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Equity Grant Agreement Template for Singapore

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Key Requirements PROMPT example:

Equity Grant Agreement

"I need an Equity Grant Agreement under Singapore law for a Series B startup, granting 10,000 stock options to our new Chief Technology Officer with a 4-year vesting schedule starting March 1, 2025, including standard non-compete and confidentiality provisions."

Document background
The Equity Grant Agreement serves as a critical document in Singapore's corporate landscape, used when companies wish to provide employees with ownership interests as part of their compensation package. This agreement type is particularly important for startups and growing companies seeking to attract and retain talent while conserving cash. The document details the specific terms of equity compensation, including the number of shares or options granted, vesting schedule, exercise price (if applicable), and conditions that must be met to retain the grant. It ensures compliance with Singapore's regulatory framework while protecting both the company's and grantee's interests.
Suggested Sections

1. Parties: Identifies the company and the grant recipient

2. Background: Context of the grant and reference to any equity incentive plan

3. Definitions: Key terms used throughout the agreement

4. Grant Details: Number of shares/options granted, grant date, and vesting schedule

5. Vesting Conditions: Requirements and timeline for vesting of equity

6. Exercise Provisions: Terms and conditions for exercising options/rights

7. Termination Provisions: Consequences of employment termination on equity grants

8. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Lock-up Period: Restrictions on sale of shares after vesting, typically used for listed companies or pre-IPO situations

2. Clawback Provisions: Company's right to reclaim shares in specific circumstances, typically used for senior executives or regulated industries

3. Tax Indemnity: Grantee's obligations regarding tax liabilities, used when tax implications are significant

4. Non-Competition: Restrictions on competing activities, typically used for senior employees or key personnel

Suggested Schedules

1. Vesting Schedule: Detailed timeline of vesting dates and quantities

2. Share Option Plan Rules: Complete rules of the underlying equity plan

3. Exercise Notice: Form for exercising options

4. Tax Summary: Overview of tax implications and obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

































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Industries

Companies Act (Cap. 50): Primary legislation governing corporate structures, share issuance, share transfers and allotments, directors' duties, corporate governance, and share capital maintenance rules in Singapore

Securities and Futures Act (Cap. 289): Regulates securities offerings, disclosure requirements, prospectus requirements and exemptions, and provides definitions of securities and related instruments

Income Tax Act: Governs tax implications of equity grants, employee share option schemes (ESOS), and tax treatment of share-based compensation

Employment Act: Covers employment relationship considerations, rights and obligations of employers and employees, and employee benefits and compensation

MAS Guidelines and Regulations: Monetary Authority of Singapore requirements regarding securities offering regulations and corporate governance requirements

SGX Listing Rules: For listed companies: share issuance requirements, disclosure obligations, and corporate governance requirements

Personal Data Protection Act 2012: Legislation governing protection of personal data, consent requirements, and data collection and usage policies

Company Constitution: Internal governing document of the company that sets out the rules for company administration and share issuance

Shareholders' Agreement: Existing agreements between shareholders that may affect or restrict equity grants and share transfers

Employee Share Option Plans: Existing equity compensation schemes that may impact or interact with new equity grants

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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