This non-employee director option agreement grants the optionee (the non-employee director) a non-qualified stock option under the company's non-employee director stock option plan. The option allows optionee to purchase shares of the company's common stock up to the number of shares listed in the agreement.
Oklahoma Non Employee Director Stock Option Agreement is a legally binding contract that outlines the terms and conditions surrounding stock options offered to non-employee directors of a company in Oklahoma. This agreement serves as a means to incentivize and reward non-employee directors for their contributions to the company's success. The Oklahoma Non Employee Director Stock Option Agreement typically consists of several key components, including: 1. Parties involved: The agreement identifies the company granting the stock options and the non-employee director who will be receiving them. 2. Grant of stock options: This section outlines the number of stock options being granted to the director, along with any applicable restrictions or limitations. 3. Exercise price: The agreement specifies the exercise price at which the non-employee director can purchase the stock options at a later date. This price is usually determined by the company's board of directors or a designated committee. 4. Vesting schedule: The agreement sets forth the vesting schedule, which details the period during which the stock options will become exercisable. This schedule is often based on the director's continued service or achievement of certain milestones or performance goals. 5. Expiration date: The agreement specifies the expiration date, which is the deadline by which the non-employee director must exercise their stock options. If the options are not exercised before this date, they will typically forfeit and become void. 6. Terms of exercise: This section outlines the procedures and requirements for exercising the stock options, including any necessary documentation, notification, and payment methods. 7. Termination and change of control provisions: The agreement may include provisions that address the treatment of stock options in the event of a termination of the non-employee director's service or a change in control of the company. These provisions ensure fairness and protect the director's interests. Different types of Oklahoma Non Employee Director Stock Option Agreements may exist based on specific terms and conditions tailored to different companies or industries. Examples of variations include: — Performance-based stock options: These agreements may incorporate specific performance criteria that must be met for the options to vest or be exercised. — Restricted stock unitsRSSUs): Rather than granting traditional stock options, RSS provide non-employee directors with units that convert into shares of the company's stock upon vesting. — Early exercise options: Some agreements may offer the option for non-employee directors to exercise vested stock options before their expiration date, allowing them to potentially capitalize on favorable market conditions. It is crucial for both the company and the non-employee director to carefully review and understand the terms and conditions outlined in the Oklahoma Non Employee Director Stock Option Agreement before entering into the arrangement. Seeking legal advice is strongly recommended ensuring compliance with state laws and the protection of both parties' interests.
