Employee Option Plan

Employment Agreement

Employee Option Plan 

Building on and improving ATO-approved documentation, our high-tech Employee Option Plan has been designed as a tax-deferred scheme, whether or not the startup tax concessions apply. Our team has tightened up the drafting and taken the document to the next level. Automatically generate customised offer letters at the same time.


Under 15 minutes


Approx. 15 pages 


About this document

Our high-tech Employee Option Plan has been carefully designed as a tax-deferred scheme regardless of whether or not the ‘startup’ tax concessions apply. Modelled upon the ATO-approved documentation for the ‘startup’ tax concession, our expert team has significantly tightened up the drafting and taken the document to the next level. Our automated Employee Option Plan includes:

  • Good Leaver/Bad Leaver provisions;
  • detailed time-based vesting criteria;
  • ability to add performance-based vesting criteria; and
  • ability for the employer company to be a subsidiary of the parent company issuing the options.

Additionally, you can also create a tax-deferred scheme that is not subject to the ‘startup’ tax concession limitations, including the ability to issue options with a nil exercise price.

Many practitioners are unaware of the fact that, for the ‘startup’ tax concession to apply, the scheme can permit options over ordinary shares only, and the exercise price needs to be the “fair market value” of an ordinary share as at the date on which the options were granted. Those limitations actually make the ‘startup’ tax concession documentation untenable for most startup companies that need to issue options with a nil exercise price.

As an added bonus, you can also automatically generate fully-customised employee offer letters for making grants of options under the Employee Option Plan all at the same time!

Document overview:

  • Carefully designed tax-deferred equity incentive plan modelled on ATO-approved documentation
  • Suitable for the ‘startup’ tax concession or more flexible if desired
  • Can accommodate options with a nil exercise price
  • 1-5 year vesting timetable + ability to specify custom performance targets/vesting conditions
  • Automatically generate offer letters to employees for each grant of options at the same time!
  • You can also create fully-customised offer letters for grants of options to employees pursuant to the Employee Option Plan at no extra charge. This can be done automatically – enter the details once and save time!

Interview time

It takes under 15 minutes for you to have employment agreement ready for use.

Document length

Approximately 15 pages long (it allows you to fully-customised offer letters for grants of options to employees pursuant to the Employee Option Plan at no extra charge).

Document type



This interview will generate a document based on the information provided by you. It does not and is not intended to represent legal advice or the practice of law (even if the information you input is based on suggestions or tips provided by us).

Please note: if you want professional assurance that this template and your interpretation of it is appropriate to your particular situation, we recommend that you consult with a lawyer authorised to practice law in your jurisdiction.

Boost Legal Templates have a dedicated team of professionals who are experts when it comes to small business enquiries. With the support of Mathew and team, I have been able to gather the documentation needed to grow my small business with confidence. .

Mervyn Fernando

Claystone Marketing

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