Vested Restricted Units Clause Samples
The "Vested Restricted Units" clause defines the conditions under which restricted stock units (RSUs) granted to an individual become fully owned and non-forfeitable. Typically, this clause outlines a vesting schedule, such as time-based or performance-based milestones, after which the recipient gains full rights to the units. For example, an employee may receive RSUs that vest over four years, with a portion becoming vested each year. The core function of this clause is to incentivize continued service or performance by tying ownership of equity to specific achievements or durations, while also protecting the company from granting full ownership immediately.
Vested Restricted Units. The Recipient shall earn a number of Vested Restricted Units determined pursuant to Exhibit 1. Each Vested Restricted Unit represents the Company’s unsecured obligation to issue one share of the Company’s common stock (“Common Stock”) and related Dividend Equivalents (as defined below) in accordance with this Agreement.
Vested Restricted Units. Until such time as the vested Restricted Units are redeemed, if any cash dividends are declared with respect to the Common Shares, a cash payment will be paid to the Participant equal to the value of the cash dividends that would have been distributed if the vested Restricted Units credited to the Participant’s Restricted Unit Account at the time of the record date of the dividend were Common Shares. The cash payment for such dividend equivalents will be paid to the Participant at the same time that the cash dividends are paid to RAIT’s shareholders holding Common Shares.