Double trigger vesting definition
100 double trigger vesting acceleration Scenario 1 (Alice's service terminates prior to vesting cliff date) If Founder Alices service with Acme Co. terminates prior to January 1, 2015, Acme Co. has the option to pay 40. 00 to Founder Alice to repurchase all 4, 000, 000 unvested shares.If you have a Double Trigger, then neither your company nor the acquiring company can screw you out of your remaining, unvested options EVEN IF they no longer have a roleneed for you after the double trigger vesting definition
Single Trigger Acceleration Acceleration of vesting based on a single, specified, event, such as an acquisition or change of control. To be contrasted with double trigger acceleration, which is acceleration based on two eventssuch as a change of control and being terminated within a certain period of time after a change of control.
Double trigger vesting definition free
The following is a representative provision from a stock restriction agreement that recognizes the need for double trigger language that contemplates the situation in which there is no surviving or replacement stock in an acquisition.
Double Trigger Vesting. In the event of a Qualifying Termination that is a Change in Control Termination, each of the Participant's then outstanding and unvested compensatory equity awards will fully vest, and, as applicable, become exercisable, effective as of
A single trigger acceleration occurs when one event triggers the acceleration of vesting, allowing an equity owner to receive the full or partial value of his or her stock. Typically, theyre related to the sale, merger or restructuring of a company.
How can the answer be improved?
Single vs. Double Triggers The theory behind the continued use of singletrigger equity vesting is that it better assures the executives fair treatment in a changeincontrol (CIC) transaction because the immediate vesting allows the executive to participate in any stock price premium achieved in
On the other hand, vesting acceleration clauses can lead to a lower acquisition price to offset buyout costs. The result is diluted stock value for shareholders and investors. A double acceleration clause requires two events to trigger vesting acceleration.
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