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Stock Grant Agreement template
Stock Grant Agreement sample


What is Stock Grant Agreement?

Stock Grant Agreement An agreement granting stock or equity to individuals or employees, specifying the grant terms, vesting schedule, and stock options.



Sample template:



Stock Grant Agreement


1. Grant of Stock

1.1. Grant


Company ("Grantor") hereby grants to Janice Parker ("Grantee") a total of ______ shares of common stock of the Grantor (the "Shares"), subject to the terms, conditions, and restrictions set forth in this Stock Grant Agreement (the "Agreement"). The grant of Shares under this Agreement is made pursuant to the Company's Stock Grant Plan (the "Plan").



2. Vesting Schedule

2.1. Vesting Period


The Shares granted herein shall vest over a four-year vesting period (the "Vesting Period") commencing on the Grant Date, which is the date of execution of this Agreement. The Shares shall vest as follows:


i. Twenty-five percent (25%) of the Shares shall vest upon completion of one (1) year of service from the Grant Date;


ii. The remaining seventy-five percent (75%) of the Shares shall vest in equal monthly installments over the next thirty-six (36) months of service.



3. Transfer Restrictions

3.1. Restrictions


Grantee agrees that the Shares, or any interest therein, may not be sold, assigned, transferred, pledged, or otherwise disposed of or encumbered, voluntarily or involuntarily, until the Shares have vested pursuant to the Vesting Schedule. Any attempt to transfer the Shares in violation of this Section 3 shall be null and void.



4. Stock Options

4.1. Grant of Stock Options


Grantor agrees that Grantee shall have the right to purchase additional shares of grantor's common stock ("Stock Options") in accordance with the terms and conditions set forth in a separate Stock Option Agreement and the Plan. The number of shares, the exercise price, and the terms of the Stock Option Agreement shall be determined by the Grantor's Board of Directors in its sole discretion.



5. Termination and Adjustment Provisions

5.1. Termination of Service


Upon termination of Grantee's service with the Grantor for any reason, all unvested Shares will be forfeited by Grantee and will be returned to the Grantor. Grantee will have no further rights with respect to the unvested Shares.


5.2. Change in Capital Structure


In the event of any change in the outstanding shares of common stock of the Grantor by reason of a stock dividend, stock split, recapitalization, combination, reclassification, or any similar event, the number of Shares granted under this Agreement shall be adjusted proportionately by the Grantor's Board of Directors in its sole discretion.



6. Governing Law and Compliance

6.1. Governing Law


This Agreement shall be governed by and construed in accordance with the laws of the United States and the state of incorporation of the Grantor, without regard to any conflict of laws provisions.


6.2. Compliance with Laws


Grantee agrees to comply with all applicable federal, state, and local laws, rules, and regulations governing the ownership and disposition of the Shares, including, but not limited to, securities laws and any rules and regulations of the Securities and Exchange Commission.



7. Binding Agreement

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, heirs, executors, and administrators.



8. Counterparts

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.



9. Entire Agreement and Amendments

This Agreement, together with the Plan, constitutes the entire understanding of the parties relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, whether written or oral, with respect to such subject matter. This Agreement may be amended, modified, or waived only in writing signed by both parties.



IN WITNESS WHEREOF, the parties have executed this Stock Grant Agreement as of the date first written above.

GRANTOR:

______________________
[Company Name]
By: __________________
[Name]
[Title]

GRANTEE:

______________________
Janice Parker

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Main Sections of a Stock Grant Agreement


In this Stock Grant Agreement, you will see the following sections:

  1. Grant of Stock
  2. Vesting Schedule
  3. Transfer Restrictions
  4. Stock Options
  5. Termination and Adjustment Provisions
  6. Governing Law and Compliance
  7. Binding Agreement
  8. Counterparts
  9. Entire Agreement and Amendments


About each Section - Analysis and Summary:

  1. Grant of Stock : This section explains that the company is giving Janice Parker a certain number of shares of the company's common stock. The grant is subject to the terms and conditions in this agreement and the company's Stock Grant Plan.

  2. Vesting Schedule : This section outlines when Janice will gain full ownership of the granted shares. It states that 25% of the shares will be hers after one year of service, and the remaining 75% will be given in equal monthly installments over the next three years.

  3. Transfer Restrictions : This section states that Janice cannot sell, transfer, or otherwise dispose of the shares until they have vested according to the Vesting Schedule. Any attempt to do so before the shares have vested will be considered invalid.

  4. Stock Options : This section explains that Janice has the right to purchase additional shares of the company's common stock under certain terms and conditions, which will be outlined in a separate Stock Option Agreement and the Stock Grant Plan. The company's Board of Directors will determine the specifics of this agreement.

  5. Termination and Adjustment Provisions : This section states that if Janice's service with the company ends for any reason, she will lose any unvested shares and have no further rights to them. Additionally, if there are any changes to the company's common stock (e.g., stock split, stock dividend), the number of granted shares may be adjusted accordingly by the Board of Directors.

  6. Governing Law and Compliance : This section explains that the agreement is governed by the laws of the United States and the state where the company is incorporated. Janice must also comply with all applicable laws, rules, and regulations related to owning and disposing of the shares, including securities laws and regulations.

  7. Binding Agreement : This section states that the agreement is binding on both parties and their successors, assigns, heirs, executors, and administrators.

  8. Counterparts : This section explains that the agreement can be signed in multiple copies, each considered an original, but all together making up one complete agreement.

  9. Entire Agreement and Amendments : This section states that this agreement, along with the Stock Grant Plan, represents the entire understanding between the parties regarding the subject matter. Any changes to the agreement must be made in writing and signed by both parties.

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