Equity Retainer Sample Clauses
An Equity Retainer clause establishes that a service provider will receive compensation in the form of equity, such as shares or stock options, instead of or in addition to cash payments. This clause typically outlines the type and amount of equity to be granted, the vesting schedule, and any conditions that must be met for the equity to be issued, such as completion of certain milestones or continued service. Its core practical function is to align the interests of the service provider with those of the company, incentivizing long-term commitment and performance while conserving cash resources.
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Equity Retainer a) Each director shall be entitled to an Equity Retainer equal to $135,000.
b) The Lead Director shall be entitled to an additional Equity Retainer equal to $62,500.
c) The number of shares granted shall be calculated pursuant to the terms of the Plan and shall be rounded down to the nearest share.
d) RSUs will vest and be payable on the first anniversary of the grant date, but will be payable in full on the earlier of (i) the date the director ceases to be a Director of the Company and (ii) a Change in Control (as defined in the Plan).
e) Dividend equivalents on the RSUs issued hereunder are deferred, credited with interest quarterly at the same rate as five-year U.S. government bonds and paid out in cash at the same time the corresponding portion of the award becomes payable.
f) The Company shall make payment of the RSUs in Company common stock.
g) Each director may, subject to any conditions deemed appropriate from time to time by the Human Resources Committee, defer the delivery of the Equity Retainer until the termination of such director’s service on the Board in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (including the applicable regulations thereunder) using such deferral election form as approved by the Human Resources Committee from time to time.
Equity Retainer. Upon IFTI's execution of this Agreement, HMS will consummate the award to IFTI of additional non-qualified options on 150,000 shares of HMS common stock at an exercise price equal to $5.88 per share. One-sixth of these options shall vest immediately and annually thereafter on May 1st each year commencing May 1, 1998 and ending May 1, 2002, provided that IFTI shall be actively providing services to HMS at the time of such scheduled vesting. The 150,000 non-qualified options are in addition to the 115,500 non-qualified options previously awarded to IFTI in accordance with the terms of the 1993 and 1994
Equity Retainer. The Company shall pay the Chairman $225,000 in an annual equity award in the form of RSUs, payable on the same basis as other directors. Except as otherwise set forth herein, the Prior Agreement will remain unmodified and in full force and effect. Exhibit 10.3