Exercise and Vesting Schedule Clause Samples
The Exercise and Vesting Schedule clause defines when and how an individual can acquire ownership rights to granted options or equity, and the timeline over which these rights become exercisable. Typically, this clause outlines a vesting period—such as four years with a one-year cliff—during which the recipient gradually earns the right to exercise their options, and specifies the process for exercising vested options, including any deadlines or procedures. Its core practical function is to incentivize long-term commitment and performance by aligning the recipient’s benefits with continued service or achievement of milestones, while protecting the company from immediate or unearned equity transfers.
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Exercise and Vesting Schedule. (a) This Option shall become exercisable in three cumulative annual installments, as follows:
(i) one-third of the Option Shares shall become exercisable on the first anniversary of the Grant Date;
(ii) an additional one-third of the Option Shares shall become exercisable on the second anniversary of the Grant Date; and
(iii) the remaining one-third of the Option Shares shall become exercisable on the third anniversary of the Grant Date; provided, however, that the Optionee must be in continuous Employment from the Grant Date through the date of exercisability of each installment in order for the Option to become exercisable with respect to additional shares of Common Stock on such date. If the Employment of the Optionee is terminated for any reason other than death or Retirement, any Option Shares that are not exercisable as of the date of such termination of Employment shall be forfeited to the Corporation.
(b) This Option shall become fully exercisable, irrespective of the limitations set forth in subparagraph (a) above, upon:
(i) termination of the Optionee’s Employment due to death;
(ii) termination of the Optionee’s Employment due to Retirement; or
(ii) a Change in Control of the Corporation, provided that as of such Change in Control the Optionee had been in continuous Employment since the Grant Date.
Exercise and Vesting Schedule. This Option may be exercised by the Optionee named in the Notice of Stock Option Grant (the “Optionee”), in whole or in part, at such times as established under the Company’s policies regarding exercise of options or as otherwise permitted by the Company. The Shares subject to this Option shall vest according to the following schedule: [25% of the Shares subject to the Option shall vest twelve months after the Vesting Commencement Date, and 1/48th of the Shares subject to the Option shall vest each month thereafter, subject to your continuing to be a Service Provider on such dates.]
Exercise and Vesting Schedule. The Shares subject to this Option shall vest and become exercisable according to the following schedule:
Exercise and Vesting Schedule. (a) This Option shall become exercisable in three cumulative annual installments, as follows:
(i) one-third of the Option Shares shall become exercisable on the first anniversary of the Grant Date;
(ii) an additional one-third of the Option Shares shall become exercisable on the second anniversary of the Grant Date; and
(iii) the remaining one-third of the Option Shares shall become exercisable on the third anniversary of the Grant Date; provided, however, that the Optionee must be in continuous Employment from the Grant Date through the date of exercisability of each installment in order for the Option to become exercisable with respect to additional shares of Common Stock on such date. If the Employment of the Optionee is terminated for any reason, except as provided for in this Section 2 of this Award Agreement, any Option Shares that are not exercisable as of the date of such termination of Employment shall be forfeited to the Corporation.
Exercise and Vesting Schedule. This Option shall be exercisable in whole or in part, and shall vest according to the following vesting schedule: [Vesting Schedule]
Exercise and Vesting Schedule. The Shares subject to this Option shall vest and become exercisable according to the following schedule: This Option may be exercised, in whole or in part, in accordance with the following schedule: Twenty-five percent (25%) of the Shares subject to this Option shall vest twelve (12) months after the Vesting Commencement Date, and one-forty-eight (1/48th) of the Shares subject to this Option shall vest each month thereafter, subject to the Optionee continuing to be an Employee or Consultant on such dates. For purposes of this Agreement, Shares subject to this Option shall vest and become exercisable based on Optionee's Continuous Status as an Employee or Consultant.
Exercise and Vesting Schedule. This Option shall vest and become exerciseable on the dates and as described in this paragraph, subject to the Optionee continuing to be either an Employee or a Consultant to the Company on such vesting dates. On [1 year anniversary of grant date], Optionee shall be vested in and have the right to exercise the Option with respect to [ ] Shares. Thereafter, Optionee shall become vested in and have the right to exercise this Option with respect to 1/48th of the number of Shares subject to the Option on the day of each month corresponding to the Date of Grant, so that the Option shall be fully vested and exercisable on the fourth anniversary of the Date of Grant. However, if Optionee is terminated by the Company other than for Cause prior to the one-year anniversary of the Date of Grant, Optionee shall become vested in and have the right to exercise this Option with respect to 1/48th of the number of Shares subject to the Option for each full month of employment following the Date of Grant, based on the day of the month corresponding to the Date of Grant, through the date of such termination.
Exercise and Vesting Schedule. Subject to accelerated vesting as set forth below, the Option may be exercised, in whole or in part, in accordance with the vesting schedule set forth in the Optionee’s Notice of Grant (the “Vesting Schedule”). Shares scheduled to vest on a certain date or upon the occurrence of a certain condition will not vest in the Optioneed in accordance with any provisions of this Agreement if the Optionee ceases to be a Service Provider prior to the date such vesting is scheduled to occur. For purposes of this Stock Option Agreement, a “Service Provider” means an Employee, Non-Employee Director or Consultant who has outstanding Award. In the event of a Change of Control, the Vesting Schedule shall be replaced in its entirety by the following vesting schedule, to be applied both retroactively and prospectively: 1/36th of the Shares subject to the Option shall vest each month after the vesting commencement date, as set forth in the Notice of Grant, on the same day of the month as the vesting commencement date, so that 100% of the Shares subject to the Option shall be vested three (3) years from the vesting commencement date, subject to you remaining a Service Provider as of such vesting dates.
Exercise and Vesting Schedule. The Option granted hereunder may be exercised, in whole or in part, based on the vesting schedule as set forth below. [INSERT VESTING SCHEDULE] OPTIONEE: A10 NETWORKS, INC. a California corporation /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇ «First» «Last» ▇▇▇▇ ▇▇▇▇▇▇▇▇, CFO The type of option which you have been granted is designated on the cover sheet. If designated as an Incentive Stock Option, the Option is intended to be an incentive stock option under section 422 of the United States Internal Revenue Code (the "Code") and will be interpreted accordingly. Capitalized terms used but not otherwise defined in this Stock Option Agreement shall have the meanings given to them in the Plan.
Exercise and Vesting Schedule. So long as Optionee is a Service Provider, this Option shall become exercisable in accordance with the following vesting schedule: Subject to the limitation on the exercisability of the Option set out in Part II, Section 3(i) of this Option Agreement, fifty percent (50%) of the Shares subject to this Option will vest and become exercisable on the one year anniversary of the Vesting Commencement Date, twenty five percent (25%) of the Shares subject to this Option will vest and become exercisable on the date eighteen (18) months following the Vesting Commencement Date and the remaining twenty-five percent (25%) of the Shares subject to this Option will vest and become exercisable in a series of six (6) successive equal monthly installments measured from the date eighteen (18) months following the Vesting Commencement Date, subject to Optionee continuing to be a Service Provider through each such date. In no event will the Option vest and become exercisable for any additional Shares subject to the Option after Optionee’s cessation as a Service Provider. Should Optionee request a reduction to his or her work commitment to less than thirty (30) hours per week, then the Administrator will have the right, exercisable in connection with the approval of that reduction, to extend the period over which the Option will thereafter vest and become exercisable for the Option Shares during the remainder of the term of the Option. The decision whether or not to approve Optionee’s request for such reduced work commitment will be at the sole discretion of the Administrator. In no event will any extension of the Exercise and Vesting Schedule for the Shares subject to the Option result in the extension of the Term/Expiration Date of the Option. Notwithstanding the foregoing Vesting Schedule, in the event the Company, Cisco or any of their respective Subsidiaries terminates Optionee’s employment with any such entities without “Cause” (as defined below), Optionee’s employment is terminated due to Optionee’s death, or Optionee resigns from any such employment for “Good Reason” (as defined below), 100% of the Shares subject to this Option will immediately vest and become exercisable.