A share bonus agreement is a legal document outlining the terms and conditions for the distribution of shares to employees as a bonus. This agreement is designed to incentivize employees to work harder and improve the overall performance of the company.

The share bonus agreement typically outlines the eligibility criteria for receiving the bonus, the number of shares to be distributed, and the vesting terms. The eligibility criteria may include tenure, performance, and other factors deemed important by the company.

The number of shares to be distributed is usually determined by the company`s management and can vary from one employee to another. This amount is usually based on the employee`s position, experience, and contributions to the company.

The vesting terms dictate when the employee can exercise their right to the shares. Vesting can be time-based, performance-based, or a combination of both. Time-based vesting means that the employee must work for the company for a certain period of time before they can exercise their right to the shares. Performance-based vesting means that the employee must meet certain performance targets before they can exercise their right to the shares.

The share bonus agreement also outlines the restrictions on the shares, such as transfer restrictions, voting restrictions, and sale restrictions. These restrictions are put in place to prevent employees from selling their shares too quickly or transferring them to others.

Overall, a share bonus agreement is a valuable tool for companies looking to incentivize their employees and align their goals with the company`s performance. By offering shares as a bonus, companies can motivate their employees to work harder and contribute more to the company`s growth and success.