Common Stock Purchase Agreement with Vesting

• Category: Small Business - Business Types and Forms - Corporations - Formation
• State: Multi-State
• Control #: US-ENTREP-00102-1
• Format: Word; Rich Text

Description

This is a form Founder Stock Purchase AgreementB between a start-up company and its founder. It is to be used in connection with the purchase of company equity by a founder pursuant to a vesting schedule. This form includes practical guidance, drafting notes, and optional clauses. A Common Stock Purchase Agreement with Vesting is a contract between a company and its employee that outlines the terms and conditions of the purchase of company shares. This agreement typically includes the number of stocks to be purchased, the purchase price, the vesting schedule, and the rights and obligations of the parties. Vesting typically means that the employee will receive full ownership of the stock after a certain period of time. The vesting schedule is typically based on the length of employment, performance targets, or a combination of both. There are two main types of Common Stock Purchase Agreement with Vesting: 1. Time-Based Vesting: The employee earns the shares over a fixed period of time, such as three or five years. This vesting schedule is often used when the company wants to reward employees for a long period of service and loyalty. 2. Performance-Based Vesting: The employee earns the shares based on performance targets, such as reaching a certain number of sales or achieving a certain profit margin. This vesting schedule is often used when the company wants to reward employees for exceptional performance.

A Common Stock Purchase Agreement with Vesting is a contract between a company and its employee that outlines the terms and conditions of the purchase of company shares. This agreement typically includes the number of stocks to be purchased, the purchase price, the vesting schedule, and the rights and obligations of the parties. Vesting typically means that the employee will receive full ownership of the stock after a certain period of time. The vesting schedule is typically based on the length of employment, performance targets, or a combination of both. There are two main types of Common Stock Purchase Agreement with Vesting: 1. Time-Based Vesting: The employee earns the shares over a fixed period of time, such as three or five years. This vesting schedule is often used when the company wants to reward employees for a long period of service and loyalty. 2. Performance-Based Vesting: The employee earns the shares based on performance targets, such as reaching a certain number of sales or achieving a certain profit margin. This vesting schedule is often used when the company wants to reward employees for exceptional performance.