ESOPs Grant Letter Template

Raj Patel

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Equity compensation is a powerful tool for aligning the interests of employees and employers, and an ESOP (Employee Stock Ownership Plan) Grant Letter is a key document in this process. This letter formally offers employees the opportunity to become shareholders in the company, detailing the terms and conditions of their stock options. In this blog, we will provide you with a comprehensive ESOPs Grant Letter template, helping you to clearly communicate the details of the equity offer and ensure a smooth and transparent process for all parties involved.

You can also access our ready-to-use Google doc template for ESOPs Letter.

Notice of Stock Option Grant

The Optionee has been granted the following option to purchase ordinary shares of Registered Company Name.

Name of Optionee	*Employee Name* *Registered Company name* *Registered Company Address*
Total Number of Shares	*4,000 (Four Thousand Only)* ordinary shares
Type of Option	Stock Option
Exercise Price per Share	*USD 2.0 (Two United States Dollars)*
Date of Grant	*July 20, 2024*
Dates of Vesting	*July 5, 2024* - 25% of the total number of shares (i.e. *1000* shares) At the end of each subsequent month for next 36 months, pro-rated shares out of balance 75% shares rounded off to nearest full share.
Dates of Exercise	Anytime after the Vesting above at the discretion of Optionee and before the Expiration date.
Expiration Date	*July 20, 2034* This option expires earlier if the Optionee’s Service terminates earlier, as stated in the offer letter document.

By signing below, the Optionee and the Company agree that this Option is granted under, and governed by the terms and conditions of, the Employee Stock Option Plan and the Stock Option Agreement shared separately over email.

__________________________

Optionee

Authorized Signatory

Designation, Company Name

Conclusion

An effective ESOPs Grant Letter not only communicates the specifics of the equity offer but also reinforces the value of employees’ contributions to the company’s success. By using the provided template, you can ensure that your employees are fully informed about their stock options, fostering a sense of ownership and commitment. Customizing this template to fit your company’s needs will help you create a clear, professional, and motivating offer that supports your equity compensation strategy. Checkout our other letter templates.

ESOPs Grant Letter Template

Notice of Stock Option Grant

Conclusion

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