PrivateTechShares

Home › Glossary › Option agreement

🌍 US & Europe · Docs & roles

Option agreement

Also called: stock option agreement

In one line

The contract setting the terms of your stock options — strike price, vesting, expiry and the exercise window if you leave.

In plain English

The option-specific version of a grant agreement. It defines when you can exercise, at what price, how long the options last, and what happens when you leave.

If you were explaining it to a 5-year-old

The note that comes with your toy voucher, explaining the price, the rules, and how long before it expires.

Why it matters when you sell

It tells you your exercise window and expiry — crucial deadlines before you can turn options into sellable shares.

Related terms

Grant agreementStock optionPost-termination exercise windowStrike price

Put it to use

Cost to exercise + AMT

Hold private-company shares? Our free estimator shows what your stake could be worth and whether you can sell — no sign-up. Value my equity (free) → · Back to the glossary →
When you're ready to go deeper, there's an optional Equity Toolkit and Report.

Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.