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A Stock Option Agreement gives employees the right to buy company shares at a set price within a specific timeframe - a valuable benefit offered by many Irish companies to attract and retain talent. These agreements fall under Irish company law and must comply with Revenue guidelines for tax treatment of share-based remuneration.

The agreement spells out crucial details like the strike price, vesting schedule, and exercise period. Irish employers often structure these as part of their overall compensation package, with specific provisions for what happens if an employee leaves the company or if there's a company sale. The terms need careful drafting to align with both Irish employment law and corporate governance requirements.

Stock Option Agreements make the most sense when your Irish company needs to incentivize key employees without spending immediate cash. They're particularly valuable for startups and growing businesses looking to attract top talent while conserving capital. Many tech companies in Dublin's Silicon Docks use these agreements as part of their recruitment strategy.

The right time to implement a Stock Option Agreement is during hiring negotiations or when creating employee retention programs. Irish companies often introduce them before major growth phases, funding rounds, or when competing for specialized talent against larger firms. Getting the timing right helps maximize tax efficiency under Revenue guidelines and keeps your company competitive in tight labor markets.

• Share Option Agreement: Standard agreement for Irish companies offering basic share options to employees, with straightforward vesting terms
• Employee Stock Option Agreement: More detailed version with specific performance conditions and clawback provisions for executive-level staff
• Stock Option Purchase Agreement: Used when employees exercise their options to actually purchase shares
• Stock Option Cancellation Agreement: For terminating existing options, often used during company restructuring
• Employee Share Agreement: Direct share ownership arrangement, typically used in smaller companies or for immediate equity grants

• Company Directors: Approve and oversee Stock Option Agreements as part of the company's compensation strategy, ensuring compliance with Irish corporate law
• HR Managers: Administer the program, explain terms to employees, and track vesting schedules
• Eligible Employees: Review and sign agreements, make decisions about exercising options within specified timeframes
• Corporate Lawyers: Draft and review agreements to ensure compliance with Revenue guidelines and Companies Act requirements
• Company Secretary: Maintains option registers, handles documentation for share issuance, and ensures proper corporate governance
• Tax Advisors: Guide both company and employees on tax implications under Irish tax law

• Company Details: Gather current share capital structure, existing option schemes, and any shareholder agreements
• Option Terms: Define strike price, vesting schedule, exercise period, and any performance conditions
• Employee Information: Collect recipient details, role, start date, and current compensation package
• Board Approval: Secure necessary corporate authorizations and shareholder consents under Irish law
• Tax Planning: Confirm Revenue compliance and optimal tax structure for both company and employee
• Documentation: Use our platform to generate a legally sound agreement that includes all mandatory elements under Irish law
• Internal Review: Have key stakeholders verify terms align with company policies and objectives

• Grant Details: Number of options, strike price, and clear identification of underlying shares
• Vesting Schedule: Specific timeframes, milestones, and conditions for option maturity
• Exercise Terms: Procedure, timing, and payment methods for converting options to shares
• Good/Bad Leaver: Provisions for employment termination scenarios under Irish law
• Change Control: Rules for company sale, merger, or IPO events
• Tax Provisions: Compliance with Revenue requirements and responsibility for tax obligations
• Shareholder Rights: Voting, dividend, and transfer restrictions post-exercise
• Data Protection: GDPR-compliant clauses for handling personal information

A Stock Option Agreement differs significantly from a Stock Option Plan, though they're often confused in Irish corporate settings. While both deal with employee equity, they serve distinct purposes and operate at different levels.

• Scope and Purpose: Stock Option Plans establish the overall framework and rules for your company's option program, while Stock Option Agreements document individual grants to specific employees
• Legal Structure: The Plan requires board and shareholder approval under Irish company law, serving as a master document. Individual Agreements must align with the Plan's terms but focus on personalized grant details
• Timing and Use: Companies typically create the Plan first, then use individual Agreements for each option grant
• Content Focus: Plans cover broad policies, pool size, and administration rules, while Agreements specify exact numbers, prices, and vesting schedules for each recipient