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Atticus Option Agreement Labels

The following Atticus Option Agreement Labels are a list of provisions that are important in option agreement diligence review. The following labels are last edited at 2:40 p.m. on February 16, 2020 (PST).

Label

Explanation

Answer Category

1. Grantee

The person receiving the option grant

Individual Name

2. Grant Date

The date of the option grant

Date

3. Vesting Commencement Date

The date that vesting begins 

Date

4. Shares

The number of shares subject to the option grant

Number

5. Exercise Price

The price at which options can be exercised 

Price

6. Vesting Cliff

The number of year(s) on which the first options vest 

Number

7. Vesting Duration

The total number of years until all options are fully vested

Number

8. Vesting Frequency 

The frequency on which options grant following the vesting cliff 

Drop-down list

9. ISO/NSO

Are the options designated as incentive stock options or nonqualified stock options?

NSO/ISO

10. Cashless Exercise

Can the option be exercised without the grantee paying any exercise price directly in cash?

Yes/No

11. Acceleration 

Do the options accelerate and become partially or fully vested upon certain conditions, including a change of control, or termination without cause or leaving for good reason?

Yes/No

12. Acceleration Amount

What is the percentage of unvested options that will become fully vested upon an acceleration event?

Percentage

13. Cause Definition 

Do the unvested options become fully vested upon termination without cause?

Yes/No

14. Good Reason Definition 

Do the unvested options become fully vested upon the option holder leaving for good reason?

Yes/No

15. Expiration Period 

What is the time period until which the option expires and can no longer be exercised? 

Number of years