Initial Equity Incentive Awards Clause Samples

Initial Equity Incentive Awards. (1) In addition to your Salary and Bonus, on your Start Date you will be awarded (A) stock options to purchase 720,000 shares of the Company’s common stock (your “Sign-On Stock Options”) and (B) 214,250 restricted shares of the Company’s common stock (your “Sign-On Stock”). (2) Your Sign-On Options will have the terms and conditions set forth in an award agreement between the Company and you that is substantially in the form attached as Exhibit 1. Your Sign-On Stock Options will have an exercise price equal to the closing price of the Company’s common stock on your Start Date. Subject to the terms of the award agreement, one-half of your Sign-On Options (i.e., options on 360,000 shares) will vest and first become exercisable in equal one-third installments on the first, second and third anniversaries, respectively, of your Start Date and the balance of your Sign-On Options (i.e., the remaining options on 360,000 shares) will vest and first become exercisable in equal one-third installments on the second, third and fourth anniversaries, respectively, of your Start Date.