ESOP grant letter generator
A clean grant letter for an employee stock option award — options count, strike price, vesting, exercise window, and leaver rules. Sits under the company’s ESOP scheme document.
{{org_name}}
Subject: Grant of Employee Stock Options
Dear {{emp_name}},
We are pleased to grant you employee stock options (the “Options”) under the {{scheme_name}} (the “Scheme”), subject to the terms set forth below and the Scheme rules.
| Number of Options | {{num_options}} |
| Exercise (strike) price | {{strike}} |
| Fair market value (grant date) | {{fmv}} |
| Grant date | {{grant_date:date}} |
| Vesting period | {{vest_years}} years |
| Cliff | {{cliff_months}} months |
| Vesting frequency after cliff | {{vest_freq}} |
| Exercise window after departure | {{exercise_window}} |
| Maximum expiry | {{expiry}} |
Vesting Mechanics. No Options vest before the cliff. On the cliff date, a portion equal to (cliff months ÷ total vesting months) of your grant vests in a single instalment. Thereafter, Options vest as specified above until fully vested. Vesting ceases upon termination of employment, except as expressly provided in the Scheme.
Exercise. Vested Options may be exercised at any time up to the maximum expiry date, by paying the exercise price and any applicable taxes. Upon exercise, the Company shall issue you the corresponding number of fully-paid equity shares.
Leaver Provisions. If you cease to be an employee for any reason (other than for cause), you shall have {{exercise_window}} from your last working day to exercise vested Options. Unvested Options shall lapse on the date of cessation of employment.
Termination for Cause. In the event of termination for cause as defined in the Scheme, all Options, whether vested or unvested, shall lapse immediately.
Tax. You are advised to consult a tax adviser regarding the tax treatment of this grant. The Company may withhold taxes upon exercise as required by law.
Transferability. The Options are not transferable except by will or the laws of succession.
Acceptance. Please sign and return a copy of this letter as confirmation of your acceptance of this grant and your agreement to be bound by the Scheme rules.
We look forward to your continued contribution to the Company’s success.
Yours sincerely,
Acceptance
I, {{emp_name}}, accept the grant of Options on the terms set out in this Letter and the Scheme rules.