Equity Vests Clause Samples
The 'Equity Vests' clause defines the schedule and conditions under which an individual earns ownership rights to equity, such as shares or stock options, in a company. Typically, this clause outlines a vesting period—often several years—during which the recipient gradually acquires full ownership, sometimes with an initial 'cliff' period before any equity is vested. Its core practical function is to incentivize long-term commitment and performance by ensuring that equity is only fully granted if the individual remains with the company for a specified duration, thereby protecting the company from granting immediate ownership to short-term participants.
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Equity Vests. In addition, Executive shall be entitled to receive the portion of Executive’s restricted stock grants that are free from restrictions as of the date of termination and the acceleration and immediate release of all restrictions from any remaining shares of the restricted stock that are subject to restrictions as of the date of termination, and the vested portion of Executive’s stock options, and the acceleration and immediate vesting of any other unvested stock options. Executive shall have two (2) years from the date of such termination without Cause or for Good Reason to exercise all unvested stock options.
Equity Vests. In addition, all restrictions shall be removed from the restricted stock grant shares and the vesting and exercise of Executive’s stock options shall be governed by the applicable restricted stock and stock option plan of the Company.
Equity Vests. Notwithstanding anything in the agreements governing the grants of such equity awards to the contrary, all of Executive’s then outstanding and unvested equity awards shall immediately vest as of the Date of Termination. For purposes of the foregoing, in respect of any such awards that are subject to performance-based vesting, the amount of shares vested in respect of such award shall be the greater of (i) the number of shares that would be issuable based on actual performance through the Date of Termination, if determinable and (ii) the number of shares that would be issuable at target based upon achievement of target performance goals. Executive shall be entitled to exercise all unexercised stock options for a period equal to the lesser of (A) two years from the termination date and (B) the remaining terms of such stock options.
Equity Vests. In addition, Executive shall be entitled to the acceleration and immediate release of all restrictions from any remaining shares of the restricted stock that are subject to restrictions as of the date of termination, and Executive shall be entitled to exercise the vested portion of Executive’s stock options and the acceleration and immediate vesting of any other unvested stock options. Executive shall be entitled to exercise all unexercised stock options for a period equal to the lesser of (A) two (2) years from the date of such termination without Cause or for Good Reason, and (B) the remaining original terms of such stock option.