Subsequent Grant Clause Samples
The "Subsequent Grant" clause defines the conditions under which rights or licenses granted in an agreement may be extended, transferred, or re-granted to additional parties after the initial grant. Typically, this clause outlines whether the original recipient of rights can sublicense, assign, or otherwise convey those rights to others, and may specify any limitations or approvals required for such actions. By clearly establishing the rules for further granting of rights, the clause helps prevent unauthorized transfers and ensures all parties understand the scope and control of the rights involved.
Subsequent Grant. In the event that Executive elects to cancel his Existing Option as provided in Section 2(c)(ii)(A) above and subject to Executive's continuous employment with the Company, as soon as reasonably practicable following January 1, 2003, the Company shall cause the Board or a committee thereof to grant Executive non-qualified options (the "Subsequent Options") to purchase at least 40,000 shares of common stock of the Company (the "Subsequent Option Shares"). The Subsequent Options granted on or about January 1, 2003 shall have an exercise price per share equal to the "fair market value" (as such term is defined in the 1995 Plan) per share at the date of grant. The Subsequent Options with respect to fifty percent (50%) of such Subsequent Option Shares shall be referred to herein as the "Subsequent Service Option" and the Subsequent Options with respect to the remaining Subsequent Option Shares shall be referred to herein as the "Subsequent Performance Option." The terms and conditions of the Subsequent Options shall be evidenced by a stock option agreement (the "Subsequent Stock Option Agreement" and together with the Initial Stock Option Agreement and the Existing Stock Option Agreement, collectively referred to herein as the "Stock Option Agreements"). The Subsequent Stock Option Agreement shall contain terms consistent with this Section 2(c)(ii)(B) and other customary terms, including the following:
(1) the Subsequent Service Option shall become exercisable in four equal annual installments on each of the first, second, third and fourth anniversaries of the grant date, provided that Executive remains continuously employed by the Company through each such date;
(2) the Subsequent Performance Option shall vest on the seventh anniversary of the grant date if Executive is actively employed with the Company on such anniversary; provided, however, that the vesting of the Subsequent Performance Option, or any portion thereof, may be accelerated based upon the achievement of financial and operating objectives established by the Company prior to February 28, 2003, provided Executive is actively employed with the Company on the date of such acceleration;
(3) the Subsequent Options shall expire on the tenth anniversary of the date of grant, provided that such Subsequent Options shall be subject to earlier expiration upon termination of employment in accordance with the Subsequent Stock Option Agreement; and
(4) upon Executive's termination of employment other than a te...
Subsequent Grant. If this Agreement or Executive's employment by Rural/Metro is renewed at the expiration of the Initial Term (as that term is defined in paragraph 5), Rural/Metro will promptly grant Executive options to purchase an additional One Hundred Thousand (100,000) shares of Rural/Metro stock at the closing price of Rural/Metro stock on the date of grant with the terms and conditions of the options to be set forth in a separate Stock Option Agreement. The Stock Option Agreement shall provide that the options shall be fully vested and exercisable at the time of grant and the options will remain exercisable during the period of Executive's employment with Rural/Metro and for at least 36 months following the termination of Executive's employment with Rural/Metro. In any event, notwithstanding the preceding sentence, the options will lapse and no longer be exercisable on or after the tenth (10th) anniversary of the date of grant.
Subsequent Grant. On January 2, 2007, the Company granted to Executive, under the Equity Plan, a nonqualified Stock Option to purchase 188,000 shares of the Company’s common stock (the “Subsequent Stock Option”). The Subsequent Stock Option was granted to Executive at an exercise price per share equal to the Fair Market Value and vests and becomes exercisable, subject to Executive’s continued employment with the Company through each such vesting date, as follows: 11% immediately and 1.83% on the last day of each month in 2007 (such that 33% vested as of December 31, 2007), 2.83% on the last day of each month in 2008 (such that 67% would be vested as of December 31, 2008), 1.83% on the last day of each month in 2009 (such that 89% would be vested as of December 31, 2009) and 0.92% on the last day of each month in 2010 (such that 100% would be vested as of December 31, 2010). The terms and conditions of the Subsequent Stock Option, including the applicable vesting conditions, have been set forth in a stock option agreement entered into by the Company and Executive which evidences the grant of the Subsequent Stock Option and, except as otherwise expressly provided herein, is consistent with the terms and conditions contained in Stock Option Agreements provided to other key executives of the Company. The Subsequent Stock Option is, subject to the provisions of this Section 1(b)(v)(A)(2), Sections 1(b)(v)(F) and (G) and 1(c)(iii)(A) below, governed in all respects by the terms of the Equity Plan and the applicable Stock Option Agreement.
Subsequent Grant. Provided that your employment with the Company has not terminated (except as provided below), the REIT shall, upon the earlier to occur of (i) the date on which the REIT makes its annual grants to similarly situated executives under the Incentive Plan for the year following the year in which the Effective Date occurs, or (ii) the first anniversary of the Effective Date, grant you a number of shares of the REIT's common stock (the "Subsequent Restricted Stock") equal to the quotient obtained by dividing (x) $2,000,000 by (y) the fair market value (as determined under the Incentive Plan) of a share of the REIT's common stock on the date of grant. The Subsequent Restricted Stock will be granted to you at a purchase price of $0.01 per share. The Subsequent Restricted Stock will vest as follows: twenty percent (20%) of the shares of the Subsequent Restricted Stock will vest on the date on which the Subsequent Restricted Stock is granted to you (the "First Vesting Date"), and, subject to your continued employment with the Company (except as provided below), twenty percent (20%) of the shares of the Subsequent Restricted Stock will vest on each of the first, second, third and fourth anniversaries of the First Vesting Date (each a "Subsequent Vesting Date," and together with the "First Vesting Date," a "Vesting Date"). Notwithstanding anything to the contrary, in the event of a termination of your employment by the Company without cause (as defined below), all Subsequent Restricted Stock (that is, the number of shares equating to $2,000,000 as determined above) shall, upon such termination, be considered granted and vested in full, without regard to the vesting schedule based
Subsequent Grant. Subject to the approval of the Board, effective upon the IPO, you will be granted an option (the “Subsequent Option”) to purchase up to 330,000 shares of the Company’s common stock, par value $0.001 per share (the “Shares”) at an exercise price per share equal to the price of the Company’s common stock sold in the IPO, under the Plan. The Option will be subject to the terms and conditions of the Plan, as set forth in the Plan and the applicable Stock Option Grant Notice and Stock Option Agreement. Subject to the terms of forfeiture, termination and acceleration provided for in the Plan, the Subsequent Option shall vest as follows: (i) 1/3 of the Shares shall vest on the first anniversary of the date hereof and (ii) the remaining 2/3 of the shares subject to each Option shall vest and become exercisable in 8 successive equal quarterly installments.