Sample Restricted Stock For Advisors

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

Description

The Sample Restricted Stock for Advisors is a legal document outlining the terms under which a purchaser can buy shares of a corporation's stock, specifically designed for advisors in a business context. Key features of this agreement include the purchase and sale of stock at a predetermined price, payment through promissory notes, and the establishment of an escrow to secure the stock until certain conditions are met. It details the vesting schedule for the stock, specifying that it vests over a four-year period, and highlights the potential risks associated with purchasing unregistered securities. The form also contains stipulations regarding stock splits, legends required on stock certificates, and the corporation's commitments regarding registration under the Securities Act of 1933. For attorneys, partners, and others involved in corporate law, this agreement is essential for structuring financing options and protecting both the corporation's and the purchaser's interests. Paralegals and legal assistants can utilize this form as a template for compliance with securities laws while ensuring all necessary legal protections are included.
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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

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FAQ

Vesting Schedules Example: You are granted 5,000 RSUs. Your graded vesting schedule spans four years, and 25% of the grant vests each year. At the first anniversary of your grant date and on the same date over the subsequent three years, 1,250 shares vest.

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.

Here's an example. Say you've been granted 1,500 RSUs and the vesting schedule is 20% after one year of service, and then equal quarterly installments thereafter for the next three years. This would mean that after staying with your company for a year, 300 shares would vest and become yours.

Taxation of RSUs The amount reported will equal the fair market value of the stock on the date of vesting, which is also the date of delivery in this case. Therefore, the value of the stock is reported as ordinary income in the year the stock becomes vested.

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Sample Restricted Stock For Advisors