A stock grant agreement is a contract between the company and the employees working there whereby the employee is compensated in the form of company stocks. It is a part of a stock plan offered by the company to get the employees directly interested in the company’s performance and benefit from the high price of the stocks. By agreeing to this document, employees are granted a certain number of shares at a particular price which they can sell later when the price of the shares increases in the market.
The stock grant agreement must mention the name and other details of the employee, the number of shares granted to him, the price at which they have been granted, the date of signing the agreement and so on. In some cases, the stocks grant agreement is a restricted one, meaning the employees have to wait for a specific period of time before using the stocks the way he wants.
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Sample Stock Grant Agreement
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