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Equity Incentive Agreement
"I need an Equity Incentive Agreement for our New Zealand tech startup to grant stock options to our senior developers, with a four-year vesting schedule starting March 2025 and special provisions for remote workers in Australia."
1. Parties: Identifies the company and the participant(s) entering into the agreement
2. Background: Sets out the context of the agreement and the company's intention to provide equity incentives
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles
4. Grant of Equity Incentive: Details the specific type and amount of equity incentive being granted
5. Vesting Conditions: Specifies the vesting schedule and conditions that must be met
6. Exercise of Rights: Procedures and conditions for exercising equity incentives
7. Restrictions on Transfer: Limitations on transferring or disposing of the equity incentives
8. Termination Provisions: Consequences of employment termination on equity incentives
9. Tax Obligations: Addresses tax implications and responsibilities
10. Compliance with Laws: Ensures compliance with relevant securities and corporate laws
11. Confidentiality: Protects confidential information related to the agreement
12. General Provisions: Standard contractual terms including notices, amendments, and governing law
1. Change of Control Provisions: Used when specific provisions are needed for company sale or merger scenarios
2. Clawback Provisions: Include when the company wants right to recoup incentives under certain circumstances
3. Good Leaver/Bad Leaver Provisions: Used to differentiate treatment of incentives based on circumstances of employment termination
4. Share Cap Provisions: Include when there's a need to limit the total number of shares available under the scheme
5. Market Standoff Agreement: Used for pre-IPO companies or when planning public offering
6. Tag-Along Rights: Include when participants should have right to join in sale of majority shareholding
7. Drag-Along Rights: Include when company wants right to force participants to join in company sale
1. Schedule 1 - Grant Notice: Details of specific grant including number of shares/options and vesting schedule
2. Schedule 2 - Vesting Schedule: Detailed breakdown of vesting dates and conditions
3. Schedule 3 - Exercise Notice: Form for exercising equity incentives
4. Schedule 4 - Shareholders Agreement Deed of Accession: Form to become party to shareholders agreement upon exercise
5. Schedule 5 - Tax Summary: Summary of tax implications and treatment of equity incentives
6. Schedule 6 - Prohibited Jurisdictions: List of jurisdictions where equity incentives cannot be offered
7. Appendix A - Company Constitution Excerpts: Relevant sections of company constitution affecting equity incentives
Authors
Applicable Law
Award
Board
Business Day
Cause
Change in Control
Company
Competitor
Confidential Information
Constitution
Control
Date of Grant
Director
Disability
Effective Date
Eligible Person
Employee
Exercise Date
Exercise Notice
Exercise Period
Exercise Price
Expiry Date
Fair Market Value
Financial Markets Conduct Act
Good Leaver
Bad Leaver
Grant Notice
Group
Group Company
Holding Company
Independent Director
Issue Price
Market Price
Notice
Option
Participant
Performance Conditions
Plan
Related Company
Restricted Share
Right
Securities
Share
Shareholder
Shareholders Agreement
Subsidiary
Takeover Offer
Tax
Termination Date
Transfer
Trust Deed
Trustee
Unvested Awards
Vest
Vested Awards
Vesting Conditions
Vesting Date
Vesting Period
Voting Rights
Vesting
Exercise Rights
Transfer Restrictions
Termination
Confidentiality
Compliance with Laws
Tax Obligations
Employment Status
Change of Control
Share Rights
Voting Rights
Dividend Rights
Capital Restructure
Takeover Provisions
Good Leaver/Bad Leaver
Clawback
Non-Competition
Non-Solicitation
Dispute Resolution
Notices
Assignment
Amendment
Severability
Entire Agreement
Governing Law
Jurisdiction
Force Majeure
Representations and Warranties
Share Capital Adjustments
Plan Administration
Costs and Expenses
Data Protection
Electronic Communications
Time of Essence
Further Assurance
Technology
Financial Services
Professional Services
Healthcare
Manufacturing
Retail
Energy
Telecommunications
Biotechnology
Real Estate
Consumer Goods
Software Development
Consulting
E-commerce
Legal
Human Resources
Finance
Executive Leadership
Board of Directors
Corporate Governance
Compensation and Benefits
Corporate Secretary Office
Chief Executive Officer
Chief Financial Officer
Human Resources Director
General Counsel
Company Secretary
Legal Counsel
HR Manager
Compensation Specialist
Finance Manager
Board Director
Chief Operating Officer
Department Head
Senior Manager
Executive Director
Vice President
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