Share Incentive Plan (SIP) Participation Agreement template
Use this Share Incentive Plan (SIP) Participation Agreement for employees joining a SIP, outlining the terms of their participation, including share purchase options and vesting criteria.
5 mins
Get a value bundle that includes our Share Incentive Plan (SIP) Participation Agreement template
What is a Share Incentive Plan (SIP) Participation Agreement?
The purpose of this Share Incentive Plan (SIP) Participation Agreement template is to provide you with a flexible and customisable document to serve as a robust and effective starting point for you.
By using our Share Incentive Plan (SIP) Participation Agreement template, you can streamline your process, maintain consistency and accuracy, and save time, and it can be easily adapted to fit your specific scenario.
As and when required
The Employer (you) to the Employee
Great Britain & NI (United Kingdom), Worldwide
Share Incentive Plan (SIP) Participation Agreement
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: ______________
Why buy our Share Incentive Plan (SIP) Participation Agreement template?
- It's easily editable and implementable, saving you time and money
- It's designed by CIPD accedited Chartered HR practitioners with operational experience in this area
- You will maintain compliance with ACAS guidelines, legislation, and industry best practices
- Email notifications for any updates made to this template or its accompanying materials
- 12 months of unrestricted access without any additional costs (any update in that period is free to you)
- A 25% discount on all library, toolkit, and template purchases/renewals