Vesting and Performance Measure Sample Clauses

The Vesting and Performance Measure clause defines the conditions under which certain rights or benefits, such as equity awards or bonuses, become fully owned or exercisable by an individual, typically an employee. This clause outlines the schedule or milestones—such as time-based service periods or achievement of specific performance targets—that must be met for vesting to occur. For example, an employee might receive stock options that vest over four years or only if certain sales goals are achieved. The core function of this clause is to incentivize continued employment and performance, while protecting the company from granting full benefits before agreed-upon conditions are satisfied.