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Share Vesting Agreement Template for Nigeria

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Key Requirements PROMPT example:

Share Vesting Agreement

"I need a Share Vesting Agreement for our Nigerian tech startup, covering 50,000 ordinary shares vesting over 4 years starting January 2025, with a one-year cliff period and monthly vesting thereafter, including accelerated vesting provisions in case of company sale."

Document background
The Share Vesting Agreement is a crucial document in Nigerian corporate practice, particularly utilized when companies want to incentivize key employees or contractors through equity ownership while ensuring their long-term commitment. This document type is governed by Nigerian law, specifically the Companies and Allied Matters Act 2020, Investment and Securities Act 2007, and relevant tax legislation. It's commonly used in startups, technology companies, and other sectors where equity-based compensation is prevalent. The agreement outlines specific vesting schedules, typically over 3-4 years, often with a one-year cliff period, and includes provisions for various scenarios such as employment termination, company sale, or IPO. The document requires careful consideration of corporate governance requirements, securities regulations, and tax implications under Nigerian law.
Suggested Sections

1. Parties: Identification of the company, the shareholder(s), and any other relevant parties to the agreement

2. Background: Context of the agreement, including the company structure and purpose of the vesting arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules used throughout the agreement

4. Grant of Shares: Details of the shares being subject to vesting, including number, class, and nominal value

5. Vesting Schedule: Specific timeline and conditions for the vesting of shares

6. Vesting Conditions: Performance metrics, time-based conditions, or other requirements for vesting

7. Rights and Restrictions During Vesting Period: Shareholder rights and limitations while shares are unvested

8. Treatment of Unvested Shares: Procedures for handling unvested shares upon termination or other trigger events

9. Company's Right to Repurchase: Terms under which the company can repurchase unvested or vested shares

10. Transfer Restrictions: Limitations on the transfer of vested and unvested shares

11. Taxation: Tax obligations and responsibilities related to the vesting arrangement

12. Confidentiality: Provisions regarding the confidential treatment of agreement terms and company information

13. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Accelerated Vesting: Terms for accelerated vesting in case of change of control or other specified events

2. Tag-Along Rights: Rights of the vesting shareholder to participate in sale of shares by other shareholders

3. Drag-Along Rights: Company's right to force the shareholder to participate in a sale of the company

4. Foreign Exchange Provisions: Special provisions for compliance with Nigerian forex regulations if international parties are involved

5. Board Matters: Provisions regarding board representation or observer rights

6. Non-Competition and Non-Solicitation: Restrictions on competitive activities and employee solicitation

7. Dispute Resolution: Alternative dispute resolution mechanisms such as arbitration or mediation

8. Share Valuation: Methodology for valuing shares for purposes of repurchase or transfer

Suggested Schedules

1. Schedule 1 - Share Details: Detailed information about the shares subject to vesting, including class rights and privileges

2. Schedule 2 - Vesting Schedule: Detailed timetable of vesting dates and corresponding percentages or numbers of shares

3. Schedule 3 - Performance Metrics: Detailed description of any performance-based vesting conditions

4. Schedule 4 - Form of Share Certificate: Template for share certificates to be issued for vested shares

5. Schedule 5 - Deed of Adherence: Form of deed to be signed by transferees of shares

6. Appendix A - Corporate Authorizations: Copies of board and shareholder resolutions approving the vesting arrangement

7. Appendix B - Share Valuation Methodology: Detailed procedures for share valuation when required

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

Startups

E-commerce

Telecommunications

Manufacturing

Healthcare

Energy

Real Estate

Mining

Agriculture

Education

Media and Entertainment

Relevant Teams

Legal

Human Resources

Finance

Executive Leadership

Corporate Secretariat

Compliance

Tax

Operations

Board of Directors

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Chief Technology Officer

Chief Legal Officer

General Counsel

HR Director

Company Secretary

Finance Director

Legal Counsel

HR Manager

Compensation and Benefits Manager

Corporate Attorney

Investment Manager

Board Member

Executive Director

Managing Director

Startup Founder

Co-founder

Senior Software Engineer

Chief Product Officer

Vice President of Sales

Head of Operations

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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