Stock Option Grant Notice
A Stock Option Grant Notice is a document that formally grants an individual the right to purchase a specified number of company shares at a fixed exercise price, subject to vesting. Use this when granting an employee or early team member stock options and need a signed record of the share count, exercise price, and vesting schedule.
What's included
A ready-to-use stock option grant notice with signature fields already placed for Company and Optionee. Fill in the bracketed details (like [Company Name] or [Date]) using Docracy's built-in text editor, then send it out for signature.
This is a general template for informational purposes only and does not constitute legal advice. Consult a qualified attorney to review it for your specific situation and jurisdiction before use.
Key clauses
- Number of shares subject to the option
- Exercise price per share
- Vesting schedule and vesting commencement date
- Option expiration and post-termination exercise period
- Option type (incentive stock option vs. nonqualified stock option)
- Reference to the underlying equity incentive plan and exercise method
What you'll fill in
[Optionee Name][Company Name][Number of Option Shares][Exercise Price Per Share][Grant Date][Vesting Commencement Date][Vesting Schedule][Option Expiration Date][Stock Plan Name]Legal summary
Signing this notice legally grants the recipient an option to purchase company shares at the stated exercise price once vesting conditions are met, without requiring them to exercise it. The company's obligation is to honor the stated terms as shares vest, and the option typically expires or terminates on a fixed date or shortly after the recipient's service with the company ends.
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.
FAQ
Is this Stock Option Grant Notice legally binding?
Signing through Docracy uses a simple electronic signature (SES), which is legally recognized for everyday business agreements under laws like the U.S. ESIGN Act and the EU's eIDAS regulation. This is a general template, not legal advice — for high-stakes or regulated agreements, have a qualified attorney review it for your situation.
Who needs to sign this Stock Option Grant Notice?
This template includes signature fields for Company and Optionee — already placed, so you just fill in the details and send.
Can I edit this Stock Option Grant Notice before sending it?
Yes — Docracy's editor lets you edit the text, add or remove signature fields, redact sections, and reorder pages before you send it.
Do I need an account to send this Stock Option Grant Notice?
No — it's free for up to 2 signers with no account required. Create a free account only if you want to save it to a dashboard or reuse it later.
Try it with an AI assistant
Paste one of these into ChatGPT, Claude, or your assistant of choice:
“Explain the exercise price, vesting schedule, and expiration terms in this Stock Option Grant Notice before I sign it.”
“What's the difference between an incentive stock option and a nonqualified stock option in a grant notice like this?”
“Help me understand what happens to my options if I leave the company, based on this grant notice.”
Why teams start with Docracy
“Docracy is a great product that I have tested and am using. It is easy to use, has good tools, is always up to date, and implements new features. Highly recommended.”— DACH Advisory
Free for up to 2 signers, no account required. Need unlimited? Flat $10/month.