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Vesting clause: Copy, customize, and use instantly

Introduction

A vesting clause specifies when and how a party's rights, such as stock options, benefits, or ownership, fully accrue and become exercisable under an agreement. This clause typically outlines the period over which the rights vest, any conditions that must be met, and the consequences if the party fails to meet the requirements. It ensures that the party's interest is earned over time and is not immediately available.

Below are templates for vesting clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

Time-based vesting

This clause outlines a time-based vesting schedule.

The rights granted under this Agreement will vest in the recipient in equal installments over a period of [X] years, beginning on [start date]. Each installment will vest annually on the anniversary of the start date, with full vesting occurring on the [X] year anniversary.

Performance-based vesting

This clause defines vesting based on performance milestones.

The rights granted under this Agreement will vest based on the achievement of specific performance milestones outlined in Exhibit A. Upon completion of each milestone, a portion of the granted rights will vest, with full vesting contingent upon achieving all milestones by [date].

Immediate vesting

This clause specifies immediate vesting.

The rights granted under this Agreement shall immediately vest in full upon execution of this Agreement. No further conditions or time periods are required for vesting, and the recipient shall have full ownership of the granted rights.

Cliff vesting

This clause defines a cliff vesting schedule.

The rights granted under this Agreement will vest in full on the [X] anniversary of the start date, provided the recipient remains in compliance with the terms of this Agreement. No rights will vest before the cliff date, and vesting will occur all at once on the specified date.

Graded vesting

This clause specifies a graded vesting schedule.

The rights granted under this Agreement will vest in [X] equal annual installments over a period of [X] years, beginning on [start date]. Each year, [X]% of the total granted rights will vest, with full vesting occurring at the end of the vesting period.

Vesting on termination of employment

This clause defines vesting conditions in case of termination.

In the event of the recipient’s termination of employment, all unvested rights will immediately become void, unless the termination is due to [specific conditions such as death, disability, or retirement], in which case, any unvested rights will accelerate and vest in full.

Vesting for continued service

This clause defines vesting based on continued service.

The rights granted under this Agreement will vest upon the recipient’s continued service with the company for a period of [X] years, starting from the date of this Agreement. Vesting will occur on each anniversary of the recipient's service date, subject to continued service without interruption.

Vesting upon acquisition

This clause specifies vesting in case of an acquisition.

In the event of a change in control or acquisition of the company, all unvested rights granted under this Agreement shall immediately vest in full, regardless of the recipient’s continued service with the company.

Vesting with conditions

This clause defines vesting based on specific conditions.

The rights granted under this Agreement will vest in full upon the achievement of the following conditions: [list of conditions such as reaching revenue targets, product milestones, or other specific performance metrics]. Vesting will occur within [X] days after the conditions are met.

Hybrid vesting

This clause defines a hybrid vesting schedule combining time and performance conditions.

The rights granted under this Agreement will vest in equal parts: [X]% based on the recipient’s continued service with the company for [X] years and [X]% based on the achievement of specific performance milestones as outlined in Exhibit A. Full vesting will occur once both conditions are met.

Vesting based on continuous employment

This clause defines vesting based on continued employment.

The rights granted under this Agreement will vest in equal installments over a period of [X] years, provided the recipient remains employed with the company for the duration of the vesting period. Each installment will vest annually on the anniversary of the grant date, with full vesting upon completion of the employment period.

Vesting with accelerated terms

This clause defines accelerated vesting upon a certain event.

If the recipient’s employment is terminated due to [reason, e.g., death, disability, or a change in control], all unvested rights will immediately accelerate and vest in full upon such event, regardless of the vesting schedule set forth in this Agreement.

Vesting upon board approval

This clause specifies vesting after board approval.

The rights granted under this Agreement will vest on the approval of the Board of Directors, with vesting occurring on the [X] anniversary of the start date. The vesting schedule will be subject to the Board’s approval, and no rights will vest until such approval is granted.

Vesting based on revenue targets

This clause ties vesting to financial performance.

The rights granted under this Agreement will vest upon achieving the following revenue targets: [define targets]. The rights will vest once the company meets the agreed revenue goals, with vesting taking place on the [X] day following the achievement of each milestone.

Vesting for a specified period with a rolling vesting schedule

This clause defines a rolling vesting schedule.

The rights granted under this Agreement will vest in equal installments over a rolling period of [X] years. Each installment will vest on an annual basis, and the recipient must remain employed with the company throughout the vesting period.

Partial vesting for early termination

This clause defines partial vesting for early termination scenarios.

In the event of early termination of the recipient’s employment or contract, the recipient will receive a pro-rata portion of the vested rights, based on the number of months served during the vesting period. The unvested rights will be forfeited.

Vesting upon successful completion of project milestones

This clause specifies vesting based on project completion.

The rights granted under this Agreement will vest upon the successful completion of specific project milestones as defined in Exhibit A. Each milestone, upon being successfully completed, will trigger a portion of the rights to vest, with full vesting upon the completion of all milestones.

Conditional vesting upon review

This clause defines vesting based on periodic reviews.

The rights granted under this Agreement will vest upon satisfactory performance reviews conducted annually. If the recipient meets or exceeds performance expectations, a portion of the rights will vest at the end of each review period, with full vesting occurring after [X] years of continuous employment.

Vesting for consultants based on contract renewal

This clause addresses vesting for consultants.

The rights granted to the consultant under this Agreement will vest upon the renewal of the consulting contract, with each renewal granting a portion of the rights to vest. The consultant must meet the terms of the contract for the rights to continue vesting.

Vesting for stock options based on company valuation

This clause specifies vesting based on company valuation.

The stock options granted under this Agreement will vest when the company achieves a valuation of [X] dollars. Once the valuation milestone is met, a portion of the options will vest, with the remainder vesting over a period of [X] years.

Vesting for benefits based on employee’s tenure

This clause specifies vesting based on employee tenure.

The employee benefits granted under this Agreement will vest after the employee has completed [X] years of continuous service with the company. Vesting will occur annually, with full vesting after the completion of the required years of service.

Vesting based on shareholder approval

This clause requires shareholder approval for vesting.

The rights granted under this Agreement will vest only upon the approval of the company’s shareholders. If the shareholders approve the rights at the annual general meeting, the vesting will take effect immediately following the approval, with [X]% of the rights vesting.

Vesting upon meeting individual performance objectives

This clause defines vesting for individual performance.

The rights granted under this Agreement will vest based on the achievement of individual performance objectives, as outlined in Exhibit B. The recipient must meet or exceed the agreed objectives to trigger vesting, with the final portion vesting upon successful completion of all goals.

Vesting with an accelerated schedule after certain years of service

This clause defines accelerated vesting after service milestones.

The rights granted under this Agreement will vest according to a standard schedule over [X] years, but if the recipient remains with the company for more than [Y] years, the vesting schedule will accelerate, with the final portion of the rights vesting immediately after the [Y]th year.

Vesting for rights tied to future investments

This clause addresses vesting related to future funding.

The rights granted under this Agreement will vest upon the company receiving future investments in the amount of [X] dollars. Once the investment milestone is achieved, the rights will vest, and the recipient will have the ability to exercise them as outlined in the Agreement.

Vesting based on employee's retirement

This clause specifies vesting for retirement scenarios.

If the employee retires after [X] years of service, all unvested rights under this Agreement will immediately vest in full. The employee must provide [X] days’ notice prior to retirement for the vesting conditions to be met.

Vesting tied to specific job titles or roles

This clause defines vesting for specific roles.

The rights granted under this Agreement will vest only if the recipient holds the specified job title or role within the company for the duration of the vesting period. If the recipient changes roles or titles, vesting will be affected accordingly.

Vesting based on fulfillment of specific conditions in the Agreement

This clause defines vesting tied to conditions.

The rights granted under this Agreement will vest only upon the fulfillment of specific conditions outlined in the Agreement, such as [list conditions]. If all conditions are met, the recipient will receive the vested rights on the [X] day following the fulfillment of the conditions.

Vesting based on achieving sales targets

This clause specifies vesting based on sales performance.

The rights granted under this Agreement will vest upon achieving the agreed sales targets, as detailed in Exhibit A. For each milestone met, a portion of the rights will vest, with full vesting occurring once all targets are achieved.

Vesting for equity based on project success

This clause defines vesting based on project success.

The equity rights granted under this Agreement will vest upon the successful completion of the project outlined in Exhibit B. If the project is completed on time and within the agreed budget, the recipient will receive full vesting of the granted equity.

Vesting for stock options based on employment duration

This clause defines vesting for stock options.

The stock options granted under this Agreement will vest in [X]% increments over [X] years, with each increment vesting on the anniversary of the grant date. The recipient must remain employed by the company for the entire vesting period for the options to become exercisable.

Vesting based on board approval and meeting criteria

This clause specifies vesting tied to board approval.

The rights granted under this Agreement will vest upon approval from the Board of Directors and upon meeting the specific criteria outlined in Exhibit A. The criteria must be met within [X] days of the board’s approval for vesting to occur.

Vesting for stock options upon hitting revenue milestones

This clause defines vesting for stock options tied to revenue.

The stock options granted under this Agreement will vest upon the company hitting specified revenue milestones as detailed in Exhibit C. Each milestone met will trigger vesting of a portion of the granted options, with full vesting occurring when the final milestone is achieved.

Vesting upon meeting team goals

This clause specifies vesting based on team performance.

The rights granted under this Agreement will vest upon the achievement of the team goals outlined in Exhibit D. If the entire team meets the agreed-upon targets, the recipient will be eligible for full vesting.

Accelerated vesting upon termination for cause

This clause specifies accelerated vesting in the event of termination.

In the event the recipient is terminated without cause, all unvested rights will accelerate and vest in full. If the termination is for cause, any unvested rights will be forfeited.

Vesting for employee’s contribution to intellectual property

This clause defines vesting based on contributions to IP.

The rights granted under this Agreement will vest upon the recipient’s contribution to the development of intellectual property, as determined by the company’s intellectual property policy. The recipient must make a substantial contribution for the rights to vest.

Vesting for meeting operational efficiency benchmarks

This clause specifies vesting based on efficiency.

The rights granted under this Agreement will vest upon achieving specific operational efficiency benchmarks set forth in Exhibit E. Each benchmark met will trigger vesting, with full vesting upon achieving all benchmarks.

Vesting based on continued active service

This clause defines vesting for ongoing employment.

The rights granted under this Agreement will vest annually, with each installment vesting upon the recipient’s continued active service with the company for one year. If the recipient’s service is terminated before the vesting date, any unvested rights will be forfeited.

Vesting tied to business profitability

This clause specifies vesting based on profitability.

The rights granted under this Agreement will vest once the company achieves profitability as defined in Exhibit F. Each year the company is profitable, a portion of the rights will vest, with full vesting occurring when the company hits the specified profit target.

Vesting for achieving product development milestones

This clause defines vesting based on product milestones.

The rights granted under this Agreement will vest upon achieving specific product development milestones as outlined in Exhibit G. For each milestone met, a portion of the rights will vest, with full vesting upon the completion of the final milestone.

Vesting based on maintaining specific key performance indicators (KPIs)

This clause specifies vesting tied to KPIs.

The rights granted under this Agreement will vest based on the achievement of key performance indicators (KPIs) as outlined in Exhibit H. The recipient must meet or exceed the KPIs in order for the rights to vest fully.

Vesting for executive retention

This clause specifies vesting based on retention.

The rights granted under this Agreement will vest only if the recipient remains in the executive position for a period of [X] years. If the recipient resigns or is terminated for any reason before the vesting period ends, any unvested rights will be forfeited.

Vesting for completion of client projects

This clause defines vesting for client-related projects.

The rights granted under this Agreement will vest upon the completion of specific client projects, as listed in Exhibit I. Each completed project triggers vesting of a portion of the rights, with full vesting upon completion of all listed projects.

Vesting for loyalty based on employee tenure

This clause specifies vesting for loyalty.

The rights granted under this Agreement will vest based on the recipient’s tenure with the company, with [X]% of the granted rights vesting after each year of service. Full vesting will occur after [X] years of continuous employment.

Vesting for meeting fundraising targets

This clause defines vesting based on fundraising.

The rights granted under this Agreement will vest upon the company reaching specified fundraising targets as outlined in Exhibit J. The recipient will receive full vesting if the fundraising goal is met by the end of the funding round.

Vesting for timely project completion

This clause specifies vesting for project delivery.

The rights granted under this Agreement will vest upon the timely completion of the project milestones set forth in Exhibit K. For each completed milestone that meets the deadlines, a portion of the rights will vest, with full vesting upon timely completion of the final milestone.

Vesting for completing required certifications

This clause defines vesting tied to certifications.

The rights granted under this Agreement will vest once the recipient completes the necessary certifications outlined in Exhibit L. The recipient must provide proof of certification within the specified period for the rights to vest.

Vesting based on performance reviews by senior management

This clause specifies vesting based on senior management reviews.

The rights granted under this Agreement will vest based on the results of the recipient’s annual performance review conducted by senior management. If the recipient meets or exceeds performance expectations, a portion of the rights will vest. Full vesting will occur once the performance goals are fully achieved.

Vesting for achieving strategic business goals

This clause defines vesting based on strategic goals.

The rights granted under this Agreement will vest upon achieving specific strategic business goals outlined in Exhibit M. Each goal met will trigger vesting of a portion of the rights, with full vesting once all goals have been successfully achieved.

Vesting based on personal performance objectives

This clause ties vesting to personal objectives.

The rights granted under this Agreement will vest upon achieving the personal performance objectives set forth by the company and detailed in Exhibit N. The recipient must meet or exceed these objectives for the rights to vest in full.

Vesting upon approval of project funding

This clause specifies vesting upon funding approval.

The rights granted under this Agreement will vest upon the approval of project funding by the Board of Directors or investors, as outlined in Exhibit O. Once the funding is secured, a portion of the rights will vest, with full vesting upon project initiation.

Vesting for completion of customer acquisition goals

This clause specifies vesting based on customer acquisition.

The rights granted under this Agreement will vest based on achieving specified customer acquisition goals as defined in Exhibit P. For each target reached, a portion of the rights will vest, with full vesting upon achieving the final acquisition target.

Vesting based on team leadership success

This clause specifies vesting based on leadership.

The rights granted under this Agreement will vest upon the recipient’s successful leadership of a designated team, as outlined in Exhibit Q. If the team meets the performance targets and deadlines, the rights will vest in equal portions over the specified time period.

Vesting based on corporate profitability metrics

This clause ties vesting to corporate profitability.

The rights granted under this Agreement will vest once the company achieves specific profitability metrics, as outlined in Exhibit R. Each financial milestone achieved will trigger vesting of a portion of the rights, with full vesting occurring once the final profitability goal is reached.

Vesting based on maintaining client retention targets

This clause defines vesting based on client retention.

The rights granted under this Agreement will vest based on meeting or exceeding the client retention targets set forth in Exhibit S. Each quarter’s client retention rate will determine the portion of the rights that vest, with full vesting occurring once the annual target is achieved.

Vesting for closing key business deals

This clause specifies vesting upon deal closure.

The rights granted under this Agreement will vest upon the closure of key business deals, as listed in Exhibit T. For each deal closed, a portion of the rights will vest, with full vesting upon the final deal closing.

Vesting for successful product launches

This clause defines vesting based on product success.

The rights granted under this Agreement will vest upon the successful launch of the product(s) outlined in Exhibit U. Each successful product launch will trigger vesting of a portion of the granted rights, with full vesting upon the completion of all launches.

Vesting for exceeding operational efficiency targets

This clause specifies vesting for operational improvements.

The rights granted under this Agreement will vest upon exceeding the operational efficiency targets specified in Exhibit V. The recipient must demonstrate measurable improvements in efficiency for the rights to vest fully.

Vesting for reaching sustainable growth goals

This clause ties vesting to sustainability goals.

The rights granted under this Agreement will vest based on reaching specific sustainable growth targets, as defined in Exhibit W. Each sustainable growth milestone met will trigger vesting of a portion of the rights, with full vesting once all targets are reached.

This clause defines vesting based on market share.

The rights granted under this Agreement will vest upon the achievement of specified market share targets outlined in Exhibit X. The recipient will receive vesting as market share increases, with full vesting upon achieving the final target.

Vesting for maintaining key partnerships

This clause ties vesting to partnership management.

The rights granted under this Agreement will vest upon the successful maintenance of key partnerships, as listed in Exhibit Y. For each partnership maintained over the agreed period, a portion of the rights will vest, with full vesting upon the successful continuation of all key partnerships.

Vesting based on long-term employee retention

This clause defines vesting for long-term employment.

The rights granted under this Agreement will vest in stages over a period of [X] years, provided the recipient remains employed with the company throughout the entire vesting period. Each year, a portion of the rights will vest, with full vesting at the end of the [X]-year period.

Vesting for meeting customer satisfaction goals

This clause specifies vesting based on customer satisfaction.

The rights granted under this Agreement will vest based on achieving customer satisfaction goals as outlined in Exhibit Z. Each customer satisfaction metric met will trigger vesting of a portion of the granted rights, with full vesting occurring upon the successful achievement of all metrics.

Vesting for hitting production targets

This clause specifies vesting for production achievements.

The rights granted under this Agreement will vest upon achieving production targets as defined in Exhibit AA. For each target met, a portion of the rights will vest, with full vesting occurring once all production targets are reached.

Vesting for acquisition of intellectual property assets

This clause defines vesting for IP acquisition.

The rights granted under this Agreement will vest upon the successful acquisition of intellectual property assets as outlined in Exhibit BB. Each asset acquired will trigger vesting of a portion of the rights, with full vesting occurring once the final asset is acquired.

Vesting based on adherence to company’s code of conduct

This clause ties vesting to behavior standards.

The rights granted under this Agreement will vest based on adherence to the company’s code of conduct, as defined in Exhibit CC. The recipient must remain in compliance with all ethical standards for the rights to vest in full.

Vesting based on team performance metrics

This clause specifies vesting tied to team performance.

The rights granted under this Agreement will vest based on the team’s performance metrics as outlined in Exhibit DD. Once the team meets or exceeds the specified goals, a portion of the rights will vest, with full vesting occurring upon the successful completion of all performance metrics.

Vesting for achieving diversity and inclusion goals

This clause defines vesting for diversity objectives.

The rights granted under this Agreement will vest upon the achievement of diversity and inclusion goals as outlined in Exhibit EE. Each milestone achieved in the company’s diversity initiatives will trigger vesting, with full vesting once all goals are met.

Vesting for continued operational management success

This clause ties vesting to operational management.

The rights granted under this Agreement will vest based on continued success in operational management, as specified in Exhibit FF. The recipient must demonstrate consistent operational performance for the rights to vest in full over the specified time period.

Vesting for obtaining new customers

This clause defines vesting for new customer acquisition.

The rights granted under this Agreement will vest based on the successful acquisition of new customers as outlined in Exhibit GG. For each new customer secured, a portion of the granted rights will vest, with full vesting upon meeting the annual customer acquisition target.

Vesting based on achieving marketing goals

This clause specifies vesting for marketing objectives.

The rights granted under this Agreement will vest upon the successful achievement of marketing goals outlined in Exhibit HH. For each milestone reached, a portion of the rights will vest, with full vesting occurring once all marketing goals have been met.

Vesting upon successful completion of training programs

This clause defines vesting based on completing training.

The rights granted under this Agreement will vest upon the successful completion of the training programs as outlined in Exhibit II. The recipient must complete the specified programs to trigger vesting, with full vesting upon completing all required training.

Vesting for securing key strategic partnerships

This clause specifies vesting based on partnership success.

The rights granted under this Agreement will vest upon securing key strategic partnerships as detailed in Exhibit JJ. For each partnership successfully secured, a portion of the rights will vest, with full vesting occurring once all specified partnerships are established.

Vesting based on a combination of time and performance

This clause combines time-based and performance-based vesting.

The rights granted under this Agreement will vest in equal installments over a period of [X] years, with each installment subject to the recipient’s performance in meeting the objectives outlined in Exhibit KK. The rights will vest upon the completion of each year’s performance evaluation, with full vesting upon the recipient’s successful performance and continued service.

Vesting for achieving personal development milestones

This clause ties vesting to personal development.

The rights granted under this Agreement will vest based on the recipient’s achievement of personal development milestones outlined in Exhibit LL. Upon meeting each milestone, a portion of the rights will vest, with full vesting occurring upon completing all required milestones.

Vesting for revenue growth targets

This clause defines vesting based on revenue targets.

The rights granted under this Agreement will vest upon the achievement of specific revenue growth targets outlined in Exhibit MM. Each revenue target met will trigger vesting, with full vesting occurring once all targets are successfully achieved.

Vesting for reaching product development stages

This clause defines vesting based on product milestones.

The rights granted under this Agreement will vest based on the achievement of specific product development stages as outlined in Exhibit NN. Upon the completion of each stage, a portion of the granted rights will vest, with full vesting upon completing all stages of development.

Vesting based on meeting customer satisfaction targets

This clause specifies vesting tied to customer satisfaction.

The rights granted under this Agreement will vest upon meeting customer satisfaction targets as specified in Exhibit OO. Each metric reached will trigger vesting, with full vesting occurring once the customer satisfaction goal is fully achieved.

Vesting for securing funding

This clause defines vesting upon securing funding.

The rights granted under this Agreement will vest upon the successful securing of funding as detailed in Exhibit PP. Each funding round completed successfully will trigger vesting, with full vesting occurring upon the closing of the final funding round.

Vesting for managing a successful market expansion

This clause ties vesting to market expansion efforts.

The rights granted under this Agreement will vest based on the successful management and execution of market expansion plans as outlined in Exhibit QQ. Vesting will occur in stages as the market expansion milestones are achieved, with full vesting upon completion of the final expansion phase.

Vesting based on maintaining company culture standards

This clause defines vesting tied to company culture.

The rights granted under this Agreement will vest upon the recipient’s active contribution to maintaining the company culture as outlined in Exhibit RR. Each year the recipient meets or exceeds the cultural standards, a portion of the rights will vest, with full vesting after [X] years of service.

Vesting for achieving operational cost reduction

This clause specifies vesting based on cost-saving targets.

The rights granted under this Agreement will vest upon the successful achievement of operational cost reduction targets set forth in Exhibit SS. Each milestone in cost reduction will trigger vesting, with full vesting once the agreed reduction targets are met.

Vesting based on completion of market research initiatives

This clause defines vesting tied to market research.

The rights granted under this Agreement will vest upon the successful completion of market research initiatives as outlined in Exhibit TT. Vesting will occur once the research targets are achieved and the deliverables are met.

Vesting upon exceeding sales revenue benchmarks

This clause specifies vesting based on sales targets.

The rights granted under this Agreement will vest upon the company’s achievement of sales revenue benchmarks, as outlined in Exhibit UU. Each benchmark met will trigger vesting of a portion of the granted rights, with full vesting occurring once the final sales target is achieved.

Vesting based on successful employee engagement initiatives

This clause specifies vesting for employee engagement success.

The rights granted under this Agreement will vest upon the successful implementation of employee engagement initiatives outlined in Exhibit VV. Each engagement milestone will trigger vesting, with full vesting once all engagement objectives are met.

Vesting for achieving environmental sustainability targets

This clause defines vesting based on sustainability goals.

The rights granted under this Agreement will vest upon the achievement of environmental sustainability targets set forth in Exhibit WW. Each sustainability goal met will trigger vesting, with full vesting upon the completion of all goals.

Vesting based on reaching customer retention goals

This clause specifies vesting based on customer retention.

The rights granted under this Agreement will vest upon the achievement of customer retention goals outlined in Exhibit XX. Each goal met will trigger vesting of a portion of the rights, with full vesting occurring once the final customer retention target is achieved.

Vesting for achieving operational efficiency improvements