I have some RSU’s that are vesting soon. The company, however, is not yet public.
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I was curious and decided to go over the grant docs and something has me stumped. I found the following that almost makes it sound like if I were to leave the company after the initial vesting period, if I still have the stocks after a year, they would become worthless.
Can anyone clarify this for me?
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“Termination of Service Relationship. If the Grantee’s Service Relationship with the Company or a Subsidiary terminates for any reason (including death or disability) prior to the satisfaction of the Time Condition set forth in Section 2(a) above, any Restricted Stock Units that have not satisfied the Time Condition as of such date shall automatically and without notice terminate and be forfeited, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such forfeited Restricted Stock Units. Any Restricted Stock Units that have satisfied the Time Condition as of such date shall remain subject to the Performance Vesting set forth in Section 2(b) above, but shall expire and be of no further force or effect on the first to occur of (a) one (1) year after the date on which the Grantee’s Service Relationship with the Company terminates, or (b) the Expiration Date; provided, however, that if the Grantee’s Service Relationship is terminated by the Company or a Subsidiary for Cause, all Restricted Stock Units (including those that have satisfied the Time Condition) shall automatically and without notice terminate and be forfeited upon such termination date.
