Share Vesting Agreement

A Share Vesting Agreement is a document that enables a company to implement vesting conditions on certain shareholders’ shares.

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Last updated February 3, 2025

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Suitable for Australia

Share Vesting Agreement

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What is a share vesting agreement?

A share vesting agreement is a legal document that sets out conditions under which a shareholder’s shares become fully owned, or 'vested,' over time or upon meeting specific criteria.
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When should you use a share vesting agreement?

Use a share vesting agreement when your company has already issued shares and you want to add vesting conditions to encourage loyalty and long-term commitment from shareholders or key team members.
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What should be in a share vesting agreement?

A share vesting agreement should include details of the shares, vesting criteria, vesting schedule, buy-back options, confidentiality clauses, and definitions relevant to the arrangement.
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Frequently asked questions

Who typically benefits from using this agreement?

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What protections does this agreement provide to the company?

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What are the main risks for shareholders?

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Does this agreement apply if shares have not yet been issued?

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What happens to vested shares if the shareholder leaves the company?

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Are there tax implications with this agreement?

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What are the next steps after signing this agreement?

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View Sample Share Vesting Agreement

Share Vesting Agreement
risk level indicator at Medium level

The Legal Risk Score of a Share Vesting Agreement Template is Medium

Our legal team have marked this document as medium risk considering:

  • The agreement allows the company to buy back shares from the shareholder under certain conditions, which could potentially limit the shareholder's financial benefits if they fail to meet specific criteria or breach the agreement.
  • The confidentiality clause strictly prohibits the shareholder from disclosing any confidential information, which could restrict their ability to use such information for personal or business purposes without explicit consent, potentially affecting their other business interests.
  • The vesting process may be long and must be carefully managed.

Meet Our Users

Articles about Share Vesting Agreement

What is Share Vesting?
By Taeisha Dou|Feb 21, 2024

What is Share Vesting?

There are many types of shares and ways to invest. Read this article to find out more about share vesting, and how you can use it for your business.

How Do Unvested Shares Work?
By Beulah Pene|May 22, 2024

How Do Unvested Shares Work?

Knowing how unvested shares work is important if you are issuing shares as an employer or company founder. Find out how they work here.

Quick Tips: Legal Documents For Business Founders
By Dominic Woolrych|Mar 19, 2015

Quick Tips: Legal Documents For Business Founders

Learn about the legal documents, including Shareholder's Agreement and Vesting Agreement, that you may need when starting a business.

Investing In Vesting (2025 Update)
By Dominic Woolrych|Jan 6, 2025

Investing In Vesting (2025 Update)

Vesting allows you to give shares to employees which accrue over time. Find out why you should invest in vesting in this guide.

What Are Vested Shares?
By Vincent Appleton|May 26, 2019

What Are Vested Shares?

Do you have vested shares or ever wondered what they are? Important to learn the difference between vested and ordinary shares. Read on to find out more.

5 Things to Know About Share Subscription Agreements
By Justin Pasqualino|Nov 28, 2025

5 Things to Know About Share Subscription Agreements

Expanding your business? Here's a quick guide to Share Subscription Agreements.

Why your business needs a Shareholders Agreement
By Dominic Woolrych|May 25, 2015

Why your business needs a Shareholders Agreement

Learn about a shareholders agreement, what it includes and how it can be beneficial for your business.

What Are Share Sale Agreements?
By Raja Abbas|Jan 11, 2024

What Are Share Sale Agreements?

What Are Share Sale Agreements? This article explores everything you need to know about share sale agreements, including how to draft, negotiate and perfect share sale agreements.

What Is A Share Sale Agreement?
By Raja Abbas|Feb 7, 2024

What Is A Share Sale Agreement?

What Are Share Sale Agreements? This article explores everything you need to know about share sale agreements, including how to draft, negotiate and perfect share sale agreements.

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