The Paperwork Behind the Promise.
Download the 2026 Notice of Stock Option Grant.
The Institutional Standard Letter for Issuing Equity to Employees.
You promised them equity. Now, put it in writing.
When you hire a top engineer or a VP of Sales, the "Offer Letter" is just a handshake. To actually give them the stock options, you need a formal Notice of Stock Option Grant.
Most free templates found online are dangerous "letters" that lack legal teeth. They often miss critical tax warnings, data privacy waivers, and spousal consents.
The Legal Attorney Grant Notice-It protects the company while clearly explaining the value of the award to the employee. It is designed to work perfectly with our 2026 Equity Incentive Plan.
What Makes This Template "Institutional Grade"?
1. The "Term Sheet" Dashboard
We moved the complex legal text to the back and put the critical data upfront.
Clear Table Format: Prevents errors by clearly listing Shares, Price, and Expiration Date in a simple grid.
ISO vs. NSO Checkboxes: Allows you to use the same document for Employees (ISO) and Advisors (NSO) just by checking a box.
Vesting Definitions: Clearly defines the "Vesting Commencement Date" separate from the "Grant Date," allowing you to backdate vesting to the employee's first day of work.
2. Built-In Spousal Consent (Attachment A)
This is the feature most startups forget until it is too late.
The Divorce Shield: In states like California and Texas, an employee's spouse legally owns half their stock.
The Fix: Our template includes a mandatory Spousal Consent form. This ensures that if an employee gets divorced, the ex-spouse cannot hold your company hostage or refuse to sell the stock back.
3. 2026 Compliance Features
Data Privacy Waiver: Includes specific consent language for processing employee data, required for remote teams under 2026 CPRA and GDPR standards.
Tax Warning Language: Explicitly warns employees about the "$100,000 ISO Limit" and "Disqualifying Dispositions," reducing the chance that they sue you later for unexpected tax bills.
Electronic Delivery Clause: Legally authorizes you to send future tax documents and notices via email or portal, saving you from mailing physical letters.
Why You Need This Document (Not Just the Plan):
1. It is the Actual Contract
The "Plan" is just the rulebook. This "Notice" is the actual contract that transfers the economic value to the specific human being. Without this, they own nothing.
2. It Protects the Cap Table
By clearly defining the "Expiration Date" (usually 10 years) and the "Post-Termination Exercise Window" (usually 3 months), this document ensures that ex-employees don't clutter your cap table forever.
3. It sets the "Cliff"
This document legally establishes the "1-Year Cliff." If you hire someone and they don't work out after 9 months, this document ensures you can let them go without them keeping any equity.
Issue Equity with Confidence.
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Frequently Asked Questions
1. Can I use this for Advisors?
Yes. You simply check the box for "Non-Statutory Stock Option (NSO)" on the first page. Advisors are not eligible for ISOs, but this document handles NSOs perfectly.
2. Does this work with Carta or Pulley?
Yes. If you use a digital equity management platform, they often ask you to upload your own "Form of Option Agreement." You can upload this file as your company's standard template.
3. What is the "Exercise Price"?
This is the price the employee must pay to buy the stock. You cannot make this number up. You must enter the price from your current 409A Valuation Report.
4. Why is there a signature line for the Spouse?
In community property states (AZ, CA, ID, LA, NV, NM, TX, WA, WI), a spouse has a legal claim to the equity. Having them sign "Attachment A" waives their right to interfere with the company's stock restrictions.
