Share Vesting Agreement Template for New Zealand

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Key Requirements PROMPT example:

Share Vesting Agreement

"I need a Share Vesting Agreement for our New Zealand tech startup, where we're granting 10,000 shares to our new CTO with a 4-year vesting period starting March 2025, including a 6-month cliff and accelerated vesting provisions in case of company sale."

Document background
Share Vesting Agreements are crucial documents in New Zealand's corporate landscape, particularly used by companies looking to attract and retain key talent through equity-based compensation. This Share Vesting Agreement serves as a legally binding contract that outlines how and when shares will be earned by the recipient over time, typically through continued service or achievement of specific milestones. It's commonly used in startups and established companies alike, particularly when offering equity as part of compensation packages or incentive schemes. The document must comply with New Zealand's Companies Act 1993, Financial Markets Conduct Act 2013, and relevant tax legislation, making it essential for structuring employee equity arrangements in accordance with local law. The agreement protects both the company's interests by ensuring long-term commitment and the recipient's rights to gradually acquire ownership in the business.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including the company, shareholder(s), and any other relevant parties

2. Background: Explains the context and purpose of the agreement, including the relationship between the parties and the reason for the share vesting arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Grant of Shares: Details the number and class of shares being granted and any initial conditions

5. Vesting Schedule: Specifies the vesting timeline, milestones, and conditions that must be met for shares to vest

6. Share Rights and Restrictions: Outlines the rights attached to the shares and any restrictions on their transfer or disposal

7. Termination Provisions: Describes what happens to vested and unvested shares upon various termination scenarios

8. Company's Rights and Obligations: Sets out the company's responsibilities regarding share issuance, maintenance of records, and other obligations

9. Shareholder's Rights and Obligations: Details the shareholder's responsibilities and commitments under the agreement

10. Confidentiality: Establishes confidentiality obligations regarding the agreement and company information

11. General Provisions: Standard contract clauses including governing law, notices, amendments, and dispute resolution

Optional Sections

1. Accelerated Vesting: Include when there are circumstances that would trigger automatic vesting of shares (e.g., change of control, IPO)

2. Voting Rights: Include when specific voting arrangements need to be established for unvested shares

3. Tax Provisions: Include detailed tax clauses when specific tax elections or arrangements need to be addressed

4. Drag-Along Rights: Include when majority shareholders need the right to force minority shareholders to join in the sale of the company

5. Tag-Along Rights: Include when minority shareholders should have the right to join in any sale by majority shareholders

6. Performance Criteria: Include when vesting is tied to specific performance metrics or milestones

7. Clawback Provisions: Include when the company needs the right to reclaim vested shares under certain circumstances

Suggested Schedules

1. Schedule 1 - Share Details: Detailed information about the shares including class, number, nominal value, and any special rights

2. Schedule 2 - Vesting Schedule: Detailed timeline of vesting dates and percentages or numbers of shares vesting at each milestone

3. Schedule 3 - Deed of Adherence: Form of deed to be signed by any new shareholders joining the agreement

4. Schedule 4 - Share Transfer Form: Template form for transferring shares

5. Schedule 5 - Performance Criteria: Detailed description of any performance-based vesting conditions

6. Appendix A - Shareholders' Resolution: Copy of the shareholders' resolution approving the share vesting arrangement

7. Appendix B - Board Resolution: Copy of the board resolution approving the share vesting arrangement

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

Relevant legal definitions
Clauses
Relevant Industries

Technology

Professional Services

Financial Services

Startups

Consulting

Software Development

Biotechnology

E-commerce

Digital Media

Manufacturing

Healthcare

Relevant Teams

Legal

Human Resources

Finance

Corporate Governance

Executive Leadership

Compensation & Benefits

Board of Directors

Company Secretariat

Compliance

People Operations

Relevant Roles

CEO

CFO

HR Director

Legal Counsel

Company Secretary

Board Member

Senior Executive

Startup Founder

Managing Director

Chief Technology Officer

Head of People

Compensation Manager

Corporate Lawyer

Employment Lawyer

Finance Manager

Executive Director

Industries
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

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