Recruiters

ESOPs Grant Letter Template

August 13, 2024
3 minute read
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By
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

  1. July 5, 2024 - 25% of the total number of shares (i.e. 1000 shares)

  2. 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.

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