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Employee Equity Agreement
"I need an Employee Equity Agreement under Philippine law for our Series A startup, granting stock options to our new CTO with a 4-year vesting schedule starting March 2025, including special provisions for accelerated vesting in case of acquisition."
1. Parties: Identification of the Company and the Employee
2. Background: Context of the agreement, including the employee's role and the company's equity incentive program
3. Definitions: Key terms used throughout the agreement, including types of shares, vesting periods, and exercise price
4. Grant of Equity: Details of the equity being granted, including number of shares/options and type
5. Vesting Schedule: Timeline and conditions for the vesting of equity rights
6. Exercise Terms: Procedures and conditions for exercising equity rights
7. Purchase Price and Payment: Details of the exercise price and acceptable payment methods
8. Tax Obligations: Responsibilities for tax payments and withholding requirements
9. Restrictions on Transfer: Limitations on selling or transferring the equity
10. Company's Right of First Refusal: Company's rights to purchase shares before they can be sold to third parties
11. Termination Provisions: Effects of employment termination on equity rights
12. Representations and Warranties: Statements of fact and promises by both parties
13. Confidentiality: Obligations to maintain confidentiality regarding the agreement and company information
14. Governing Law: Specification of Philippine law as governing law and jurisdiction
15. General Provisions: Standard clauses including amendments, notices, and entire agreement
1. Tag-Along Rights: Optional provision giving the employee right to join in sale of shares by major shareholders
2. Drag-Along Rights: Optional provision requiring employee to join in sale of company if approved by major shareholders
3. Lock-up Period: Optional restriction period on selling shares after initial grant or exercise
4. Put Option: Optional right for employee to sell shares back to company under specific conditions
5. International Tax Provisions: Required if employee is subject to tax laws of multiple jurisdictions
6. Foreign Ownership Compliance: Required if employee is non-Filipino and company operates in restricted industries
7. Share Adjustment Provisions: Optional provisions for adjusting equity in case of corporate restructuring
1. Schedule A - Equity Grant Details: Detailed breakdown of equity grant including number of shares/options and vesting schedule
2. Schedule B - Vesting Milestones: Specific performance or time-based milestones triggering vesting
3. Schedule C - Exercise Notice Form: Template form for exercising equity rights
4. Schedule D - Deed of Adherence: Form binding employee to company's shareholders agreement
5. Appendix 1 - Tax Summary: Summary of relevant tax implications and requirements
6. Appendix 2 - Securities Law Disclosures: Required disclosures under Philippine securities regulations
7. Appendix 3 - Shareholders Agreement Summary: Key provisions of the company's shareholders agreement affecting the employee
Authors
Technology
Financial Services
E-commerce
Telecommunications
Manufacturing
Professional Services
Healthcare
Real Estate
Consumer Goods
Media and Entertainment
Software Development
Biotechnology
Retail
Energy
Education Technology
Human Resources
Legal
Finance
Executive Leadership
Corporate Governance
Compensation & Benefits
Risk Management
Compliance
Corporate Strategy
Operations
Chief Executive Officer
Chief Technology Officer
Chief Financial Officer
Chief Operating Officer
Senior Software Engineer
Product Manager
Sales Director
Marketing Director
Department Head
Vice President
Regional Manager
Technical Lead
Senior Account Manager
Research Director
Principal Engineer
Business Development Manager
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