Incentive Interests Clause Samples
The Incentive Interests clause defines the terms under which certain parties, such as employees or managers, are granted a financial stake or equity interest in a company as a form of motivation or reward. Typically, this clause outlines the types of incentive interests available (such as stock options, restricted stock, or profit interests), the conditions for vesting, and any performance targets or time-based requirements that must be met. Its core practical function is to align the interests of key individuals with the long-term success of the company, thereby encouraging performance and retention.
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Incentive Interests. In addition to the foregoing, upon termination of the Executive’s employment, the Executive shall continue to have such rights, if any, that may continue to exist under the Management Incentive Share Agreement upon the terms and conditions set forth therein.
Incentive Interests. (a) The following Incentive Units are hereby created and are hereby granted to the Persons and in the respective amounts set forth on Exhibit A, subject to the adjustments provided for in this Section 3.4:
(i) 100 Tier I A Units, all of which have been granted as of the date of this Agreement;
(ii) 960,000 Tier I Units, of which a certain number of such Tier I Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier I Subsequent Units”);
(iii) 960,000 Tier II Units, of which a certain number of such Tier II Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier II Subsequent Units”);
(iv) 960,000 Tier III Units, of which a certain number of Tier III Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier III Subsequent Units”); and
(v) 960,000 Tier IV Units, of which a certain number of Tier IV Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier IV Subsequent Units”).
Incentive Interests. (a) The following Incentive Units had been created and authorized as of the Effective Date:
(i) 500,000 “Tier I Incentive Units,” of which a certain number of such Tier I Incentive Units may be granted to Employees after the Effective Date pursuant to this Section 3.4 (the “Tier I Subsequent Incentive Units”);
(ii) 500,000 “Tier II Incentive Units,” of which a certain number of such Tier II Incentive Units may be granted to Employees after the Effective Date pursuant to this Section 3.4 (the “Tier II Subsequent Incentive Units”);
(iii) 500,000 “Tier III Incentive Units,” of which a certain number of Tier III Incentive Units may be granted to Employees after the Effective Date pursuant to this Section 3.4 (the “Tier III Subsequent Incentive Units”); and
(iv) 500,000 “Tier IV Incentive Units,” of which a certain number of Tier IV Incentive Units may be granted to Employees after the Effective Date pursuant to this Section 3.4 (the “Tier IV Subsequent Incentive Units”). Incentive Units have been granted to the Members in the respective amounts set forth in the Company’s Books and Records, subject to the adjustments provided for in this Section 3.4.
Incentive Interests. (a) The following Incentive Units are hereby created and are hereby granted to the Persons and in the respective amounts set forth on Exhibit A, subject to the adjustments provided for in this Section 3.4:
(i) 1,000,000 “Tier I Units,” of which a certain number of such Tier I Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier I Subsequent Units”); and
(ii) 1,000,000 “Tier II Units,” of which a certain number of such Tier II Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier II Subsequent Units”). To the extent not so granted, the remaining Incentive Units are available for future grants by the Board to Employees in accordance with the terms of this Agreement. The Company and each Member intend to treat any interest attributable to a holder of Incentive Units as a separate “profits interest” within the meaning of Rev. Proc. 93-27, 1993-2 C.B. 343. In accordance with Rev. Proc. 2001-43, 2001-2 C.B. 191, the Company shall treat a holder of such Incentive Units as the owner of such profits interest from the date it is granted, and shall file its IRS Form 1065, and issue an appropriate Schedule K-1 to such holder of Incentive Units, allocating to such
Incentive Interests. Pursuant to a separate Management Incentive Share Agreement and subject to the terms and conditions set forth therein, the Executive shall be eligible to receive additional compensation through the granting of incentive phantom interests equivalent to five percent (5%) of the amount of the distributions that would otherwise be payable to the holders of Class A Units pursuant to the LLC Agreement.
Incentive Interests. (a) The following Incentive Units are hereby created and are hereby granted to the Persons and in the respective amounts set forth on Exhibit A, subject to the adjustments provided for in this Section 3.4:
(i) 1,000,000 “Tier I Units,” of which a certain number of such Tier I Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier I Subsequent Units”); and
(ii) 1,000,000 “Tier II Units,” of which a certain number of such Tier II Units may be granted to Employees after the date of this Agreement pursuant to this Section 3.4 (the “Tier II Subsequent Units”).
Incentive Interests. Each Company Incentive Interest that is issued and outstanding immediately prior to the Effective Time shall automatically be cancelled and converted into the right to receive, subject to the terms of this Agreement, the portion of the Merger Consideration (comprised of (i) the Incentive Interests Holders Closing Consideration, (ii) the Indemnification Escrow Property, (iii) the Merger Consideration Adjustment Escrow Property, (iv) the Holders Representative Reserve Property, (v) the Earn-Out Payment, and (vi) the Additional Consideration, to be paid to Incentive Interests Holders under this Agreement) allocated to the Incentive Interest Holder’s Incentive Interest in accordance with Section 1.6 below, which amounts shall be payable as provided herein and subject to any adjustments pursuant to this Agreement, including those set forth in this Article I.
Incentive Interests. The Board may grant Incentive Interests in Holdings or any subsidiary of Holdings or similar incentive compensation to officers and employees of FA.
Incentive Interests