Document background
The Option To Purchase Shares Agreement is a crucial document used in Irish corporate practice to grant individuals or entities the right to purchase shares in a company under specified conditions. This agreement is commonly utilized for employee incentivization, investment arrangements, or strategic business relationships. It must comply with Irish company law, particularly the Companies Act 2014, and relevant tax legislation. The document typically outlines the number of shares subject to the option, exercise price, exercise period, vesting conditions (if any), and circumstances under which the option may lapse. It's particularly important in startups and growing companies looking to attract and retain talent, or in investment scenarios where parties wish to secure future equity participation. The agreement should be carefully drafted to address tax implications, corporate governance requirements, and any specific conditions relevant to the company's circumstances.
