Notice of Exercise of Options under Stock Option Agreement to Acquire the Shares

It is customary for all organizations to offer stock options to its executives, employees and directors. This option can be termed as incentives for them for their better performance in the corporation.

When an executive or employee is offered Stock Options, he is entitled to buy that stock at the offered option price of the company. In course of time, if the stock value rises then, the stock option holder can reap a handsome profit by exercising his option. It is also necessary that the shareholders should pass a resolution approving Stock Option plan.

Stock plan option can be of different forms, such as, it can be existing plan, change the terms of existing plan, creation of new plan or add additional stock option plan. But, it is also necessary that the shareholders should have a say in the matter of Stock option by the corporation and should pass a resolution approving them

There are certain points that have to be remembered for approving Stock Option Plan:

• Specificity of better performance level because, just performance is not enough.
• Stock option plan shares should be in limited numbers, to avoid decrease of existing value held by ordinary shareholders, as greater number of shares may dilute the value of existing shares.
• Try to avoid reprising of company’s stock for Stock plan option.

.It is also essential for the individual to give due notice to the corporation for exercising his/her Stock Option Plan and acquiring the shares in the organization.

Below given Notice of Exercise of Options under Stock Option Agreement will help you, when you also exercise Stock option plan to acquire the share of the company:

                 Notice of Exercise of Stock Option
                       [to be signed only upon exercise of Option]

TO:
    [Name of Corporation]____________________

RE:
Stock Option Agreement dated_________[Date of Stock Option Agreement] (the "Stock Option") between__________ [Name of Corporation Issuing Stock Option] (the "Corporation") and___________[Name of Option Holder] (the "Holder") in respect of_________ [Number of Optioned Shares Originally Granted]__________ [Type of Optioned Shares (ie.Common, Preference, Class A, etc.)] Shares (the "Optioned Shares") of theCorporation.

The Holder hereby exercises the Stock Option for the purchase of__________ [Number of Optioned Shares being Exercised] Optioned Shares in accordance with the terms and conditions thereof, and herewith tenders payment of the exercise price in full.

The Corporation is instructed to issue such Shares in the name of the Holder and to deliver the same at the address indicated below.

Date__________, 20___.

Witness__________________________

[Name of Option Holder]____________

 [Signature must conform exactly with
the name of the registered owner on
the front of the Stock option]                                                        
[Address of Option Holder]__________________

“Holder Address”_________________________