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Employee Share Agreement
"I need an Employee Share Agreement for our tech startup in Bangalore, covering allocation of 1000 shares to our new CTO with a 4-year vesting period starting March 2025, including standard good/bad leaver provisions and compliance with Indian startup regulations."
1. Parties: Identification of the Company and the Employee
2. Background: Context of the agreement and the company's share scheme
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of Shares: Details of the shares being offered, including number, class, and nominal value
5. Purchase Price: Terms of payment for the shares, if applicable
6. Vesting Schedule: Timeline and conditions for share vesting
7. Rights and Restrictions: Voting rights, dividend rights, and transfer restrictions
8. Tax Obligations: Tax implications and responsibilities of both parties
9. Regulatory Compliance: Compliance with SEBI regulations and other applicable laws
10. Termination Provisions: Consequences of employment termination on share ownership
11. Confidentiality: Confidentiality obligations regarding the agreement and company information
12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction details
13. Notices: Process for serving notices under the agreement
14. General Provisions: Standard boilerplate clauses including amendments, waivers, and severability
1. Lock-in Period: Additional restrictions on share transfers for a specified period, used when company wants to ensure employee retention
2. Tag-Along Rights: Rights of the employee to join in sale of shares by majority shareholders, included for senior employees
3. Drag-Along Rights: Company's right to force employee to sell shares alongside majority shareholders, used in potential exit scenarios
4. Put and Call Options: Options for the company to buy back shares or employee to sell back shares, included when specific exit mechanisms are desired
5. International Transfer Provisions: Additional provisions for international employees, used when agreement covers non-resident employees
6. Performance Conditions: Specific performance targets linked to share vesting, used in performance-based share schemes
1. Share Details: Detailed description of shares including class rights and restrictions
2. Vesting Schedule: Detailed breakdown of vesting dates and conditions
3. Deed of Adherence: Form of deed to be signed by employee accepting terms of any shareholders' agreement
4. Company Constitution Excerpts: Relevant excerpts from company's articles of association regarding share transfers
5. Tax Illustrations: Examples of tax calculations and implications
6. Share Valuation Methodology: Details of how shares will be valued in various scenarios
Authors
Applicable Law
Articles of Association
Board
Business Day
Cause
Company
Confidential Information
Deed of Adherence
Director
Effective Date
Employee
Employment Agreement
Encumbrance
Exercise Period
Exercise Price
Fair Market Value
Financial Year
Good Leaver
Grant Date
Group Company
Hold Period
Lock-in Period
Market Price
Memorandum of Association
Notice
Offer Letter
Ordinary Shares
Parent Company
Parties
Performance Conditions
Purchase Price
Bad Leaver
Related Party
Relevant Securities
SEBI
Share Certificate
Shareholder
Shareholders' Agreement
Shares
Share Transfer Form
Subsidiary
Tag-Along Right
Drag-Along Right
Term
Transfer
Vesting Date
Vesting Period
Vesting Schedule
Voting Rights
Share Grant
Share Purchase
Vesting
Transfer Restrictions
Voting Rights
Dividend Rights
Tag-Along Rights
Drag-Along Rights
Lock-in Period
Put Option
Call Option
Confidentiality
Non-Competition
Non-Solicitation
Tax Obligations
Regulatory Compliance
Termination
Good Leaver Provisions
Bad Leaver Provisions
Share Valuation
Share Certificates
Board Approvals
Shareholder Rights
Amendment
Assignment
Notices
Governing Law
Dispute Resolution
Force Majeure
Severability
Entire Agreement
Waiver
Technology
Manufacturing
Financial Services
Professional Services
Healthcare
Retail
E-commerce
Telecommunications
Real Estate
Construction
Education
Media and Entertainment
Energy
Pharmaceuticals
Consulting
Human Resources
Legal
Finance
Executive Leadership
Company Secretarial
Compliance
Corporate Governance
Share Registry
Board Secretariat
Chief Executive Officer
Chief Financial Officer
Chief Technology Officer
Senior Software Engineer
Department Head
Director
Vice President
Senior Manager
Project Manager
Technical Lead
Product Manager
Sales Director
Operations Manager
Research Scientist
Senior Consultant
Principal Engineer
Business Development Manager
Regional Manager
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