Document background
The Stock Option Agreement is a fundamental instrument used by companies in the Netherlands to provide employees and consultants with the right to purchase company shares at a predetermined price within a specified timeframe. This document is particularly crucial for startups, scale-ups, and established companies looking to attract and retain talent by offering equity-based compensation. The agreement must comply with Dutch corporate law, tax regulations (including the Dutch Income Tax Act 2001 and Wage Tax Act), financial supervision requirements (Wet op het financieel toezicht), and EU regulations. It typically becomes relevant during employee onboarding, funding rounds, or when implementing company-wide incentive schemes. The document details grant terms, vesting conditions, exercise procedures, and tax implications, while accounting for specific Dutch legal requirements such as works council approval where applicable.
