Emergence Equity Grant Clause Samples
The Emergence Equity Grant clause establishes the terms under which equity, such as shares or stock options, is granted to an individual, typically in connection with their involvement in a startup or early-stage company. This clause outlines the amount and type of equity awarded, the vesting schedule, and any conditions or milestones that must be met for the recipient to earn the equity. By clearly defining these terms, the clause ensures both parties understand the expectations and rewards, helping to incentivize performance and align interests while minimizing disputes over ownership.
Emergence Equity Grant. The Company shall grant Executive a combination of restricted stock units (“Restricted Stock Units”) that are to be settled in common stock of the Company (“Common Stock”) and options to purchase Common Stock (“Stock Options”) with an aggregate economic value of $800,000 (such grant of Restricted Stock Units and Stock Options are together referred to as the “Executive LTIP”). The $800,000 aggregate economic value of the Restricted Stock Units and Stock Options to be awarded under the Executive LTIP shall be determined in the good faith judgment of the Compensation Committee of the Board taking into account the requirements set forth in (A) and (B) below.
(A) Ten days following the Company’s emergence from bankruptcy protection (the “Emergence Date”) under Chapter 11 of Title 11 of the United States Code, Executive shall be awarded Restricted Stock Units and Stock Options with an aggregate value of $400,000, with one-third of such value to consist of Restricted Stock Units. The exact number of Restricted Stock Units to be awarded ten days following the Emergence Date shall be determined solely based on the average of the daily closing price of a share of Common Stock on The New York Stock Exchange or, if the Common Stock is not traded on The New York Stock Exchange, the average of the midpoint of the daily bid and ask price of a share of Common Stock on the OTC Bulletin Board, from the Emergence Date to the date of grant of such Restricted Stock Units, without any discount based on vesting requirements or lack of transferability. The Stock Options granted ten days following the Emergence Date shall have an exercise price per share equal to the closing price of a share of Common Stock on The New York Stock Exchange or, if the Common Stock is not traded on The New York Stock Exchange, the midpoint of the bid and ask price of a share of Common Stock on the OTC Bulletin Board, on the date of grant of such Stock Options. Such Stock Options shall have a ten-year term. The exact number of Stock Options granted ten days following the Emergence Date shall be determined based upon a Black-Scholes or other valuation model, using reasonable assumptions as determined in good faith by the Compensation Committee of the Board.
(B) Forty five days after the Emergence Date, Executive shall be awarded Restricted Stock Units and Stock Options with an aggregate value of $400,000, with one-third of such value to consist of Restricted Stock Units. The exact number of Restricted S...
Emergence Equity Grant. The Company hereby agrees to grant the Executive one hundred and fifty three thousandths of one percent (0.153%) on a fully diluted basis of the new common stock of the Company issued on the Effective Date in accordance with and pursuant to the Plan of Reorganization in (i) a stock option award with respect to approximately 0.116% of such shares of new common stock of the Company and (ii) a restricted stock unit award with respect to approximately 0.037% of such shares of new common stock of the Company (the “Emergence Equity Grants”), in accordance with and pursuant to the Company’s Plan of Reorganization and the terms and conditions of the Company’s Equity Incentive Plan, any applicable incentive plan documents, and/or any award statements or agreements (each an “Award Agreement”) and this Agreement (including without limitation with such Emergence Equity Grants to be made on, and effective as of, the dates set forth in the Plan of Reorganization). The Award Agreements for the Emergence Equity Grants shall be in substantially the form set forth in Exhibit A hereto.
Emergence Equity Grant. Upon the effective date of a plan of reorganization under chapter 11 of the United States Bankruptcy Code as approved by the Bankruptcy Court of (the "Plan of Reorganization) (the "Emergence"), the Executive shall be entitled to receive a grant of stock options equal to 1.375% of the total amount of New Friedman's Common Stock (as defined the C▇▇▇▇▇▇'▇ ▇lan of Reorganization) (the "Emergence Grant"). Subject to accelerated vesting as described below, such Emergence Grant shall vest and become exercisable as follows
(i) fifty percent (50%) of the stock options on the date of Emergence (the "Emergence Date"), (ii) twenty-five percent (25%) on the first anniversary of the Emergence Date and (iii) twenty-five percent (25%) on the second anniversary of the Emergence Date. Notwithstanding the foregoing, upon the issuance of the Emergence Grant, the Initial Grant shall immediately expire.
Emergence Equity Grant. Nothing in this Letter shall impact on your eligibility to receive an emergence equity grant in connection with your service as Chairman of the Board in accordance with the director compensation program approved by the Board on December 10, 2020.
Emergence Equity Grant. Subject to Bankruptcy Court approval of the KECP, upon the effective date of a plan of reorganization under chapter 11 of the United States Bankruptcy Code as approved by the Bankruptcy Court (the "Plan of Reorganization) (the "Emergence"), the Executive shall be entitled to receive a grant of stock options equal to 1.75% of the total amount of New ▇▇▇▇▇▇▇▇'▇ Common Stock (as defined the Company's Plan of Reorganization) (the "Emergence Grant"). Subject to accelerated vesting as described below, such Emergence Grant shall vest and become exercisable as follows
(i) fifty percent (50%) of the stock options on the date of Emergence (the "Emergence Date"), (ii) twenty-five percent (25%) on the first anniversary of the Emergence Date and (iii) twenty-five percent (25%) on the second anniversary of the Emergence Date.