Stock Vesting Schedule
Employee: [Employee Name]
Position: [Employee Position]
Date of Agreement: [Effective Date]
I. Purpose
The purpose of this Stock Vesting Schedule is to formally establish the conditions and timeline under which [Employee Name], herein referred to as "the Employee," will acquire ownership of certain shares of stock in [Your Company Name], herein referred to as "the Company." This Agreement is a critical part of the Employee's comprehensive compensation package and is designed to incentivize sustained and impactful contribution to the Company’s growth and success.
II. Stock Vesting Schedule
Milestone | Vesting Date | Number of Shares | Vesting Percentage |
Initial Grant | [Date] | [XXX] | [XX%] |
1st Year Anniversary | | | |
2nd Year Anniversary | | | |
3rd Year Anniversary | | | |
4th Year Anniversary | | | |
III. Terms and Conditions
A. Cliff Period: There will be a one-year cliff period starting from the [Effective Date]. No stocks will vest before the first anniversary of the [Effective Date].
B. Accelerated Vesting: In case of [specific conditions like sale of the company, termination, etc.], accelerated vesting conditions may apply as detailed in the Employment Contract or separate Accelerated Vesting Agreement.
C. Termination: Unvested shares will be forfeited if the Employee leaves or is terminated from the Company before the shares are fully vested.
D. Restrictions: The Employee shall not sell, transfer, or pledge vested shares before meeting the Company's standard lock-up period.
E. Tax Liabilities: The Employee is responsible for any tax obligations arising from the vesting or sale of stocks.
IV. Governing Law
This Stock Vesting Schedule Agreement ("Agreement") shall be governed by, construed, and interpreted in accordance with the laws of the jurisdiction of [State/Country], without regard to its conflict of law principles. Any legal action or proceeding relating to this Agreement shall exclusively be brought in the federal or state courts of competent jurisdiction located in [State/Country]. By entering into this Agreement, both [Your Company Name] and [Employee Name] mutually agree to submit to the jurisdiction of these courts and waive any objections based on inconvenient forum or any similar grounds. This stipulation regarding the applicable governing law and jurisdiction provides a standardized framework for resolving any disputes or interpretive issues that may arise in relation to this Agreement.
V. Acknowledgment
Both parties acknowledge that they have read, understood, and agreed to the terms outlined in this Stock Vesting Schedule Agreement.
[Your Company Name]
[Your Name], [Your Job Title]
[Employee Name], [Job Title]
Date: [Month Day, Year]
For any inquiries regarding this Stock Vesting Schedule, please contact [HR Department, Email, Phone Number] or [Your Company Email] and [Your Company Number].
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