Can this package be e-signed?

Yes in most cases. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted in 49 states), electronic signatures satisfy legal-signature requirements unless the transaction falls under recognized exceptions such as wills or certain court orders.

Is notarization required?

Notarization is generally not required for option grants, but specific state law or plan provisions may request acknowledgment. Remote online notarization (RON) is permitted where state statutes allow and providers meet identity proofing and retention requirements.

What about Section 83(b)?

A Section 83(b) election must be filed with the IRS within 30 days of the grant to elect immediate income recognition on restricted stock; options typically are not eligible unless exercised for restricted stock, so consult tax counsel for specific scenarios.

How long should I retain records?

Retain executed packages for the full term plus federal minimums: at least three years for tax records (IRC §6501(a)); six years for HIPAA-covered records (45 CFR §164.530(j)). State laws may require longer retention.

Who has authority to sign?

Authorized signatories include the grantee and an authorized company officer. Board or compensation committee approval should be documented; grants involving officers or directors may also require SEC Form 4 reporting for public companies.

Can grants be revoked or amended?

Revocation or amendment depends on contract terms and corporate approvals. Unilateral revocation may be barred if the grantee accepted and consideration was provided; amendments typically require board action and written consent of affected parties.

Electronic Signature
Templates
HR
Employee Option Grant Package

Employee Option Grant Package

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE OPTION GRANT PACKAGE

Personal Information

Full legal name Current address

Telephone

Email

Position Information

Job title Department Reporting manager

Start date: Base salary (annual):

Employment History

Employer 1 — Company name

Primary responsibilities Reason for leaving Employer 2 — Company name

Primary responsibilities Reason for leaving

Education

Highest degree Institution Graduation date

References

Reference 1

Reference 2

Reference 3

Legal Disclosures

At-Will Employment: Nothing contained in this Option Grant Package alters the at-will nature of employment. Either the Company or the Employee may terminate the employment relationship at any time, with or without cause or notice, except as expressly set forth in any written employment agreement signed by both parties.

Equal Opportunity: The Company is an equal opportunity employer. Employment decisions are made without regard to race, color, religion, sex, national origin, age, disability, or any other protected characteristic under applicable law.

Applicant Certification and Authorizations

I certify that the information provided in this package is true, complete and correct to the best of my knowledge and belief. I understand that omission or misstatement of material facts is cause for rejection of this package or, if employed, termination.

Authorization: I authorize the Company to contact prior employers and listed references and to obtain consumer and/or employment background checks, including criminal history and credit checks where permitted by law. I understand that any offer of employment and any issuance of equity is conditioned upon satisfactory results of such checks and any required documentation.

I authorize contact with previous employers and references. I authorize background checks as described above.

Option Grant Notice

Grant Date: Grant Number:

Company: Place of issuance (state of incorporation):

Number of Options Granted: Type: Incentive Stock Option (ISO) Non-Qualified Stock Option (NQSO)

Exercise price per share: Vesting commencement date:

Vesting Schedule (describe specific vesting terms)

Example vesting parameters (fill as applicable): Cliff (months): Subsequent vesting interval (months): Percentage vested at cliff:

Term, Exercise and Termination

Term of Option: The term of the Option shall be years from the Grant Date, subject to earlier termination as provided herein.

Termination of employment: Unless otherwise provided in the Plan or a separate written agreement, if employment terminates for any reason, vested options must be exercised within days after termination; unvested options are forfeited upon termination. Different exercise periods may apply for Disability, Death, or Termination for Cause as set forth below.

Special termination provisions (if applicable)

Transferability and Restrictions

The Option is not transferable other than by will or the laws of descent and distribution and is exercisable during the lifetime of the Optionee only by the Optionee. Shares issued upon exercise are subject to the terms and restrictions of Company governing documents and any applicable shareholder agreements.

Tax Withholding

The Optionee acknowledges that the exercise of options and disposition of shares may give rise to tax liabilities. The Company shall have the right to withhold required taxes in accordance with applicable law, including withholding from wages or requiring payment in cash or by surrender of shares in accordance with Company policy.

I acknowledge the tax withholding provisions described above.

Representations and Agreements

The Optionee represents that the Optionee is acquiring the Option for investment purposes and not with a view to distribution. The Optionee agrees to notify the Company promptly of any change in circumstances that would cause such representations to be inaccurate.

Governing law: This Grant Package and any disputes arising hereunder shall be governed by and construed in accordance with the laws of the state of incorporation of the Company, without regard to its conflict of laws rules, except to the extent superseded by mandatory local law.

Acceptance and Acknowledgment

By signing below, the Optionee accepts the Option granted hereby on the terms and subject to the conditions set forth in this Option Grant Package and any applicable Stock Option Plan and acknowledges receipt of a copy of this package.

Company (Issuer):

By:

Date:

Employee:

By (Signature):

Date:

What an Employee Option Grant Package Is

An Employee Option Grant Package is the set of documents and schedules used to grant equity-based options to employees, including the option agreement, grant notice, vesting schedule, exercise procedures, and tax and transfer restrictions. It records the number of options, strike price, vesting commencement, acceleration events, exercise period, and any repurchase rights. Employers use a standardized package to ensure consistent terms, satisfy corporate governance and securities compliance, and provide employees a clear record of rights and obligations under the equity plan.

Why a Complete Package Matters

A clear Employee Option Grant Package reduces disputes, clarifies tax responsibilities, and supports board approvals and audit trails. It provides legally enforceable terms for vesting, exercise, and transfer restrictions while documenting consideration and corporate authorization.

Who Prepares and Uses These Packages

Human resources, finance, legal, and founders commonly prepare or approve Employee Option Grant Packages within private and public companies.

Startup founders and executives — define plan terms, board approvals, and cap table effects.
HR and payroll — manage onboarding, withholding, and employee communications about tax consequences.
In-house counsel and outside securities counsel — ensure compliance with securities laws and plan documents.

Smaller companies often rely on external counsel or template providers, while public companies integrate grants with equity administration platforms.

Core Components of a Professional Grant Package

Core components of a professional Employee Option Grant Package set expectations for vesting, taxation, exercise mechanics, post-employment treatment, and corporate approvals.

Grant Notice

Summarizes grant specifics: number of options, exercise price, vesting schedule, effective date, and special conditions such as performance milestones or acceleration. It is the employee-facing summary used for acceptance and recordkeeping.

Option Agreement

Legally binding contract outlining rights and obligations, including exercise procedures, transfer restrictions, change-of-control treatment, tax indemnities, and remedies for breach; executed by company and grantee.

Vesting Schedule

Specifies vesting commencement, cliff periods, graded vesting percentages, acceleration terms on termination or liquidity events, and conditions that suspend or accelerate vesting. It determines when options become exercisable and affects tax timing.

Exercise Terms

Details method to exercise (cash, cashless, or broker-assisted), exercise window post-termination, payment of strike price, tax withholding obligations, and administrative procedures for filing and acceptance.

Tax Notices

Explains tax consequences upon grant, vesting, and exercise; identifies Section 83(b) election rights and deadlines, withholding responsibilities, and where to obtain tax forms or guidance.

Board Approval

Includes Board resolution or committee approval reference, effective authorization dates, plan share reserves, and corporate minutes demonstrating that the grant complies with plan limits and fiduciary duties.

Step-by-Step: Prepare and Execute the Package

Follow these steps to prepare, approve, and execute an Employee Option Grant Package correctly consistently.

01

Draft Package: Assemble notice, agreement, vesting schedule, and tax notices.
02

Board Approval: Obtain resolution or committee authorization.
03

Deliver to Grantee: Provide documents and explain tax options.
04

Execute and File: Collect signatures and retain records.

Typical Digital Workflow Settings

Configure a digital workflow to route grant packages for signature, optional notarization, and archival while preserving an audit trail.

Field	Configuration
Signature Fields	Add signature, date, and initial fields for each signer.
Authentication	Use email link or SMS code; consider KBA for high risk.
Notarization	Enable RON or in-person options where state law requires.
Archival	Store executed PDFs with audit trails and retention tags.

Technical Requirements for e-Execution

Choose an eSignature platform that supports audit trails, secure storage, and compliant authentication for option grants.

File Formats: PDF, DOCX, and Excel supported
Integrations: Works with Salesforce, NetSuite, Google Workspace
Security: AES-256 at rest; TLS in transit

How the e-Sign Process Typically Flows

Typical e-sign workflow for an Employee Option Grant Package from upload to signed record and archival.

Upload Document: Import finalized template or Word conversion.
Place Fields: Add signature, date, and checkbox fields.
Send to Signers: Email link or bulk send with signer order.
Capture Completed: Gather signed PDF and audit certificate.

Key Deadlines and Timing Considerations

Key deadlines and timing considerations associated with grants, elections, tax filings, and post-termination exercise windows.

Section 83(b) Election Deadline:

File within 30 days of grant.

Tax Reporting and Withholding:

Report per payroll period; backup withholding applies for missing TIN.

Exercise Period Post-Termination:

Varies by agreement; commonly 90 days.

Board Approval Recordkeeping:

Retain minutes demonstrating authorization and resolution reference.

Tax Forms Deadlines:

1099 and W-2 reporting deadlines follow IRS schedules.

Milestone Timeline from Grant to Closure

Milestone timeline from grant approval through post-exercise recordkeeping for an Employee Option Grant Package and compliance.

01

Grant Approval

Board resolution executed and recorded.

02

Employee Acceptance

Grantee signs grant notice and agreement.

03

Vesting Monitoring

Track vesting events and metric achievement.

04

Exercise Closure

Record exercises, update cap table, and file tax forms.

Common Preparation Pitfalls to Avoid

Incomplete grant notices or ambiguous vesting terms lead to disputes and may trigger unintended acceleration or litigation; clearly state dates, milestones, and treatment on termination.
Failing to offer or file timely Section 83(b) election notices can create adverse tax outcomes for grantees and may result in higher ordinary income tax on vesting.
Using inconsistent company names, incorrect TINs, or mismatched signer names will complicate payroll reporting, backup withholding, and IRS reconciliation.
Neglecting to document board approval, plan share availability, or amendments risks noncompliance with corporate bylaws and may invalidate grants.

Penalties and Risks of Inaccurate Packages

1099 Penalties: Late filing penalties $60–$330 per form.

Intentional Disregard: Penalties $660+ per form, no cap.

I-9 Violations: Civil fines $281–$2,789 per violation.

Backup Withholding: 24% withholding for incorrect or missing TIN.

Contract Disputes: Ambiguities may lead to litigation costs.

Tax Reporting Errors: Misreporting may trigger audits and penalties.

Pricing and Feature Comparison for eSignature Platforms

Compare common eSignature plan features and pricing for organizations sending Employee Option Grant Packages at scale.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	No cap	No cap	No cap

Frequently Asked Questions

Common questions about completing, signing, and maintaining an Employee Option Grant Package, including legal and technical considerations.

Need help? Contact support

Can this package be e-signed?
Yes in most cases. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted in 49 states), electronic signatures satisfy legal-signature requirements unless the transaction falls under recognized exceptions such as wills or certain court orders.
Is notarization required?
Notarization is generally not required for option grants, but specific state law or plan provisions may request acknowledgment. Remote online notarization (RON) is permitted where state statutes allow and providers meet identity proofing and retention requirements.
What about Section 83(b)?
A Section 83(b) election must be filed with the IRS within 30 days of the grant to elect immediate income recognition on restricted stock; options typically are not eligible unless exercised for restricted stock, so consult tax counsel for specific scenarios.
How long should I retain records?
Retain executed packages for the full term plus federal minimums: at least three years for tax records (IRC §6501(a)); six years for HIPAA-covered records (45 CFR §164.530(j)). State laws may require longer retention.
Who has authority to sign?
Authorized signatories include the grantee and an authorized company officer. Board or compensation committee approval should be documented; grants involving officers or directors may also require SEC Form 4 reporting for public companies.
Can grants be revoked or amended?
Revocation or amendment depends on contract terms and corporate approvals. Unilateral revocation may be barred if the grantee accepted and consideration was provided; amendments typically require board action and written consent of affected parties.

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