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Stock Option Exercise Notice Template: Election and Shares
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Stock Option Exercise Notice Template
To: [Company Name]
Attention: [Stock Administration / Legal Department / Corporate Secretary]
Address: [Address]
Email: [Email Address]
From: [Option Holder Full Name]
Address: [Address]
Email: [Email Address]
Phone Number: [Phone Number]
Date: [Date]
Subject: Stock Option Exercise Notice
1. Option Holder Information
Option Holder Name: [Full Name]
Employee / Consultant / Director ID, if applicable: [ID Number]
Mailing Address: [Address]
2. Grant Information
I hold an option grant issued under the following plan or agreement:
Stock Option Plan Name: [Plan Name]
Option Agreement Date: [Date]
Grant Date: [Date]
Grant Number or Reference Number: [Number, if applicable]
3. Notice of Exercise
I hereby elect to exercise:
☐ all vested options available for exercise
☐ a portion of my vested options
Number of Option Shares Being Exercised: [Number]
4. Exercise Price
Exercise Price Per Share: [$Amount]
Total Exercise Price Due: [$Amount]
If applicable, additional withholding, taxes, or related amounts shall be handled according to the company’s applicable plan documents, agreements, and procedures.
5. Payment Method
Payment for the exercised option shares will be made as follows:
☐ cash
☐ check
☐ wire transfer
☐ payroll deduction, if permitted
☐ cashless exercise, if permitted
☐ net exercise, if permitted
☐ other: [Describe]
Additional payment details, if any:
[Insert details]
6. Share Issuance Instructions
Please issue the shares as follows:
☐ in my individual name
☐ jointly with: [Name]
☐ to the following account or transfer agent details: [Details]
☐ in uncertificated or electronic book-entry form
☐ other: [Describe]
7. Acknowledgments
I acknowledge and agree that:
the exercise is subject to the terms of the applicable stock option plan and option agreement;
the company may require additional documents, tax forms, or withholding amounts before issuing shares;
the company may delay issuance until all required conditions have been satisfied;
I have reviewed the applicable grant terms and understand the effect of this exercise notice.
8. Additional Notes
Additional comments or instructions, if any:
[Insert notes]
9. Signature
Option Holder Signature: __________________________
Name: [Full Name]
Date: [Date]
10. Company Acknowledgment
Received By: [Full Name]
Title: [Job Title]
Company Name: [Company Name]
Date Received: [Date]
Notes or Internal Processing Comments:
[Insert notes]
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Stock Option Exercise Notice Template: Election and Shares
STOCK OPTION EXERCISE NOTICE TEMPLATE FAQ
What is a stock option exercise notice?
A stock option exercise notice is a written notice used by an option holder to inform a company that they are exercising some or all of their stock options. It usually identifies the option grant, the number of shares being exercised, the exercise price, and the method of payment. It helps create a clear written record of the holder’s election to purchase shares under the option agreement or plan.
Why do you need a stock option exercise notice?
You need a stock option exercise notice to formally communicate that the option holder is electing to buy shares under an existing stock option grant. It helps the company confirm the grant being exercised, the number of option shares involved, and the payment method being used. A written notice also supports internal records, capitalization tracking, and share issuance steps.
When should you use a stock option exercise notice?
Use a stock option exercise notice when an employee, consultant, founder, director, or other eligible option holder wants to exercise vested stock options under a stock option plan or grant agreement. It is commonly used before the option expires and when the holder is ready to pay the exercise price and request issuance of the related shares.
How to write a stock option exercise notice?
Start with the option holder’s name and the date of the notice, then identify the option grant, grant date, and plan or agreement under which the options were issued. After that, state the number of shares being exercised, the exercise price, and the total amount due. Finish with the payment method, any tax or withholding acknowledgment, and the holder’s signature so the notice is clear and ready to submit.
Can AI Lawyer help if finance, legal, and stock administration all need to review?
AI Lawyer can help by organizing the notice into clear sections so each reviewer can find the relevant details quickly. It can also add internal reference fields, payment notes, and placeholders that make updates easier to track. A consistent structure helps reduce repeated edits and lowers the chance of missing key details like grant dates, share counts, exercise price, or issuance instructions before the notice is submitted.
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