Ontario Employee Stock Option Plan

This checklist for developing employee stock option plans in private companies will guide you through the issues you need to consider and the questions you need to answer.

• The checklist includes such issues as:
  • determing what benefits are to be derived from the plan;
  • pitfalls to avoid;
  • valuation of your business;
  • investment opportunities;
  • drag-along provisions;
  • anti-dilution provisions;
  • liquidity;
  • tax planning;
  • profit sharing.
• This is an invaluable tool for any privately held company that wants to implement an incentive plan for its employees.
• Available in MS Word format.

Give your key personnel an incentive to stay with the company by issuing them stock options. This One-Off Grant of Stock Options template is for Ontario corporations.

• The grant of option is for a percentage of the participating common shares on a fully diluted basis.
• Option shares are non-voting, but they otherwise have all the same rights as the other common shares.
• The option vests fully immediately upon issue of the grant, however, the optionee must be employed by the company to exercise all or any part of the option.
• Unexercised options expire 90 days after the death of the optionee.
• This template is downloadable and fully editable to fit your business needs.
• Intended for use only in the Province of Ontario, Canada.

Authorize the establishment of an Employee Stock Option Plan (ESOP) to issue stock options to key personnel with this Resolutions Package for Ontario corporations which contains:

1. Resolutions of the Shareholders approving the ESOP,
2. Resolutions of the Directors authorizing the corporate officers to take all necessary actions to establish the ESOP,
3. Resolutions of the Directors approving a policy statement outlining the Plan and implementing the ESOP,
4. Resolution of the Directors granting stock options to certain employees, directors and consultants.

These Ontario Corporate Resolutions to Set Up Employee Stock Option Plan are available as a single downloadable MS Word file, which is fully editable.