Compensatory Equity Clause Samples
The Compensatory Equity clause establishes the right of certain individuals, typically employees or service providers, to receive equity compensation as part of their overall remuneration. This clause outlines the terms under which equity, such as stock options or restricted shares, is granted, including vesting schedules, eligibility criteria, and the process for exercising rights. By clearly defining how and when equity is awarded, the clause ensures that recipients are fairly compensated for their contributions and aligns their interests with the long-term success of the company, thereby addressing issues of motivation and retention.
Compensatory Equity. On February 4, 2014, the Company granted you Restricted Stock Units (“RSU”) covering 600,000 shares of the Company’s common stock (the “RSU Grant”). 200,000 shares of the RSU Grant became vested six (6) months after grant. Subject to your continued Service, the remaining 400,000 shares have partially vested, and shall continue to vest, in eight pro-rata equal installments on a quarterly basis over the following two years with the first such installment occurring on November 6, 2014. The vested portion of the RSU Grants shall be settled with a like number of Company common shares on the earlier of (i) your Termination Date, (ii) a Change in Control of the Company (as defined below), or (iii) the seventh anniversary of the Start Date or (iv) your election to receive 25% of the vested RSU’s on your two year anniversary, 25% of the vested RSU’s on your three year anniversary, 25% of the vested RSU’s on your four year anniversary, remaining RSU’s on your fifth year anniversary. The Company warrants and represents that it has filed with the Securities and Exchange Commission an effective registration statement covering the RSU Grant and its underlying shares. For purposes of this Agreement, the RSU Grant and any other Company compensatory equity grants issued to you shall be collectively referred to herein as “Compensatory Equity”. To the extent you receive any stock options, stock appreciation rights or similar derivative securities, you shall be entitled to exercise the vested portion of such awards according to the applicable plan in place In connection with any award of Compensatory Equity (including the RSU Grant), you shall be permitted at your election to satisfy the applicable exercise price and/or tax withholding obligations via share withholding with the shares that are surrendered to the Company valued at their then fair market value as of the applicable vesting or settlement date(s). You shall be eligible for additional grants of Compensatory Equity in order to ensure that you have competitive equity compensation. All grants of Compensatory Equity shall be issued pursuant to: (i) a Board-approved employee stock incentive plan (the “Plan”) and (ii) an effective registration statement filed (and maintained) by the Company with the Securities and Exchange Commission in accordance with the Securities Act of 1933, as amended. Additionally, all outstanding unvested Compensatory Equity awards shall fully vest and become exercisable (to the extent exercise i...
Compensatory Equity. Executive will be eligible to be awarded options to acquire common stock or other equity compensation awards under the Company's or its affiliates' stock incentive plan (once such plan is adopted and approved by the Board and Company stockholders). Executive's equity awards level will be determined by the administrator of the stock incentive plan.
Compensatory Equity. Executive will be awarded options (the “Options) to acquire shares of common stock of the Company (the “Shares”) equal to one percent (1%) of the Shares issued by the Company on August 20, 2010. Executive shall have the right to exercise fifty percent (50%) of the Options after March 17, 2011 at the price of $9.85 per share ( “Entitled Price I”) but not less than 100% of the fair market value on the date of award as defined under the Company’s 2010 Stock Incentive Plan (the “Fair Market Value”) and to exercise the remaining fifty percent (50%) of the Options after March 17, 2012 at a price equal to the closing price of the Shares on the first trading day after March 17, 2012 multiplied by 1.25 (“Entitled Price II”, together with Entitled Price I, each an “Entitled Price”) but not less than 100% of the Fair Market Value. In the event that an Entitled Price is lower than the Fair Market Value, Executive shall pay an exercise price equal to the Fair Market Value and the Company shall compensate Executive for the difference between such Entitled Price and the Fair Market Value in the form as reasonably requested by Executive. In the event of a subdivision of the outstanding Shares, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, a stock split, a reverse stock split, a reclassification or other distribution of the Shares without the receipt of consideration by the Company, of or on the common stock of the Company, a recapitalization, a combination, a spin-off or a similar occurrence, during the period from August 20, 2010 to the date of award of the Options, the Company shall make equitable and proportionate adjustments to the number of Shares available and the exercise price under any outstanding Options.
Compensatory Equity. Hoeffner will be eligible to be awarded options to acquire common stock or other equity compensation awards under Axesstel’s 2004 Equity Incentive Plan or other equity incentive plans subsequently adopted by Axesstel or its affiliates. The timing and amount of any equity awards will be determined by the administrator of the equity incentive plan.
Compensatory Equity. ▇▇▇▇ will be eligible to be awarded options to acquire common stock or other equity compensation awards under Axesstel’s 2004 Equity Incentive Plan or other equity incentive plans subsequently adopted by Axesstel or its affiliates. The timing and amount of any equity awards will be determined by the administrator of the equity incentive plan.
Compensatory Equity. Hickock will be eligible to be awarded options to acquire common stock or other equity compensation awards under Axesstel’s 2004 Equity Incentive Plan or other equity incentive plans subsequently adopted by Axesstel or its affiliates. The timing and amount of any equity awards will be determined by the administrator of the equity incentive plan.
Compensatory Equity. Sek will be eligible to be awarded options to acquire common stock or other equity compensation awards under Axesstel’s 2004 Equity Incentive Plan or other equity incentive plans subsequently adopted by Axesstel or its affiliates. The timing and amount of any equity awards will be determined by the administrator of the equity incentive plan.
Compensatory Equity. Vendor will be awarded options (the “Options) to acquire shares of common stock of the Company (the “Shares”) in the amount of 200,000 Shares subject to the terms and conditions of the Company’s 2011 ESOP.
Compensatory Equity. Sek will be eligible to be awarded options to acquire common stock or other equity compensation awards under Axesstel’s 2004 Equity Incentive Plan or other equity incentive plans subsequently adopted by Axesstel or its affiliates. The timing and amount of any equity awards will be determined by the administrator of the equity incentive plan.