All Countries
Employment
Employee Share Agreement

Employee Share Agreement Template for Germany

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Employee Share Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Employee Share Agreement

"I need an Employee Share Agreement for our German GmbH tech startup, offering 1000 shares to senior developers with a 4-year vesting period starting March 2025, including bad leaver provisions and tag-along rights."

Celebrated by
Collaborations with
Investors
Document background
The Employee Share Agreement is a crucial document used in German companies to formalize employee participation in company ownership through share schemes. It is typically implemented as part of employee retention and motivation strategies, particularly in growth-oriented companies or those preparing for significant corporate events. The agreement must comply with German corporate law, securities regulations, and employment legislation, including specific requirements under the Stock Corporation Act (Aktiengesetz) and Securities Trading Act (Wertpapierhandelsgesetz). It details share allocation, vesting schedules, transfer restrictions, and tax implications, while ensuring alignment with Works Council requirements where applicable. This document is essential for companies seeking to establish long-term employee incentivization programs while maintaining compliance with German legal frameworks.
Suggested Sections

1. Parties: Identification of the company and the employee participant

2. Background: Context of the agreement and the employee share program

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Shares: Details of the shares being granted, including number, class, and nominal value

5. Purchase Price and Payment: Terms of payment for the shares, if applicable

6. Vesting Conditions: Vesting schedule and conditions for share ownership

7. Transfer Restrictions: Limitations on the transfer of shares

8. Termination of Employment: Consequences for the shares upon various types of employment termination

9. Tax Obligations: Tax responsibilities and implications for both parties

10. Shareholder Rights: Voting rights, dividend rights, and other shareholder privileges

11. Data Protection: GDPR compliance and data handling provisions

12. Notices: Communication procedures between parties

13. Governing Law: Confirmation of German law application and jurisdiction

Optional Sections

1. Performance Conditions: Additional performance-based vesting conditions, used when shares are linked to specific performance targets

2. International Provisions: Special provisions for international employees, used when the program includes non-German participants

3. Tag-Along Rights: Rights of the employee to participate in sale of majority shares, used in smaller companies or startups

4. Drag-Along Rights: Company's right to force employee participation in sale, used in smaller companies or startups

5. Lock-up Period: Specific holding period requirements, used when mandatory holding periods apply

6. Bad Leaver Provisions: Detailed consequences for termination due to misconduct, used when additional punitive measures are desired

7. Works Council Approval: Reference to works council involvement, required when works council has participation rights

Suggested Schedules

1. Share Certificate: Form of share certificate or confirmation of electronic registration

2. Vesting Schedule: Detailed breakdown of vesting timeline and milestones

3. Shareholders' Agreement: Copy or relevant excerpts of the existing shareholders' agreement

4. Tax Examples: Illustrative examples of tax calculations and implications

5. Share Acceptance Form: Form for employee to formally accept the share grant

6. Company Articles: Relevant excerpts from the company's articles of association

7. Power of Attorney: Form for execution of necessary share-related actions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Articles of Association
Bad Leaver
Board
Business Day
Change of Control
Company
Confidential Information
Corporate Event
Drag-Along Rights
Effective Date
Employee
Fair Market Value
Good Leaver
Grant Date
Group
Initial Public Offering (IPO)
Lock-up Period
Market Price
Nominal Value
Notice
Parent Company
Participant
Performance Conditions
Purchase Price
Related Persons
Relevant Employment
Share Certificate
Share Program
Shareholders' Agreement
Shares
Subsidiary
Tag-Along Rights
Tax Liability
Termination Date
Transfer
Vesting Date
Vesting Period
Vesting Schedule
Works Council
Works Constitution Act
Exercise Price
Voting Rights
Dividend Rights
Clauses
Share Grant
Purchase and Payment
Vesting Conditions
Transfer Restrictions
Share Rights
Voting Rights
Dividend Rights
Employment Conditions
Termination Provisions
Good Leaver/Bad Leaver
Tax Obligations
Data Protection
Confidentiality
Non-Competition
Tag-Along Rights
Drag-Along Rights
Change of Control
Corporate Events
Works Council Provisions
Information Rights
Representations and Warranties
Notices
Assignment
Amendment
Severability
Entire Agreement
Governing Law
Jurisdiction
Lock-up Requirements
Share Certificate Issuance
Performance Conditions
Put and Call Options
Share Valuation
Dispute Resolution
Power of Attorney
Relevant Industries

Technology

Financial Services

Manufacturing

Professional Services

Healthcare

Retail

Energy

Telecommunications

Software

Consulting

E-commerce

Biotechnology

Media and Entertainment

Real Estate

Automotive

Relevant Teams

Human Resources

Legal

Finance

Compensation and Benefits

Tax

Compliance

Corporate Governance

Executive Leadership

Payroll

Employee Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Head of Human Resources

Legal Counsel

Compensation and Benefits Manager

Employee Share Plan Administrator

HR Director

Corporate Secretary

Financial Controller

Tax Manager

Compliance Officer

Senior Software Engineer

Department Manager

Regional Director

Senior Executive

Managing Director

Industries
German Stock Corporation Act (Aktiengesetz - AktG): Fundamental law governing stock corporations, share issuance, and shareholder rights in Germany
German Securities Trading Act (Wertpapierhandelsgesetz - WpHG): Regulates trading in securities and provides framework for employee share schemes
German Income Tax Act (Einkommensteuergesetz - EStG): Governs taxation of benefits from employee share schemes, particularly §3 No. 39 regarding tax-privileged employee participation
German Civil Code (Bürgerliches Gesetzbuch - BGB): Provides general contract law principles and requirements for valid agreements
German Employment Law (Arbeitsrecht): Ensures compliance with employment regulations and proper integration with existing employment contracts
General Data Protection Regulation (GDPR/DSGVO): Ensures proper handling of employee personal data in share agreement administration
Works Constitution Act (Betriebsverfassungsgesetz - BetrVG): May require works council consultation for implementation of employee share programs
German Limited Liability Companies Act (GmbH-Gesetz): Relevant if the company is a GmbH, governing share transfer and ownership restrictions
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Stock Option Agreement Private Company

A legally binding agreement under German law that establishes terms for granting and exercising stock options in a private company.

find out more

Employee Share Option Agreement

A German law-governed agreement granting employees the right to purchase company shares at predetermined terms, subject to vesting conditions and local regulations.

find out more

Stock Option Exercise Agreement

A German-law agreement documenting the exercise of stock options and conversion into company shares, including payment terms and regulatory compliance requirements.

find out more

Incentive Stock Option Agreement

A German law-governed agreement detailing the terms and conditions for granting employee stock options, compliant with German corporate and tax regulations.

find out more

Non Qualified Stock Option Agreement

A German law-governed agreement granting rights to purchase company shares at a preset price, detailing terms, conditions, and regulatory compliance requirements.

find out more

Option Grant Agreement

A German law-governed agreement detailing the terms and conditions for granting stock options to individuals, typically as part of a company's equity compensation program.

find out more

Stock Option Award Agreement

A German-law governed agreement outlining the terms and conditions for granting company stock options to employees, complying with German corporate, securities, and tax regulations.

find out more

Stock Option Cancellation Agreement

A German law-governed agreement documenting the cancellation of employee stock options, including terms, consideration (if any), and mutual releases.

find out more

Phantom Share Agreement

A German law agreement establishing synthetic equity rights that mirror share ownership benefits without actual share transfer, providing cash payments based on company value appreciation.

find out more

Employee Share Agreement

A German law-governed agreement establishing terms for employee share ownership, including grant, vesting, and transfer conditions.

find out more

Stock Option Purchase Agreement

A German law-governed agreement establishing terms for granting company stock options to individuals, typically as part of compensation or incentive packages.

find out more

Employee Stock Option Agreement

A German-law governed agreement granting employees the right to purchase company shares under specified terms and conditions, compliant with German corporate and employment regulations.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.