Based Vested Requirement Sample Clauses
The Based Vested Requirement clause establishes the conditions under which certain rights, benefits, or interests become irrevocably granted to a party, typically after meeting specific criteria or timeframes. In practice, this clause might apply to employee stock options, where shares only become fully owned by the employee after a set period of service or upon achieving certain milestones. Its core function is to ensure that parties fulfill agreed-upon obligations before gaining permanent entitlement, thereby incentivizing performance and protecting the interests of the granting party.
Based Vested Requirement. Subject to the next sentence, the Service-Based Vested requirements will be satisfied upon the end of a Performance Period only if Participant has continuously remained in Service from the Date of Award through the end of such Performance Period. If there is a Qualifying Termination before the end of a Performance Period then the following number of Stock Units (rounded to the nearest whole number) shall become Service-Based Vested at the end of such Performance Period (and those Stock Units that do not become Service-Based Vested shall be forfeited without consideration): (i) the quotient of the number of days elapsed in the calendar year of the Qualifying Termination (determined as of the Termination Date) divided by the total number of days in that calendar year (provided that if the Performance Period ends before the end of that calendar year then only the total number of days in that calendar year that occurred before the end of the Performance Period shall be used in the denominator), multiplied by (ii) the total number of Stock Units subject to the Performance Period for the calendar year of the Termination Date. No unvested Stock Units can become Service-Based Vested after Participant’s Service has terminated for any reason and any Stock Units that are not Service-Based Vested shall be forfeited without consideration on the Participant’s Termination Date. No unvested Stock Units for a future calendar year can become Service-Based Vested after a Change in Control and any Stock Units that are not Service-Based Vested shall be forfeited without consideration upon such Change in Control. Performance-Based Vested Requirement: The Performance-Based Vested requirements are described in this section. There are two separate Performance Goals for each Performance Period. Fifty percent of the Stock Units for each Performance Period shall be subject to the Absolute Value Goal for such Performance Period. The other fifty percent of the Stock Units for each Performance Period shall be subject to the Relative Value Goal for such Performance Period. As soon as practicable but in any event within thirty (30) days after the end of each Performance Period, the Committee will determine the degree of satisfaction for that Performance Period’s respective Performance Goals and will determine what number of the Stock Units subject to that Performance Period’s Performance Goals will no longer be eligible to become Performance-Based Vested and which are therefore forfeited ...