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Agreement With Employee for the Grant of Shares

Key points and template

Approovd helps you to create a legally compliant share grant agreement with your employees easily and in just a few minutes. For only CHF 89 per document.

Key Points Included in This Share Grant Agreement

Number and price of shares granted
Payment modalities
Transfer restrictions and blocking periods
Whether the granted shares are held in treasury or will be newly issued to the employee

Use This Share Grant Agreement if …

…you have a participation plan in place under which employees can become shareholders of your company

… you want to give a certain employee the opportunity to buy shares in your company

What is a Share Grant Agreement?

In an employee share participation plan, a company sets forth the rules under which it grants shares to all or some of its employees (for example, senior employees).

Unlike an option participation plan, the employee directly receives shares and thus becomes a shareholder, after he or she has paid the purchase price. The latter is generally lower than the value of the shares.

The goal of the plan is broadly to incentivize key persons to stay with the company and perform by allowing them to participate in its financial success.

The actual grant of shares to individual employees pursuant to the plan can be done using different legal instruments. The use of a share grant agreement as provided for here emphasizes that the undertakings of the company and the employee are reciprocal: on the one hand, the company undertakes to transfer a certain number of shares to the employee (usually on preferential terms), on the other hand, the employee undertakes to pay the price of the shares in accordance with the agreed terms. Also, the share agreement may stipulate that the shares will be blocked for a certain period of time, which allows for the retention of the employee and certain tax benefits.