[Consultation] Drafting of Stock Purchase Agreement and Vesting Shareholders Agreement

Law firm Veat assisted A, an online esports platform company, in drafting stock purchase agreements and shareholder agreements.

A, which operates an online esports platform, commissioned Law firm Veat to draft a stock purchase agreement from a former executive and a shareholder agreement setting vesting period with the current executive.

Accordingly, Law firm Veat drafted a stock purchase agreement from a former executive purchasing shares at par value and a shareholder agreement setting a 3-year vesting period with the current executive. In addition, it also drafted other standard clauses commonly included in shareholder agreements, such as a right of first refusal and a tag-along right.

According to the Companies Act, the period for exercising stock purchase rights must be at least 2 years since the shareholders’ resolution. While employees can be granted all stock purchase options (stock options) after exceeding this statutory period, companies can set vesting conditions with various terms to match their specific circumstances and grant stock options (stock options).

Can we receive stock options with a ‘4-year employment condition’?

When granting stock options, if vesting is set, it is possible to prevent the employee from exercising stock options (stock options) immediately after the 2-year period expires, and through various vesting conditions, it is possible to align company and employee goals and motivate long-term employment.

Law firm Veat provides legal advice and consulting attorney services as a legal advisor for various startups and companies, addressing overall legal issues that arise during company operations. If you wish to have vesting schedules, vesting periods, vesting cycles, vesting ratios, and quantity-defined stock option (stock option) contracts, and shareholder agreements drafted, please contact Law firm Veat with ease.

Thank you. Law firm Veat.