Grant Configurations-Vesting Template

As an administrator, you have the capability to configure various vesting conditions or criteria, broadly classified into two categories: time-based vesting and performance-based vesting. Based on the selected framework, employees’ options will vest accordingly. Once a vesting schedule has been created, you may review its structure to ensure alignment with organizational requirements.

Steps to Create Vesting Schedule:

1. Click Settings > Configurations in the menu on the left.
2. Under Equity Award - Grant configurations, click Vesting Templates.
     

Vesting Template:

1. When you select a vesting template, you'll be taken to a screen that shows a summary of all the templates that have been created so far.
2. To add a new template, click on ‘Create Vesting Template’.
   
    

Once you click on the ‘Create Vesting Template’ button, you will be redirected to the screen shown below.   

At this stage, you will be presented with three options, essentially defining how you wish to initiate the vesting period for employees. –

• Immediate Vesting: Options vest on the grant date itself, providing employees with instant entitlement.  
• Cliff Vesting: Vesting commences only after a predetermined period, which you may define based on organizational requirements. 
• Recurring Vesting: Options vest in fixed, regular intervals over a specified duration.

When you select Cliff option, you will be redirected to the page shown below.  

1. In the ‘Units’ section, you need to define the number of units to be vested.
2. Vesting Starts - Specify the vesting timeline in months, starting from the date you want the first tranche to begin.
3. Performance Condition – Here you have option weather you want the vesting to happen as Time based, or Performance based.
4. Once all the details have been entered, click on ‘Add’ to proceed.  

1. For example, let us assume that 25 shares are set to vest initially under the Cliff method, while the remaining options are to vest at fixed intervals. In this case, you would select the ‘Recurring’ option on the screen shown above and proceed further. 
2. Once you click Next you will be redirected to the screen attached below.

1. Units - Now you must enter the remaining unit which remained to be vested.
2. Vesting Starts - Once the remaining units are entered, please specify when you would like the vesting for the second tranche to begin in months.
3. Where vesting occurs every - After that, for each vesting schedule, you will need to select the fixed time interval at which the options should vest for your employees.
4. Over a period of - Finally, in the section titled “Over a period of time,” you must mention the total number of years or months over which the vesting will take place.
   

Once all the details have been entered, you will be directed to the page shown below.

On the page above, you will see an overview of all the details you have entered so far.

• When you proceed further, you will be directed to the page shown above, where you will need to choose the specific time of the month when you want the vesting to occur.

• Moving further to the next page attached below.

1. Precision : This means that if you choose 1, the option number will display a single decimal place  (2.4). If you choose 2, it will display two decimal places (2.45). If you choose 0, the option number will not display any decimals.
2. Rounding: Choose a rounding method for residual decimals.
3. Distribute Across Tranches: Spreads adjustments evenly across all tranches.

When you proceed further, you will be directed to the page shown below

• By enabling "Lapse units on a specific date," you can set the final date by which employees must exercise their vested options.
• Enable Lock in Period - The second option is to set a start date for exercising, which means that even if the options are vested, employees cannot exercise them for a specified period. For example, if you choose 1 month from the vesting date, the options will vest, but employees will only be able to exercise them after one month has passed from the vesting date.

1. At the end, you will see a complete overview of your final vesting schedule, with the option to go back and edit any details if needed.
2. You can change the vesting dates and number of units from the top-right corner, and these updates will automatically be applied to your created vesting schedule.
3. Once everything is finalized, you can proceed to save and name your vesting schedule, which can then be used whenever needed.