The remaining 135,500 of the inducement awards are subject to performance
vesting requirements and will vest after approximately two years if specified SMI business unit performance targets are achieved.
Following the merger, the profit-sharing plan covers the same employees and contains the same
vesting schedule as the MPPP.
Vesting schedule: 100% two years after joining plan or after five years of service.
Note 3: The
vesting option selected must be at least as favorable as one of the following schedules:
34,588 of the restricted stock units will vest over three and a half years with approximately 38%
vesting on the first anniversary of the
vesting commencement date and the remaining 62%
vesting quarterly in equal installments until fully vested, subject to the employees' continued service to Imperva through each applicable
vesting date.
93-27 did not address the impact of the
vesting of a partnership interest.
In measuring compensation cost, the statement addresses the nontransferability of employee options after
vesting by using the expected life of the option.
In addition to minimum employer contribution requirements, employers must adopt a safe-harbor
vesting schedule that automatically vests employees 100% in the employer contributions made under the safe-harbor provisions, regardless of years of service.
Outside the investment community, where it has been used for some time, the model isn't well understood, and crucial considerations like the impact of
vesting on option values remain unresolved.
These stock options vest over four years, with 25% of the shares
vesting on the one-year anniversary of each employee's hire date and an additional 6.25% of the shares
vesting at the end of each subsequent quarter, subject to the new employee's continued service relationship with the company through the applicable
vesting dates.
Vesting can also be used to link the ability to exercise options with the achievement of performance objectives, while avoiding the adverse accounting expense associated with performance-contingent stock option plans.
Assuming they will be willing at some time to provide a funding vehicle on a tax-preferred basis, I think they will demand minimum standards for
vesting, participation, and funding at the same time.