ContractsCounsel Logo

Lawyer for Stock Options Agreement

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,494 reviews
Home Blog Lawyer for Stock Options Agreement

Jump to Section

Need help with a Stock Option Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

If you're considering investing in stock options, it's important to have a lawyer for a stock options agreement. They will help you draft a stock option agreement, which lays out the terms and conditions of your investment and can help prevent potential disputes down the road.

What is a Stock Options Agreement Lawyer?

A lawyer for stock options agreements is a lawyer who specializes in drafting stock options agreements.

A stock options agreement is a contract between an employee and a company that defines the terms, conditions, and restrictions of employee rights to purchase stock options. This document is designed to help protect the employee and prevent misunderstandings.

Stock options are a particular type of employee compensation that gives an employee the right, but not the obligation, to buy a certain number of shares at a predetermined price. Stock options can be used as either an incentive or a reward for excellent performance.

It usually follows a vesting schedule governing when an employee may exercise their stock options to ensure motivation for employees to continue working hard. After that, stock can be purchased for the strike price or exercise price.

In most stock options agreements, it’s important to look for certain key elements:

  • Summary. A summary of the stock option plan and what it promises.
  • Fine Print. The employee's rights and conditions under which the party may exercise stock options ; also include the expiration date of the stock options offered.
  • Valuation. The estimated value of the stock when exercised, and a methodology by which the stock is valued and prices when exercised. It should also delineate how taxes will be paid and other payment terms that affect the cost of the employee stock option agreement.
  • Termination. An area within the employee stock option agreement outlining how to handle changes in the vesting terms due to events beyond the control of the parties and a termination clause if the company no longer needs the offer of options.

Depending on the company, you may be wondering exactly how stock options work. For example, some may issue stock certificates or include the option to purchase stocks within the initial business contract, the employment contract, or the employee stock purchase plan.

Therefore, when you're looking for a lawyer, you should look for someone with experience in this area of law, who is familiar with the securities laws that apply to your investment, and who is willing to answer any questions you have.

Here is an article reviewing if stock options are a good compensation solution for employees.

What Does a Stock Options Agreement Lawyer Do?

A lawyer for stock options agreements helps to negotiate and draft agreements to purchase stock options. These agreements define the terms and conditions of an investment in stock options. They can help to prevent disputes between parties.

There are a few reasons why having a stock options agreement is important.

  • Prevent misunderstandings. Having a legal document can help prevent misunderstandings. For example, employees need to be made aware of the risks involved in investing in stock options. This agreement can help educate them on the risks associated with this type of investment.
  • Define the terms of the investment. A stock options agreement can help define the terms of the investment. This can prevent disagreements.
  • Provide protection. Stock options agreements can also protect both parties involved. This document can help to protect the interests of both the employee and the company issuing the stock options.

A stock options agreement is vital for anyone considering investing in stock options. A lawyer for a stock options agreement can help to prevent misunderstandings and protect your rights as an investor and employee.

If you're thinking of exercising stock options, then make sure to have a lawyer for stock options agreements look over the agreement before finalizing your purchase. This way, the terms, and conditions are laid out upfront, ensuring there is no confusion about what was intended or provided.

Here is an article about what to look for in a stock options agreement.

How Much Does a Lawyer for a Stock Options Agreement Cost?

The cost of stock options agreements will vary depending on the lawyer's experience and the complexity of the agreement. However, lawyers typically charge by the hour, and you should expect to pay between $100 and $300 per hour for this service.

Sometimes, you can save money on the cost of hiring a lawyer for a stock options agreement. For example, if you have a simple agreement, you can find a lawyer for a stock options agreement who is willing to draft the agreement for a flat fee. You may also find a lawyer who is willing to work on a contingency basis, meaning you only have to pay if you win your case.

Before hiring a lawyer for a stock options agreement, ask for an estimate of the project's total cost. This will give you a good idea of what to expect and help you budget for the project.

Here is an article about whether lawyers can accept stock options.

Meet some lawyers on our platform

Owen K.

7 projects on CC
View Profile

Sara S.

40 projects on CC
View Profile

James H.

2 projects on CC
View Profile

Emmanuel K.

1 project on CC
View Profile

Types of Stock Options

There are two main types of stock options: nonqualified stock options and incentive stock options.

Nonqualified Stock Options

Nonqualified stock options (NQSOs) provide you with the opportunity to buy your company's stock at a pre-determined price, known as the strike price. You must pay for these stock options in full, and if the value of your company's shares increases above the strike price, you can then sell them for a profit on the market.

You do not need to hold onto your shares for any specific period or meet other conditions before you can exercise an NQSO. However, they are taxable income when you exercise them and receive payment for them.

Incentive Stock Options

Incentive Stock Options (ISOs) give you similar rights to NQSOs but come with some extra benefits. First, they don't cost anything upfront, which makes them valuable when companies need cash readily available to pay employees or contractors with stock options instead of cash.

Like NQSOs, ISOs also allow you to buy company shares at a set price, the strike price. However, they typically have a longer period within which they must be exercised than NQSOs.

Suppose the share value rises above your strike price over time. In that case, it will take longer before you make money selling those shares on a secondary market.

There are also specific tax treatment rules associated with ISO options depending on whether they're granted under qualified plans, nonqualified plans, or incentive plans; so if your employer gives you ISOs, it's worth checking directly with them about their specific details before exercising them yourself.

Here is an article about “must-knows” when entering a stock option agreement.

Do I Need a Lawyer for a Stock Options Agreement?

Whether you're looking at NQSOs or ISOs, if you're offered stock options as part of your employment compensation package, it's important to have a lawyer for stock options agreements to help you understand the implications and benefits before you decide whether to accept them.

A lawyer for a stock options agreement can also draft the stock options agreement itself, which will set out the specific rights and obligations of both you and your employer about the options.

Here is an article with a complete guide to employee stock options.

Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Robert M. on ContractsCounsel
View Robert
5.0 (1)
Member Since:
February 14, 2023

Robert M.

Free Consultation
2 Yrs Experience
Licensed in TN
Nashville School of Law

Robert is a sixth-generation Tennessean and part of a long line of Tennessee attorneys: There has been a Marks attorney in Tennessee since 1856. In 1929, Robert’s great-grandfather established an event venue, Shadowbrook, which Robert has worked at his entire life, including managing for 10 years. He knows what business owners are dealing with—especially venue owners—because he has dealt with it. While Robert loves the hospitality industry, he pursued his passion. In 2016, Robert decided to attend law school and continue managing the business. He thrived. He was a founding member of the Nashville School of Law's Legal Aid Society, received the Tennessee Supreme Court’s Law Student for Justice award, and interned with the Tennessee Supreme Court's Access to Justice Commission. Before co-founding Mercury Legal Group, Robert focused on estate planning in solo practice. In this role, he helped clients protect what they had spent a lifetime building. Now he helps his clients build their businesses by providing tailored legal services.

O.T. W. on ContractsCounsel
View O.T.
5.0 (1)
Member Since:
March 8, 2023

O.T. W.

Free Consultation
Washington, DC
8 Yrs Experience
Licensed in MD, NY
Texas Southern University - Thurgood Marshall School of Law

Hi, my name is O.T. and I own The Walker Collective, a law firm that caters to the contractual, intellectual property, and business formation needs of creative entrepreneurs and small business owners. I am licensed to practice in Maryland and New York.

Faryal A. on ContractsCounsel
View Faryal
4.9 (49)
Member Since:
February 23, 2023

Faryal A.

Free Consultation
1 Yr Experience
Licensed in TX
University of Houston

Ms. Ayub is an attorney licensed to practice in Texas. Before moving to the US, she has a number of years of experience in contract review, analysis and drafting. Ms. Ayub is available to help you with your legal problems, as well as filling LLC and other business entity formation documents. To know more about her practice, please visit

Jason H. on ContractsCounsel
View Jason
4.9 (6)
Member Since:
March 5, 2023

Jason H.

Managing Attorney
Free Consultation
Dallas, Texas
22 Yrs Experience
Licensed in TX, VA
Regent University, School of Law

Jason has been providing legal insight and business expertise since 2001. He is admitted to both the Virginia Bar and the Texas State Bar, and also proud of his membership to the Fellowship of Ministers and Churches. Having served many people, companies and organizations with legal and business needs, his peers and clients know him to be a high-performing and skilled attorney who genuinely cares about his clients. In addition to being a trusted legal advisor, he is a keen business advisor for executive leadership and senior leadership teams on corporate legal and regulatory matters. His personal mission is to take a genuine interest in his clients, and serve as a primary resource to them.

Moxie M. on ContractsCounsel
View Moxie
Member Since:
February 11, 2023

Moxie M.

Employment Lawyer
Free Consultation
Los Angeles, CA
13 Yrs Experience
Licensed in CA, FL, OH
Stetson University College of Law

Lindsey has always been deeply invested in the power of knowledge; she was born and raised in Columbus, Ohio before making her way to Miami University for a dual Bachelor's degree. Afterward, Lindsey completed a Juris Doctor at Stetson University with an International Law concentration before earning a Health & Hospital law Certificate from Seton Hall School of Law. After graduating law school, Lindsey began her career as an associate at a Florida-based insurance litigation firm. She eventually transitioned to become a multi-year Rising Star in Employment Law by Super Lawyers as a labor and employment lawyer with Scott Wagner and Associates, supporting clients in Florida, California & Ohio with employment law matters. Her expertise covers counseling on workplace policies/handbooks; investigations into EEO discrimination/retaliation claims; wage disputes & wrongful terminations - equipping employees across multiple states for success in the ever-changing modern workforce landscape. Leveraging extensive knowledge of state/federal regulations gained from handling dozens of cases over many years, Lindsey has established herself as a leader in the field. Lindsey is a seasoned litigator, well-versed in the complexities of employer and employee disputes. She has represented clients on both sides during numerous mediations and provides an informed perspective when advocating for her clients' interests. She sharpened her dispute resolution skills by completing Harvard Law School's Negotiation Mediation course as part of their Executive Education Program as well as a Florida Circuit Civil Certified Mediator - making her qualified to mediate Circuit Civil cases in Florida as well as California and Ohio. Her breadth of knowledge provides valuable insight into the complexities each side faces while navigating their way through conflict mediation situations. With her varied expertise in the world of entertainment industry employment law, Lindsey has become a go-to source for Hollywood professionals, studios, and companies looking to make sure their legal considerations and entertainment contract law knowledge is up to date. From contract negotiations and employment advice to her outstanding knowledge of current regulations, she provides clients with everything they need for success both now and into the future. Lindsey dedicates her time and expertise to advancing the legal community. She proudly serves on the Executive Council for Florida Bar Association Labor and Employment Section, as well as with American Bar's Membership Outreach Committee in a leadership role. Lindsey is also an respected LA Magazine Editorial Board Member while Co-Chairing both LACBA CLE Event Dinner Committees - focusing on labor and employment law developments. Lindsey is passionate about providing accessible legal services to those in need. She serves on the Pro Bono Mediation Panel for the U.S Central District Court of California, volunteers as a mediator with California Lawyers for Arts and acts as Settlement Officer with Los Angeles Superior Court's ResolveLA program - all while donating her time towards resolving disputes through pro bono mediation at Equal Employment Opportunities Commission (EEOC). Lindsey is a globetrotter, an outdoor enthusiast, and dedicated sports fan all rolled into one. While splitting time between California, Florida and Ohio she has the best of three world - from hiking trails to family gatherings there's always something interesting on her horizon! Plus with photography as a hobby Lindsey enjoys capturing life’s precious moments so they can be treasured for years to come.

Candace M. on ContractsCounsel
View Candace
Member Since:
February 24, 2023

Candace M.

Free Consultation
Prosper, Texas
24 Yrs Experience
Licensed in LA, TX
Loyola University

For over 20 years, as an attorney and real estate broker, Candace has used her passion for business and real estate to help her clients succeed as business owners, entrepreneurs Realtors, and real estate investors. She and her team go above and beyond to simplify and solve those issues which trouble her clients. From the simple to the complex, she is ready to help. Her experience includes, Real Estate law, Contracts, Business Formation, Business Operating AGreements and Entrepreneurial counseling.

Alan A. on ContractsCounsel
View Alan
Member Since:
February 25, 2023

Alan A.

Free Consultation
Austin, Texas
18 Yrs Experience
Licensed in OK, TX
University Of Oklahoma School of Law

I have dedicated my professional career and practice to Federal Government Procurement Law. My practice includes experience as an Army JAG who specialized in Government Procurement Law who represented contracting commands and requiring activities both deployed and in the United States and now as a civilian attorney who represents clients in all aspects of Federal Government Procurement Law. My clients are people and firms that are developing technology through the SBIR/STTR programs, OT's, and businesses using Small Business Administration (SBA) contracting programs.

Find the best lawyer for your project

Browse Lawyers Now
Learn About Contracts
See More Contracts
other helpful articles

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer


Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city