Not Fully Vested Clause Samples
The "Not Fully Vested" clause defines the status and implications for benefits, rights, or interests that have not yet been completely earned or secured by an individual, typically in the context of employment or equity compensation. In practice, this clause applies to situations such as stock options, retirement plans, or other deferred benefits, where the recipient must meet certain conditions—like continued employment over a set period—before gaining full ownership. Its core function is to incentivize long-term commitment and performance, while protecting the granting party from having to provide full benefits to individuals who leave or do not fulfill required obligations.
Not Fully Vested. If the former Spouse is allocated any unvested amounts, the Plan will establish a separate account for the former Spouse and she may direct the Plan as to how those amounts will be deemed to be invested, in the same manner as a Participant directs the Plan in Article IV. Unvested amounts are forfeited at the same time as the Participant’s unvested amounts are forfeited. If an amount allocated to the former Spouse subsequently become vested, the newly-vested amount will be paid to the former Spouse in a single payment on the first Payment Processing Date that is administratively practicable following the additional vesting. If the former Spouse dies before award is fully vested, she shall forfeit her remaining Account balance, and that exact amount shall be returned to the Participant’s subaccount containing Company Deferrals.