Definitions for "Employee Stock Option"
Stock options granted to specified employees of a company. ESOs carry the right, but not the obligation, to buy a certain amount of shares in the company at a predetermined price. ESOs are slightly different from regular options, because they don't have puts and you typically must wait a specified period before you are allowed to exercise the option.
a contract between the company and the employee obligating the company to sell stock to the employee in the future at a predetermined price
an agreement between a firm and its employees under which the employees can buy a specified number of shares of stock at a specified price