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The Employee Equity Agreement is a fundamental document used by New Zealand companies, particularly startups and growing businesses, to offer employees ownership stakes in the organization. This agreement is essential when companies wish to attract, retain, and motivate key talent by aligning employee interests with company success through equity participation. The document must comply with New Zealand's corporate and securities laws, including the Companies Act 1993 and Financial Markets Conduct Act 2013, while addressing crucial aspects such as vesting schedules, shareholder rights, tax implications, and transfer restrictions. It's particularly relevant in scenarios involving employee share schemes, stock option plans, or other equity-based incentive programs, and requires careful consideration of both corporate governance and employment law aspects.

1. Parties: Identifies the company (employer) and the employee participating in the equity scheme

2. Background: Explains the context of the agreement, including the company's equity incentive program and the employee's eligibility

3. Definitions: Defines key terms used throughout the agreement including types of shares, vesting periods, and other technical terms

4. Grant of Equity: Details the specific equity interest being granted, including number of shares or options and type of securities

5. Vesting Schedule: Specifies the vesting timeline and conditions under which the equity interest becomes fully owned by the employee

6. Purchase Price and Payment: States any payment required for the equity interest and payment terms

7. Tax Obligations: Outlines tax implications and responsibilities of both parties regarding the equity grant

8. Restrictions on Transfer: Details limitations on selling or transferring the equity interest

9. Termination Provisions: Explains what happens to the equity interest if employment ends under various circumstances

10. Shareholders' Rights: Describes voting rights, dividend rights, and other shareholder privileges

11. Confidentiality: Requires the employee to maintain confidentiality regarding the agreement and company information

12. General Provisions: Includes standard contract clauses such as governing law, amendments, and notices