What is double trigger accelerated vesting?

If someone has double-trigger vesting acceleration (commonly referred to as double-trigger acceleration) on their stock or stock options, that typically means the vesting will accelerate if (1) the company is acquired and (2) that person is terminated in connection with or following the acquisition1.

What does a double trigger mean?

Double Trigger means a Change in Control (“first trigger”) and a Qualifying Termination of the executive’s employment by the company without Cause or by the executive with Good Reason (“second trigger”).

Will vesting accelerate if there is a change in control?

Upon the close of a transaction that constitutes a Change of Control (as that term is defined below), Company shall immediately accelerate vesting of 50% of any portion of the Option that remains unvested.

How does accelerated vesting work?

Accelerated vesting allows an employee to speed up the schedule for gaining access to restricted company stock or stock options issued as an incentive. The rate typically is faster than the initial or standard vesting schedule. Therefore, the employee receives the monetary benefit from the stock or options much sooner.

Is double trigger acceleration common?

Double-trigger accelerations are more popular in the startup world today. The typical triggers of a double trigger acceleration are change in company ownership and the termination of an employee without cause.

What is Double trigger RSU?

Many companies issue double-trigger RSUs. The “Double-trigger” indicates that two events are required before the employee owns the shares. Generally, the first trigger is time-based vesting and the second is a change in control or a liquidation event like an IPO.

How common is single trigger acceleration?

The most common acceleration agreement these days combines 25% – 50% single trigger acceleration with 50% – 100% double trigger acceleration. The median of this range is probably 50% single trigger combined with 100% double trigger.

What is accelerated vesting Algorand?

According to EIP-11252019AF, within the Node Runner Vesting plan for 2020, there is the opportunity for the % of Algos vested in 2020 to accelerate from the base level of 3%, if the Algo token rises in value, based on certain criteria.

How does double trigger acceleration work?

Double-trigger acceleration, as the name implies, requires two events to trigger acceleration – most typically the sale of the company and the involuntary termination of the employee, usually within 9-18 months after closing, and in some cases including a short pre-closing window (3 months or shorter) to counter any …

Do Double Trigger RSUs expire?

Double-trigger RSU grants at private companies have an expiration date. Typically they expire seven years from grant. The goal is for a liquidity event (tender offer, acquisition, or IPO/direct listing/SPAC merger) to occur before your double-trigger RSU grant expires.

What is a double trigger acceleration clause?

Double-Trigger Acceleration: Under a double-trigger acceleration clause, two stated events must take place in order for acceleration to occur. In most cases, the two events are the sale or ownership transfer of the company, and the unjustified termination (termination without cause) of the vesting individual.

What is an acceleration clause in a lease agreement?

In real estate, an acceleration clause can sometimes be found in lease agreements. In most cases, when a lender triggers the acceleration clause due to a borrower defaulting on payment, the lender’s primary objective is to foreclose the borrower and take over the property given as security interest.

What triggers a mortgage acceleration clause?

Events that might trigger an acceleration clause in such a case include: indications of financial insolvency, such as falling behind on property tax payments; a lapse in insurance coverage on a property; the borrower fails to make on-time payments on another mortgage assessed on the same subject property.

What is single-trigger acceleration?

Single-Trigger Acceleration: Single-trigger acceleration means that the acceleration clause is triggered by the occurrence of a single event, commonly the sale or ownership transfer of a company. For example: