To download the complete form, subscribe now.

Restricted Stock Agreement


Abstract

When options are not suitable a founder or a senior executive can use a Restricted Stock Purchase Agreement. The agreement gives the founder or executive the ability to purchase and own all of the shares of a company. One reason for doing this is to begin a holding period for any capital gains tax implications and for compliance with Rule 144 for the Securities Act, which comes into play with resale of the shares.