Explanation of ISO Grant
(Private Company) (Employee Memorandum)

Summary

This Explanation of ISO Grant (Private Company) (Employee Memorandum) explains how a grant of incentive stock options (ISOs) will impact the recipient. This template includes practical guidance, drafting notes, and optional and alternate clauses. This template is drafted assuming that the entity granting the incentive stock option is a private company. It is intended to supplement a separate ISO award agreement that governs the issuance of the options. For a full listing of key content covering equity incentive plan considerations, see Equity Incentive Plan Resource Kit. For additional equity incentive titles, Equity Compensation Types and Tax Treatment, Incentive Stock Option Checklist, Equity Award Drafting Checklist (Section 409A Compliance), and Stock Option Plan (Nonqualified and Incentive Stock Options). For a template ISO award agreement, see Incentive Stock Option Award.