Stock option plan

Description

• The stock option plan is an essential document for any corporation wishing to grant or offer to an employee, worker or officer stock options in the company itself, in one of its subsidiaries, or in a legal entity controlled by the company or one of its subsidiaries.
• The purpose of this plan is to attract, retain and motivate employees and officers by offering them the opportunity to acquire shares in the company at a predetermined price. This promotes the company's interests by aligningemployee incentives with the company's long-term growth objectives.
• Stock options can also be offered to the company's directors and officers, reinforcing their commitment to the company's success.
• The stock option plan makes it possible to determine in advance the vesting price, the class and number of shares that may be acquired, and the period during which the option may be exercised. These parameters are essential for setting clear expectations for beneficiaries.
• Options granted under this plan offer a significant financial advantage to employees, officers or directors who become beneficiaries, as the purchase price of the shares is fixed in advance, while the value of the shares is likely to increase considerably when the options are exercised. However, it is important to note that the acquisition of shares may entail tax consequences for the beneficiary.
• Since the option beneficiary becomes a shareholder of the company by exercising his or her options, it is advisable for the company to adopt a shareholders' agreement. This agreement will govern relations between the shareholders and make provision for specific situations, such as the death of a shareholder.

• To obtain additional legal information on corporate law, we invite you to consult our frequently asked legal questions .

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