Share Incentive Plan (SIP) Participation Agreement template

Share Incentive Plan (SIP) Participation Agreement

Between:

[Your Company Name] (hereinafter referred to as the "Company")

And:

[Employee's Full Name] (hereinafter referred to as the "Employee")

Date of Agreement: [Date]

1. SIP Participation Details

• Participation Date: [Date]
• Employee ID/Number: [Employee ID/Number]
• Department/Division: [Department/Division]

2. SIP Scheme Details

• SIP Scheme Offering Date: [Date]
• SIP Scheme Offering Price per Share: [Price]
• SIP Scheme Duration (e.g., 3 or 5 years): [Duration]
• Percentage of Salary Contributed to SIP: [Percentage]

3. Payment for Shares

• The Employee agrees to pay the SIP contributions from their salary as per the agreed percentage.

4. Ownership and Vesting

• Shares acquired through the SIP will be held in trust until vesting conditions are met.

5. Vesting Conditions

• [Specify conditions, e.g., continued employment, performance goals]

6. Withdrawal from SIP

• The Employee may withdraw from the SIP at any time, subject to the terms and conditions of the scheme.

7. Tax Implications

• Consult your tax advisor for information on tax implications related to the SIP.

8. Governing Law

• This Agreement shall be governed by and construed in accordance with the laws of [Specify Jurisdiction].

9. Entire Agreement

• This Agreement contains the entire understanding between the Company and the Employee concerning the SIP.

10. Acceptance

• The Employee acknowledges receipt of a copy of this Agreement and agrees to be bound by its terms and conditions.

Employee's Signature: _________________________ Date: ______________

Company Representative's Signature: _________________________ Date: ______________