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Stock Option Agreement of Turnstone Systems, Inc Form

Stock Option Agreement of Turnstone Systems, Inc Form

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The use of options is very common in business, as they allow the parties to the contract to create today a right that can be materialized in the future usually within a pre-defined time frame. In Employee Stock Options, the Option’s underlying asset is a Company Stock, the Parties to the Options Contract are an employer and employee, and the Option itself is part of a payment Package. Obviously, the option is always only about buying the underlying asset – Company’s Stock. The basic rationale for using an Employee Stock Option is either to reward an employee with an asset that isn't coming out of operational cash flow like direct pay does or to incentivize employees to conduct themselves in a manner that will enhance the price of the company’s stock, at least in the short term. Here is an example: Bob works as a sales manager for American Pie Company, which sells - well, pies. American Pie Company is a public company whose shares trade for $2 per share. Granny, the Chai

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