Document background
An Option Grant Agreement is a fundamental document in Canadian corporate practice, used when a company wishes to grant stock options to employees, consultants, or directors as part of their compensation package. This agreement is particularly important in the Canadian context where stock option plans must comply with both federal and provincial securities regulations, as well as tax laws governing the treatment of stock options. The document sets out the complete terms of the option grant, including crucial details about vesting schedules, exercise procedures, and various termination scenarios. It's commonly used by both private and public companies in Canada as part of their equity compensation strategies, though the specific requirements and provisions may vary depending on the company's status and the provincial jurisdiction.
