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Equity Grant Agreement Template for Switzerland

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Key Requirements PROMPT example:

Equity Grant Agreement

"I need a Swiss-law Equity Grant Agreement for our private software company to grant shares to 5 senior developers, with a 4-year vesting period starting March 2025 and standard good/bad leaver provisions."

Document background
The Equity Grant Agreement is a crucial document used by Swiss companies to formalize the issuance of equity-based compensation to employees, executives, consultants, or board members. This agreement is particularly important in the context of Swiss corporate governance, where specific legal requirements must be met for valid equity transfers and option grants. The document typically comes into play during hiring, retention, or incentive programs, providing detailed terms about the equity grant, including the number of shares or options, vesting schedule, exercise prices, and conditions for maintaining the grant. It must comply with Swiss corporate law, particularly the Code of Obligations, and address specific Swiss tax implications and reporting requirements. The agreement is essential for both private and public companies in Switzerland looking to align stakeholder interests through equity participation.
Suggested Sections

1. Parties: Identification of the company granting the equity and the recipient

2. Background: Context of the grant, relationship between parties, and corporate authority for the grant

3. Definitions: Key terms used throughout the agreement including 'Shares', 'Vesting Date', 'Grant Date', etc.

4. Grant of Equity: Details of the equity being granted, including number of shares/options and grant date

5. Vesting Provisions: Vesting schedule, conditions, and requirements for the equity to vest

6. Exercise Price and Payment: If applicable, the price and payment terms for exercising options

7. Rights and Restrictions: Voting rights, dividend rights, and any transfer restrictions

8. Termination Provisions: Impact of termination of employment/relationship on unvested and vested equity

9. Tax Obligations: Tax responsibilities of both parties and handling of withholding requirements

10. Compliance with Laws: Obligations to comply with relevant Swiss securities and corporate laws

11. Governing Law and Jurisdiction: Specification of Swiss law governance and jurisdiction for disputes

12. Miscellaneous: Standard provisions including amendments, notices, and entire agreement clause

Optional Sections

1. Change of Control Provisions: Accelerated vesting or special provisions in case of company sale or merger

2. Lock-up Period: For listed companies, restrictions on sale of shares after vesting

3. Shareholder Rights: For private companies, reference to shareholders' agreement and tag-along/drag-along rights

4. Malus and Clawback: For executive grants, provisions for recouping equity in case of misconduct

5. Non-Competition and Non-Solicitation: For key employees/executives, restrictions post-termination

6. International Provisions: For recipients in multiple countries, specific provisions for cross-border compliance

Suggested Schedules

1. Schedule 1 - Grant Notice: Specific details of the grant including number of shares/options, grant date, and vesting schedule

2. Schedule 2 - Vesting Schedule: Detailed breakdown of vesting dates and conditions

3. Schedule 3 - Share Certificate: Form of share certificate or option certificate to be issued

4. Schedule 4 - Tax Summary: Overview of tax implications and filing requirements

5. Schedule 5 - Board Resolution: Copy of board resolution approving the equity grant

6. Appendix A - Acceptance Form: Form for recipient to formally accept the grant and its terms

7. Appendix B - Exercise Notice: Form for exercising options, if applicable

Authors

Alex Denne

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

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Relevant Industries

Technology

Financial Services

Professional Services

Manufacturing

Pharmaceuticals

Biotechnology

Consumer Goods

Industrial

Healthcare

Software

Consulting

Real Estate

Energy

Telecommunications

Relevant Teams

Legal

Human Resources

Executive Management

Finance

Corporate Governance

Compensation

Board Secretariat

Tax

Compliance

Corporate Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Chief Operating Officer

Board Member

Executive Director

Senior Manager

Department Head

Key Employee

Technical Lead

Senior Developer

Principal Scientist

Research Director

Sales Director

Regional Manager

Senior Consultant

Investment Manager

Product Manager

Legal Counsel

Human Resources Director

Industries








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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