stock option agreement – n : legal contract between a company granting a stock option and the individual receiving the stock option; an option agreement is usually very brief – often simply a letter agreement – that refers to (and typically incorporates by attachment) the company’s governing stock option plan, and stipulates the date of the grant, the number of shares of stock in the grant, the vesting schedule, and the strike price.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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