
4. Grant of Option: Details of the stock option grant including number of shares, exercise price, and grant date
5. Vesting Schedule: Timing and conditions under which options become exercisable
6. Exercise of Options: Process and requirements for exercising options, including payment methods and notice requirements
7. Term and Expiration: Duration of the option grant and circumstances of expiration
8. Restrictions on Transfer: Limitations on transferring or assigning the options
9. Termination of Employment: Impact of employment termination on vesting and exercise rights
10. Compliance with Laws: Requirements for compliance with securities laws and other regulations
11. Tax Obligations: Tax implications and responsibilities of the option holder
12. General Provisions: Standard contractual terms including notices, amendments, and governing law
1. Change in Control Provisions: Special terms applying in case of company merger, acquisition, or other change in control
2. Lock-up Period: Restrictions on selling shares for a specified period after exercise, typically included for pre-IPO companies
3. Shareholder Rights: Details of rights as a shareholder after exercise, needed if different from standard shareholder rights
4. Clawback Provisions: Terms allowing company to recoup benefits in specific circumstances, often included for senior executives
5. International Supplement: Additional terms for employees in different jurisdictions, needed for multinational implementations
6. Non-Competition Clause: Restrictions on working for competitors, typically included for senior roles
7. Market Standoff Agreement: Restrictions on share sales during IPO or other public offerings, needed for pre-IPO companies
1. Schedule 1: Option Details: Specific details of the option grant including number of shares, exercise price, grant date, and vesting schedule
2. Schedule 2: Exercise Notice: Form to be completed when exercising options
3. Schedule 3: Tax Summary: Summary of tax implications and obligations under New Zealand law
4. Appendix A: Company's Stock Option Plan: Full text or summary of the company's stock option plan under which the grant is made
5. Appendix B: Shareholders' Agreement: Key terms from the shareholders' agreement that will apply post-exercise
6. Appendix C: Regulatory Compliance: Summary of relevant Financial Markets Conduct Act requirements and exemptions
Authors
Technology
Financial Services
Professional Services
Manufacturing
Healthcare
Biotechnology
Software Development
E-commerce
Telecommunications
Consulting
Real Estate
Energy
Education Technology
Media and Entertainment
Consumer Goods
Human Resources
Legal
Finance
Executive Leadership
Information Technology
Product Development
Sales
Marketing
Operations
Research and Development
Business Development
Customer Success
Engineering
Design
Analytics
Chief Executive Officer
Chief Financial Officer
Chief Technology Officer
Software Engineer
Product Manager
Sales Director
Marketing Manager
Operations Manager
Human Resources Director
Research Scientist
Business Development Manager
Account Executive
Technical Lead
Design Director
Financial Analyst
Legal Counsel
Department Head
Project Manager
Senior Developer
Data Scientist
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