Restricted Stock Between Forfeiture

State:
Multi-State
Control #:
US-CC-19-221
Format:
Word; 
Rich Text
Instant download

Description

The Restricted Stock Purchase Agreement outlines the terms under which the Purchaser can buy shares from Intermark, Inc. The key feature of this agreement is the conditional forfeiture of stock, which specifies that should the Purchaser cease employment or default on payments, unvested shares would be repurchased by the Corporation. Notably, shares vest over a four-year period, with a quarter becoming vested each year. The form requires careful filling out of payment details via promissory notes and includes clauses regarding escrow and stock legends, affirming the restricted nature of the stock under federal law. Attorneys and legal professionals should ensure that users understand their responsibilities and potential tax implications related to the stock's value at the time of purchase. This form is particularly useful for partners and owners in private companies looking to incentivize employees while maintaining control over stock issuance. Legal assistants and paralegals should guide users in accurately completing the required sections and interpreting the implications of forfeiture provisions.
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  • Preview Sample Restricted Stock Purchase Agreement between Intermark, Inc. and Purchasers
  • Preview Sample Restricted Stock Purchase Agreement between Intermark, Inc. and Purchasers
  • Preview Sample Restricted Stock Purchase Agreement between Intermark, Inc. and Purchasers
  • Preview Sample Restricted Stock Purchase Agreement between Intermark, Inc. and Purchasers
  • Preview Sample Restricted Stock Purchase Agreement between Intermark, Inc. and Purchasers
  • Preview Sample Restricted Stock Purchase Agreement between Intermark, Inc. and Purchasers
  • Preview Sample Restricted Stock Purchase Agreement between Intermark, Inc. and Purchasers

How to fill out Sample Restricted Stock Purchase Agreement Between Intermark, Inc. And Purchasers?

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FAQ

Income in the form of RSUs will typically be listed on the taxpayer's W-2 in the ?Other? category (Box 14). Taxpayers will simply translate the figure listed in Box 14 to their federal tax return and, if applicable, state tax return(s).

With restricted stock and RSUs, you almost always forfeit whatever stock has not vested at the time of your termination, unless your grant specifies another treatment or the company decides to continue or accelerate vesting.

Restricted stock is, by definition, a stock that has been granted to an executive that is nontransferable and subject to forfeiture under certain conditions, such as termination of employment or failure to meet either corporate or personal performance benchmarks.

Accounting for Restricted Stock/RSU Grants In general, future compensation expense related to restricted stock grants is based on the fair value of the stock on the grant date. The compensation expense is then recognized over the employees' service/vesting period.

Restricted stock awards are typically taxed using their value on the vest date, but you can opt to use the value on the grant date instead. Here's what to consider before you perform a so-called Section 83(b) election.

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Restricted Stock Between Forfeiture