Common use of Modifications to Vesting Schedule Clause in Contracts

Modifications to Vesting Schedule. In the event that the Employee takes a personal leave of absence (“PLOA”), the shares subject to this option that are scheduled to become exercisable shall be modified as follows: (a) if the duration of the Employee’s PLOA is six (6) months or less, the vesting schedule set forth on the UBS One Source website (click on the specific grant under the tab labeled “Grants/Awards/Units”) shall not be affected by the Employee’s PLOA. (b) if the duration of the Employee’s PLOA is greater than six (6) months but not more than twelve (12) months, the scheduled exercisability of any shares subject to this option that are not then exercisable shall be deferred for a period of time equal to the duration of the Employee’s PLOA less six (6) months unless otherwise recommended by the Company’s VP of HR. (c) if the duration of the Employee’s PLOA is greater than twelve (12) months, any shares subject to this option that are not then exercisable immediately will terminate unless otherwise recommended by the Company’s VP of HR and approved by the Company’s Chief Executive Officer (the “CEO”). (d) Example 1. Employee is scheduled to vest in shares on January 1, 2007. On May 1, 2006, Employee begins a 6-month PLOA. Employee’s shares still will be scheduled to vest on January 1, 2007. (e) Example 2. Employee is scheduled to vest in shares on January 1, 2007. On May 1, 2006, Employee begins a 9-month PLOA. Employee’s shares subject to this option that are scheduled to become exercisable after November 2, 2006 will be modified (this is the date on which the Employee’s PLOA exceeds 6 months). Employee’s shares now will be scheduled to vest on April 1, 2007 (3 months after the originally scheduled date). (f) Example 3. Employee is scheduled to vest in shares on January 1, 2007. On May 1, 2006, Employee begins a 13-month PLOA. Employee’s shares will terminate on May 2, 2007 unless otherwise recommended by the Company’s VP of HR and approved by the CEO. In general, a “personal leave of absence” does not include any legally required leave of absence. The duration of the Employee’s PLOA will be determined over a rolling twelve (12) month measurement period. Shares subject to this option that are scheduled to vest during the first six (6) months of the Employee’s PLOA will continue to vest as scheduled. However, shares subject to this option that are scheduled to vest after the first six (6) months of the Employee’s PLOA will be deferred or terminated depending on the length of the Employee’s PLOA. The Employee’s right to exercise all shares subject to this option that remain unexercisable shall be modified as soon as the duration of the Employee’s PLOA exceeds six (6) months.