Document background
The Employee Stock Option Agreement is a crucial document used by Hong Kong companies to grant employees the right to purchase company shares at a predetermined price within a specified timeframe. This agreement is particularly important for companies looking to attract and retain talent by offering equity-based compensation. It must comply with Hong Kong's Companies Ordinance, Securities and Futures Ordinance, and relevant employment and tax laws. The document typically forms part of a broader employee share option plan (ESOP) and includes detailed provisions on vesting schedules, exercise procedures, termination scenarios, and tax implications. It's commonly used by both private companies planning for future exits and public companies offering long-term incentives to key employees.
