Modified vesting schedule Sample Clauses
A modified vesting schedule clause defines an alternative timeline or set of conditions under which ownership rights to certain assets, such as stock options or equity, are granted to an individual, typically an employee or founder. Instead of following a standard vesting period, this clause may accelerate, delay, or otherwise alter the vesting milestones based on specific events like company acquisition, termination, or performance targets. Its core practical function is to provide flexibility in aligning incentives and protecting the interests of both the company and the individual, addressing unique circumstances that may arise during the business relationship.
Modified vesting schedule. For the normal vesting schedule, the Employer may elect a modified vesting schedule under which the vesting percentage for each Year of Service is not less than the percentage that would be required for each Year of Service under the 7-year graded vesting schedule, unless 100% vesting occurs after no more than 5 Years of Service. For the Top-Heavy Plan vesting schedule, the Employer may elect a modified vesting schedule under which the vesting percentage for each Year of Service is not less than the percentage that would be required for each Year of Service under the 6-year graded vesting schedule, unless 100% vesting occurs after no more than 3 Years of Service.
Modified vesting schedule. Under the modified vesting schedule, the Employer may designate the vesting percentage that applies for each Year of Service.
Modified vesting schedule. Under the modified vesting schedule, the Employer may designate the vesting percentage that applies for each Year of Service. As a Governmental Plan, the Plan is not subject to the requirements of Code §411 and may modify the vesting schedule, provided the Plan satisfies the requirements of Code §§401(a)(4) and (7) as in effect before the enactment of ERISA. For this purpose, the modified vesting schedule must be at least as favorable as one of the following safe harbor vesting schedules: