Document background
The Restricted Share Agreement is a crucial document used by Belgian companies to implement employee share ownership programs and executive compensation schemes. It serves as the primary instrument for granting company shares subject to certain restrictions and vesting conditions, typically as part of long-term incentive plans or retention strategies. The agreement must comply with Belgian corporate law, particularly the Belgian Companies and Associations Code, as well as relevant tax and employment regulations. It outlines specific details about the share grant, including the number and class of shares, vesting schedule, transfer restrictions, and the rights and obligations of both the company and the share recipient. This document is particularly important for companies looking to align employee interests with company performance while maintaining certain controls over share ownership and transfer. The agreement includes provisions for various scenarios such as employment termination, change of control, and compliance with Belgian tax requirements regarding share-based compensation.
