Common use of Vesting of Benefits Clause in Contracts

Vesting of Benefits. Except to the extent specified in the Plan, Incentive Units granted herein are subject to forfeiture in the event your employment terminates prior to the time a Disposition Event occurs. If you experience a termination of employment prior to the time a Disposition Event occurs, you will immediately forfeit any Units and the corresponding right to your pro-rata share of any Incentive Bonus Pool. Notwithstanding the foregoing, however, in the event that you are terminated by the Company (other than for Cause (as defined in the Plan)) or terminate for Good Reason (as defined in the Plan) within six months prior to a Disposition Event, but subsequent to such time as negotiations or discussions which ultimately lead to a Disposition Event have commenced, then you will be treated as a Participant entitled to the benefits set forth in the Plan, as if you continued to be an Employee on the date of the Disposition Event. If you are employed by the Company or an Affiliate at the time a Disposition Event Occurs, you will be entitled to receive a benefit equal to the proportionate share of the Incentive Bonus Pool determined by the number of Incentive Units subject to this Award as a percentage of all outstanding Incentive Units subject to all Awards.

Appears in 6 contracts

Samples: Interface Security Systems Holdings Inc, Interface Security Systems Holdings Inc, Interface Security Systems, L.L.C.

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