Acceleration Upon Qualifying Termination Clause Samples
The "Acceleration Upon Qualifying Termination" clause provides that certain unvested benefits, such as stock options or restricted stock units, will immediately vest if the employee's employment ends due to specific qualifying events, like termination without cause or resignation for good reason. In practice, this means that if an employee is let go under these defined circumstances, they gain access to equity or benefits that would otherwise have vested over a longer period. This clause primarily serves to protect employees from losing valuable compensation in the event of an involuntary or justified departure, ensuring fairness and incentivizing retention.
Acceleration Upon Qualifying Termination. If Optionee's employment with the Company is terminated as a result of a Qualifying Termination, this Option shall, upon the effectiveness of the Release executed by Optionee, automatically vest and become exercisable for that portion of this Option that would have vested if Optionee had remained in the employment of the Company through and including the first anniversary of the date of such termination of employment.
Acceleration Upon Qualifying Termination. If the Participant’s employment with the Partnership and its Subsidiaries is terminated by the Partnership or a Subsidiary without Cause or by the Participant for Good Reason (each, a “Qualifying Termination”), a portion of any then-unvested Time Vesting Units shall accelerate and vest in an amount equal to whichever of the following results in a greater number of vested Time Vesting Units (A) the portion of the Time-Vesting Units that would have become Vested Units under the terms of Section 2.3(a)(i) hereof on the next four (4) quarterly anniversaries of the Grant Date had the Participant’s employment not terminated and (B) the portion of the Time Vesting Units that results in fifty percent (50%) of the aggregate Time Vesting Units being Vested Units.
Acceleration Upon Qualifying Termination. Notwithstanding anything in Section 2(a) or Section 2(b) to the contrary, if the Service Provider’s employment with the Company or one of its Subsidiaries is terminated as a result of a Qualifying Termination (as defined in the Service Provider’s Incentive Unit Grant Agreement) or as a result of the Service Provider’s death or Disability (as defined in the Service Provider’s employment agreement with the Company), then (i) one hundred percent (100%) of the Participants’ Shares of Restricted Stock that are eligible to time-vest pursuant to Section 2(a) shall vest as of the date of termination and (ii) one hundred percent (100%) of the Participants’ Performance Vesting Shares shall remain outstanding and eligible to vest in accordance with the terms of this Agreement (but disregarding any requirement regarding the Service Provider’s continued employment with the Company or one of its Subsidiaries).