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Restricted Stock Award Agreement for Ireland

Restricted Stock Award Agreement Template for Ireland

This document is a legally binding agreement governed by Irish law that sets out the terms and conditions under which a company grants restricted stock to an employee or executive. It details the vesting conditions, transfer restrictions, and tax implications specific to Irish jurisdiction, while ensuring compliance with the Companies Act 2014 and relevant Irish tax legislation. The agreement includes provisions for share ownership, vesting schedules, termination consequences, and addresses specific requirements under Irish corporate and employment law, including necessary tax elections and reporting obligations.

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What is a Restricted Stock Award Agreement?

The Restricted Stock Award Agreement is a crucial document used by Irish companies to grant shares to employees or executives subject to certain restrictions and vesting conditions. This agreement is commonly used as part of employee compensation and retention strategies, particularly for key personnel. It must comply with Irish company law, tax regulations, and financial services requirements, including the Companies Act 2014 and relevant provisions of the Taxes Consolidation Act 1997. The document outlines the specific terms of the stock award, including vesting schedules, transfer restrictions, and consequences of employment termination. It also addresses tax implications and reporting requirements specific to Irish jurisdiction, making it essential for companies operating under Irish law who wish to implement equity-based compensation programs.

What sections should be included in a Restricted Stock Award Agreement?

1. Parties: Identification of the company issuing the restricted stock and the recipient

2. Background: Context of the award, including reference to any equity incentive plan

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

4. Grant of Restricted Stock: Details of the stock award, including number of shares and grant date

5. Vesting Schedule: Specific vesting conditions, timeline, and requirements

6. Transfer Restrictions: Limitations on transfer of shares during the restriction period

7. Termination of Service: Impact of employment/service termination on the award

8. Tax Provisions: Irish tax implications, responsibilities, and withholding requirements

9. Compliance with Laws: Regulatory compliance requirements and representations

10. Administration: Details of how the award will be administered and by whom

11. Notices: Process for giving formal notices under the agreement

12. General Provisions: Standard legal provisions including governing law, amendment process, and severability

What sections are optional to include in a Restricted Stock Award Agreement?

1. Shareholders' Agreement Adherence: Required if there's an existing shareholders' agreement that the recipient must adhere to

2. Employment Status: Include when clarification is needed that the award does not affect employment status

3. Corporate Transaction Provisions: Include for public companies or where a corporate transaction is contemplated

4. Malus and Clawback: Include for senior executives or when required by corporate governance

5. Non-Competition and Non-Solicitation: Include when additional restrictive covenants are required

6. Data Protection: Detailed GDPR compliance section when extensive personal data processing is involved

What schedules should be included in a Restricted Stock Award Agreement?

1. Schedule 1 - Award Details: Specific details of the award including number of shares, grant date, and vesting schedule

2. Schedule 2 - Vesting Conditions: Detailed performance or time-based conditions for vesting

3. Schedule 3 - Tax Election Forms: Required Irish tax forms and elections

4. Schedule 4 - Acceptance Form: Form for formal acceptance of the award and its terms

5. Appendix A - Copy of Equity Incentive Plan: Full copy of the relevant equity incentive plan

6. Appendix B - Shareholders' Agreement: Copy of applicable shareholders' agreement if relevant

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Ireland

Document Type

Equity Agreement

Cost

Free to use

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