Restricted stock purchase agreement template. Of the shares and grant a series of rights in favor of the company to buyback shares exercise a right of first. There are many different types of agreements being used in different industries today especially in business industries. Restricted stock purchase agreements offer a way for the company to better protect its ownership. Loosely based on orricks restricted stock purchase agreement this restricted stock purchase agreement has the founder contribute certain assets ip cash whatever to the startup in exchange for restricted stock on a vesting schedule.
A restricted stock agreement imposes some restrictions on shareholders rights and is known as restricted stock units. Restricted stock purchase agreements. Restricted stock purchase agreement startup law resources venture capital financing employment law human resources. Few restrictions include the lock in arrangements by startup founders drag along tag along rights limits on contribution non compete non solicitation covenants.
1 network engines inc. Genovesi nov 14 2001 restricted stock purchase agreement build a bear workshop inc. Restricted stock plan agreement a restricted stock plan is an option offered by companies to their employees especially executives as part of a compensation package where the top performing employees get the right to buy stocks or other financial products at a specific price in the future. The restrictions generally restrict selling transferring etc.
Together they establish the relationship between the. One of these agreements is a stock purchase agreementin this article we will define what a stock purchase agreement is enumerate its uses determine its key provisions and justify its importance. This restricted stock purchase agreement the agreement is made as of date by and between company name a delaware corporation the company and purchaser name purchaser pursuant to the companys stock plan name the plan. Restricted stock agreement amendment no.
A restricted stock purchase agreement is a type of written agreement that places restrictions on the stockholders rights with respect to the shares being issued. And brian vent sep 19 2001. Execution of award agreement. To the extent any capitalized terms used in this agreement are not defined.
When stock options are offered to attract talented employees this type of agreement gives an extra incentive for employee loyalty. This restricted stock purchase note and restricted stock purchase agreement is used to sell restricted stock of company to an individual.