Use this template to create a Stock Option Agreement, outlining the terms and providing a means for a company's directors and employees to purchase stock in the company. Provisions of the agreement include:

• The company grants an irrevocable option to the optionee to purchase the shares.
  
• To exercise the option, the optionee must give the company a signed option notice, together with payment for the shares.
  
• In the event of retirement, disability or death of the optionee prior to exercising, the legal representative of the optionee may exercise the option within 1 year.
  
• If the optionee is no longer employed by the company for any reason other than retirement, disability or death, the option will expire.
  
• If the company subdivides or reorganizes its capital, the option and the option price will be adjusted accordingly.

This is a generic option agreement in MS Word format, and is not specific to any country or region.