Finance & insurance 28 questions 3 pages About 10 min to fill in

Stock Option Exercise Notice Template

Give option holders a clear, signed way to exercise vested options, with grant details, payment and tax withholding choices in one record.

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Stock option exercise notice
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What is the stock option exercise notice form template?

At smaller companies, option exercises often arrive by email: "I'd like to exercise my options, how do I pay?" The equity administrator then has to chase the grant number, the share count, how the price will be paid and what the employee wants done about tax.

This three-page notice asks for all of it. The holder gives their details and employment status — former employees also give their leave date — then the company, plan, grant number and date, type of option, exercise price, number of shares and total price. A note appears if they say the options haven't vested.

The last page covers payment (transfer, cashless through a broker, net exercise or payroll where the plan allows), a tax withholding election, how shares should be registered and held, and an acknowledgement and signature. The signed notice is saved as a PDF in your FileIt vault. Plan documents always govern; adapt the wording with your counsel.

Best for
Startups and private companies running their own option administration
Filled in by
Employees, former employees, directors and advisers holding options
Time to complete
About 5-10 minutes
Includes
Grant details, cashless and cash payment, withholding election, signature

Who uses a stock option exercise notice form?

  • A current employee exercising part of a vested grant
  • A departing employee exercising within the plan's post-termination window
  • An adviser exercising options granted for consulting work
  • A cashless exercise processed through the company's broker
  • A company replacing emailed exercise requests with a signed standard notice
  • An equity administrator collecting withholding elections before a liquidity event

Questions on this stock option exercise notice form

28 questions over 3 pages · includes signature, file upload, conditional questions, multiple pages, consent checkbox.

1 About you

  • Option holder*
  • Employee ID
  • Email*
  • Phone
  • Employment status* Current employee · Former employee · Director, adviser or consultant
  • Date you left* asked only when it applies
  • Mailing address*

2 The grant

  • Company*
  • Plan name
  • Grant number*
  • Grant date*
  • Type of option* Incentive stock option (ISO) · Non-qualified stock option (NSO/NQSO) · EMI option · CSOP option · Other · Not sure — check grant agreement
  • Exercise price per share*
  • Number of shares to exercise*
  • Total exercise price*
  • Have these options vested?*

3 Payment, tax & signature

  • How will you pay the exercise price?* Bank transfer or cheque · Cashless exercise through a broker (same-day sale or sell-to-cover) · Net exercise, if the plan allows · Payroll deduction, if the plan allows
  • Broker or plan administrator* asked only when it applies
  • Brokerage account reference asked only when it applies
  • Cashless instruction* asked only when it applies Sell all shares (same-day sale) · Sell enough to cover price and taxes, keep the rest
  • Date payment will be sent* asked only when it applies
  • Tax withholding election* I'll pay the withholding amount in cash · Withhold shares to cover taxes, if the plan allows · Broker sells shares to cover taxes · Deduct from my pay · No withholding expected for this option type
  • Register shares in the name of*
  • Where should shares be held?* Book entry with the company or transfer agent · My brokerage account · Paper certificate, if the company issues them
  • Supporting documents
  • Acknowledgement*
  • Signature*
  • Date*

The stock option exercise notice form, page by page

1 About you

The holder enters their name, Employee ID, Email and Phone, and picks an Employment status: current employee, former employee, or director, adviser or consultant. Former employees are asked for the date they left, with a reminder that exercise windows come from the plan and grant. A mailing address is required.

2 The grant

The holder names the Company and Plan, then gives the Grant number and Grant date. Type of option lists ISO, NSO, EMI, CSOP, Other, or Not sure. Exercise price per share, Number of shares to exercise and Total exercise price follow. Have these options vested? shows a note about early exercise if the answer is no.

3 Payment, tax & signature

How will you pay the exercise price? offers bank transfer or cheque, cashless exercise through a broker, net exercise or payroll deduction where allowed. Cashless asks for the broker, an account reference and whether to sell all shares or sell to cover; a transfer asks for the payment date.

The Tax withholding election covers paying in cash, share withholding, broker sale or payroll deduction, or no withholding expected. The holder says whose name the shares are registered in and where they should be held, can attach supporting documents, then agrees to the acknowledgement, signs and dates.

Make the template yours

  • Replace the acknowledgement with the wording from your own plan's exercise form, reviewed by counsel
  • Remove option types that don't apply in your country
  • Remove payment methods your plan doesn't allow
  • Add your payment instructions in a paragraph that shows when bank transfer is chosen
  • Send notifications to your equity administrator and payroll
  • Change the currency fields to the currency of your share price

Tips for a better stock option exercise notice form

  • Confirm vested share counts in your equity records before processing
  • Tell holders the exact amount due, including any withholding, before they send money
  • Encourage holders to get their own tax advice — treatment differs by option type and country
  • Keep the signed notice with the grant agreement and board approval records
  • Watch post-termination deadlines for former employees closely

Every response becomes a PDF in your vault

The signed notice is saved as a PDF in the vault folder you choose, with any documents the holder attached. You're emailed when it arrives, and the holder can get a copy.

Your administrator confirms the amount due, processes payment and withholding, and updates the cap table or equity platform. The Responses table gives a running log of exercises.

  1. Start from this template. It opens in the FileIt Forms designer — change any question, add pages, set the rules for when questions appear.
  2. Share it. Turn on a public link, or send it to people by email, each with their own link. They don’t need a FileIt account.
  3. Get the answers as PDFs. Each response is saved as a PDF in the vault folder you choose, with uploaded files attached — and listed in a Responses table you can export to CSV.
Use the stock option exercise notice template — it’s free

Stock option exercise notice form: frequently asked questions

Is this stock option exercise notice free?

Yes. It's a starter template in the FileIt Forms app on every account.

Is the notice legally binding?

It's a written notice with an e-signature, but whether it's effective depends on your plan's requirements. Have counsel check it against your plan documents.

Does FileIt calculate taxes or the amount due?

No. The form collects the holder's choices. Your payroll or equity team works out the amounts.

Does it update our cap table?

No. FileIt files the notice; you update your cap table or equity platform separately.

Can former employees use it?

Yes. The form asks former employees for their leave date so you can check the exercise window.

Do option holders need a FileIt account?

No. You can share a link or send each holder a personal link.

Use this template — free