Restricted Stock Plan Agreement

RSA is generally issued by start-up companies when the common equity VMF is very low and wage requirements are difficult to meet. RSAs allow first employees to participate fully in the company`s growth. But the action is “limited” actions because you still have to earn them. The most common restrictions are time-based and include a standby schedule, which means you deserve them over time. This encourages employees to stay in the company. If the employee withdraws, the company can buy back the stock. Time or (5) the participant violated any essential provision of any secrecy, transfer of invention, non-competition or similar agreement between the participant and the company and, if cured, did not cured this violation after proper notification of the company; or (b) the conviction or registration of a candidate of guilt or Nolo by the participant, a crime with a moral turpitude or a crime. 11. Shareholder rights. Neither the employee nor persons who are entitled to a member or staff member have the rights or privileges of a shareholder of the company with respect to an action bonus, unless shares have been issued in accordance with paragraphs 3, 4 or 5, which have been recorded in the records of the company or its transfer agents or registrar and delivered to the employee. Except in paragraph 12, the worker, after such a broadcast, registration and delivery, has all the rights of a shareholder of the company with respect to the vote of these shares and the receipt of dividends and distributions on those shares. Limited stocks are very different from a stock option.

A stock option gives you the right to buy a certain number of shares at a fixed price, but you don`t own the shares until you buy them. With limited shares, you own the shares from the day of your issue. RSA`s shares are given to employees on the day they are granted. ASRs are generally issued to first employees prior to the first round of equity financing, when the common equity VMF is very low. The RSAs give the individual the right to acquire shares from FMV free of charge at a discount or at the time of the granting of the aid. 6. The termination of service. Notwithstanding a contrary provision of this agreement, the balance of stock premiums that have not been granted under paragraphs 3, 4 or 5 expires and is automatically terminated at the time of termination of Employee153s` service. For the purposes of this agreement, termination of service has the meaning defined in the plan and is determined by reference to Employee153`s active service, without reference to other written or oral agreements, including employee153`s employment contract (if any).