Share Option Agreement - Exercise Within Agreed Period
This Share Option Agreement - Exercise within Agreed Period is between a Company and a Grantee, giving the latter the right to exercise the option to subscribe for new shares within a specified period of time. The document assumes that the Grantee is a director or full time employee of the Company (or both). However, it is possible to specify a different relationship such as that of a contractor.
The Option must be exercised within the agreed period otherwise it will lapse. If the Grantee ceases to be a director / employee / other or dies, then the Option will also lapse. The Company may vary its share capital but the Grantee is protected if new shares are issued before the Option is exercised because he or she will be treated as a shareholder for these purposes. The Grantee is offered further protection because he or she will be given ample opportunity to exercise the Option if the Company's entire share capital is to be sold or the Company is to be wound up.
If the Option is exercised but the Grantee ceases to be a director / employee / other or dies, then his or her shares are offered to the other shareholders at a price specified by the auditors. If there are any remaining shares, then the Grantee can require them to be bought by the Company.
Details of the “Option Exercise Period”, “Option Shares”, “Ordinary Shares”, and the “Subscription Price” in the Interpretation section should be completed. If the Grantee is not an employee, then the words in square brackets in the final part of sub-clause 4.1, the entirety of sub-clause 4.2 and the wording in square brackets from lines four to eight of sub-clause 8.1 should be deleted.
Other optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This Share Option Agreement - Exercise within Agreed Period is in open format.
Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.